Document:

Exhibit 10.7

 

PERFORMANCE RESTRICTED STOCK UNIT AGREEMENT

PURSUANT TO THE OMEGA HEALTHCARE INVESTORS, INC.

2013 STOCK INCENTIVE PLAN

 

The grant pursuant to this
agreement (this “Agreement”) is made as of the Grant Date, by Omega Healthcare Investors, Inc. (the “Company”)
to ______________ (the “Recipient”).

 

Upon and subject to this
Agreement (which shall include the Terms and Conditions and Exhibits appended to the execution page), the Company hereby awards
as of the Grant Date to the Recipient, the opportunity to earn Vested Restricted Units (the “Restricted Unit Grant”
or the “Award”). Underlined and capitalized terms in Items A through F below shall have the meanings there ascribed
to them.

 

		A.	Grant Date:  December 31, 2013.

 

		B.	Plan (under which Restricted Unit Grant is granted): Omega Healthcare Investors, Inc. 2013
Stock Incentive Plan.

 

		C.	Vested Restricted Units: The Recipient shall earn a number of Vested Restricted Units determined
pursuant to Exhibit 1. Each Vested Restricted Unit represents the Company’s unsecured obligation to issue one share
of the Company’s common stock (“Common Stock”) and related Dividend Equivalents (as defined below) in
accordance with this Agreement.

 

		D.	Dividends Equivalents.  Each Vested Restricted Unit shall accrue Dividend Equivalents,
an amount equal to the dividends per share paid on one share of Common Stock to a shareholder of record on or after the Grant Date
and until the date that the Vested Shares ( as defined below) are issued.

 

		E.	Distribution Date of Vested Shares.   Shares of Common Stock attributable to Vested
Restricted Units (“Vested Shares”) shall be issued and distributed upon the earlier of the dates listed below,
subject to receipt from the Recipient of the required tax withholding:

 

		1.	within ten (10) business days following the last day of each Performance Period; or

 

		2.	the date of a Change in Control.

 

Notwithstanding the foregoing, distribution
shall be delayed to the extent provided in any deferral agreement between the Recipient and the Company 

 

		F.	Distribution Date of Dividend Equivalents.  Dividend Equivalents attributable to Vested
Restricted Units shall be distributed to the Recipient on the same date as Vested Shares are distributable to the Recipient under
Item E above, except as otherwise provided in any deferral agreement.

 

    	 

    	 

    

  

IN WITNESS WHEREOF, the
Company has executed this Agreement to be effective as of the Grant Date set forth above.

 

	 	OMEGA HEALTHCARE INVESTORS, INC.
	 	 	 	 
	 	By:	 	 

 

	 	Title: 	 	 

 

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TERMS AND CONDITIONS TO THE

PERFORMANCE RESTRICTED STOCK UNIT AGREEMENT

PURSUANT TO THE OMEGA HEALTHCARE INVESTORS,
INC.

2013 STOCK INCENTIVE PLAN

 

1.          Payment
for Vested Restricted Units.   The Company shall issue in book entry form in the name of the Recipient, or issue
and deliver to the Recipient a share certificate representing, the Vested Shares on the Distribution Date of Vested Shares.

 

2.          Dividends
Equivalents.    The Company shall pay Dividend Equivalents attributable to Vested Restricted Units on the Distribution
Date of Dividend Equivalents, subject to required tax withholding.

 

3.          Tax
Withholding. 

 

(a)          The
minimum amount of the required tax obligations imposed on the Company by reason of the issuance of the Vested Shares shall be satisfied
by reducing the actual number of Vested Shares by the number of whole shares of Common Stock which, when multiplied by the Fair
Market Value of the Common Stock on the Distribution Date, is sufficient, together with cash in lieu of any fractional share, to
satisfy such tax withholding, assuming that (i) the Recipient does not make a valid election to satisfy tax withholding in cash
pursuant to Subsection (b), and (ii) the Committee does not determine that tax withholding will be required to be satisfied in
another manner.

 

(b)          However,
the Recipient may elect in writing by notice to the Company received at least ten (10) days before the earliest Distribution Date
to satisfy such tax withholding obligation in cash by the earliest Distribution Date, as provided in Subsection (a)(i). If the
Recipient fails to timely satisfy payment of the cash amount, then Subsection (a) shall apply.

 

(c)          
To the extent that the Recipient is required to satisfy the tax withholding obligation in this Section in cash, the Company shall
withhold the cash from any cash payments then owed to the Recipient, or if none, the Recipient shall timely remit the cash amount.

 

(d)          If
the Recipient does not timely satisfy payment of the tax withholding obligation, the Recipient will forfeit the Vested Shares.

 

4.          Restrictions
on Transfer.  Except for the transfer by bequest or inheritance, the Recipient shall
not have the right to make or permit to exist any transfer or hypothecation, whether outright or as security, with or without consideration,
voluntary or involuntary, of all or any part of any right, title or interest in or to this Award. Any such disposition not made
in accordance with this Agreement shall be deemed null and void. Any permitted transferee under this Section shall be bound by
the terms of this Agreement.

 

    	 

    	 

    

  

5.          Change
in Capitalization.

 

(a)          The
number and kind of shares issuable under this Agreement shall be proportionately adjusted for any non-reciprocal transaction between
the Company and the holders of capital stock of the Company that causes the per share value of the shares of Common Stock subject
to the Award to change, such as a stock dividend, stock split, spinoff, rights offering, or recapitalization through a large, non-recurring
cash dividend (each, an “Equity Restructuring”). No fractional shares shall be issued in making such adjustment.

 

(b)          In
the event of a merger, consolidation, reorganization, extraordinary dividend, sale of substantially all of the Company’s
assets, other material change in the capital structure of the Company, or a tender offer for shares of Common Stock, in each case
that does not constitute an Equity Restructuring, the Committee shall take such action to make such adjustments with respect to
the shares of Common Stock issuable hereunder or the terms of this Agreement as the Committee, in its sole discretion, determines
in good faith is necessary or appropriate, including, without limitation, adjusting the number and class of securities subject
to the Award, substituting cash, other securities, or other property to replace the Award, or removing of restrictions.

 

(c)          All
determinations and adjustments made by the Committee pursuant to this Section will be final and binding on the Recipient. Any action
taken by the Committee need not treat all recipients of awards under the Plan equally.

 

(d)          The
existence of the Plan and the Restricted Unit Grant shall not affect the right or power of the Company to make or authorize any
adjustment, reclassification, reorganization or other change in its capital or business structure, any merger or consolidation
of the Company, any issue of debt or equity securities having preferences or priorities as to the Common Stock or the rights thereof,
the dissolution or liquidation of the Company, any sale or transfer of all or part of its business or assets, or any other corporate
act or proceeding.

 

6.          Governing
Laws.   This Award shall be construed, administered and enforced according to the laws of the State of Maryland;
provided, however, no Vested Shares shall be issued except, in the reasonable judgment of the Committee, in compliance with exemptions
under applicable state securities laws of the state in which Recipient resides, and/or any other applicable securities laws.

 

7.          Successors.
 This Agreement shall be binding upon and inure to the benefit of the heirs, legal representatives, successors, and permitted
assigns of the parties.

 

8.          Notice.
   Except as otherwise specified herein, all notices and other communications under this Agreement shall be in writing
and shall be deemed to have been given if personally delivered or if sent by registered or certified United States mail, return
receipt requested, postage prepaid, addressed to the proposed recipient at the last known address of the

 

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recipient. Any party may designate any other
address to which notices shall be sent by giving notice of the address to the other parties in the same manner as provided herein.

 

9.          Severability.
  In the event that any one or more of the provisions or portion thereof contained in this Agreement shall for any reason
be held to be invalid, illegal, or unenforceable in any respect, the same shall not invalidate or otherwise affect any other provisions
of this Agreement, and this Agreement shall be construed as if the invalid, illegal or unenforceable provision or portion thereof
had never been contained herein.

 

10.         Entire
Agreement.    Subject to the terms and conditions of the Plan, this Agreement expresses the entire understanding
and agreement of the parties with respect to the subject matter.

 

11.         Specific
Performance.   In the event of any actual or threatened default in, or breach of, any of the terms, conditions and
provisions of this Agreement, the party or parties who are thereby aggrieved shall have the right to specific performance and injunction
in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative.

 

12.         No
Right to Continued Retention.   Neither the establishment of the Plan nor the Award hereunder shall be construed
as giving Recipient the right to continued service with the Company or an Affiliate.

 

13.         Headings
and Capitalized Terms.    Paragraph headings used herein are for convenience of reference only and shall not
be considered in construing this Agreement. Capitalized terms used, but not defined, in this Agreement
shall be given the meaning ascribed to them in the Plan.

 

14.         Definitions.
  As used in this Agreement:

 

“Beginning Stock Price”
means the average closing price per share of Common Stock for the months of November and December 2013 on the exchange on which
Common Stock is traded.

 

“Below Threshold Relative
TSR” means that Relative Total Shareholder Return is less than -300 basis points.

 

“Below Threshold TSR”
means the Company has achieved Total Shareholder Return of less than eight percent (8%).

 

“Cause” shall
have the meaning set forth in the employment agreement then in effect between the Recipient and the Company, or, if there is none,
then Cause shall mean the occurrence of any of the following events:

 

(a)          willful
refusal by the Recipient to follow a lawful direction of the person to whom the Recipient reports or the Board of Directors of
the Company (the “Board”), provided the direction is not materially inconsistent with the duties

 

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or responsibilities of the Recipient’s
position with the Company, which refusal continues after the Board has again given the direction in writing;

 

(b)          willful
misconduct or reckless disregard by the Recipient of his duties or with respect to the interest or material property of the Company;

 

(c)          intentional
disclosure by the Recipient to an unauthorized person of Confidential Information or Trade Secrets, which causes material harm
to the Company;

 

(d)          any
act by the Recipient of fraud against, material misappropriation from or significant dishonesty to either the Company or an Affiliate,
or any other party, but in the latter case only if in the reasonable opinion of at least two-thirds of the members of the Board
(excluding the Recipient), such fraud, material misappropriation, or significant dishonesty could reasonably be expected to have
a material adverse impact on the Company or its Affiliates; or

 

(e)          commission
by the Recipient of a felony as reasonably determined by at least two-thirds of the members of the Board (excluding the Recipient).

 

“Change in Control”
means any one of the following events which occurs following the Grant Date:

 

(a)          the
acquisition within a twelve (12) month period, directly or indirectly, by any “person” or “persons” (as
such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than the Company or
any employee benefit plan of the Company or an Affiliate, or any corporation pursuant to a reorganization, merger or consolidation,
of equity securities of the Company that in the aggregate represent thirty percent (30%) or more of the total voting power of the
Company’s then outstanding equity securities;

 

(b)          the
acquisition, directly or indirectly, by any “person” or “persons” (as such terms are used in Sections 13(d)
and 14(d) of the Securities Exchange Act of 1934, as amended), other than the Company or any employee benefit plan of the Company
or an Affiliate, or any corporation pursuant to a reorganization, merger or consolidation of equity securities of the Company,
resulting in such person or persons holding equity securities of the Company that, together with equity securities already held
by such person or persons, in the aggregate represent more than fifty percent (50%) of the total fair market value or total voting
power of the Company’s then outstanding equity securities;

 

(c)          individuals
who as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at
least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election,
or nomination for election by the Company’s shareholders, was approved by a vote of at least two-thirds of the directors
then comprising the Incumbent Board shall be considered as though such individual

 

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were a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a person other than the Board;

 

(d)          a
reorganization, merger or consolidation, with respect to which persons who were the holders of equity securities of the Company
immediately prior to such reorganization, merger or consolidation, immediately thereafter, own equity securities of the surviving
entity representing less than fifty percent (50%) of the combined ordinary voting power of the then outstanding voting securities
of the surviving entity; or

 

(e)          the
acquisition within a twelve (12) month period, directly or indirectly, by any “person” or “persons” (as
such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than any corporation
pursuant to a reorganization, merger or consolidation, of assets of the Company that have a total gross fair market value equal
to or more than eighty-five percent (85%) of the total gross fair market value of all of the assets of the Company immediately
before such acquisition.

 

Notwithstanding the foregoing, no
Change in Control shall be deemed to have occurred for purposes of this Award (a) unless the event also constitutes a “change
in the ownership or effective control of the corporation or in the ownership of a substantial portion of the assets of the corporation”
within the meaning of Code Section 409A(a)(2)(v), or (b) by reason of any actions or events in which the Recipient participates
in a capacity other than in his capacity as an officer, employee, or director of the Company or an Affiliate.

 

“Confidential Information”
means data and information relating to the business of the Company or an Affiliate (which does not rise to the status of a Trade
Secret) which is or has been disclosed to the Recipient or of which the Recipient became aware as a consequence of or through his
relationship to the Company or an Affiliate and which has value to the Company or an Affiliate and is not generally known to its
competitors. Confidential Information shall not include any data or information that has been voluntarily disclosed to the public
by the Company or an Affiliate (except where such public disclosure has been made by the Recipient without authorization) or that
has been independently developed and disclosed by others, or that otherwise enters the public domain through lawful means without
breach of any obligations of confidentiality owed to the Company or any of its Affiliates.

 

“Ending Stock Price”
means the average closing price per share of Common Stock for the months of November and December (a) 2014, with respect to Performance
Period 2014, (b) 2015, with respect to Performance Period 2015, (c) 2016, with respect to Performance Period 2016, in each case
on the exchange on which Common Stock is traded, unless a Change in Control occurs on or before what would otherwise be the last
day of the applicable Performance Period, in which case the term means the value per share

 

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determined as of the date of the
Change in Control, such value to be determined by the Compensation Committee in its reasonable discretion based on the actual or
implied price per share paid in the Change in Control transaction.

 

“Good Reason”
shall have the meaning set forth in the employment agreement then in effect between the Recipient and the Company, or, if there
is none, then Good Reason shall mean the occurrence of an event listed in Subsection (a) through (c) below:

 

(a)          the
Recipient experiences a material diminution of the Recipient’s responsibilities of his position, as reasonably modified by
the person to whom the Recipient reports or the Board from time to time, such that the Recipient would no longer have responsibilities
substantially equivalent to those of other executives holding equivalent positions at companies with similar revenues and market
capitalization;

 

(b)          the
Company reduces the Recipient’s annual base salary or annual bonus opportunity at high, target or threshold performance as
a percentage of annual base salary; or

 

(c)          the
Company requires the Recipient to relocate the Recipient’s primary place of employment to a new location that is more than
fifty (50) miles from its current location (determined using the most direct driving route), without the Recipient’s consent;

 

provided however,
as to each event in Subsection (a) through (c),

 

(i)          the
Recipient gives written notice to the Company within ten (10) days following the event or receipt of notice of the event of his
objection to the event;

 

(ii)         the
Company fails to remedy the event within ten (10) days following the Recipient’s written notice; and

 

(iii)        the
Recipient terminates his employment within thirty (30) days following the Company’s failure to remedy the event.

 

“High Relative TSR”
means that Relative Total Shareholder Return is +300 basis points or more.

 

“High TSR” means
the Company has achieved Total Shareholder Return of at least twelve percent (12%).

 

“Performance Period”
means Performance Period 2014, Performance Period 2015 or Performance Period 2016.

 

“Performance Period 2014”
means the period from and including December 31, 2013 through the earlier of December 31, 2014 or the date of a Change in Control.

 

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“Performance Period 2015”
means the period from and including December 31, 2013 through the earlier of December 31, 2015 or the date of a Change in Control.

 

“Performance Period 2016”
means the period from and including December 31, 2013 through the earlier of December 31, 2016 or the date of a Change in Control.

 

“Relative Total Shareholder
Return” means the Company’s total shareholder return expressed as a positive or negative number of basis points
relative to the average total shareholder return reported for the MSCI U.S. REIT Index (the “Index”) for the Performance
Period. For this purpose, the Company’s total shareholder return shall be calculated in the same manner as total shareholder
return is calculated for the Index, and the average closing price per share for the November and December before the beginning,
and before the end, of the Performance Period shall be used for calculating both the Company’s total shareholder return and
total shareholder return for the Index.

 

“Target Relative TSR”
means that Relative Total Shareholder Return is 0 basis points.

 

“Target TSR” means
the Company has achieved Total Shareholder Return of ten percent (10%).

 

“Threshold Relative TSR”
means that Relative Total Shareholder Return is -300 basis points.

 

“Threshold TSR”
means that the Company has achieved Total Shareholder Return of eight percent (8%).

 

“Total Shareholder Return”
means the compound annualized growth rate, expressed as a percentage, in the price of Common Stock over the Performance Period
due to Common Stock price appreciation and dividends declared to a shareholder of record with respect to one share of Common Stock
during the Performance Period and assuming that dividends are reinvested. For this purpose, the beginning of the Performance Period
price is the Beginning Stock Price and the end of the Performance Period price is the Ending Stock Price. Total Shareholder Return
shall be calculated in substantially the same manner as total shareholder return is calculated for the MSCI U.S. REIT Index.

 

“Trade Secrets”
means information including, but not limited to, technical or nontechnical data, formulae, patterns, compilations, programs, devices,
methods, techniques, drawings, processes, financial data, financial plans, product plans or lists of actual or potential customers
or suppliers which (i) derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable
by proper means by, other persons who can obtain economic value from its disclosure or use, and (ii) is the subject of efforts
that are reasonable under the circumstances to maintain its secrecy.

 

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EXHIBIT
1

 

		A.	The number of Vested Restricted Units is determined as of the last day of each Performance Period
by adding the number determined in the TSR Chart and the Relative TSR Chart for the Performance Period set forth below; provided
that the Recipient shall vest in Vested Restricted Units only if the Recipient remains an employee, director or consultant of the
Company or an Affiliate during the entire Performance Period.

 

2014 Performance
Period:

 

TSR Chart

 

	
        Below

        Threshold

        TSR
	
        *Threshold

        TSR
	
        *Target

        TSR
	
        *High

        TSR

	
        Zero

        Vested

        Units
	 	 	 

 

Relative TSR Chart

 

	
        Below

        Threshold

        Relative TSR
	
        **Threshold

        Relative TSR
	
        **Target

        Relative TSR
	
        **High

        Relative TSR

	
        Zero

        Vested

        Units
	 	 	 

 

2015 Performance
Period:

 

TSR Chart

 

	
        Below

        Threshold

        TSR
	
        *Threshold

        TSR
	
        *Target

        TSR
	
        *High

        TSR

	
        Zero

        Vested

        Units
	 	 	 

 

Relative TSR Chart

 

	
        Below

        Threshold

        Relative TSR
	
        **Threshold

        Relative TSR
	
        **Target

        Relative TSR
	
        **High

        Relative TSR

	
        Zero

        Vested

        Units
	 	 	 

 

    	 

    	 

    

  

2016 Performance
Period:

 

TSR Chart

 

	
        Below

        Threshold

        TSR
	
        *Threshold

        TSR
	
        *Target

        TSR
	
        *High

        TSR

	
        Zero

        Vested

        Units
	 	 	 

 

Relative TSR Chart

 

	
        Below

        Threshold

        Relative TSR
	
        **Threshold

        Relative TSR
	
        **Target

        Relative TSR
	
        **High

        Relative TSR

	
        Zero

        Vested

        Units
	 	 	 

 

		*	If Total Shareholder Return falls between Threshold TSR and Target TSR or between Target TSR and
High TSR, the number of Vested Restricted Units under the TSR Chart shall be determined by rounding actual Total Shareholder Return
to the closest (but rounded up in the event of a tie) 0.5% percentage points and then applying linear interpolation based on the
percentage points by which Threshold TSR or Target TSR, as so adjusted, respectively, is exceeded.

 

		**	If Relative Total Shareholder Return falls between Threshold Relative TSR and Target Relative TSR
or between Target Relative TSR and High Relative TSR, the number of Vested Restricted Units under the Relative TSR Chart shall
be determined by rounding Relative TSR to the closest (but rounded up in the event of a tie) 50 basis points and then applying
linear interpolation based on the basis points by which Threshold Relative TSR or Target Relative TSR, respectively, is exceeded.

 

		B.	Notwithstanding the foregoing, if the Recipient dies or becomes subject to a Disability while an
employee, director or consultant of the Company or an Affiliate, the Recipient resigns from the Company for Good Reason or the
Company terminates the Recipient’s employment without Cause (each such event referred to as a “Qualifying Termination”),
in each case during the Performance Period and more than sixty (60) days before a Change in Control, the Recipient shall earn upon
completion of the Performance Period a number of Vested Restricted Units equal to the number of Vested Restricted Units determined
in the charts above (or if a Change in Control occurs after the Qualifying Termination and on or before what would otherwise be
the last day of the Performance Period, a number of Vested Restricted Units determined pursuant to Section C.1. below), multiplied
by a fraction, the numerator of which is the number of days elapsed in the Performance Period through

 

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the date of such event and the denominator
of which is 365 in the case of Performance Period 2014, 730 in the case of Performance Period 2015, and 1,095 in the case of Performance
Period 2016.

 

		C.	Notwithstanding any other provision of this Agreement, if a Change in Control occurs upon or after
the Grant Date and on or before what would otherwise be the last day of the Performance Period, and (i) the Recipient remains an
employee, director or consultant of the Company or an Affiliate during the entire Performance Period until the date of the Change
in Control, or (ii) if within sixty (60) days before the Change in Control, the Recipient incurs a Qualifying Termination, the
Recipient shall be 100% vested in, as of the date of the Change in Control the number of units determined from the Relative TSR
Chart based on the basis points of Relative Total Shareholder Return achieved for the Performance Period through the date of the
Change in Control, plus

 

		a.	the number of units determined in the TSR Chart if the applicable level of Total Shareholder Return
for the full Performance Period (determined without regard to the shortening of the period as a result of the Change in Control)
is achieved, or

 

		b.	a number of units equal to the number of units determined in the TSR Chart multiplied by a fraction,
the numerator of which is the number of days elapsed in the Performance Period through the date of the Change in Control and the
denominator of which is 365 in the case of Performance Period 2014, 730 in the case of Performance Period 2015, and 1,095 in the
case of Performance Period 2016, if the applicable level of Total Shareholder Return has been achieved based on annualized performance
to the date of the Change in Control but not for the full Performance Period (determined without regard to the shortening of the
period as a result of the Change in Control), or

 

		c.	a number of units determined by interpolation between the numbers in clause (a) and (b) above if
the applicable level of Total Shareholder Return has been exceeded based on performance to the date of the Change in Control but
is less than the applicable level for the full three year Performance Period (determined without regard to the shortening of the
period as a result of the Change in Control).

 

		D.	The portion of the Restricted Unit Grant that has not become Vested Restricted Units as of the
earlier of the last day of the Performance Period, or, except as provided in Item C above, as of the date the Recipient ceases
to be an employee, director, or consultant of the Company or an Affiliate shall be forfeited.

 

    	3Exhibit 10.8

 

RESTRICTED STOCK UNITS AWARD

PURSUANT TO THE OMEGA HEALTHCARE INVESTORS,
INC.

2013 STOCK INCENTIVE PLAN

 

THIS AGREEMENT is made
as of the Grant Date, by Omega Healthcare Investors, Inc. (the “Company”) to _______________ (the “Recipient”).

 

Upon and subject to the
Terms and Conditions attached hereto and incorporated herein by reference as part of this Agreement, the Company hereby awards
as of the Grant Date to the Recipient the Restricted Stock Units (the “Restricted Stock Units Grant” or the “Award”).

 

		A.	Grant Date: January 1, 2014.

 

		B.	Plan: (under which Restricted Stock Units Grant is granted): Omega Healthcare Investors,
Inc. 2013 Stock Incentive Plan.

 

		C.	Restricted Stock Units: _________ Restricted Stock Units, which represents the right of
the Recipient to receive upon vesting the same number of shares of the Company’s common stock (“Common Stock”),
subject to adjustment as provided in the attached Terms and Conditions.

 

		D.	Dividend Equivalents:   Each Restricted Stock Unit shall accrue Dividend Equivalents, an amount
equal to the dividends payable on one share of Common Stock to a shareholder of record on or after the Grant Date and until the
date that the shares of Common Stock attributable to the Vested Stock Units are issued or the Restricted Stock Units are forfeited.

 

		E.	Distribution Date of Common Stock:   The shares of Common Stock attributable to the Vested
Stock Units shall be issued to the Recipient on the date the Restricted Stock Units become vested. Notwithstanding the foregoing
or any other provision hereof, distribution of the shares of Common Stock shall be delayed to the extent provided in any deferral
agreement between the Recipient and the Company.

 

		F.	Distribution Date of Dividend Equivalents:   The Dividend Equivalents shall be paid to the
Recipient on the same date that the related dividends are paid to shareholders of record, subject to required tax withholding.
Notwithstanding the foregoing or any other provision hereof, distribution of Dividend Equivalents shall be delayed to the extent
provided in any deferral agreement between the Recipient and the Company and shall be paid in the form provided in such agreement.

 

		G.	Vesting Schedule:   The Restricted Stock Units shall vest according to the Vesting Schedule
attached hereto as Exhibit 1 (the “Vesting Schedule”). The

 

    	 

    	 

    

 

Restricted Stock Units which have become
vested pursuant to the Vesting Schedule are herein referred to as the “Vested Stock Units.”

 

IN WITNESS WHEREOF, the
Company has executed this Agreement as of the Grant Date set forth above.

 

	 	OMEGA HEALTHCARE INVESTORS, INC.
	 	 
	 	By:	 

 

	 	Title:	 

 

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TERMS AND CONDITIONS TO THE

RESTRICTED STOCK UNITS AGREEMENT

PURSUANT TO THE OMEGA HEALTHCARE INVESTORS,
INC.

2013 STOCK INCENTIVE PLAN

 

1.           Vested
Stock Units.   Upon vesting, the Company shall cause the shares of Common Stock attributable to the Vested Stock Units to be
issued in book-entry form in the name of the Recipient.

 

2.           Tax
Withholding.

 

(a)          The
minimum amount of the required tax obligations imposed on the Company by reason of the issuance of the shares of Common Stock attributable
to Vested Stock Units shall be satisfied by reducing the actual number of shares of Common Stock by the number of whole shares
of Common Stock which, when multiplied by the Fair Market Value of the Common Stock on the Distribution Date of Common Stock, is
sufficient, together with cash in lieu of any fractional share, to satisfy such tax withholding, assuming that (i) the Recipient
does not make a valid election to satisfy tax withholding in cash pursuant to Subsection (b), and (ii) the Committee does not determine
that tax withholding will be required to be satisfied in another manner.

 

(b)          However,
the Recipient may elect in writing by notice to the Company received at least ten (10) days before the earliest Distribution Date
of Common Stock to satisfy such tax withholding obligation in cash by the earliest Distribution Date of Common Stock, as provided
in Subsection (a)(i). If the Recipient fails to timely satisfy payment of the cash amount, then Subsection (a) shall apply.

 

(c)          
To the extent that the Recipient is required to satisfy the tax withholding obligation in this Section in cash, the Company shall
withhold the cash from any cash payments then owed to the Recipient, or if none, the Recipient shall timely remit the cash amount.

 

(d)           If
the Recipient does not timely satisfy payment of the tax withholding obligation, the Recipient will forfeit the Vested Stock Units.

 

3.           Restrictions
on Transfer of Restricted Stock Units. Except for the transfer of any Restricted Stock Units by bequest or inheritance, the
Recipient shall not have the right to make or permit to exist any transfer or hypothecation, whether outright or as security, with
or without consideration, voluntary or involuntary, of all or any part of any right, title or interest in or to any Restricted
Stock Units. Any such disposition not made in accordance with this Agreement shall be deemed null and void. Any permitted transferee
under this Section shall be bound by the terms of this Agreement.

 

4.           Change
in Capitalization.

 

(a)          The
number and kind of shares issuable under this Agreement shall

 

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be proportionately
adjusted for nonreciprocal transactions between the Company and the holders of Common Stock that cause the per share value of the
shares of Common Stock subject to this Award to change, such as a stock dividend, stock split, spinoff, or rights offering (each
an “Equity Restructuring”). No fractional shares shall be issued in making such adjustment.

 

(b)          In
the event of a merger, consolidation, extraordinary dividend, sale of substantially all of the Company’s assets or other
material change in the capital structure of the Company, or a tender offer for shares of Common Stock, or other reorganization
of the Company, in each case that does not result in an Equity Restructuring or a Change in Control, the Compensation Committee
shall take such action to make such adjustments with respect to the Restricted Stock Units as the Compensation Committee, in its
sole discretion, determines in good faith is necessary or appropriate, including, without limitation, adjusting the number and
class of securities subject to the Award, substituting cash, other securities, or other property to replace the Award, or removing
of restrictions.

 

(c)          All
determinations and adjustments made by the Compensation Committee pursuant to this Section will be final and binding on the Recipient.
Any action taken by the Compensation Committee need not treat all recipients of awards under the Plan equally.

 

(d)          The
existence of the Plan and the Restricted Stock Units Grant shall not affect the right or power of the Company to make or authorize
any adjustment, reclassification, reorganization or other change in its capital or business structure, any merger or consolidation
of the Company, any issue of debt or equity securities having preferences or priorities as to the Common Stock or the rights thereof,
the dissolution or liquidation of the Company, any sale or transfer of all or part of its business or assets, or any other corporate
act or proceeding.

 

5.           Governing
Laws.   This Award shall be construed, administered and enforced according to the laws of the State of Maryland; provided, however,
no shares of Common Stock shall be issued except, in the reasonable judgment of the Compensation Committee, in compliance with
exemptions under applicable state securities laws of the state in which Recipient resides, and/or any other applicable securities
laws.

 

6.           Successors.
This Agreement shall be binding upon and inure to the benefit of the heirs, legal representatives, successors, and permitted assigns
of the parties.

 

7.           Notice.
  Except as otherwise specified herein, all notices and other communications under this Agreement shall be in writing and shall be
deemed to have been given if personally delivered or if sent by registered or certified United States mail, return receipt requested,
postage prepaid, addressed to the proposed recipient at the last known address of the Recipient. Any party may designate any other
address to which notices shall be sent by giving notice of the address to the other parties in the same manner as provided herein.

 

    	4

    	 

    

 

8.           Severability.
In the event that any one or more of the provisions or portion thereof contained in this Agreement shall for any reason be held
to be invalid, illegal, or unenforceable in any respect, the same shall not invalidate or otherwise affect any other provisions
of this Agreement, and this Agreement shall be construed as if the invalid, illegal or unenforceable provision or portion thereof
had never been contained herein.

 

9.           Entire
Agreement.   Subject to the terms and conditions of the Plan, this Agreement expresses the entire understanding and agreement
of the parties with respect to the subject matter.

 

10.         Headings
and Capitalized Terms.   Paragraph headings used herein are for convenience of reference only and shall not be considered in
construing this Award. Capitalized terms used, but not defined, in this Agreement
shall be given the meaning ascribed to them in the Plan.

 

11.         Specific
Performance.   In the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions
of this Agreement, the party or parties who are thereby aggrieved shall have the right to specific performance and injunction in
addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative.

 

12.         No
Right to Continued Retention.   Neither the establishment of the Plan nor the award of Restricted Stock Units hereunder shall
be construed as giving Recipient the right to continued service with the Company or an Affiliate.

 

13.         Definitions.
  As used in these Terms and Conditions and this Agreement:

 

“Cause”
shall have the meaning set forth in the employment agreement then in effect between the Recipient and the Company, or, if there
is none, then Cause shall mean the occurrence of any of the following events:

 

(a)          willful
refusal by the Recipient to follow a lawful direction of the person to whom the Recipient reports or the Board of Directors of
the Company (the “Board”), provided the direction is not materially inconsistent with the duties or responsibilities
of the Recipient’s position with the Company, which refusal continues after the Board has again given the direction in writing;

 

(b)          willful
misconduct or reckless disregard by the Recipient of his duties or with respect to the interest or material property of the Company;

 

(c)          intentional
disclosure by the Recipient to an unauthorized person of Confidential Information or Trade Secrets, which causes material harm
to the Company;

 

(d)          any
act by the Recipient of fraud against, material misappropriation from or significant dishonesty to either the Company or an Affiliate,
or any other party, but in

 

    	5

    	 

    

 

the latter case only if in the reasonable
opinion of at least two-thirds of the members of the Board (excluding the Recipient), such fraud, material misappropriation, or
significant dishonesty could reasonably be expected to have a material adverse impact on the Company or its Affiliates; or

 

(e)          commission
by the Recipient of a felony as reasonably determined by at least two-thirds of the members of the Board (excluding the Recipient).

 

“Change
in Control” means any one of the following events which occurs following the Grant Date:

 

(a)          the
acquisition within a twelve (12) month period, directly or indirectly, by any “person” or “persons” (as
such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than the Company or
any employee benefit plan of the Company or an Affiliate, or any corporation pursuant to a reorganization, merger or consolidation,
of equity securities of the Company that in the aggregate represent thirty percent (30%) or more of the total voting power of the
Company’s then outstanding equity securities;

 

(b)          the
acquisition, directly or indirectly, by any “person” or “persons” (as such terms are used in Sections 13(d)
and 14(d) of the Securities Exchange Act of 1934, as amended), other than the Company or any employee benefit plan of the Company
or an Affiliate, or any corporation pursuant to a reorganization, merger or consolidation of equity securities of the Company,
resulting in such person or persons holding equity securities of the Company that, together with equity securities already held
by such person or persons, in the aggregate represent more than fifty percent (50%) of the total fair market value or total voting
power of the Company’s then outstanding equity securities;

 

(c)          individuals
who as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at
least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election,
or nomination for election by the Company’s shareholders, was approved by a vote of at least two-thirds of the directors
then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding,
for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election
contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents
by or on behalf of a person other than the Board;

 

(d)          a
reorganization, merger or consolidation, with respect to which persons who were the holders of equity securities of the Company
immediately prior to such reorganization, merger or consolidation, immediately thereafter, own equity securities of the surviving
entity representing less than fifty percent (50%)

 

    	6

    	 

    

 

of the combined ordinary voting power
of the then outstanding voting securities of the surviving entity; or

 

(e)          the
acquisition within a twelve (12) month period, directly or indirectly, by any “person” or “persons” (as
such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended), other than any corporation
pursuant to a reorganization, merger or consolidation, of assets of the Company that have a total gross fair market value equal
to or more than eighty-five percent (85%) of the total gross fair market value of all of the assets of the Company immediately
before such acquisition.

 

Notwithstanding the foregoing,
no Change in Control shall be deemed to have occurred for purposes of this Agreement (a) unless the event also constitutes a “change
in the ownership or effective control of the corporation or in the ownership of a substantial portion of the assets of the corporation”
within the meaning of Code Section 409A(a)(2)(v), or (b) by reason of any actions or events in which the Recipient participates
in a capacity other than in his capacity as an officer, employee, or director of the Company or an Affiliate.

 

“Confidential
Information” means data and information relating to the Business of the Company or an Affiliate (which does not rise
to the status of a Trade Secret) which is or has been disclosed to the Recipient or of which the Recipient became aware as a consequence
of or through his relationship to the Company or an Affiliate and which has value to the Company or an Affiliate and is not generally
known to its competitors. Confidential Information shall not include any data or information that has been voluntarily disclosed
to the public by the Company or an Affiliate (except where such public disclosure has been made by the Recipient without authorization)
or that has been independently developed and disclosed by others, or that otherwise enters the public domain through lawful means
without breach of any obligations of confidentiality owed to the Company or any of its Affiliates.

 

“Good Reason”
shall have the meaning set forth in the employment agreement then in effect between the Recipient and the Company, or, if there
is none, then Good Reason shall mean the occurrence of all of the events listed in either (a) or (b) below:

 

(a)          (i)
the Recipient experiences a material diminution of the Recipient’s responsibilities of his position, as reasonably modified
by the person to whom the Recipient reports or the Board from time to time, such that the Recipient would no longer have responsibilities
substantially equivalent to those of other executives holding equivalent positions at companies with similar revenues and market
capitalization;

 

(ii)          the
Recipient gives written notice to the Company of the facts and circumstances constituting the material diminution in responsibilities
within ten (10) days following the occurrence of such material diminution;

 

(iii)         the
Company fails to remedy the material diminution in responsibilities within ten (10) days following the Recipient’s written
notice of the material diminution in responsibilities; and

 

    	7

    	 

    

 

(iv)         the
Recipient terminates his employment and this Agreement within thirty (30) days following the Company’s failure to remedy
the material diminution in responsibilities.

 

(b)          (i)
the Company requires the Recipient to relocate the Recipient’s primary place of employment to a new location that is more
than fifty (50) miles from its current location (determined using the most direct driving route), without the Recipient’s
consent;

 

(ii)          the
Recipient gives written notice to the Company within ten (10) days following receipt of notice of relocation of his objection to
the relocation;

 

(iii)         the
Company fails to rescind the notice of relocation within ten (10) days following the Recipient’s written notice; and

 

(iv)         the
Recipient terminates his employment within thirty (30) days following the Company’s failure to rescind the notice.

 

“Trade Secrets”
means information including, but not limited to, technical or nontechnical data, formulae, patterns, compilations, programs, devices,
methods, techniques, drawings, processes, financial data, financial plans, product plans or lists of actual or potential customers
or suppliers which (i) derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable
by proper means by, other persons who can obtain economic value from its disclosure or use, and (ii) is the subject of efforts
that are reasonable under the circumstances to maintain its secrecy.

 

    	8

    	 

    

 

EXHIBIT 1

 

VESTING SCHEDULE

 

		A.	The Restricted Stock Units shall become Vested Stock Units in accordance with the schedule below:

 

	Date	 	Percentage of Restricted

    Stock Units which are Vested Stock Units	 
	 	 	 	 
	December 31, 2016	 	100	%

 

; provided the Recipient must
remain an employee, director or consultant of the Company or an Affiliate through the indicated date set forth above to vest in
accordance with the schedule above.

 

		B.	Notwithstanding the foregoing, if more than sixty (60) days before a Change in Control and in the
year set forth in the schedule below:

 

		1.	the Recipient ceases services as an employee, director or consultant of the Company or an Affiliate
due to the Recipient’s death or Disability,

 

		2.	the Recipient resigns from the Company for Good Reason, or

 

		3.	the Company terminates the Recipient’s employment without Cause,

 

then the percentage of the Restricted
Stock Units in the schedule set forth below shall become Vested Stock Units if they have not been previously forfeited.

 

	Year
    of Termination	 	Percentage
    of Restricted

    Stock Units which are Vested Stock Units	 
	 	 	 	 
	2014	 	331/3	%
	2015	 	662/3	%
	2016	 	100	%

 

		C.	Notwithstanding the foregoing, if a Change in Control occurs on or after the Grant Date and before
December 31, 2016, and within (i) sixty (60) days before a Change in Control or (ii) after a Change in Control:

 

		1.	the Recipient ceases services as an employee, director or consultant of the Company or an Affiliate
due to the Recipient’s death or Disability,

 

		2.	the Recipient resigns from the Company for Good Reason, or

 

		3.	the Company terminates the Recipient’s employment without Cause.

 

    	Exhibit 1 – Page 1

    	 

    

 

then all Restricted Stock Units shall
become Vested Stock Units as of the later of the date of the Change in Control or the date of termination of employment if they
have not been previously forfeited.

 

		D.	Restricted Stock Units which have not become Vested Stock Units as of the earlier of December 31,
2016 or, except as provided in Item C above, the Recipient’s cessation of services as an employee, director, or consultant
of the Company or an Affiliate shall be forfeited.

 

    	Exhibit 1 – Page 2

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