Document:

Exhibit 10.4

 

LIGHTSTONE REAL ESTATE INCOME TRUST
INC.

 

 

 

2014 STOCK INCENTIVE PLAN

(effective as of [   ], 2014)

 

 

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	Pages
	 	 
	Article
    I PURPOSE	1
	 	 
	Article
    II DEFINITIONS	1
	 	 
	Article
    III ADMINISTRATION	8
	 	 
	Article
    IV SHARE LIMITATION	11
	 	 
	Article
    V ELIGIBILITY AND GENERAL REQUIREMENTS FOR AWARDS	14
	 	 
	Article
    VI STOCK OPTIONS	14
	 	 
	Article
    VII STOCK APPRECIATION RIGHTS	17
	 	 
	Article
    VIII RESTRICTED STOCK	20
	 	 
	Article
    IX PERFORMANCE SHARES	22
	 	 
	Article
    X OTHER STOCK-BASED AWARDS	24
	 	 
	Article
    XI TERMINATION	25
	 	 
	Article
    XII CHANGE IN CONTROL PROVISIONS	27
	 	 
	Article
    XIII TERMINATION OR AMENDMENT OF PLAN	28
	 	 
	Article
    XIV UNFUNDED PLAN	29
	 	 
	Article
    XV GENERAL PROVISIONS	29
	 	 
	Article
    XVI EFFECTIVE DATE OF PLAN	33
	 	 
	Article
    XVII TERM OF PLAN	33
	 	 
	Article
    XVIII NAME OF PLAN	33
	 	 
	Exhibit
    A PERFORMANCE GOALS	A-1

 

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LIGHTSTONE REAL ESTATE INCOME TRUST
INC.

 

 

 

2014 STOCK INCENTIVE PLAN

 

(effective as of [   ],
2014)

 

 

 

Article
I

PURPOSE

 

The purpose of this
2014 Stock Incentive Plan is to enhance the profitability and value of the Company for the benefit of its stockholders by enabling
the Company to offer Participants stock-based incentives in the Company to attract, retain and reward such individuals and strengthen
the mutuality of interests between such individuals and the Company’s stockholders.

 

Article
II

DEFINITIONS

 

For purposes of the
Plan, the following terms shall have the following meanings:

 

2.1           “Acquisition
Event” means a merger or consolidation in which the Company is not the surviving entity, any transaction that results
in the acquisition of all or substantially all of the Company’s outstanding Common Stock by a single person or entity or
by a group of persons and/or entities acting in concert, or the sale or transfer of all or substantially all of the Company’s
assets. The occurrence of an Acquisition Event shall be determined by the Committee in its sole discretion.

 

2.2           “Affiliate”
means each of the following: (a) Lightstone Real Estate Income LLC; (b) Lightstone Real Estate Income LP; (c) Lightstone SLP Income
LLC; (d) any Subsidiary; (e) any Parent; (f) any corporation, trade or business (including, without limitation, a partnership or
limited liability company) that is directly or indirectly controlled 50% or more (whether by ownership of stock, assets or an equivalent
ownership interest or voting interest) by the Company; (g) any corporation, trade or business (including, without limitation, a
partnership or limited liability company) that directly or indirectly controls 50% or more (whether by ownership of stock, assets
or an equivalent ownership interest or voting interest) of the Company; and (h) any other entity in which the Company or any of
its Affiliates has a material equity interest and that is designated as an “Affiliate” by resolution of the Committee;
provided, however, that the Common Stock subject to any Award constitutes “service recipient stock” for
purposes of Section 409A of the Code or otherwise does not subject the Award to Section 409A of the Code.

 

    	 

    	 

    

 

2.3           “Award”
means any award under the Plan of any Stock Option, Stock Appreciation Right, Restricted Stock, Performance Share or Other Stock-Based
Award. All Awards shall be granted by, confirmed by, and subject to the terms of, a written or electronic agreement executed by
the Company and the Participant. Any reference herein to an agreement in writing shall be deemed to include an electronic writing
to the extent permitted by applicable law.

 

2.4           “Board”
means the Board of Directors of the Company.

 

2.5           “Cause”
means with respect to a Participant’s Termination of Employment or Termination of Consultancy, the following: (a) in the
case where there is no employment agreement, consulting agreement, change in control agreement or similar agreement in effect between
the Company or an Affiliate and the Participant at the time of the grant of the Award (or where there is such an agreement but
it does not define “cause” (or words of like import)), termination due to: (i) a Participant’s conviction of,
or plea of guilty or nolo contendere to, a felony; (ii) perpetration by a Participant of an illegal act, dishonesty or fraud that
could cause significant economic injury to the Company; (iii) a Participant’s insubordination, refusal to perform his or
her duties or responsibilities for any reason other than illness or incapacity or materially unsatisfactory performance of his
or her duties for the Company; (iv) continuing willful and deliberate failure by the Participant to perform the Participant’s
duties in any material respect; provided, that the Participant is given notice and an opportunity to effectuate a cure as
determined by the Committee; or (v) a Participant’s willful misconduct with regard to the Company that could have a material
adverse effect on the Company; or (b) in the case where there is an employment agreement, consulting agreement, change in control
agreement or similar agreement in effect between the Company or an Affiliate and the Participant at the time of the grant of the
Award that defines “cause” (or words of like import), “cause” as defined under such agreement; provided,
however, that with regard to any agreement under which the definition of “cause” only applies on occurrence
of a change in control, such definition of “cause” shall not apply until a change in control actually takes place and
then only with regard to a termination thereafter. With respect to a Participant’s Termination of Directorship, “cause”
means an act or failure to act that constitutes cause for removal of a director under applicable Maryland law.

 

2.6           “Change
in Control” has the meaning set forth in Section 12.2.

 

2.7           “Change
in Control Price” has the meaning set forth in Section 12.1.

 

2.8           “Code”
means the Internal Revenue Code of 1986, as amended. Any reference to any section of the Code also shall be a reference to any
successor provision and any Treasury Regulation promulgated thereunder.

 

2.9           “Committee”
means the Board, or a committee or subcommittee of the Board appointed from time to time by the Board to administer the Plan. Any
such committee or subcommittee may consist of two or more non-employee directors, each of whom is intended to be (i) to the extent
required by Rule 16b-3 promulgated under Section 16(b) of the Exchange Act, a “non-employee director” as defined in
Rule 16b-3, (ii) to the extent required by Section 162(m) of the Code, an “outside director” as defined in Section
162(m) of the Code, and (iii) an “independent director” as defined under any applicable securities exchange rules;
provided that if for any reason such committee or subcommittee does not meet the requirements of Rule 16b-3 or Section 162(m) of
the Code, such noncompliance shall not affect the validity of Awards, grants, interpretations or other actions of such committee
or subcommittee.

 

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2.10         “Common
Stock” means the common stock, $0.01 par value per share, of the Company.

 

2.11         “Company”
means Lightstone Real Estate Income Trust Inc., a Maryland corporation, and its successors by operation of law.

 

2.12         “Consultant”
means any natural person who, directly or indirectly, provides bona fide consulting or advisory services to the Company or any
of its Affiliates pursuant to a written agreement, which are not in connection with the offer and sale of securities in a capital-raising
transaction, and do not, directly or indirectly, promote or maintain a market for the Company’s or its Affiliates’
securities.

 

2.13         “Detrimental
Activity” means:

 

(a)          disclosing,
divulging, furnishing or making available to anyone at any time, except as necessary in the furtherance of Participant’s
responsibilities to the Company or any of its Affiliates, either during or subsequent to Participant’s service relationship
with the Company or any of its Affiliates, any knowledge or information with respect to confidential or proprietary information,
methods, processes, plans or materials of the Company or any of its Affiliates, or with respect to any other confidential or proprietary
aspects of the business of the Company or any of its Affiliate, acquired by the Participant at any time prior to the Participant’s
Termination;

 

(b)          any
activity while employed or performing services that results, or if known could reasonably be expected to result, in the Participant’s
Termination that is classified by the Company as a termination for Cause;

 

(c)          (i)
directly or indirectly soliciting, enticing or inducing any employee of the Company or of any of its Affiliates to be employed
by a person or entity that is, directly or indirectly, in competition with the business or activities of the Company or any of
its Affiliates; (ii) directly or indirectly approaching any such employee for these purposes; (iii) authorizing or knowingly approving
the taking of any such action by a third party on behalf of any such person or entity, or assisting any such person or entity in
taking such action; or (iv) directly or indirectly soliciting, raiding, enticing or inducing any person or entity (other than the
U.S. Government or its agencies) that is, or at any time from and after the date of grant of the Award was, a customer of the Company
or any of its Affiliates to become a customer of the Participant or a third party for the same or similar products or services
that it purchased from the Company or any of its Affiliates, or approaching any customer of the Company or any of its Affiliates
for such purpose, or authorizing or knowingly approving the taking of any action by a third party for such purpose;

 

(d)          the
Participant’s Disparagement, or inducement of others to do so, of the Company or any of its Affiliates or their past and
present officers, directors, employees or products;

 

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(e)          the
Participant’s owning, managing, controlling, participating in, consulting with, rendering services for, or in any manner
engaging in, any business that, directly or indirectly, is competitive with the business conducted by the Company or any of its
Affiliates within any metropolitan area in which the Company or any of its Affiliates engages or has definitive plans to engage
in such business, or the rendering of services to such business if such business is otherwise prejudicial to or in conflict with
the interests of the Company or any of its Affiliates; or

 

(f)          a
material breach of any agreement between the Participant and the Company or any of its Affiliates (including, without limitation,
any employment agreement or noncompetition or nonsolicitation or confidentiality agreement).

 

Unless otherwise determined by the Committee at grant, Detrimental
Activity shall not be deemed to occur after the end of the one-year period following the Participant’s Termination.

 

For purposes of clauses (a), (c), (e) and (f) above, the Chief
Executive Officer of the Company has the authority to provide the Participant with written authorization to engage in the activities
contemplated thereby and no other person shall have authority to provide the Participant with such authorization. If it is determined
by a court of competent jurisdiction that any provision in the Plan in respect of Detrimental Activities is excessive in duration
or scope or otherwise is unenforceable, then such provision may be modified or supplemented by the court to render it enforceable
to the maximum extent permitted by law.

 

2.14         “Disability”
means with respect to a Participant’s Termination, a permanent and total disability as defined in Section 22(e)(3) of the
Code. A Disability shall only be deemed to occur at the time of the determination by the Committee of the Disability. Notwithstanding
the foregoing, for Awards that are subject to Section 409A of the Code, Disability shall mean that a Participant is disabled under
Section 409A(a)(2)(C)(i) or (ii) of the Code.

 

2.15         “Disparagement”
means making comments or statements to the press, the Company’s or its Affiliates’ employees, consultants or any individual
or entity with whom the Company or its Affiliates has a business relationship that could reasonably be expected to adversely affect
in any manner: (a) the conduct of the business of the Company or its Affiliates (including, without limitation, any products or
business plans or prospects); or (b) the business reputation of the Company or its Affiliates, or any of their products, or their
past or present officers, directors or employees.

 

2.16         “Effective
Date” means the effective date of the Plan as defined in Article XVI.

 

2.17         “Eligible
Employee” means an employee of the Company or an Affiliate. The term “Eligible Employee” also includes
an officer of the Company, regardless of whether such officer is an employee of the Company.

 

2.18         “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and all rules and regulations promulgated thereunder.
Any references to any section of the Exchange Act shall also be a reference to any successor provision.

 

2.19         “Exercisable
Awards” has the meaning set forth in Section 4.2(d).

 

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2.20         “Fair
Market Value” means, on any date (i) if the Common Stock is listed on a national securities exchange or a national
market system, the closing sales price on such exchange or over such system on such date or, in the absence of reported sales on
such date, the closing sales price on the immediately preceding date on which sales were reported, or (ii) if the Common Stock
is not listed on a national securities exchange, the mean between the bid and offered prices as quoted by the applicable interdealer
quotation system; provided, that if the Common Stock is not quoted on such interdealer quotation system or it is determined
that the fair market value is not properly reflected by such quotations, Fair Market Value will be determined by such other method
as the Committee determines in good faith to be reasonable and in compliance with Code Section 409A.

 

2.21         “Family
Member” means “family member” as defined in Rule 701 under the Securities Act or, following the filing
of a Form S-8 pursuant to the Securities Act with respect to the Plan, as defined in Section A.1.(5) of the general instructions
of Form S-8, as may be amended from time to time.

 

2.22         “Incentive
Stock Option” means any Stock Option awarded to an Eligible Employee of the Company, its Subsidiaries and its Parent
(if any) under the Plan intended to be and designated as an “Incentive Stock Option” within the meaning of Section
422 of the Code.

 

2.23         “include,”
“includes” and “including” shall be construed as if followed by the phrase
“without limitation.”

 

2.24         “Limited
Stock Appreciation Right” has the meaning set forth in Section 7.5.

 

2.25         “Non-Employee
Director” means a non-employee director of the Company as defined in Rule 16b-3.

 

2.26         “Non-Qualified
Stock Option” means any Stock Option awarded under the Plan that is not an Incentive Stock Option.

 

2.27         “Other
Stock-Based Award” means an Award under Article X of the Plan that is valued in whole or in part by reference
to, or is payable in or otherwise based on, Common Stock, including, without limitation, a restricted stock unit or an Award valued
by reference to an Affiliate.

 

2.28         “Parent”
means any parent corporation of the Company within the meaning of Section 424(e) of the Code.

 

2.29         “Participant”
means an Eligible Employee, Non-Employee Director or Consultant to whom an Award has been granted pursuant to the Plan.

 

2.30         “Performance
Goals” has the meaning set forth on Exhibit A.

 

2.31         “Performance
Period” means the duration of the period during which receipt of an Award is subject to the satisfaction of performance
criteria, such period as determined by the Committee in its sole discretion.

 

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2.32         “Performance
Share” means an Award made pursuant to Article IX of the Plan of the right to receive Common Stock at the
end of a specified Performance Period.

 

2.33         “Person”
means any individual, corporation, partnership, limited liability company, firm, joint venture, association, joint-stock company,
trust, incorporated organization, governmental or regulatory or other entity.

 

2.34         “Plan”
means this Lightstone Real Estate Income Trust Inc. 2014 Stock Incentive Plan, as amended from time to time.

 

2.35         “Other
Extraordinary Event” has the meaning set forth in Section 4.2(b).

 

2.36         “Reference
Stock Option” has the meaning set forth in Section 7.1.

 

2.37         “Registration
Date” means the first date after the Effective Date on which (a) the Company sells its Common Stock in a bona fide
underwriting pursuant to a registration statement under the Securities Act or (b) any class of common equity securities of the
Company is required to be registered under Section 12 of the Exchange Act.

 

2.38         “Restricted
Stock” means a share of Common Stock issued under the Plan that is subject to restrictions under Article VIII.

 

2.39         “Restriction
Period” has the meaning set forth in Section 8.3(a).

 

2.40         “Retirement”
means a voluntary Termination of Employment or Termination of Consultancy at or after age 65 or such earlier date after age 55
as may be approved by the Committee, in its sole discretion, with respect to such Participant at the time of grant, or thereafter;
provided, that the exercise of such discretion does not make the applicable Award subject to Section 409A of the Code, except
that Retirement shall not include any involuntary Termination of Employment or Termination of Consultancy by the Company or an
Affiliate for any reason with or without Cause. With respect to a Participant’s Termination of Directorship, Retirement means
the failure to stand for reelection or the failure to be reelected on or after the date that a Participant has attained age 65
or, with the consent of the Board; provided, that the exercise of such discretion does not make the applicable Award subject
to Section 409A of the Code, before age 65 but after age 55.

 

2.41         “Rule
16b-3” means Rule 16b-3 under Section 16(b) of the Exchange Act as then in effect or any successor provision.

 

2.42         “Section
162(m) of the Code” means the exception for performance-based compensation under Section 162(m) of the Code and any
applicable Treasury regulations thereunder.

 

2.43         “Section
4.2 Event” has the meaning set forth in Section 4.2(b).

 

2.44         “Securities
Act” means the Securities Act of 1933, as amended, and all rules and regulations promulgated thereunder. Any reference
to any section of the Securities Act shall also be a reference to any successor provision.

 

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2.45         “Special
Unvested Options or Rights” has the meaning set forth in Section 11.1(a)(v).

 

2.46         “Stock
Appreciation Right” means the right pursuant to an Award granted under Article VII. A Tandem Stock Appreciation
Right shall mean the right to surrender to the Company all (or a portion) of a Stock Option in exchange for a number of shares
of Common Stock equal to the difference between (a) the Fair Market Value on the date such Stock Option (or such portion thereof)
is surrendered, of the Common Stock covered by such Stock Option (or such portion thereof), and (b) the aggregate exercise price
of such Stock Option (or such portion thereof). A Non-Tandem Stock Appreciation Right shall mean the right to receive a number
of shares of Common Stock equal to the difference between (i) the Fair Market Value of a share of Common Stock on the date such
right is exercised, and (ii) the aggregate exercise price of such right, otherwise than on surrender of a Stock Option.

 

2.47         “Stock
Option” or “Option” means any option to purchase shares of Common Stock granted to Eligible
Employees, Non-Employee Directors or Consultants pursuant to Article VI.

 

2.48         “Subsidiary”
means any subsidiary corporation of the Company within the meaning of Section 424(f) of the Code.

 

2.49         “Tandem
Stock Appreciation Right” has the meaning set forth in Section 7.1.

 

2.50         “Ten
Percent Stockholder” means a person owning stock possessing more than 10% of the total combined voting power of all
classes of stock of the Company, its Subsidiaries or its Parent.

 

2.51         “Termination”
means a Termination of Consultancy, Termination of Directorship or Termination of Employment, as applicable.

 

2.52         “Termination
of Consultancy” means: (a) that the Consultant is no longer acting as a consultant to the Company or an Affiliate;
or (b) when an entity that is retaining a Participant as a Consultant ceases to be an Affiliate unless the Participant otherwise
is, or thereupon becomes, a Consultant to the Company or another Affiliate at the time the entity ceases to be an Affiliate. In
the event that a Consultant becomes an Eligible Employee or a Non-Employee Director upon the termination of his or her consultancy,
unless otherwise determined by the Committee, in its sole discretion, no Termination of Consultancy shall be deemed to occur until
such time as such Consultant is no longer a Consultant, an Eligible Employee or a Non-Employee Director. Notwithstanding the foregoing,
the Committee may, in its sole discretion, otherwise define Termination of Consultancy in the Award agreement or, if no rights
of a Participant are reduced, may otherwise define Termination of Consultancy thereafter.

 

2.53         “Termination
of Directorship” means that the Non-Employee Director has ceased to be a director of the Company; except that if
a Non-Employee Director becomes an Eligible Employee or a Consultant upon the termination of his or her directorship, his or her
ceasing to be a director of the Company shall not be treated as a Termination of Directorship unless and until the Participant
has a Termination of Employment or Termination of Consultancy, as the case may be.

 

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2.54         “Termination
of Employment” means: (a) a termination of employment (for reasons other than a military or personal leave of absence
granted by the Company) of a Participant from the Company and its Affiliates; or (b) when an entity that is employing a Participant
ceases to be an Affiliate, unless the Participant otherwise is, or thereupon becomes, employed by the Company or another Affiliate
at the time the entity ceases to be an Affiliate. In the event that an Eligible Employee becomes a Consultant or a Non-Employee
Director upon the termination of his or her employment, unless otherwise determined by the Committee, in its sole discretion, no
Termination of Employment shall be deemed to occur until such time as such Eligible Employee is no longer an Eligible Employee,
a Consultant or a Non-Employee Director. Notwithstanding the foregoing, the Committee may, in its sole discretion, otherwise define
Termination of Employment in the Award agreement or, if no rights of a Participant are reduced, may otherwise define Termination
of Employment thereafter.

 

2.55         “Transfer”
means: (a) when used as a noun, any direct or indirect transfer, sale, assignment, pledge, hypothecation, encumbrance or other
disposition (including the issuance of equity in a Person), whether for value or no value and whether voluntary or involuntary
(including by operation of law), and (b) when used as a verb, to directly or indirectly transfer, sell, assign, pledge, encumber,
charge, hypothecate or otherwise dispose of (including the issuance of equity in a Person) whether for value or for no value and
whether voluntarily or involuntarily (including by operation of law). ”Transferred” and “Transferrable”
shall have a correlative meaning.

 

2.56         “Transition
Period” means the “reliance period” under Treasury Regulation Section 1.162-27(f)(2), which ends on the
earliest to occur of the following: (a) the date of the first annual meeting of stockholders of the Company at which directors
are to be elected that occurs after December 31, 2014; (b) the date the Plan is materially amended for purposes of Treasury Regulation
Section 1.162-27(h)(1)(iii); or (c) the date all shares of Common Stock available for issuance under the Plan have been allocated.

 

Article
III

ADMINISTRATION

 

3.1           The
Committee.  The Plan shall be administered and interpreted by the Committee.

 

3.2           Grants
of Awards. The Committee shall have full authority to grant, pursuant to the terms of the Plan, to Eligible Employees,
Consultants and Non-Employee Directors: (1) Stock Options; (2) Stock Appreciation Rights; (3) Restricted Stock; (4) Performance
Shares; and (5) Other Stock-Based Awards. In particular, the Committee shall have the authority:

 

(a)          to
select the Eligible Employees, Consultants and Non-Employee Directors to whom Awards may from time to time be granted hereunder;

 

(b)          to
determine whether and to what extent Awards are to be granted hereunder to one or more Eligible Employees, Consultants or Non-Employee
Directors;

 

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(c)          to
determine, in accordance with the terms of the Plan, the number of shares of Common Stock to be covered by each Award granted hereunder;

 

(d)          to
determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder (including, but
not limited to, the exercise or purchase price (if any), any restriction or limitation, any vesting schedule or acceleration thereof,
or any forfeiture restrictions or waiver thereof, regarding any Award and the shares of Common Stock relating thereto, based on
such factors, if any, as the Committee shall determine, in its sole discretion);

 

(e)          to
determine whether, to what extent and under what circumstances grants of Options and other Awards under the Plan are to operate
on a tandem basis and/or in conjunction with or apart from other awards made by the Company outside of the Plan;

 

(f)          to
determine whether and under what circumstances a Stock Option may be settled in Common Stock and/or Restricted Stock under Section
6.3(h);

 

(g)          to
determine whether, to what extent and under what circumstances Common Stock and other amounts payable with respect to an Award
under the Plan shall be deferred either automatically or at the election of the Participant, in any case, in a manner intended
to comply with Section 409A of the Code;

 

(h)          to
determine whether a Stock Option is an Incentive Stock Option or Non-Qualified Stock Option;

 

(i)          to
determine whether to require a Participant, as a condition of the granting of any Award, to not sell or otherwise dispose of shares
acquired pursuant to an Award for a period of time as determined by the Committee, in its sole discretion, following the date of
such Award; and

 

(j)          generally,
to exercise such powers and to perform such acts as the Committee deems necessary or expedient to promote the best interests of
the Company that are not in conflict with the provisions of the Plan.

 

3.3           Guidelines.
Subject to Article XIII, the Committee shall, in its sole discretion, have the authority to adopt, alter and repeal such
administrative rules, guidelines and practices governing the Plan and perform all acts, including the delegation of its responsibilities
(to the extent permitted by applicable law and applicable securities exchange rules), as it shall, from time to time, deem advisable;
to construe and interpret the terms and provisions of the Plan and any Award issued under the Plan (and any agreements relating
thereto); and to otherwise supervise the administration of the Plan. The Committee may, in its sole discretion, correct any defect,
supply any omission or reconcile any inconsistency in the Plan or in any agreement relating thereto in the manner and to the extent
it shall deem necessary to effectuate the purpose and intent of the Plan. The Committee may, in its sole discretion, adopt special
guidelines and provisions for persons who are residing in or employed in, or subject to, the taxes of, any domestic or foreign
jurisdictions to comply with applicable tax and securities laws of such domestic or foreign jurisdictions. To the extent applicable,
the Plan is intended to comply with the applicable requirements of Rule 16b-3 and with respect to Awards intended to be “performance-based,”
the applicable provisions of Section 162(m) of the Code, and the Plan shall be limited, construed and interpreted in a manner so
as to comply therewith.

 

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3.4           Decisions
Final. Any decision, interpretation or other action made or taken in good faith by or at the direction of the Company,
the Board or the Committee (or any of its members) arising out of or in connection with the Plan shall be within the absolute discretion
of all and each of them, as the case may be, and shall be final, binding and conclusive on the Company and all employees and Participants
and their respective heirs, executors, administrators, successors and assigns.

 

3.5           Procedures.
If the Committee is appointed, the Board shall designate one of the members of the Committee as chairman and the Committee shall
hold meetings, subject to the By-Laws of the Company, at such times and places as it shall deem advisable, including, without limitation,
by telephone conference or by written consent to the extent permitted by applicable law. A majority of the Committee members shall
constitute a quorum. All determinations of the Committee shall be made by a majority of its members. Any decision or determination
reduced to writing and signed by all the Committee members in accordance with the By-Laws of the Company shall be as fully effective
as if it had been made by a vote at a meeting duly called and held. The Committee shall keep minutes of its meetings and shall
make such rules and regulations for the conduct of its business as it shall deem advisable.

 

3.6           Designation
of Consultants/Liability.

 

(a)          The
Committee may, in its sole discretion, designate employees of the Company and professional advisors to assist the Committee in
the administration of the Plan and (to the extent permitted by applicable law and applicable securities exchange rules) may grant
authority to officers to grant Awards and/or execute agreements or other documents on behalf of the Committee.

 

(b)          The
Committee may, in its sole discretion, employ such legal counsel, consultants and agents as it may deem desirable for the administration
of the Plan and may rely upon any opinion received from any such counsel or consultant and any computation received from any such
consultant or agent. Expenses incurred by the Committee or the Board in the engagement of any such counsel, consultant or agent
shall be paid by the Company. The Committee, its members and any person designated pursuant to Section 3.6(a) above shall
not be liable for any action or determination made in good faith with respect to the Plan. To the maximum extent permitted by applicable
law, no officer of the Company or member or former member of the Committee or of the Board shall be liable for any action or determination
made in good faith with respect to the Plan or any Award granted under it.

 

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3.7           Indemnification.
To the maximum extent permitted by applicable law and the Certificate of Incorporation and By-Laws of the Company and to the extent
not covered by insurance directly insuring such person, each officer or employee of the Company or any Affiliate and member or
former member of the Committee or the Board shall be indemnified and held harmless by the Company against any cost or expense (including
reasonable fees of counsel reasonably acceptable to the Committee) or liability (including any sum paid in settlement of a claim
with the approval of the Committee), and advanced amounts necessary to pay the foregoing at the earliest time and to the fullest
extent permitted, arising out of any act or omission to act in connection with the administration of the Plan, except to the extent
arising out of such officer’s, employee’s, member’s or former member’s fraud or bad faith. Such indemnification
shall be in addition to any rights of indemnification the officers, employees, directors or members or former officers, directors
or members may have under applicable law or under the Certificate of Incorporation or By-Laws of the Company or any Affiliate.
Notwithstanding anything else herein, this indemnification will not apply to the actions or determinations made by an individual
with regard to Awards granted to him or her under the Plan.

 

Article
IV

SHARE LIMITATION

 

4.1           Shares.

 

(a)          General
Limitations. The aggregate number of shares of Common Stock that may be issued or used for reference purposes or with respect
to which Awards may be granted under the Plan shall not exceed five percent (5%) of the shares of Common Stock outstanding on a
fully diluted basis at any time (in any event subject to any increase or decrease pursuant to Section 4.2), which may be
either authorized and unissued Common Stock or Common Stock held in or acquired for the treasury of the Company or both. If any
Option, Stock Appreciation Right or Other Stock-Based Award granted under the Plan expires, terminates or is canceled for any reason
without having been exercised in full, the number of shares of Common Stock underlying any unexercised Award shall again be available
for the purpose of Awards under the Plan. If any shares of Restricted Stock, Performance Shares or Other Stock-Based Awards, denominated
in shares of Common Stock, granted under the Plan are forfeited for any reason, the number of forfeited shares of Restricted Stock,
Performance Shares or such Other Stock-Based Awards shall again be available for the purposes of Awards under the Plan, as provided
in this Section 4.1(a). If a Tandem Stock Appreciation Right or a Limited Stock Appreciation Right is granted in tandem
with an Option, such grant shall only apply once against the maximum number of shares of Common Stock that may be issued under
the Plan. Notwithstanding anything herein to the contrary, any share of Common Stock that again becomes available for grant pursuant
to this Section 4.1(a) shall be added back as one share of Common Stock to the maximum aggregate limit.

 

(b)          Individual
Participant Limitations.

 

(i)          The
maximum number of shares of Common Stock subject to any Award of Stock Options, Stock Appreciation Rights or shares of Restricted
Stock for which the grant of such Award or the lapse of the relevant Restriction Period is subject to the attainment of Performance
Goals in accordance with Section 8.3(a)(ii), which may be granted under the Plan during any fiscal year of the Company
to each Eligible Employee or Consultant shall be 750,000 shares per type of Award (which shall be subject to any further increase
or decrease pursuant to Section 4.2); provided, that the maximum number of shares of Common Stock for all types of
Awards does not exceed 1,500,000 (which shall be subject to any further increase or decrease pursuant to Section 4.2) during
any fiscal year of the Company. If a Tandem Stock Appreciation Right is granted or a Limited Stock Appreciation Right is granted
in tandem with a Stock Option, it shall apply against the Eligible Employee’s or Consultant’s individual share limitations
for both Stock Appreciation Rights and Stock Options.

 

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(ii)         The
maximum number of shares of Common Stock subject to any Award of Stock Options (other than Incentive Stock Options), Stock Appreciation
Rights or Other Stock-Based Awards that may be granted under the Plan during any fiscal year of the Company to each Non-Employee
Director shall be 750,000 shares per type of Award (which shall be subject to any further increase or decrease pursuant to Section
4.2); provided, that the maximum number of shares of Common Stock for all types of Awards does not exceed 1,500,000
(which shall be subject to any further increase or decrease pursuant to Section 4.2) during any fiscal year of the Company.
If a Tandem Stock Appreciation Right is granted or a Limited Stock Appreciation Right is granted in tandem with a Stock Option,
it shall apply against the Non-Employee Director’s individual share limitations for both Stock Appreciation Rights and Stock
Options.

 

(iii)        There
are no annual individual Eligible Employee or Consultant share limitations on Restricted Stock for which the grant of such Award
or the lapse of the relevant Restriction Period is not subject to attainment of Performance Goals in accordance with Section
8.3(a)(ii).

 

(iv)        The
maximum value at grant of Performance Shares that may be granted under the Plan with respect to any fiscal year of the Company
to each Eligible Employee or Consultant shall be $5,000,000. Each Performance Share shall be referenced to one share of Common
Stock and shall be charged against the available shares under the Plan at the time the unit value measurement is converted to a
referenced number of shares of Common Stock in accordance with Section 9.1.

 

(v)         The
individual Participant limitations set forth in this Section 4.1(b) shall be cumulative; that is, to the extent that
shares of Common Stock for which Awards are permitted to be granted to an Eligible Employee, Consultant or Non-Employee Director
during a fiscal year are not covered by an Award to such Eligible Employee, Consultant or Non-Employee Director, in a fiscal year,
the number of shares of Common Stock available for Awards to such Eligible Employee, Consultant or Non-Employee Director, shall
automatically increase in the subsequent fiscal years during the term of the Plan until used.

 

(vi)        The
individual Participant limitations set forth in this Section 4.1(b) shall not apply prior to the Registration Date
and, following the Registration Date, this Section 4.1(b) shall not apply until the expiration of the Transition Period.

 

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4.2           Changes.

 

(a)          The
existence of the Plan and the Awards granted hereunder shall not affect in any way the right or power of the Board or the stockholders
of the Company to make or authorize (i) any adjustment, recapitalization, reorganization or other change in the Company’s
capital structure or its business, (ii) any merger or consolidation of the Company or any Affiliate, (iii) any issuance of bonds,
debentures, preferred or prior preference stock ahead of or affecting the Common Stock, (iv) the dissolution or liquidation of
the Company or any Affiliate, (v) any sale or transfer of all or part of the assets or business of the Company or any Affiliate,
(vi) any Section 4.2 Event, or (vii) any other corporate act or proceeding.

 

(b)          Subject
to the provisions of Section 4.2(d), if there shall occur any such change in the capital structure of the Company by reason
of any stock split, reverse stock split, stock dividend, subdivision, combination or reclassification of shares that may be issued
under the Plan, any recapitalization, any merger, any consolidation, any spin off, any reorganization or any partial or complete
liquidation, or any other corporate transaction or event having an effect similar to any of the foregoing (a “Section
4.2 Event”), then (i) the aggregate number and/or kind of shares that thereafter may be issued under the Plan, (ii) the
number and/or kind of shares or other property (including cash) to be issued upon exercise of an outstanding Award or under other
Awards granted under the Plan, (iii) the purchase price thereof, and/or (iv) the individual Participant limitations set forth in
Section 4.1(b) (other than those based on cash limitations) shall be appropriately adjusted. In addition, subject to Section
4.2(d), if there shall occur any change in the capital structure or the business of the Company that is not a Section 4.2 Event
(an “Other Extraordinary Event”), including by reason of any extraordinary dividend (whether cash or stock),
any conversion, any adjustment, any issuance of any class of securities convertible or exercisable into, or exercisable for, any
class of stock, or any sale or transfer of all or substantially all the Company’s assets or business, then the Committee,
in its sole discretion, may adjust any Award and make such other adjustments to the Plan. Any adjustment pursuant to this Section
4.2 shall be consistent with the applicable Section 4.2 Event or the applicable Other Extraordinary Event, as the case may
be, and in such manner as the Committee may, in its sole discretion, deem appropriate and equitable to prevent substantial dilution
or enlargement of the rights granted to, or available for, Participants under the Plan. Any such adjustment determined by the Committee
shall be final, binding and conclusive on the Company and all Participants and their respective heirs, executors, administrators,
successors and permitted assigns. Except as expressly provided in this Section 4.2 or in the applicable Award agreement,
a Participant shall have no rights by reason of any Section 4.2 Event or any Other Extraordinary Event.

 

(c)          Fractional
shares of Common Stock resulting from any adjustment in Awards pursuant to Section 4.2(a) or Section 4.2(b) shall
be aggregated until, and eliminated at, the time of exercise by rounding-down for fractions less than one-half and rounding-up
for fractions equal to or greater than one-half. No cash settlements shall be made with respect to fractional shares eliminated
by rounding. Notice of any adjustment shall be given by the Committee to each Participant whose Award has been adjusted and such
adjustment (whether or not such notice is given) shall be effective and binding for all purposes of the Plan.

 

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(d)          In
the event of an Acquisition Event, the Committee may, in its sole discretion, terminate all outstanding and unexercised Stock Options
or Stock Appreciation Rights or any Other Stock Based Award that provides for a Participant elected exercise (“Exercisable
Awards”) effective as of the date of the Acquisition Event, by delivering notice of termination to each Participant at
least 20 days prior to the date of consummation of the Acquisition Event, in which case during the period from the date on which
such notice of termination is delivered to the consummation of the Acquisition Event, each such Participant shall have the right
to exercise his or her Exercisable Awards that are then outstanding to the extent vested as of the date on which such notice of
termination is delivered (or, at the discretion of the Committee, without regard to any limitations on exercisability otherwise
contained in the Award agreements), but any such exercise shall be contingent on the occurrence of the Acquisition Event; and,
provided, that if the Acquisition Event does not take place within a specified period after giving such notice for any reason
whatsoever, the notice and exercise pursuant thereto shall be null and void. For the avoidance of doubt, in the event of an Acquisition
Event, the Committee may, in its sole discretion, terminate any Exercisable Award for which the exercise price is equal to or exceeds
the Fair Market Value without payment of consideration therefor.

 

If an Acquisition Event occurs but the Committee does not terminate
the outstanding Awards pursuant to this Section 4.2(d), then the applicable provisions of Section 4.2(b) and Article
XII shall apply.

 

4.3           Minimum
Purchase Price. Notwithstanding any provision of the Plan to the contrary, if authorized but previously unissued shares
of Common Stock are issued under the Plan, such shares shall not be issued for a consideration that is less than as permitted under
applicable law.

 

Article
V

ELIGIBILITY AND GENERAL REQUIREMENTS FOR AWARDS

 

5.1           General
Eligibility. All Eligible Employees, Consultants, Non-Employee Directors and prospective employees and consultants are
eligible to be granted Awards, subject to the terms and conditions of the Plan. Eligibility for the grant of Awards and actual
participation in the Plan shall be determined by the Committee in its sole discretion.

 

5.2           Incentive
Stock Options. Notwithstanding anything herein to the contrary, only Eligible Employees of the Company, its Subsidiaries
and its Parent (if any) are eligible to be granted Incentive Stock Options under the Plan. Eligibility for the grant of an Incentive
Stock Option and actual participation in the Plan shall be determined by the Committee in its sole discretion.

 

5.3           General
Requirement. The vesting and exercise of Awards granted to a prospective employee or consultant are conditioned upon such
individual actually becoming an Eligible Employee or Consultant.

 

Article
VI

STOCK OPTIONS

 

6.1           Options.
Each Stock Option granted under the Plan shall be one of two types: (a) an Incentive Stock Option; or (b) a Non-Qualified Stock
Option.

 

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6.2           Grants.
The Committee shall, in its sole discretion, have the authority to grant to any Eligible Employee (subject to Section 5.2)
Incentive Stock Options, Non-Qualified Stock Options, or both types of Stock Options. The Committee shall, in its sole discretion,
have the authority to grant any Consultant or Non-Employee Director Non-Qualified Stock Options. To the extent that any Stock Option
does not qualify as an Incentive Stock Option (whether because of its provisions or the time or manner of its exercise or otherwise),
such Stock Option or the portion thereof that does not qualify shall constitute a separate Non-Qualified Stock Option.

 

6.3           Terms
of Options. Options granted under the Plan shall be subject to the following terms and conditions and shall be in such
form and contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Committee, in its sole
discretion, shall deem desirable:

 

(a)          Exercise
Price. The exercise price per share of Common Stock subject to a Stock Option shall be determined by the Committee at the time
of grant; provided, that the per share exercise price of a Stock Option shall not be less than 100% (or, in the case of
an Incentive Stock Option granted to a Ten Percent Stockholder, 110%) of the Fair Market Value of the Common Stock at the time
of grant.

 

(b)          Stock
Option Term. The term of each Stock Option shall be fixed by the Committee; provided, that no Stock Option shall be
exercisable more than 10 years after the date the Option is granted; and provided, further, that the term of an Incentive
Stock Option granted to a Ten Percent Stockholder shall not exceed five years.

 

(c)          Exercisability.
Stock Options shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the
Committee at grant. If the Committee provides, in its discretion, that any Stock Option is exercisable subject to certain limitations
(including, without limitation, that such Stock Option is exercisable only in installments or within certain time periods or upon
attainment of certain financial results), the Committee may waive such limitations on the exercisability at any time at or after
grant in whole or in part (including, without limitation, waiver of the installment exercise provisions or acceleration of the
time at which such Stock Option may be exercised), based on such factors, if any, as the Committee shall determine, in its sole
discretion. Unless otherwise determined by the Committee at grant, the Option agreement shall provide that (i) if the Participant
engages in Detrimental Activity prior to any exercise of the Stock Option, all Stock Options held by the Participant shall thereupon
terminate and expire, (ii) as a condition of the exercise of a Stock Option, the Participant shall be required to certify (or shall
be deemed to have certified) at the time of exercise in a manner acceptable to the Company that the Participant is in compliance
with the terms and conditions of the Plan and that the Participant has not engaged in, and does not intend to engage in, any Detrimental
Activity, and (iii) if the Participant engages in Detrimental Activity during the one-year period commencing on the later of the
date the Stock Option is exercised or the date of the Participant’s Termination, the Company shall be entitled to recover
from the Participant at any time within one year after such date, and the Participant shall pay over to the Company, an amount
equal to any gain realized as a result of the exercise (whether at the time of exercise or thereafter).

 

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(d)          Method
of Exercise. Subject to whatever installment exercise and waiting period provisions apply under Section 6.3(c) above,
to the extent vested, Stock Options may be exercised in whole or in part at any time during the Option term, by giving written
notice of exercise to the Company specifying the number of shares of Common Stock to be purchased. Such notice shall be accompanied
by payment in full of the purchase price as follows: (i) in cash or by check, bank draft or money order payable to the order of
the Company; (ii) solely to the extent permitted by applicable law, if the Common Stock is traded on a national securities exchange
or quoted on a national quotation system sponsored by a national securities association, and the Committee authorizes, through
a procedure whereby the Participant delivers irrevocable instructions to a broker reasonably acceptable to the Committee to deliver
promptly to the Company an amount equal to the purchase price; or (iii) on such other terms and conditions as may be acceptable
to the Committee (including, without limitation, the relinquishment of Stock Options or by payment in full or in part in the form
of Common Stock owned by the Participant based on the Fair Market Value of the Common Stock on the payment date as determined by
the Committee, in its sole discretion). No shares of Common Stock shall be issued until payment therefor, as provided herein, has
been made or provided for.

 

(e)          Non-Transferability
of Options. No Stock Option shall be Transferable by the Participant otherwise than by will or by the laws of descent and distribution,
and all Stock Options shall be exercisable, during the Participant’s lifetime, only by the Participant. Notwithstanding the
foregoing, the Committee may determine, in its sole discretion, at the time of grant or thereafter that a Non-Qualified Stock Option
that is otherwise not Transferable pursuant to this Section is Transferable to a Family Member in whole or in part and in such
circumstances, and under such conditions, as determined by the Committee, in its sole discretion. A Non-Qualified Stock Option
that is Transferred to a Family Member pursuant to the preceding sentence (i) may not be subsequently Transferred otherwise than
by will or by the laws of descent and distribution and (ii) remains subject to the terms of the Plan and the applicable Award agreement.
Any shares of Common Stock acquired upon the exercise of a Non-Qualified Stock Option by a permissible transferee of a Non-Qualified
Stock Option or a permissible transferee pursuant to a Transfer after the exercise of the Non-Qualified Stock Option shall be subject
to the terms of the Plan and the applicable Award agreement.

 

(f)          Incentive
Stock Option Limitations. To the extent that the aggregate Fair Market Value (determined as of the time of grant) of the Common
Stock with respect to which Incentive Stock Options are exercisable for the first time by an Eligible Employee during any calendar
year under the Plan and/or any other stock option plan of the Company, any Subsidiary or any Parent exceeds $100,000, such Options
shall be treated as Non-Qualified Stock Options. Should any provision of the Plan not be necessary in order for the Stock Options
to qualify as Incentive Stock Options, or should any additional provisions be required, the Committee may, in its sole discretion,
amend the Plan accordingly, without the necessity of obtaining the approval of the stockholders of the Company.

 

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(g)          Form,
Modification, Extension and Renewal of Stock Options. Subject to the terms and conditions and within the limitations of the
Plan, Stock Options shall be evidenced by such form of agreement or grant as is approved by the Committee, and the Committee may,
in its sole discretion (i) modify, extend or renew outstanding Stock Options granted under the Plan (provided, that the
rights of a Participant are not reduced without his or her consent; and provided, further, that such action does
not subject the Stock Options to Section 409A of the Code), and (ii) accept the surrender of outstanding Stock Options (up
to the extent not theretofore exercised) and authorize the granting of new Stock Options in substitution therefor (to the extent
not theretofore exercised). Notwithstanding the foregoing, an outstanding Option may not be modified to reduce the exercise price
thereof nor may a new Option at a lower price be substituted for a surrendered Option (other than adjustments or substitutions
in accordance with Section 4.2), unless such action is approved by the stockholders of the Company.

 

(h)          Early
Exercise. The Committee may provide that a Stock Option include a provision whereby the Participant may elect at any time before
the Participant’s Termination to exercise the Stock Option as to any part or all of the shares of Common Stock subject to
the Stock Option prior to the full vesting of the Stock Option and such shares shall be subject to the provisions of Article
VI and treated as Restricted Stock. Any unvested shares of Common Stock so purchased may be subject to a repurchase option
in favor of the Company or to any other restriction the Committee determines to be appropriate.

 

(i)          Other
Terms and Conditions. Stock Options may contain such other provisions, which shall not be inconsistent with any of the terms
of the Plan, as the Committee shall, in its sole discretion, deem appropriate.

 

Article
VII

STOCK APPRECIATION RIGHTS

 

7.1           Tandem
Stock Appreciation Rights. Stock Appreciation Rights may be granted in conjunction with all or part of any Stock Option
(a “Reference Stock Option”) granted under the Plan (“Tandem Stock Appreciation Rights”).
In the case of a Non-Qualified Stock Option, such rights may be granted either at or after the time of the grant of such Reference
Stock Option. In the case of an Incentive Stock Option, such rights may be granted only at the time of the grant of such Reference
Stock Option.

 

7.2           Terms
and Conditions of Tandem Stock Appreciation Rights. Tandem Stock Appreciation Rights granted hereunder shall be subject
to such terms and conditions, not inconsistent with the provisions of the Plan, as shall be determined from time to time by the
Committee in its sole discretion, and the following:

 

(a)          Exercise
Price. The exercise price per share of Common Stock subject to a Tandem Stock Appreciation Right shall be determined by the
Committee at the time of grant; provided, that the per share exercise price of a Tandem Stock Appreciation Right shall not
be less than 100% of the Fair Market Value of the Common Stock at the time of grant.

 

(b)          Term.
A Tandem Stock Appreciation Right or applicable portion thereof granted with respect to a Reference Stock Option shall terminate
and no longer be exercisable upon the termination or exercise of the Reference Stock Option, except that, unless otherwise determined
by the Committee, in its sole discretion, at the time of grant, a Tandem Stock Appreciation Right granted with respect to less
than the full number of shares covered by the Reference Stock Option shall not be reduced until and then only to the extent the
exercise or termination of the Reference Stock Option causes the number of shares covered by the Tandem Stock Appreciation Right
to exceed the number of shares remaining available and unexercised under the Reference Stock Option.

 

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(c)          Exercisability.
Tandem Stock Appreciation Rights shall be exercisable only at such time or times and to the extent that the Reference Stock Options
to which they relate shall be exercisable in accordance with the provisions of Article VI, and shall be subject to the provisions
of Section 6.3(c).

 

(d)          Method
of Exercise. A Tandem Stock Appreciation Right may be exercised by the Participant by surrendering the applicable portion of
the Reference Stock Option. Upon such exercise and surrender, the Participant shall be entitled to receive the payment determined
in the manner prescribed in this Section 7.2. Stock Options that have been so surrendered, in whole or in part, shall no
longer be exercisable to the extent the related Tandem Stock Appreciation Rights have been exercised.

 

(e)          Payment.
Upon the exercise of a Tandem Stock Appreciation Right, a Participant shall be entitled to receive up to, but no more than, an
amount in shares of Common Stock equal in value to the excess of the Fair Market Value of one share of Common Stock over the Option
exercise price per share specified in the Reference Stock Option agreement, multiplied by the number of shares in respect of which
the Tandem Stock Appreciation Right shall have been exercised.

 

(f)          Deemed
Exercise of Reference Stock Option. Upon the exercise of a Tandem Stock Appreciation Right, the Reference Stock Option or part
thereof to which such Stock Appreciation Right is related shall be deemed to have been exercised for the purpose of the limitation
set forth in Article IV of the Plan on the number of shares of Common Stock to be issued under the Plan.

 

(g)          Non-Transferability.
Tandem Stock Appreciation Rights shall be Transferable only when and to the extent that the underlying Stock Option would be Transferable
under Section 6.3(e) of the Plan.

 

7.3           Non-Tandem
Stock Appreciation Rights. Non-Tandem Stock Appreciation Rights may also be granted without reference to any Stock Options
granted under the Plan.

 

7.4           Terms
and Conditions of Non-Tandem Stock Appreciation Rights. Non-Tandem Stock Appreciation Rights granted hereunder shall be
subject to such terms and conditions, not inconsistent with the provisions of the Plan, as shall be determined from time to time
by the Committee in its sole discretion, and the following:

 

(a)          Exercise
Price. The exercise price per share of Common Stock subject to a Non-Tandem Stock Appreciation Right shall be determined by
the Committee at the time of grant; provided, that the per share exercise price of a Non-Tandem Stock Appreciation Right
shall not be less than 100% of the Fair Market Value of the Common Stock at the time of grant.

 

(b)          Term.
The term of each Non-Tandem Stock Appreciation Right shall be fixed by the Committee, but shall not be greater than 10 years after
the date the right is granted.

 

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(c)          Exercisability.
Non-Tandem Stock Appreciation Rights shall be exercisable at such time or times and subject to such terms and conditions as shall
be determined by the Committee at grant. If the Committee provides, in its discretion, that any such right is exercisable subject
to certain limitations (including, without limitation, that it is exercisable only in installments or within certain time periods),
the Committee may waive such limitations on the exercisability at any time at or after grant in whole or in part (including, without
limitation, waiver of the installment exercise provisions or acceleration of the time at which such right may be exercised), based
on such factors, if any, as the Committee shall determine, in its sole discretion. Unless otherwise determined by the Committee
at grant, the Award agreement shall provide that (i) in the event the Participant engages in Detrimental Activity prior to any
exercise of the Non-Tandem Stock Appreciation Right, all Non-Tandem Stock Appreciation Rights held by the Participant shall thereupon
terminate and expire, (ii) as a condition of the exercise of a Non-Tandem Stock Appreciation Right, the Participant shall be required
to certify (or shall be deemed to have certified) at the time of exercise in a manner acceptable to the Company that the Participant
is in compliance with the terms and conditions of the Plan and that the Participant has not engaged in, and does not intend to
engage in, any Detrimental Activity, and (iii) in the event the Participant engages in Detrimental Activity during the one-year
period commencing on the later of the date the Non-Tandem Stock Appreciation Right is exercised or the date of the Participant’s
Termination, the Company shall be entitled to recover from the Participant at any time within one year after such date, and the
Participant shall pay over to the Company, an amount equal to any gain realized as a result of the exercise (whether at the time
of exercise or thereafter).

 

(d)          Method
of Exercise. Subject to whatever installment exercise and waiting period provisions apply under Section 7.4(c) above,
Non-Tandem Stock Appreciation Rights may be exercised in whole or in part at any time in accordance with the applicable Award agreement,
by giving written notice of exercise to the Company specifying the number of Non-Tandem Stock Appreciation Rights to be exercised.

 

(e)          Payment.
Upon the exercise of a Non-Tandem Stock Appreciation Right a Participant shall be entitled to receive, for each right exercised,
up to, but no more than, an amount in shares of Common Stock equal in value to the excess of the Fair Market Value of one share
of Common Stock on the date the right is exercised over the Fair Market Value of one share of Common Stock on the date the right
was awarded to the Participant.

 

(f)          Non-Transferability.
No Non-Tandem Stock Appreciation Rights shall be Transferable by the Participant otherwise than by will or by the laws of descent
and distribution, and all such rights shall be exercisable, during the Participant’s lifetime, only by the Participant.

 

7.5           Limited
Stock Appreciation Rights. The Committee may, in its sole discretion, grant Tandem and Non-Tandem Stock Appreciation Rights
either as a general Stock Appreciation Right or as a limited stock appreciation right (a “Limited Stock Appreciation Right”).
Limited Stock Appreciation Rights may be exercised only upon the occurrence of a Change in Control or such other event as the Committee
may, in its sole discretion, designate at the time of grant or thereafter. Upon the exercise of Limited Stock Appreciation Rights,
except as otherwise provided in an Award agreement, the Participant shall receive in Common Stock an amount equal to the amount
(a) set forth in Section 7.2(e) with respect to Tandem Stock Appreciation Rights, or (b) set forth in Section 7.4(e)
with respect to Non-Tandem Stock Appreciation Rights, as applicable.

 

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Article
VIII

RESTRICTED STOCK

 

8.1           Awards
of Restricted Stock. Shares of Restricted Stock may be issued either alone or in addition to other Awards granted under
the Plan. The Committee shall, in its sole discretion, determine the Eligible Employees, Consultants and Non-Employee Directors,
to whom, and the time or times at which, grants of Restricted Stock shall be made, the number of shares to be awarded, the price
(if any) to be paid by the Participant (subject to Section 8.2), the time or times within which such Awards may be subject
to forfeiture, the vesting schedule and rights to acceleration thereof, and all other terms and conditions of the Awards. The Committee
may condition the grant or vesting of Restricted Stock upon the attainment of specified performance targets (including, the Performance
Goals specified in Exhibit A attached hereto) or such other factors as the Committee may determine, in its sole discretion,
including to comply with the requirements of Section 162(m) of the Code.

 

Unless otherwise determined
by the Committee at grant, each Award of Restricted Stock shall provide that in the event the Participant engages in Detrimental
Activity prior to, or during the one-year period after, any vesting of Restricted Stock, the Committee may direct that all unvested
Restricted Stock shall be immediately forfeited to the Company and that the Participant shall pay over to the Company an amount
equal to the Fair Market Value at the time of vesting of any Restricted Stock that had vested in the period referred to above.

 

8.2           Awards
and Certificates. Eligible Employees, Consultants and Non-Employee Directors selected to receive Restricted Stock shall
not have any rights with respect to such Award, unless and until such Participant has delivered a fully executed copy of the agreement
evidencing the Award to the Company and has otherwise complied with the applicable terms and conditions of such Award. Further,
such Award shall be subject to the following conditions:

 

(a)          Purchase
Price. The purchase price of Restricted Stock shall be fixed by the Committee. Subject to Section 4.3, the purchase
price for shares of Restricted Stock may be zero to the extent permitted by applicable law, and, to the extent not so permitted,
such purchase price may not be less than par value.

 

(b)          Acceptance.
Awards of Restricted Stock must be accepted within a period of 60 days (or such other period as the Committee may specify) after
the grant date, by executing a Restricted Stock agreement and by paying whatever price (if any) the Committee has designated thereunder.

 

(c)          Legend.
Each Participant receiving Restricted Stock shall be issued a stock certificate in respect of such shares of Restricted Stock,
unless the Committee elects to use another system, such as book entries by the transfer agent, as evidencing ownership of shares
of Restricted Stock. Any such certificate shall be registered in the name of such Participant, and shall, in addition to such legends
required by applicable securities laws, bear an appropriate legend referring to the terms, conditions, and restrictions applicable
to such Award, substantially in the following form:

 

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“The anticipation, alienation,
attachment, sale, transfer, assignment, pledge, encumbrance or charge of the shares of stock represented hereby are subject to
the terms and conditions (including forfeiture) of the Lightstone Real Estate Income Trust Inc. (the “Company”)
2014 Stock Incentive Plan (as the same may be amended or amended and restated from time to time, the “Plan”)
and an agreement entered into between the registered owner and the Company dated __________. Copies of such Plan and agreement
are on file at the principal office of the Company.”

 

(d)          Custody.
If stock certificates are issued in respect of shares of Restricted Stock, the Committee may require that any stock certificates
evidencing such shares be held in custody by the Company until the restrictions thereon shall have lapsed, and that, as a condition
of any grant of Restricted Stock, the Participant shall have delivered a duly signed stock power, endorsed in blank, relating to
the Common Stock covered by such Award.

 

8.3           Restrictions
and Conditions. The shares of Restricted Stock awarded pursuant to the Plan shall be subject to the following restrictions
and conditions:

 

(a)          (i)          Restriction
Period. The Participant shall not be permitted to Transfer shares of Restricted Stock awarded under the Plan during the period
or periods set by the Committee (the “Restriction Period”) commencing on the date of such Award, as set forth
in the Restricted Stock Award agreement and such agreement shall set forth a vesting schedule and any events that would accelerate
vesting of the shares of Restricted Stock. Within these limits, based on service, attainment of performance goals pursuant to Section
8.3(a)(ii) and/or such other factors or criteria as the Committee may determine in its sole discretion, the Committee may condition
the grant or provide for the lapse of such restrictions in installments in whole or in part, or may accelerate the vesting of all
or any part of any Restricted Stock Award and/or waive the deferral limitations for all or any part of any Restricted Stock Award.

 

(ii)         Objective
Performance Goals, Formulae or Standards. If the grant of shares of Restricted Stock or the lapse of restrictions is based
on the attainment of Performance Goals, the Committee shall establish the Performance Goals and the applicable vesting percentage
of the Restricted Stock Award applicable to each Participant or class of Participants in writing prior to the beginning of the
applicable fiscal year or at such later date as otherwise determined by the Committee and while the outcomes of the Performance
Goals are substantially uncertain. Such Performance Goals may incorporate provisions for disregarding (or adjusting for) changes
in accounting methods, corporate transactions (including, without limitation, dispositions and acquisitions) and other similar
type events or circumstances. With regard to a Restricted Stock Award that is intended to comply with Section 162(m) of the Code,
to the extent any such provision would create impermissible discretion under Section 162(m) of the Code or otherwise violate Section
162(m) of the Code, such provision shall be of no force or effect. The applicable Performance Goals shall be based on one or more
of the performance criteria set forth in Exhibit A hereto.

 

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(b)          Rights
as a Stockholder. Except as provided in this Section 8.3(b) and Section 8.3(a) above and as otherwise determined
by the Committee, the Participant shall have, with respect to the shares of Restricted Stock, all of the rights of a holder of
shares of Common Stock of the Company including, without limitation, the right to receive any dividends, the right to vote such
shares and, subject to and conditioned upon the full vesting of shares of Restricted Stock, the right to tender such shares. The
Committee may, in its sole discretion, determine at the time of grant that the payment of dividends shall be deferred until, and
conditioned upon, the expiration of the applicable Restriction Period.

 

(c)          Lapse
of Restrictions. If and when the Restriction Period expires without a prior forfeiture of the Restricted Stock, the certificates
for such shares shall be delivered to the Participant. All legends shall be removed from said certificates at the time of delivery
to the Participant, except as otherwise required by applicable law or other limitations imposed by the Committee.

 

Article
IX

PERFORMANCE SHARES

 

9.1           Award
of Performance Shares. Performance Shares may be awarded either alone or in addition to other Awards granted under the
Plan. The Committee shall, in its sole discretion, determine the Eligible Employees, Consultants and Non-Employee Directors, to
whom, and the time or times at which, Performance Shares shall be awarded, the number of Performance Shares to be awarded to any
person, the Performance Period during which, and the conditions under which, receipt of the Shares will be deferred, and the other
terms and conditions of the Award in addition to those set forth in Section 9.2.

 

Unless otherwise determined
by the Committee at grant, each Award of Performance Shares shall provide that in the event the Participant engages in Detrimental
Activity prior to, or during the one-year period after the later of the date of any vesting of Performance Shares or the date of
the Participant’s Termination, the Committee may direct (at any time within one year thereafter) that all unvested Performance
Shares shall be immediately forfeited to the Company and that the Participant shall pay over to the Company an amount equal to
any gain the Participant realized from any Performance Shares that had vested in the period referred to above.

 

Except as otherwise
provided herein, the Committee shall condition the right to payment of any Performance Share upon the attainment of objective performance
goals established pursuant to Section 9.2(c).

 

9.2           Terms
and Conditions. Performance Shares awarded pursuant to this Article IX shall be subject to the following terms and
conditions:

 

(a)          Earning
of Performance Share Award. At the expiration of the applicable Performance Period, the Committee shall determine the extent
to which the performance goals established pursuant to Section 9.2(c) are achieved and the percentage of each Performance
Share Award that has been earned.

 

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(b)          Non-Transferability.
Subject to the applicable provisions of the Award agreement and the Plan, Performance Shares may not be Transferred during the
Performance Period.

 

(c)          Objective
Performance Goals, Formulae or Standards. The Committee shall establish the objective Performance Goals for the earning of
Performance Shares based on a Performance Period applicable to each Participant or class of Participants in writing prior to the
beginning of the applicable Performance Period or at such later date as permitted under Section 162(m) of the Code and while
the outcomes of the Performance Goals are substantially uncertain. Such Performance Goals may incorporate, if and only to the extent
permitted under Section 162(m) of the Code, provisions for disregarding (or adjusting for) changes in accounting methods, corporate
transactions (including, without limitation, dispositions and acquisitions) and other similar type events or circumstances. To
the extent any such provision would create impermissible discretion under Section 162(m) of the Code or otherwise violate Section
162(m) of the Code, such provision shall be of no force or effect. The applicable Performance Goals shall be based on one or more
of the performance criteria set forth in Exhibit A hereto.

 

(d)          Dividends.
Unless otherwise determined by the Committee at the time of grant, amounts equal to any dividends declared during the Performance
Period with respect to the number of shares of Common Stock covered by a Performance Share will not be paid to the Participant.

 

(e)          Payment.
Following the Committee’s determination in accordance with Section 9.5(a), shares of Common Stock shall be delivered
to the Eligible Employee, Consultant or Non-Employee Director, or his legal representative, in an amount equal to such individual’s
earned Performance Share. Notwithstanding the foregoing, the Committee may, in its sole discretion, award an amount less than the
earned Performance Share and/or subject the payment of all or part of any Performance Share to additional vesting, forfeiture and
deferral conditions as it deems appropriate.

 

(f)          Accelerated
Vesting. Based on service, performance and/or such other factors or criteria, if any, as the Committee may determine, the Committee
may, in its sole discretion, at or after grant, accelerate the vesting of all or any part of any Performance Share Award and/or
waive the deferral limitations for all or any part of such Award.

 

    	23

    	 

    

 

Article
X

OTHER STOCK-BASED AWARDS

 

10.1         Other
Awards. The Committee, in its sole discretion, is authorized to grant to Eligible Employees, Consultants and Non-Employee
Directors Other Stock-Based Awards that are payable in, valued in whole or in part by reference to, or otherwise based on or related
to shares of Common Stock, including, but not limited to, shares of Common Stock awarded purely as a bonus and not subject to any
restrictions or conditions, shares of Common Stock in payment of the amounts due under an incentive or performance plan sponsored
or maintained by the Company or an Affiliate, performance units, dividend equivalent units, stock equivalent units, restricted
stock units and deferred stock units. To the extent permitted by law, the Committee may, in its sole discretion, permit Eligible
Employees and/or Non-Employee Directors to defer all or a portion of their cash compensation in the form of Other Stock-Based Awards
granted under the Plan, subject to the terms and conditions of any deferred compensation arrangement established by the Company,
which shall be intended to comply with Section 409A of the Code. Other Stock-Based Awards may be granted either alone or in addition
to or in tandem with other Awards granted under the Plan.

 

Unless otherwise determined
by the Committee at grant, each Other Stock-based Award shall provide that in the event the Participant engages in Detrimental
Activity prior to or during the one-year period after the later of the date of any vesting of Performance Shares or the date of
the Participant’s Termination, the Committee may direct (at any time within one year thereafter) that any unvested portion
of such Award shall be immediately forfeited to the Company and that the Participant shall pay over to the Company an amount equal
to any gain the Participant realized from any such Award that had vested in the period referred to above.

 

Subject to the provisions
of the Plan, the Committee shall, in its sole discretion, have authority to determine the Eligible Employees, Consultants and Non-Employee
Directors, to whom, and the time or times at which, such Awards shall be made, the number of shares of Common Stock to be awarded
pursuant to such Awards, and all other conditions of the Awards. The Committee may also provide for the grant of Common Stock under
such Awards upon the completion of a specified performance period.

 

The Committee may condition
the grant or vesting of Other Stock-Based Awards upon the attainment of specified Performance Goals set forth on Exhibit A
as the Committee may determine, in its sole discretion; provided, that to the extent that such Other Stock-Based Awards
are intended to comply with Section 162(m) of the Code, the Committee shall establish the objective Performance Goals for the vesting
of such Other Stock-Based Awards based on a performance period applicable to each Participant or class of Participants in writing
prior to the beginning of the applicable performance period or at such later date as permitted under Section 162(m) of the
Code and while the outcomes of the Performance Goals are substantially uncertain. Such Performance Goals may incorporate, if and
only to the extent permitted under Section 162(m) of the Code, provisions for disregarding (or adjusting for) changes in accounting
methods, corporate transactions (including, without limitation, dispositions and acquisitions) and other similar type events or
circumstances. To the extent any such provision would create impermissible discretion under Section 162(m) of the Code or otherwise
violate Section 162(m) of the Code, such provision shall be of no force or effect. The applicable Performance Goals shall be based
on one or more of the performance criteria set forth in Exhibit A hereto.

 

10.2         Terms
and Conditions. Other Stock-Based Awards made pursuant to this Article X shall be subject to the following terms
and conditions:

 

(a)          Non-Transferability.
Subject to the applicable provisions of the Award agreement and the Plan, shares of Common Stock subject to Awards made under this
Article X may not be Transferred prior to the date on which the shares are issued, or, if later, the date on which any applicable
restriction, performance or deferral period lapses.

 

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(b)          Dividends.
Unless otherwise determined by the Committee at the time of Award, subject to the provisions of the Award agreement and the Plan,
the recipient of an Award under this Article X shall not be entitled to receive, currently or on a deferred basis, dividends
or dividend equivalents with respect to the number of shares of Common Stock covered by the Award.

 

(c)          Vesting.
Any Award under this Article X and any Common Stock covered by any such Award shall vest or be forfeited to the extent so
provided in the Award agreement, as determined by the Committee, in its sole discretion.

 

(d)          Price.
Common Stock issued on a bonus basis under this Article X may be issued for no cash consideration; Common Stock purchased
pursuant to a purchase right awarded under this Article X shall be priced, as determined by the Committee in its sole discretion.

 

(e)          Payment.
Form of payment for the Other Stock-Based Award shall be specified in the Award agreement.

 

Article
XI

TERMINATION

 

11.1         Termination.
The following rules apply with regard to the Termination of a Participant.

 

(a)          Rules
Applicable to Stock Option and Stock Appreciation Rights. Unless otherwise determined by the Committee at grant (or, if no
rights of the Participant are reduced, thereafter):

 

(i)          Termination
by Reason of Death, Disability or Retirement. If a Participant’s Termination is by reason of death, Disability or the
Participant’s Retirement, all Stock Options or Stock Appreciation Rights that are held by such Participant that are vested
and exercisable at the time of the Participant’s Termination may be exercised by the Participant (or, in the case of death,
by the legal representative of the Participant’s estate) at any time within a one-year period from the date of such Termination,
but in no event beyond the expiration of the stated term of such Stock Options or Stock Appreciation Rights; provided, however,
if the Participant dies within such exercise period, all unexercised Stock Options or Stock Appreciation Rights held by such Participant
shall thereafter be exercisable, to the extent to which they were exercisable at the time of death, for a period of one year from
the date of such death, but in no event beyond the expiration of the stated term of such Stock Options or Stock Appreciation Rights.

 

    	25

    	 

    

 

(ii)         Involuntary
Termination Without Cause. If a Participant’s Termination is by involuntary termination without Cause, all Stock Options
or Stock Appreciation Rights that are held by such Participant that are vested and exercisable at the time of the Participant’s
Termination may be exercised by the Participant at any time within a period of 90 days from the date of such Termination, but in
no event beyond the expiration of the stated term of such Stock Options or Stock Appreciation Rights.

 

(iii)        Voluntary
Termination.  If a Participant’s Termination is voluntary (other than a voluntary termination described in Section
11.2(a)(iv)(2), or a Retirement), all Stock Options or Stock Appreciation Rights that are held by such Participant that are
vested and exercisable at the time of the Participant’s Termination may be exercised by the Participant at any time within
a period of 30 days from the date of such Termination, but in no event beyond the expiration of the stated terms of such Stock
Options or Stock Appreciation Rights.

 

(iv)        Termination
for Cause. If a Participant’s Termination: (A) is for Cause, or (B) is a voluntary Termination (as provided in Section
11.1(a)(iii)) or a Retirement after the occurrence of an event that would be grounds for a Termination for Cause, all Stock
Options or Stock Appreciation Rights, whether vested or not vested, that are held by such Participant shall thereupon terminate
and expire as of the date of such Termination.

 

(v)         Unvested
Stock Options and Stock Appreciation Rights. Stock Options or Stock Appreciation Rights that are not vested as of the date
of a Participant’s Termination for any reason shall terminate and expire as of the date of such Termination. Notwithstanding
the foregoing, if a Participant is deemed to have experienced a Termination of Employment in accordance with the last sentence
of Section 2.54 of the Plan, then (A) any Stock Options and any Stock Appreciation Rights that are not vested as of the
date of such Participant’s Termination of Employment in accordance with the last sentence of Section 2.54 of the Plan
(“Special Unvested Options or Rights”) shall not terminate or expire as of the date of such Termination of Employment
and shall remain outstanding until a Participant experiences a Termination of Employment (other than on account of the last sentence
of Section 2.54 of the Plan), but in no event beyond the expiration of the stated term of any such Special Unvested Options
or Rights, and (B) no Special Unvested Options or Rights will thereafter vest except as set forth in the next succeeding sentence.
If, after a Termination of Employment in accordance with the last sentence of Section 2.54 of the Plan, (1) a Participant
remains continuously employed by the Company or any of its Affiliates, and (2) subsequent thereto, such Participant becomes
regularly scheduled to work more than 24 hours per week, then any Special Unvested Options or Rights shall immediately vest as
to any shares of Common Stock that did not vest under the terms of such Special Unvested Options or Rights between the date of
such Participant’s Termination of Employment in accordance with the last sentence of Section 2.54 of the Plan and
the date such Participant became regularly scheduled to work more than 24 hours per week solely as a result of the application
of the immediately preceding sentence.

 

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(b)          Rules
Applicable to Restricted Stock, Performance Shares and Other Stock-Based Awards. Unless otherwise determined by the Committee
at grant or thereafter, upon a Participant’s Termination for any reason: (i) during the relevant Restriction Period, all
Restricted Stock still subject to restriction shall be forfeited; and (ii) any unvested Performance Shares or Other Stock-Based
Awards shall be forfeited.

 

Article
XII

CHANGE IN CONTROL PROVISIONS

 

12.1         Benefits.
In the event of a Change in Control of the Company, and except as otherwise provided by the Committee in an Award agreement or
in a written employment agreement between the Company and a Participant, a Participant’s unvested Award shall vest in full
and a Participant’s Award shall be treated in accordance with one of the following methods as determined by the Committee
in its sole discretion:

 

(a)          Awards,
whether or not vested by their terms or pursuant to the preceding sentence, shall be continued, assumed, have new rights substituted
therefor or be treated in accordance with Section 4.2(d), as determined by the Committee in its sole discretion, and restrictions
to which any shares of Restricted Stock or any other Award granted prior to the Change in Control are subject shall not lapse upon
a Change in Control (other than with respect to vesting pursuant to the foregoing provisions of this Section 12.1) and the
Restricted Stock or other Award shall, where appropriate in the sole discretion of the Committee, receive the same or other appropriate
distribution as other Common Stock on such terms as determined by the Committee in its sole discretion; provided, however,
that, the Committee may, in its sole discretion, decide to award additional Restricted Stock or other Award in lieu of any cash
distribution. Notwithstanding anything to the contrary herein, for purposes of Incentive Stock Options, any assumed or substituted
Stock Option shall comply with the requirements of Treasury Regulation § 1.424-1 (and any amendments thereto).

 

(b)          The
Committee, in its sole discretion, may provide for the purchase of any Awards by the Company or an Affiliate (or the cancellation
and extinguishment thereof pursuant to the terms of a merger agreement entered into by the Company) for an amount of cash equal
to the excess of the Change in Control Price (as defined below) of the shares of Common Stock covered by such Awards, over the
aggregate exercise price of such Awards. For purposes of this Section 12.1, “Change in Control Price”
shall mean the highest price per share of Common Stock paid in any transaction related to a Change in Control of the Company.

 

(c)          The
Committee may, in its sole discretion, provide for the cancellation of any particular Award or Awards without payment, if the Change
in Control Price is less than the Fair Market Value of such Award(s) on the date of grant.

 

(d)          Notwithstanding
anything else herein, the Committee may, in its sole discretion, provide for accelerated vesting or lapse of restrictions, of an
Award at the time of grant or at any time thereafter.

 

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12.2         Change
in Control. Unless otherwise determined by the Committee in the applicable Award agreement or other written agreement approved
by the Committee, a “Change in Control” shall be deemed to occur following any transaction if: (a) any “person”
as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other than the Company, any trustee or other fiduciary holding
securities under any employee benefit plan of the Company, or any company owned, directly or indirectly, by the stockholders of
the Company in substantially the same proportions as their ownership of Common Stock of the Company), becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 40% or more of the combined voting power
of the then outstanding securities of the Company (or its successor corporation); or (b) the stockholders of the Company approve
a plan of complete liquidation of the Company or the consummation of the sale or disposition by the Company of all or substantially
all of the Company’s assets other than (i) the sale or disposition of all or substantially all of the assets of the Company
to a person or persons who beneficially own, directly or indirectly, at least 50% or more of the combined voting power of the outstanding
voting securities of the Company at the time of the sale, or (ii) pursuant to a spin-off type transaction, directly or indirectly,
of such assets to the stockholders of the Company.

 

Article
XIII

TERMINATION OR AMENDMENT OF PLAN

 

13.1         Termination
or Amendment. Notwithstanding any other provision of the Plan, the Board or the Committee may at any time, and from time
to time, amend, in whole or in part, any or all of the provisions of the Plan (including any amendment deemed necessary to ensure
that the Company may comply with any regulatory requirement referred to in Article XV), or suspend or terminate it entirely,
retroactively or otherwise; provided, however, that, unless otherwise required by law or specifically provided herein,
the rights of a Participant with respect to Awards granted prior to such amendment, suspension or termination, may not be impaired
without the consent of such Participant; and provided, further, without the approval of the stockholders of the Company
in accordance with the laws of the State of Maryland, to the extent required by the applicable provisions of Rule 16b-3 or Section
162(m) of the Code, pursuant to the requirements of any applicable securities exchange rule, or, to the extent applicable to Incentive
Stock Options, Section 422 of the Code, no amendment may be made that would:

 

(a)          increase
the aggregate number of shares of Common Stock that may be issued under the Plan pursuant to Section 4.1 (except by operation
of Section 4.2);

 

(b)          increase
the maximum individual Participant limitations for a fiscal year under Section 4.1(b) (except by operation of Section
4.2);

 

(c)          change
the classification of Eligible Employees or Consultants eligible to receive Awards under the Plan;

 

(d)          decrease
the minimum option price of any Stock Option or Stock Appreciation Right;

 

(e)          extend
the maximum option period under Section 6.3;

 

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(f)          alter
the Performance Goals for the Award of Restricted Stock, Performance Shares or Other Stock-Based Awards subject to satisfaction
of Performance Goals as set forth in Exhibit A;

 

(g)          award
any Stock Option or Stock Appreciation Right in replacement of a canceled Stock Option or Stock Appreciation Right with a higher
exercise price, except in accordance with Section 6.3(g); or

 

(h)          require
stockholder approval in order for the Plan to continue to comply with the applicable provisions of Section 162(m) of the Code or,
to the extent applicable to Incentive Stock Options, Section 422 of the Code. In no event may the Plan be amended without the approval
of the stockholders of the Company in accordance with the applicable laws of the State of Maryland to increase the aggregate number
of shares of Common Stock that may be issued under the Plan, decrease the minimum exercise price of any Stock Option or Stock Appreciation
Right, or to make any other amendment that would require stockholder approval under the rules of any other securities exchange
or system on which the Company’s securities are listed or traded at the request of the Company.

 

The Committee may amend
the terms of any Award theretofore granted, prospectively or retroactively, but, subject to Article IV or as otherwise specifically
provided herein, no such amendment or other action by the Committee shall adversely impair the rights of any holder without the
holder’s consent. Notwithstanding anything herein to the contrary, the Board or the Committee may amend the Plan or any Award
granted hereunder at any time without a Participant’s consent to comply with Code Section 409A or any other applicable law.

 

Article
XIV

UNFUNDED PLAN

 

14.1         Unfunded
Status of Plan. The Plan is an “unfunded” plan for incentive and deferred compensation. With respect to any
payments as to which a Participant has a fixed and vested interest but that are not yet made to a Participant by the Company, nothing
contained herein shall give any such Participant any rights that are greater than those of a general unsecured creditor of the
Company.

 

Article
XV

GENERAL PROVISIONS

 

15.1         Legend.
The Committee may require each person receiving shares of Common Stock pursuant to an Award granted under the Plan to represent
to and agree with the Company in writing that the Participant is acquiring the shares without a view to distribution thereof and
such other securities law-related representations as the Committee shall request. In addition to any legend required by the Plan,
the certificates and/or book entry accounts for such shares may include any legend that the Committee, in its sole discretion,
deems appropriate to reflect any restrictions on Transfer.

 

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All certificates and/or
book entry accounts for shares of Common Stock delivered under the Plan shall be subject to such stop transfer orders and other
restrictions as the Committee may, in its sole discretion, deem advisable under the rules, regulations and other requirements of
the Securities and Exchange Commission, the stock market or any national securities exchange system upon whose system the Common
Stock is then quoted, any applicable Federal or state securities law, and any applicable corporate law, and the Committee may cause
a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

 

15.2         Other
Plans. Nothing contained in the Plan shall prevent the Board from adopting other or additional compensation arrangements,
subject to stockholder approval if such approval is required; and such arrangements may be either generally applicable or applicable
only in specific cases.

 

15.3         No
Right to Employment/Directorship/Consultancy. Neither the Plan nor the grant of any Option or other Award hereunder shall
give any Participant or other employee, Consultant or Non-Employee Director any right with respect to continuance of employment,
consultancy or directorship by the Company or any Affiliate, nor shall they be a limitation in any way on the right of the Company
or any Affiliate by which an employee is employed or a Consultant or Non-Employee Director is retained to terminate his or her
employment, consultancy or directorship at any time.

 

15.4         Withholding
of Taxes. The Company shall have the right to deduct from any payment to be made pursuant to the Plan, or to otherwise
require, prior to the issuance or delivery of any shares of Common Stock or the payment of any cash hereunder, payment by the Participant
of, any Federal, state or local taxes required by law to be withheld. Upon the vesting of Restricted Stock (or other Award that
is taxable upon vesting), or upon making an election under Section 83(b) of the Code, a Participant shall pay all required withholding
to the Company. Any statutorily required withholding obligation with regard to any Participant may be satisfied, subject to the
advance consent of the Committee, by reducing the number of shares of Common Stock otherwise deliverable or by delivering shares
of Common Stock already owned. Any fraction of a share of Common Stock required to satisfy such tax obligations shall be disregarded
and the amount due shall be paid instead in cash by the Participant.

 

15.5         No
Assignment of Benefits. No Award or other benefit payable under the Plan shall, except as otherwise specifically provided
by law or permitted by the Committee, be Transferable in any manner, and any attempt to Transfer any such benefit shall be void,
and any such benefit shall not in any manner be liable for or subject to the debts, contracts, liabilities, engagements or torts
of any person who shall be entitled to such benefit, nor shall it be subject to attachment or legal process for or against such
person.

 

15.6         Listing
and Other Conditions.

 

(a)          Unless
otherwise determined by the Committee, upon becoming and for as long as the Common Stock is listed on a national securities exchange
or system sponsored by a national securities association, the issue of any shares of Common Stock pursuant to an Award shall be
conditioned upon such shares being listed on such exchange or system. The Company shall have no obligation to issue such shares
unless and until such shares are so listed, and the right to exercise any Option or other Award with respect to such shares shall
be suspended until such listing has been effected.

 

    	30

    	 

    

 

(b)          If
at any time counsel to the Company shall be of the opinion that any sale or delivery of shares of Common Stock pursuant to an Option
or other Award is or may in the circumstances be unlawful or result in the imposition of excise taxes on the Company under the
statutes, rules or regulations of any applicable jurisdiction, the Company shall have no obligation to make such sale or delivery,
or to make any application or to effect or to maintain any qualification or registration under the Securities Act or otherwise,
with respect to shares of Common Stock or Awards, and the right to exercise any Option or other Award shall be suspended until,
in the opinion of said counsel, such sale or delivery shall be lawful or will not result in the imposition of excise taxes on the
Company.

 

(c)          Upon
termination of any period of suspension under this Section 15.6, any Award affected by such suspension that shall not then
have expired or terminated shall be reinstated as to all shares available before such suspension and as to shares that would otherwise
have become available during the period of such suspension, but no such suspension shall extend the term of any Award.

 

(d)          A
Participant shall be required to supply the Company with any certificates, representations and information that the Company requests
and otherwise cooperate with the Company in obtaining any listing, registration, qualification, exemption, consent or approval
the Company deems necessary or appropriate.

 

15.7         Governing
Law. The Plan and actions taken in connection herewith shall be governed and construed in accordance with the laws of the
State of Maryland (regardless of the law that might otherwise govern under applicable Maryland principles of conflict of laws).

 

15.8         Construction.
Wherever any words are used in the Plan in the masculine gender they shall be construed as though they were also used in the feminine
gender in all cases where they would so apply, and wherever any words are used herein in the singular form they shall be construed
as though they were also used in the plural form in all cases where they would so apply.

 

15.9         Other
Benefits. No Award granted or paid out under the Plan shall be deemed compensation for purposes of computing benefits under
any retirement plan of the Company or its Affiliates nor affect any benefits under any other benefit plan now or subsequently in
effect under which the availability or amount of benefits is related to the level of compensation.

 

15.10         Costs.
The Company shall bear all expenses associated with administering the Plan, including expenses of issuing Common Stock pursuant
to any Awards hereunder.

 

15.11         No
Right to Same Benefits. The provisions of Awards need not be the same with respect to each Participant, and such Awards
to individual Participants need not be the same in subsequent years.

 

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15.12         Death/Disability.
The Committee may in its sole discretion require the transferee of a Participant to supply it with written notice of the Participant’s
death or Disability and to supply it with a copy of the will (in the case of the Participant’s death) or such other evidence
as the Committee deems necessary to establish the validity of the transfer of an Award. The Committee may, in its discretion, also
require the agreement of the transferee to be bound by all of the terms and conditions of the Plan.

 

15.13         Section
16(b) of the Exchange Act. On and after the Registration Date, all elections and transactions under the Plan by persons
subject to Section 16 of the Exchange Act involving shares of Common Stock are intended to comply with any applicable exemptive
condition under Rule 16b-3. The Committee may, in its sole discretion, establish and adopt written administrative guidelines, designed
to facilitate compliance with Section 16(b) of the Exchange Act, as it may deem necessary or proper for the administration and
operation of the Plan and the transaction of business thereunder.

 

15.14         Section
409A of the Code. Although the Company does not guarantee the particular tax treatment of an Award granted under the Plan,
Awards made under the Plan are intended to comply with, or be exempt from, the applicable requirements of Section 409A of the Code
and the Plan and any Award agreement hereunder shall be limited, construed and interpreted in accordance with such intent. Notwithstanding
anything herein to the contrary, any provision in the Plan that is inconsistent with Section 409A of the Code shall be deemed to
be amended to comply with Section 409A of the Code and to the extent such provision cannot be amended to comply therewith, such
provision shall be null and void.

 

15.15         Successor
and Assigns. The Plan shall be binding on all successors and permitted assigns of a Participant, including, without limitation,
the estate of such Participant and the executor, administrator or trustee of such estate.

 

15.16         Severability
of Provisions. If any provision of the Plan shall be held invalid or unenforceable, such invalidity or unenforceability
shall not affect any other provisions hereof, and the Plan shall be construed and enforced as if such provisions had not been included.

 

15.17         Payments
to Minors, Etc. Any benefit payable to or for the benefit of a minor, an incompetent person or other person incapable
of receipt thereof shall be deemed paid when paid to such person’s guardian or to the party providing or reasonably appearing
to provide for the care of such person, and such payment shall fully discharge the Committee, the Board, the Company, its Affiliates
and their employees, agents and representatives with respect thereto.

 

15.18         Headings
and Captions. The headings and captions herein are provided for reference and convenience only, shall not be considered
part of the Plan, and shall not be employed in the construction of the Plan.

 

15.19         Transition
Period. The Plan has been adopted by the Board and approved by the Company’s stockholder, both of which occurred
prior to the occurrence of a Registration Date. The Plan is intended to constitute a plan described in Treasury Regulation Section
1.162-27(f)(1), pursuant to which the deduction limits under Section 162(m) of the Code do not apply during the applicable reliance
period. The reliance period shall end on the earliest date identified in the definition of “Transition Period” contained
in Section 2.56 of the Plan.

 

    	32

    	 

    

 

Article
XVI

EFFECTIVE DATE OF PLAN

 

The Plan shall become
effective upon adoption by the Board or such later date as provided in the adopting resolution, subject to the approval of the
Plan by the stockholders of the Company within 12 months before or after adoption of the Plan by the Board in accordance with the
laws of the State of Maryland.

 

Article
XVII

TERM OF PLAN

 

The Plan was adopted
by the Board on [ ], 2014, and was approved by the Company’s stockholder on [ ], 2014. No Award shall be granted pursuant
to the Plan on or after [ ], 2019, but Awards granted prior to such date may, and the Committee’s authority to administer
the terms of such Awards, extend beyond that date; provided, however, that no Award (other than a Stock Option or
Stock Appreciation Right) that is intended to be “performance-based” under Section 162(m) of the Code shall be granted
on or after the fifth anniversary of the stockholder approval of the Plan unless the Performance Goals set forth on Exhibit
A are reapproved (or other designated performance goals are approved) by the stockholders no later than the first stockholder
meeting that occurs in the fifth year following the year in which stockholders approve the Performance Goals set forth on Exhibit
A.

 

Article
XVIII

NAME OF PLAN

 

The Plan shall be known
as the “Lightstone Real Estate Income Trust Inc. 2014 Stock Incentive Plan.”

 

    	33

    	 

    

 

Exhibit
A

PERFORMANCE GOALS

 

To the extent permitted
under Section 162(m) of the Code, performance goals established for purposes of the grant or vesting of Awards of Restricted Stock,
Other Stock-Based Awards and/or Performance Shares, each intended to be “performance-based” under Section 162(m) of
the Code, shall be based on the attainment of certain target levels of, or a specified increase or decrease (as applicable) in
one or more of the following performance goals (“Performance Goals”):

 

		(a)	earnings per share;

 

		(b)	operating income;

 

		(c)	net income;

 

		(d)	cash flow;

 

		(e)	gross profit;

 

		(f)	gross profit return on investment;

 

		(g)	gross margin return on investment;

 

		(h)	gross margin;

 

		(i)	working capital;

 

		(j)	earnings before interest and taxes;

 

		(k)	earnings before interest, tax, depreciation and amortization;

 

		(l)	return on equity;

 

		(m)	return on assets;

 

		(n)	return on capital;

 

		(o)	return on invested capital;

 

		(p)	net revenues;

 

		(q)	gross revenues;

 

		(r)	revenue growth;

 

		(s)	total shareholder return;

 

    	A-1

    	 

    

 

		(t)	economic value added;

 

		(u)	specified objectives with regard to limiting the level of increase in all or a portion of the Company’s
bank debt or other long-term or short-term public or private debt or other similar financial obligations of the Company, which
may be calculated net of cash balances and/or other offsets and adjustments as may be established by the Committee in its sole
discretion;

 

		(v)	the fair market value of the shares of the Company’s Common Stock;

 

		(w)	the growth in the value of an investment in the Company’s Common Stock assuming the reinvestment
of dividends; or

 

		(x)	reduction in expenses.

 

To the extent permitted
under Section 162(m) of the Code, the Committee may, in its sole discretion, also exclude, or adjust to reflect, the impact of
an event or occurrence that the Committee determines should be appropriately excluded or adjusted, including:

 

(i)          restructurings,
discontinued operations, extraordinary items or events, and other unusual or non-recurring charges as described in Accounting Principles
Board Opinion No. 30 and/or management’s discussion and analysis of financial condition and results of operations appearing
or incorporated by reference in the Company’s Form 10-K for the applicable year;

 

(ii)         an
event either not directly related to the operations of the Company or not within the reasonable control of the Company’s
management; or

 

(iii)        a
change in tax law or accounting standards required by generally accepted accounting principles.

 

Performance goals may
also be based upon individual Participant performance goals, as determined by the Committee, in its sole discretion.

 

In addition, such Performance
Goals may be based upon the attainment of specified levels of Company (or subsidiary, division, other operational unit or administrative
department of the Company) performance under one or more of the measures described above relative to the performance of other corporations.
To the extent permitted under Section 162(m) of the Code, but only to the extent permitted under Section 162(m) of the Code (including,
without limitation, compliance with any requirements for stockholder approval), the Committee may also:

 

		(a)	designate additional business criteria on which the performance goals may be based; or

 

		(b)	adjust, modify or amend the aforementioned business criteria.

 

    	A-2Patent and Technology License Agreement, effective November 1, 2009

 Exhibit 10.2 

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has
been requested with respect to the omitted portions. 
 AMENDED AND RESTATED PATENT AND TECHNOLOGY LICENSE AGREEMENT 

This AMENDED AND RESTATED PATENT AND TECHNOLOGY LICENSE AGREEMENT (“AGREEMENT”) is made on this 1st day of November, 2009, by and between FRED HUTCHINSON CANCER RESEARCH CENTER (“FHCRC”), a Washington state nonprofit organization, with principal offices located at 1100 Fairview Ave. N.,
Seattle, Washington 98109, and ZETARX LLC, a Delaware limited liability company, having a principal place of business located at 9701 Wilshire Blvd. Suite 1000, Beverly Hills, CA 90212 (“LICENSEE”). 

RECITALS 
  

	A.	WHEREAS, FHCRC owns certain PATENT RIGHTS and TECHNOLOGY RIGHTS (capitalized terms are defined in Article II); 

  

	B.	WHEREAS, FHCRC is willing to license the PATENT RIGHTS and TECHNOLOGY RIGHTS to LICENSEE in accordance with the terms and conditions of this AGREEMENT, and LICENSEE desires to obtain such a license; 

 

	C.	WHEREAS, FHCRC, a nonprofit corporation exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, organized and operated exclusively for charitable, scientific
and educational purposes, has determined that this AGREEMENT is in furtherance of its mission; 

  

	D.	WHEREAS, FHCRC and LICENSEE are additionally entering into a RESEARCH AGREEMENT on mutually agreeable terms and conditions for performance of the PROJECT; 

  
 -1- 

	E.	WHEREAS, Juno Therapeutics, Inc. acquired this AGREEMENT on October 16, 2013 as part of an asset acquisition from ZetaRx Biosciences, Inc. (f/k/a ZETARX LLC), and Juno Therapeutics, Inc. thereby became the LICENSEE
under this AGREEMENT; and 

  

	F.	WHEREAS, FHCRC and LICENSEE have entered into additional license agreements (i.e., that certain Patent and Technology License Agreement entered as of January 2, 2012 (the “2012 LICENSE”) and that
certain Patent and Technology License Agreement entered as of October 16, 2013 (the “2013 LICENSE”)) and have agreed, effective as of November 19, 2014, to amend and restate this AGREEMENT and such agreements, in order to
ensure that if more than one of such license agreements are practiced with respect to LICENSED PRODUCTS that the aggregate financial obligations of LICENSEE to FHCRC with respect to LICENSED PRODUCTS are not onerous. 

NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, the parties agree as follows: 

I. EFFECTIVE DATE 
  

	1.1	This AGREEMENT is effective as of the date first written above (“EFFECTIVE DATE”). 

II. DEFINITIONS 
 As used
in this AGREEMENT, the following terms have the meanings indicated: 
  

	2.1	AFFILIATE means any business entity more than fifty percent (50%) owned by LICENSEE, any business entity which owns more than fifty percent (50%) of LICENSEE, or any business entity that is more than
fifty percent (50%) owned by a business entity that owns more than fifty percent (50%) of LICENSEE. For purposes of the foregoing, “owned” and “owns” shall include direct or indirect ownership. 

  
 -2- 

	2.2	EQUITY FINANCING means any equity or convertible debt financing, including without limitation a Series A preferred membership interest financing and/or other membership interest financing or a convertible
promissory note financing, by LICENSEE. 

  

	2.3	FUNDED RESEARCH means the research conducted for the PROJECT in the laboratory of Dr. Stan Riddell pursuant to the RESEARCH AGREEMENT. 

 

	2.4	LICENSED FIELD means all fields of use. 

  

	2.5	LICENSED PRODUCTS means any product or service comprising, or made, used or sold through the use of or incorporating, LICENSED SUBJECT MATTER. 

 

	2.6	LICENSED SUBJECT MATTER means the PATENT RIGHTS and TECHNOLOGY RIGHTS within the LICENSED FIELD. 

  

	2.7	LICENSED TERRITORY means worldwide. 

  

	2.8	 NET SALES means the gross revenues received by LICENSEE, AFFILIATES, or sublicensees from a SALE, [***], less sales discounts actually granted
(including cash, trade and quantity discounts, rebates, allowances, chargebacks and retroactive price adjustments), sales and/or use taxes actually paid or incurred, direct sales costs, including sales and distribution commissions paid, import
and/or export duties actually paid, outbound transportation actually prepaid or allowed, and amounts actually allowed or credited due to returns, rejections or damaged goods (not exceeding the original billing or invoice amount), all as recorded by
LICENSEE in LICENSEE’s official books and records in accordance with generally accepted accounting practices and consistent with LICENSEE’s financial statements. NET SALES shall not include SALES by LICENESEE to its AFFILIATES for resale,
provided that if LICENSEE sells a LICENSED PRODUCT to an AFFILIATE for resale, LICENSEE shall include the amounts [***] such AFFILIATE to THIRD PARTIES 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -3- 

	 	
on the resale of such LICENSED PRODUCT. SALES for preclinical, clinical or regulatory purposes shall not be included in NET SALES. In the event a LICENSED PRODUCT is sold in combination with drug
substances (“Combination Product”), NET SALES, for purposes of royalty payments on the Combination Product, shall be calculated by [***]. In the event that no such separate sales are made, the parties shall mutually agree upon a reasonable
method for calculating NET SALES for purposes of royalty payments on the Combination Product. 

  

	2.9	PATENT RIGHTS means FHCRC’s rights in information, inventions or discoveries described in invention disclosures, or claimed in any patents, and/or patent applications, whether domestic or foreign, and all
divisionals, continuations, continuations-in-part, reissues, reexaminations or extensions thereof, and any letters patent that issue, that relate to the subject matter identified in Exhibit A attached hereto, including any and all claims to
improvements, changes, modifications, variations, revisions, additions, enhancements, and expansions that are [***] to the subject matter identified in Exhibit A. 

 

	2.10	PERSON means any individual, entity, association, corporation, partnership, limited liability company, government (or agency or subdivision thereof), trust, joint venture, or proprietorship. 

 

	2.11	PROJECT means the activities set forth in the research work plan attached hereto as Exhibit C and as subsequently modified pursuant to the RESEARCH AGREEMENT. 

 

	2.12	 RESEARCH AGREEMENT means the separate written agreement on mutually agreeable terms and conditions between FHCRC and LICENSEE by which LICENSEE
shall pay to FHCRC the amount of [***] per year (“ANNUAL RESEARCH CONTRIBUTION AMOUNT”) for a [***] year term in support of the FUNDED RESEARCH. The parties agree and acknowledge that the RESEARCH AGREEMENT shall provide the following: (i)

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -4- 

	 	
commencing [***] after the EFFECTIVE DATE, the ANNUAL RESEARCH CONTRIBUTION AMOUNT shall be payable in [***] installments of [***]; (ii) the parties intend that the scope of the research
work plan for the RESEARCH AGREEMENT will be consistent with the research work plan set forth in Exhibit C; and (iii) LICENSEE shall have the option to extend the term of the RESEARCH AGREEMENT for up to [***], subject to (i) Dr. Stan
Riddell’s written consent, (ii) FHCRC’s written consent, and (iii) the negotiation and modification of the research work plan of (and any necessary modifications to) the RESEARCH AGREEMENT as mutually agreed upon by FHCRC and
LICENSEE. 

  

	2.13	SALE or SOLD means the transfer or disposition of a LICENSED PRODUCT for value to a party other than LICENSEE or any of its AFFILIATES or sublicensees. 

 

	2.14	TECHNOLOGY RIGHTS means FHCRC’s rights in any technical information, know-how, processes, procedures, compositions, devices, methods, formulae, protocols, techniques, software, designs, drawings or data
created by or for [***] that (a) are not claimed in the PATENT RIGHTS but are necessary for practicing the PATENT RIGHTS or (b) [***]. 

  

	2.15	THIRD PARTY shall mean a Person other than LICENSEE or FHCRC or an AFFILIATE of either party. 

  

	2.16	VALID CLAIM means a claim of (a) an issued and unexpired patent included in the PATENT RIGHTS that has not been held unenforceable, unpatentable or invalid by a decision of a court or other governmental body
of competent jurisdiction, unappealable or unappealed within the time allowed for appeal, and that has not been abandoned or admitted to be invalid or unenforceable through reissue or disclaimer or otherwise, or (h) any patent application
included in the PATENT RIGHTS that has been pending for less than [***] from the filing date of the earliest patent application from which such patent application claims priority and that has not been cancelled, withdrawn or abandoned.

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -5- 

 III. LICENSE 
  

	3.1	FHCRC hereby grants to LICENSEE a royalty-bearing, exclusive right and license under LICENSED SUBJECT MATTER to make, manufacture, have manufactured, use, import, promote, market, import or export, offer to sell and
sell LICENSED PRODUCTS within the LICENSED TERRITORY for use within the LICENSED FIELD. This grant is subject to Sections 13.2 and 13.3 hereinbelow, the payment by LICENSEE to FHCRC of all consideration as provided herein, and the following rights
retained by FHCRC to: 

  

	 	(a)	publish the general scientific findings from research related to LICENSED SUBJECT MATTER, subject to the terms of Article X; and 

  

	 	(b)	use LICENSED SUBJECT MATTER for non-commercial research, teaching, non-commercial patient care, and other educationally-related purposes. 

 

	3.2	LICENSEE may extend the license granted herein to any AFFILIATE provided that the AFFILIATE consents in writing to be bound by this AGREEMENT to the same extent as LICENSEE. LICENSEE agrees to deliver such contract to
FHCRC within [***] following execution thereof. 

  

	3.3	LICENSEE may grant sublicenses under LICENSED SUBJECT MATTER consistent with the terms of this AGREEMENT. LICENSEE shall be responsible for its sublicensees relevant to this AGREEMENT, and for diligently collecting all
amounts due LICENSEE from sublicensees. LICENSEE’s sublicenses shall be no less favorable to FHCRC than this AGREEMENT in terms of limiting FHCRC’s liability, protecting FHCRC’s intellectual property and proprietary rights and
indemnities in favor of FHCRC. If a sublicensee pursuant 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -6- 

	 	
hereto becomes bankrupt, insolvent or is placed in the hands of a receiver or trustee, LICENSEE, to the extent allowed under applicable law and in a timely manner, agrees to use reasonable
commercial efforts to collect all consideration owed to LICENSEE and to have the sublicense agreement assumed or rejected by a court of proper jurisdiction as soon as reasonably possible. 

 

	3.4	LICENSEE must deliver to FHCRC a true and correct copy of each sublicense granted by LICENSEE, and any modification or termination thereof, within [***] after execution, modification, or termination. 

 

	3.5	If this AGREEMENT is terminated pursuant to Article XII of this AGREEMENT, FHCRC agrees to accept as successors to LICENSEE, existing sublicensees in good standing at the date of termination provided that each such
sublicensee consents in writing to be bound by all of the terms and conditions of this AGREEMENT. 

 IV. CONSIDERATION,
PAYMENTS AND REPORTS 
  

	4.1	In consideration of rights granted by FHCRC to LICENSEE under this AGREEMENT, LICENSEE agrees to pay FHCRC the following: 

  

	 	(a)	[***] paid by FHCRC [***] (such amount estimated to be approximately [***] through [***]) and [***] in filing, prosecuting, and maintaining PATENT RIGHTS for United States and foreign national filings. FHCRC will
invoice LICENSEE within [***] of the EQUITY FINANCING for [***], and invoice [***] on a [***] basis. The invoiced amounts will be due and payable by LICENSEE within [***] of invoice. 

 

	 	(b)	During the term of this AGREEMENT, LICENSEE shall pay FHCRC a minimum annual royalty of Five Thousand Dollars (US$5,000.00) until FDA approval of a LICENSED PRODUCT, due and payable in pro rata amounts at the beginning
of 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -7- 

	 	
each calendar quarterly reporting period and shall be creditable each calendar quarter against the royalty described in Section 4.1(c) below; provided, however, that the minimum annual
royalty of Five Thousand Dollars (US$5,000.00) under this Section 4.1(b) shall be increased to Twenty Thousand Dollars (US$20,000.00) at the beginning of the calendar quarter immediately after the date of the FDA approval of a LICENSED PRODUCT.
If LICENSEE fails to pay the minimum amounts due and payable as described herein, such failure if not cured within a written notification and cure period of 30 days shall be considered a material breach of this Agreement, and FHCRC may, at its sole
discretion, terminate this Agreement upon written notice. Within [***] following each [***], LICENSEE will deliver to FHCRC a written progress report as to LICENSEE’S (and any sublicensee’s) efforts and accomplishments during the preceding
[***] in [***] commercializing the Patent Rights, know-how and LICENSED PRODUCTS in the LICENSED TERRITORY, and LICENSEE’S (and sublicensees’) commercialization plans for the upcoming [***]. 

 

	 	(c)	During the term of this AGREEMENT, a running royalty equal to [***] of LICENSEE’s and any and all sublicensee(s)’ annual aggregate NET SALES, such annual aggregate NET SALES being calculated on a [***] basis.
No multiple royalties shall be payable to FHCRC because a LICENSED PRODUCT is covered by more than one claim in any patent application or patent included in the PATENT RIGHTS; and 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -8- 

	 	(d)	[***] Membership Units of LICENSEE’s outstanding Member Units (“Member Units”), which represents [***] of LICENSEE’s outstanding equity as of the close of the EQUITY FINANCING; and 

 

	 	(e)	During the term of this AGREEMENT, [***] of all non-royalty consideration, other than payments for research, development, LICENSED PRODUCT, and reimbursement of expenses (e.g., patenting and other costs) (“NET
CONSIDERATION”), received by LICENSEE prior to [***] and [***] of all NET CONSIDERATION, received by LICENSEE after [***], from any sublicensee pursuant to Sections 3.3 and 3.4 hereinabove, including, but not limited to, up-front payments,
marketing, distribution, franchise, option, license, or documentation fees, and bonus and milestone payments. Notwithstanding the above, in recognition of the fact that FHCRC and Licensee have entered into multiple license agreements relating to
Licensed Products (i.e., this Agreement, the 2012 LICENSE and the 2013 LICENSE), FHCRC agrees that (a) any NET CONSIDERATION (as defined in this AGREEMENT and the 2012 LICENSE) paid by LICENSEE to FHCRC pursuant to this AGREEMENT and/or the
2012 LICENSE shall be fully creditable against any REMUNERATION due to FHCRC under the 2013 LICENSE, and (b) in no event shall LICENSEE be obligated to pay to FHCRC more than an aggregate of [***] with respect to any and all (i) NET
CONSIDERATION (subject to this AGREEMENT and/or the 2012 LICENSE), and/or (ii) REMUNERATION (subject to the 2013 LICENSE). 

  

	 	(f)	 Notwithstanding any provision in Section 4.1 hereof or elsewhere in this Agreement to the contrary, LICENSEE shall be entitled to reduce payments
otherwise required 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -9- 

	 	
pursuant to Sections 4.1(c) or 4.1(e) hereof pursuant to actual amounts paid by LICENSEE under Sections 4.5. Any amounts setoff or offset that are not actually setoff or offset against a
particular payment amount will be carried forward to the next royalty payment period. 

  

	4.2	Unless otherwise provided, all such payments are payable within [***] after [***] of each [***] during the term of this AGREEMENT, at which time LICENSEE will also deliver to FHCRC a true and accurate report, giving
such particulars of the business conducted by LICENSEE and its sublicensees, if any exist, during the preceding [***] under this AGREEMENT as necessary for FHCRC to account for LICENSEE’s payments hereunder. This report will include pertinent
data, including, but not limited to: 

  

	 	 	[***] 

 Simultaneously with the delivery of each such report, LICENSEE agrees to pay FHCRC the
amount due, if any, for the period of such report. After the first NET SALES of a LICENSED PRODUCT, these reports are required even if no payments are due. 
  

	4.3	 During the term of this AGREEMENT and for [***] thereafter, LICENSEE agrees to keep complete and accurate records of its and its sublicensees’
SALES and NET SALES in sufficient detail to enable the royalties and other payments due hereunder to be determined. LICENSEE agrees to permit an independent certified public accountant, reasonably acceptable to LICENSEE, to periodically examine, at
FHCRC’s expense and not more frequently than [***], the pertinent portions of LICENSEE’s books, ledgers, and records during regular business hours for the purpose of and to the extent necessary to verify any report required under this
AGREEMENT within the last [***]. Such accountant shall not disclose to FHCRC any information other than information relating to the accuracy of reports 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -10- 

	 	
and calculations of amounts due FHCRC under this AGREEMENT and shall be subject to the terms of Article X, which it shall confirm in writing. If any amounts due FHCRC are ultimately determined to
have been underpaid in an amount equal to or greater than [***] of the total amount due during the period so examined, then LICENSEE will pay the cost of the examination plus [***]. 

 

	4.4	Within [***] following [***], LICENSEE will deliver to FHCRC a written progress report as to LICENSEE’s (and any sublicensee’s) efforts and accomplishments during [***] in diligently commercializing LICENSED
SUBJECT MATTER in the LICENSED TERRITORY and LICENSEE’s (and sublicensees’) commercialization plans for [***]. 

  

	4.5	 If LICENSEE or any of its SUBLICENSEEs (i) is or becomes a party to a bona fide license agreement with a non-AFFILIATE THIRD PARTY, or
(ii) is a party to a bona fide license agreement with FHCRC pursuant to a separate written agreement entered on or before November 19, 2014 (each such third party or FHCRC, as the case may be, a “STACKING LICENSOR”) for the right
or license to a product or process under which LICENSEE is obligated to pay to such STACKING LICENSOR a royalty which is based on a royalty rate applied to LICENSED PRODUCTS sold in particular territories, LICENSEE or any SUBLICENSEE may offset
[***] of any royalties it pays to such STACKING LICENSOR against up to [***] of the royalties owed FHCRC under this AGREEMENT; provided, however, that the minimum annual royalty paid to FHCRC under this AGREEMENT notwithstanding the application of
offsets under this Section 4.5 will be [***] on annual aggregate NET SALES, and provided further that any such STACKING LICENSOR payment offsets arising out of third party license agreements executed prior to January 2,

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -11- 

	 	
2012 (“PRE-SIGNING THIRD PARTY LICENSE AGREEMENTS”), will be limited to the extent necessary to reflect an aggregate royalty rate on aggregate net sales under all such PRE-SIGNING THIRD
PARTY LICENSE AGREEMENTS of no greater than [***]. Any STACKING LICENSOR payments that may be applied as offsets as described above that are not applied in a given period may be carried forward until applied. 

 

	4.6	All amounts payable hereunder by LICENSEE will be paid in immediately available United States funds without deductions for assessments, fees, or charges of any kind, except tax withholding required by law and as
provided herein. Checks are to be made payable to Fred Hutchinson Cancer Research Center. Conversion of foreign currency to U.S. Dollars shall be made at the exchange rate on the last business day of the reporting period to which a payment relates,
as quoted in The Wall Street Journal (Western Edition). If the foreign currency cannot be converted to U.S. Dollars and exported from a country for any reason, LICENSEE shall notify FHCRC in writing and any payment shall be deposited promptly in a
recognized financial institution in that country for the benefit of FHCRC. 

  

	4.7	[***]. 

  

	4.8	If LICENSEE fails to make any payment due under this AGREEMENT within [***] of the date upon which such payment is due, then interest shall accrue on such payment from the date such payment was originally due at a rate
equal to [***] above the then-applicable prime commercial lending rate reported in the Wall Street Journal (or any similar daily business publication), or at the maximum rate permitted by applicable law, whichever is the lower
(“INTEREST”). 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -12- 

 V. PATENTS AND INVENTIONS 

 

	5.1	Inventions. 

  

	 	(a)	The LICENSED PRODUCTS and the entire right, title and interest in and to all discoveries, improvements, processes, formulas, data, inventions, enhancements, know-how and trade secrets, patentable or otherwise, that
arise from activities under this AGREEMENT or that are necessary or useful in connection with obtaining regulatory approval, manufacture, marketing, promotion, sale, import or export of LICENSED PRODUCTS, and that were or are solely developed or
invented by LICENSEE (“LICENSEE INVENTIONS”) shall be owned solely by LICENSEE (except for any LICENSED SUBJECT MATTER or LICENSED SUBJECT MATTER INVENTION), and FHCRC shall not acquire any right, title, and interest in or to any
LICENSED PRODUCTS and LICENSEE INVENTIONS. 

  

	 	(b)	 In the event that FHCRC or LICENSEE intends to apply for a new patent application with respect to any developments, discoveries, and inventions that
are substantially based on the LICENSED SUBJECT MATTER, such party shall notify the other party and LICENSEE may elect to prepare and file appropriate patent applications if after consultation between LICENSEE and FHCRC both parties agree that a new
patent application (“LICENSED SUBJECT MATTER INVENTION”) should be filed. The entire right, title and interest in and to all discoveries, improvements, processes, formulas, data, inventions, enhancements, know-how and trade secrets,
patentable or otherwise, with respect to the LICENSED SUBJECT MATTER INVENTION that were or are developed or invented: (i) solely by employees or contractors of LICENSEE shall be owned jointly by LICENSEE and FHCRC; (ii) solely by

  
 -13- 

	 	
employees or contractors (excluding LICENSEE) of FHCRC shall be owned solely by FHCRC; and (iii) jointly by employees or contractors of LICENSEE and FHCRC shall be owned jointly by LICENSEE
and FHCRC. If LICENSEE elects to prepare and file such patent application, (i) LICENSEE will control and pay [***], (ii) LICENSEE will provide FHCRC with a copy of such application for which LICENSEE has paid [***], as well as copies of
any documents received or filed during prosecution thereof, and (iii) Exhibit A of this Agreement shall be amended to include the LICENSED SUBJECT MATTER INVENTION. If LICENSEE notifies FHCRC that it does not intend to pay [***], or if LICENSEE
does not respond to FHCRC within [***] after consultation with LICENSEE on the disposition of rights of the subject invention, then FHCRC, after [***] prior written notice to LICENSEE, may file such application [***]. In addition, LICENSEE will have
the right to control and pay [***] all other patent applications and patents included in the PATENT RIGHTS. FHCRC shall cooperate with LICENSEE in prosecuting, maintaining and defending the PATENT RIGHTS and shall cause its employees and agents to
execute such documents and perform such acts as are reasonably requested by LICENSEE in connection therewith. The parties agree that they share a common legal interest to obtain valid enforceable patents and that each party will keep all privileged
or confidential information of the other party received pursuant to this Section confidential in accordance with Article X. 

VI. INFRINGEMENT ACTIONS 
  

	6.1	 LICENSEE [***] shall have the first right, but not the obligation, to enforce any patent exclusively licensed hereunder against infringement by THIRD
PARTIES (“PATENT 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -14- 

	 	
ENFORCEMENT ACTION”). After reimbursement of LICENSEE’s [***] legal costs and expenses related to such enforcement, LICENSEE agrees to pay FHCRC either: (a) the royalty detailed in
Section 4.1(c) for any monetary recovery that is for sales of LICENSED PRODUCTS lost due to the infringement and [***] of related punitive damages; or (b) [***] of reasonable royalties awarded and related punitive damages in any recovery
in which the award is for reasonable royalties. LICENSEE must notify FHCRC in writing of any potential infringement within [***] of knowledge thereof. If LICENSEE does not file suit against a substantial infringer within [***] of knowledge thereof,
then FHCRC may, at its sole discretion, enforce any patent licensed hereunder on behalf of itself and LICENSEE, and after reimbursement of FHCRC’s reasonable legal costs and expenses related to such enforcement, the balance of any recovery
shall be distributed as follows: [***] to FHCRC and [***] to LICENSEE. In any suit or dispute involving an infringer of the PATENT RIGHTS, the parties agree to cooperate fully with each other. At the request and expense of the party bringing suit,
the other party will permit access during regular business hours, to all relevant personnel, records, papers, information, samples, specimens, and the like in its possession and agrees to be joined in such suit, if requested or required by
applicable law. 

  

	6.2	 In the event that a THIRD PARTY institutes a patent, trade secret, trademark or other infringement suit against LICENSEE or its AFFILIATES or
sublicensees during the term of this AGREEMENT, alleging that the practice by LICENSEE of the LICENSED SUBJECT MATTER in the exercise of its rights as licensee under this AGREEMENT infringes one or more patent, trademark, trade secret or other
intellectual property rights held by such THIRD PARTY (an “INFRINGEMENT SUIT”), then (i) as between LICENSEE and FHCRC, LICENSEE shall assume direction and control of the defense of claims arising therefrom

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -15- 

	 	
(including the right to settle such claims at its sole discretion), and (ii) LICENSEE may withhold and deposit into an interest-bearing escrow account [***] of all amounts that LICENSEE
would otherwise be obligated to pay to FHCRC pursuant to Article IV (the “ESCROWED AMOUNT”), and LICENSEE’S payment obligations to FHCRC under Article IV shall be reduced accordingly, until such time as a final, non-appealable
judgment is rendered with respect to such INFRINGEMENT SUIT by a court of competent jurisdiction, or the time permitted for appeal of a final, appealable judgment has lapsed (the “FINAL JUDGMENT”). If FINAL JUDGMENT is rendered in favor of
LICENSEE (or its AFFILIATES or sublicensees, as the case may be), then LICENSEE shall pay to FHCRC, within [***] after the entry of such judgment, the full amount of the ESCROWED AMOUNT and, after reimbursement of LICENSEE’s reasonable legal
costs and expenses related to such action, the balance of any award (except for the balance of any recovery under a PATENT ENFORCEMENT ACTION which shall be distributed pursuant to Section 6.1 hereof) that LICENSEE actually receives with
respect to such INFRINGEMENT SUIT shall be distributed as follows: [***] to LICENSEE and [***] to FHCRC. If the FINAL JUDGMENT is rendered partially or entirely in favor of such THIRD PARTY, then LICENSEE may apply the ESCROWED AMOUNT to the payment
of its defense costs in connection with such INFRINGEMENT SUIT and to the payment of any award it is required to pay pursuant to such FINAL JUDGMENT. If the ESCROWED AMOUNT exceeds such defense costs and award then LICENSEE, within [***] following
the date of the FINAL JUDGMENT, shall remit to FHCRC the amount of such excess. If the ESCROWED AMOUNT does not equal or exceed the amount of such defense costs and award, then from and after the date of the FINAL JUDGMENT, LICENSEE shall be
entitled to withhold [***] 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -16- 

	 	
of all amounts that LICENSEE would otherwise be required to pay to FHCRC pursuant to Article IV until such time as the aggregate amounts so withheld plus the ESCROWED AMOUNTS equals the amount of
such defense costs and award. In the event that a THIRD PARTY institutes a patent, trademark, trade secret or other infringement suit against LICENSEE or its AFFILIATES or sublicensees during the term of this AGREEMENT, FHCRC shall use, and shall
cause its AFFILIATES and any THIRD PARTIES owning relevant FHCRC patents to use commercially reasonable efforts to assist and cooperate with LICENSEE in connection with the defense of such suit. 

VII. PATENT MARKING 
  

	7.1	LICENSEE agrees that all packaging containing individual LICENSED PRODUCT(S), documentation therefor and, when possible, for actual LICENSED PRODUCT(S) sold by LICENSEE, AFFILIATES, and/or sublicensees of LICENSEE will
be permanently and legibly marked with the number of any applicable patent(s) licensed hereunder in accordance with each country’s patent laws, including Title 35, United States Code. 

 

	7.2	LICENSEE shall have the right to determine appropriate trademark, trade dress, and other related intellectual property usage in connection with marketing LICENSED PRODUCTS under this AGREEMENT. LICENSEE shall have the
exclusive right to use any trademarks in connection with marketing LICENSED PRODUCTS under this AGREEMENT in the LICENSED TERRITORY. 

VIII. INDEMNIFICATION AND INSURANCE 
  

	8.1	 LICENSEE hereby agrees to defend, hold harmless; and indemnify—FHCRC and its agents, directors, officers and employees (the “FHCRC
INDEMNITEES”) from and against any and all suits, claims, actions, demands, liabilities, expenses and/or losses, including, without 

  
 -17- 

	 	
limitation, reasonable legal expenses and attorneys’ fees (collectively “LOSSES”) resulting directly or indirectly from a claim with respect to: [***]. The foregoing
indemnification obligations will not apply in the event and to the extent that such LOSSES arose as a result of [***]. FHCRC shall promptly notify LICENSEE of any such LOSSES and allow LICENSEE to handle and control the defense thereof. LICENSEE
shall have the sole right to settle such LOSSES, but no settlement shall be made that does not include an unconditional release without FHCRC’s prior written consent. 

 

	8.2	Except with respect to indemnification and confidentiality obligations by FHCRC and LICENSEE hereunder, in no event shall either party be liable to the other party for any indirect, special, consequential, or punitive
damages-arising out of, or in connection with, this AGREEMENT or its subject matter, regardless of whether the other party knows or should know of the possibility of such damages. 

 

	8.3	Beginning at the time when any LICENSED SUBJECT MATTER is being used in human clinical trials or SOLD by LICENSEE, an AFFILIATE or a sublicensee, LICENSEE shall, at its sole cost and expense, procure and maintain
commercial general liability insurance in amounts not less than [***], and LICENSEE shall use reasonable commercial efforts to have the FHCRC, its directors, officers, employees, contractors, representatives and agents named as additional insureds.
Such commercial general liability insurance shall provide: (i) product liability coverage; (ii) broad form contractual liability coverage for LICENSEE’s indemnification under this AGREEMENT; and (iii) coverage for litigation
costs. The minimum amounts of insurance coverage required herein shall not be construed to create a limit of LICENSEE’s liability with respect to its indemnification under this AGREEMENT. The insurance requirements under this Section 8.3
may be satisfied by self insurance commensurate with reasonable standards of the industry. 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -18- 

	8.4	LICENSEE shall provide FHCRC with written evidence of such insurance within [***] of its procurement. Additionally, LICENSEE shall provide FHCRC with written notice of at least [***] prior to the cancellation,
non-renewal or material change in such insurance. If LICENSEE does not provide FHCRC with written evidence of such insurance, LICENSEE may elect to self-insure all or part of the limits described above provided that such self-insurance program is
acceptable to FHCRC. 

  

	8.5	LICENSEE shall maintain such commercial general liability insurance beyond the expiration or termination of this AGREEMENT during: (i) the period that any LICENSED SUBJECT MATTER developed pursuant to this
AGREEMENT is being commercially distributed or sold by LICENSEE or by a sublicensee or agent of LICENSEE; and (ii) the [***] period immediately after such period. 

IX. USE OF FHCRC’S NAME 
  

	9.1	LICENSEE will not use the name of (or the name of any employee of) FHCRC in any advertising, promotional or sales literature, or on its Web site, without the advance express written consent of FHCRC. 

Notwithstanding the above, LICENSEE may use the name of (or name of employee of) FHCRC in routine business correspondence, disclosure documents
and company descriptions describing the fact that a licensing relationship exists, or as required under applicable law or regulations, without FHCRC’s express written consent. 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -19- 

 X. CONFIDENTIAL INFORMATION AND PUBLICATION 

 

	10.1	FHCRC and LICENSEE each agree that all information contained in documents marked “confidential” and forwarded to one by the other (i) are to be received in strict confidence, (ii) are to be used only
for the purposes of this AGREEMENT, and (iii) will not be disclosed by the recipient party (except as required by law or court order), its agents or employees without the prior written consent of the other party; provided, however, LICENSEE may
disclose and use, and will not be required to maintain as confidential, the PATENT RIGHTS and TECHNOLOGY RIGHTS in connection with the exercise of its license rights hereunder, and subject to obligations of confidentiality and non-use no less
stringent than set forth herein, LICENSEE may disclose the PATENT RIGHTS, TECHNOLOGY RIGHTS and related FHCRC information to present and prospective investors, lenders, sublicensees, consultants and advisors. The foregoing obligations shall not
apply to the extent that the recipient party can establish by competent written proof that such information: 

  

	 	(a)	was in the public domain at the time of disclosure; or 

  

	 	(b)	later became part of the public domain through no act or omission of the recipient party, its employees, agents, successors or assigns; or 

 

	 	(c)	was lawfully disclosed to the recipient party by a THIRD PARTY having the right to disclose it; or 

  

	 	(d)	was already known by the recipient party at the time of disclosure; or 

  

	 	(e)	was independently developed by the recipient party without use of the other party’s confidential information. 

If the recipient party is required by law to disclose confidential information owned or disclosed to it by the other party including, without
limitation, by discovery, subpoena or 

  
 -20- 

 
other legal or administrative process, the recipient party agrees to provide the other party prompt notice of the required disclosure to permit the other party, at its option and expense, to seek
an appropriate protective order or waive the requirements of this AGREEMENT. If no protective order or waiver is obtained, such disclosure may be made but only to the extent legally required. The recipient party will not oppose any action by the
other party to obtain an appropriate protective order or other assurance that confidential information which must be disclosed will be accorded confidential treatment. 
  

	10.2	Each party’s obligation of confidence hereunder will be fulfilled by using at least the same degree of care with the other party’s confidential information as it uses to protect its own confidential
information, but always at least a reasonable degree of care. This obligation will exist while this AGREEMENT is in force and for a period of [***] thereafter. 

  

	10.3	FHCRC reserves the right to publish the general scientific findings from research related to LICENSED SUBJECT MATTER, but not LICENSEE’s confidential information. FHCRC will submit the manuscript of any proposed
publication to LICENSEE at least [***] before publication, and LICENSEE shall have the right to review and comment upon the publication in order to protect LICENSEE’s confidential information and the patentability of any inventions disclosed
therein. Upon LICENSEE’s request, publication may be delayed up to [***] additional [***] to enable LICENSEE to secure adequate intellectual property protection of any PATENT RIGHTS contained therein that would otherwise be affected by the
publication. 

 XI. ASSIGNMENT 
  

	11.1	 Except in connection with the sale of all or substantially all of LICENSEE’s assets to a THIRD PARTY or a merger, consolidation or reorganization
of LICENSEE, this 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -21- 

	 	
AGREEMENT may not be assigned by LICENSEE to other than an AFFILIATE without the prior written consent of FHCRC, which will not be unreasonably withheld, conditioned, or delayed. This AGREEMENT
may not be assigned by FHCRC without the prior written consent of LICENSEE. 

 XII. TERM AND TERMINATION 

 

	12.1	Subject to early termination as provided hereinbelow, the term of this AGREEMENT is from the EFFECTIVE DATE to the last expiration date of any patents included in the PATENT RIGHTS. After expiration of this AGREEMENT,
LICENSEE’s rights to the TECHNOLOGY RIGHTS hereunder shall become nonexclusive and fully paid up. 

  

	12.2	Any time after one hundred eighty (180) days from the EFFECTIVE DATE, FHCRC has the right to terminate the license granted under this AGREEMENT if LICENSEE, within ninety (90) calendar days after receiving
written notice from FHCRC of the intended termination, fails to provide written evidence reasonably satisfactory to FHCRC that LICENSEE has obtained, in the aggregate, gross proceeds of [***] of EQUITY FINANCING; provided, however, that
LICENSEE’s obligation to obtain such amount of EQUITY FINANCING shall be deemed fulfilled and FHCRC’s right to terminate under this Section 12.2 shall be void so long as LICENSEE obtains at least [***] of EQUITY FINANCING within one
hundred eighty (180) days from and including the EFFECTIVE DATE. 

  

	12.3	 Any time after December 31, 2013, FHCRC has the right to terminate the license granted under this AGREEMENT if LICENSEE, within ninety
(90) calendar days after receiving written notice from FHCRC of the intended termination, fails to provide written evidence reasonably satisfactory to FHCRC that, in addition to the [***] of EQUITY FINANCING under Section 12.2 hereof,
LICENSEE has obtained, in the aggregate, gross proceeds of 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -22- 

	 	
[***] of EQUITY FINANCING; provided, however, that LICENSEE’s obligation to obtain such amount of EQUITY FINANCING shall be deemed fulfilled and FHCRC’s right to terminate under this
Section 12.3 shall be void so long as LICENSEE obtains at least [***] of EQUITY FINANCING prior to FHCRC validly exercising its right to terminate under this Section 12.3. 

 

	12.4	Any time after June 30, 2015, FHCRC has the right to terminate the license granted under this AGREEMENT if LICENSEE, within ninety (90) calendar days after receiving written notice from FHCRC of the intended
termination, fails to provide satisfactory written evidence that LICENSEE has properly submitted an Investigational New Drug (ND) application to the U.S. Food and Drug Agency. 

 

	12.5	Notwithstanding anything to the contrary contained in this AGREEMENT, LICENSEE shall have the right to terminate this AGREEMENT or any portion of the license hereunder at any time upon sixty (60) days’ written
notice to FHCRC. Subject to any rights herein which survive termination, this AGREEMENT will terminate in its entirety: 

  

	 	(a)	if LICENSEE shall file in any court or agency pursuant to any statute or regulation of any state, country or jurisdiction, a petition in bankruptcy or insolvency or for reorganization or for an arrangement or for the
appointment of a receiver or trustee of LICENSEE or of its assets, or if LICENSEE shall be served with an involuntary petition against it, filed in any insolvency proceeding, and such petition shall not be dismissed within [***] after the filing
thereof; or 

  

	 	(b)	upon thirty (30) calendar days’ written notice from FHCRC, if LICENSEE breaches or defaults on any obligations under Article IV, unless, before the end of such thirty (30) calendar day notice period,
LICENSEE has cured the default or breach and so notifies FHCRC, stating the manner of the cure; or 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -23- 

	 	(c)	upon ninety (90) calendar days’ written notice from FHCRC, if LICENSEE breaches or defaults on any other material obligation under this AGREEMENT, unless before the end of the such ninety (90) calendar
day notice period, LICENSEE has cured the default or breach and so notifies FHCRC, stating the manner of the cure; or 

  

	 	(d)	at any time by mutual written agreement between LICENSEE and FHCRC subject to any terms herein which survive termination; or 

  

	 	(e)	if any of FHCRC’s termination rights provided under Sections 12.2, 12.3, or 12.4 hereof are exercised by FHCRC. 

  

	12.6	Upon expiration or termination of this AGREEMENT: 

  

	 	(a)	nothing herein will be construed to release either party from any obligation maturing prior to the effective date of the termination; and 

 

	 	(b)	LICENSEE covenants and agrees to be bound by the provisions of Articles VIII (Indemnification and Insurance), IX (Use of FHCRC’s Name) and X (Confidential Information and Publication) and agrees that such
obligations survive expiration or termination of this AGREEMENT. FHCRC covenants and agrees to be bound by the provisions of Article X (Confidential Information and Publication) and the nonexclusive license described in Section 12.1 upon
expiration and agrees that such obligations survive expiration or termination of this AGREEMENT; and 

  

	 	(c)	LICENSEE may, after the effective date of the termination or expiration of this AGREEMENT, sell all LICENSED PRODUCTS and parts therefor that it has on hand at the date of termination, if LICENSEE pays the earned
royalty thereon and any other amounts due pursuant to Article N and otherwise complies with the terms of this AGREEMENT; and 

  
 -24- 

	 	(d)	Subject to Section 12.5(c), LICENSEE agrees to cease and desist any and all use of the LICENSED SUBJECT MATTER upon termination of this AGREEMENT; and 

 

	 	(e)	Upon termination, but not expiration, of this AGREEMENT, LICENSEE will grant to FHCRC a nonexclusive, nontransferable, nonsublicenseable, royalty bearing license with respect to improvements made by LICENSEE based
solely on the LICENSED SUBJECT MATTER, provided that FHCRC agrees to pay a [***] (including any third-party fees and royalties associated with such improvements), which LICENSEE and FHCRC agree to negotiate in good faith for the nonexclusive,
nontransferable, nonsublicenseable, license. 

 XIII. SUPERIOR-RIGHTS; REPRESENTATIONS AND WARRANTIES 

 

	13.1	Except for the rights, if any, of the Government of the United States of America as set forth below, FHCRC represents and warrants that [***] (a) the entire right, title, and interest in and to LICENSED SUBJECT
MATTER have been assigned to FHCRC or to City of Hope, (b) it has the authority to grant licenses for the LICENSED SUBJECT MATTER hereunder, and (c) FHCRC has not granted licenses to any THIRD PARTY that would restrict rights granted
hereunder except as stated herein. The LICENSED SUBJECT MATTER that has been assigned to City of Hope is identified on Exhibit B. [***]. 

  

	13.2	 LICENSEE understands that the LICENSED SUBJECT MATTER may have been developed under a funding agreement with the Government of the United States of
America (“Government”) and, if so, that the Government may have certain rights relative thereto. This AGREEMENT is explicitly made subject to the Government’s rights under any such

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -25- 

	 	
agreement and any applicable law or regulation, including P.L. 96-517 as amended by P.L. 98-620. To the extent that there is a conflict between any such agreement, applicable law or regulation
and this AGREEMENT, the terms of such Government agreement, applicable law or regulation shall prevail. LICENSEE agrees that any LICENSED PRODUCTS subject to 35 U.S.C. § 204 that are used or SOLD in the United States will be manufactured
substantially in the United States, unless a written waiver is obtained in advance from the Government. 

  

	13.3	LICENSEE understands and agrees that FHCRC, by this AGREEMENT, makes no representation as to the operability or fitness for any use, safety, efficacy, approvability by regulatory authorities, time and cost of
development, patentability, and/or breadth of the LICENSED SUBJECT MATTER. 

  

	13.4	LICENSEE, by execution hereof, acknowledges, covenants and agrees that LICENSEE has not been induced in any way by FHCRC or employees thereof to enter into this AGREEMENT, and further warrants and represents that
(a) LICENSEE has conducted sufficient due diligence with respect to all items and issues pertaining to this AGREEMENT and (b) LICENSEE has adequate knowledge and expertise, or has used knowledgeable and expert consultants, to adequately
conduct such due diligence, and agrees to accept all risks inherent herein. 

  

	13.5	 Each party hereby represents and warrants to the other party that: (a) it is duly organized, validly existing and in good standing under the laws
of the jurisdiction in which it is organized, and has full power and authority and the legal right to own and operate its property and assets and to carry on its business as it is now being conducted and as contemplated in this AGREEMENT;
(b) it has the power and authority and the legal right to 

  
 -26- 

	 	
enter into this AGREEMENT and perform its obligations hereunder; it has taken all necessary action on its part required to authorize the execution and delivery of this AGREEMENT and the
performance of its obligations hereunder; and this AGREEMENT has been duly executed and delivered on behalf of such party, and constitutes a legal, valid and binding obligation of such party that is enforceable against it in accordance with its
terms; (c) it has not entered, and will not enter, into any agreement with any THIRD PARTY that is in conflict with the rights granted to the other party under this AGREEMENT, and has not taken and will not take any action that would in any way
prevent it from granting the rights granted to the other party under this AGREEMENT, or that would otherwise materially conflict with or adversely affect the rights granted to the other party under this AGREEMENT; and (d) its performance and
execution of this AGREEMENT will not result in a breach of any other contract to which it is a party. 

  

	13.6	 FHCRC represents and warrants that: (a) FHCRC has not taken any action or omission to encumber any of its right, title and interest in and to the
LICENSED SUBJECT MATTER in any way that would have a material adverse effect on the rights and licenses granted to LICENSEE hereunder; (b) the issued patents set forth on Exhibit A are currently valid and have not expired; (c) FHCRC has
sufficient rights in and to the PATENT RIGHTS and TECHNOLOGY RIGHTS to grant the rights set forth in this AGREEMENT to LICENSEE; (d) as of the EFFECTIVE DATE, [***] there is not pending or, threatened in writing, any claim or litigation to
which FHCRC is a party contesting the ownership, derivation, inventorship, validity or right to use any of the LICENSED SUBJECT MATTER; (e) as of the EFFECTIVE DATE, [***] FHCRC has not received any written notice of infringement with respect
to the exercise of the LICENSED SUBJECT MATTER; and (f) as of the 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -27- 

	 	
EFFECTIVE DATE, [***] FHCRC has not received written notice of any third party assertion that the PATENT RIGHTS are invalid. HOWEVER, FHCRC, INCLUDING THE VICE PRESIDENT OF INDUSTRY
RELATIONS & TECHNOLOGY TRANSFER, HAS MADE NO SPECIAL INVESTIGATION INTO SUCH MATTERS AND MAKES NO WARRANTY OR REPRESENTATION AGAINST MISAPPROPRIATION OR INFRINGEMENT. 

XIV. GENERAL 
  

	14.1	This AGREEMENT (including the Exhibits hereto), as amended and restated, together with the RESEARCH AGREEMENT constitutes the entire and only agreement between the parties relating to the LICENSED SUBJECT MATTER, and
all other prior negotiations, representations, agreements and understandings are superseded hereby. No agreements altering or supplementing the terms hereof will be made except by a written document signed by both parties. 

 

	14.2	Any notice required by this AGREEMENT must be given in writing by prepaid, first class, certified mail, return receipt requested, and addressed in the case of FHCRC to: 

Fred Hutchinson Cancer Research Center 

Industry Relations and Technology Transfer 

1100 Fairview Ave., N, J5-110 

Seattle, WA 98109-1024 

ATTENTION: Vice President for Technology Transfer 

with a copy to: 
 Fred Hutchinson
Cancer Research Center 
 Industry Relations and Technology Transfer 

1100 Fairview Ave., N, J5-110 

Seattle, WA 98109-1024 

ATTENTION: Vice President and General Counsel 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -28- 

 or in the case of LICENSEE to: 

Juno Therapeutics, Inc. 
 307
Westlake Avenue North 
 Suite 300 

Seattle, WA 98109 
 ATTENTION:
General Counsel 
 or other addresses as may be given from time to time under the terms of this notice provision. 

 

	14.3	LICENSEE must comply with all applicable federal, state and local laws and regulations in connection with its activities pursuant to this AGREEMENT. 

 

	14.4	This AGREEMENT shall be governed by, construed and enforced in accordance with the internal laws of the State of Washington, without giving effect to principles and provisions thereof relating to conflict or choice of
laws irrespective of the fact that any one of the parties is now or may become a resident of a different state. 

  

	14.5	Any dispute, controversy, or claim arising out of or relating to this AGREEMENT or the interpretation, enforceability, performance, breach, termination, or validity hereof, including, without limitation, this Section
(each, a “Dispute”), shall be resolved as follows. If the parties are unable to initially resolve a Dispute through consultation and negotiations between the parties, any party may proceed to litigation in accordance with this AGREEMENT.

  

	14.6	No omission or delay on the part of either party hereto in requiring due and punctual fulfillment of the obligations of the other party shall be deemed to constitute a waiver of any of the rights of the omitting or
delaying party unless such rights are waived in the particular instance in a writing delivered to the other party, and no such waiver shall apply to any other instance or obligation. The terms and conditions of this AGREEMENT shall inure to the
benefit of and shall be binding upon the permitted successors and assigns of the parties, and no signature or other indication of assent by any such person shall be required as a prerequisite to enforceability. 

  
 -29- 

	14.7	If any provision of this AGREEMENT is held to be invalid or unenforceable to any extent in any context, it shall nevertheless be enforced to the maximum extent allowed by law and the parties’ fundamental intentions
in that and other contexts, and the remainder of this AGREEMENT shall not be affected thereby. 

  

	14.8	The prevailing party in any action to enforce this AGREEMENT shall be reimbursed or paid by the other party for its [***] incurred in connection with such enforcement. 

 

	14.9	This AGREEMENT shall not be subject to nor governed by the United Nations Convention on Contracts for the International Sale of Goods and it shall not apply to any portion of this AGREEMENT. 

 

	14.10	In the event of any inconsistency between the terms of this AGREEMENT and any other agreement between the parties, this AGREEMENT shall govern. The parties acknowledge that they have had an opportunity to consult with
their respective counsel and with such other experts or advisors as they have deemed necessary in connection with the negotiation, execution and delivery of this AGREEMENT. This AGREEMENT shall be construed without any presumption or rule requiring
that it might be construed against the party causing this AGREEMENT, or any part of it to be drafted. 

  

	14.11	This AGREEMENT may be executed in two (2) or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 

 

	14.12	 LICENSEE shall comply, and cause its AFFILIATES, contractors, representatives, agents and sublicensees to comply with the Export Laws. LICENSEE shall
not export or re-export directly or indirectly (including via remote access) any part of the PATENT RIGHTS, 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -30- 

	 	
TECHNOLOGY RIGHTS, LICENSED PRODUCTS or any confidential information to any applicable jurisdiction to which a license is required under the Export Laws without first obtaining a license. As used
herein, “Export Laws” means all laws, administrative regulations and executive orders of any Applicable Jurisdiction relating to the control of imports and exports of commodities and technical data, use or remote use of software and
related property, or registration of this AGREEMENT, including the Export Administration Regulations of the U.S. Department of Commerce, the International Traffic in Arms Regulations of the U.S. Department of State, and the Enhanced Proliferation
Control Initiative. “Applicable Jurisdiction” means the U.S. and any other jurisdiction where any items will reside or be located, or from where any items may or will be accessed under this AGREEMENT. 

 

	14.13	Headings included herein are for convenience only and will not be used to construe this AGREEMENT. 

  

	14.14	If either party is prevented from carrying out its obligations under this AGREEMENT by events or circumstances beyond its reasonable control, including acts or omissions of the other party, acts of God or government,
fire, flood, acts of terrorism, political strife, labor disputes, failure or delay of transportation, default by suppliers or unavailability of raw materials, then such party’s performance of its obligations hereunder shall be excused during
the period of such events or circumstances and for a reasonable period of recovery thereafter, provided that the party claiming delay shall as promptly as practical notify the other party of the existence of such events or circumstances.

  

	14.15	 Subject to the terms of this AGREEMENT, the activities and resources of LICENSEE and FHCRC shall be managed by such party, acting independently and in
its individual capacity. 

  
 -31- 

	 	
The relationship between LICENSEE and FHCRC is that of independent contractors, and neither party shall have the power to bind or obligate the other party in any manner, other than as is
expressly set forth in this AGREEMENT. 

  
 -32- 

 IN WITNESS WHEREOF, the parties hereto have caused their duly authorized representatives to
execute this AGREEMENT. 
  

									
	FRED HUTCHINSON CANCER	 		 	LICENSEE
	RESEARCH CENTER	 		 	
	A NONPROFIT CORPORATION	 		 	
					
	By	 	 /s/ Richard Mitchell
	 		 	By	 	 /s/ Hans Bishop

					
	Name:	 	 Richard Mitchell
	 		 	Name:	 	 Hans Bishop

					
	Title:	 	 Dir. Of Business Development
	 		 	Title:	 	 President & CEO

					
	Date:	 	 Nov. 21, 2014
	 		 	Date:	 	 Nov. 21, 2014

  
 -1- 

 EXHIBIT A 

LICENSED SUBJECT MATTER 

(as of November 19, 2014) 

FHCRC’s right, title and interest in the following U.S. and ex-U.S. patents and patent applications in the LICENSED FIELD: 

 

					
	 SeedIP Ref (360056-)
	  	 Application No.

Patent No./
Publication No.
	  	 Filing Date

Publication/Issue Date

    

(MM-DD-YYYY)

			
		  	421 Family	  	
			
		  	[***]	  	
			
		  	422 Family	  	
			
		  	[***]	  	
			
		  	423 Family	  	
			
		  	[***]	  	

 All U.S. and ex-U.S. patents and patent applications, including all continuations, divisionals, patents of addition, reissues,
renewals, extensions and all foreign counterparts and continuations in part to the extent that such continuations in part contain subject matter related to any of the U.S. and ex-U.S. patents and patent applications identified above in this Exhibit
A. 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -1- 

 EXHIBIT B 

LICENSED SUBJECT MATTER CO-OWNED BY CITY OF HOPE 

(as of November 19, 2014) 
  

					
	 SeedIP Ref (360056-)
	  	 Application No.

Patent No./
Publication No.
	  	 Filing Date

Publication/Issue Date

    

(MM-DD-YYYY)

			
		  	Family 2 (422)	  	
			
		  	[***]	  	

 All U.S. and ex-U.S. patents and patent applications, including all continuations, divisionals, patents of addition, reissues,
renewals, extensions and all foreign counterparts and continuations in part to the extent that such continuations in part contain subject matter related to any of the U.S. and ex-U.S. patents and patent applications identified above in this Exhibit
B. 

  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -1- 

 EXHIBIT C 

RESEARCH WORK PLAN 
 [***] 

  
 [***] Two pages of this document
have been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 -1-

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