Document:

Exhibit 10.1

 

AMENDED AND RESTATED

 

ADVISORY AGREEMENT

BY AND AMONG

BENEFIT STREET PARTNERS REALTY TRUST, INC.,

BENEFIT STREET PARTNERS REALTY OPERATING PARTNERSHIP, L.P.,

AND

BENEFIT STREET PARTNERS L.L.C.

Dated as of January 19, 2018

 

    	 

    	 

    

Table of Contents

 

	1.	DEFINITIONS	1
	 	 	 
	2.	APPOINTMENT	9
	 	 	 
	3.	DUTIES OF THE ADVISOR	9
	 	 	 
	4.	AUTHORITY OF ADVISOR	12
	 	 	 
	5.	NO PARTNERSHIP OR JOINT VENTURE	12
	 	 	 
	6.	BANK ACCOUNTS	12
	 	 	 
	7.	RECORDS; ACCESS	12
	 	 	 
	8.	LIMITATIONS ON ACTIVITIES	12
	 	 	 
	9.	FEES	13
	 	 	 
	10.	EXPENSES	15
	 	 	 
	11.	OTHER SERVICES	17
	 	 	 
	12.	REIMBURSEMENT TO THE ADVISOR	17
	 	 	 
	13.	OTHER ACTIVITIES OF THE ADVISOR	17
	 	 	 
	14.	TERM; RENEWAL; TERMINATION WITHOUT CAUSE	18
	 	 	 
	15.	TERMINATION FOR CAUSE	20
	 	 	 
	16.	ASSIGNMENTS	20
	 	 	 
	17.	PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION	21
	 	 	 
	18.	NON-SOLICITATION	21
	 	 	 
	19.	INCORPORATION OF THE ARTICLES OF INCORPORATION AND THE
    OPERATING PARTNERSHIP AGREEMENT	21
	 	 	 
	20.	INDEMNIFICATION BY THE COMPANY AND THE OPERATING PARTNERSHIP	22
	 	 	 
	21.	INDEMNIFICATION BY ADVISOR	23
	 	 	 
	22.	ADVISOR INVESTMENT COMMITMENT	23
	 	 	 
	23.	NOTICES	24

 

    i 

    	 

    

	24.	MODIFICATION	24
	 	 	 
	25.	SEVERABILITY	24
	 	 	 
	26.	GOVERNING LAW	25
	 	 	 
	27.	ENTIRE AGREEMENT	25
	 	 	 
	28.	NO WAIVER	25
	 	 	 
	29.	PRONOUNS AND PLURALS	25
	 	 	 
	30.	HEADINGS	25
	 	 	 
	31.	EXECUTION IN COUNTERPARTS	25

 

    ii 

    	 

    

AMENDED AND RESTATED ADVISORY AGREEMENT

 

THIS AMENDED AND RESTATED
ADVISORY AGREEMENT (this “Agreement”) dated as of January [•], 2018 (the “Effective
Date”), is entered into among Benefit Street Partners Realty Trust, Inc., a Maryland corporation (the “Company”),
Benefit Street Partners Realty Operating Partnership, L.P., a Delaware limited partnership (the “Operating Partnership”),
and Benefit Street Partners L.L.C., a Delaware limited liability company (the “Advisor”).

 

WITNESSETH

 

WHEREAS, the Company
is a Maryland corporation organized in accordance with Maryland General Corporation Law and intends to qualify as a REIT;

 

WHEREAS, the Company
is the general partner of the Operating Partnership;

 

WHEREAS,
the Company, the Operating Partnership and the Advisor are parties to that certain Advisory Agreement, dated as of September 29,
2016 (the “Prior Agreement”), and now desire to amend and restate such Advisory Agreement; 

 

WHEREAS, the Company
and the Operating Partnership desire to avail themselves of the experience, sources of information, advice, assistance and certain
facilities of the Advisor (as defined below) and to have the Advisor undertake the duties and responsibilities hereinafter set
forth, on behalf of, and subject to the supervision of the Board of Directors, all as provided herein; and

 

WHEREAS, the Advisor
is willing to render such services, subject to the supervision of the Board of Directors, on the terms and subject to the conditions
hereinafter set forth.

 

NOW, THEREFORE, in
consideration of the foregoing and of the mutual covenants and agreements contained herein, the parties hereto, intending to be
legally bound, hereby agree as follows.

 

1.             DEFINITIONS. As used in this Agreement, the following terms have the definitions set forth below:

 

“Acquisition
Expenses” means any and all expenses, exclusive of Acquisition Fees, incurred by the Company, the Operating Partnership,
the Advisor or any of their Affiliates in connection with the selection, evaluation, acquisition, origination, making or development
of any Investments, whether or not acquired, including, without limitation, legal fees and expenses, travel and communications
expenses, brokerage fees, costs of appraisals, nonrefundable option payments on property not acquired, accounting fees and expenses,
title insurance premiums, the costs of performing due diligence, and miscellaneous expenses related to selection and acquisition
of Investments, whether or not acquired.

 

“Acquisition
Fee” means the acquisition fee that was payable to the Advisor or its Affiliates pursuant the Prior Agreement.

 

    	 	1	 

    	 

    

“Advisor”
means Benefit Street Partners L.L.C., a Delaware limited liability company, any successor advisor to the Company and the Operating
Partnership, or any Person to which Benefit Street Partners, L.L.C. or any successor advisor subcontracts substantially all its
functions. Notwithstanding the foregoing, a Person hired or retained by Benefit Street Partners L.L.C. to perform property management
and related services for the Company or the Operating Partnership that is not hired or retained to perform substantially all the
functions of Benefit Street Partners L.L.C. with respect to the Company and the Operating Partnership as a whole shall not be deemed
to be an Advisor.

 

“Advisor
Change of Control” means, other than as set forth in the immediately following sentence, a change in the direct
or indirect power to control or direct the management policies of the Advisor, whether through the ownership of beneficial equity
interests, common directors or officers, by contract or otherwise. An Advisor Change of Control shall not include changes resulting
from any assignment of this Agreement by the Advisor as permitted hereby and in accordance with the terms hereof.

 

“Affiliate”
or “Affiliated” means with respect to any Person, (i) any other Person directly or indirectly owning,
controlling or holding, with the power to vote, ten percent (10%) or more of the outstanding voting securities of such Person;
(ii) any other Person ten percent (10%) or more of whose outstanding voting
securities are directly or indirectly owned, controlled or held, with the power to vote, by such Person; (iii)
any other Person directly or indirectly controlling, controlled by or under common control with such Person; (iv)
any executive officer, director, trustee or general partner of such Person; and (v)
any legal entity for which such Person acts as an executive officer, director, trustee or general partner. For purposes of this
definition, the terms “controls,” “is controlled by” or “is under common control with” shall
mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of an entity,
whether through ownership or voting rights, by contract or otherwise.

 

“Agreement”
has the meaning set forth in the preamble, and such term shall include any amendment or supplement hereto from time to time.

 

“Annual
Subordinated Performance Fee” means the fees payable to the Advisor or its assignees pursuant to Section 9(d).

 

“Articles
of Incorporation” means the charter of the Company, as amended from time to time.

 

“Asset
Management Fee” means the fees payable to the Advisor or its Affiliates pursuant to Section 9(c).

 

“Automatic
Renewal Term” has the meaning set forth in Section 14(a).

 

“Average
Invested Assets” means, for a specified period, the average of the aggregate book value of the Investments invested,
directly or indirectly in equity interests in and loans secured by real estate, before deducting depreciation, bad debts, or other
non-cash reserves, computed by taking the average of such values at the end of each month during such period. For an equity interest
owned in a Joint Venture, the calculation of Average Invested Assets shall take into consideration the underlying Joint Venture’s
aggregate book value for the equity interest.

 

    	 	2	 

    	 

    

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

 

“Business”
means those investment strategies and objectives of the Company and any of its subsidiaries that account for the principal portion
of the Company’s total portfolio of Investments, as such strategies and objectives may change from time to time in the future.

 

“Bylaws”
means the bylaws of the Company, as amended and as the same are in effect from time to time.

 

“Cause
Event” means (i) a final judgment by any court or governmental body of competent jurisdiction not stayed or
vacated within thirty (30) days that the Advisor, any of its agents or any of its assignees has committed a felony or a violation
of applicable securities laws that has a material adverse effect on the business of the Company or the ability of the Advisor to
perform its duties under the terms of this Agreement, (ii) any Advisor Change of Control occurs that two-thirds (2/3)
of the Independent Directors determines is materially detrimental to the Company taken as a whole as
a result of (A) changes in personnel of the Advisor or (B) conflicts of interest arising after giving effect to the Advisor Change
of Control; provided, however, that the Advisor will have an opportunity to address to the reasonable satisfaction of two-thirds
(2/3) of the Independent Directors the consequence of the Advisor Change of Control that
was determined to be materially detrimental to the Company taken as a whole, (iii)
an order for relief in an involuntary bankruptcy case relating to the Advisor or the Advisor authorizing or filing a voluntary
bankruptcy petition, (iv) the dissolution of the Advisor, or (v) a determination that the Advisor has committed fraud
against the Company, misappropriated or embezzled funds of the Company, or has acted, or failed to act, in a manner constituting
bad faith, willful misconduct, gross negligence or reckless disregard in the performance of its duties under this Agreement; provided, however,
that if any of the actions or omissions described in this clause (v) are caused by an employee and/or officer
of the Advisor or one of its Affiliates and the Advisor takes all necessary and appropriate action against such person and cures
the damage caused by such actions or omissions within thirty (30) days of the Advisor’s actual knowledge of the commission
or omission, then such event shall not constitute a Cause Event.

 

“Code”
means the Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto. Reference to any provision
of the Code shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision thereto,
as interpreted by any applicable regulations as in effect from time to time.

 

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

 

“Company”
has the meaning set forth in the preamble.

 

“Contract
Purchase Price” means the amount actually paid or allocated in respect of the purchase, development, construction,
or improvement of Real Property, or the amount of funds advanced with respect to a mortgage financing provided by the Company,
or the amount actually paid or allocated in respect of the purchase of other Investments, in each case exclusive of Acquisition
Fees and Acquisition Expenses, but in each case including any indebtedness assumed or incurred in respect of such Real Property.

 

    	 	3	 

    	 

    

“Director”
means a director of the Company.

 

“Distributions”
means any distributions of money or other property by the Company to Stockholders, including distributions that may constitute
a return of capital for U.S. federal income tax purposes.

 

“Effective
Date” has the meaning set forth in the preamble.

 

“Effective
Termination Date” has the meaning set forth in Section 14(b).

 

“Equity”
means (a) the sum of (1) the net proceeds from all issuances of Common Stock or other equity securities of the Company or the
Operating Partnership since inception (allocated on a pro rata basis for such issuances during the fiscal quarter of any such
issuance), plus (2) the Company’s retained earnings at the end of the
most recently completed calendar quarter (without taking into account any non-cash equity compensation expense incurred in current
or prior periods), less (b) any amount that the Company or any of its subsidiaries
has paid to repurchase Common Stock or other equity securities of the Company or the Operating Partnership since inception. Equity
excludes (1) any unrealized gains and losses and other non-cash items that
have impacted stockholders’ equity as reported in the Company’s financial statements prepared in accordance with GAAP,
and (2) one-time events pursuant to changes in GAAP, and certain non-cash
items not otherwise described above, in each case after discussions between the Advisor and the Independent Directors and approval
by a majority of the Independent Directors.

 

“Excess
Amount” has the meaning set forth in Section 12.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor statute thereto. Reference
to any provision of the Exchange Act shall mean such provision as in effect from time to time, as the same may be amended, and
any successor provision thereto, as interpreted by any applicable regulations as in effect from time to time.

 

“Expense
Year” has the meaning set forth in Section 12.

 

“Financings”
means any indebtedness or obligations in respect of borrowed money or evidenced by bonds, notes, debentures, deeds of trust, letters
of credit or similar instruments, including mortgages and mezzanine loans.

 

“FINRA”
means the Financial Industry Regulatory Authority, Inc.

 

“GAAP”
means U.S. generally accepted accounting principles, consistently applied.

 

“Gross
Proceeds” means the aggregate purchase price of all Shares sold for the account of the Company through an Offering,
without deduction for selling commissions, underwriting discounts, placement agent fees, and dealer Manager fees, volume discounts,
any marketing support and due diligence expense reimbursement or Organization and Offering Expenses. For the purpose of computing
Gross Proceeds, the purchase price of any Share for which reduced commissions, discounts, concessions or fees are paid to an underwriter
or broker-dealer (where

 

    	 	4	 

    	 

    

net proceeds to the Company are not reduced)
shall be deemed to be the full amount of the offering price per Share without reduction.

 

“Indemnitee”
has the meaning set forth in Section 20.

 

“Independent
Director” has the meaning set forth in the Articles of Incorporation.

 

“Independent
Valuation Advisor” means a firm that is (i) engaged in the business
of conducting appraisals on real estate properties, (ii) not an affiliate
of the Advisor and (iii) engaged by the Company with the Board’s approval
to appraise the Real Properties and other Investments pursuant to the Valuation Guidelines.

 

“Initial
Term” has the meaning set forth in Section 14(a).

 

“Insourced
Acquisition Expenses” means Acquisition Expenses incurred in connection with services performed by the Advisor or
any of its Affiliates, including legal advisory expenses, due diligence expenses, personnel expenses, acquisition-related administrative
and advisory expenses, survey, property and contract review expenses, travel and communications expenses and other closing costs.

 

“Investments”
means any investments by the Company or the Operating Partnership, directly or indirectly, in Real Estate Assets, Real Estate Related
Loans or any other asset.

 

“Joint
Ventures” means the joint venture or partnership or other similar arrangements (other than between the Company and
the Operating Partnership) in which the Company or the Operating Partnership or any of their subsidiaries is a co-venturer, limited
liability company member, limited partner or general partner, which are established to acquire or hold Investments.

 

“Listing”
means the listing of the Common Stock on a national securities exchange, or the inclusion of the Common Stock for trading in the
over-the-counter-market.

 

“Market
Check” means an analysis comparing (a) the amount of Insourced
Acquisition Expenses paid in the previous calendar year to the Advisor or any of its Affiliates with (b)
the projected amount of Acquisition Expenses for the following calendar year assuming that a Person other than the Advisor or its
Affiliates performs substantially similar services for a substantially similar amount of Investments.

 

“Minimum
Equity Investment” has the meaning set forth in Section 22.

 

“NASAA
REIT Guidelines” means the Statement of Policy Regarding Real Estate Investment Trusts as revised and adopted by
the North American Securities Administrators Association on May 7, 2007, as the same may be amended from time to time.

 

“NAV”
means the Company’s net asset value, as approved by the Board and as calculated pursuant to the Valuation Guidelines.

 

“Net Income”
means, for any period, the Company’s total revenues applicable to such period, less the total expenses applicable to such
period other than additions to reserves for

 

    	 	5	 

    	 

    

depreciation, bad debts or other similar
non-cash reserves and excluding any gain from the sale of the Company’s assets.

 

“Notice”
has the meaning set forth in Section 24.

 

“Notice
of Proposal to Negotiate” has the meaning set forth in Section 14(c).

 

“Offering”
means any offer and sale of Shares by the Company for cash , other than the Shares offered pursuant to the dividend reinvestment
component of the Company’s distribution reinvestment and stock purchase plan.

 

“Operating
Partnership” has the meaning set forth in the preamble.

 

“Operating
Partnership Agreement” means the Agreement of Limited Partnership of the Operating Partnership, among the Company,
the Operating Partnership and Benefit Street Partners Realty Trust LP, LLC, as the same may be amended from time to time.

 

“OP Units”
means units of limited partnership interest in the Operating Partnership.

 

“Organization
and Offering Expenses” means all expenses (other than any selling commissions, placement agent fees, underwriting
discounts and dealer manager fees) to be paid by the Company in connection with an Offering, including legal, accounting, printing,
mailing and filing fees, charges of the escrow holder, transfer agent expenses, due diligence expense reimbursements to broker-dealers
and amounts to reimburse the Advisor for its portion of the salaries of the employees of its affiliates who provide services to
the Advisor and other costs in connection with administrative oversight of the Offering and marketing process and preparing supplemental
sales materials, holding educational conferences and attending retail seminars conducted by soliciting dealers; provided,
however, that the Company will not pay the Advisor for salaries and benefits paid to the executive officers of the Company.

 

“Person”
has the meaning set forth in the Articles of Incorporation.

 

“Prior
Agreement” has the meaning set forth in the preamble,

 

“Prospectus”
means a final prospectus of the Company filed pursuant to Rule 424(b) of the Securities Act, as the same may be amended or supplemented
from time to time.

 

“Real Estate
Assets” means any investment by the Company or the Operating Partnership in unimproved and improved Real Property
(including fee or leasehold interests, options and leases), directly, through one or more subsidiaries or through a Joint Venture.

 

“Real Estate
Related Loans” means any investments in mortgage loans and other types of real estate related debt financing, including
first mortgage loans, mezzanine loans, bridge loans, convertible mortgages, wraparound mortgage loans, construction loans, loans
on leasehold interests or other loans related to commercial real estate and participations in such loans, by the Company or the
Operating Partnership, directly, through one or more subsidiaries or through a Joint Venture.

 

    	 	6	 

    	 

    

“Real Property”
means (i) land, (ii) rights
in land (including leasehold interests), and (iii) any buildings, structures,
improvements, furnishings, fixtures and equipment located on or used in connection with land and rights or interests in land.

 

“REIT”
means a corporation, trust, association or other legal entity (other than a real estate syndication) that is engaged primarily
in investing in equity interests in real estate (including fee ownership and leasehold interests) or in loans secured by real estate
or both, as defined pursuant to Sections 856 through 860 of the Code and any successor or other provisions of the Code relating
to real estate investment trusts (including provisions as to the attribution of ownership of beneficial interests therein) and
the regulations promulgated thereunder

 

“Sale”
or “Sales” means any transaction or series of transactions whereby: (i)
the Company or the Operating Partnership directly or indirectly (except as described in other subsections of this definition) sells,
grants, transfers, conveys or relinquishes its direct or indirect ownership of any Real Estate Asset, Real Estate Related Loan
or other Investment or portion thereof, including the lease of any Real Estate Assets consisting of a building only, and including
any event with respect to any Real Estate Assets that gives rise to a significant amount of insurance proceeds or condemnation
awards; (ii) the Company or the Operating Partnership directly or indirectly
(except as described in other subsections of this definition) sells, grants, transfers, conveys or relinquishes its ownership of
all or substantially all the direct or indirect interest of the Company or the Operating Partnership in any Joint Venture in which
it is a co-venturer, member or partner; (iii) any Joint Venture directly
or indirectly (except as described in other subsections of this definition) in which the Company or the Operating Partnership as
a co-venturer, member or partner sells, grants, transfers, conveys or relinquishes its direct or indirect ownership of any Real
Estate Assets or portion thereof, including any event with respect to any Real Estate Assets which gives rise to insurance claims
or condemnation awards; (iv) the Company or the Operating Partnership directly
or indirectly (except as described in other subsections of this definition) sells, grants, conveys or relinquishes its direct or
indirect interest in any Real Estate Related Loans or portion thereof (including with respect to any Real Estate Related Loan,
all payments thereunder or in satisfaction thereof other than regularly scheduled interest payments) and any event which gives
rise to a significant amount of insurance proceeds or similar awards; or (v)
the Company or the Operating Partnership directly or indirectly (except as described in other subsections of this definition) sells,
grants, transfers, conveys or relinquishes its direct or indirect ownership of any other asset not previously described in this
definition or any portion thereof, but not including any transaction or series of transactions specified in clauses (i)
through (v) above in which the proceeds of such transaction or series of transactions are reinvested by the Company in one
or more assets within 180 days thereafter.

 

“Securities
Act” means the Securities Act of 1933, as amended from time to time, or any successor statute thereto. Reference
to any provision of the Securities Act shall mean such provision as in effect from time to time, as the same may be amended, and
any successor provision thereto, as interpreted by any applicable regulations as in effect from time to time. 

 

“Shares”
means the shares of beneficial interest or of common stock of the Company of any class or series, including Common Stock, that
has the right to elect the Directors of the Company.

 

    	 	7	 

    	 

    

“Stockholders”
means the holders of record of the Shares as maintained on the books and records of the Company or its transfer agent.

 

“Termination
Fee” means a termination fee equal to two (2) times the sum of (i) the average annual Asset Management Fee paid or
payable, and (ii) the average Annual Subordinated Performance Fee paid or payable to the Advisor during the 24-month period immediately
preceding the most recently completed calendar quarter prior to the Effective Termination Date, or, if this Agreement is terminated
prior to September 29, 2018 and such termination fee is payable, the Asset Management Fee and the Annual Subordinated Performance
Fee shall be annualized for the period from September 29, 2016 to the most recently completed calendar quarter prior to the Effective
Termination Date based on the Asset Management Fee and Annual Subordinated Performance Fee actually paid or payable to the Advisor
during such period; provided, however, that upon the earlier of (A) the third anniversary of the Effective Date or
(B) a Listing, the termination fee shall equal three (3) times the sum of (i) the average annual Asset Management Fee paid or payable,
and (ii) the average Annual Subordinated Performance Fee paid or payable to the Advisor during the 24-month period immediately
preceding the most recently completed calendar quarter prior to the Effective Termination Date, or, if this Agreement is terminated
prior to September 29, 2018 and such termination fee is payable, the Asset Management Fee and the Annual Subordinated Performance
Fee shall be annualized for the period from September 29, 2016 to the most recently completed calendar quarter prior to the Effective
Termination Date based on the Asset Management Fee and Annual Subordinated Performance Fee actually paid or payable to the Advisor
during such period.

 

“Termination
Notice” has the meaning set forth in Section 14(b).

 

“Termination
Without Cause” has the meaning set forth in Section 14(b).

 

“Total
Operating Expenses” means all cost and expenses paid or incurred by the Company, as determined under GAAP, that are
in any way related to the operation of the Company or to Company business, including advisory fees, but excluding (i) the expenses
of raising capital such as Organization and Offering Expenses, legal, audit, accounting, underwriting, brokerage, listing, registration,
and other fees, printing and other such expenses and tax incurred in connection with the issuance, distribution, transfer, registration
and Listing of the Shares, (ii) interest payments, (iii) taxes, (i) non-cash expenditures such as depreciation, amortization and
bad debt reserves, (v) incentive fees paid in compliance with NASAA REIT Guidelines, (vi) Acquisition Fees and Acquisition Expenses,
(vii) real estate commissions on the Sale of Real Property, (viii) financing coordination fees, and (ix) other fees and expenses
connected with the acquisition, disposition, management and ownership of real estate interests, mortgage loans or other property
(including the costs of foreclosure, insurance premiums, legal services, maintenance, repair and improvement of property). The
definition of “Total Operating Expenses” set forth above is intended to encompass only those expenses which are required
to be treated as Total Operating Expenses under the NASAA REIT Guidelines. As a result, and notwithstanding the definition set
forth above, any expense of the Company which is not part of Total Operating Expenses under the NASAA REIT Guidelines shall not
be treated as part of Total Operating Expenses for purposes hereof.

 

    	 	8	 

    	 

    

“Total
Return” means for any year the change in the GAAP stockholders’ equity of the Company, on a per share basis,
from January 1 through December 31 of such year plus the Distributions and dividends paid by Company on a per share basis
during such year.

 

“Valuation
Guidelines” means the valuation guidelines adopted by the Board, as may be amended from time to time.

 

“2%/25%
Guidelines” has the meaning set forth in Section 12.

 

2.              APPOINTMENT . The Company and the Operating Partnership hereby appoint the Advisor to serve as their advisor
to perform the services set forth herein on the terms and subject to the conditions set forth in this Agreement and subject to
the supervision of the Board, and the Advisor hereby accepts such appointment.

 

3.              DUTIES OF THE ADVISOR. The Advisor will use its reasonable best efforts to present to the Company and the Operating
Partnership potential investment opportunities and to provide a continuing and suitable investment program consistent with the
investment objectives and policies of the Company as determined and adopted from time to time by the Board. In performance of this
undertaking, subject to the supervision of the Board and consistent with the provisions of the Articles of Incorporation, Bylaws
and the Operating Partnership Agreement, the Advisor, directly or indirectly, will:

 

(a)           serve as the Company’s and the Operating Partnership’s investment and financial advisor and provide research
and economic and statistical data in connection with the Company’s assets and investment policies;

 

(b)           provide the daily management for the Company and the Operating Partnership and perform and supervise the various
administrative functions necessary for the day-to-day management of the operations of the Company and the Operating Partnership;

 

(c)           investigate, select and, on behalf of the Company and the Operating Partnership, engage and conduct business with
and supervise the performance of such Persons as the Advisor deems necessary to the proper performance of its obligations hereunder
(including consultants, accountants, correspondents, lenders, technical advisors, attorneys, brokers, underwriters, corporate fiduciaries,
escrow agents, depositaries, custodians, agents for collection, insurers, insurance agents, banks, builders, developers, property
owners, property managers, real estate management companies, real estate operating companies, securities investment advisors, mortgagors,
the registrar and the transfer agent and any and all agents for any of the foregoing), including Affiliates of the Advisor and
Persons acting in any other capacity deemed by the Advisor necessary or desirable for the performance of any of the foregoing services
(including entering into contracts in the name of the Company and the Operating Partnership with any of the foregoing);

 

(d)              
consult with the officers and Directors of the Company and assist the Directors in the formulation and implementation
of the Company’s financial policies, and, as necessary, furnish the Board with advice and recommendations with respect to
the making of investments consistent with the investment objectives and policies of the Company and in connection with any borrowings
proposed to be undertaken by the Company or the Operating Partnership;

 

    	 	9	 

    	 

    

(e)           subject to the provisions of Section 4, (i) participate
in formulating an investment strategy and asset allocation framework; (ii)
locate, analyze and select potential Investments; (iii) structure and negotiate
the terms and conditions of transactions pursuant to which acquisitions and dispositions of Investments will be made; (iv)
research, identify, review, recommend and arrange acquisitions and dispositions of Investments to the Board and make Investments
on behalf of the Company and the Operating Partnership in compliance with the investment objectives and policies of the Company;
(v) review and analyze each property’s operating and capital budget;
(vi) arrange for financing and refinancing and make other changes in the asset
or capital structure of, and dispose of, reinvest the proceeds from the sale of, or otherwise deal with, Investments; (vii)
enter into leases and service contracts for Real Estate Assets and, to the extent necessary, perform all other operational functions
for the maintenance and administration of such Real Estate Assets; (viii)
actively oversee and manage Investments for purposes of meeting the Company’s investment objectives and reviewing and analyzing
financial information for each of the Investments and the overall portfolio; (ix)
select Joint Venture partners, structure corresponding agreements and oversee and monitor these relationships; (x)
oversee, supervise and evaluate Affiliated and non-Affiliated property managers who perform services for the Company or the Operating
Partnership; (xi) oversee Affiliated and non-Affiliated Persons with whom
the Advisor contracts to perform certain of the services required to be performed under this Agreement; (xii)
manage accounting and other record-keeping functions for the Company and the Operating Partnership, including reviewing and analyzing
the capital and operating budgets for the Real Estate Assets and generating an annual budget for the Company; (xiii)
recommend various liquidity events to the Board when appropriate; and (xiv)
source and structure Real Estate Related Loans;

 

(f)           upon request, provide the Board with periodic reports regarding prospective investments;

 

(g)          make investments in, and dispositions of, Investments within the discretionary limits and authority as granted by
the Board;

 

(h)          negotiate on behalf of the Company and the Operating Partnership with banks or other lenders for Financings with
the Company, the Operating Partnership or any of their subsidiaries as the borrower, negotiate with investment banking firms and
broker-dealers on behalf of the Company, the Operating Partnership or any of their subsidiaries to obtain Financing for the Company,
the Operating Partnership or any of their subsidiaries and negotiate private sales of Shares or other securities of the Company,
the Operating Partnership or any of their subsidiaries, but in no event in such a manner so that the Advisor shall be acting as
broker-dealer or underwriter; provided, however, that any fees and costs payable to third parties incurred by the
Advisor in connection with the foregoing shall be the responsibility of the Company, the Operating Partnership or any of their
subsidiaries;

 

(i)             obtain reports (which may, but are not required to, be prepared by the Advisor or its Affiliates), where appropriate,
concerning the value of Investments or contemplated investments of the Company and the Operating Partnership;

 

(j)             from time to time, or at any time reasonably requested by the Board, make reports to the Board of its performance
of services to the Company and the Operating Partnership under

 

    	 	10	 

    	 

    

this Agreement, including reports with
respect to potential conflicts of interest involving the Advisor or any of its Affiliates;

 

(k)              
provide the Company and the Operating Partnership with all necessary cash management services;

 

(l)                
deliver to, or maintain on behalf of, the Company copies of all appraisals obtained in connection with the investments
in any Real Estate Assets as may be required to be obtained by the Board;

 

(m)            
effect any private placement of OP Units, tenancy-in-common or other interests in Investments as may be approved
by the Board;

 

(n)              
perform investor-relations and Stockholder communications functions for the Company;

 

(o)              
maintain the Company’s accounting and other records and assist the Company in filing all reports required to
be filed by it with the U.S. Securities and Exchange Commission, the Internal Revenue Service and other regulatory agencies;

 

(p)              
notify the Board of all proposed material transactions before they are completed;

 

(q)              
render such services as may be reasonably determined by the Board of Directors consistent with the terms and conditions
herein;

 

(r)               
do all things reasonably necessary to assure its ability to render the services described in this Agreement;

 

(s)               
when directed by the Board of Directors, calculate the NAV and in connection therewith obtain valuations performed
by the Independent Valuation Advisors; and

 

(t)                
supervise one or more Independent Valuation Advisors and, if and when necessary, recommend to the Board its replacement.

 

Notwithstanding the
foregoing or anything else that may be to the contrary in this Agreement, the Advisor may delegate any of the foregoing duties
to any Person so long as the Advisor or its Affiliate remains responsible for the performance of the duties set forth in this Section 3.

 

4.             AUTHORITY OF ADVISOR.

 

(a)              
Pursuant to the terms of this Agreement (including the restrictions included in this Section 4 and in
Section 8), and subject to the continuing and exclusive authority of the Board over the supervision of the Company,
the Company, acting on the authority of the Board of Directors, hereby delegates to the Advisor the authority to perform the services
described in Section 3.

 

    	 	11	 

    	 

    

(b)              
Notwithstanding anything herein to the contrary, all acquisitions of Real Estate Assets will require the prior approval
of the Board, any particular Directors specified by the Board or any committee of the Board specified by the Board, as the case
may be.

 

(c)              
If a transaction requires approval by the Independent Directors, the Advisor will deliver to the Independent Directors
all documents and other information reasonably required by them to evaluate properly the proposed transaction.

 

(d)              
The Board may, at any time upon the giving of notice to the Advisor, modify or revoke the authority set forth in
this Section 4; provided, however, that such modification or revocation shall be effective upon receipt by the
Advisor and shall not be applicable to investment transactions to which the Advisor has committed the Company or the Operating
Partnership prior to the date of receipt by the Advisor of such notification.

 

5.                 
NO PARTNERSHIP OR JOINT VENTURE. The parties to this Agreement are not partners or joint venturers with each
other and nothing herein shall be construed to make them partners or joint venturers or impose any liability as such on either
of them.

 

6.                 
BANK ACCOUNTS. The Advisor may establish and maintain one or more bank accounts in the name of the Company or
the Operating Partnership and may collect and deposit into any such account or accounts, and disburse from any such account or
accounts, any money on behalf of the Company or the Operating Partnership, under such terms and conditions as the Board may approve,
provided that no funds shall be commingled with the funds of the Advisor; and, upon request, the Advisor shall render appropriate
accountings of such collections and payments to the Board and to the auditors of the Company.

 

7.                 
RECORDS; ACCESS. The Advisor shall maintain appropriate records of all its activities hereunder and make such
records available for inspection by the Directors and by counsel, auditors and authorized agents of the Company, at any time and
from time to time. The Advisor shall at all reasonable times have access to the books and records of the Company and the Operating
Partnership.

 

8.                 
LIMITATIONS ON ACTIVITIES. Notwithstanding anything herein to the contrary, the Advisor shall refrain from taking
any action which, in its sole judgment, or in the sole judgment of the Company, made in good faith, would (a)
adversely affect the status of the Company as a REIT, unless the Board has determined that REIT qualification is not in the best
interests of the Company and its Stockholders, (b) subject the Company to regulation
under the Investment Company Act of 1940, as amended, or (c) violate any law,
rule, regulation or statement of policy of any governmental body or agency having jurisdiction over the Company, the Operating
Partnership or the Shares, or otherwise not be permitted by the Articles of Incorporation or Bylaws, except if such action shall
be ordered by the Board, in which case the Advisor shall notify promptly the Board of the Advisor’s judgment of the potential
impact of such action and shall refrain from taking such action until it receives further clarification or instructions from the
Board. In such event, the Advisor shall have no liability for acting in accordance with the specific instructions of the Board
so given.

 

    	 	12	 

    	 

    

9.            FEES.

 

(a)              
Acquisition Fee. Pursuant to the Prior Agreement, the Company was required to pay an Acquisition Fee
to the Advisor or its Affiliates as compensation for services rendered in connection with the investigation, selection, acquisition
and origination (by purchase, investment or exchange) of Investments, subject to limitations set forth therein. The Advisor is
not entitled to acquisition fees pursuant to this Agreement, except that the Advisor is entitled to payment for Acquisition Fees
earned but not paid pursuant to the Prior Agreement.

 

(b)              
Limitation on Total Acquisition Fees and Acquisition Expenses.

 

(i)                
The total of all Acquisition Fees and Acquisition Expenses payable in connection with the Company’s total portfolio
of Investments and reinvestments, if any, shall be reasonable and shall not exceed an amount equal to four and one-half percent
(4.5%) of the sum of (a) the Contract Purchase Price of the Company’s
total portfolio of Investments acquired and (b) the amount advanced for the
Company’s total portfolio of Investments made; provided, however, that the Advisor (A)
will not be entitled to Acquisition Fees or reimbursement of Acquisition Expenses if there are insufficient Offering proceeds or
capital proceeds to pay such expenses and (B) such expenses not paid to the
Advisor will not be accrued and paid in subsequent periods to the extent that there are not sufficient Offering or capital proceeds
to pay them.

 

(ii)             
In accordance with the Articles of Incorporation, the total of all Acquisition Fees and Acquisition Expenses payable
in connection with any Investment or any reinvestment shall be reasonable and shall not exceed an amount equal to four and one-half
percent (4.5%) of the Contract Purchase Price of the Investment acquired or four and one-half percent (4.5%) of the amount advanced
for any Investment made; provided, further, however, that a majority of the Directors (including a majority
of the Independent Directors) not otherwise interested in the transaction may approve fees and expenses in excess of these limits
if they determine the transaction to be commercially competitive, fair and reasonable to the Company.

 

(c)              
Asset Management Fee. The Company shall pay the Advisor or its Affiliates as compensation for services
rendered in connection with the management of the Company’s Investments an annual Asset Management Fee equal to one and one-half
percent (1.5%) of Equity. The Asset Management Fee will be payable monthly in arrears. If applicable, the initial and final installments
of the Asset Management Fee shall be pro-rated based on the number of days during the initial and final month, respectively, that
this Agreement is in effect.

 

(d)              
Annual Subordinated Performance Fee. The Company may pay an Annual Subordinated Performance Fee to
the Advisor calculated on the basis of the Total Return for any year in which the Company’s Total Return exceeds six percent
(6%) per annum. With respect to such year, the Advisor will be paid fifteen percent (15%) of the excess Total Return, not to exceed
ten percent (10%) of the aggregate Total Return for such year. This fee will only be payable upon the Sale of Investments, Distributions
or other event which results in the Company’s Total Return exceeding six percent (6%) per annum. This fee will be calculated
annually and will be payable monthly over 12 months following the year for which the fee is being paid.

 

    	 	13	 

    	 

    

(e)              
Payment of Fees. In connection with the Acquisition Fee and Annual Subordinated Performance Fee, the
Company shall pay such fees to the Advisor or its Affiliates in cash or in Shares, or a combination of both, the form of payment
to be determined, except as set forth in Section 22, in the sole discretion of the Advisor. The Asset Management Fee shall
be payable, at the discretion of the Board of Directors, in cash, Shares or grants of restricted Shares, or any combination thereof.
For the purposes of the payment of any fees in Shares each Share shall be valued using per share NAV; provided, however,
that in the case of Asset Management Fees payable in grants of restricted shares, each Share shall be valued in a manner consistent
with the provisions of the equity incentive plan of the Company.

 

(f)               
Exclusion of Certain Transactions.

 

(i)                
If the Company or the Operating Partnership shall propose to enter into any transaction in which the Advisor, any
Affiliate of the Advisor or any of the Advisor’s directors or officers has a direct or indirect interest, then such transaction
shall be approved by a majority of the Board not otherwise interested in such transaction, including a majority of the Independent
Directors.

 

(ii)             
If the Board elects to internalize any management services provided by the Advisor, neither the Company nor the Operating
Partnership shall pay any compensation or other remuneration to the Advisor or its Affiliates in connection with such internalization
of management services.

 

(g)              
Limitation on Insourced Acquisition Expenses.

 

(i)                
The total of all Insourced Acquisition Expenses with respect to any Investment shall initially be fixed at, and shall
not exceed, 0.50% of the Contract Purchase Price of the Investment or 0.50% of the amount advanced for an Investment, which the
Company shall pay to the Advisor or its Affiliate at the closing of each Investment. For the avoidance of doubt, no payment in
respect of Insourced Acquisition Expenses shall be made unless the Advisor or its Affiliates shall have performed services related
to selecting, evaluating and acquiring an Investment, regardless of whether such Investment is ultimately acquired.

 

(ii)             
The total of all Insourced Acquisition Expenses for any calendar year shall initially be fixed at, and shall not
exceed, 0.50% of the sum of (a) the Contract Purchase Price of the Investments
acquired during such period and (b) the amounts advanced for the Investments
made during such period (to be prorated for any partial calendar year); provided, however, within a reasonable period of time following
the end of each such calendar year, the Company shall perform a Market Check and provide the results thereof to the Advisor within
a reasonable period of time and, if the result of the Market Check is that the projected amount of Acquisition Expenses that would
be incurred if substantially similar services with respect to a substantially similar amount of Investments were to be provided
by a Person other than the Advisor or any of its Affiliates during the subsequent calendar year is lower than the amount of Insourced
Acquisition Expenses paid to the Advisor or its Affiliates during the previous calendar year, either (A)
the Advisor shall agree to reduce the cap on the Insourced Acquisition Expenses until the next Market Check such that the cap on
Insourced Acquisition Expenses does not exceed the projected amount of Acquisition Expenses that would be incurred if substantially
similar services

 

    	 	14	 

    	 

    

with respect to a substantially similar
amount of Investments were to be provided by a Person other than the Advisor or any of its Affiliates during the subsequent calendar
year or (B) the Company may outsource to a Person other than the Advisor or
its Affiliate certain services previously provided by the Advisor or its Affiliates until the next Market Check.

 

(iii)           
This Section 9(g) of this Agreement shall be effective as of the date of this Agreement with respect
to each Investment going forward.

 

10.             
EXPENSES.

 

(a)              
In addition to the compensation paid to the Advisor pursuant to Section 9, the Company or the Operating
Partnership shall pay directly or reimburse the Advisor for all the expenses paid or actually incurred by the Advisor or its Affiliates
in connection with the services it provides to the Company and the Operating Partnership pursuant to this Agreement, including,
the following:

 

(i)                
Organization and Offering Expenses, including third-party due diligence fees related to an Offering, as set forth
in detailed and itemized invoices; provided, however, that the Company shall not reimburse the Advisor to the extent such
reimbursement would cause the total amount of Organization and Offering Expenses paid by the Company and the Operating Partnership
to exceed two percent (2.0%) of the Gross Proceeds raised in all Offerings;

 

(ii)             
Acquisition Expenses, subject to the limitations set forth in Section 9(b), including Insourced Acquisition
Expenses, subject to the limitations set forth in Section 9(g);

 

(iii)           
the actual cost of goods and services used by the Company and obtained from Persons not Affiliated with the Advisor;

 

(iv)            
interest and other costs for Financings, including discounts, points and other similar fees, taxes and assessments
on income of the Company or Investments, and accounting fees, legal fees, closing and other similar costs;

 

(v)              
costs associated with insurance required in connection with the business of the Company or by the Board;

 

(vi)            
expenses of managing and operating Investments owned by the Company, whether payable to an Affiliate of the Company
or a non-affiliated Person;

 

(vii)         
all expenses in connection with payments to the Directors for attending meetings of the Board and Stockholders;

 

(viii)       
expenses associated with a Listing, if applicable, or with the issuance and distribution of Shares, such as selling
commissions and fees, advertising expenses, taxes, legal and accounting fees, listing and registration fees;

 

(ix)            
expenses connected with payments of Distributions;

 

    	 	15	 

    	 

    

(x)              
the costs of maintaining compliance by the Company with all federal, state and local rules and regulations or any
other regulatory agency;

 

(xi)            
costs and expenses incurred in contracting with third parties on behalf of the Company;

 

(xii)         
expenses of organizing, revising, amending, converting, modifying or terminating the Company, the Operating Partnership
or any subsidiary thereof or the Articles of Incorporation, Bylaws or governing documents of the Operating Partnership or any subsidiary
of the Company or the Operating Partnership;

 

(xiii)       
expenses of maintaining communications with Stockholders, including the cost of preparation, printing, and mailing
annual reports and other Stockholder reports, proxy statements and other reports required by governmental entities;

 

(xiv)        
administrative service expenses, including all costs and expenses incurred by Advisor or its Affiliates in fulfilling
its duties hereunder, including reasonable salaries and wages, benefits and overhead of all employees directly involved in the
performance of such services; provided, however, that no reimbursement shall be made for costs of such employees of the
Advisor or its Affiliates to the extent that such employees perform services for which the Advisor receives an Acquisition Fee
and that the Company will not pay the Advisor for salaries and benefits paid to the executive officers of the Company; and

 

(xv)          
costs of legal, tax, accounting, consulting, auditing and other similar services rendered for the Company by providers
retained by the Advisor.

 

(b)              
Expenses incurred by the Advisor on behalf of the Company and the Operating Partnership or in connection with the
services provided by the Advisor hereunder and payable pursuant to this Section 10 shall be reimbursed (excluding Insourced
Acquisition Expenses which shall be paid as described in Section 9(g)(i) of this Agreement), no less than monthly,
to the Advisor.

 

11.             
OTHER SERVICES. Should the Board request that the Advisor or any director, officer or employee thereof render
services for the Company and the Operating Partnership other than set forth in Section 3 , such services shall be separately
compensated at such customary rates and in such customary amounts as are agreed upon by the Advisor and the Board, including a
majority of the Independent Directors, subject to the limitations contained in the Articles of Incorporation, and shall not be
deemed to be services pursuant to the terms of this Agreement.

 

12.             
REIMBURSEMENT TO THE ADVISOR. The Company shall not reimburse the Advisor at the end of any fiscal quarter in
which Total Operating Expenses incurred by the Advisor for the four (4) consecutive fiscal quarters then ended (the “Expense
Year”) exceed (the “Excess Amount”) the greater of two percent (2%) of Average Invested
Assets or twenty-five percent (25%) of Net Income (the “2%/25% Guidelines”) for such Expense Year. Any
Excess Amount paid to the Advisor during a fiscal quarter shall be repaid to the Company or, at the option of the Company, subtracted
from the Total Operating Expenses reimbursed during the subsequent fiscal quarter. If there is an Excess Amount in any Expense
Year and the Independent Directors determine that such excess was justified based on unusual and nonrecurring factors

 

    	 	16	 

    	 

    

which they deem sufficient, then the Excess
Amount may be carried over and included in Total Operating Expenses in subsequent Expense Years and reimbursed to the Advisor in
one or more of such years, provided that there shall be sent to the Stockholders a written disclosure of such fact within sixty
(60) days of the end of the fiscal quarter, together with an explanation of the factors the Independent Directors considered in
determining that such excess expenses were justified. Such determination shall be reflected in the minutes of the meetings of the
Board. All figures used in the foregoing computation shall be determined in accordance with GAAP applied on a consistent basis.

 

13.             
OTHER ACTIVITIES OF THE ADVISOR.

 

(a)              
Except as set forth in Section 13 (b), nothing herein contained shall prevent the Advisor or any
of its Affiliates from engaging in or earning fees from other activities, including the rendering of advice to other Persons (including
other REITs) and the management of other programs advised, sponsored or organized by the Advisor or its Affiliates; nor shall this
Agreement limit or restrict the right of any director, officer, member, partner, employee or stockholder of the Advisor or any
of its Affiliates to engage in or earn fees from any other business or to render services of any kind to any other Person and earn
fees for rendering such services; provided, however, that the Advisor must devote sufficient resources to the Company’s
Business to discharge its obligations to the Company under this Agreement. Upon satisfaction of the requirements of Section 13(b),
the Advisor may, with respect to any investment in which the Company is a participant, also render advice and service to each and
every other participant therein, and earn fees for rendering such advice and service. Specifically, it is contemplated that the
Company may enter into Joint Ventures or other similar co-investment arrangements with certain Persons, and pursuant to the agreements
governing such Joint Ventures or arrangements, the Advisor may be engaged to provide advice and service to such Persons, in which
case the Advisor may earn fees for rendering such advice and service.

 

The Advisor shall report
to the Board the existence of any condition or circumstance, existing or anticipated, of which it has knowledge, which creates
or could create a conflict of interest between the Advisor’s obligations to the Company and its obligations to or its interest
in any other Person.

 

(b)              
During the Term of this Agreement, neither the Advisor nor any of its subsidiaries will, directly or indirectly,
without the prior written consent of the Company, manage, operate, or advise any other REIT that is engaged in the Business in
any geographical region which accounts for a significant portion of the Company’s total portfolio of Investments; provided,
however, that neither the Advisor nor any of its subsidiaries will, directly or indirectly, without the prior written consent
of the Company, provide any services related to fixed-rate conduit lending to any other Person or entity; provided further,
however, that should the Company change its Business after the Effective Date, the Advisor and its subsidiaries may, directly
or indirectly, without the prior written consent of the Company, continue to manage, operate, or advise any REIT that the Advisor
has a prior existing relationship with and that (i) is engaged in the Business as of such Company change and (ii) was engaged in
the Business prior to such Company change. It is further expressly agreed that the Company will or would suffer irreparable injury
of the Company in violation of the preceding sentence of this Agreement and that the Company would by reason of such competition
be entitled to injunctive relief in a court of appropriate

 

    	 	17	 

    	 

    

jurisdiction, and Advisor further consents
and stipulates to the entry of such injunctive relief in such a court prohibiting the Advisor or any of its subsidiaries from competing
with the Company or any of its subsidiaries, in the areas noted in the preceding sentence in violation of this Agreement.

 

14.             
TERM; RENEWAL; TERMINATION WITHOUT CAUSE .

 

(a)              
This Agreement became effective on the Effective Date and shall continue in operation, unless terminated in accordance
with the terms hereof, until the third anniversary of the Effective Date (the “Initial Term”). After
the Initial Term, this Agreement shall be deemed renewed automatically each year for an additional one-year period (an “Automatic
Renewal Term”), unless the Company or the Advisor elects not to renew this Agreement in accordance with Section
14(b) or Section 14(d), respectively.

 

(b)              
Notwithstanding any other provision of this Agreement to the contrary, upon the expiration of the Initial Term or
any Automatic Renewal Term and upon one hundred and eighty (180) days’ prior written notice to the Advisor (the “Termination
Notice”), the Company may, without cause, in connection with the expiration of the Initial Term or the then current
Automatic Renewal Term, decline to renew this Agreement (any such nonrenewal, a “Termination Without Cause”)
upon the affirmative vote of at least two-thirds (2/3) of the Independent Directors that (i) there has been unsatisfactory performance
by the Advisor that is materially detrimental to the Company or (ii) the Asset Management Fee and Annual Subordinated Performance
Fee payable to the Advisor are not fair, subject to Section 14(c) hereof. In the event of a Termination Without Cause, the
Company shall pay the Advisor the Termination Fee before or on the one hundred eightieth (180th) day following the date of the
Termination Notice, or such other date as mutually agreed by the Company and the Advisor (the “Effective Termination
Date”). The Company may terminate this Agreement upon the occurrence of a Cause Event pursuant to Section 15
hereof even after a Termination Notice and, in such case, no Termination Fee shall be payable.

 

(c)              
Notwithstanding the provisions of subsection (b) of this Section 14, if the reason for nonrenewal specified
in the Company’s Termination Notice is that two-thirds (2/3) of the Independent Directors have determined that the Asset
Management Fee and Annual Subordinated Performance Fee payable to the Advisor are not fair, the Company shall not have the foregoing
nonrenewal right in the event the Advisor agrees that it will continue to perform its duties hereunder during the Automatic Renewal
Term that would commence upon the expiration of the Initial Term or then current Automatic Renewal Term at fees that at least two-thirds
(2/3) of the Independent Directors determine to be fair; provided, however, the Advisor shall have the right to renegotiate
the Asset Management Fee and/or Annual Subordinated Performance Fee by delivering to the Company, not less than forty-five (45)
days prior to the pending Effective Termination Date, written notice (a “Notice of Proposal to Negotiate”)
of its intention to renegotiate the Asset Management Fee and/or Annual Subordinated Performance Fee. Thereupon, the Company and
the Advisor shall endeavor to negotiate the Asset Management Fee and/or Annual Subordinated Performance Fee in good faith. If the
Company and the Advisor agree to a revised Asset Management Fee, Annual Subordinated Performance Fee or other compensation structure
within sixty (60) days following the Company’s receipt of the Notice of Proposal to Negotiate, the Termination Notice from
the Company shall be deemed of no force

 

    	 	18	 

    	 

    

and effect, and this Agreement shall continue
in full force and effect on the terms stated herein, except that the Asset Management Fee, Annual Subordinated Performance Fee
or other compensation structure shall be the revised Asset Management Fee, Annual Subordinated Performance Fee or other compensation
structure as then agreed upon by the Company and the Advisor. The Company and the Advisor agree to execute and deliver an amendment
to this Agreement setting forth such revised Asset Management Fee, Annual Subordinated Performance Fee or other compensation structure
promptly upon reaching an agreement regarding same. In the event that the Company and the Advisor are unable to agree to a revised
Asset Management Fee, Annual Subordinated Performance Fee or other compensation structure during such sixty (60) day period, this
Agreement shall terminate on the Effective Termination Date and the Company shall be obligated to pay the Advisor the Termination
Fee upon the Effective Termination Date.

 

(d)              
No later than one hundred eighty (180) days prior to the expiration of the Initial Term or the then current Automatic
Renewal Term, the Advisor may deliver written notice to the Company informing it of the Advisor’s intention to decline to
renew this Agreement, whereupon this Agreement shall not be renewed and extended and this Agreement shall terminate effective on
the anniversary date of this Agreement next following the delivery of such notice. The Company is not required to pay to the Advisor
the Termination Fee if the Advisor terminates this Agreement pursuant to this Section 14(d).

 

(e)              
Except as set forth in this Section 14, a nonrenewal of this Agreement pursuant to this Section 14
shall be without any further liability or obligation of either party to the other, except as provided in Sections 18 through
22 and Sections 24 through 32 of this Agreement.

 

(f)               
The Advisor shall cooperate, at the Company’s expense, with the Company in executing an orderly transition
of the management of the Company’s consolidated assets to a new Advisor.

 

15.             
TERMINATION FOR CAUSE.

 

(a)              
The Company may terminate this Agreement effective upon thirty (30) days’ prior written notice of termination
from the Company to the Advisor, without payment of any Termination Fee, upon the occurrence of a Cause Event.

 

(b)              
The Advisor may terminate this Agreement effective upon sixty (60) days’ prior written notice of termination
to the Company in the event that the Company shall default in the performance or observance of any material term, condition or
covenant contained in this Agreement and such default shall continue for a period of thirty (30) days after written notice thereof
specifying such default and requesting that the same be remedied in such thirty (30) day period. The Company is required to pay
to the Advisor the Termination Fee if the termination of this Agreement is made pursuant to this Section 15(b).

 

(c)              
The Advisor may terminate this Agreement if the Company becomes required to register as an investment company under
the Investment Company Act of 1940, as amended, with such termination deemed to occur immediately before such event, in which case
the Company shall not be required to pay the Termination Fee.

 

    	 	19	 

    	 

    

16.             
ASSIGNMENTS. 

 

(a)              
Assignments by the Advisor. This Agreement shall terminate automatically without payment of the Termination
Fee in the event of its assignment, in whole or in part, by the Advisor, unless such assignment is consented to in writing by the
Company with the consent of a majority of the Independent Directors. Any permitted assignment (including to an Affiliate of the
Advisor as set forth below) shall bind the assignee under this Agreement in the same manner as the Advisor is bound, and the Advisor
shall be liable to the Company and the Operating Partnership for all acts or omissions of the assignee under any such assignment.
In addition, the assignee shall execute and deliver to the Company a counterpart of this Agreement naming such assignee as the
Advisor. Notwithstanding anything to the contrary in this Agreement, the Advisor may, without the approval of the Company or the
Independent Directors, (i) assign this Agreement to an Affiliate of the Advisor and (ii) delegate to one or more of its Affiliates
the performance of any of its responsibilities hereunder so long as it remains liable for any such Affiliate’s performance,
in each case so long as assignment or delegation does not require the Company’s approval under the Investment Company Act
of 1940, as amended, or does not result in a “change of control” as interpreted under the Investment Advisers Act of
1940, as amended (but if such approval is required, the Company shall not unreasonably withhold, condition or delay its consent).
Nothing contained in this Agreement shall preclude any pledge, hypothecation or other transfer of any amounts payable to the Advisor
under this Agreement.

 

(b)              
Assignments by the Company or the Operating Partnership. This Agreement shall not be assigned by the
Company or the Operating Partnership without the prior written consent of the Advisor, except in the case of assignment by the
Company or the Operating Partnership to another REIT or other organization which is a successor (by merger, consolidation, purchase
of assets, or other transaction) to the Company or the Operating Partnership, in which case such successor organization shall be
bound under this Agreement and by the terms of such assignment in the same manner as the Company or the Operating Partnership,
as applicable, is bound under this Agreement.

 

17.             
PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION.

 

(a)              
Amounts Owed. After the Effective Termination Date, the Advisor shall be entitled to receive from the
Company or the Operating Partnership within thirty (30) days after the effective date of such termination all amounts then accrued
and owing to the Advisor, including all its interest in the Company’s and the Operating Partnership’s income, losses,
distributions and capital by payment of an amount equal to the then-present fair market value of the Advisor’s interest (as
provided by the Operating Partnership Agreement), subject to the 2%/25% Guidelines to the extent applicable.

 

(b)              
Advisor’s Duties. The Advisor shall promptly upon termination of this Agreement:

 

(i)                
pay over to the Company and the Operating Partnership all money collected and held for the account of the Company
and the Operating Partnership pursuant to this Agreement, after deducting any accrued compensation and reimbursement for its expenses
to which it is then entitled;

 

    	 	20	 

    	 

    

(ii)             
deliver to the Board a full accounting, including a statement showing all payments collected by it and a statement
of all money held by it, covering the period following the date of the last accounting furnished to the Board;

 

(iii)           
deliver to the Board all assets, including all Investments, and documents of the Company and the Operating Partnership
then in the custody of the Advisor; and

 

(iv)            
cooperate with the Company and the Operating Partnership to provide an orderly management transition.

 

18.             
NON-SOLICITATION. The Company agrees not to solicit any current and/or future employees of Advisor for employment
or in any consulting or similar capacity during the term of this Agreement and for two (2) years following the termination
of this Agreement without the consent of the Advisor.

 

19.             
INCORPORATION OF THE ARTICLES OF INCORPORATION AND THE OPERATING PARTNERSHIP AGREEMENT. To the extent that the
Articles of Incorporation or the Operating Partnership Agreement impose obligations or restrictions on the Advisor or grant the
Advisor certain rights which are not set forth in this Agreement, the Advisor shall abide by such obligations or restrictions and
such rights shall inure to the benefit of the Advisor with the same force and effect as if they were set forth herein.

 

20.             
INDEMNIFICATION BY THE COMPANY AND THE OPERATING PARTNERSHIP.

 

(a)              
The Company and the Operating Partnership shall indemnify and hold harmless the Advisor and its Affiliates, as well
as their respective officers, directors, equity holders, members, partners, stockholders, other equity holders and employees (collectively,
the “Indemnitees ,” and each, an “Indemnitee”), from all liability, claims,
damages or losses arising in the performance of their duties hereunder, and related expenses, including reasonable attorneys’
fees, to the extent such liability, claims, damages or losses and related expenses are not fully reimbursed by insurance, and to
the extent that such indemnification would not be inconsistent with the laws of the State of New York or the Articles of Incorporation.
Notwithstanding the foregoing, the Company and the Operating Partnership shall not provide for indemnification of an Indemnitee
for any loss or liability suffered by such Indemnitee, nor shall they provide that an Indemnitee be held harmless for any loss
or liability suffered by the Company and the Operating Partnership, unless all the following conditions are met:

 

(i)                
the Indemnitee has determined, in good faith, that the course of conduct that caused the loss or liability was in
the best interest of the Company and the Operating Partnership;

 

(ii)             
the Indemnitee was acting on behalf of, or performing services for, the Company or the Operating Partnership;

 

(iii)           
such liability or loss was not the result of the Indemnitee’s bad faith, fraud, willful misfeasance, intentional
misconduct, gross negligence or reckless disregard of its duties; and

 

    	 	21	 

    	 

    

(iv)            
such indemnification or agreement to hold harmless is recoverable only out of the Company’s net assets and
not from the Stockholders.

 

(b)              
Notwithstanding the foregoing, an Indemnitee shall not be indemnified by the Company and the Operating Partnership
for any losses, liabilities or expenses arising from or out of an alleged violation of federal or state securities laws by such
Indemnitee unless one or more of the following conditions are met:

 

(i)                
there has been a successful adjudication on the merits of each count involving alleged securities law violations
as to the Indemnitee;

 

(ii)             
such claims have been dismissed with prejudice on the merits by a court of competent jurisdiction as to the Indemnitee;
or

 

(iii)           
a court of competent jurisdiction approves a settlement of the claims against the Indemnitee and finds that indemnification
of the settlement and the related costs should be made, and the court considering the request for indemnification has been advised
of the position of the U.S. Securities and Exchange Commission and of the published position of any state securities regulatory
authority of a jurisdiction in which securities of the Company or the Operating Partnership were offered or sold as to indemnification
for violation of securities laws.

 

(c)              
In addition, the advancement of the Company’s or the Operating Partnership’s funds to an Indemnitee for
legal expenses and other costs incurred as a result of any legal action for which indemnification is being sought is permissible
only if all the following conditions are satisfied:

 

(i)                
the legal action relates to acts or omissions with respect to the performance of duties or services on behalf of
the Company or the Operating Partnership;

 

(ii)             
the legal action is initiated by a third party who is not a Stockholder or the legal action is initiated by a Stockholder
acting in such Stockholder’s capacity as such and a court of competent jurisdiction specifically approves such advancement;

 

(iii)           
the Indemnitee provides the Company or the Operating Partnership with a written affirmation of his or her good faith
belief that he or she has met the standard of conduct necessary for indemnification; and

 

(iv)            
the Indemnitee undertakes to repay the advanced funds to the Company or the Operating Partnership, together with
the applicable legal rate of interest thereon, in cases in which such Indemnitee is found not to be entitled to indemnification.

 

21.             
INDEMNIFICATION BY ADVISOR. The Advisor shall indemnify and hold harmless the Company and the Operating Partnership
from contract or other liability, claims, damages, taxes or losses and related expenses, including reasonable attorneys’
fees, to the extent that such liability, claims, damages, taxes or losses and related expenses are not fully reimbursed by insurance
and are incurred by reason of the Advisor’s bad faith, fraud, willful misfeasance, intentional misconduct, gross negligence
or reckless disregard of its duties; provided, however,

 

    	 	22	 

    	 

    

that the Advisor shall not be held responsible
for any action of the Board in following or declining to follow any advice or recommendation given by the Advisor.

 

22.             ADVISOR
INVESTMENT COMMITMENT. The Advisor hereby agrees that it and its Affiliates collectively shall acquire equity securities
of the Company equal to an aggregate purchase price (before any dealer or broker commissions or fees) of not less than $10 million
(the “Minimum Equity Investment”). In satisfaction of its agreement
to make the Minimum Equity Investment, the Advisor further agrees that the Advisor and its Affiliates shall (i) acquire equity
securities of the Company having an aggregate purchase price of not less than $5 million within one hundred eighty (180) days
following the Effective Date, and (ii) until such time as the Advisor and its Affiliates collectively own equity securities of
the Company having an aggregate purchase price of not less than the Minimum Equity Investment, the Advisor agrees that 100% of
the fees payable pursuant to the Annual Subordinated Performance Fee shall be payable in shares of Common Stock; provided further,
that such shares of Common Stock shall be counted towards the satisfaction of the Minimum Equity Investment. Shares of Common
Stock issuable pursuant to clause (ii) of this Section 22 shall equal the quotient of the Annual Subordinated Performance
Fee payable to the Advisor divided by the per share NAV at the time of issuance.

 

    	 	23	 

    	 

    

 

23.             
NOTICES.

 

Any notice, report or other communication
(each a “Notice”) required or permitted to be given hereunder shall be in writing unless some other method
of giving such Notice is required by the Articles of Incorporation or the Bylaws, and shall be given by being delivered by hand,
by courier or overnight carrier or by registered or certified mail to the addresses set forth below:

 

		To the Company:	Elizabeth K. Tuppeny

Lead Independent Director—Benefit Street Partners Realty Trust, Inc.

c/o Michael E. McTiernan

Hogan Lovells US LLP

Columbia Square

555 Thirteenth Street NW

Washington, D.C. 20004

 

		To the Operating Partnership:	Elizabeth K. Tuppeny

Lead Independent Director— Benefit Street Partners Realty Operating Partnership, L.P.

c/o Michael E. McTiernan

Hogan Lovells US LLP

Columbia Square

555 Thirteenth Street NW

Washington, D.C. 20004

 

		To the Advisor:	Benefit Street Partners L.L.C.

C/O Benefit Street Partners L.L.C.

9 West 57th Street

Suite 4920

New York, NY 10019

Attention: David Manlowe

 

with a copy to:

Ettore Santucci

Goodwin Procter LLP

100 Northern Avenue

Boston, MA 02210 

 

Any party may at any
time give Notice in writing to the other parties of a change in its address for the purposes of this Section 23.

 

24.             
MODIFICATION. This Agreement shall not be amended, supplemented, terminated or discharged, in whole or in part,
except by an instrument in writing signed by the parties hereto, or their respective successors or assignees.

 

25.             
SEVERABILITY. The provisions of this Agreement are independent of and severable from each other, and no provision
shall be affected or rendered invalid or unenforceable by

 

    	 	24	 

    	 

    

virtue of the fact that for any reason
any other or others of them may be invalid or unenforceable in whole or in part.

 

26.             
GOVERNING LAW. The provisions of this Agreement shall be construed and interpreted in accordance with the laws
of the State of New York as at the time in effect, without regard to the principles of conflicts of laws thereof.

 

27.             
ENTIRE AGREEMENT. This Agreement contains the entire agreement and understanding among the parties hereto with
respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and
conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express
terms hereof control and supersede any course of performance or usage of the trade inconsistent with any of the terms hereof.

 

28.             
NO WAIVER. Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege
under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or
privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver
of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or
privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party
asserted to have granted such waiver. In addition, nothing contained in this Agreement (including Section 20) shall
constitute a waiver by the Company of any of its legal rights under applicable U.S. federal securities laws or any other laws whose
applicability is not permitted to be contractually waived.

 

29.             
PRONOUNS AND PLURALS. Whenever the context may require, any pronoun used in this Agreement shall include the
corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural
and vice versa.

 

30.             
HEADINGS. The titles of sections and subsections contained in this Agreement are for convenience only, and they
neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof.

 

31.             
EXECUTION IN COUNTERPARTS. This Agreement may be executed (including by facsimile transmission) with counterpart
signature pages or in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature
appears thereon, and all of which shall together constitute one and the same instrument.

 

[Remainder of page intentionally left
blank]

 

    	 	25	 

    	 

    

 

IN WITNESS WHEREOF,
the undersigned have executed this Agreement as of the date first written above.

 

	 	Benefit Street Partners Realty TRUST, INC.
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Richard Byrne
	 	 	Name: Richard Byrne
	 	 	Title: Chief Executive Officer
	 	 	 	 
	 	 	 	 
	 	Benefit Street Partners Realty OPERATING PARTNERSHIP, L.P.
	 	 	 	 
	 	By:	Benefit Street Partners Realty Trust, Inc.
	 	 	its General Partner
	 	 	 	 
	 	 	 	 
	 		By:	/s/ Richard Byrne
	 	 	 	Name: Richard Byrne
	 	 	 	Title: Chief Executive Officer
	 	 	 	 
	 	 	 	 
	 	Benefit Street Partners L.L.C.
	 	 	 	 
	 	 	 	 
	 	By:	/s/ David Manlowe
	 	 	Name: David Manlowe
	 	 	Title: Chief Operating Officer

 

    	 	26Exhibit 10.5 Amended Non-Statutory Stock Option Plan

  

INNOCAP, INC.

 

AMENDED 2017 NON-STATUTORY STOCK OPTION PLAN 

 

1. Purpose of this Plan 

 

This Non-Statutory Stock Option Plan (the “Plan”) is intended as an employment incentive, to aid in attracting and retaining in the employ or service of Innocap, Inc. (the “Company”), a Nevada corporation, and any Affiliated Corporation, persons of experience and ability and whose services are considered valuable, to encourage the sense of proprietorship in such persons, and to stimulate the active interest of such persons in the development and success of the Company. This Plan provides for the issuance of non-statutory stock options (“NSOs” or “Options”) which are not intended to qualify as “incentive stock options” within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”) and for grants of common stock (“Stock Grants”). 

 

2. Administration of this Plan 

 

The Company’s Board of Directors (“Board”) may appoint and maintain as administrator of this Plan the Compensation Committee (the “Committee”) of the Board which shall consist of at least three members of the Board. Until such time as the Committee is duly constituted, the Board itself shall have and fulfill the duties herein allocated to the Committee. The Committee shall have full power and authority to designate Plan participants, to determine the provisions and terms of respective NSOs (which need not be identical as to number of shares covered by any NSO, the method of exercise as related to exercise in whole or in installments, or otherwise), including the NSO price, and to interpret the provisions and supervise the administration of this Plan. The Committee may, in its discretion, provide that certain NSOs not vest (that is, become exercisable) until expiration of a certain period after issuance or until other conditions are satisfied, so long as not contrary to this Plan. The Committee shall also have total authority and discretion with respect to the awarding of any Stock Grants.

 

A majority of the members of the Committee shall constitute a quorum. All decisions and selections made by the Committee pursuant to this Plan’s provisions shall be made by a majority of its members. Any decision reduced to writing and signed by all of the members shall be fully effective as if it had been made by a majority at a meeting duly held. The Committee shall select one of its members as its chairman and shall hold its meetings at such times and places as it deems advisable. If at any time the Board shall consist of seven or more members, then the Board may amend this Plan to provide that the Committee shall consist only of Board members who shall not have been eligible to participate in this Plan (or similar stock or stock option plan) of the Company or its affiliates at any time within one year prior to appointment to the Committee. 

 

All NSOs and Stock Grants granted under this Plan are subject to, and may not be exercised or, in the case of Stock Grants, sold by the recipients thereof before, the approval of this Plan by the holders of a majority of the Company’s outstanding shares, and if such approval is not obtained, all NSOs and Stock Grants previously granted shall be void. Each NSO shall be evidenced by a written agreement containing terms and conditions established by the Committee consistent with the provisions of this Plan. 

 

3. Designation of Participants 

 

The persons eligible for participation in this Plan as recipients of NSOs or Stock Grants shall include full-time and part-time employees (as determined by the Committee) and officers of the Company or of an Affiliated Corporation. In addition, directors of the Company or any Affiliated Corporation who are not employees of the Company or an Affiliated Corporation and any attorney, consultant or other adviser to the Company or any Affiliated Corporation shall be eligible to participate in this Plan. For all purposes of this Plan, any director who is not also a common law employee and is granted an option under this Plan shall be considered an “employee” until the effective date of the director’s resignation or removal from the Board of Directors, including removal due to death or disability. The Committee shall have full power to designate, from among eligible individuals, the persons to whom NSOs or Stock Grants may be granted. A person who has been granted an NSO hereunder may be granted an additional NSO or NSOs or Stock Grant(s), if the Committee shall so determine. Neither the granting of an NSO nor a Stock Grant shall not be construed as a contract of employment or as entitling the recipient thereof to any rights of continued employment. 

 

4. Stock Reserved for this Plan 

 

Subject to adjustment as provided in Paragraph 9 below, a total of 23,000,000 shares of Common Stock (“Stock”), of the Company shall be subject to this Plan. The Stock subject to this Plan shall consist of un-issued shares or previously issued shares reacquired and held by the Company or any Affiliated Corporation, and such amount of shares shall be and is hereby reserved for sale for such purpose. Any of such shares which may remain unsold and which are not subject to outstanding NSOs or Stock Grants at the termination of this Plan shall cease to be reserved for the purpose of this Plan, but until termination of this Plan, the Company shall at all times reserve a sufficient number of shares to meet the requirements of this Plan. Should any NSO or Stock Grant expire or be canceled prior to its exercise in full, the unexercised shares theretofore subject to such NSOor Stock Grant may again be subjected to an NSO or Stock Grant under this Plan. 

5. Option Price 

 

The purchase price of each share of Stock placed under NSO shall be determined by the Board but not be less than ten percent (10%) of the fair market value of such share on the date the NSO is granted or more than the fair market value of such share on the date the NSO is granted. The fair market value of a share on a particular date shall be deemed to be the average of either (i) the highest and lowest prices at which shares were sold on the date of grant, if traded on a national securities exchange, (ii) the high and low prices reported in the consolidated reporting system, if traded on a “last sale reported” system, such as NASDAQ, or (iii) the high bid and high asked price for over-the-counter securities. If no transactions in the Stock occur on the date of grant, the fair market value shall be determined as of the next earliest day for which reports or quotations are available. If the common shares are not then quoted on any exchange or in any quotation medium at the time the option is granted, then the Board of Directors or Committee will use its discretion in selecting a good faith value believed to represent fair market value based on factors then known to them. The cash proceeds from the sale of Stock are to be added to the general funds of the Company. 

 

6. Exercise Period 

 

a)The NSO exercise period shall be a term determined by the Committee but not for a period of more than ten (10) years from the date of granting of each NSO and shall automatically terminate:  

 

1)Upon termination of the optionee’s employment with the Company for cause;  

 

2)At the expiration of twelve (12) months from the date of termination of the optionee’s employment with the Company for any reason other than death, without cause; provided, that if the optioned dies within such twelve month period, subclause (iii) below shall apply; or  

 

3)At the expiration of fifteen (15) months after the date of death of the optioned.  

 

b)“Employment with the Company” as used in this Plan shall include employment with any Affiliated Corporation, and NSOs granted under this Plan shall not be affected by an employee’s transfer of employment among the Company and any Parent or Subsidiary thereof. An optionee’s employment with the Company shall not be deemed interrupted or terminated by a bona fide leave of absence (such as sabbatical leave or employment by the Government) duly approved, military leave, maternity leave or sick leave.  

 

7. Exercise of Options 

 

a)The Committee, in granting NSOs, shall have discretion to determine the terms upon which NSOs shall be exercisable, subject to applicable provisions of this Plan. Once available for purchase, un-purchased shares of Stock shall remain subject to purchase until the NSO expires or terminates in accordance with Paragraph 6 above. Unless otherwise provided in the NSO, an NSO may be exercised in whole or in part, one or more times, but no NSO may be exercised for a fractional share of Stock.  

 

b)NSOs may be exercised solely by the optioned during his lifetime, or after his death (with respect to the number of shares which the optioned could have purchased at the time of death) by the person or persons entitled thereto under the decedent’s will or the laws of descent and distribution.  

 

c)The purchase price of the shares of Stock as to which an NSO is exercised shall be paid in full at the time of exercise and no shares of Stock shall be issued until full payment is made therefore. Payment shall be made either (i) in cash, represented by bank or cashier’s check, certified check or money order or (ii) in lieu of payment for bona fide services rendered, and such services were not in connection with the offer or sale of securities in a capital raising transaction, (iii) by delivering shares of the Company’s Common Stock which have been beneficially owned by the optioned, the optionee’s spouse, or both of them for a period of at least six (6) months prior to the time of exercise (the “Delivered Stock”) in a number equal to the number of shares of Stock being purchased upon exercise of the NSO or (iv) by delivery of shares of corporate stock which are freely tradable without restriction and which are part of a class of securities which has been listed for trading on the NASDAQ system or a national securities exchange, with an aggregate fair market value equal to or greater than the exercise price of the shares of Stock being purchased under the NSO, or (v) a combination of cash, services, Delivered Stock or other corporate shares. An NSO shall be deemed exercised when written notice thereof, accompanied by the appropriate payment in full, is received by the Company. No holder of an NSO shall be, or have any of the rights and privileges of, a shareholder of the Company in respect of any shares of Stock purchasable upon exercise of any part of an NSO unless and until certificates representing such shares shall have been issued by the Company to him or her.  

2

8. Assignability 

 

No NSO shall be assignable or otherwise transferable (by the optioned or otherwise) except by will or the laws of descent and distribution or except as permitted in accordance with SEC Release No.33-7646 as effective April 7, 1999 and in particular that portion thereof which expands upon transferability as is contained in Article III entitled “Transferable Options and Proxy Reporting” as indicated in Section A 1 through 4 inclusive and Section B thereof. No NSO shall be pledged or hypothecated in any manner, whether by operation of law or otherwise, nor be subject to execution, attachment or similar process. 

 

9. Reorganizations and Recapitalizations of the Company 

 

a)The existence of this Plan and NSOs granted hereunder shall not affect in any way the right or power of the Company or its shareholders to make or authorize any and all adjustments, recapitalizations, reorganizations or other changes in the Company’s capital structure or its business, or any merger or consolidation of the Company, or any issue of bonds, debentures, preferred or prior preference stocks ahead of or affecting the Company’s Common Stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale, exchange or transfer of all or any part of its assets or business, or the other corporation act or proceeding, whether of a similar character or otherwise.  

 

b)The shares of Stock with respect to which NSOs may be granted hereunder are shares of the Common Stock of the Company as currently constituted. If, and whenever, prior to delivery by the Company of all of the shares of Stock which are subject to NSOs granted hereunder, the Company shall effect a subdivision or consolidation of shares or other capital readjustment, the payment of a Stock dividend, a stock split, combination of shares (reverse stock split) or recapitalization or other increase or reduction of the number of shares of the Common Stock outstanding without receiving compensation therefore in money, services or property, then the number of shares of Stock available under this Plan and the number of shares of Stock with respect to which NSOs granted hereunder may thereafter be exercised shall (i) in the event of an increase in the number of outstanding shares, be proportionately increased, and the cash consideration payable per share shall be proportionately reduced; and (ii) in the event of a reduction in the number of outstanding shares, be proportionately reduced, and the cash consideration payable per share shall be proportionately increased.  

 

c)If the Company is reorganized, merged, consolidated or party to a plan of exchange with another corporation pursuant to which shareholders of the Company receive any shares of stock or other securities, there shall be substituted for the shares of Stock subject to the unexercised portions of outstanding NSOs an appropriate number of shares of each class of stock or other securities which were distributed to the shareholders of the Company in respect of such shares of Stock in the case of a reorganization, merger, consolidation or plan of exchange; provided, however, that all such NSOs may be canceled by the Company as of the effective date of a reorganization, merger, consolidation, plan of exchange, or any dissolution or liquidation of the Company, by giving notice to each optioned or his personal representative of its intention to do so and by permitting the purchase of all the shares subject to such outstanding NSOs for a period of not less than thirty (30) days during the sixty (60) days next preceding such effective date.  

 

d)Except as expressly provided above, the Company’s issuance of shares of Stock of any class, or securities convertible into shares of Stock of any class, for cash or property, or for labor or services, either upon direct sale or upon the exercise of rights or warrants to subscribe therefor, or upon conversion of shares or obligations of the Company convertible into shares of Stock or other securities, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of Stock subject to NSOs granted hereunder or the purchase price of such shares.  

 

10. Purchase for Investment 

 

Unless the shares of Stock covered by this Plan have been registered under the Securities Act of 1933, as amended, each person exercising an NSO under this Plan may be required by the Company to give a representation in writing that he is acquiring such shares for his own account for investment and not with a view to, or for sale in connection with, the distribution of any part thereof. 

 

11. Effective Date and Expiration of this Plan 

 

This Plan shall be effective as of June 29, 2017, the date of its adoption by the Board, subject to the approval of the Company’s shareholders, and no NSO shall be granted pursuant to this Plan after its expiration. This Plan shall expire on June 29, 2027 except as to NSOs then outstanding, which shall remain in effect until they have expired or been exercised. 

3

12. Amendments or Termination 

 

The Board may amend, alter or discontinue this Plan at any time in such respects as it shall deem advisable in order to conform to any change in any other applicable law, or in order to comply with the provisions of any rule or regulation of the Securities and Exchange Commission required to exempt this Plan or any NSOs granted thereunder from the operation of Section 16(b) of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or in any other respect not inconsistent with Section 16(b) of the Exchange Act; provided, that no amendment or alteration shall be made which would impair the rights of any participant under any NSO or Stock Grant theretofore granted, without his consent (unless made solely to conform such NSO to, and necessary because of, changes in the foregoing laws, rules or regulations), and except that no amendment or alteration shall be made without the approval of shareholders which would: 

 

a)Increase the total number of shares reserved for the purposes of this Plan or decrease the NSO price provided for in Paragraph 5 (except as provided in Paragraph 9), or change the classes of persons eligible to participate in this Plan as provided in Paragraph 3; or  

 

b)Extend the NSO period provided for in Paragraph 6; or  

 

c)Materially increase the benefits accruing to participants under this Plan; or  

 

d)Materially modify the requirements as to eligibility for participation in this Plan; or  

 

e)Extend the expiration date of this Plan as set forth in Paragraph 11.  

 

13. Government Regulations 

 

This Plan, and the granting and exercise of NSOs or the award of Stock Grants hereunder, and the obligation of the Company to sell and deliver shares of Stock under such NSOs, shall be subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 

 

14. Liability 

 

No member of the Board of Directors, the Committee or officers or employees of the Company or any Affiliated Corporation shall be personally liable for any action, omission or determination made in good faith in connection with this Plan. 

 

15. Miscellaneous. 

 

The term “Affiliated Corporation” used herein shall mean any Parent or Subsidiary. 

 

a)The term “Parent” used herein shall mean any corporation owning 50 percent or more of the total combined voting stock of all classes of the Company or of another corporation qualifying as a Parent within this definition.  

 

b)The term “Subsidiary” used herein shall mean any corporation more than 50 percent of whose total combined voting stock of all classes is held by the Company or by another corporation qualifying as a Subsidiary within this definition.  

 

16. Options in Substitution for Other Options 

 

The Committee may, in its sole discretion, at any time during the term of this Plan, grant new options to an employee under this Plan or any other stock option plan of the Company on the condition that such employee shall surrender for cancellation one or more outstanding options which represent the right to purchase (after giving effect to any previous partial exercise thereof) a number of shares, in relation to the number of shares to be covered by the new conditional grant hereunder, determined by the Committee. If the Committee shall have so determined to grant such new options on such a conditional basis (“New Conditional Options”), no such New Conditional Option shall become exercisable in the absence of such employee’s consent to the condition and surrender and cancellation as appropriate. New Conditional Options shall be treated in all respects under this Plan as newly granted options. Option may be granted under this Plan from time to time in substitution for similar rights held by employees of other corporations who are about to become employees of the Company or an Affiliated Corporation, or the merger or consolidation of the employing corporation with the Company or an Affiliated Corporation, or the acquisition by the Company or an Affiliated Corporation of the assets of the employing corporation, or the acquisition by the Company or an Affiliated Corporation of stock of the employing corporation as the result of which it becomes an Affiliated Corporation. 

4

17. Withholding Taxes 

 

Pursuant to applicable federal and state laws, the Company may be required to collect withholding taxes upon the exercise of a NSO. The Company may require, as a condition to the exercise of a NSO, that the optioned concurrently pay to the Company the entire amount or a portion of any taxes which the Company is required to withhold by reason of such exercise, in such amount as the Committee or the Company in its discretion may determine. In lieu of part or all of any such payment, the optioned may elect to have the Company withhold from the shares to be issued upon exercise of the option that number of shares having a Fair Market Value equal to the amount which the Company is required to withhold. 

 

18. Transferability in accordance With SEC Release No. 33-7646 entitled “Registration of Securities on Form S-8” as effective April 7, 1999 

 

Notwithstanding anything to the contrary as may be contained in this Plan regarding rights as to transferability or lack thereof, all options granted hereunder may and shall be transferable to the extent permitted in accordance with SEC Release No. 33-7646 entitled “Registration of Securities on Form S-8” as effective April 7, 1999 and in particular in accordance with that portion of such Release which expands Form S-8 to include stock option exercise by family members so that the rules governing the use of Form S-8 (a) do not impede legitimate intra family transfer of options and (b) may facilitate transfer for estate planning purposes - all as more specifically defined in Article III, Sections A and B thereto, the contents of which are herewith incorporated by reference. 

 

CERTIFICATION OF PLAN ADOPTION 

 

I, the undersigned Secretary of this Corporation, hereby certify that the foregoing Innocap, Inc. Non-Statutory Stock Option Plan was duly approved by the requisite number of holders of the issued and outstanding Common Stock of this corporation as of January 23, 2018. 

 

	 

 

/s/          Paul Tidwell

   

 

By:   Paul Tidwell

         President and Chief Financial Officer

 

 

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}]]