Document:

Exhibit

EXHIBIT 10.22

EMPLOYMENT AGREEMENT
This Employment Agreement (the “Agreement”) is made effective January 19, 2016 (the “Effective Date”) by and between United Financial Bancorp, Inc., a Connecticut corporation (the “Company”), United Bank (the “Bank”) and collectively with the Company, the “Employer”) and John J. Smith (“Executive”). The Company and Executive are collectively referred to herein as the “Parties,” and individually referred to as a “Party.”

RECITALS:
WHEREAS, the Company, the Bank and Executive mutually desire to enter into an employment agreement setting forth the terms and conditions of Executive’s employment with the Company.

NOW, THEREFORE, in consideration of the mutual covenants herein contained, it is AGREED as follows:

1.    Purpose. The purpose of this Agreement is to set forth the terms and conditions of Executive’s employment with the Employer. This Agreement represents both Parties’ intentions with respect to the terms and conditions of Executive’s employment with the Employer.

2.    Definitions. For the purposes of this Agreement, the following words shall have the following meanings:

“Affiliate” means any entity that, directly or indirectly, through one or more intermediaries, controls or is controlled by, or is under common control with, another entity.

“Annual Incentive Compensation Plan” or “AICP”  means any Employer-sponsored annual incentive compensation cash bonus plan in which Executive participates, as in effect from time to time.

“Annual Cash Compensation” means the sum of (i) Executive’s Base Annual Salary at the rate in effect on  Executive’s Date of Termination and (ii) Executive’s target AICP bonus opportunity for the calendar year in which Executive’s Date of Termination occurs; provided, however, that if the target bonus opportunity has not been established for such year, the AICP amount under this definition shall be calculated using the target bonus opportunity from the immediately preceding calendar year.

“Base Annual Salary” means Executive’s base annual salary as described in Section 5(a) hereof.

“Board” mean the board of directors of the Company and/or of the Bank, as the context requires and, where appropriate, includes any committee thereof.

“Cause” means termination on account of the occurrence of any of the following events: 
 (i)    Executive’s malfeasance or nonfeasance in the performance of the material duties or responsibilities of his or her position with the Employer or any of its subsidiaries, or failure to timely carry out any material lawful and reasonable directive of the Employer, in each case if not remedied within fifteen (15) days after receipt of written notice from the Employer describing such malfeasance, nonfeasance or failure;

(ii)    Executive’s embezzlement or misappropriation of any material funds or property of the Employer or any of its subsidiaries or of any material corporate opportunity of the Employer or any of its subsidiaries;

(iii)    the conduct by Executive which is a material violation of this Agreement or any other agreement between Executive and the Employer or any of its subsidiaries or affiliates in each case, that is not remedied within fifteen (15) days after receipt of written notice from the Employer describing such conduct;

(iv)    any material violation of any generally applicable written policy of the Employer previously provided to Executive, the terms of which provide that violation may be grounds for termination of employment in each case, that is not remedied within fifteen (15) days after receipt of written notice from the Employer describing such conduct; 

(v)    the commission by Executive of an act of fraud or willful misconduct or Executive’s gross negligence, in each case that has caused or is reasonably expected to result in material injury to the Employer or any of its subsidiaries; or

(vi)    Executive’s conviction of any felony or of any misdemeanor involving moral turpitude.

Any termination for Cause of Executive shall be effective only upon (i) a determination by the majority of the Board in good faith that Cause exists, (ii) receipt by Executive of a notice in accordance with Section 12 stating in reasonable detail the facts and circumstances alleged to provide a basis for termination for Cause and (iii) Executive has been given a reasonable opportunity to be heard by the Board (together with legal counsel) (such opportunity to be given within thirty (30) days of Executive’s receipt of the notice set forth in (ii) above). 

“Change in Control” shall be deemed to have occurred if, as the result of a single transaction or a series of transactions, an event set forth in any one of the following paragraphs shall have occurred:

(i)the Company merges into or consolidates with another corporation, or merges another corporation into the Company, and as a result, with respect to the Company, less than a majority of the combined voting power of the resulting corporation immediately after the merger or consolidation is held by “Persons” (as such term is used for purposes of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) who were stockholders of the Company immediately before the merger or consolidation;

(ii)any Person (other than any trustee or other fiduciary holding securities under an employee benefit plan of the Bank or the Company), becomes the “Beneficial Owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the resulting corporation representing 50% or more of the combined voting power of the resulting corporation’s then-outstanding securities;

(iii)during any period of twenty-four months (not including any period prior to the Effective Date of this Agreement), individuals who at the beginning of such period constitute the board of directors of the Company, and any new director (other than (A) a director nominated by a Person who has entered into an agreement with the Company to effect a transaction described in subparagraphs (i), (ii) or (iv) hereof, (B) a director nominated by any Person (including the Company) who publicly announces an intention to take or to consider taking actions (including, but not limited to, an actual or threatened proxy contest) which if consummated would constitute a Change in Control or (C) a director nominated by any Person who is the Beneficial Owner, directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s securities) whose election by the board of directors of the Company or nomination for election by the Company’s stockholders was approved in advance by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority thereof; or

(iv)    the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets; 

“Code” means the Internal Revenue Code of 1986, as amended.

“Compensation Committee” means the compensation committee of the Company Board.

“Competing Business” shall mean any entity (other than the Employer and its Affiliates) that is conducting business that is the same or substantially the same as the business of the Employer.

“Confidential Information” means information (i) disclosed to or known by Executive as a consequence of or through his employment with the Company; (ii) not generally known outside the Company; and (iii) which relates to any aspect of the Company, its Affiliates or their business. “Confidential Information” includes, but is not limited to, trade secrets, proprietary information, business plans, marketing plans, financial information, compensation and benefit information, cost and pricing information, customer contacts, suppliers, vendors, and information provided to the Company or its Affiliates by a third party under restrictions against disclosure or use by the Company, its Affiliates or others.

“Date of Termination” means the date of termination of Executive’s employment by the Company and that is a “Separation from Service” within the meaning of Code Section 409A, which means a termination of Executive’s employment with the Company (and its controlled group within the meaning of Treasury Regulation §1.409A-1(h)(3)); provided, however, that the Company and Executive reasonably anticipate that no further services will be performed after the termination date or that the level of bona fide services Executive will perform after such date (whether as an employee or an independent contractor) would permanently decrease to no more than twenty percent (20%) of the average level of bona fide services 

performed (whether as an employee or an independent contractor) over the immediately preceding 36-month period or the full period of service to the Company if Executive has been providing services to the Company for less than 36 months.

“Disability” or “Disabled” means any physical or mental incapacity, disease or affliction, as determined by a legally qualified medical practitioner selected by the Company which prevents Executive to a substantial degree from performing his obligations after reasonable accommodation from the Company.

“Equity-Based Awards” means stock options, restricted stock, restricted stock units, performance vesting stock, performance stock units, and any other award granted by the Company, which derives its value based upon the Company’s common stock, regardless whether such award is ultimately intended to be settled in stock or cash.

“Good Reason” means the occurrence of any one of the following without Executive’s prior written consent:

(i)    any material adverse alteration (including an adverse change to Executive’s upward reporting requirements) or material diminution in Executive’s authority, duties or responsibilities under this Agreement;

(ii)    a reduction in Executive’s base salary or target bonus opportunity (as determined by the Compensation Committee in good faith), except as part of a reduction of less than ten percent (10%) that is applicable to all of the Employer’s senior executives;

(iii)    a relocation of the offices at which Executive is principally employed, which relocation increases the distance between Executive’s residence and such offices by more than thirty five (35) miles; or

(iv)    the Employer’s failure to obtain assumption of this Agreement by a successor.

“Long Term Incentive Plan” or “LTIP” means any plan of the Company pursuant to which Executive may receive Equity Based Awards or cash awards earned over a multi-year period, as in effect from time to time.

“Post-Termination Period” means the twenty four (24) month period following Executive’s Date of Termination.

“Retirement” means a termination of Executive’s employment under circumstances as shall constitute retirement from the Employer based on age and/or years of employment, as determined by the Board, in its sole discretion, in accordance with written policies adopted by the Board from time to time.  In absence of the adoption of such policy, Executive’s resignation on or after attainment of age 65 shall be deemed to be “Retirement” for purposes of this Agreement.

“Territory” means any county in which the Bank maintains a business office.

3.    Term. This Agreement shall become effective on the Effective Date and shall continue in effect through the second anniversary of the Effective Date, unless earlier terminated as hereinafter provided.  Commencing on the second anniversary of the Effective Date and each anniversary of the Effective Date thereafter, the term of this Agreement shall automatically be extended for one (1) additional year unless, unless, no later than sixty (60) days prior to the applicable anniversary date, the Employer or Executive gives written notice to the other Party that such Party does not wish to extend the term of this Agreement, in which case this Agreement shall terminate on the applicable anniversary date.

4.    Duties and Responsibilities. Commencing on the Effective Date of this Agreement, Executive shall diligently render his services to the Company as Executive Vice President, Chief Information and Administrative Officer in a manner customary for such officers or equivalent positions, and shall use his best efforts and good faith in fulfilling such responsibilities and in accomplishing such directives. Executive agrees to devote his full-time efforts, abilities, and attention to the business of the Company, and shall not engage in any activities which will interfere with such efforts. Executive shall well and faithfully serve the Company during the continuance of his employment hereunder and shall use his best efforts to promote the interests of the Company.

5.    Compensation and Benefits. In return for the services to be provided by Executive pursuant to this Agreement, the Company agrees to pay Executive as follows:

(a)    Base Annual Salary. Executive shall receive a Base Annual Salary annually of $320,000 payable in accordance with the Employer’s customary payroll practices.  The annual salary to be paid by the Employer to Executive shall be reviewed at least annually and may from time to time be increased (but may not be decreased) any such increased amount shall then be referred to as “Base Annual Salary” for the purposes of this Agreement.

(b)    Annual Incentive Compensation Plan. Executive shall be eligible to participate in any AICP, subject to the terms of the then applicable plan.  AICP awards for each calendar year shall be payable in the following calendar year as determined by the Board or Compensation Committee.

(c)    Long Term Incentive Plan. Executive shall participate in the Long Term Incentive Plan of the Company, as in effect from time to time, as determined by and on such terms approved by the Board or the Compensation Committee, in its sole discretion.

(d)    Benefits. Executive shall be entitled to participate in the Company’s various employee benefit plans as the same may be constituted from time to time in the same manner as other senior management executives of the Company, subject to the terms and conditions of the plans, as same may be amended or terminated pursuant to their terms from time to time as determined by the Company in its sole discretion.

(e)    Expenses. Executive shall be reimbursed by the Employer for all reasonable business expenses incurred by Executive in performance of his duties hereunder upon the submission of appropriate documentation for such expenses in accordance with the Employer’s policies then in effect.

(f)    Leave.  Executive will be provided with such vacation leave, sick leave and other paid time off as are provided generally to the Employer’s senior management executives. All time off must be taken in accordance with the Employer’s policy for senior management executives, as may be amended from time to time. 

6.    Termination.

(a)    Death, Disability or Retirement. The Company may terminate Executive’s employment if he is Disabled for six (6) consecutive months or for a total of six (6) months during any 12-month period. Executive’s employment will be automatically terminated upon his death or Retirement.

(b)    Termination for Cause. The Company may terminate Executive’s employment for Cause by written notice to Executive.

(c)    Termination Without Cause. The Company may terminate Executive’s employment without Cause upon written notice to Executive.

(d)    Termination by Executive Without Good Reason. Executive may terminate his employment upon 30 days’ written notice to the Company. In the event Executive terminates his employment in this manner, he shall remain in the Company’s employ subject to all terms and conditions of this Agreement for the entire 30-day period unless instructed otherwise by the Company in writing.

(e)    Termination by Executive for Good Reason. Executive may terminate his employment for “Good Reason” by giving the Company advance written notice of such intent and the grounds thereof within a period not to exceed 30 days after the existence of the event constituting Good Reason. After Executive gives such notice, the Company shall have 30 days to correct the Good Reason event, and if the Company does not correct the Good Reason event within the prescribed time, Executive must terminate his employment within 61 days of the date of the event constituting Good Reason in order to be entitled to any benefits under Section 7(c) of this Agreement. In addition, once an event constitutes Good Reason, if the Company does not correct the event and if Executive does not give notice (as described above) and terminate his employment within 61 days of the event, such specific instance of the event shall no longer constitute Good Reason under this Agreement.

(f)    Resignation of All Positions. Executive agrees that after any termination of his employment, he will tender his resignation from any position he may hold as an officer or director of the Company or any Affiliate.

7.    Severance and Change in Control Payments and Benefits. Executive shall be entitled to the following compensation under the following circumstances:

(a)    Death, Disability or Retirement.  In the event Executive’s employment is terminated as a result of his death, Disability or Retirement, the following shall apply:

(i)  Executive’s rights under any LTIP or any other executive compensation arrangement in which Executive then participates shall be determined in accordance with the controlling plan document and/or award agreements.

(ii)  Any unpaid Base Annual Salary shall be paid through the Date of Termination in accordance with the Employer’s normal payroll practices. 

(iii)  Any unpaid AICP award for the calendar year preceding the calendar year which includes Executive’s Date of Termination shall be paid when the AICP awards for other participants are paid.

(iv)  Executive’s award under any AICP to which he would otherwise be entitled in the calendar year which includes his Date of Termination shall be prorated for the period of his participation in the AICP during the relevant calendar year, and payable at the same time other participants in the AICP receive payment. 

(v)  Executive shall be reimbursed for all expenses incurred and in accordance with Section 5(e). 

(vi)  Executive shall be paid all accrued unused vacation in accordance with the Employer’s vacation policy, as amended from time to time.

(vii)  Executive shall be entitled to all benefits under Section 5(d) subject to the terms and conditions of the applicable plan documents and arrangements, as amended from time to time.

(viii) If Executive’s employment is terminated by reason of death of Disability, the Employer shall pay Executive (or, in the event of death, to Executive’s surviving spouse, a lump sum amount equal, on an after-tax basis, to the cost of continuation of group health coverage under COBRA for the maximum period allowable by law based upon the rates for such coverage in effect for Executive (and his dependents, if applicable) on the Date of Termination.  Such amount shall be paid in a cash lump sum payment not later than ten (10) days following Executive’s Date of Termination.

(b)    Termination for Cause or Without Good Reason. If Executive is terminated by the Employer for Cause or if Executive resigns or otherwise terminates without Good Reason, the following shall apply:

(i) No AICP award shall be paid for the calendar year which includes Executive’s Date of Termination.

(ii) Executive’s rights under any LTIP or any other executive compensation arrangement in which Executive then participates shall be determined in accordance with the controlling plan document and/or award agreements.

(iii) Executive’s unpaid Base Annual Salary shall be paid through to the Date of Termination in accordance with the Employer’s normal payroll practices. 

(iv)  Any unpaid AICP award for a calendar year preceding the calendar year of Executive’s Date of Termination shall be paid in accordance with the terms of the applicable AICP and when the AICP awards for other participants are paid.

(v) Executive shall be reimbursed for all expenses incurred in accordance with Section 5(e).

(vi)  Executive shall be paid all accrued unused vacation in accordance with the Employer’s vacation policy, as amended from time to time.

(vii)  Executive shall be entitled to all benefits under Section 5(d) subject to the terms and conditions of the applicable plan documents and arrangements, as amended from time to time.

(c)    Termination Without Cause or for Good Reason. In the event Executive’s employment with the Employer is terminated by the Employer without Cause or by the Executive for Good Reason, the following shall apply:

(i)  Employer shall pay Executive an amount equal to the one and one-half (1 1⁄2) times the Executive’s Annual Cash Compensation.  Subject to Section 7(f), such amount shall be paid in a lump sum cash payment. 

(ii)  Executive’s rights under any LTIP or any other executive compensation arrangement in which Executive then participates shall be determined in accordance with the controlling plan document and/or award agreements.

(iii)  Executive’s unpaid Base Annual Salary shall be paid through his Date of Termination in accordance with the Company’s normal payroll practices. 

(iv)  Any unpaid AICP award for a year preceding the calendar year which includes the Executive’s Date of Termination shall be paid when the AICP awards for other participants are paid.

(v)  The Employer shall pay Executive his award under any AICP in effect for the calendar year which includes his Date of Termination (A) calculated by reference to the level of attainment for the applicable performance criteria (financial, individual or otherwise) in effect for such calendar year, (B) on the basis of a deemed 12-month calendar year participation in the plan, and (C) at the same time other participants in the AICP receive payment. 

(vi)  Executive shall be reimbursed for all expenses incurred and in accordance with Section 5(e).

(vii) Executive shall be paid all accrued unused vacation in accordance with the Company’s vacation policy, as amended from time to time.

(viii) Executive shall be entitled to all benefits under Section 5(d) subject to the terms and conditions of the applicable plan documents and arrangements, as amended from time to time.

(ix) The Employer shall pay Executive a lump sum amount equal, on an after-tax basis, to the cost of group health and group life insurance coverage under the Employer’s plans for a period of 18 months based upon the rates for such coverage in effect for Executive (and his dependents, if applicable) on the Date of Termination.  Such amount shall be paid in a cash lump sum payment at the same time payment under Section 7(c)(i) is made.

(d)    Change in Control. Notwithstanding the foregoing subsections (a) - (c) of this Section 7 and in lieu thereof, if, within the period beginning with the effective date of a Change in Control and continuing through the second anniversary thereof, the Employer terminates Executive’s employment without Cause or Executive terminates his employment for Good Reason, then:

(i)  Subject to Section 7(f), the Employer shall pay Executive a lump sum cash amount equal to three (3) times Executive’s Annual Cash Compensation.

(ii)  Executive’s rights under any LTIP or any other executive compensation arrangement in which Executive then participates shall be determined in accordance with the controlling plan document and/or award agreements.

(iii)  Any unpaid AICP award for a year preceding the calendar year which includes the Executive’s Date of Termination shall be paid when the AICP awards for other participants are paid.

(iv)  The Employer shall pay Executive his award under any AICP in effect for the calendar year which includes his Date of Termination (A) calculated on the basis of the Employer and Executive having fully met all performance criteria (financial, individual or otherwise) for a target bonus (which will not include any multiplier that may be applicable to result in a maximum bonus), (B) paid on the basis of a deemed 12-month calendar year participation in the plan, and (C) payable at the same time other participants in the plan receive payment. 

(v)  Executive shall be promptly reimbursed all reasonable business expenses incurred by him upon reasonable documentation and in accordance with the Employer’s policy prior to the date of the Change in Control.

(vi)  The Employer shall pay Executive a lump sum amount equal, on an after-tax basis, to the cost of continuation of group health and group life insurance coverage under the Employer’s plans for a period of 36 months based upon the rates for such coverage in effect for Executive (and his dependents, if applicable) on the Date of Termination.  Such amount shall be paid in a cash lump sum payment at the same time payment under Section 7(d)(i) is made.

(vii)  If any payments are payable under this Section 7(d), in no event will any amounts be paid or payable under Sections 7(a)-(c).

(e)    Potential Change in Control.  Notwithstanding any other provision of this Agreement, if Executive’s employment is terminated by the Employer without Cause or by Executive for Good Reason and such termination without Cause or the act, circumstance or event which constitutes Good Reason is otherwise in connection with or in anticipation of a Change of Control and occurred after either a letter of intent or agreement with respect to such a transaction has been executed by the  Company or a public announcement of a proposed transaction is made, (i) Executive shall be entitled to receive the payments described in Section 7(c) and (ii) in the event of the subsequent consummation of such transaction, Executive shall 

receive an additional payment equal to the difference between the payment paid or payable under Section 7(c) and the payment Executive would receive under Section 7(d) had Executive’s termination without Cause or for Good Reason occurred on the effective date of the Change in Control.  Section 7(f) shall apply separately with respect to any payment or payments made pursuant to this Section 7(e).

(f)    Release of All Claims.  Executive acknowledges and agrees that the Employer’s obligation to make any and all payments, other than the payment of any earned or accrued and unpaid Base Salary and accrued vacation, to which Executive may become entitled to receive under Section 7(c) or (d) is conditioned upon, and subject to, Executive’s execution of a release of claims (substantially in the form of Exhibit A attached hereto) becoming effective by the 60th day following the Employee’s termination of employment.   To the extent such payments are not exempt from Code Section 409A pursuant to paragraph (j) below, and the 60-day period crosses two calendar years, the payment shall be made on the first payroll date in the second calendar year that occurs on or after the expiration of the release revocation period, regardless of the date the release is signed.  

(g)    Change in Control Best Payments Determination. In the event the payments and benefits described in this Section 7, taken together with all other payments benefits payable to Executive in connection with a Change in Control (together, the CIC Severance Benefits), could subject Executive to an excise tax under Section 4999 of the Code (the “Excise Tax”), then notwithstanding the provisions of Section 7 the Company shall reduce the CIC Severance Benefits (the “Benefit Reduction”) by the amount necessary to result in Executive not being subject to the Excise Tax if such reduction would result in Executive’s “Net After Tax Amount” attributable to the CIC Severance Benefits being greater than it would be if no Benefit Reduction was effected. In the event of any over or under reduction pursuant to the previous sentence, the amount of the Benefit Reduction shall be adjusted (and any additional payments by the Company or any required repayments by Executive, as applicable, shall be promptly made) to the minimum amount necessary to result in Executive not being subject to the Excise Tax.  For this purpose “Net After Tax Amount” shall mean the net amount of CIC Severance Benefits Executive is entitled to receive after giving effect to all federal, state and local taxes which would be applicable to such payments, including, but not limited to, the Excise Tax. The determination of whether any such Benefit Reduction shall be effected shall be made by a nationally recognized public accounting firm, selected by the Company and reasonably acceptable to Executive, and such determination shall be binding on both Executive and the Company. In the event the payments to the Executive are required to be reduced pursuant to this Section 7(g), the portions of the payments that would be paid in cash under this Agreement will be reduced first and before any non-cash payments.

(h)    No Duty to Mitigate. Executive shall not be required to mitigate the amount of any payment or other benefit required to be paid to Executive pursuant to this Agreement, whether by seeking other employment or otherwise, nor shall the amount of any such payment or other benefit be reduced on account of any compensation earned by Executive as a result of employment. The Employer’s obligation to make the payments provided for in this Agreement (including, but not limited to, the payments under Section 7(c) or (d)) and otherwise perform its obligations hereunder shall not be affected by any counterclaim, recoupment, defense or other claim, right or action which the Employer may have against Executive or others, exclusive of payroll withholdings required by law.

(i)    Specified Employees. Notwithstanding any other provision herein, if Executive is a “Specified Employee” (as that term is defined in Code Section 409A) as of his Date of Termination, then any amounts under this Agreement which are payable upon his “Separation from Service” (within the meaning of Code Section 409A) and subject to the provisions of Code Section 409A and not otherwise excluded under Code Section 409A, shall not be paid until the first (1st) business day that is at least six (6) months after the date after Executive’s Date of Termination (the “Waiting Period”). Any payments that would have been made to Executive during the Waiting Period but for this Section 7(i) shall instead be made to Executive in the form of a lump sum payment on the date that payments commence pursuant to the preceding sentence with interest (calculated at the short-term applicable federal rate compounded semi-annually) on the amount not paid during the Waiting Period from the Date of Termination through the date of payment.

(j)     Section 409A Exemptions.  For purposes of Code Section 409A, each “payment” (as defined by Code Section 409A) made under this Agreement will be considered a “separate payment.” In addition, for purposes of Code Section 409A, each such payment will be deemed exempt from Code Section 409A to the fullest extent possible under (i) the “short-term deferral” exemption of Treasury Regulation § 1.409A-1((b)(4), and (ii) with respect to any additional amounts paid no later than the second (2nd) calendar year following the calendar year containing your Termination Date, the “involuntary separation” pay exemption of Treasury Regulation § 1.409A-1(b)(9)(iii), which are hereby incorporated by reference.

8.    Non‐Competition, Non‐Solicitation, and Confidentiality. The Employer and Executive acknowledge and agree that while Executive is employed pursuant to this Agreement, the Company will give Executive access to Confidential 

Information of the Employer and its Affiliates.  Executive will also be in contact with customers and potential customers of the Employer. In consideration of all of the foregoing, the Employer and Executive agree as follows:

(a)     Non-Competition. Executive agrees that during the Executive’s employment by the Employer hereunder, and for the duration of the Post-Termination Period, the Executive will not (except on behalf of or with the prior written consent of the Employer), within the Territory, either directly or indirectly, on the Executive’s own behalf or in the service or on behalf of others, perform for any Competing Business any services which are the same as or essentially the same as the services the Executive provided for the Employer.

(b)     Non-Solicitation of Customers. Executive agrees that during the Executive’s employment by the Employer hereunder, and in the event of the Executive’s Termination of Employment, regardless of the reason, for the duration of the Post-Termination Period, the Executive will not (except on behalf of or with the prior written consent of the Employer) on the Executive’s own behalf or in the service or on behalf of others, solicit, divert or appropriate or attempt to solicit, divert or appropriate, any business from any of the Employer’s customers, including prospective customers actively sought by the Employer, with whom the Executive has or had material contact during the last two (2) years of the Executive’s employment with Employer, for purposes of providing products or services that are competitive with those provided by the Employer.

(c)     Non-Solicitation of Employees. Executive agrees that during the Executive’s employment by the Employer hereunder, and in the event of the Executive’s Termination of Employment, regardless of the reason, for the duration of the Post-Termination Period, the Executive will not (except on behalf of or with the prior written consent of the Employer) on the Executive’s own behalf or in the service or on behalf of others, solicit, recruit or hire away or attempt to solicit, recruit or hire away, any employee of the Employer with whom the Executive had material contact during the last two (2) years of the Executive’s employment, whether or not such employee is a full-time employee or a temporary employee of the Employer, such employment is pursuant to written agreement, for a determined period, or at will.

(d)    Confidential Information. Executive further agrees that he will not, except as the Company may otherwise consent or direct in writing, reveal or disclose, sell, use, publish, or otherwise disclose to any third party any Confidential Information or proprietary information of the Company, or authorize anyone else to do these things at any time either during or subsequent to his employment with the Company. This Section 8(d) shall continue in full force and effect after termination of Executive’s employment and after the termination of this Agreement for any reason. Executive’s obligations under this Section 8(d) of this Agreement with respect to any specific Confidential Information and proprietary information shall cease when that specific portion of Confidential Information and proprietary information becomes publicly known, in its entirety and without combining portions of such information obtained separately. It is understood that such Confidential Information and proprietary information of the Company include matters that Executive conceives or develops, as well as matters Executive learns from other employees of the Company.

(e)    Breach. Executive agrees that any breach of Sections 8(a), (b), (c), or (d), above cannot be remedied solely by money damages, and that in addition to any other remedies the Company may have, the Company is entitled to obtain injunctive relief against Executive. Nothing herein, however, shall be construed as limiting the Company’s right to pursue any other available remedy at law or in equity, including recovery of damages and termination of this Agreement.

(f)    Independent Covenants. All covenants contained in this Section 9 shall be construed as agreements independent of any other provision of this Agreement, and the existence of any claim or cause of action by Executive against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of such covenants.

9.    Return of Company Property. Executive agrees to execute and deliver such documents and take all other actions as the Company may request from time to time in order to effect the transfer and delivery to the Company of any of the Company’s or its Affiliate’s assets in the possession or subject to the control of Executive including, without limitation, the Company’s or its Affiliate’s computers, printers, books, records, files, databases, software, Confidential Information, and other documents in whatever form or medium and wherever located.

10.    Assignment. This Agreement may be assigned by the Company, but cannot be assigned by Executive. An assignment of this Agreement by the Company shall not relieve the Company of any liability or obligation under this Agreement except any such assignment in connection with or as a result of a Change in Control (including, but not limited to, by operation of law).

11.    Binding Agreement. The Parties acknowledge that this Agreement shall be binding upon and inure to the benefit of (a) Executive’s heirs, successors, personal representatives, and legal representatives and (b) any successor of the 

Company. Any such successor of the Company shall be deemed substituted for the Company under the terms of this Agreement for all purposes. As used herein, “successor” shall include any person, firm, corporation, or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company.

12.    Notices. All notices pursuant to this Agreement shall be in writing and sent certified mail, return receipt requested, by hand delivery or by overnight delivery service addressed as follows:

If to Executive:

John J. Smith
287 Mount Prospect Road
Far Hills, NJ 07931

If to the Company:    
        
United Bank
45 Glastonbury Boulevard
Glastonbury, CT 06033
Attention: Chief Executive Officer

13.    Waiver. No waiver by either Party to this Agreement of any right to enforce any term or condition of this Agreement, or of any breach hereof, shall be deemed a waiver of such right in the future or of any other right or remedy available under this Agreement.

14.    Severability. If any provision of this Agreement is determined to be void, invalid, unenforceable, or against public policy, such provisions shall be deemed severable from the Agreement, and the remaining provisions of the Agreement will remain unaffected and in full force and effect. Furthermore, any breach by the Company of any provision of this Agreement shall not excuse Executive’s compliance with the requirements of Sections 9, to the extent they are otherwise enforceable.

15.    Arbitration.  Except with respect to injunctive relief which may be sought by the Employer or Executive from a court in Hartford County, Connecticut, to which the Parties hereby submit to personal jurisdiction, the Parties agree to resolve any and all claims or controversies past, present, or future arising out of or relating to this Agreement, Executive’s employment and/or termination of employment with the Company to binding arbitration under the Federal Arbitration Act, before one neutral arbitrator in Glastonbury, Connecticut, under the American Arbitration Association (“AAA”) National Rules for the Resolution of Employment Disputes. If the Parties cannot agree on one arbitrator, a list of seven (7) arbitrators will be requested from AAA, and the arbitrator will be selected using alternate strikes with Executive striking first. The Parties further agree that (i) except as expressly awarded in arbitration and subject to Section 25 below, each party shall be responsible for its own expenses, including but not limited to attorneys’ fees in connection with the cost of the arbitration except that the fees of the arbitrators shall be shared equally by Executive and the Company, (ii) collective actions are not permissible unless agreed upon by the parties in writing, (iii) administrative proceedings under the National Labor Relations Act and Title VII of the Civil Rights Act are not precluded, (iv) the work of Executive involves interstate commerce, and (v) the award rendered by the arbitrator is final and binding, and judgment thereon may be entered in any court having jurisdiction thereof. The invalidity or unenforceability of any provision of this Section shall not affect the validity or enforceability of any other provision of this Agreement which shall remain in full force and effect; provided, however, that any claim the Company has for breach of the covenants contained in Section 9 of this Agreement shall not be subject to mandatory arbitration, and may be pursued in a court of law or equity.

16.    Entire Agreement. The terms and provisions contained herein shall constitute the entire agreement between the Parties with respect to Executive’s employment with the Company during the time period covered by this Agreement.  This Agreement replaces and supersedes any and all existing agreements entered into between Executive and the Company relating generally to the same subject matter.

17.    Modification of Agreement. This Agreement may not be changed or modified or released or discharged or abandoned or otherwise terminated, in whole or in part, except by an instrument in writing signed by Executive and an authorized representative of the Employer.

18.    Understand Agreement.  Executive represents and warrants that he has read and understood each and every provision of this Agreement, acknowledges that he has obtained independent legal advice from attorneys of his choice, and confirms that Executive has freely and voluntarily entered into this Agreement.

19.    Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Connecticut without giving any effect to the conflict of laws provisions thereof.

20.    Code Section 409A. The Parties agree that the Company may amend and/or operate this Agreement to be exempt from or to comply with Code Section 409A including, but not limited to, using the definitions or other terms required by Code Section 409A and including without limitation any notices, rulings, interpretations or regulations issued under Code Section 409A after the date hereof to avoid the application of penalty taxes under Code Section 409A. The Company and Executive shall cooperate in good faith for the adoption of such amendments and/or the operation of the Agreement to avoid the application of penalty taxes under Code Section 409A. The Parties agree that Executive shall have no right to specify the calendar year during which any payment hereunder shall be made.

21.    No Guarantee of Tax Consequences. None of the Company nor any of its Affiliates or their officers, directors or employees guarantees or shall be responsible or liable for the federal, state, local, domestic and foreign, tax consequences to Executive respecting any payments or benefits provided to Executive under this Agreement, including but not limited to, any excise taxes that may be imposed under Code Section 409A. Executive acknowledges that the Company has advised him to consult his own counsel and/or tax advisor respecting all of the terms of this Agreement.

22.    Withholding Taxes. The Employer may withhold from all salary, bonuses, or other benefits or payments under this Agreement all federal, state and local taxes as shall be required pursuant to any law or governmental ruling or regulation as reasonably determined by the Employer.

23.    Legal Fees on Change in Control. If a Date of Termination occurs after a Change in Control occurs, the Company agrees, upon reasonable documentation, to reimburse to the full extent permitted by law, all legal fees and expenses which Executive, Executive’s legal representatives or Executive’s family may reasonably incur arising out of or in connection with any arbitration or litigation, if applicable, concerning the validity or enforceability of any provision of the Agreement, or any action by Executive, Executive’s legal representatives, or Executive’s family to enforce his or their rights under this Agreement if the Executive is the prevailing party in such action.

24.    Regulatory Limitation.

(a)    FDIC Golden Parachute Limitations. Notwithstanding anything contained in this Agreement to the contrary, no payments shall be made pursuant to this Agreement or otherwise in contravention of the requirements of Section 2[18(k)] of the Federal Deposit Insurance Act (the “FDIA”) (12 U.S.C. 1828(k)) and Part 359 of the FDIC Rules and Regulations, 12 C.F.R. 359 (collectively, the “FDIC Golden Parachute Restrictions”). 

(b)    Other Bank Regulatory Limitations. If the Executive is removed from office and/or permanently prohibited from participating in the conduct of the affairs of any depository institution by an order issued under Section 8(e) or 8(g) of the FDIA (12 U.S.C. 1818(e) and (g)), the Employer shall have the right to terminate all obligations of the Employer under this Agreement as of the effective date of such order, except for the payment of Base Annual Salary due and owing on the effective date of said order, and expense reimbursement incurred as of the effective date of termination. If the Executive is suspended from office and/or temporarily prohibited from participating in the conduct of the Bank’s affairs by a notice served under Section 8(e) or 8(g) of the FDIA (12 U.S.C. 1818(e) and (g)), the Employer shall have the right to suspend all obligations of the Employer under this Agreement as of the date of service, unless stayed by appropriate proceedings. If the charges in the notice are dismissed, the Employer shall reinstate prospectively any of its obligations which were suspended. If the FDIC is appointed receiver or conservator under Section 11(c) of the FDIA (12 U.S.C. 1821(c)) of the Company or any depositary institution controlled by the Company, the Employer shall have the right to terminate all obligations of the Employer under this Agreement as of the date of such receivership or conservatorship, other than any rights of the Executive that vested prior to such appointment. If the Employer is in default (as defined in Section 3(x)(1) of the FDIA), all obligations under this Agreement shall terminate as of the date of default, but the vested rights of the parties shall not be affected. If the FDIC provides open bank assistance under Section 13(c) of the FDIA (12 U.S.C. 1823(c)) to the Company or any depository institution controlled by the Company, but excluding any such assistance provided to the industry generally, the Employer shall have the right to terminate all obligations of the Employer under this Agreement as of the date of such assistance, other than any rights of the Employee that vested prior to the FDIC action. If the FDIC requires a transaction under Section 13(f) or 13(k) of the FDIA (12 U.S.C. 1823(f) and (k)) by the Company or any depository institution controlled by the Company, the Employer shall have the right to terminate all obligations of the Employer under this 

Agreement as of the date of such transaction, other than any rights of the Employee that vested prior to the transaction. Notwithstanding the foregoing provisions of this Section 24(b), any vested rights of the Executive may be subject to such modifications that are consistent with the authority of the FDIC. 

(c)    Regulatory Approval. Notwithstanding the timing for the payment of severance under this Agreement, no such payments shall be made or commence, as applicable, that require the concurrence or consent of the appropriate federal banking agency of the Employer pursuant to 12 C.F.R. Section 359 prior to the receipt of such concurrence or consent. Any payments suspended by operation of this Section 24(c) shall be paid in a lump sum within thirty (30) days following receipt of the concurrence or consent of the appropriate banking regulators of the Employer or as otherwise directed by such regulators.

(d)    State Banking Limitations. All obligations under this Agreement are further subject to such conditions, restrictions, limitations and forfeiture provisions as may separately apply pursuant to any applicable state banking laws. 

25.    Apportionment of Obligations. The obligations for the payment of the amounts otherwise payable pursuant to this Agreement shall be apportioned between the Company and the Bank as they may agree from time to time in their sole discretion.

26.    Counterparts. Any number of counterparts of this Agreement may be executed and each such counterpart shall be deemed to be an original instrument, but all such counterparts together shall constitute but one instrument. This Agreement may be executed by portable document format (PDF) or facsimile signature which signature shall be binding upon the Parties.

[Signature Page Follows]

IN WITNESS WHEREOF, the Parties have executed this Agreement effective as of the Effective Date first written above.

UNITED FINANCIAL BANCORP, INC.

    /s/  Kristen A. Johnson                                                       
Kristen A. Johnson, Chair of Compensation Committee

UNITED BANK

    /s/  Kristen A. Johnson                                                       
Kristen A. Johnson, Chair of Compensation Committee

    /s/  John. J. Smith                                                              
John J. Smith, Executive

Exhibit A

RELEASE OF CLAIMS 

This Release of Claims (the “Agreement”) is made and entered into by and among United Financial Bancorp, Inc., a Connecticut corporation (the “Company”), United Bank (the “Bank” and collectively with the Company, the “Employer”), and _________________ (the “Executive”)

1.    SEPARATION. Executive’s employment with the Employer will terminate on ______________ or such later date as may be determined by the parties (“Separation Date”). The parties acknowledge that Executive’s termination from employment will result in a “Separation from Service” as defined in Section 409A of the Internal Revenue Code. Executive further agrees that the Executive hereby resigns as an officer and director of the Employer and any related or affiliated entities as of the Separation Date.

2.    CONSIDERATION. In consideration of the Executive’s decision to enter into this Agreement, the Employer will continue to employ Executive through the Separation Date and will provide Executive severance pay in accordance with the terms of the employment agreement between the Employer and the Executive dated ________________, 2015 (the “Employment Agreement”). federal, state and local tax withholdings and other legal deductions may be applied to the above payment as determined by the Employer in its sole discretion. 

Whether or not Executive executes this Agreement, the Employer will pay Executive any and all wages for all hours worked up to and through the Separation Date within the appropriate time frame required by applicable law. If Executive fails or refuses to execute this Agreement, or if Executive revokes this Agreement as provided herein, Executive will not be entitled to the consideration set forth above. 

3.    FULL AND FINAL RELEASE. 

(a)    In consideration of the payments being provided to Executive above, Executive, for himself, his attorneys, heirs, executors, administrators, successors and assigns, fully, finally and forever releases and discharges the Bank and all other affiliated companies, as well as its and their successors, assigns, officers, owners, directors, agents, representatives, attorneys, and employees (all of whom are referred to throughout this Agreement as the “Releasees”), of and from all claims, demands, actions, causes of action, suits, damages, losses, and expenses, of any and every nature whatsoever, as a result of actions or omissions occurring through the date Executive signs this Agreement. Specifically included in this waiver and release are, among other things, any and all claims related to any severance pay plan, any and all claims related to Executive’s employment and separation from employment or otherwise, including without limitation: (1) Title VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991; (2) the Americans with Disabilities Act, as amended; (3) 42 U.S.C. §1981; (4) the Age Discrimination in Employment Act (29 U.S.C. §§621-624); (5) 29 U.S.C. §206(d)(1); (6) Executive Order 11246; (7) Executive Order 11141; (8) Section 503 of the Rehabilitation Act of 1973; (9) Executive Retirement Income Security Act (ERISA); (10) the Occupational Safety and Health Act; (11) the Worker Adjustment and Retraining Notification (WARN) Act; (12) the Family and Medical Leave Act and (14) other federal, state and local discrimination laws, including those of the State of Connecticut. 

Executive further acknowledges that Executive is releasing, in addition to all other claims, any and all claims based on any tort, whistle-blower, personal injury, defamation, invasion of privacy or wrongful discharge theory; retaliatory discharge theory; any and all claims based on any oral, written or implied contract or on any contractual theory (including the Employment Agreement); any claims based on a severance pay plan; and all claims based on any other federal, state or local constitution, regulation, law (statutory or common), or other legal theory, as well as any and all claims for punitive, compensatory, and/or other damages, back pay, front pay, fringe benefits and attorneys’ fees, costs or expenses.

(b)    Nothing in this Agreement, however, is intended to waive Executive’s entitlement to vested benefits under any other executive compensation or employee benefit plan or arrangement in which Executive participates or to which Executive is a party. Furthermore, the parties specifically agree that this release does not cover, and Executive expressly reserves, indemnification rights existing to the Executive as a current or former director and/or officer of the Employer under the Articles and Bylaws of the Employer and pursuant to applicable law and in accordance with any D&O policy existing for former officers and directors of the Employer. Finally, the above release does not waive claims that Executive could make, if available, for unemployment or workers’ compensation or claims that cannot be released by private agreement.

(c)    Executive understands that this Agreement does not bar the Executive from filing a complaint and/or charge with any appropriate federal, state, or local government agency or cooperating with said agency in its investigation. Executive agrees, however, that the Executive shall not be entitled to receive any relief or recovery (monetary or otherwise) in connection with any complaint or charge brought against the Releasees, without regard as to who brought said complaint or charge.

4.    ADVICE OF COUNSEL. Executive acknowledges that the Executive has been and is hereby advised by the Employer to consult with an attorney in regard to this matter. Executive understands that Executive is responsible for the costs of any such legal services incurred in connection with such consultation.

5.    POST-EMPLOYMENT COOPERATION. Executive agrees to fully cooperate with the Employer in the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Employer which relate to events or occurrences that transpired or which failed to transpire while Executive was employed by the Employer. Executive also agrees to cooperate fully with the Employer in connection with any internal investigation or review, or any investigation or review by any federal, state or local regulatory authority, relating to events or occurrences that transpired or failed to transpire while Executive was employed by the Employer. Executive’s full cooperation in connection with such matters shall include, but not be limited to, providing information to counsel, being available to meet with counsel to prepare for discovery or trial and acting as a witness on behalf of the Employer at a mutually convenient times. 

6.    NO OTHER CLAIMS. Executive represents that Executive has not filed, nor assigned to others the right to file, nor are there currently pending, any complaints, charges or lawsuits against the Releasees with any governmental agency or any court or in any arbitration forum. 

7.    NON-DISPARAGEMENT. Executive agrees that Executive has not (including during the time period while this Agreement was under consideration by Executive) and will not make statements to clients, customers and suppliers of the Employer or to other members of the public that are in any way disparaging or negative towards the Employer, the Employer’s products or services, or the Employer’s representatives or employees.

The Employer will advise the members of its Boards of Directors and all executive officers of the Employer (collectively, the “Persons to be Advised”) that they should not make public statements that are in any way disparaging or negative towards the Executive. The Employer will advise the Persons to be Advised that a non-disparagement agreement is in effect, and will use reasonable efforts to enforce compliance with this Agreement. Notwithstanding the foregoing agreement, the parties hereto recognize and acknowledge that the Employer will not be liable for statements between the Employer and its independent auditors or statements necessary to comply with applicable law.

8.    NON-ADMISSION OF LIABILITY OR WRONGFUL CONDUCT. This Agreement shall not be construed as an admission by the Employer of any liability or acts of wrongdoing or discrimination, nor shall it be considered to be evidence of such liability, wrongdoing, or discrimination.

9.    RETURN OF PROPERTY. Executive acknowledges, understands, and agrees that Executive will turn over to _________________ all documents, files, memoranda, records, Employer Information (as defined in the Employment Agreement), credit cards, records, books, manuals, computer equipment, computer software, pagers, cellular phones, facsimile machines, PDAs, keys and electronic keys or access cards into the building and any other equipment or documents, and all other physical or electronic property of similar type that Executive received from the Employer and/or that Executive used in the course of his employment with the Employer and that are the property of the Employer. Executive agrees that Executive will not delete, destroy or erase any data stored on or associated with such property, including but not limited to data stored on computers, servers, phones, or other electronic devices. Executive further agrees to return to _______________ any and all hard copies of any documents which are the subject of a document preservation notice or other legal hold and to notify ______________________ of the location of any electronic documents which are subject to a legal hold. 

10.    CONFIDENTIALITY. The nature and terms of this Agreement are strictly confidential and they have not been and shall not be disclosed by Executive at any time to any person (including the Employer’s employees) except Executive’s lawyer, accountant, or immediate family without the prior written consent of an officer of the Employer, except as necessary in any legal proceedings directly related to the provisions and terms of this Agreement, to prepare and file income tax forms, or pursuant to court order after reasonable notice to the Employer. Executive may disclose that Executive is subject to an agreement not to disclose trade secrets and confidential information where necessary to comply with such confidentiality agreement. Executive agrees that Executive is responsible for informing these persons of the confidential nature of this Agreement and that any breach of this confidentiality provision by any of these persons shall be deemed a breach by Executive. 

11.    GOVERNING LAW. This Agreement shall be interpreted under the laws of the State of Connecticut.

12.    SEVERABILITY. The provisions of this Agreement are severable, and if any part of this Agreement except Paragraphs 3, 5 or 7 are found by a court of law to be unenforceable, the remainder of the Agreement will continue to be valid and effective, and the court is authorized to amend relevant provisions of the Agreement to carry out the intent of the parties to the extent legally permissible. If Paragraph 3, 5 or 7 is found by a court of competent jurisdiction to be unenforceable, the parties agree to seek a determination by the court as to the rights of the parties, including whether Executive is entitled under those circumstances and the relevant law to retain the benefits paid to Executive under this Agreement.

13.    SOLE AND ENTIRE AGREEMENT. This Agreement and the Employment Agreement set forth the entire agreement between the parties with respect to the subject matters covered by this Agreement and the Employment Agreement; provided however, that all continuing obligations of confidentiality, non-competition or non-solicitation under the Employment Agreement shall survive. Any other prior agreements between or directly involving the parties to the Agreement and the Employment Agreement with respect to the subject matters covered by this Agreement and the Employment Agreement are superseded by the terms of this Agreement and the Employment Agreement and thus are rendered null and void. 

14.    NO OTHER PROMISES. Executive affirms that the only consideration for his signing this Agreement is that set forth in Paragraph 2 that no other promise or agreement of any kind has been made to or with Executive by any person or entity to cause Executive to execute this document, and that Executive fully understands the meaning and intent of this Agreement, including but not limited to, its final and binding effect.

15.    NO VIOLATION OF THE LAW. Executive represents and acknowledges that Executive is unaware of any conduct, actions or inactions by the Employer or anyone employed by the Employer which would violate any federal, state or local law, any common law, or any rule promulgated by any administrative body. Executive further acknowledges that Executive has disclosed to ____________________ any relevant facts known to Executive of any conduct which violates any Employer policy or standard.

16.    LEGALLY BINDING AGREEMENT. Executive understands and acknowledges that this Agreement contains a full and final release of claims against the Employer; and that Executive has agreed to its terms knowingly, voluntarily, and without intimidation, coercion or pressure.

17.    ADVICE OF COUNSEL / CONSIDERATION AND REVOCATION PERIODS. Executive hereby acknowledges and agrees that this Agreement and the termination of Executive’s employment and all actions taken in connection therewith are in compliance with the Age Discrimination in Employment Act and the Older Workers Benefit Protection Act and that the releases set forth herein shall be applicable, without limitation, to any claims brought under these Acts. Executive acknowledges that the Executive has been and is hereby advised by the Employer to consult with an attorney in regard to this matter. Executive understands that Executive is responsible for the costs of any such legal services incurred in connection with such consultation. Executive further acknowledges that Executive has been given more than twenty-one (21) days from the time that Executive receives this Agreement to consider whether to sign it. Executive shall have seven (7) days from the date Executive signs this Agreement to revoke the Agreement. To revoke, Executive must ensure that written notice is delivered to ______________________________________________, by the end of the day on the seventh calendar day after Executive signs this Agreement. If Executive does not revoke this Agreement within seven (7) days of signing, this Agreement will become final and binding on the day following such seven (7) day period. 

This Agreement includes a release of all known and unknown claims through the date of this Agreement. Executive should carefully consider all of its provisions before signing it. Executive’s signature below indicates Executive’s understanding and agreement with all of the terms in this Agreement. 

IN WITNESS WHEREOF, the Parties have executed this Agreement effective as of ______________.

UNITED FINANCIAL BANCORP, INC.

___________________________________________
                            

UNITED BANK

__________________________________________
                        

___________________________________________
ExecutiveExhibit 10.1

 

SECOND AMENDED AND RESTATED MANAGEMENT
AGREEMENT

 

This SECOND AMENDED AND RESTATED MANAGEMENT
AGREEMENT (this “Management Agreement”), is effective as of April 1, 2017, is made and entered into by and among
JERNIGAN CAPITAL, INC., a Maryland corporation, (the “Company”), JERNIGAN CAPITAL OPERATING COMPANY LLC (f/k/a
Jernigan Capital Operating Partnership LP, a Delaware limited liability company (the “Operating Company”) and
JCap Advisors, LLC, a Delaware limited liability company (the “Manager”).

 

WITNESSETH: 

 

WHEREAS, the Company is a corporation operating
in a manner that qualifies for election as a real estate investment trust (“REIT”) for U.S. federal income tax purposes
and that intends to make such election;

 

WHEREAS, the Operating Company is a wholly
owned subsidiary of the Company;

 

WHEREAS, the Company and each of its Subsidiaries,
including the Operating Company, effective April 1, 2015, engaged the Manager to provide certain management and advisory services
to them on the terms and conditions hereinafter set forth, and the Manager has continuously provided such services since that time
in compliance with this Agreement; and

 

WHEREAS, the parties desire to amend and
restate this Agreement to modify the manner in which certain expenses incurred by the Manager, but directly paid or reimbursed
by unaffiliated third parties in connection with Investments originated and processed by the Manager, are accounted for.

 

NOW, THEREFORE, for the mutual promises
made herein and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree
to amend and restate this Management Agreement as follows:

 

Section 1. Definitions. The following
terms have the following meanings assigned to them:

 

(a)       “Affiliate”
means with respect to any Person, (i) any other Person directly or indirectly controlling, controlled by, or under common control
with such other Person, (ii) any executive officer, general partner or employee of such Person, (iii) any member of the board of
directors or board of managers (or bodies performing similar functions) of such Person, and (iv) any legal entity for which such
Person acts as an executive officer or general partner.

 

(b)       “Agreement”
means this Management Agreement, as amended, restated or supplemented from time to time.

 

(c)       “Bankruptcy”
means with respect to any Person, (a) the filing by such Person of a voluntary petition seeking liquidation, reorganization, arrangement
or readjustment, in any form, of its debts under Title 11 of the United States Code or any other federal, state or foreign insolvency
law, or such Person’s filing an answer consenting to or acquiescing in any such petition, (b) the making by such Person of
any assignment for the benefit of its creditors, (c) the expiration of 90 days after the filing of an involuntary petition under
Title 11 of the Unites States Code, an application for the appointment of a receiver for a material portion of the assets of such
Person, or an involuntary petition seeking liquidation, reorganization, arrangement or readjustment of its debts under any other
federal, state or foreign insolvency law, provided that the same shall not have been vacated, set aside or stayed within such 90-day
period or (d) the entry against it of a final and nonappealable order for relief under any bankruptcy, insolvency or similar law
now or hereinafter in effect.

 

    	 

     

    

 

(d)       “Base
Management Fee” means an amount equal to 0.375% of the Company stockholders’ equity (a 1.5% annual rate) calculated
and payable quarterly in arrears in cash.

 

For purposes of calculating the base management
fee, the Company stockholders’ equity means: (a) the sum of (i) the net proceeds from all issuances of the Company’s
equity securities since inception (allocated on a pro rata daily basis for such issuances during the fiscal quarter of any such
issuance), plus (ii) the Company’s retained earnings at the end of the most recently completed fiscal quarter (without taking
into account any non-cash equity compensation expense incurred in current or prior periods); less (b) any amount that the Company
pays to repurchase the Common Stock since inception; provided that if the Company’s retained earnings are in a net deficit
position (following any required adjustments set forth below), then retained earnings shall not be included in stockholders’
equity. Stockholders’ equity also excludes 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 accounting principles generally accepted
in the United States, or GAAP, and one-time events pursuant to changes in GAAP (such as a cumulative change to the Company’s
operating results as a result of a codification change pursuant to GAAP), and certain non-cash items not otherwise described above
(such as depreciation and amortization), in each case after discussions between the Company’s Manager and the Independent
Directors and approval by a majority of the Independent Directors.

 

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

 

(f)       “Business
Day” means any day except a Saturday, a Sunday or a day on which banking institutions in New York, New York are not required
to be open.

 

(g)       “Code”
means the Internal Revenue Code of 1986, as amended.

 

(h)       “Common
Stock” means the common stock, par value $0.01, of the Company.

 

(i)       “Company
Account” shall have the meaning set forth in Section 5 of this Agreement.

 

(j)       “Core
Earnings” means net income (loss) determined under accounting principles generally accepted in the United States of America,
or GAAP, plus non-cash equity compensation expense, the incentive fee, depreciation and amortization (to the extent that the Company
forecloses on any facilities underlying the Company’s target investments), any unrealized losses or other non-cash expense
items reflected in GAAP net income (loss), less any unrealized gains reflected in GAAP net income. The amount will be adjusted
to exclude one-time events pursuant to changes in GAAP and certain other non-cash charges after discussions between the Manager
and the Independent Directors and after approval by a majority of the Independent Directors.

 

    	2 

     

    

 

(k)       “Covered
Person” shall have the meaning set forth in Section 12(a) of this Agreement.

 

(l)     
  “Effective Termination Date” shall have the meaning set forth in Section 13(a) of this
Agreement.

 

(m)      “Excess
Funds” shall have the meaning set forth in Section 2(l) of this Agreement.

 

(n)       “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

(o)       “Expenses”
shall have the meaning set forth in Section 10(a) of this Agreement.

 

(p)       “GAAP”
means generally accepted accounting principles, as applied in the United States.

 

(q)       “Governing
Instruments” means, with regard to any entity, the articles of incorporation and bylaws in the case of a corporation,
certificate of limited partnership (if applicable) and the partnership agreement in the case of a general or limited partnership,
the articles of formation and the operating agreement in the case of a limited liability company, the trust instrument in the case
of a trust, or similar governing documents, in each case as amended from time to time.

 

(r)       “Incentive
Fee” means an amount, not less than zero, determined pursuant to the following formula:

 

IF = .20 times (A minus (B times .08)) minus C

 

In the foregoing formula:

 

		(i)	“A” equals the Company’s Core Earnings for the previous 12-month period;

		(ii)	“B” equals (A) the weighted average of the issue price per share to the public of the Common Stock of all of the
Company’s public offerings of the Common Stock, multiplied by (B) the weighted average number of all shares of the Common
Stock outstanding (including any restricted stock units and any restricted stock shares of the Company’s Common Stock in
the previous 12-month period and shares of the Common Stock which may be issued upon the conversion of any outstanding units of
the Operating Company); and

		(iii)	“C” equals the sum of any incentive fees earned by the Manager with respect to the first three fiscal quarters
of such previous 12-month period.

 

    	3 

     

    

 

; provided, however, that no incentive
fee shall be paid with respect to any fiscal quarter unless cumulative annual stockholder total return for the four most recently
completed fiscal quarters is greater than 8%. Any computed incentive fee earned but not paid because of the foregoing hurdle will
accrue until such 8% cumulative annual stockholder total return is achieved. The total return for this purpose will be calculated
by adding stock price appreciation (based on the volume-weighted average of the closing price of the Company’s Common Stock
on the NYSE (or other applicable trading market) for the last ten consecutive trading days of the applicable computation period
minus the volume-weighted average of the closing market price of the Company’s Common Stock for the last ten consecutive
trading days of the period immediately preceding the applicable computation period) plus dividends per share of Common Stock paid
during such computation period, divided by the volume-weighted average of the closing market price of the Company’s Common
Stock for the last ten consecutive trading days of the period immediately preceding the applicable computation period.

 

(s)       “Independent
Directors” means the members of the Board of Directors who are not officers or employees of the Manager or any Person
directly or indirectly controlling or controlled by the Manager, and who are otherwise “independent” in accordance
with the NYSE’s corporate governance listing standards (or the rules of any other national securities exchange on which the
Common Stock is listed).

 

(t)       “Initial
Public Offering” means the Company’s sale of the Common Stock to the public through underwriters pursuant to the
Company’s Registration Statement on Form S-11 (No. 333-202219)

 

(u)       “Initial
Term” shall have the meaning set forth in Section 13(a) of this Agreement.

 

(v)       “Internalization
Formulas” means (i) the Manager’s earnings before interest, taxes, depreciation and amortization (adjusted for
unusual, extraordinary and non-recurring charges and expenses), or “EBITDA” (excluding any reimbursements from the
Company), annualized based on the most recent quarter ended, multiplied by a specific multiple, or EBITDA Multiple, set forth below
depending on the Company’s achieved total annual return, and (ii) the Company’s equity market capitalization multiplied
by a specific percentage, or Capitalization Percentage, set forth below depending on the Company’s achieved total return.

 

For purposes of the computations above,
the EBITDA Multiple and Capitalization Percentage, respectively, for specific levels of total return are (i) 5.0 and 5.0% if total
return is less than 8.0%; (ii) 5.5 and 5.5% if total return is at least 8.0% and not more than 12.0%; and (iii) 6.0 and 6.0% if
total return is greater than 12.0%. For purposes of the foregoing computation, total return will be calculated by adding (i) the
difference (if any, but not a negative number) between the volume-weighted average of the closing price per share of the Common
Stock on the NYSE (or other applicable trading market) for the last ten consecutive trading days of the computation period and
the Initial Public Offering price per share (taking into account any stock splits, subdivisions, or reclassifications), plus (ii)
dividends per share paid in respect of the Common Stock since the Initial Public Offering, dividing the result by the number of
full months elapsed since the Initial Public Offering, and multiplying the result by 12.

 

    	4 

     

    

 

(w)       “Internalization
Price” has the meaning set forth in Section 17(e) of this Agreement.

  

(x)       “Internalization
Transaction” means a transaction in which the Manager contributes to the Operating Company all of the assets of the Manager
including, without limitation, all furniture, fixtures, leasehold improvements, contract rights, computer software, employment
and customer relationships, goodwill, going concern value, other identifiable intangible assets and other business assets then
owned by the Manager, or, in the alternative, the equity owners of the Manager contribute to the Operating Company 100% of the
outstanding equity interests in the Manager.

 

(y)       “Investment
Company Act” means the Investment Company Act of 1940, as amended.

 

(z)       “Investment
Committee” shall have the meaning set forth in Section 2(k) of this Agreement.

 

(aa)      “Investment
Guidelines” shall have the meaning set forth in Section 2(b)(i) of this Agreement.  

 

(bb)     “Investments”
means the investments of the Company and the Subsidiaries.

 

(cc)      “Manager Change of Control”
means the sale, lease, transfer or other disposition, in one or a series of related transactions, of interests in the Manager which
will transfer to any Person other than an Affiliate of the Company the power to direct or control the Manager; provided, however,
that Manager Change of Control shall not include (i) any public offering of the equity interests of the Manager, or (ii) any assignment
of this Agreement by the Manager as permitted hereby and in accordance with the terms hereof.

 

(dd)      “Monitoring
Services” shall have the meaning set forth in Section 2(b) of this Agreement.  

 

(ee)      “Notice of Proposal to
Negotiate” shall have the meaning set forth in Section 13(a) of this Agreement.

 

(ff)       “NYSE” means the New York Stock Exchange.  

 

(gg)      “OC
Units” means units of limited liability company interests in the Operating Company.

 

(hh)      “Person” means
any individual, corporation, partnership, joint venture, limited liability company, estate, trust, unincorporated association,
any federal, state, county or municipal government or any bureau, department or agency thereof and any fiduciary acting in such
capacity on behalf of any of the foregoing.

 

    	5 

     

    

 

(ii)        “Portfolio
Management Services” shall have the meaning set forth in Section 2(b) of this Agreement.

 

(jj)        “REIT” shall
have the meaning set forth in the recitals of this Agreement.

 

(kk)      “Renewal Term”
shall have the meaning set forth in Section 13(a) of this Agreement, with the last day of the last Renewal Term being March
31, 2023.

 

(ll)        “SEC” means the
U.S. Securities and Exchange Commission.

 

(mm)     “Securities Act”
means the Securities Act of 1933, as amended.

 

(nn)      “Subsidiary”
means a corporation, limited liability company, partnership, joint venture or other entity or organization of which: (a) the Company
or any other subsidiary of the Company is a general partner or managing member; or (b) voting power to elect a majority of
the board of directors, trustees or others performing similar functions with respect to such entity or organization is held by
the Company or by any one or more of the Company’s subsidiaries. Initially, the only Subsidiary shall be the Operating Company.

 

(oo)      “Target
Assets” means the types of investments described under “Business—Our Investment Strategy” and “Business—Target
Investments” in the Company’s prospectus dated  March 26, 2015, relating to the Initial Public Offering,
subject to, and including any changes to the Investment Guidelines that may be approved by the Manager and the Board of Directors
from time to time.

 

(pp)      “Termination Fee”
shall have the meaning set forth in Section 13(b) of this Agreement.

 

(qq)      “Termination Notice”
shall have the meaning set forth in Section 13(a) of this Agreement.

 

(rr)        “Treasury Regulations”
means the regulations promulgated under the Code, as amended from time to time.

 

(ss)      The
words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement
shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section references are to
this Agreement unless otherwise specified.

 

(tt)       The meanings given to terms defined
herein shall be equally applicable to both the singular and plural forms of such terms. The words include, includes and including
shall be deemed to be followed by the phrase “without limitation.”

 

    	6 

     

    

 

Section 2. Appointment and Duties of the Manager.

 

(a)       The
Company and each of its Subsidiaries hereby appoint the Manager to (i) manage the Investments and day-to-day operations of the
Company and each of its Subsidiaries subject to the terms and conditions set forth in this Agreement. The Manager hereby agrees
to use its commercially reasonable efforts to perform each of the duties set forth herein. The appointment of the Manager shall
be exclusive to the Manager except to the extent that the Manager otherwise agrees, in its sole and absolute discretion, and except
to the extent that the Manager elects, in accordance with the terms of this Agreement, to cause the duties of the Manager hereunder
to be provided by third parties.

 

(b)       The
Manager, in its capacity as manager of the Investments and the day-to-day operations of the Company and its Subsidiaries, at all
times will be subject to the supervision of the Board of Directors, and the Manager will have only such functions and authority
as the Company may delegate to it including, without limitation, managing the Company’s business affairs in conformity with
the Investment Guidelines and policies that are approved and monitored by the Board of Directors. The Company and the Manager hereby
acknowledge the recommendation by the Manager and the approval by the Board of Directors, of the Investment Guidelines, including
the Company’s investment strategy in the Target Investments. The Company and the Manager hereby acknowledge and agree that,
during the term of this Agreement, any proposed changes to the Company’s investment strategy that would modify or expand
the Target Investments may only be recommended by the Manager and shall require the approval of the Board of Directors and the
Manager. The Manager will be responsible for the day-to-day operations of the Company and the Subsidiaries and will perform (or
cause to be performed) such services and activities relating to the assets and operations of the Company and the Subsidiaries as
may be appropriate, including, without limitation:

 

(i)       serving
as consultant to the Company and the Subsidiaries with respect to the periodic review of the investment guidelines and other parameters
for the Investments, financing activities and operations, which review shall occur no less often than annually, any modification
to which shall be approved by a majority of the Independent Directors (such guidelines as initially approved and attached hereto
as Exhibit A, as the same may be modified, supplemented or waived with such approval, the “Investment Guidelines”);

 

(ii)       representing
and making recommendations to the Company and the Subsidiaries in connection with the origination and finance of, and commitment
to originate and finance, commercial mortgage loans on and related equity interests in self-storage facilities (including on a
portfolio basis), including conducting loan underwriting and the execution of loan transactions, as well as the purchase of real
estate-related debt securities and other real estate-related assets, and the sale and commitment to sell such assets;

 

(iii)       identifying,
investigating, analyzing and selecting possible investment opportunities and originating, acquiring, financing, retaining, selling,
restructuring or disposing of Investments consistent with the Investment Guidelines;

 

(iv)       with
respect to prospective purchases, sales or exchanges of Investments, conducting negotiations on behalf of the Company and the Subsidiaries
with sellers, purchasers and brokers and, if applicable, their respective agents and representatives;

 

    	7 

     

    

 

(v)       negotiating
and entering into, on behalf of the Company and the Subsidiaries, bank credit facilities, repurchase agreements, interest rate
swap agreements and all other agreements and instruments required for the Company and the Subsidiaries to conduct its business;

 

(vi)       engaging
and supervising, on behalf of, and at the expense of, the Company and the Subsidiaries, independent contractors that provide investment
banking, securities brokerage, mortgage brokerage and other financial services, due diligence services, underwriting review services,
legal and account services, and all other services (including transfer agent and registrar services) as may be required relating
to the Investments (or potential Investments) and, to the extent the Manager is able to negotiate same, procuring the direct payment
by any borrower or other counterparty to any Investment of all third party costs, including, without limitation, legal fees and
expenses, incurred in connection with such Investment, provided that such third party costs may be paid out of the proceeds of
any Investment funded by the Company or the Operating Company;

 

(vii)       coordinating
and managing operations of any joint venture or co-investment interests held by the Company and the Subsidiaries and conducting
all matters with the joint venture or co-investment partners;

 

(viii)       providing
executive and administrative personnel, office space and office services required in rendering services to the Company and the
Subsidiaries;

 

(ix)       administering
the day-to-day operations and performing and supervising the performance of such other administrative functions necessary to the
management of the Company and the Subsidiaries as may be agreed upon by the Manager and the Board of Directors, including, without
limitation, services in respect of any equity incentive plans of the Company, the collection of revenues and the payment of debts
and obligations of the Company and the Subsidiaries and maintenance of appropriate computer services to perform such administrative
functions;

 

(x)       communicating
on behalf of the Company and the Subsidiaries with the holders of any of their equity or debt securities as required to satisfy
the reporting and other requirements of any governmental bodies or agencies or trading markets and to maintain effective relations
with such holders, including website maintenance, logo design, analyst presentations, investor conferences and annual meeting arrangements;

 

(xi)       counseling
the Company in connection with policy decisions to be made by the Board of Directors;

 

(xii)       evaluating
and recommending to the Board of Directors hedging strategies and engaging in hedging activities on behalf of the Company and
the Subsidiaries, consistent with such strategies as modified from time to time, while maintaining the Company’s qualification
as a REIT and within the Investment Guidelines;

 

(xiii)       counseling
the Company regarding the maintenance of its qualification as a REIT and monitoring compliance with the various REIT qualification
tests and other rules set out in the Code and Treasury Regulations thereunder and using commercially reasonable efforts to cause
the Company to qualify for taxation as a REIT;

 

    	8 

     

    

 

(xiv)       counseling
the Company and the Subsidiaries regarding the maintenance of their exemptions from the status of an investment company required
to register under the Investment Company Act, monitoring compliance with the requirements for maintaining such exemptions and using
commercially reasonable efforts to cause them to maintain such exemptions from such status;

 

(xv)       furnishing
reports and statistical and economic research to the Company and the Subsidiaries regarding their activities and services performed
for the Company and the Subsidiaries by the Manager;

 

(xvi)       monitoring
the operating performance of the Investments and providing periodic reports with respect thereto to the Board of Directors, including
comparative information with respect to such operating performance and budgeted or projected operating results;

 

(xvii)       investing
and reinvesting any money and securities of the Company and the Subsidiaries (including investing in short-term Investments pending
investment in other Investments, payment of fees, costs and expenses, or payment of dividends or distributions to stockholders
and partners of the Company and the Subsidiaries) and advising the Company and the Subsidiaries as to their capital structure and
capital raising;

 

(xviii)       causing
the Company and the Subsidiaries to retain qualified accountants and legal counsel, as applicable, to assist in developing appropriate
accounting procedures and systems, internal controls and other compliance procedures and testing systems with respect to financial
reporting obligations and compliance with the provisions of the Code applicable to REITs and, if applicable, TRSs, and to conduct
quarterly compliance reviews with respect thereto;

 

(xix)       assisting
the Company and the Subsidiaries in qualifying to do business in all applicable jurisdictions and to obtain and maintain all appropriate
licenses;

 

(xx)       assisting
the Company and the Subsidiaries in complying with all regulatory requirements applicable to them with respect to their business
activities, including preparing or causing to be prepared all financial statements required under applicable regulations and contractual
undertakings and all reports and documents, if any, required under the Exchange Act, the Securities Act, or by the NYSE;

 

(xxi)       assisting
the Company and the Subsidiaries in taking all necessary action to enable them to make required tax filings and reports, including
soliciting stockholders for all information required by the provisions of the Code and Treasury Regulations applicable to REITs;

 

(xxii)       placing,
or arranging for the placement of, all orders pursuant to the Manager’s investment determinations on behalf of the Company
and the Subsidiaries, either directly with the issuer or with a broker or dealer (including any affiliated broker or dealer);

 

(xxiii)       handling
and resolving on behalf of the Company and/or the Subsidiaries all claims, disputes or controversies (including all litigation,
arbitration, settlement or other proceedings or negotiations) in which the Company and/or the Subsidiaries may be involved or to
which they may be subject arising out of their day-to-day operations (other than with the Manager or its Affiliates), subject to
such limitations or parameters as may be imposed from time to time by the Board of Directors;

 

    	9 

     

    

 

(xxiv)       using
commercially reasonable efforts to cause expenses incurred by the Company and the Subsidiaries or on their behalf to be commercially
reasonable or commercially customary and within any budgeted parameters or expense guidelines set by the Board of Directors from
time to time;

 

(xxv)       advising
the Company and the Subsidiaries with respect to (A) long-term financing vehicles for Investments and (B) the offering and selling
of securities publicly or privately in connection with any such structured financing;

 

(xxvi)       
serving as the Company’s and the Subsidiaries’ consultant with respect to decisions regarding any financings, hedging
activities or borrowings undertaken by the Company and the Subsidiaries, including (A) assisting the Company and the Subsidiaries
in developing criteria for debt and equity financing that are specifically tailored to their investment objectives, and (B) advising
the Company and the Subsidiaries with respect to obtaining appropriate financing for the Investments;

 

(xxvii)       
providing the Company and the Subsidiaries with portfolio management services and monitoring services as described below;

 

(xxviii)       
arranging marketing materials, advertising, industry group activities (such as conference participations and industry organization
memberships) and other promotional efforts designed to promote the Company’s and the Subsidiaries’ business;

 

(xxix)       
performing such other services as may be required from time to time for the management of, and other activities relating to, the
assets and business of the Company and the Subsidiaries as the Board of Directors shall reasonably request or as the Manager shall
deem appropriate under the particular circumstances; and

 

(xxx)       using
commercially reasonable efforts to cause the Company and the Subsidiaries to comply with all applicable laws.

 

Without limiting the foregoing, the Manager
will perform portfolio management services (the “Portfolio Management Services”) on behalf of the Company and
the Subsidiaries with respect to the Investments. Such services will include, but not be limited to, consulting with the Company
on the purchase and sale of, and other investment opportunities in connection with, the Investments; the collection of information
and the submission of reports pertaining to the assets of the Company and the Subsidiaries, interest rates and general economic
conditions; periodic review and evaluation of the performance of the Company’s and the Subsidiaries’ portfolio of assets;
acting as a liaison between the Company and the Subsidiaries and banking, mortgage banking, investment banking and other parties
with respect to the purchase, financing and disposition of assets; and other customary functions related to portfolio management.
Additionally, the Manager will perform monitoring services (the “Monitoring Services”) on behalf of the Company
and the Subsidiaries with respect to any activities provided by third parties. Such Monitoring Services will include, but not be
limited to, negotiating servicing agreements; acting as a liaison between servicer providers of the assets and the Company and
the Subsidiaries; reviewing servicers’ delinquency, foreclosure and other reports on assets; supervising claims filed under
and insurance policies; and enforcing the obligation of any servicer to repurchase assets.

 

    	10 

     

    

 

(c)       For
the period and on the terms and conditions set forth in this Agreement, the Company and each of the Subsidiaries hereby constitutes,
appoints and authorizes the Manager as its true and lawful agent and attorney-in-fact, in its name, place and stead, to negotiate,
execute and deliver and enter into such finance agreements and arrangements and securities repurchase and reverse repurchase agreements
and arrangements, brokerage agreements, interest rate swap agreements, “to be announced” forward contracts, agreements
relating to borrowings under programs established by the U.S. Government and/or any agencies thereunder and such other agreements,
instruments and authorizations on their behalf, on such terms and conditions as the Manager, acting in its sole and absolute discretion,
deems necessary or appropriate. This power of attorney is deemed to be coupled with an interest.

 

(d)       The
Manager may enter into agreements with other parties, including its Affiliates, for the purpose of engaging one or more parties
for and on behalf, and except as otherwise agreed, at the sole cost and expense, of the Company and the Subsidiaries, to provide
credit analysis, risk management services, asset management and/or other services to the Company and the Subsidiaries (including,
without limitation Portfolio Management Services and Monitoring Services) pursuant to the agreement(s) with terms that are then
customary for agreements regarding the provision of services to companies that have assets similar in type, quality and value to
the assets of the Company and the Subsidiaries; provided that (i) any such agreements entered into with Affiliates of the Manager
shall be (A) on terms no more favorable to such Affiliate than would be obtained from an independent third party on an arm’s
length basis and (B) approved by a majority of the Independent Directors, (ii) any such agreements entered into with parties other
than Affiliates of the Manager shall be approved by a majority of the Independent Directors, and (iii) the Manager shall remain
liable for the performance of such Portfolio Management Services and Monitoring Services.

 

(e)       To
the extent that the Manager deems necessary or advisable, the Manager may, from time to time, propose to retain one or more additional
entities for the provision of sub-advisory services to the Manager in order to enable the Manager to provide the services to the
Company and the Subsidiaries specified by this Agreement; provided that any such agreement (i) shall be on terms and conditions
substantially identical to the terms and conditions of this Agreement or otherwise not adverse to the Company and the Subsidiaries,
(ii) shall not result in an increased Base Management Fee or additional expenses payable hereunder, and (iii) shall be approved
by a majority of the Independent Directors of the Company.

 

(f)       The
Manager may retain, for and on behalf and, at the sole cost and expense of the Company and the Subsidiaries (except such cost and
expense as may be directly paid or reimbursed to the Manager by any unaffiliated third party), such services of accountants, legal
counsel, appraisers, insurers, brokers, transfer agents, registrars, investment banks, financial advisors, due diligence firms,
banks and other lenders and others as the Manager deems necessary or advisable in connection with the management and operations
of the Company and the Subsidiaries. Notwithstanding anything contained herein to the contrary, the Manager shall have the right
to cause any such services to be rendered by its employees or Affiliates. Except as otherwise provided herein and except to the
extent directly paid or reimbursed to the Manager by any unaffiliated third party, the Company and the Subsidiaries shall pay or
reimburse the Manager or its Affiliates performing such services for the cost thereof; provided that such costs and reimbursements
are (A) no greater than those which would be payable to outside professional or consultants engaged to perform such services pursuant
to agreements negotiated on an arm’s length basis and (B) approved by a majority of the Independent Directors.

 

    	11 

     

    

 

(g)       As
frequently as the Manager may deem necessary or advisable, or at the direction of the Company’s Board of Directors, the Manager
shall, at the sole cost and expense of the Company and the Subsidiaries, prepare, or cause to be prepared, with respect to any
Investment, reports and other information reasonably requested by the Company.

 

(h)       The
Manager shall prepare, or cause to be prepared, at the sole cost and expense of the Company and the Subsidiaries, all reports,
financial or otherwise, with respect to the Company and the Subsidiaries reasonably required by the Company’s Board of Directors
in order for the Company or the Subsidiaries to comply with their Governing Instruments or any other materials required to be filed
with any governmental body or agency, including but not limited to, the SEC, and shall prepare, or cause to be prepared, all materials
and data necessary to complete such reports and other materials including, without limitation, an annual audit of the Company’s
and the Subsidiaries’ books of account by a nationally recognized independent registered public accounting firm.

 

(i)       The
Manager shall prepare regular reports for the Board of Directors to enable the Board of Directors to review the Company’s
and the Subsidiaries’ acquisitions, portfolio composition and characteristics, credit quality, performance and compliance
with the Investment Guidelines and other policies approved by the Board of Directors.

 

(j)       If
requested by the Company or the Subsidiaries, the Manager shall provide such internal audit, compliance and control services as
may be required for the Company and the Subsidiaries to comply with applicable law (including the Securities Act and the Exchange
Act), regulation (including SEC regulations) and the rules and requirements of the NYSE or such other securities exchange on which
the Common Stock may be listed and as otherwise reasonably requested by the Board of Directors from time to time.

 

(k)       The
Manager shall establish an Investment Committee (the “Investment Committee”) that will oversee, advise and consult
with respect to the Company’s investment strategy, acquisition of Investments, sourcing, financing and leveraging strategies
and compliance with the Investment Guidelines. The Investment Committee will meet periodically, as many times as necessary but
no less than once every quarter, to discuss investment opportunities. The Investment Committee will periodically review the Company’s
investment portfolio and its compliance with the Investment Guidelines, and provide the Board of Directors an investment report
at the end of each quarter in conjunction with its review of the quarterly results of the Company.

 

(l)       Notwithstanding
anything contained in this Agreement to the contrary, except to the extent that the payment of additional money is proven by the
Company to have been required as a direct result of the Manager’s acts or omissions which result in the right of the Company
and the Subsidiaries to terminate the Agreement pursuant to Section 14 of this Agreement, the Manager shall not be required
to expend money (“Excess Funds”) in connection with any expenses that are required to be paid for or reimbursed
by the Company and the Subsidiaries pursuant to Section 10 in excess of that contained in any applicable Company Account
or otherwise made available by the Company and the Subsidiaries to be expended by the Manager hereunder. Failure of the Manager
to spend Excess Funds out-of-pocket shall not give rise or be a contributing factor to the right of the Company under Section
13(a) of this Agreement to terminate this Agreement due to the Manager’s unsatisfactory performance.

 

    	12 

     

    

 

(m)       In
performing its duties under this Section 2, the Manager shall be entitled to rely reasonably on qualified experts and professionals
(including, without limitation, accountants, legal counsel and other service providers) hired by the Manager at the Company’s
and the Subsidiaries’ sole cost and expense.

 

Section 3. Devotion of Time; Additional Activities.

 

(a)       The
Manager and its Affiliates will provide the Company and the Subsidiaries with a management team, including a chief executive officer
and chief financial officer or similar positions, along with appropriate support personnel, to provide the management services
to be provided by the Manager to the Company and the Subsidiaries hereunder, the members of which team shall devote such portion
of their time to the management of the Company and the Subsidiaries as is necessary and appropriate to enable the Company and the
Subsidiaries to operates its business, commensurate with the Company’s and the Subsidiaries’ level of activity. The
Manager shall provide reasonable access to their respective investment professionals in order to support the day-to-day operations
of the Company and the Subsidiaries. Notwithstanding anything to the contrary herein, for so long as the Manager is managing the
Company pursuant to this Agreement, neither it nor any of its Affiliates will sponsor or manage any other U.S. publicly traded
REIT.

 

(b)       Managers,
partners, officers, employees, personnel and agents of the Manager or Affiliates of the Manager may serve as directors, officers,
employees, partners, personnel, agents, nominees or signatories for the Company and the Subsidiaries to the extent permitted by
their Governing Instruments or by any resolutions duly adopted by the Board of Directors pursuant to the Company’s Governing
Instruments. When executing documents or otherwise acting in such capacities for the Company and the Subsidiaries, such persons
shall use their respective titles in the Company and the Subsidiaries.

 

(c)       Subject
to Section 2(d), the Manager is authorized, for and on behalf, and at the sole cost and expense of the Company to employ
securities dealers for the purchase and sale of Investments as the Manager deems necessary or appropriate, in its sole discretion.

 

(d)       The
Company (including the Board of Directors) agrees to take, or cause to be taken, all actions reasonably required to permit and
enable the Manager to carry out its duties and obligations under this Agreement, including, without limitation, all steps reasonably
necessary to allow the Manager to file any registration statement on behalf of the Company and the Subsidiaries in a timely manner
or to deliver any financial statements or other reports with respect to the Company and the Subsidiaries.

 

    	13 

     

    

 

Section 4. Agency. The Manager shall
act as agent of the Company and the Subsidiaries in making, acquiring, financing and disposing of Investments, disbursing and collecting
the funds of the Company and the Subsidiaries, paying the debts and fulfilling the obligations of the Company and the Subsidiaries,
supervising the performance of professionals engaged by or on behalf of the Company and the Subsidiaries and handling, prosecuting
and settling any claims of or against the Company and the Subsidiaries, the Board of Directors, holders of the Company’s
and the Subsidiaries’ securities or representatives or assets of the Company and the Subsidiaries.

 

Section 5. Bank Accounts. At the
direction of the Board of Directors, the Manager may establish and maintain as an agent on behalf of the Company of the Subsidiaries
one or more bank accounts in the name of the Company or the Subsidiaries, the Operating Company or any subsidiary (any such account,
a “Company Account”), and may collect and deposit funds into any such Company Account or Company Accounts, and
disburse funds from any such Company Account, under such terms and conditions as the Board of Directors may approve and the Manager
shall from time to time render appropriate accountings of such collections and payments to the Board of Directors and, upon request,
to the auditors of the Company or any Subsidiaries.

 

Section 6. Records; Confidentiality.

 

(a)       The
Manager shall maintain appropriate books of accounts and records relating to services performed under this Agreement, and such
books of account and records shall be accessible for inspection by representatives of the Company and the Subsidiaries at any time
during normal business hours.

 

(b)       The
Manager shall keep confidential any and all information obtained in connection with the services rendered under this Agreement
and shall not disclose any such information (or use the same except in furtherance of its duties under this Agreement) to unaffiliated
third parties, except: (i) with the prior written consent of the Board of Directors; (ii) to legal counsel, accountants and
other professional advisors; (iii) to appraisers, financing sources and others in the ordinary course of the Company’s
business; (iv) to governmental officials having jurisdiction over the Company or the Subsidiaries; (v) in connection
with any governmental or regulatory filings of the Company or the Subsidiaries, or disclosure or presentations to Company investors;
(vi) as required by law or legal process to which the Manager or any Person to whom disclosure is permitted hereunder is a party;
or (vii) to the extent such information is otherwise publicly available through the actions of a Person other than the Manager
not resulting from the Manager’s violation of this Section 6. The provisions of this Section 6(b) shall survive the
expiration or earlier termination of this Agreement for a period of one year.

 

Section 7. Obligations of Manager; Restrictions.

 

(a)       The
Manager shall require each seller or transferor of Investments to the Company and the Subsidiaries to make such representations
and warranties regarding such assets as may, in the judgment of the Manager, be necessary and appropriate. In addition, the Manager
shall take such other action as it deems necessary or appropriate with regard to the protection of the Investments.

 

    	14 

     

    

 

(b)       The
Manager shall refrain from any action that, in its sole judgment made in good faith:

 

(i)       is not
in compliance with the Investment Guidelines;

 

(ii)     
would adversely and materially affect the qualification of the Company as a REIT under the Code;

 

(iii)     would
adversely and materially affect the Company’s or any Subsidiary’s status as an entity intended to be exempted or excluded
from investment company status under the Investment Company Act; or

 

(iv)     would
violate any law, rule or regulation of any governmental body or agency having jurisdiction over the Company or any Subsidiary or
that would otherwise not be permitted by the Company’s Governing Instruments, code of conduct, or other compliance or governance
policies and procedures.

 

If the Manager is ordered to take any such
action by the Board of Directors, the Manager shall promptly notify the Board of Directors of the Manager’s judgment that
such action would adversely and materially affect such status or violate any such law, rule or regulation or the Company’s
Governing Instruments. Notwithstanding the foregoing, the Manager and its officers, directors, members, managers and employees
shall not be liable to the Company or any Subsidiary or to any director or stockholder of the Company or any Subsidiary for acts
or omissions performed in accordance with and pursuant to this Agreement, except as provided in Section 12 of this Agreement.

 

(c)       The
Board of Directors shall periodically review the Investment Guidelines and the Company’s portfolio of Investments, but will
not review each proposed investment, except as provided in the Investment Guidelines. If a majority of the Independent Directors
determine in their periodic review of transactions that a particular transaction does not comply with the Investment Guidelines,
then a majority of the Independent Directors will consider what corrective action, if any, can be taken. The Manager shall be
permitted to rely upon the direction of the Secretary of the Company to evidence the approval of the Board of Directors or the
Independent Directors with respect to a proposed investment.

 

(d)       The
Manager agrees to be bound by all policies and procedures, including the Company’s code of conduct and other compliance and
governance policies and procedures, applicable to the Manager and its officers, directors, members, managers and employees that
are adopted by the Board of Directors from time to time, including those required under the Exchange Act, the Securities Act, or
by the NYSE, and to take, or cause to be taken, all actions reasonably required to cause its officers, directors, members, managers
and employees, and any principals, officers or employees of its Affiliates who are involved in the business and affairs of the
Company and the Subsidiaries, to be bound by such policies and procedures to the extent applicable to such persons.

 

(e)       The
Manager shall at all times during the term of this Agreement maintain “errors and omissions” insurance coverage and
other insurance coverage that is customarily carried by asset and investment managers performing functions similar to those of
the Manager under this Agreement with respect to assets similar to the assets of the Company and the Subsidiaries, in an amount
which is comparable to that customarily maintained by other managers or servicers of similar assets.

 

    	15 

     

    

 

Section 8. Base Management Fee.

 

(a)       During
the Initial Term and any Renewal Term, the Company shall pay the Manager the Base Management Fee quarterly in arrears, in cash.
The Base Management Fee is payable independent of the performance of the Company or the Investments.

 

(b)       The
Manager shall calculate each installment of the Base Management Fee within 30 days after the end of the fiscal quarter with respect
to which such installment is payable. A copy of such calculation made by the Manager shall thereafter promptly be delivered to
the Board of Directors and, upon such delivery, payment of such installment of the Base Management Fee shown therein shall, subject
in any event to Section 13(a) of this Agreement, be due and payable in cash no later than the date which is five Business
Days after the date of delivery to the Board of Directors of the written statement of the Manager setting forth the computation
of the management fee for such quarter.

 

(c)       The
Base Management Fee is subject to adjustment pursuant to and in accordance with the provisions of Section 13(a) of this
Agreement.

 

Section 9. Incentive Fee.

 

The Incentive Fee shall be payable in arrears,
in cash, with respect to each fiscal quarter. The Manager shall calculate each quarterly installment of the Incentive Fee within
45 days after the end of the fiscal quarter with respect to which such installment is payable and promptly deliver such calculation
to the Board of Directors and, upon such delivery, payment of such installment of the Incentive Fee shown therein shall, subject
in any event to Section 13(a) of this Agreement, be due and payable no later than the date which is five Business Days after
the date of delivery to the Board of Directors of such calculation.

 

Section 10. Expenses of the Company.

 

(a)       The
Company and the Subsidiaries shall pay all of the expenses of the Company and the Subsidiaries and shall reimburse the Manager
for documented expenses of the Manager incurred on behalf of the Company and the Subsidiaries (collectively, the “Expenses”)
excepting only those expenses that are specifically the responsibility of the Manager pursuant to Section 2 of this Agreement.
Such costs and reimbursements shall not be in amounts greater than those which would be payable to outside professionals or consultants
engaged to perform such services pursuant to agreements negotiated on an arm’s length basis. For the avoidance of doubt,
in the event any Expense is paid directly by an unaffiliated third party or the Manager is reimbursed (whether or not out of funds
provided by the Company or the Operating Company in connection with any Investment) by an unaffiliated third party for any Expense
incurred by the Manager, the amount of Expenses to be reimbursed to the Manager by the Company and the Subsidiaries pursuant to
this Section 10(a) shall be reduced dollar-for-dollar by the amount of any such payment or reimbursement. Subject to but without
limiting the generality of the foregoing, except to the extent directly paid or reimbursed by an unaffiliated third party it is
specifically agreed that the following costs and expenses of the Company and the Subsidiaries shall be paid by the Company and
the Subsidiaries and shall not be paid by the Manager or Affiliates of the Manager:

 

    	16 

     

    

 

(i)       expenses
in connection with the issuance and transaction costs incident to the origination, acquisition, disposition and financing of Investments;

 

(ii)      the
costs of legal, financial, tax, accounting, servicing, due diligence consulting, auditing and other similar services rendered
for the Company and the Subsidiaries by providers retained by the Manager;

 

(iii)     the compensation
and expenses of the Company’s directors;

 

(iv)     the compensation
expense for employees of the Manager, other than the Manager’s chief executive officer and chief financial officer and such
other employees of the Manager with respect to which the Manager shall agree to assume such cost without reimbursement;

 

(v)      the
cost of liability insurance to indemnify the Company’s directors and officers and the Company’s allocable portion
of the fidelity bond, directors and officers/errors and omissions liability insurance, and any other insurance premium;

 

(vi)     costs
associated with the establishment and maintenance of any of the Company’s and the Subsidiaries’ secured funding facilities,
other financing arrangements, or other indebtedness of the Company and the Subsidiaries (including commitment fees, accounting
fees, legal fees, closing and other similar costs) or any of the Company’s or the Subsidiaries’ securities offerings;

 

(vii)    expenses
connected with communications to holders of the Company’s and the Subsidiaries’ securities and other bookkeeping and
clerical work necessary in maintaining relations with holders of such securities and in complying with the continuous reporting
and other requirements of governmental bodies or agencies, including all costs of preparing and filing required reports with the
SEC, the costs payable by the Company and the Subsidiaries to any transfer agent and registrar in connection with the listing
and/or trading of the Company’s or the Subsidiaries’ securities on any exchange, the fees payable by the Company and
the Subsidiaries to any such exchange in connection with its listing, costs of preparing, printing and mailing the Company’s
annual report to the Company stockholders and proxy materials with respect to any meeting of the Company’s stockholders;

 

(viii)   costs
associated with any computer software or hardware, electronic equipment or purchased information technology services from third-party
vendors that is used for the Company;

 

    	17 

     

    

 

(ix)     expenses
incurred by managers, officers, personnel and agents of the Manager for travel on the Company’s or any Subsidiary’s
behalf and other out-of-pocket expenses incurred by managers, officers, personnel and agents of the Manager in connection with
the purchase, financing, refinancing, sale or other disposition of an investment or establishment and maintenance of any of the
Company’s or the Subsidiaries’ securitizations or any of the Company’s or the Subsidiaries’ securities
offerings;

 

(x)       costs
and expenses incurred with respect to market information systems and publications, research publications and materials, and settlement,
clearing and custodial fees and expenses;

 

(xi)      compensation
and expenses of the Company’s or any Subsidiaries’ custodian and transfer agent, if any;

 

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

 

(xiii)    all
federal, state and local taxes and license fees;

 

(xiv)    all
insurance costs incurred in connection with the operation of the Company’s and the Subsidiaries’ business, except for
the costs attributable to the insurance that the Manager elects to carry for itself or its personnel;

 

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

 

(xvi)   all
other costs and expenses relating to the Company’s and the Subsidiaries’ business and investment operations, including
the costs and expenses of originating, acquiring, owning, protecting, maintaining, developing and disposing of investments, including
appraisal, reporting, audit and legal fees;

 

(xvii)  expenses
(including rent, telephone, printing, mailing, utilities, office furniture, equipment, machinery and other office, internal and
overhead expenses) relating to any office(s) or office properties, including disaster backup recovery sites and properties, incurred
by the Manager;

 

(xviii)  expenses
connected with the payments of interest, dividends or distributions in cash or any other form authorized or caused to be made by
the Board of Directors to or on account of holders of the Company’s securities, including in connection with any dividend
reinvestment plan;

 

(xix)    any judgment
or settlement of pending or threatened proceedings (whether civil, criminal or otherwise) against the Company or any Subsidiary,
or against any trustee, director, partner, member or officer of the Company or any Subsidiary, or in his or her capacity as such
for which the Company or any Subsidiary is required to indemnify such trustee, director, partner, member or officer by any court
or governmental agency; and

 

    	18 

     

    

 

(xx)     all other
expenses actually incurred by the Manager (except as described below) which are reasonably necessary for the performance by the
Manager of its duties and functions under this Agreement.

 

(b)       The
Manager may, at its option, elect not to seek reimbursement for certain expenses during a given quarterly period, which determination
shall not be deemed to construe a waiver of reimbursement for similar expenses in future periods. The Company will reimburse the
Manager for all organizational, formation and offering costs it incurred on behalf of the Company in connection with the Initial
Public Offering.

 

Section 11. Calculations of Expenses.
The Manager shall prepare a statement documenting the Expenses during each fiscal quarter, and shall deliver such statement to
the Company within 30 days after the end of each fiscal quarter. Expenses shall be reimbursed by the Company and the Subsidiaries
to the Manager no later than the 15th Business Day immediately following the date of delivery of such statement; provided,
however, that such reimbursements may be offset by the Manager against amounts due to the Company or the Subsidiaries. The provisions
of this Section 11 shall survive the expiration or earlier termination of this Agreement.

 

Section 12. Limits of the Manager’s
Responsibility; Indemnification.

 

(a)       The
Manager assumes no responsibility under this Agreement other than to render the services called for under this Agreement in good
faith and shall not be responsible for any action of the Board of Directors in following or declining to follow any advice or recommendations
of the Manager, including as set forth in Section 7(b) of this Agreement. The Manager and its officers, employees, members
and managers (each a “Covered Person”) will not be liable to the Company or any Subsidiary, the Board of Directors,
or the Company’s or any Subsidiary’s stockholders or partners for any acts or omissions by any such Covered Person
performed in accordance with and pursuant to this Agreement, except by reason of acts or omissions constituting bad faith, willful
misconduct, gross negligence or reckless disregard of the Manager’s duties under this Agreement. The Manager will maintain
reasonable and customary insurance coverages. 

 

(b)       The
Company to the full extent permitted by law shall indemnify and hold harmless each Covered Person from and against with respect
to all expenses, losses, damages, liabilities, demands, charges and claims in respect of or arising from any acts or omissions
of the Manager and the officers, employees, members and managers of the Manager, performed in good faith under this Agreement and
not constituting bad faith, willful misconduct, gross negligence, or reckless disregard of their respective duties under this Agreement.

 

(c)       The
Manager to the full extent permitted by law shall indemnify and hold harmless the Company and the Subsidiaries and each of the
directors, officers and stockholders of the Company and the Subsidiaries with respect to all expenses, losses, damages, liabilities,
demands, charges and claims in respect of or arising from any acts or omissions of the Manager constituting bad faith, willful
misconduct, gross negligence or reckless disregard of its duties under this Agreement or any claims by the Manager’s employees
relating to the terms and conditions of their employment by the Manager.

 

    	19 

     

    

 

(d)       The
provisions of this Section 12 shall survive the expiration or earlier termination of this Agreement.

 

Section 13. Term; Termination.

 

(a)       Unless
this Agreement is terminated earlier for cause in accordance with Section 14 below, this Agreement shall be in effect until
March 31, 2020 (the “Initial Term”) and shall be automatically renewed for a one-year term each anniversary
date thereafter (a “Renewal Term”) for a maximum of three one-year terms, unless previously terminated as provided
below. Following the Initial Term, this Agreement may be terminated annually upon the affirmative vote of at least two-thirds of
the Independent Directors based on a determination that (i) there has been unsatisfactory performance by the Manager that is materially
detrimental to the Company and the Subsidiaries taken as a whole or (ii) the compensation payable to the Manager is unfair to the
Company and the Subsidiaries; provided that the Company shall not have the right to terminate this Agreement under clause
(ii) above if the Manager agrees to continue to provide the services under this Agreement at a reduced fee that at least two-thirds
of the Independent Directors determines to be fair pursuant to the procedure set forth below. If the Company elects not to renew
this Agreement at the expiration of the Initial Term or any Renewal Term as set forth above, the Company shall deliver to the Manager
prior written notice (the “Termination Notice”) of the Company’s intention not to renew this Agreement
based upon the terms set forth in this Section 13(a) not less than 180 days prior to the expiration of the then existing term.
If the Company so elects not to renew this Agreement, the Company shall designate the date (the “Effective Termination
Date”), not less than 180 days from the date of the notice, on which the Manager shall cease to provide services under
this Agreement, and this Agreement shall terminate on such date; provided, however, that in the event that such Termination Notice
is given in connection with a determination that the compensation payable to the Manager is unfair, the Manager shall have the
right to renegotiate such compensation by delivering to the Company, no fewer than 45 days prior to the prospective Effective Termination
Date, written notice (any such notice, a “Notice of Proposal to Negotiate”) of its intention to renegotiate
its compensation under this Agreement. Thereupon, the Company (represented by the Independent Directors) and the Manager shall
endeavor to negotiate in good faith the revised compensation payable to the Manager under this Agreement. Provided that the Manager
and at least two-thirds of the Independent Directors agree to the terms of the revised compensation to be payable to the Manager
within 45 days following the receipt of the Notice of Proposal to Negotiate, the Termination Notice shall be deemed of no force
and effect and this Agreement shall continue in full force and effect on the terms stated in this Agreement, except that the compensation
payable to the Manager hereunder shall be the revised compensation then agreed upon by the parties to this Agreement. The Company
and the Manager agree to execute and deliver an amendment to this Agreement setting forth such revised compensation promptly upon
reaching an agreement regarding same. In the event that the Company and the Manager are unable to agree to the terms of the revised
compensation to be payable to the Manager during such 45-day period, this Agreement shall terminate, such termination to be effective
on the date which is the later of (A) 10 days following the end of such 45-day period and (B) the Effective Termination Date originally
set forth in the Termination Notice. Notwithstanding anything in this paragraph (a) or this Agreement to the contrary, termination
of this Agreement shall only occur for the reasons set forth in the second sentence of this paragraph (a) and in Section 14.
The parties agree that currently, and since the initial effective date of this Agreement, it is and has been the intention of the
parties that if the Agreement is not terminated in the manner set forth in paragraph (a) above or Section 14, then the Company
and the Manager (or the equity owners of the Manager) shall effect an Internalization Transaction pursuant to Section 17, whether
at the end of the Initial Term or any Renewal Term.

 

    	20 

     

    

 

(b)       In
recognition of the upfront effort required by the Manager to structure and acquire the assets of the Company and the Subsidiaries
and the commitment of resources by the Manager, in the event that this Agreement is terminated in accordance with the provisions
of Section 13(a) or Section 14(b) of this Agreement, the Company shall pay to the Manager, on the date on which such
termination is effective, a termination fee (the “Termination Fee”) equal to the greater of (i) three times
the sum of the average annual Base Management Fee and Incentive Fee earned by the Manager during the 24-month period prior to such
termination, calculated as of the end of the most recently completed fiscal quarter prior to the date of termination, or (ii) the
Internalization Price (as defined in Section 17(e) below, without regard to clause (B) in the definition of Internalization
Price set forth in Section 17(e)). Any Termination Fee will be payable by the Operating Company in cash. The obligation
of the Company to pay the Termination Fee shall survive the termination of this Agreement.

 

(c)       No
later than 180 days prior to the expiration of the Initial Term or Renewal Term, the Manager may deliver written notice to the
Company informing it of the Manager’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 shall not be required to pay the Termination Fee to the Manager if the Manager terminates
this Agreement pursuant to this Section 13(c).

 

Section 14. Termination for Cause.

 

(a)       The
Company may terminate this Agreement at any time, including during the Initial Term, upon at least 30 days’ prior written
notice of termination from the Board of Directors to the Manager, without payment of any Termination Fee, if:

 

(i)       the
Manager breaches this Agreement in any material respect and such breach shall continue for a period of 30 days after written notice
thereof specifying such breach and requesting that the same be remedied in such 30-day period;

 

(ii)       there
is a commencement of any proceeding relating to the Bankruptcy or insolvency of the Manager, including an order for relief in an
involuntary Bankruptcy case or the authorization or filing by the Manager of a voluntary Bankruptcy petition;

 

    	21 

     

    

 

(iii)      there
is a Manager Change of Control and a majority of the Independent Directors reasonably determines that such Manager Change of Control
is materially detrimental to the Company;

 

(iv)     the
Manager engages in any act of bad faith, willful misconduct, fraud, misappropriation of funds, or embezzlement against the Company
or any Subsidiary;

 

(v)      there
is an act or omission that constitutes gross negligence on the part of the Manager in the performance of its duties under this
Agreement;

 

(vi)     there
is a dissolution of the Manager;

 

(vii)    the
Manager fails to provide adequate or appropriate personnel that are reasonably necessary for the Manager to identify investment
opportunities for the Company and the Subsidiaries and to manage and develop the Company’s and the Subsidiaries’ investment
portfolios, if such default continues uncured for a period of 60 days after written notice thereof, which notice must contain a
request that the same be remedied;

 

(viii)   the
Manager is convicted (including a plea of nolo contendere) of a felony; or

 

(ix)      Both
Dean Jernigan and John Good are no longer senior executive officers of the Manager or the Company during the term of the Agreement
or, in the event of an assignment of this Agreement to an Affiliate of the Manager pursuant to Section 16 of this Agreement, of
the Affiliate, other than by reason of death or disability.

 

(b)       The
Manager may terminate this Agreement effective upon 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 30 days after written notice thereof specifying such default and requesting that
the same be remedied in such 30-day period (or 60 days after written notice of such breach if the Company takes steps to cure such
breach within 30 days of the written notice). The Company is required to pay to the Manager the Termination Fee if the termination
of this Agreement is made pursuant to this Section 14(b).

 

(c)       The
Manager may terminate this Agreement in the event the Company becomes regulated as an “investment company” under the
Investment Company Act, with such termination deemed to have occurred immediately prior to such event. If the Manager terminates
this Agreement pursuant to this Section 14(c), the Company shall not be required to pay the Termination Fee.

 

Section 15. Survival; Action Upon Termination.
From and after the effective date of termination of this Agreement, pursuant to Sections 13 or 14 of this Agreement,
the Manager shall not be entitled to compensation for further services under this Agreement, but shall be paid all compensation
accruing to the date of termination and, if terminated pursuant to Section 13(a) or 14(b), the applicable Termination
Fee. Upon such termination, the Manager shall forthwith:

 

    	22 

     

    

 

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

 

(ii)       deliver
to the Board of Directors 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 of Directors with respect
to the Company; and

 

(iii)       deliver
to the Board of Directors all property and documents of the Company or any subsidiary then in the custody of the Manager.

 

Sections 6, 10, 11,
12, 13, 14, 15 and 25 shall survive the termination of this Agreement.

 

Section 16. Assignment. Subject to
Section 14(a), the Manager may assign the agreement in its entirety or delegate certain of its duties under the Agreement to any
of its Affiliates without the approval of the Independent Directors; provided that any such assignment or delegation does not require
the approval of the Independent Directors under the Investment Company Act. Any other assignment by the Manager must be consented
to in writing by the Company with the approval of a majority of the Independent Directors. Any permitted assignment shall bind
the assignee under this Agreement in the same manner as the Manager is bound, and the Manager shall be liable to the Company for
all errors 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 Manager. This Agreement shall not be assigned by the Company without the
prior written consent of the Manager, except in the case of assignment by the Company to another REIT or other organization which
is a successor (by merger, consolidation, purchase of assets, or other transaction) to the Company, 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 is bound
under this Agreement.

 

Section 17. Internalization of the Manager.

 

(a)       No
later than 180 days prior to the end of the Initial Term, the Manager shall provide the Company with an offer for an Internalization
Transaction with the Operating Company on such terms and conditions included in a written offer provided by the Manager. The offer
price will be based on the following financial framework: the lesser of the two amounts determined pursuant to the Internalization
Formulas. Upon receipt of the Manager’s initial Internalization Transaction offer, a special committee consisting solely
of the Company’s independent directors may accept the Manager’s proposal or submit a counter offer to the Manager.
If the Company and the Manager agree upon an Internalization Price pursuant to this Section 17(a), the Company shall seek satisfaction
of the conditions set forth in Section 17(c).

 

    	23 

     

    

 

(b)       If
an Internalization Transaction is not consummated pursuant to Section 17(a), the Manager will annually submit to the Company a
new offer for an Internalization Transaction with the Operating Company, with an Internalization Price based on the financial framework
set forth in Section 17(a), not later than 180 days prior to the end of any Renewal Term until termination of this Agreement. The
special committee of the Company’s board of directors and the Manager will follow the same process set forth in Section 17(a)
with respect to each Internalization Transaction offer by the Manager. If the Company and the Manager agree upon an Internalization
Price pursuant to this Section 17(b), the Company shall seek satisfaction of the conditions set forth in Section 17(c). Notwithstanding
the foregoing or any other provision in this Agreement to the contrary, if an Internalization Transaction has not been consummated
in the manner set forth in this Section 17 prior to the end of the last Renewal Term of this Agreement, then on the last day of
the last Renewal Term, the Manager and the Company shall consummate an Internalization Transaction effective as of the last day
of the last Renewal Term. In the event an Internalization Transaction is consummated, at the time of consummation of such Internalization
Transaction, all assets of the Manager shall be conveyed to and acquired by the Company in exchange for the Internalization Price,
computed in accordance with paragraph (e) below and payable pursuant to paragraph (d) below, all employees of the Manager shall
become employees of the Company, the Company shall succeed to all customer and other relationships then possessed by the Manager
and the Manager shall discontinue all business activities. The parties expressly agree that an Internalization Transaction that
is effected at the end of the last Renewal Term of this Agreement shall not be subject to the conditions of paragraph (c) below
and shall be in lieu of any termination of this Agreement and the payment of any Termination Fee, it being the express intention
of the parties that no Termination Fee shall be payable in the event of expiration of this Agreement at the end of its final Renewal
Term and, instead, the Company shall acquire the business of the Manager at that time for the Internalization Price determined
in accordance with Section 17(e) of this Agreement. The parties mutually agree to execute such additional agreements, documents
and instruments as may be reasonably required to effect the Internalization Transaction and convey the Manager’s assets (or
the equity interests in the Manager) to the Company.

 

(c)       Consummation
of any Internalization Transaction agreed to between the Company and the Manager is conditioned upon the satisfaction of the following
conditions:

 

(i)       The
Company’s receipt of a fairness opinion from a nationally-recognized investment banking firm to the effect that the consideration
to be paid by the Company (or the Operating Company) for the assets and equity of the Manager is fair, from a financial point of
view, to holders of the Common Stock who are not affiliated with the Manager or its Affiliates;

 

(ii)       The
approval of the acquisition by a special committee of the Company’s Board of Directors comprised solely of Independent Directors;
and

 

(iii)       The
approval of Company stockholders holding a majority of the votes cast on such Internalization proposal at a meeting of stockholders
duly called and at which a quorum is present.

 

(d)       The
Internalization Price paid to the Manager in any Internalization Transaction will be payable by the Operating Company in the number
of OC Units equal to the agreed upon Internalization Price, divided by the volume-weighted average of the closing market price
of the Common Stock for the ten consecutive trading days immediately preceding the date with respect to which value must be determined;
provided, however, that if the Company’s Common Stock is not traded on a national securities exchange at the time of closing
of any such Internalization Transaction, then the number of OC Units shall be determined by agreement between the Board of Directors
and the Manager or, in the absence of such agreement, the Internalization Price shall be paid in cash.

 

    	24 

     

    

 

(e)       Upon
any Internalization pursuant to this Section 17, the Manager shall not be entitled to the receipt of any Termination Fee. The “Internalization
Price” for purposes of Section 13(b), shall be determined as follows: (A) if an Internalization Transaction occurs prior
to the end of the last Renewal Term, the Internalization Price shall be the lesser of the prices determined pursuant to the
Internalization Formulas, subject to the Board of Directors’ discretion; and (B) if an Internalization Transaction occurs
automatically at the end of the last Renewal Term pursuant to Section 17(b), the Internalization Price shall be equal to the Termination
Fee computed pursuant to Section 13(b), with no Board of Directors’ discretion to change such Internalization Price and no
conditions being applicable to the payment thereof.

 

Section 18. Release of Money or Other
Property Upon Written Request. The Manager agrees that any money or other property of the Company or any Subsidiary held by
the Manager under this Agreement shall be held by the Manager as custodian for the Company or such Subsidiary, and the Manager’s
records shall be appropriately marked clearly to reflect the ownership of such money or other property by the Company or such Subsidiary.
Upon the receipt by the Manager of a written request signed by a duly authorized officer of the Company or any Subsidiary requesting
the Manager to release to the Company or such Subsidiary any money or other property then held by the Manager for the account of
the Company or such Subsidiary under this Agreement, the Manager shall release such money or other property to the Company or such
Subsidiary within a reasonable period of time, but in no event later than 30 days following such request. The Manager shall not
be liable to the Company, any Subsidiary, the Independent Directors, or the Company’s or Subsidiary’s stockholders
or partners for any acts performed or omissions to act by the Company or any Subsidiary in connection with the money or other property
released to the Company or Subsidiary in accordance with the second sentence of this Section 18. The Company and any such
Subsidiary shall indemnify the Manager and its officers, directors, personnel, managers, and officers against any and all expenses,
losses, damages, liabilities, demands, charges and claims of any nature whatsoever, which arise in connection with the Manager’s
release of such money or other property to the Company or Subsidiary in accordance with the terms of this Section 18. Indemnification
pursuant to this provision shall be in addition to any right of the Manager to indemnification under Section 12 of this
Agreement.

 

Section 19. Representations and Warranties.

 

(a)       The
Company hereby makes the following representations and warranties to the Manager, all of which shall survive the execution and
delivery of this Agreement:

 

(i)       Each
of the Company and the Operating Company is a corporation or limited liability company duly organized, validly existing and in
good standing under the laws of the State of Maryland or the State of Delaware, as applicable, and each is qualified to do business
and in good standing in Maryland or Delaware, as applicable. Each of the Company and the Operating Company has all power and authority
required to execute and deliver this Agreement and to perform all its duties and obligations hereunder.

 

    	25 

     

    

 

(ii)       The
execution, delivery, and performance of this Agreement by each of the Company and the Operating Company have been duly authorized
by all necessary action on the part of the Company and the Operating Company, respectively.

 

(iii)       This
Agreement constitutes a legal, valid, and binding agreement of each of the Company and the Operating Company, enforceable against
each of the Company and the Operating Company in accordance with its terms, except as limited by Bankruptcy, insolvency, receivership
and similar laws from time to time in effect and general principles of equity, including, without limitation, those relating to
the availability of specific performance.

 

(b)       The
Manager hereby makes the following representations and warranties to the Company and the Operating Company, all of which shall
survive the execution and delivery of this Agreement:

 

(i)       The
Manager is a limited liability company duly formed, validly existing, and in good standing under the laws of the State of Florida
and is qualified to do business and in good standing in Florida. The Manager has all power and authority required to execute and
deliver this Agreement and to perform all its duties and obligations hereunder, subject only to its qualifying to do business and
obtaining all requisite permits and licenses required as a result of or relating to the nature or location of any of the assets
or properties of the Company (which it shall do promptly after being required to do so).

 

(ii)       The
execution, delivery, and performance of this Agreement by the Manager have been duly authorized by all necessary action on the
part of the Manager.

 

(iii)       This
Agreement constitutes a legal, valid, and binding agreement of the Manager enforceable against the Manager in accordance with its
terms, except as limited by Bankruptcy, insolvency, receivership and similar laws from time to time in effect and general principles
of equity, including, without limitation, those relating to the availability of specific performance.

 

Section 20. Notice.

 

(a)       All
notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing, to the following
addresses:

 

If to the Company or the Operating Company:

 

Jernigan Capital, Inc.

6410 Poplar Avenue, Suite 650

Memphis, Tennessee 38119

Attention: William H. Mathieu

 

    	26 

     

    

 

If to the Manager:

 

JCap Advisors, LLC

6410 Poplar Avenue, Suite 650

Memphis, Tennessee 38119

Attention: John A. Good

 

(b)       All
notices, demands and requests to be sent to a party hereto pursuant to this Agreement shall be deemed to have been properly given
or served if: (i) personally delivered, (ii) deposited for next day delivery by Federal Express, or other similar overnight courier
services, addressed to such party, (iii) deposited in the United States mail, addressed to such party, prepaid and registered or
certified with return receipt requested or (iv) transmitted via facsimile or other similar device to the attention of such party
with appropriate evidence of receipt by or transmission to the recipient party.

 

(c)       All
notices, demands and requests so given shall be deemed received: (i) when personally delivered, (ii) twenty-four hours after being
deposited for next day delivery with an overnight courier, (iii) forty-eight hours after being deposited in the United States mail,
or (iv) three hours after being transmitted via facsimile or otherwise transmitted and receipt has been confirmed.

 

Section 21. Binding Nature of Agreement;
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective
heirs, personal representatives, successors and permitted assigns as provided in this Agreement.

 

Section 22. Entire Agreement. This
Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter of this Agreement,
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 of this Agreement. The express terms of this Agreement control
and supersede any course of performance and/or usage of the trade inconsistent with any of the terms of this Agreement.

 

Section 23. Amendments. This Agreement
may be amended or modified only by an agreement in writing signed by all parties hereto.

 

Section 24. No Implied Waivers; Remedies.
No failure or delay on the part of any party in exercising any right, privilege, power, or remedy under this Agreement, and no
course of dealing shall operate as a waiver of any such right, privilege, power or remedy; nor shall any single or partial
exercise of any right, privilege, power or remedy under this Agreement preclude any other or further exercise of any such right,
privilege, power or remedy or the exercise of any other right, privilege, power or remedy. No waiver shall be asserted against
any party unless signed in writing by such party. The rights, privileges, powers and remedies available to the parties are cumulative
and not exclusive of any other rights, privileges, powers or remedies provided by statute, at law, in equity or otherwise. Except
as provided in this Agreement, no notice to or demand on any party in any case shall entitle such party to any other or further
notice or demand in any similar or other circumstances or constitute a waiver of the right of the party giving such notice or making
such demand to take any other or further action in any circumstances without notice or demand.

 

    	27 

     

    

 

Section 25. Governing Law. THIS
AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. EACH OF THE PARTIES HEREBY IRREVOCABLY
AGREES THAT THE COURTS OF THE STATE OF NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION IN CONNECTION WITH ANY ACTIONS OR PROCEEDINGS
ARISING BETWEEN THE PARTIES UNDER THIS AGREEMENT. EACH OF THE PARTIES HEREBY IRREVOCABLY CONSENTS AND SUBMITS TO THE JURISDICTION
OF SAID COURTS FOR ANY SUCH ACTION OR PROCEEDING. EACH OF THE PARTIES HEREBY WAIVES THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF ANY SUCH ACTION OR PROCEEDING IN SAID COURTS.

 

Section 26. Headings. The headings
contained in this Agreement are for convenience only and shall not affect the construction or interpretation of any provisions
of this Agreement.

 

Section 27. Severability. If any
provision of the Agreement shall be held to be invalid, the remainder of the Agreement shall not be affected thereby.

 

Section 28. Counterparts. This Agreement
may be executed 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. This Agreement shall become binding when
one or more counterparts of this Agreement, individually or taken together, shall bear the signatures of all of the parties reflected
hereon as the signatories.

 

 

 

[Signature Page Follows]

 

 

    	28 

     

    

 

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

 

	
        JERNIGAN CAPITAL, INC.,

        a Maryland corporation

	 
	 
	    By:	
        

        /s/ John A. Good

	 	Name:  John A. Good
	 	Title: President and Chief Operating Officer
	 
	 
	
        JERNIGAN CAPITAL OPERATING
        COMPANY, Llc,

        a Delaware limited liability company

	 
	    By:  Jernigan Capital, Inc., its managing member
	 
	 
	 	
        

        By:
	
        

        /s/ John A. Good

	 	 	Name: John A. Good
	 	 	Title:  President and Chief Operating Officer
	 
	 
	
        JCAP ADVISORS, LLC

        a Florida limited liability company

	 
	 
	    By:	
        

        /s/ Dean Jernigan

	 	Name: Dean Jernigan
	 	Title:  Chief Executive Officer

 

    	29 

     

    

 

Exhibit A

 

		·	No investment will be made that would cause the Company to fail to qualify as a REIT for U.S. federal income tax purposes.

 

		·	No investment will be made that would cause the Company to register as an investment company under the Investment Company Act.

 

		·	No more than 20% of the Company’s equity, determined as of the date of investment, will be invested in any single project
and no more than 20% of the Company’s equity, determined as of the date of such investment, will be invested in projects
controlled by a single borrower or group of affiliated borrowers that would form a consolidated group under GAAP; provided however,
that this provision shall not apply to the initial portfolio set forth in the final prospectus for the Initial Public Offering).

 

		·	Over time the Company’s average leverage should be between 25% and 35% of the fair value of its assets, but the Company
may borrow up to 100% of the principal value of certain First Mortgage Loans (as defined in the final prospectus for the Initial
Public Offering). During periods where the Company’s portfolio consists largely of Whole Loans (as defined in the final prospectus
for the Initial Public Offering), the Company may borrow up to 65% of the principal of such loans pending tranching of such loans
and sale of First Mortgage Loans resulting from such tranching.

 

		·	The Company will maintain a portfolio of geographically diverse assets.

 

		·	The Manager must seek approval of a majority of the Company’s Independent Directors before engaging in any transaction
that falls outside of these guidelines.

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