Document:

Guaranty, dated October 31, 2005 - Citigroup

 Exhibit 10.21 
  
 GUARANTY 
  
 GUARANTY, dated as of October 31, 2005 (the “Guaranty”), made by TABERNA REALTY FINANCE TRUST (the
“Guarantor”) in favor of CITIGROUP GLOBAL MARKETS REALTY CORP. (the “Buyer”), party to the Master Repurchase Repurchase Agreement referred to below. 
  
 RECITALS 
  
 WHEREAS, pursuant to the Master Repurchase Agreement dated as of October 31, 2005, as amended (the “Repurchase
Agreement”) between Taberna Realty Holdings Trust (the “Seller”) and the Buyer, the Buyer has agreed to enter into Transactions with the Seller upon the terms and subject to the conditions set forth therein; and 

 
 WHEREAS, it is a condition precedent to the obligation of the Buyer to
enter into any such Transaction with the Seller under the Repurchase Agreement that the Guarantor shall have executed and delivered this Guaranty to the Buyer. 
  

NOW, THEREFORE, in consideration of the premises and to induce the Buyer to enter into the Repurchase Agreement and to induce the Buyer to enter into
the Transactions with the Seller under the Repurchase Agreement, the Guarantor hereby agrees with the Buyer as follows: 
  
 1. Defined Terms. 
  
 (a) Unless otherwise defined herein, capitalized terms defined in the Repurchase Agreement and used herein shall have the meanings given to them in the
Repurchase Agreement. The following additional terms shall have the following meanings: 
  
 “Change of Control” means, with respect to the Guarantor, the acquisition by any Person, or two or more Persons acting in concert, of beneficial ownership (within the meaning of Rule 13d-3 of the
Securities and Exchange Commission under the Securities Exchange Act of 1934) of outstanding shares of voting stock of the Guarantor at any time if after giving effect to such acquisition (i) such Person or Persons owns twenty percent
(20%) or more of such outstanding voting stock or (ii) the owners of the Guarantor as of the Effective Date do not own more than fifty percent (50%) of such outstanding voting stock. 
  
 “Material Adverse Effect” shall mean a material adverse
effect on (a) the ability of the Guarantor to perform in all material respects its obligations under this Guaranty, including, but not limited to, a material adverse effect on the property, business, operations, or financial condition of the
Guarantor, (b) the validity or enforceability in all material respects of this Guaranty, (c) the rights and remedies of the Buyer under this Guaranty, or (d) the timely payment of the Obligations or all other amounts payable in
connection therewith. Each of (a), (b) and (c) in the foregoing sentence shall be determined by Buyer in its sole reasonable discretion. 

 “Obligations” shall mean the joint and several obligations and liabilities of the Seller
to the Buyer, including, without limitation, the obligations whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, or out of or in connection with the Repurchase
Agreement, the Program Documents and any other document made, delivered or given in connection therewith or herewith, whether on account of principal, interest, reimbursement obligations, all Claims (as defined in Section 101 of the Bankruptcy
Code) of the Buyer against the Seller, fees, indemnities, costs, expenses (including, without limitation, all fees and disbursements of counsel to the Buyer that are required to be paid by the Seller pursuant to the terms of the Repurchase
Agreement) or otherwise. 
  
 (b) The words “hereof,”
“herein” and “hereunder” and words of similar import when used in this Guaranty shall refer to this Guaranty as a whole and not to any particular provision of this Guaranty, and section and paragraph references are to this
Guaranty unless otherwise specified. 
  
 (c) The meanings given to
terms defined herein shall be equally applicable to both the singular and plural forms of such terms. 
  
 2. Guaranty. 
  
 (a) The Guarantor hereby, unconditionally and irrevocably, guarantees to the Buyer and its successors, indorsees, transferees and assigns, the prompt and
complete payment and performance by the Seller when due (whether at the stated maturity, by acceleration or otherwise) of the Obligations. 
  
 (b) The Guarantor further agrees to pay any and all expenses (including, without limitation, all reasonable fees and disbursements of counsel) which may
be paid or incurred by the Buyer in enforcing any rights with respect to, or collecting any or all of the Obligations and/or enforcing any rights with respect to or collecting against, the Guarantor under this Guaranty. Subject to the provisions of
Section 9 hereof, this Guaranty shall remain in full force and effect until the Obligations are paid in full notwithstanding that from time to time prior thereto the Seller may be free from any Obligations. 
  
 (c) Except for payments required to be made by the Guarantor hereunder, no
other payments shall affect the Guarantor’s liability under this Guaranty. No payment or payments made by the Seller, the Guarantor, any other guarantor or any other Person or received or collected by the Buyer from the Seller, the Guarantor,
any other guarantor or any other Person by virtue of any action or proceeding or any set-off or appropriation or application at any time or from time to time in reduction of or in payment of the Obligations shall be deemed to modify, reduce, release
or otherwise affect the liability of the Guarantor hereunder. 
  
 (d) The Guarantor agrees that whenever, at any time, or from time to time, it shall make any payment to the Buyer on account of its liability hereunder, it will notify the Buyer in writing that such payment is made under this Guaranty for
such purpose. 
  

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 3. Representations, Warranties and Covenants of Guarantor. 
  
 (a) The Guarantor hereby represents and warrants (i) that it is duly
organized and validly existing in good standing under the laws of the jurisdiction under which it is organized and is duly qualified to do business and is in good standing in every other jurisdiction as to which the nature of the business conducted
by it makes such qualification necessary, except where the failure to obtain such qualification would not cause a Material Adverse Effect, (ii) that it has all requisite corporate power, authority and legal right to execute, deliver and perform
its obligations under this Guaranty, (iii) that the execution, delivery and performance of this Guaranty by it have been duly authorized by all necessary corporate action, are not in contravention of law, and will not conflict with or result in
a breach of the terms of its articles of incorporation, by-laws, or any agreement, instrument, indenture or other undertaking to which it is a party or by which it is bound, (iv) that all filings and registrations with, authorizations,
approvals and consents of any Governmental Authority or any other Person necessary for the execution, delivery and performance of this Guaranty and for the validity and enforceability thereof, have been made or obtained and are in full force and
effect, (v) that this Guaranty has been duly and validly executed and delivered by the Guarantor and is the legal, valid and binding obligation of the Guarantor, enforceable against the Guarantor, in accordance with its terms, (vi) that no
legal proceedings are pending, or threatened, before any court or governmental agency which would adversely affect its financial condition, operations or any licenses or its ability to perform under this Guaranty, (vii) that the execution,
delivery and performance of this Guaranty will not violate any Requirement of Law or Contractual Obligation of the Guarantor or of any of its Subsidiaries and will not result in, or require, the creation or imposition of any Lien on any of its or
their respective properties or revenues pursuant to any such Requirement of Law or Contractual Obligation, (viii) that the Guarantor has received and reviewed copies of the Program Documents, (ix) that no Default or Event of Default has
occurred and is continuing under this Guaranty, and (ix) that the Guarantor has a financial interest in the Seller and the Guarantor has determined that it will benefit from the execution of the Program Documents. 
  
 (b) The Guarantor covenants and agrees with the Buyer that until payment in
full of the Obligations: 
  
 (i) the Guarantor
shall preserve and maintain all of its material rights, privileges, licenses and franchises and comply with the requirements of all applicable laws, rules, regulations and orders of Governmental Authorities if failure to comply with such
requirements would be reasonably likely (either individually or in the aggregate) to have a Material Adverse Effect; 
  
 (ii) the Guarantor shall not enter into any transaction of merger or consolidation or amalgamation, or liquidate, wind up or dissolve
itself (or suffer any liquidation, winding up or dissolution) or sell all or substantially all of 

  

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its assets; provided, that the Guarantor may merge or consolidate with any Subsidiary of the Guarantor or any other Person if the Guarantor is the
surviving corporation; and provided further, that if after giving effect thereto, no Default would exist hereunder; 
  
 (iii) the Guarantor will promptly, and in any event within seven (7) days after service of process on any of the following, give to
the Buyer notice of all legal or arbitrable proceedings affecting the Guarantor or any of its Subsidiaries that questions or challenges the validity or enforceability of this Guaranty or as to which there is a reasonable likelihood of adverse
determination which would result in a Material Adverse Effect; 
  
 (iv) the Guarantor shall not convey, sell, lease, assign, transfer or otherwise dispose of (collectively, “Transfer”) all or substantially all of its Property, business or assets (including, without
limitation, receivables and leasehold interests) whether now owned or hereafter acquired, except in connection with a transaction in which loans that are subject to a facility provided by Buyer are securitized; provided that all of the
proceeds of such securitization transaction are used to pay the outstanding obligations of Seller under the Repurchase Agreement; 
  
 (v) The Tangible Net Worth of the Guarantor and its consolidated Subsidiaries shall not be less than $300,000,000 at all times. In
addition, the Tangible Net Worth of the Guarantor and its consolidated Subsidiaries shall not decline by more than 15% of the its Tangible Net Worth during any calendar quarter, and shall not decline by more than 30% during any trailing twelve
consecutive month period; 
  
 (vi) The ratio of
the Total Indebtedness of Guarantor and its consolidated Subsidiaries to Shareholders’ Equity shall not at any time be greater than 15:1; 
  
 (vii) The Guarantor shall maintain its status as a REIT as of the end of each calendar quarter; and 
  
 (viii) The Guarantor shall deliver to the Buyer, as soon as
available and in any event within forty-five (45) Business Days after the end of each quarter of each calendar quarter, a certificate in the form of attached as Exhibit A to the Repurchase Agreement. 
  
 4. Right of Set-off. The Guarantor hereby irrevocably
authorizes the Buyer and each of its affiliates at any time and from time to time without notice to the Guarantor, any such notice being expressly waived by the Guarantor, to set-off and appropriate and apply any and all property and deposits
(general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, 

  

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matured or unmatured, at any time held or owing by the Buyer or any of its affiliates to or for the credit or the account of the Guarantor, or any part
thereof in such amounts as the Buyer or any of its affiliates may elect, against and on account of the Obligations and liabilities of the Guarantor to the Buyer hereunder and claims of every nature and description of the Buyer or any of its
affiliates against the Guarantor, in any currency, whether arising hereunder, under the Repurchase Agreement as the Buyer may elect, whether or not the Buyer has made any demand for payment and although such obligations, liabilities and claims may
be contingent or unmatured. The Buyer shall notify the Guarantor promptly of any such set-off and the application made by the Buyer, provided that the failure to give such notice shall not affect the validity of such set-off and application.
The rights of the Buyer under this Section are in addition to other rights and remedies (including, without limitation, other rights of set-off) which the Buyer may have. 
  
 5. No Subrogation. Notwithstanding any payment or payments made by the Guarantor hereunder or any set-off or
application of funds of the Guarantor by the Buyer, the Guarantor shall not be entitled to be subrogated to any of the rights of the Buyer against the Seller or any other guarantor or any collateral security or guarantee or right of offset held by
the Buyer or any of its affiliates for the payment of the Obligations, nor shall the Guarantor seek or be entitled to seek any contribution or reimbursement from the Seller or any other guarantor in respect of payments made by the Guarantor
hereunder, until all amounts owing to the Buyer by the Seller on account of the Obligations are paid in full and the Repurchase Agreement is terminated. If any amount shall be paid to the Guarantor on account of such subrogation rights at any time
when all of the Obligations shall not have been paid in full, such amount shall be held by the Guarantor in trust for the Buyer, segregated from other funds of the Guarantor, and shall, forthwith upon receipt by the Guarantor, be turned over to the
Buyer in the exact form received by the Guarantor (duly indorsed by the Guarantor to the Buyer, if required), to be applied against the Obligations, whether matured or unmatured, in such order as the Buyer may determine. 
  
 6. Amendments, Etc. with Respect to the Obligations. The
Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights against the Guarantor and without notice to or further assent by the Guarantor, any demand for payment of any of the Obligations made by the Buyer may
be rescinded by the Buyer and any of the Obligations continued, and the Obligations, or the liability of any other party upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may,
from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by the Buyer, and the Repurchase Agreement and any other documents executed and delivered in connection
therewith may be amended, modified, supplemented or terminated, in whole or in part, as the Buyer may deem advisable from time to time, and any collateral security, guarantee or right of offset at any time held by the Buyer for the payment of the
Obligations may be sold, exchanged, waived, surrendered or released. The Buyer shall not have any obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Obligations or for this 

  

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Guaranty or any property subject thereto. When making any demand hereunder against the Guarantor, the Buyer may, but shall be under no obligation to, make a
similar demand on the Seller or any other guarantor, and any failure by the Buyer to make any such demand or to collect any payments from the Seller or any such other guarantor or any release of the Seller or such other guarantor shall not relieve
the Guarantor of its Obligations or liabilities hereunder, and shall not impair or affect the rights and remedies, express or implied, or as a matter of law, of the Buyer against the Guarantor. For the purposes hereof “demand” shall
include the commencement and continuance of any legal proceedings. The Buyer may release any Purchased Items purchased by it in its sole discretion. The Guarantor hereby further consents to any renewal or modification of any Obligation or any
extension of the time within which such is to be performed and to any other indulgences, whether before or after the date of this Guaranty, and waives notice with respect thereto. 
  
 7. Waiver of Rights. The Guarantor waives any and all notice of the creation, renewal, extension or accrual of
any of the Obligations, and notice of or proof of reliance by the Buyer upon this Guaranty or acceptance of this Guaranty; the Obligations, and any of them shall conclusively be deemed to have been created, contracted or incurred, or renewed,
extended, amended or waived, in reliance upon this Guaranty; and all dealings between any Seller and the Guarantor, on the one hand, and the Buyer, on the other hand, likewise shall be conclusively presumed to have been had or consummated in
reliance upon this Guaranty. The Guarantor waives diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon the Seller or the Guarantor with respect to the Obligations. The Guarantor hereby waives diligence;
presentment; demand for payment or performance; filing of claims with any court in case of the insolvency, reorganization or bankruptcy of any Seller; protest or notice with respect to the Obligations or the amounts payable by the Seller thereunder;
and all demands whatsoever; any fact, event or circumstance that might otherwise constitute a legal or equitable defense to or discharge of the Guarantor, including (but without typifying or limiting this waiver), failure by the Buyer to perfect a
security interest in any collateral securing performance of any Obligation or to realize the value of any collateral or other assets which may be available to satisfy any Obligation and any delay by the Buyer in exercising any of its rights
hereunder or against a Seller. 
  
 8. Guaranty Absolute and
Unconditional. The Guarantor understands and agrees that this Guaranty shall be construed as a continuing, absolute and unconditional guarantee of the full and punctual payment and performance by the Seller of the Obligations and not of
collectibility only and in no way conditioned upon any requirement that the Buyer first attempt to collect any of the obligations from the Seller without regard to (i) the validity, regularity or enforceability of the Repurchase Agreement, any
of the Obligations, or any other collateral security therefor the Obligations or guarantee or right of offset with respect thereto at any time or from time to time held by the Buyer, (ii) any defense, set-off or counterclaim (other than a
defense of payment or performance) which may at any time be available to or be asserted by the Seller against the Buyer, (iii) any defense by the Seller to the Obligations or the ownership of the Buyer in the Purchased Items or any
subordination of any Lien on the 

  

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Purchased Items, or (iv) any other circumstance whatsoever (with or without notice to or knowledge of the Seller or the Guarantor) which constitutes, or
might be construed to constitute, an equitable or legal discharge of the Seller from the Obligations, or of the Guarantor from this Guaranty, in bankruptcy or in any other instance. The Guarantor understands and agrees that this Guaranty shall be
construed as a continuing, absolute and unconditional guarantee without regard to waiver, forbearance, compromise, release, settlement, the dissolution, liquidation, reorganization or other change regarding the Seller, or the Seller being the
subject of any case or proceeding under any bankruptcy or other law for the protection of debtors or creditors, or any other action or matter that would release a guarantor. When pursuing its rights and remedies hereunder against the Guarantor, the
Buyer may, but shall be under no obligation to, pursue such rights and remedies as it may have against the Seller or any other Person or against any collateral security or guarantee for the Obligations or any right of offset with respect thereto,
and any failure by the Buyer to pursue such other rights or remedies or to collect any payments from the Seller or any such other Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any
release of the Seller or any such other Person or any such collateral security, guarantee or right of offset, shall not relieve the Guarantor of any liability hereunder, and shall not impair or affect the rights and remedies, whether express,
implied or available as a matter of law, of the Buyer against the Guarantor. This Guaranty shall remain in full force and effect and be binding in accordance with and to the extent of its terms upon the Guarantor and the successors and assigns
thereof, and shall inure to the benefit of the Buyer, and its successors, indorsees, transferees and assigns, until all the Obligations and the obligations of the Guarantor under this Guaranty shall have been satisfied by payment in full and the
Repurchase Agreement shall be terminated, notwithstanding that from time to time during the term of the Repurchase Agreement the Seller may be free from any Obligations and subject to the provisions of Section 9 hereof. 
  
 9. Reinstatement. This Guaranty shall continue to be
effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of any of the Obligations is rescinded or must otherwise be restored, or returned by the Buyer upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of any Seller or the Guarantor, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for any Seller or the Guarantor or any substantial part of its property, or
otherwise, all as though such payments had not been made. 
  
 10. Events of Default. Each of the following events and occurrences shall constitute an Event of Default under this Guaranty: 
  
 (a) the Guarantor shall default in the payment of any amount required to be paid by it under the Guaranty; or 
  
 (b) any representation, warranty or certification made or deemed made herein
or in any other Program Document by the Guarantor or any certificate furnished by the Guarantor to the Buyer pursuant to the provisions thereof, shall prove to have been false or misleading in any material respect as of the time made or furnished;
or 
  

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 (c) the Guarantor shall fail to comply with Section 3(b)(ii) and Sections 3(b) (iv) –
3(b)(vii) of the Guaranty, and such default shall continue unremedied for a period of one (1) Business Day after the earlier of discovery of such failure by or notice of such failure to Guarantor; or 
  
 (d) the Guarantor shall fail to observe or perform any other agreement
contained in the Guaranty or in any other Program Document, and such failure to observe or perform shall continue unremedied for a period of five (5) Business Days after the earlier of discovery of such failure by or notice of such failure to
Guarantor; or 
  
 (e) a final judgment or judgments for the
payment of money in excess of $1,000,000 in the aggregate (to the extent that it is, in the reasonable determination of the Buyer, uninsured and provided that any insurance or other credit posted in connection with an appeal shall not be deemed
insurance for these purposes) shall be rendered against the Guarantor or any of its Subsidiaries by one or more courts, administrative tribunals or other bodies having jurisdiction over them and the same shall not be discharged (or provision shall
not be made for such discharge) or bonded, or a stay of execution thereof shall not be procured, within sixty (60) days from the date of entry thereof and the Guarantor or any such Subsidiary shall not, within said period of 60 days, or such
longer period during which execution of the same shall have been stayed or bonded, appeal therefrom and cause the execution thereof to be stayed during such appeal; or 
  
 (f) the Guarantor shall admit in writing its inability to pay its debts as such debts become due; or 
  
 (g) the Guarantor or any of its Subsidiaries shall (i) apply for or
consent to the appointment of, or the taking of possession by, a receiver, custodian, trustee, examiner or liquidator of itself or of all or a substantial part of its property, (ii) make a general assignment for the benefit of its creditors,
(iii) commence a voluntary case under the Bankruptcy Code, (iv) file a petition seeking to take advantage of any other law relating to bankruptcy, insolvency, reorganization, liquidation, dissolution, arrangement or winding-up, or
composition or readjustment of debts, (v) fail to controvert in a timely and appropriate manner, or acquiesce in writing to, any petition filed against it in an involuntary case under the Bankruptcy Code, or (vi) take any corporate or
other action for the purpose of effecting any of the foregoing; or 
  
 (h) a proceeding or case shall be commenced, without the application or consent of the Guarantor or any of its Subsidiaries, in any court of competent jurisdiction, seeking (i) its reorganization, liquidation, dissolution, arrangement
or winding-up, or the composition or readjustment of its debts, (ii) the appointment of, or taking possession by, a receiver, custodian, trustee, examiner, liquidator or the like of the Guarantor or any such Subsidiary or of all or any
substantial part of its property, or (iii) similar relief in respect of the Guarantor or any such Subsidiary under any law relating to bankruptcy, insolvency, reorganization, liquidation, dissolution, arrangement or winding-up, or composition
or adjustment of debts, and such proceeding or case shall continue undismissed, or an order, judgment or decree approving or ordering any of the foregoing 

  

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shall be entered and continue unstayed and in effect, for a period of sixty (60) or more days; or an order for relief against a Seller, the Guarantor or
any such Subsidiary shall be entered in an involuntary case under the Bankruptcy Code; or 
  
 (i) (i) a Plan shall arise on the assets of the Guarantor, or (ii) the Guarantor or any of its Affiliates shall, or in the reasonable opinion of the Buyer is likely to, incur any liability in connection with
a withdrawal from, or the insolvency or reorganization of, a Multiemployer Plan; or 
  
 (j) any Change of Control of the Guarantor shall have occurred without the prior consent of the Buyer; or 
  
 (k) the Buyer shall reasonably request, specifying the reasons for such request, information, and/or written responses to such requests, regarding the
financial well-being of the Guarantor and such information and/or responses shall not have been provided within three (3) Business Days of such request; or 
  

(l) the Guarantor shall default under, or fail to perform as required under, or shall otherwise materially breach the terms of any instrument,
agreement or contract between the Guarantor, on the one hand, and the Buyer or any of the Buyer’s Affiliates on the other; or the Guarantor shall default under, or fail to perform as requested under, the terms of any repurchase agreement, loan
and security agreement or similar credit facility or agreement for borrowed funds entered into by the Guarantor and any third party, which default or failure entitles any party to require acceleration or prepayment of any indebtedness thereunder; or

  
 (m) the Guarantor shall fail to pay any money due under any
other agreement, note, indenture or instrument evidencing, securing, guaranteeing or otherwise relating to indebtedness of the Guarantor for borrowed money in excess of $1,000,000, which failure to pay constitutes a default or event of default under
any such agreement or indebtedness, or the Guarantor receives notice, or a Responsible Officer has knowledge, of any other default or event of default or other event which with the giving of notice or the passing of time or both would constitute a
default or event of default under any such agreement or instrument, with respect to amounts due under such agreement or instrument, whether by acceleration or otherwise; or 
  
 (n) any other event shall occur with respect to the Guarantor which has had a Material Adverse Effect. 
  
 11. Payments. The Guarantor hereby guarantees that
payments hereunder will be paid to the Buyer without set-off or counterclaim in Dollars in accordance with the wiring instructions of the Buyer. 
  
 12. Notices. All notices, requests and other communications provided for herein (including without limitation any modifications of,
or waivers, requests or consents under, this Guaranty) shall be given or made in writing (including without limitation by telex or telecopy) delivered to the intended recipient at the “Address for 

  

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Notices” specified below its name on the signature pages of the Repurchase Agreement); or, as to any party, at such other address as shall be designated
by such party in a written notice to each other party. All such communications shall be deemed to have been duly given when transmitted by telex or telecopy or personally delivered or, in the case of a mailed notice, upon receipt, in each case given
or addressed as aforesaid. 
  
 13.
Severability. Any provision of this Guaranty which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
  
 14. Integration. This Guaranty and the Repurchase Agreement represent the agreement of the Guarantor
with respect to the subject matter hereof and thereof and there are no promises or representations by the Buyer relative to the subject matter hereof or thereof not reflected herein or therein. 
  
 15. Amendments in Writing; No Waiver; Cumulative Remedies.

  
 (a) None of the terms or provisions of this Guaranty may
be waived, amended, supplemented or otherwise modified except by a written instrument executed by the Guarantor and the Buyer, provided that any provision of this Guaranty may be waived by the Buyer. 
  
 (b) The Buyer shall not by any act (except by a written instrument pursuant
to Section 15(a) hereof), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default or in any breach of any of the terms and conditions hereof. No
failure to exercise, nor any delay in exercising, on the part of the Buyer, any right, power or privilege hereunder shall operate as a waiver thereof. No single or partial exercise of any right, power or privilege hereunder shall preclude any other
or further exercise thereof or the exercise of any other right, power or privilege. A waiver by the Buyer of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which the Buyer would otherwise
have on any future occasion. 
  
 (c) The rights and remedies
herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law. 
  
 16. Section Headings. The section headings used in this Guaranty are for convenience of reference only and are not to affect the
construction hereof or be taken into consideration in the interpretation hereof. 
  
 17. Successors and Assigns. This Guaranty shall be binding upon the successors and assigns of the Guarantor and shall inure to the benefit of the Buyer and its successors and assigns. This
Guaranty may not be assigned by the Guarantor without the express written consent of the Buyer in its sole discretion and any attempt to assign or 

  

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transfer this Guaranty without such consent shall be null and void and of no effect whatsoever. Buyer may assign the Guaranty at any time without the consent
of the Guarantor. 
  
 18. Governing Law. This
Guaranty shall be governed by New York law without reference to choice of law doctrine (but with reference to Sections 5-1401 and 5-1402 of the New York General Obligations Law, which by its terms applies to this Guaranty). 
  
 19. SUBMISSION TO JURISDICTION; WAIVERS. THE GUARANTOR
HEREBY IRREVOCABLY AND UNCONDITIONALLY: 
  
 (A) SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTY AND THE REPURCHASE AGREEMENT, OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE GENERAL
JURISDICTION OF THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF, OR THE COURTS OF THE STATE OF NEW YORK, WITHIN THE COUNTY OF NEW YORK, IN THE EVENT THE FEDERAL COURT
LACKS OR DECLINES JURISDICTION; 
  
 (B)
CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND, TO THE EXTENT PERMITTED BY LAW, WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION
OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME; 
  
 (C) AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR
CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO ITS ADDRESS SET FORTH UNDER ITS SIGNATURE BELOW OR AT SUCH OTHER ADDRESS OF WHICH THE BUYER SHALL HAVE BEEN NOTIFIED; AND 
  
 (D) AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO
EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER JURISDICTION. 
  
 20. WAIVER OF JURY TRIAL. EACH OF THE GUARANTOR AND THE BUYER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
AND ALL RIGHT TO 

  

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TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY, ANY THE REPURCHASE AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY. 
  
 21. Termination. This
Guaranty shall terminate upon the final payment in full of the Obligations and the termination of the Repurchase Agreement. 
  
 [SIGNATURE PAGE FOLLOWS] 
  

 12 

 IN WITNESS WHEREOF, the undersigned have caused this Guaranty to be duly executed and delivered by its
duly authorized officers as of the day and year first above written. 
  

			
	TABERNA REALTY FINANCE TRUST
		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 
	
	Address for Notices:
	
	 1818 Market Street, 28th Floor
 Philadelphia,
PA 19103
 Attention: Jack Salmon
 Telecopier No.: (215)
861-7878
 Telephone No.: (215) 861-7882

  
 Guaranty2005 Equity Incentive Plan

 Exhibit 10.22 
  
 TABERNA REALTY FINANCE TRUST 
  
 2005 EQUITY INCENTIVE PLAN 
  
 Taberna Realty Finance Trust, a Maryland real estate investment trust, wishes to attract and retain qualified key employees, trustees, directors,
officers, advisors, consultants and other personnel and encourage them to increase their efforts to make the Company’s business more successful whether directly or through its Subsidiaries or other Affiliates. In furtherance thereof, the
Taberna Realty Finance Trust 2005 Equity Incentive Plan is designed to provide equity-based incentives to certain Eligible Persons. Awards under the Plan may be made to Eligible Persons in the form of Options, Restricted Shares, Share Appreciation
Rights, Dividend Equivalent Rights, Performance Awards, Phantom Shares and other forms of equity-based compensation. 
  

	1.	DEFINITIONS. 

  
 Whenever used herein, the following terms shall have the meanings set forth below: 
  
 “Affiliate” means any entity other than a Subsidiary that is controlled by or under common control with the
Company that is designated as an “Affiliate” by the Committee in its discretion. 
  
 “Award”, except where referring to a particular category of grant under the Plan, shall include Incentive Stock Options, Non-Qualified Stock Options, Restricted Shares, Share Appreciation Rights, Dividend
Equivalent Rights, Performance Awards, Phantom Shares and other equity-based Awards as contemplated herein. 
  
 “Award Agreement” means a written agreement in a form approved by the Committee as provided in Section 3. 
  
 “Board” means the Board of Trustees of the Company. 
  
 “Cause” means, unless otherwise provided in the Participant’s
Award Agreement, (i) engaging in (A) willful or gross misconduct or (B) willful or gross neglect; (ii) the commission of a felony or a crime of moral turpitude, dishonesty, breach of trust or unethical business conduct, or any
crime involving the Company or any Affiliate thereof; (iii) engaging in the performance of his duties in fraud, misappropriation or embezzlement; (iv) a material breach of the Participant’s employment agreement (if any) with the
Company or its Affiliates; (v) acts or omissions constituting a material failure to perform substantially and adequately the duties assigned to the Participant; (vi) any illegal act detrimental to the Company or its Affiliates; or
(vii) repeated failure to adhere to the directions of superiors or the Board, to adhere to the Company’s written policies and practices or to devote substantially all of the Participant’s business time and efforts to the Company and
its Affiliates if required by Participant’s employment agreement; provided, however, that, if at any particular time the Participant is subject to an effective employment agreement with the Company, then, in lieu of the foregoing definition,
“Cause” shall at that time have such meaning as may be specified in such employment agreement. 

 “Change of Control” means, unless otherwise provided in an Award Agreement, the happening of
any of the following: 
  
 (i) any “person,” including a
“group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act, but excluding the Company), any entity controlling, controlled by or under common control with the Company, any trustee, fiduciary or other person or
entity holding securities under any employee benefit plan or trust of the Company or any such entity, and with respect to any particular Participant, the Participant and any “group” (as such term is used in Section 13(d)(3) of the
Exchange Act) of which the Participant is a member, is or becomes the “beneficial owner” (as defined in Rule 13(d)(3) under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of either
(A) the combined voting power of the Company’s then outstanding securities or (B) the then outstanding Shares (in either such case other than as a result of an acquisition of securities directly from the Company); provided, however,
that, in no event shall a Change of Control be deemed to have occurred upon an initial public offering of the Common Shares under the Securities Act; or 
  
 (ii) any consolidation or merger of the Company where the shareholders of the Company, immediately prior to the consolidation or merger, would not,
immediately after the consolidation or merger, beneficially own (as such term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, shares representing in the aggregate 50% or more of the combined voting power of the securities
of the corporation issuing cash or securities in the consolidation or merger (or of its ultimate parent corporation, if any); or 
  
 (iii) there shall occur (A) any sale, lease, exchange or other transfer (in one transaction or a series of transactions contemplated or arranged by
any party as a single plan) of all or substantially all of the assets of the Company, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 50% of the combined voting power of
the voting securities of which are owned by “persons” (as defined above) in substantially the same proportion as their ownership of the Company immediately prior to such sale or (B) the approval by shareholders of the Company of any
plan or proposal for the liquidation or dissolution of the Company; or 
  
 (iv) the members of the Board at the beginning of any consecutive 24-calendar-month period (the “Incumbent Trustees”) cease for any reason other than due to death to constitute at least a majority of the members of the Board;
provided that any trustee whose election, or nomination for election by the Company’s shareholders, was approved or ratified by a vote of at least a majority of the members of the Board then still in office who were members of the Board at the
beginning of such 24-calendar-month period, shall be deemed to be an Incumbent Trustee. 
  
 Notwithstanding the foregoing, no event or condition shall constitute a Change of Control to the extent that, if it were, a 20% tax would be imposed under Section 409A of the Code; provided that, in such a case, the event or condition
shall continue to constitute a Change of Control to the maximum extent possible (e.g., if applicable, in regard of vesting without an acceleration of distribution) without causing the imposition of such 20% tax. 
  
 “Code” means the Internal Revenue Code of 1986, as amended.

  
 “Committee” means the Compensation Committee of the
Board or another Committee of the Board appointed in accordance with Section 3(a) hereof. 
  

 2 

 “Common Shares” means the Company’s common shares of beneficial interest, par value $.01
per share, either currently existing or authorized hereafter. 
  
 “Company” means Taberna Realty Finance Trust, a Maryland real estate investment trust. 
  
 “Disability” means, unless otherwise provided by the Committee in the Participant’s Award Agreement, a disability which renders the
Participant incapable of performing all of his or her material duties for a period of at least 180 consecutive or non-consecutive days during any consecutive twelve-month period. Notwithstanding the foregoing, no circumstances or condition shall
constitute a Disability to the extent that, if it were, a 20% tax would be imposed under Section 409A of the Code; provided that, in such a case, the event or condition shall continue to constitute a Disability to the maximum extent possible
(e.g., if applicable, in regard of vesting without an acceleration of distribution) without causing the imposition of such 20% tax. 
  
 “Dividend Equivalent Right” means a right awarded under Section 8 of the Plan to receive (or have credited) the equivalent value of
dividends paid on Common Shares. 
  
 “Eligible Person”
means a key employee, trustee, non-employee trustee, director, officer, advisor, consultant or other personnel of the Company or a Subsidiary or other person expected to provide significant services (of a type expressly approved by the Committee as
covered services for these purposes) to the Company or its Subsidiaries. The Committee may provide that Affiliates of the Company and employees thereof may be Eligible Persons, and may make such arrangements with the foregoing entities as it may
consider appropriate, in light of tax and other considerations, in the case of grants directly or indirectly to such employees. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Fair Market Value” per Share as of a particular date means (i) if Shares are then listed on a national stock
exchange, the closing sales price per Share on the exchange for the last preceding date on which there was a sale of Shares on such exchange, as determined by the Committee, (ii) if Shares are not then listed on a national stock exchange but
are then traded on an over-the-counter market, the average of the closing bid and asked prices for the Shares in such over-the-counter market for the last preceding date on which there was a sale of such Shares in such market, as determined by the
Committee, or (iii) if Shares are not then listed on a national stock exchange or traded on an over-the-counter market, such value as the Committee in its discretion may in good faith determine; provided that, where the Shares are so listed or
traded, the Committee may make such discretionary determinations where the Shares have not been traded for 10 trading days. 
  
 “Grantee” means an Eligible Person granted Restricted Shares, Share Appreciation Rights, Dividend Equivalent Rights, Performance Awards, Phantom
Shares or such other equity-based Awards (other than an Option) as may be granted pursuant to Section 9. 
  
 “Incentive Stock Option” means an “incentive stock option” within the meaning of Section 422(b) of the Code. 
  
 “Non-Qualified Stock Option” means an Option which is not an
Incentive Stock Option. 
  
 “Offering” shall have the
meaning set forth in Section 4.1(a) of the Plan. 
  

 3 

 “Option” means the right to purchase, at a price and for the term fixed by the Committee in
accordance with the Plan, and subject to such other limitations and restrictions in the Plan and the applicable Award Agreement, a number of Shares determined by the Committee. 
  
 “Optionee” means an Eligible Person to whom an Option is granted, or the Successors of the Optionee, as the
context so requires. 
  
 “Option Price” means the price
per Share, determined by the Board or the Committee, at which an Option may be exercised. 
  
 “Participant” means a Grantee or Optionee. 
  
 “Phantom Share” means a right, pursuant to the Plan, of the Grantee to payment of the Phantom Share Value. 
  
 “Phantom Share Value,” per Phantom Share, means the Fair Market Value of a Share or, if so provided by the Committee, such Fair Market Value to
the extent in excess of a base value established by the Committee at the time of grant (which base value may not be less than the Fair Market Value of the underlying Shares at the date of grant). 
  
 “Plan” means the Company’s 2005 Equity Incentive Plan, as set
forth herein and as the same may from time to time be amended. 
  
 “Restricted Shares” means an award of Shares that are subject to restrictions hereunder. 
  
 “Retirement” means, unless otherwise provided by the Committee in the Participant’s Award Agreement, the Termination of Service (other than
for Cause) of a Participant on or after the Participant’s attainment of age 65 or on or after the Participant’s attainment of age 55 with five consecutive years of service with the Company or any Subsidiaries or Affiliates. 
  
 “Securities Act” means the Securities Act of 1933, as amended.

  
 “Settlement Date” means the date determined under
Section 7.4(c). 
  
 “Shares” means shares of
beneficial interest of the Company. 
  
 “Subsidiary”
means any corporation (other than the Company) that is a “subsidiary corporation” with respect to the Company under Section 424(f) of the Code. In the event the Company becomes a subsidiary of another company, the provisions hereof
applicable to subsidiaries shall, unless otherwise determined by the Committee, also be applicable to any company that is a “parent corporation” with respect to the Company under Section 424(e) of the Code. 
  
 “Successor of the Optionee” means the legal representative of the
estate of a deceased Optionee or the person or persons who shall acquire the right to exercise an Option by bequest or inheritance or by reason of the death of the Optionee. 
  
 “Termination of Service” means a Participant’s termination of employment or other service, as applicable,
with the Company, its Subsidiaries and, as applicable, Affiliates. 
  
 “Trustee” means a non-employee trustee of the Company or its Subsidiaries. 
  

 4 

	2.	EFFECTIVE DATE AND TERMINATION OF PLAN. 

  
 The effective date of the Plan is April 28, 2005. The Plan shall terminate on, and no Award shall be granted hereunder on or after, the 10-year
anniversary of the earlier of the approval of the Plan by (i) the Board or (ii) the shareholders of the Company; provided, however, that the Board may at any time prior to that date terminate the Plan. 
  

	3.	ADMINISTRATION OF PLAN. 

  
 (a) The Plan shall be administered by the Committee appointed by the Board. The Committee, upon and after such time as it is covered in Section 16 of
the Exchange Act, shall consist of at least two individuals each of whom shall be a “nonemployee director” as defined in Rule 16b-3 as promulgated by the Securities and Exchange Commission (“Rule 16b-3”) under the Exchange
Act and shall, at such times as the Company is subject to Section 162(m) of the Code (to the extent relief from the limitation of Section 162(m) of the Code is sought with respect to Awards), qualify as “outside directors” for
purposes of Section 162(m) of the Code; provided that no action taken by the Committee (including, without limitation, grants) shall be invalidated because any or all of the members of the Committee fails to satisfy the foregoing requirements
of this sentence. The acts of a majority of the members present at any meeting of the Committee at which a quorum is present, or acts approved in writing by a majority of the entire Committee, shall be the acts of the Committee for purposes of the
Plan. If and to the extent applicable, no member of the Committee may act as to matters under the Plan specifically relating to such member. Notwithstanding the other foregoing provisions of this Section 3(a), any Award under the Plan to a
person who is a member of the Committee shall be made and administered by the Board. If no Committee is designated by the Board to act for these purposes, the Board shall have the rights and responsibilities of the Committee hereunder and under the
Award Agreements. 
  
 (b) Subject to the provisions of the Plan,
the Committee shall in its discretion as reflected by the terms of the Award Agreements (i) authorize the granting of Awards to Eligible Persons; and (ii) determine the eligibility of Eligible Persons to receive an Award, as well as
determine the number of Shares to be covered under any Award Agreement, considering the position and responsibilities of the Eligible Persons, the nature and value to the Company of the Eligible Person’s present and potential contribution to
the success of the Company whether directly or through its Subsidiaries or Affiliates and such other factors as the Committee may deem relevant. 
  
 (c) The Award Agreement shall contain such other terms, provisions and conditions not inconsistent herewith as shall be determined by the Committee. In
the event that any Award Agreement or other agreement hereunder provides (without regard to this sentence) for the obligation of the Company or any Subsidiary or Affiliate thereof to purchase or repurchase Shares from a Participant or any other
person, then, notwithstanding the provisions of the Award Agreement or such other agreement, such obligation shall not apply to the extent that the purchase or repurchase would not be permitted under governing state law. The Participant shall take
whatever additional actions and execute whatever additional documents the Committee may in its reasonable judgment deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on the Participant
pursuant to the express provisions of the Plan and the Award Agreement. 
  

	4.	SHARES AND UNITS SUBJECT TO THE PLAN. 

  
 4.1 In General. 
  
 (a) Subject to adjustments as provided in Section 14, the total number of Shares subject to Awards granted under the Plan (including securities
convertible into or exchangeable for Shares), in the aggregate, may not exceed (x) upon completion of the Company’s offering of Shares in transactions exempt from the registration requirements of the Securities Act in accordance with the
terms and 

  

 5 

 
conditions of that certain Purchase/Placement Agreement between the Company and Friedman, Billings, Ramsey & Co., Inc. (“FBR”) dated
April 21, 2005 (the “Offering”), 1,107,500 Shares, or (y) 1,107,500 Shares plus an additional amount of Shares proportionate to any exercise of an over-allotment option of the initial purchaser in the Offering; provided that such
limitation set forth in (x) or (y) above, as applicable, shall be increased by 50,000 Shares on an annual basis to provide for annual Awards of Restricted Shares that shall be made to the Company’s non-excluded trustees. Shares
distributed under the Plan may be treasury Shares or authorized but unissued Shares. Any Shares that have been granted as Restricted Shares or that have been reserved for distribution in payment for Options, Phantom Shares or other equity-based
Awards but are later forfeited or for any other reason are not payable under the Plan (other than as a result of a cash payment in lieu thereof) may again be made the subject of Awards under the Plan. 
  
 (b) If any Awards are paid out in cash, then the underlying Shares may not
again be made the subject of Awards under the Plan. 
  
 (c) The
certificates for Shares issued hereunder may include any legend which the Committee deems appropriate to reflect any rights of first refusal or other restrictions on transfer hereunder or under the Award Agreement, or as the Committee may otherwise
deem appropriate. 
  
 (d) Unless otherwise determined by the
Board, no Award may be granted under the Plan to any person who, assuming exercise of all Options and payment of all Awards held by such person, would own or be deemed to own more than 7.7% in value or in number of Shares, whichever is more
restrictive, of the outstanding Common Shares or the outstanding Shares of beneficial interest. 
  

	5.	PROVISIONS APPLICABLE TO STOCK OPTIONS. 

  
 5.1 Grant of Option. 
  
 Subject to the other terms of the Plan, the Committee shall, in its discretion as reflected by the terms of the applicable Award Agreement:
(i) determine and designate from time to time those Eligible Persons to whom Options are to be granted and the number of Shares to be optioned to each Eligible Person; (ii) determine whether to grant Options intended to be Incentive Stock
Options, or to grant Non-Qualified Stock Options, or both (to the extent that any Option does not qualify as an Incentive Stock Option, it shall constitute a separate Non-Qualified Stock Option); provided that Incentive Stock Options may only be
granted to employees of the Company, its Subsidiaries or other Affiliates; (iii) determine the time or times when and the manner and condition in which each Option shall be exercisable and the duration of the exercise period;
(iv) designate each Option as one intended to be an Incentive Stock Option or as a Non-Qualified Stock Option; and (v) determine or impose other conditions to the grant or exercise of Options under the Plan as it may deem appropriate.

  
 5.2 Option Price. 
  
 The Option Price shall be determined by the Committee on the date the Option
is granted and reflected in the Award Agreement, as the same may be amended from time to time. Any particular Award Agreement may provide for different Option Prices for specified amounts of Shares subject to the Option; provided that, to the extent
necessary to comply with the requirements to exempt such Option from Section 162(m) of the Code, the Option Price shall not be less than the Fair Market Value of the underlying Shares on the date of grant. 
  

 6 

 5.3 Period of Option and Vesting. 
  
 (a) Unless earlier expired, forfeited or otherwise terminated, each Option shall expire in its entirety upon the 10th
anniversary of the date of grant or shall have such other term (which may be shorter, but not longer, in the case of Incentive Stock Options) as is set forth in the applicable Award Agreement (except that, in the case of an individual described in
Section 422(b)(6) of the Code (relating to certain more than 10% owners) who is granted an Incentive Stock Option, the term of such Option shall be no more than five years from the date of grant). The Option shall also expire, be forfeited and
terminate at such times and in such circumstances as otherwise provided hereunder or under the Award Agreement. 
  
 (b) Each Option, to the extent that the Optionee has not had a Termination of Service and the Option has not otherwise lapsed, expired, terminated or been
forfeited, shall first become exercisable according to the terms and conditions set forth in the Award Agreement, as determined by the Committee at the time of grant. Unless otherwise provided in the Award Agreement, no Option (or portion thereof)
shall ever be exercisable if the Optionee has a Termination of Service before the time at which such Option (or portion thereof) would otherwise have become exercisable, and any Option that would otherwise become exercisable after such Termination
of Service shall not become exercisable and shall be forfeited upon such termination. Notwithstanding the foregoing provisions of this Section 5.3(b), Options exercisable pursuant to the schedule set forth by the Committee at the time of grant
may be fully or more rapidly exercisable or otherwise vested at any time in the discretion of the Committee. Upon and after the death of an Optionee, such Optionee’s Options, if and to the extent otherwise exercisable hereunder or under the
applicable Award Agreement after the Optionee’s death, may be exercised by the Successors of the Optionee. 
  
 5.4 Exercisability Upon and After Termination of Optionee. 
  

(a) Subject to provisions of the Award Agreement, in the event the Optionee has a Termination of Service other than by the Company or its Subsidiaries,
or as applicable, an Affiliate, for Cause, or other than by reason of death, Retirement or Disability, no exercise of an Option may occur after the expiration of the three-month period to follow the termination, or if earlier, the expiration of the
term of the Option as provided under Section 5.3(a); provided that, if the Optionee should die after the Termination of Service, such termination being for a reason other than Disability or Retirement, but while the Option is still in effect,
the Option (if and to the extent otherwise exercisable by the Optionee at the time of death) may be exercised until the earlier of (i) one year from the date of the Termination of Service of the Optionee, or (ii) the date on which the term
of the Option expires in accordance with Section 5.3(a). 
  
 (b) Subject to provisions of the Award Agreement, in the event the Optionee has a Termination of Service on account of death, Disability or Retirement, the Option (whether or not otherwise exercisable) may be exercised until the earlier of
(i) one year from the date of the Termination of Service of the Optionee, or (ii) the date on which the term of the Option expires in accordance with Section 5.3. 
  
 (c) Notwithstanding any other provision hereof, unless otherwise provided in the Award Agreement, in the event the Optionee
has a Termination of Service by the Company, a Subsidiary or Affiliate for Cause, the Optionee’s Options, to the extent then unexercised, shall thereupon cease to be exercisable and shall be forfeited forthwith (whether or not the Options were
exercisable previously). 
  

 7 

 5.5 Exercise of Options. 
  
 (a) Subject to vesting, restrictions on exercisability and other restrictions provided for hereunder or otherwise imposed in
accordance herewith, an Option may be exercised, and payment in full of the aggregate Option Price made, by an Optionee only by written notice (in the form prescribed by the Committee) to the Company or its designee specifying the number of Shares
to be purchased. 
  
 (b) Without limiting the scope of the
Committee’s discretion hereunder, the Committee may impose such other restrictions on the exercise of Options (whether or not in the nature of the foregoing restrictions) as it may deem necessary or appropriate. 
  
 5.6 Payment. 
  
 (a) The aggregate Option Price shall be paid in full upon the exercise of the
Option. Payment must be made by one of the following methods: 
  
 (i) a certified or bank cashier’s check; 
  
 (ii)
subject to Section 12(e), the proceeds of a Company loan program or third-party sale program or a notice acceptable to the Committee given as consideration under such a program, in each case if permitted by the Committee in its discretion, if
such a program has been established and the Optionee is eligible to participate therein; 
  
 (iii) if approved by the Committee in its discretion, previously owned Common Shares, which have been previously owned for more than six months, having an aggregate Fair Market Value on the date of exercise equal to
the aggregate Option Price; or 
  
 (iv) by any combination of
such methods of payment or any other method acceptable to the Committee in its discretion. 
  
 (b) Except in the case of Options exercised by certified or bank cashier’s check, the Committee may impose limitations and prohibitions on the exercise of Options as it deems appropriate, including, without
limitation, any limitation or prohibition designed to avoid accounting consequences which may result from the use of Common Shares as payment upon exercise of an Option. 
  
 (c) The Committee may provide that no Option may be exercised with respect to any fractional Share. Any fractional Shares
resulting from an Optionee’s exercise that is accepted by the Company shall in the discretion of the Committee be paid in cash. 
  
 5.7 Share Appreciation Rights. 
  
 The Committee, in its discretion, may also permit (taking into account, without limitation, the application of Section 409A of the Code, as the
Committee may deem appropriate) the Optionee to elect to receive upon the exercise of an Option a combination of Shares and cash, or, in the discretion of the Committee, either Shares or cash, with an aggregate Fair Market Value (or, to the extent
of payment in cash, in an amount) equal to the excess of the Fair Market Value of the Shares with respect to which the Option is being exercised over the aggregate Option Price, as determined as of the day the Option is exercised. 
  

 8 

 5.8 Exercise by Successors. 
  
 An Option may be exercised, and payment in full of the aggregate Option Price made, by the Successors of the Optionee only
by written notice (in the form prescribed by the Committee) to the Company specifying the number of Shares to be purchased. Such notice shall state that the aggregate Option Price will be paid in full, or that the Option will be exercised as
otherwise provided hereunder, in the discretion of the Company or the Committee, if and as applicable. 
  
 5.9 Nontransferability of Option. 
  
 Except if provided in the applicable Award Agreement, each Option granted under the Plan shall be nontransferable by the Optionee except by will or the
laws of descent and distribution of the state wherein the Optionee is domiciled at the time of his death; provided, however, that the Committee may (but need not) permit other transfers, where the Committee concludes that such transferability
(i) does not result in accelerated U.S. federal income taxation, (ii) does not cause any Option intended to be an Incentive Stock Option to fail to be described in Section 422(b) of the Code, (iii) complies with applicable law,
including securities laws, and (iv) is otherwise appropriate and desirable. 
  
 5.10 Deferral. 
  
 The
Committee (taking into account, without limitation, the possible application of Section 409A of the Code, as the Committee may deem appropriate) may establish a program under which Participants will have Phantom Shares subject to Section 7
credited upon their exercise of Options, rather than receiving Shares at that time. 
  
 5.11 Certain Incentive Stock Option Provisions. 
  
 (a) The aggregate Fair Market Value, determined as of the date an Option is granted, of the Common Shares for which any Optionee may be awarded Incentive Stock Options which are first exercisable by the Optionee
during any calendar year under the Plan (or any other stock option plan required to be taken into account under Section 422(d) of the Code) shall not exceed $100,000. To the extent the $100,000 limit referred to in the preceding sentence is
exceeded, a Stock Option will be treated as a Non-Qualified Stock Option. 
  
 (b) If Shares acquired upon exercise of an Incentive Stock Option are disposed of in a disqualifying disposition within the meaning of Section 422 of the Code by an Optionee prior to the expiration of either two
years from the date of grant of such Option or one year from the transfer of Shares to the Optionee pursuant to the exercise of such Option, or in any other disqualifying disposition within the meaning of Section 422 of the Code, such Optionee
shall notify the Company in writing as soon as practicable thereafter of the date and terms of such disposition and, if the Company (or any Affiliate thereof) thereupon has a tax-withholding obligation, shall pay to the Company (or such Affiliate)
an amount equal to any withholding tax the Company (or Affiliate) is required to pay as a result of the disqualifying disposition. 
  
 (c) The Option Price with respect to each Incentive Stock Option shall not be less than 100%, or 110% in the case of an individual described in
Section 422(b)(6) of the Code (relating to certain more than 10% owners), of the Fair Market Value of a Share on the day the Option is granted. In the case of an individual described in Section 422(b)(6) of the Code who is granted an
Incentive Stock Option, the term of such Option shall be no more than five years from the date of grant. 
  

 9 

	6.	PROVISIONS APPLICABLE TO RESTRICTED SHARES. 

  
 6.1 Grant of Restricted Shares. 
  
 (a) In connection with the grant of Restricted Shares, whether or not performance goals (as provided for under Section 10) apply thereto, the
Committee shall establish one or more vesting periods with respect to the Restricted Shares granted, the length of which shall be determined in the discretion of the Committee. Subject to the provisions of this Section 6, the applicable Award
Agreement and the other provisions of the Plan, restrictions on Restricted Shares shall lapse if the Grantee satisfies all applicable employment or other service requirements through the end of the applicable vesting period. 
  
 (b) Subject to the other terms of the Plan, the Committee may, in its
discretion as reflected by the terms of the applicable Award Agreement: (i) grant Restricted Shares to Eligible Persons; (ii) provide a specified purchase price for the Restricted Shares (whether or not the payment of a purchase price is
required by any state law applicable to the Company); (iii) determine the restrictions applicable to Restricted Shares and (iv) determine or impose other conditions, including any applicable performance goals, to the grant of Restricted
Shares under the Plan as it may deem appropriate. 
  
 6.2
Certificates. 
  
 (a) Unless otherwise provided by the
Committee, each Grantee of Restricted Shares shall be issued a share certificate in respect of Restricted Shares awarded under the Plan. Each such certificate shall be registered in the name of the Grantee. Without limiting the generality of
Section 4.1(c), the certificates for Restricted Shares issued hereunder may include any legend which the Committee deems appropriate to reflect any restrictions on transfer hereunder or under the Award Agreement, or as the Committee may
otherwise deem appropriate, and, without limiting the generality of the foregoing, shall bear a legend referring to the terms, conditions, and restrictions applicable to such Award, substantially in the following form: 
  
 THE TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES REPRESENTED HEREBY
ARE SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING FORFEITURE) OF THE TABERNA REALTY FINANCE TRUST 2005 EQUITY INCENTIVE PLAN AND AN AWARD AGREEMENT APPLICABLE TO THE GRANT OF THE SHARES REPRESENTED BY THIS CERTIFICATE. COPIES OF SUCH PLAN AND AWARD
AGREEMENTS ARE ON FILE IN THE OFFICES OF TABERNA REALTY FINANCE TRUST AT 1818 MARKET STREET, 28TH FLOOR,
PHILADELPHIA, PENNSYLVANIA 19103. 
  
 (b) The Committee shall
require that any share certificates evidencing such Shares be held in custody by the Company until the restrictions hereunder shall have lapsed, and that, as a condition of any Award of Restricted Shares, the Grantee shall have delivered a share
power, endorsed in blank, relating to the share covered by such Award. If and when such restrictions so lapse, the share certificates shall be delivered by the Company to the Grantee or his or her designee as provided in Section 6.3 (and the
share power shall be so delivered or shall be discarded). 
  

 10 

 6.3 Restrictions and Conditions. 
  
 Unless otherwise provided by the Committee, the Restricted Shares awarded pursuant to the Plan shall be subject to the
following restrictions and conditions: 
  
 (i) Subject to the
provisions of the Plan and the Award Agreements, during a period commencing with the date of such Award and ending on the date the period of forfeiture with respect to such Shares lapses, the Grantee shall not be permitted voluntarily or
involuntarily to sell, transfer, pledge, anticipate, alienate, encumber or assign Restricted Shares awarded under the Plan (or have such Shares attached or garnished). Subject to the provisions of the Award Agreements and clauses (iii) and
(iv) below, the period of forfeiture with respect to Shares granted hereunder shall lapse as provided in the applicable Award Agreement. Notwithstanding the foregoing, unless otherwise expressly provided by the Committee, the period of
forfeiture with respect to such Shares shall only lapse as to whole Shares. 
  
 (ii) Except as provided in the foregoing clause (i), below in this clause (ii), in Section 14, or as otherwise provided in the applicable Award Agreement, the Grantee shall have, in respect of the
Restricted Shares, all of the rights of a holder of common shares of beneficial interest of the Company, including the right to vote the Shares and the right to receive dividends as and when such dividends are declared and paid by the Company.

  
 (iii) Except if otherwise provided in the applicable Award
Agreement, and subject to clause (iv) below, if the Grantee has a Termination of Service by the Company and its Subsidiaries (or, if applicable, its Affiliates) for Cause, or by the Grantee for any reason, during the applicable period of
forfeiture, then (A) all Shares still subject to restriction shall thereupon, and with no further action, be forfeited by the Grantee, and (B) the Company shall pay to the Grantee as soon as practicable (and in no event more than 30 days)
after such termination an amount, if any, equal to the lesser of (x) the amount paid by the Grantee for such forfeited Restricted Shares as contemplated by Section 6.1, and (y) the Fair Market Value on the date of termination of the
forfeited Restricted Shares. 
  
 (iv) Subject to the provisions
of the Award Agreement, in the event the Grantee has a Termination of Service on account of death, Disability or Retirement, or the Grantee has a Termination of Service by the Company and its Subsidiaries for any reason other than Cause, or in the
event of a Change of Control (regardless of whether a Termination of Service follows thereafter), during the applicable period of forfeiture, then restrictions under the Plan will immediately lapse on all Restricted Shares granted to the applicable
Grantee. 
  

	7.	PROVISIONS APPLICABLE TO PHANTOM SHARES. 

  
 7.1 Grant of Phantom Shares. 
  
 Subject to the other terms of the Plan, the Committee shall, in its discretion as reflected by the terms of the applicable Award Agreement:
(i) authorize the granting of Phantom Shares to Eligible Persons and (ii) determine or impose other conditions to the grant of Phantom Shares under the Plan as it may deem appropriate. 
  

 11 

 7.2 Term. 
  

The Committee may provide in an Award Agreement that any particular Phantom Share shall expire at the end of a specified term. 
  
 7.3 Vesting. 
  
 Phantom Shares shall vest as provided in the applicable Award Agreement.

  
 7.4 Settlement of Phantom Shares. 
  
 (a) Each vested and outstanding Phantom Share shall be settled by the
transfer to the Grantee of one Share; provided that, the Committee at the time of grant may provide that a Phantom Share may be settled (i) in cash at the applicable Phantom Share Value, (ii) in cash or by transfer of Shares as elected by
the Grantee in accordance with procedures established by the Committee or (iii) in cash or by transfer of Shares as elected by the Company. 
  
 (b) Phantom Shares shall be settled with a single-sum payment by the Company; provided that, with respect to Phantom Shares of a Grantee which have a
common Settlement Date, the Committee may permit the Grantee to elect in accordance with procedures established by the Committee (taking into account, without limitation, Section 409A of the Code, as the Committee may deem appropriate) to
receive installment payments over a period not to exceed 10 years. 
  
 (c) (i) Unless otherwise provided in the applicable Award Agreement, the “Settlement Date” with respect to a Phantom Share is as soon as practicable after (but not later than the first day of the month to follow) the date on which
the Phantom Share vests; provided that a Grantee may elect, in accordance with procedures to be established by the Committee, that such Settlement Date will be deferred as elected by the Grantee to as soon as practicable after (but not later than
the first day of the month to follow) the Grantee’s Termination of Service, or such other time as may be permitted by the Committee. Unless otherwise determined by the Committee, elections under this Section 7.4(c)(i) must, except as may
otherwise be permitted under the rules applicable under Section 409A of the Code, (A) be effective at least one year after they are made, or, in the case of payments to commence at a specific time, be made at least one year before the
first scheduled payment and (B) defer the commencement of distributions for at least five years. 
  
 (ii) Notwithstanding the foregoing, the Settlement Date, if not earlier pursuant to this Section 7.4(c), is the date of the
Grantee’s death. 
  
 (d) Notwithstanding the other provisions
of this Section 7, in the event of a Change of Control, the Settlement Date shall be the date of such Change of Control and all amounts due with respect to Phantom Shares to a Grantee hereunder shall be paid as soon as practicable (but in no
event more than 30 days) after such Change of Control, unless such Grantee elects otherwise in accordance with procedures established by the Committee. 
  
 (e) Notwithstanding any other provision of the Plan, a Grantee may receive any amounts to be paid in installments as provided in Section 7.4(b) or
deferred by the Grantee as provided in Section 7.4(c) in the event of an “Unforeseeable Emergency.” For these purposes, an “Unforeseeable Emergency,” as determined by the Committee in its sole discretion, is a severe
financial hardship to the Grantee resulting from a sudden and unexpected illness or accident of the Grantee or “dependent,” as defined in Section 152(a) of the Code, of the Grantee, loss of the Grantee’s property due to casualty,
or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the 

  

 12 

 
control of the Grantee. The circumstances that will constitute an Unforeseeable Emergency will depend upon the facts of each case, but, in any case, payment
may not be made to the extent that such hardship is or may be relieved: 
  
 (i) through reimbursement or compensation by insurance or otherwise, 
  
 (ii) by liquidation of the Grantee’s assets, to the extent the liquidation of such assets would not itself cause severe financial
hardship, or 
  
 (iii) by future cessation of the
making of additional deferrals under Section 7.4 (b) and (c). 
  
 Without limitation, the need to send a Grantee’s child to college or the desire to purchase a home shall not constitute an Unforeseeable Emergency. Distributions of amounts because of an Unforeseeable Emergency shall be permitted to
the extent reasonably needed to satisfy the emergency need. 
  
 7.5 Other Phantom Share Provisions. 
  
 (a) Rights
to payments with respect to Phantom Shares granted under the Plan shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, garnishment, levy, execution, or other legal or equitable
process, either voluntary or involuntary; and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, attach or garnish, or levy or execute on any right to payments or other benefits payable hereunder, shall be void.

  
 (b) A Grantee may designate in writing, on forms to be
prescribed by the Committee, a beneficiary or beneficiaries to receive any payments payable after his or her death and may amend or revoke such designation at any time. If no beneficiary designation is in effect at the time of a Grantee’s
death, payments hereunder shall be made to the Grantee’s estate. If a Grantee with a vested Phantom Share dies, such Phantom Share shall be settled and the Phantom Share Value in respect of such Phantom Shares paid, and any payments deferred
pursuant to an election under Section 7.4(c) shall be accelerated and paid, as soon as practicable (but no later than 60 days) after the date of death to such Grantee’s beneficiary or estate, as applicable. 
  
 (c) The Committee may establish a program under which distributions with
respect to Phantom Shares may be deferred for periods in addition to those otherwise contemplated by foregoing provisions of this Section 7. Such program may include, without limitation, provisions for the crediting of earnings and losses on
unpaid amounts, and, if permitted by the Committee, provisions under which Participants may select from among hypothetical investment alternatives for such deferred amounts in accordance with procedures established by the Committee. 
  
 (d) Notwithstanding any other provision of this Section 7, any
fractional Phantom Share will be paid out in cash at the Phantom Share Value as of the Settlement Date. 
  
 (e) No Phantom Share shall be construed to give any Grantee any rights with respect to Shares or any ownership interest in the Company. Except as may be
provided in accordance with Section 8, no provision of the Plan shall be interpreted to confer upon any Grantee any voting, dividend or derivative or other similar rights with respect to any Phantom Share. 
  

 13 

 7.6 Claims Procedures. 
  
 (a) To the extent that the Plan is determined by the Committee to be subject to the Employee Retirement Income Security Act
of 1974, as amended, the Grantee, or his beneficiary hereunder or authorized representative, may file a claim for payments with respect to Phantom Shares under the Plan by written communication to the Committee or its designee. A claim is not
considered filed until such communication is actually received. Within 90 days (or, if special circumstances require an extension of time for processing, 180 days, in which case notice of such special circumstances should be provided within the
initial 90-day period) after the filing of the claim, the Committee will either: 
  
 (i) approve the claim and take appropriate steps for satisfaction of the claim; or 
  
 (ii) if the claim is wholly or partially denied, advise the claimant of such denial by furnishing to him a written notice of such denial setting forth
(A) the specific reason or reasons for the denial; (B) specific reference to pertinent provisions of the Plan on which the denial is based and, if the denial is based in whole or in part on any rule of construction or interpretation
adopted by the Committee, a reference to such rule, a copy of which shall be provided to the claimant; (C) a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of the reasons
why such material or information is necessary; and (D) a reference to this Section 7.6 as the provision setting forth the claims procedure under the Plan. 
  
 (b) The claimant may request a review of any denial of his claim by written application to the Committee within 60 days
after receipt of the notice of denial of such claim. Within 60 days (or, if special circumstances require an extension of time for processing, 120 days, in which case notice of such special circumstances should be provided within the initial
60-day period) after receipt of written application for review, the Committee will provide the claimant with its decision in writing, including, if the claimant’s claim is not approved, specific reasons for the decision and specific references
to the Plan provisions on which the decision is based. 
  

	8.	PROVISIONS APPLICABLE TO DIVIDEND EQUIVALENT RIGHTS. 

  
 8.1 Grant of Dividend Equivalent Rights. 
  
 Subject to the other terms of the Plan, the Committee shall, in its discretion as reflected by the terms of the Award Agreements, authorize the granting
of Dividend Equivalent Rights to Eligible Persons based on the regular cash dividends declared on Common Shares, to be credited as of the dividend payment dates, during the period between the date an Award is granted, and the date such Award is
exercised, vests or expires, as determined by the Committee. Such Dividend Equivalent Rights shall be converted to cash or additional Shares by such formula and at such time and subject to such limitation as may be determined by the Committee. With
respect to Dividend Equivalent Rights granted with respect to Options intended to be qualified performance-based compensation for purposes of Section 162(m) of the Code, such Dividend Equivalent Rights shall be payable regardless of whether
such Option is exercised. If a Dividend Equivalent Right is granted in respect of another Award hereunder, then, unless otherwise stated in the Award Agreement, in no event shall the Dividend Equivalent Right be in effect for a period beyond the
time during which the applicable portion of the underlying Award is in effect. 
  

 14 

 8.2 Certain Terms. 
  
 (a) The term of a Dividend Equivalent Right shall be set by the Committee in its discretion. 
  
 (b) Unless otherwise determined by the Committee, except as contemplated by
Section 8.4, a Dividend Equivalent Right is exercisable or payable only while the Participant is an Eligible Person. 
  
 (c) Payment of the amount determined in accordance with Section 8.1 shall be in cash, in Common Shares or a combination of the two, as determined by
the Committee. 
  
 (d) The Committee may impose such
employment-related conditions on the grant of a Dividend Equivalent Right as it deems appropriate in its discretion. 
  
 8.3 Other Types of Dividend Equivalent Rights. 
  
 The Committee may establish a program under which Dividend Equivalent Rights of a type whether or not described in the foregoing provisions of this
Section 8 may be granted to Participants. For example, and without limitation, the Committee may grant a dividend equivalent right in respect of each Share subject to an Option or with respect to a Phantom Share, which right would consist of
the right (subject to Section 8.4) to receive a cash payment in an amount equal to the dividend distributions paid on a Share from time to time. 
  
 8.4 Deferral. 
  
 The Committee may establish a program (taking into account, without limitation, the possible application of Section 409A of the Code, as the
Committee may deem appropriate) under which Participants (i) will have Phantom Shares credited, subject to the terms of Sections 7.4 and 7.5 as though directly applicable with respect thereto, upon the granting of Dividend Equivalent
Rights, or (ii) will have payments with respect to Dividend Equivalent Rights deferred. In the case of the foregoing clause (ii), such program may include, without limitation, provisions for the crediting of earnings and losses on unpaid
amounts, and, if permitted by the Committee, provisions under which Participants may select from among hypothetical investment alternatives for such deferred amounts in accordance with procedures established by the Committee. 
  

	9.	OTHER EQUITY-BASED AWARDS. 

  
 The Committee shall have the right to grant other Awards based upon the Common Shares having such terms and conditions as the Committee may determine,
including, without limitation, the grant of shares based upon certain conditions, the grant of securities convertible into Common Shares and the grant of share appreciation rights. 
  

	10.	PERFORMANCE GOALS. 

  
 The Committee, in its discretion, (i) may establish one or more performance goals as a precondition to the issuance or vesting of Awards, and
(ii) provide, in connection with the establishment of the performance goals, for predetermined Awards to those Participants (who continue to meet all applicable eligibility requirements) with respect to whom the applicable performance goals are
satisfied. In the case of any grant intended to qualify as performance based compensation under Section 162(m) of the Code (including, for these purposes, grants constituting performance based compensation, as 

  

 15 

 
determined without regard to certain shareholder approval and disclosure requirements by virtue of an applicable transition rule), the Committee shall
establish goals intended to be performance goals as contemplated by Section 162(m) and the regulations thereunder. 
  

	11.	TAX WITHHOLDING. 

  
 11.1 In General. 
  
 The Company shall be entitled to withhold from any payments or deemed payments any amount of tax withholding determined by the Committee to be required by
law. Without limiting the generality of the foregoing, the Committee may, in its discretion, require the Participant to pay to the Company at such time as the Committee determines the amount that the Committee deems necessary to satisfy the
Company’s obligation to withhold federal, state or local income or other taxes incurred by reason of (i) the exercise of any Option, (ii) the lapsing of any restrictions applicable to any Restricted Shares, (iii) the receipt of a
distribution in respect of Phantom Shares or Dividend Equivalent Rights or (iv) any other applicable income-recognition event (for example, an election under Section 83(b) of the Code). 
  
 11.2 Share Withholding. 
  
 (a) Upon exercise of an Option, the Optionee may, if approved by the
Committee in its discretion, make a written election to have Shares then issued withheld by the Company from the Shares otherwise to be received, or to deliver previously owned Shares, in order to satisfy the liability for such withholding taxes. In
the event that the Optionee makes, and the Committee permits, such an election, the number of Shares so withheld or delivered shall have an aggregate Fair Market Value on the date of exercise sufficient to satisfy the minimum applicable withholding
taxes. Where the exercise of an Option does not give rise to an obligation by the Company to withhold federal, state or local income or other taxes on the date of exercise, but may give rise to such an obligation in the future, the Committee may, in
its discretion, make such arrangements and impose such requirements as it deems necessary or appropriate. 
  
 (b) Upon lapsing of restrictions on Restricted Shares (or other income-recognition event), the Grantee may, if approved by the Committee in its
discretion, make a written election to have Shares withheld by the Company from the Shares otherwise to be released from restriction, or to deliver previously owned Shares (not subject to restrictions hereunder), in order to satisfy the liability
for such withholding taxes. In the event that the Grantee makes, and the Committee permits, such an election, the number of Shares so withheld or delivered shall have an aggregate Fair Market Value on the date of exercise sufficient to satisfy the
applicable withholding taxes. 
  
 (c) Upon the making of a
distribution in respect of Phantom Shares or Dividend Equivalent Rights, the Grantee may, if approved by the Committee in its discretion, make a written election to have amounts (which may include Shares) withheld by the Company from the
distribution otherwise to be made, or to deliver previously owned Shares (not subject to restrictions hereunder), in order to satisfy the liability for such withholding taxes. In the event that the Grantee makes, and the Committee permits, such an
election, any Shares so withheld or delivered shall have an aggregate Fair Market Value on the date of exercise sufficient to satisfy the applicable withholding taxes. 
  
 11.3 Withholding Required. 
  

Notwithstanding anything contained in the Plan or the Award Agreement to the contrary, the Participant’s satisfaction of any tax-withholding
requirements imposed by the Committee shall be a 

  

 16 

 
condition precedent to the Company’s obligation as may otherwise be provided hereunder to provide Shares to the Participant and to the release of any
restrictions as may otherwise be provided hereunder, as applicable; and the applicable Option, Restricted Shares, Phantom Shares, Dividend Equivalent Rights or any other applicable Award granted hereunder shall be forfeited upon the failure of the
Participant to satisfy such requirements with respect to, as applicable, (i) the exercise of the Option, (ii) the lapsing of restrictions on the Restricted Shares (or other income-recognition event) or (iii) distributions in respect
of any Phantom Share or Dividend Equivalent Right. 
  

	12.	REGULATIONS AND APPROVALS. 

  
 (a) The obligation of the Company to sell Shares with respect to an Award granted under the Plan shall be subject to all applicable laws, rules and
regulations, including all applicable federal and state securities laws, and the obtaining of all such approvals by governmental agencies as may be deemed necessary or appropriate by the Committee. 
  
 (b) The Committee may make such changes to the Plan as may be necessary or
appropriate to comply with the rules and regulations of any government authority or to obtain tax benefits applicable to an Award. 
  
 (c) Each grant of Options, Restricted Shares, Phantom Shares (or issuance of Shares in respect thereof) or Dividend Equivalent Rights (or issuance of
Shares in respect thereof), or other Award under Section 9 (or issuance of Shares in respect thereof), is subject to the requirement that, if at any time the Committee determines, in its discretion, that the listing, registration or
qualification of Shares issuable pursuant to the Plan is required by any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or in
connection with, the issuance of Options, Restricted Shares, Phantom Shares, Dividend Equivalent Rights, other Awards or other Shares, no payment shall be made, or Phantom Shares or Shares issued or grant of Restricted Shares or other Award made, in
whole or in part, unless listing, registration, qualification, consent or approval has been effected or obtained free of any conditions in a manner acceptable to the Committee. 
  
 (d) In the event that the disposition of shares acquired pursuant to the Plan is not covered by a then current registration
statement under the Securities Act, and is not otherwise exempt from such registration, such Shares shall be restricted against transfer to the extent required under the Securities Act, and the Committee may require any individual receiving Shares
pursuant to the Plan, as a condition precedent to receipt of such Shares, to represent to the Company in writing that such Shares are acquired for investment only and not with a view to distribution and that such Shares will be disposed of only if
registered for sale under the Securities Act or if there is an available exemption for such disposition. 
  
 (e) Notwithstanding any other provision of the Plan, the Company shall not be required to take or permit any action under the Plan or any Award Agreement
which, in the good-faith determination of the Company, would result in a material risk of a violation by the Company of Section 13(k) of the Exchange Act. 
  

	13.	INTERPRETATION AND AMENDMENTS; OTHER RULES. 

  
 The Committee may make such rules and regulations and establish such procedures for the administration of the Plan as it deems appropriate. Without
limiting the generality of the foregoing, the Committee may (i) determine the extent, if any, to which Options, Phantom Shares or Shares (whether or not Restricted Shares) or Dividend Equivalent Rights shall be forfeited (whether or not such
forfeiture 

  

 17 

 
is expressly contemplated hereunder); (ii) interpret the Plan and the Award Agreements hereunder, with such interpretations to be conclusive and binding
on all persons and otherwise accorded the maximum deference permitted by law; and (iii) take any other actions and make any other determinations or decisions that it deems necessary or appropriate in connection with the Plan or the
administration or interpretation thereof. In the event of any dispute or disagreement as to the interpretation of the Plan or of any rule, regulation or procedure, or as to any question, right or obligation arising from or related to the Plan, the
decision of the Committee shall be final and binding upon all persons. Unless otherwise expressly provided hereunder, the Committee, with respect to any grant, may exercise its discretion hereunder at the time of the Award or thereafter.
Notwithstanding the foregoing, no repricing of an Award shall be permitted. The Board may amend or terminate the Plan as it shall deem advisable, except that no amendment may adversely affect a Participant with respect to an Award previously granted
without such Participant’s written consent unless such amendments are required in order to comply with applicable laws and the restrictions limiting when an Award may be paid in cash and precluding Shares covered by Awards paid in cash from
being available again for other Awards may not be changed; provided, however, that the Plan may not be amended without shareholder approval in any case in which such an amendment in the absence of shareholder approval would cause the Plan to fail to
comply with any applicable legal requirement or applicable exchange or similar rule. 
  

	14.	CHANGES IN CAPITAL STRUCTURE. 

  
 (a) If (i) the Company or its Subsidiaries shall at any time be involved in a merger, consolidation, dissolution, liquidation, reorganization,
exchange of shares, sale of all or substantially all of the assets or shares of the Company or its Subsidiaries or a transaction similar thereto, (ii) any share dividend, share split, reverse share split, share combination, reclassification,
recapitalization or other similar change in the capital structure of the Company or its Subsidiaries, or any distribution to holders of Common Shares other than cash dividends, shall occur or (iii) any other event shall occur which in the
judgment of the Committee necessitates action by way of adjusting the terms of the outstanding Awards, then: 
  
 (x) the maximum aggregate number and kind of Shares which may be made subject to Options and Dividend Equivalent Rights under the Plan, the maximum
aggregate number and kind of Restricted Shares that may be granted under the Plan, the maximum aggregate number of Phantom Shares and other Awards which may be granted under the Plan may be appropriately adjusted by the Committee in its discretion;
and 
  
 (y) the Committee may take any such action as in its
discretion shall be necessary to maintain each Participants’ rights hereunder (including under their Award Agreements) with respect to Options, Phantom Shares, and Dividend Equivalent Rights (and, as appropriate, other Awards under the Plan),
so that they are substantially proportionate to the rights existing in such Options, Phantom Shares and Dividend Equivalent Rights (and other Awards under the Plan) without dilution or enlargement thereof prior to such event, including, without
limitation, adjustments in (A) the number of Options, Phantom Shares and Dividend Equivalent Rights (and other Awards under the Plan) granted, (B) the number and kind of shares or other property to be distributed in respect of Options,
Phantom Shares and Dividend Equivalent Rights (and other Awards under the Plan, as applicable), (C) the Option Price and Phantom Share Value, and (D) performance-based criteria established in connection with Awards; provided that, in the
discretion of the Committee, the foregoing clause (D) may also be applied in the case of any event relating to a Subsidiary if the event would have been covered under this Section 14(a) had the event related to the Company. 
  
 To the extent that such action shall include an increase or decrease in the number of Shares
(or units of other property then available) subject to all outstanding Awards, the number of Shares (or units) available 

  

 18 

 
under Section 4 shall be increased or decreased, as the case may be, proportionately, as may be determined by the Committee in its discretion.

  
 (b) Any Shares or other securities distributed to a Grantee
with respect to Restricted Shares or otherwise issued in substitution of Restricted Shares shall be subject to the restrictions and requirements imposed by Section 6, including depositing the certificates therefor with the Company together with
a share power and bearing a legend as provided in Section 6.2(a). 
  
 (c) If the Company shall be consolidated or merged with another corporation or other entity, each Grantee who has received Restricted Shares that is then subject to restrictions imposed by Section 6.3 may be required to deposit with
the successor corporation the certificates, if any, for the shares or securities or the other property that the Grantee is entitled to receive by reason of ownership of Restricted Shares in a manner consistent with Section 6.2(b), and such
stock, securities or other property shall become subject to the restrictions and requirements imposed by Section 6.3, and the certificates therefor or other evidence thereof shall bear a legend similar in form and substance to the legend set
forth in Section 6.2(a). 
  
 (d) If a Change of Control shall
occur, then subject to the provisions of the Plan, the Committee may make such adjustments to Awards as it, in its discretion, determines are necessary or appropriate in light of the Change of Control which adjustments may include, but are not
limited to, the substitution of shares other than shares of the Company as the shares optioned hereunder, and the acceleration of the exercisability of the Options, provided that the Committee determines that such adjustments do not have an adverse
economic impact on the Participant as determined at the time of the adjustments. 
  
 (e) The judgment of the Committee with respect to any matter referred to in this Section 14 shall be conclusive and binding upon each Participant without the need for any amendment to the Plan. 
  

	15.	MISCELLANEOUS. 

  
 15.1 No Rights to Employment or Other Service. 
  
 Nothing in the Plan or in any grant made pursuant to the Plan shall confer on any individual any right to continue in the employ or other service of the
Company or its Subsidiaries or interfere in any way with the right of the Company or its Subsidiaries and its shareholders to terminate the individual’s employment or other service at any time. 
  
 15.2 Right of First Refusal; Right of Repurchase. 
  
 At the time of grant, the Committee may provide in connection with any grant
made under the Plan that Shares received hereunder shall be subject to a right of first refusal pursuant to which the Company shall be entitled to purchase such Shares in the event of a prospective sale of the Shares, subject to such terms and
conditions as the Committee may specify at the time of grant or (if permitted by the Award Agreement) thereafter, and to a right of repurchase, pursuant to which the Company shall be entitled to purchase such Shares at a price determined by, or
under a formula set by, the Committee at the time of grant or (if permitted by the Award Agreement) thereafter. 
  

 19 

 15.3 No Fiduciary Relationship. 
  
 Nothing contained in the Plan (including without limitation Sections 7.5(c) and 8.4), and no action taken pursuant to
the provisions of the Plan, shall create or shall be construed to create a trust of any kind, or a fiduciary relationship between the Company or its Subsidiaries, or their officers or the Committee, on the one hand, and the Participant, the Company,
its Subsidiaries or any other person or entity, on the other. 
  
 15.4 No Fund Created. 
  
 Any and all payments
hereunder to any Participant under the Plan shall be made from the general funds of the Company (or, if applicable, a Participating Company), no special or separate fund shall be established or other segregation of assets made to assure such
payments, and the Phantom Shares (including for purposes of this Section 15.4 any accounts established to facilitate the implementation of Section 7.4(c)) and any other similar devices issued hereunder to account for Plan obligations do
not constitute Common Shares and shall not be treated as (or as giving rise to) property or as a trust fund of any kind; provided, however, that the Company may establish a mere bookkeeping reserve to meet its obligations hereunder or a trust or
other funding vehicle that would not cause the Plan to be deemed to be funded for tax purposes or for purposes of Title I of the Employee Retirement Income Security Act of 1974, as amended. The obligations of the Company under the Plan are unsecured
and constitute a mere promise by the Company to make benefit payments in the future and, to the extent that any person acquires a right to receive payments under the Plan from the Company, such right shall be no greater than the right of a general
unsecured creditor of the Company. (If any Affiliate of the Company is or is made responsible with respect to any Awards, the foregoing sentence shall apply with respect to such Affiliate.) Without limiting the foregoing, Phantom Shares and any
other similar devices issued hereunder to account for Plan obligations are solely a device for the measurement and determination of the amounts to be paid to a Grantee under the Plan, and each Grantee’s right in the Phantom Shares and any such
other devices is limited to the right to receive payment, if any, as may herein be provided. 
  
 15.5 Notices. 
  
 All
notices under the Plan shall be in writing, and if to the Company, shall be delivered to the Committee or mailed to its principal office, addressed to the attention of the Committee; and if to the Participant, shall be delivered personally, sent by
facsimile transmission or mailed to the Participant at the address appearing in the records of the Company. Such addresses may be changed at any time by written notice to the other party given in accordance with this Section 15.5. 

 
 15.6 Exculpation and Indemnification. 
  
 The Company shall indemnify and hold harmless the members of the Board and
the members of the Committee from and against any and all liabilities, costs and expenses incurred by such persons as a result of any act or omission to act in connection with the performance of such person’s duties, responsibilities and
obligations under the Plan, to the maximum extent permitted by law. 
  
 15.7 Captions. 
  
 The use of captions in this
Plan is for convenience. The captions are not intended to provide substantive rights. 
  

 20 

 15.8 Governing Law. 
  
 THE PLAN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO ANY
PRINCIPLES OF CONFLICTS OF LAW WHICH COULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK. 
  

 21 

  
 TABLE OF CONTENTS

  

					
	 	  	 	  	Page

	 1.
	  	DEFINITIONS	  	1
			
	 2.
	  	EFFECTIVE DATE AND TERMINATION OF PLAN	  	5
			
	 3.
	  	ADMINISTRATION OF PLAN	  	5
			
	 4.
	  	SHARES AND UNITS SUBJECT TO THE PLAN	  	5
			
	 5.
	  	PROVISIONS APPLICABLE TO STOCK OPTIONS	  	6
			
	 6.
	  	PROVISIONS APPLICABLE TO RESTRICTED SHARES	  	10
			
	 7.
	  	PROVISIONS APPLICABLE TO PHANTOM SHARES	  	11
			
	 8.
	  	PROVISIONS APPLICABLE TO DIVIDEND EQUIVALENT RIGHTS	  	14
			
	 9.
	  	OTHER EQUITY-BASED AWARDS	  	15
			
	 10.
	  	PERFORMANCE GOALS	  	15
			
	 11.
	  	TAX WITHHOLDING	  	16
			
	 12.
	  	REGULATIONS AND APPROVALS	  	17
			
	 13.
	  	INTERPRETATION AND AMENDMENTS; OTHER RULES	  	17
			
	 14.
	  	CHANGES IN CAPITAL STRUCTURE	  	18
			
	 15.
	  	MISCELLANEOUS	  	19

  

 -i- 

 TABERNA REALTY FINANCE TRUST 
 2005 EQUITY INCENTIVE PLAN

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}]]