Document:

Exhibit
10.6

 

TAX
PROTECTION AGREEMENT

 

THIS
TAX PROTECTION AGREEMENT (this “Agreement”) is made and entered into effective as of June 8, 2021 (the “Effective
Date”) by and among Strawberry Fields Realty LP, a Delaware limited partnership (the “Partnership”), Strawberry
Fields REIT, Inc., a Maryland corporation (the “REIT”), and the sole general partner of the Partnership, and Strawberry
Fields REIT, LLC, an Indiana limited liability company (the “Contributor”) (together with the Partnership and the
REIT, the “Parties”).

 

BACKGROUND

 

A.
The Contributor, under that certain Contribution Agreement, dated on the Effective Date, by and among the Contributor and the
Partnership (the “Contribution Agreement”), is contributing limited liability company interests or shares in each
Entity (as defined below) and certain other assets and liabilities (the “Contribution”), to the Partnership in
exchange for common units of limited partnership interest in the Partnership (“OP Units”).

 

B. It
is intended for federal income tax purposes that the Contribution for OP Units will be treated as a tax-deferred contribution of the
interests in the Entities, or the Properties (as defined below), in the case of any Entities that are disregarded as separate from a
Contributor for federal income tax purposes, to the Partnership for OP Units under Code Section 721.

 

C. The
entities listed on Schedule 1 are treated as disregarded entities wholly owned by the Contributor.

 

D. In
consideration for the agreement of the Contributor to make the Contribution, the Parties desire to enter into this Agreement regarding
certain tax matters as set forth in this Agreement.

 

E. The
REIT and the Partnership desire to evidence their agreement regarding amounts that may be payable in the event of certain actions being
taken by the Partnership regarding the disposition of certain of the Properties held within the Entities, and regarding certain minimum
debt obligations of the Partnership and its subsidiaries.

 

NOW,
THEREFORE, in consideration of the promises and the mutual representations, warranties, covenants and agreements contained herein and
in the Contribution Agreement, the Parties hereby agree as follows:

 

ARTICLE
1

DEFINITIONS

 

To
the extent not otherwise defined herein, capitalized terms that may be used in this Agreement have the meanings ascribed to them in the
Partnership Agreement (as defined below). As may be used in this Agreement, the terms below have the following meanings:

 

“Accounting
Firm” has the meaning set forth in the Section 4.2.

 

    	 

    	 

    

 

“Agreement”
has the meaning set forth in the Preamble.

 

“Book
Gain” means any gain that would not be required under Section 704(c) of the Code and the applicable regulations to be specially
allocated to the Protected Partners for federal income tax purposes (for example, any gain attributable to appreciation in the actual
value of the Gain Limitation Property following the Closing Date or any gain resulting from reductions in the “book value”
of the Gain Limitation Property following the Closing Date).

 

“Cash
Consideration” has the meaning set forth in Section 2.1(a).

 

“Closing
Date” means the date on which the Contribution will be effective.

 

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

 

“Contribution”
has the meaning set forth in the Background.

 

“Contribution
Agreement” has the meaning set forth in the Background.

 

“Deficit
Restoration Obligation” means a written obligation by a Protected Partner to restore part or all of its deficit capital account
in the Partnership upon the occurrence of certain events (which written obligation may provide for an indemnity in favor of the REIT
as general partner of the Partnership).

 

“Entity”
means each limited liability company, partnership or corporation (if any) in which the Contributor is contributing its limited liability
company interests, partnership interest or capital stock (if a corporation) as described in the Preamble and as set forth next to each
Gain Limitation Property on Schedule 1 hereto.

 

“Final
Determination” means (i) a decision, judgment, decree or other order by any court of competent jurisdiction, which decision,
judgment, decree or other order has become final after all allowable appeals by either party to the action have been exhausted or after
the time for filing such appeals has expired, (ii) a binding settlement agreement entered into in connection with an administrative or
judicial proceeding (iii) the expiration of the time for instituting a claim for refund, or if such a claim was filed, the expiration
of the time for instituting suit with respect thereto or (iv) the expiration of the time for instituting suit with respect to a claimed
deficiency.

 

“Gain
Limitation Property” means (i) each property or asset identified on Schedule 1 hereto as a Gain Limitation Property;
(ii) any direct or indirect interest owned by the Partnership in any entity that owns an interest in a Gain Limitation Property, if the
disposition of that interest would result in the recognition of Protected Gain by a Protected Partner; and (iii) any other property that
the Partnership directly or indirectly receives that is in whole or in part a “substituted basis property” as defined in
Section 7701(a)(42) of the Code with respect to a Gain Limitation Property.

 

“Guaranteed
Amount” means, if any, the aggregate amount of each Guaranteed Debt that is guaranteed at any time by Partner Guarantors.

 

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“Guaranteed
Debt” means any loans incurred (or assumed) by the Partnership or any of its subsidiaries that are guaranteed by Partner Guarantors
at any time after the Closing Date pursuant to Article 3 hereof.

 

“Indirect
Owner” means, in the case of a Protected Partner that is an entity that is classified as a partnership, disregarded entity
or subchapter S corporation or real estate investment trust for federal income tax purposes, any person owning an equity interest in
such Protected Partner as of the Effective Date, and in the case of any Indirect Owner that itself is an entity that is classified as
a partnership, disregarded entity, subchapter S corporation or real estate investment trust for federal income tax purposes, any person
owning an equity interest in such entity as of the Effective Date; provided that, any person or entity that is issued OP Units and either
(a) sells all those OP Units for cash or (b) converts all those OP Units for an ownership interest in the REIT, shall not be treated
or considered an Indirect Owner.

 

“Maintained
Debt” means the indebtedness under the loan agreements and related documents assumed or deemed to be assumed by the Partnership
as a result of the Contribution on the Closing Date.

 

“Maintained
Debt Guarantees” means the guarantees of the Maintained Debt existing on the Closing Date.

 

“Minimum
Liability Amount” means, for each Protected Partner, the amount of liabilities necessary to be allocated to the Protected Partner
under the Code to prevent the Protected Partner from recognizing taxable gain under Section 752 of the Code as a result of the Contribution.

 

“Nonrecourse
Liability” has the meaning set forth in Treasury Regulations Section 1.752-1(a)(2).

 

“Notice
Period” means the period commencing on December 31 2030, and ending December 31, 2032, provided, however, that the Notice Period
shall terminate at such time as such Protected Partner has disposed of 100% of the OP Units received upon the Contribution in one or
more taxable transactions.

 

“OP
Units” has the meaning set forth in the Background.

 

“Parties”
has the meaning set forth in the Preamble.

 

“Partner
Guarantors” means those Protected Partners who have guaranteed any portion of the Guaranteed Debt.

 

“Partnership”
has the meaning set forth in the Preamble.

 

“Partnership
Agreement” means the Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of June 1, 2021, as
amended, and as the same may be further amended in accordance with the terms thereof.

 

“Partnership
Interest Consideration” has the meaning set forth in Section 2.1(a).

 

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“Property”
or “Properties” means the real property assets or other assets of an Entity.

 

“Protected
Gain” shall mean the gain that would be allocable to and recognized by a Protected Partner for federal income tax purposes
under Section 704(c) of the Code in the event of the sale of a Gain Limitation Property in a fully taxable transaction. The initial amount
of Protected Gain with respect to each Protected Partner shall be determined as if the Partnership sold each Gain Limitation Property
in a fully taxable transaction on the Closing Date for consideration equal to the Section 704(c) Value of such Gain Limitation Property
on the Closing Date. An estimate of the Partnership’s aggregate Protected Gain as of the Effective Date is set forth on Schedule
1. After the Closing Date, Protected Gain shall be reduced from time to time to reflect reductions in the “book-tax disparity”
with respect to each Property in accordance with Treasury Regulations § 1.704-3 as provided in Article 6 below. For avoidance of
doubt, reverse Section 704(c) gain resulting from transactions following the Contribution shall not increase Protected Gain. Book Gain
shall not be considered Protected Gain.

 

“Protected
Partner” means the Contributor or an Indirect Owner of the Contributor who (i) has notified the Partnership of its status as
a Protected Partner and (ii) provides all documentation reasonably requested by the Partnership to verify such status (including any
applicable debt guarantee), but excludes any person that ceases to be a Protected Partner pursuant to this Agreement.

 

“Section
704(c) Value” means the fair market value of any Gain Limitation Property as of the Closing Date, as determined by the Partnership
and as set forth next to each Gain Limitation Property on Schedule1 hereto. The Partnership shall initially carry the Gain Limitation
Property on its books at a value equal to the Section 704(c) Value as set forth on Schedule 1.

 

“Subsidiary”
means any entity in which the Partnership owns a direct or indirect interest that owns a Gain Limitation Property on the Closing Date
or that thereafter is a successor to the Partnership’s direct or indirect interests in a Gain Limitation Property.

 

“Successor
Partnership” has the meaning set forth in Section 2.1(b).

 

“Tax
Protection Period” means the period commencing on the Closing Date and ending at 12:01 AM on December 31, 2030, provided, however,
that with respect to a Protected Partner, the Tax Protection Period shall terminate at such time as (i) such Protected Partner has disposed
of one hundred percent (100%) of the OP Units received on the Contribution in one or more taxable transactions or (ii) there is a Final
Determination that no portion of the Contribution qualified for tax-deferred treatment under Section 721 of the Code.

 

“Vertical
Slice Guarantee” has the meaning set forth in Section 3.3.

 

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ARTICLE
2

RESTRICTIONS
ON DISPOSITIONS OF

GAIN LIMITATION PROPERTIES; TAX TREATMENT OF CONTRIBUTION

 

2.1 Restrictions
on Disposition of Gain Limitation Properties.

 

(a) The
Partnership agrees for the benefit of each Protected Partner, for the term of the Tax Protection Period, not to directly or indirectly
sell, exchange, transfer, or otherwise dispose of a Gain Limitation Property or any interest therein, without regard to whether such
disposition is voluntary or involuntary, in a transaction that would cause any Protected Partner to recognize any Protected Gain.

 

Without
limiting the foregoing, the term “sale, exchange, transfer or disposition” by the Partnership shall be deemed to include,
and the prohibition shall extend to:

 

	 	(i)	any direct
    or indirect disposition by any direct or indirect Subsidiary of any Gain Limitation Property or any interest therein; 
	 	 	 
	 	(ii)	any direct
    or indirect disposition by the Partnership or Subsidiary of any Gain Limitation Property (or any direct or indirect interest therein)
    that is subject to Section 704(c)(1)(B) of the Code and the Treasury Regulations thereunder; 
	 	 	 
	 	(iii)	any direct
    or indirect disposition by the Partnership or any Subsidiary of all or any portion of its interest in any Subsidiary that owns a
    direct or indirect interest in the Gain Limitation Property (or any direct or indirect interest therein); and
	 	 	 
	 	(iv)	any distribution
    by the Partnership to a Protected Partner that is subject to Section 737 of the Code and the Treasury Regulations thereunder.

 

Without
limiting the foregoing, a disposition shall include any transfer, voluntary or involuntary, by the Partnership or any Subsidiary in a
foreclosure proceeding, pursuant to a deed in lieu of foreclosure, or in a bankruptcy proceeding. A disposition shall not include any
direct or indirect redemption or other transfer by a Protected Partner of its OP Units.

 

Notwithstanding
the foregoing, this Section 2.1 shall not apply to a voluntary, actual disposition by a Protected Partner of OP Units in connection
with a merger or consolidation of the Partnership pursuant to which (1) the Protected Partner is offered as consideration for the OP
Units either cash or property treated as cash pursuant to Section 731 of the Code (“Cash Consideration”) or partnership
interests and the receipt of such partnership interests would not result in the recognition of gain for federal income tax purposes by
the Protected Partner (“Partnership Interest Consideration”); (2) the Protected Partner has the right to elect to
receive solely Partnership Interest Consideration in exchange for his OP Units, and the continuing partnership has agreed in writing
to assume the obligations of the Partnership under this Agreement; (3) no Protected Gain is recognized by the Partnership as a result
of any partner of the Partnership receiving Cash Consideration; and (4) the Protected Partner elects or is deemed to elect to receive
any Cash Consideration.

 

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(b) Notwithstanding
the restriction set forth in this Section 2.1, the Partnership and any Subsidiary may dispose of any Gain Limitation Property
(or any interest therein) if such disposition qualifies as a “like-kind exchange” under Section 1031 of the Code, or an involuntary
conversion under Section 1033 of the Code, or other transaction (including, but not limited to, a contribution of property to any entity
that qualifies for the non-recognition of gain under Section 721 or Section 351 of the Code, or a merger or consolidation of the Partnership
with or into another entity that qualifies for taxation as a “partnership” for federal income tax purposes (a “Successor
Partnership”)) that, as to each of the foregoing, does not result in the recognition of any taxable income or gain to any Protected
Partner with respect to any of the OP Units; provided, however, that (i) in the event of a disposition under Section 1031 or Section
1033 of the Code, any property that is acquired in exchange for or as a replacement for the Gain Limitation Property shall thereafter
be considered the Gain Limitation Property, and such replacement property will be held by the Subsidiary that undertakes such exchange
for a period of at least two years (or by the Partnership, if the Partnership directly owns the Gain Limitation Property prior to such
exchange); (ii) in the case of a “like-kind exchange” under Section 1031 of the Code, if such exchange is with a “related
party” within the meaning of Section 1031(f)(3) of the Code, any direct or indirect disposition by such related party of the Gain
Limitation Property or any other transaction prior to the expiration of the two (2) year period following such exchange that would cause
Section 1031(f)(1) of the Code to apply with respect to such Gain Limitation Property (including by reason of the application of Section
1031(f)(4) of the Code) shall be considered a violation of this Section 2.1 by the Partnership; (iii) if the Gain Limitation Property
is transferred to another entity in a transaction in which gain or loss is not recognized, the entity and any intervening entities shall
be considered Subsidiaries, and if the acquiring entity’s disposition of the Gain Limitation Property would cause Contributor to
recognize gain or loss as a result thereof, the Gain Limitation Property shall still be subject to this Agreement; or (iv) if the Partnership
directly or indirectly receives any property that is in whole or in part a “substituted basis property” as defined in Section
7701(a)(42) of the Code with respect to the Gain Limitation Property, such substituted basis property shall thereafter be considered
part of the Gain Limitation Property.

 

2.2 Issuances
of Additional Equity Interests. Notwithstanding the above, the issuance of additional partnership interests in the Partnership pursuant
to the Partnership Agreement shall not be considered to be prohibited by this Article unless such partnership interests are in a form
that either their issuance, or any exercise by a holder of any rights thereunder, would be considered to result in a direct or indirect
taxable disposition by the Partnership or any Subsidiary of the Gain Limitation Property or any interest therein (determined taking into
account, without limitation, Sections 704(c)(1)(B), 707(a), and 737 of the Code).

 

2.3 Intended
Tax Treatment of Contribution. It is intended for federal income tax purposes that (i) the Contribution for OP Units will be treated
as a tax-deferred contribution of the interests in the Entities, or the Properties, in the case of any Entities that are disregarded
as separate from a Contributor for federal income tax purposes, to the Partnership for OP Units under Code Section 721, (ii) all indebtedness
to be assumed by the Partnership or any of its affiliates pursuant to the transactions contemplated by this Agreement or the Contribution
Agreement be treated as “qualified liabilities” within the meaning of Treasury Regulation Section 1.707-5(a)(5); and (iii)
the cash consideration distributed to Contributor (if any) be treated as a reimbursement of preformation capital expenditures incurred
by the Contributor pursuant to Treasury Regulation Section 1.707-4(d).

 

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ARTICLE
3

ALLOCATION
OF LIABILITIES; GUARANTEE AND DEFICIT RESTORATION OBLIGATION OPPORTUNITY; NOTIFICATION OF REDUCTION OF LIABILITIES; COOPERATION REGARDING
ADDITIONAL ALLOCATION OF LIABILITIES

 

3.1 Maintenance
of Specific Indebtedness. During the Tax Protection Period, the Partnership shall maintain the Maintained Debt, provided that the
Partnership may make any required debt service payments on the Maintained Debt pursuant to the terms as of the date hereof, and the Partnership
may refinance the Maintained Debt with property level debt secured by the same properties that currently secure the Maintained Debt so
long as the refinancing debt has a term and payment schedule no earlier than the Maintained Debt. If the Partnership refinances the Maintained
Debt, the Partnership will offer to each Protected Partner the opportunity to enter into a guarantee on commercially reasonable terms
that are acceptable to each Protected Partner with respect to such refinancing debt. During the Tax Protection Period, subject to the
entrepreneurial risk of the Partnership, the Partnership may, but is not required to, reduce the Maintained Debt, provided that the obligation
to allocate the Minimum Liability Amount to the extent required by this Article 3 shall continue to apply.

 

3.2 Maintenance
of Indebtedness. During the Tax Protection Period, the Partnership shall maintain an amount of indebtedness sufficient to allow each
Protected Partner, after taking advantage of the provisions of this Article 3, to be allocated Partnership liabilities for purposes of
Section 752 of the Code, and to be “at risk” with respect to Partnership liabilities for purposes of Section 465 of the Code,
in each case in an amount no less than such Protected Partner’s Minimum Liability Amount.

 

3.3 Minimum
Liability Allocation.

 

(a) During
the Tax Protection Period, the Partnership will offer to each Protected Partner the opportunity, in the Partnership’s discretion,
either (i) to enter into a “vertical slice guarantee” of certain liabilities of the Partnership pursuant to which the lender
for such Guaranteed Debt is required to pursue all other collateral and security for the Guaranteed Debt (other than any “vertical
slice guarantees”) prior to seeking to collect on such a Partner Guarantor, and the Protected Partner will guarantee a fractional
share of each dollar of the Guaranteed Debt, and the maximum aggregate liability of each partner for all Guaranteed Debt shall be limited
to the amount actually guaranteed by such Partner Guarantor (a “Vertical Slice Guarantee”) or (ii) in the event that
the Partnership has sufficient recourse debt outstanding, to enter into a Deficit Restoration Obligation, commercially reasonable guarantees,
reimbursement agreements or indemnifications, in such amount or amounts so as to cause a special allocation of partnership liabilities
to such Protected Partner for purposes of Section 752 of the Code such that the Protected Partner’s allocable share of Partnership
liabilities equals such Protected Partner’s Minimum Liability Amount and to cause a special allocation of partnership liabilities
for purposes of Section 465 of the Code that increases the Protected Partner’s “at risk” amount such that the Protected
Partner’s “at-risk” amount equals such Protected Partner’s Minimum Liability Amount. In order to minimize the
need for a Protected Partner to enter into a Vertical Slice Guarantee or Deficit Restoration Obligations, the Partnership will use the
traditional method under Treasury Regulations Section 1.752-3(a)(3) to allocate Nonrecourse Liabilities considered secured by a Gain
Limitation Property to the Protected Partners to the extent that the “built-in gain” with respect to those properties exceeds
the amount of the Nonrecourse Liabilities considered secured by such Gain Limitation Property allocated to the Protected Partners under
Treasury Regulations Section 1.752-3(a)(2). Any Vertical Slice Guarantee shall also include such indemnities and/or waivers of subrogation
as are necessary to ensure that the guaranteed portion of such debt is allocated to the Protected Partner pursuant to the regulations
under §752 of the Code.

 

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(b) Notwithstanding
the foregoing, if, due to a change in law, a Protected Partner reasonably believes that such Protected Partner may no longer continue
to be allocated such Guaranteed Amount of a Guaranteed Debt, such Protected Partner may request a modification of such Vertical Slice
Guarantee and the Partnership will use its commercially reasonable efforts to work with the lender with respect to such Guaranteed Debt
to have the Vertical Slice Guarantee amended in a manner that will permit such Protected Partner to be allocated such Protected Partner’s
Guaranteed Amount with respect to the Guaranteed Debt or, in the event the Partnership has sufficient recourse debt outstanding, such
Protected Partner, at its option, shall be offered the opportunity to enter into a Deficit Restoration Obligation in an amount equal
to such Guaranteed Amount so that, assuming such Deficit Restoration Obligation is effective under applicable law, the amount of Partnership
liabilities allocated to such Protected Partner shall not decrease as a result of the change in law. Furthermore, if, due to a change
in law, a Protected Partner reasonably believes such Protected Partner may no longer continue to be allocated Partnership liabilities
with respect to a Deficit Restoration Obligation, such Protected Partner may request a modification of the terms of such Deficit Restoration
Obligation and the Partnership will use commercially reasonable efforts to modify such Deficit Restoration Obligation in a manner that
will permit such Protected Partner to be allocated Partnership liabilities in an amount so as to cause such Protected Partner’s
allocable share of Partnership liabilities to equal such Protected Partner’s Minimum Liability Amount.

 

3.4 Notification
Requirement. During the Tax Protection Period, the Partnership shall provide prior written notice to a Protected Partner if the Partnership
intends to repay, retire, refinance or otherwise reduce (other than due to scheduled amortization) the amount of liabilities with respect
to a Gain Limitation Property in a manner that may cause a Protected Partner to recognize gain for federal income tax purposes as a result
of a decrease of the Protected Partner’s share of Partnership liabilities below the Minimum Liability Amount.

 

3.5 Additional
Allocation of Liabilities. If the Partnership provides notice to a Protected Partner pursuant to Section 3.4, the Partnership shall
cooperate with the Protected Partner to arrange an additional allocation of liabilities of the Partnership to the Protected Partner in
such amount or amounts so as to increase the amount of partnership liabilities allocated to such Protected Partner for purposes of Section
752 of the Code by an amount necessary to prevent the Protected Partner from recognizing gain for federal income tax purposes up to the
Minimum Liability Amount as a result of the intended repayment, retirement, refinancing or other reduction (other than scheduled amortization)
in the amount of liabilities with respect to a Gain Limitation Property, including, without limitation, offering to the Protected Partner
the opportunity, in the Partnership’s discretion, either (i) to enter into additional Vertical Slice Guarantees or (ii) to enter
into additional Deficit Restoration Obligations, in either case to the extent of the amount of the Minimum Liability Amount. In order
to minimize the need to make additional special allocations of liabilities of the Partnership pursuant to the preceding sentence, the
Partnership will use the traditional method under Treasury Regulations Section 1.752-3(a)(3) to allocate Nonrecourse Liabilities considered
secured by a Gain Limitation Property to the Protected Partner to the extent that the “built-in gain” with respect to those
properties exceeds the amount of the Nonrecourse Liabilities considered secured by such Gain Limitation Property and allocated to the
Protected Partner under Treasury Regulations Section 1.752-3(a)(2).

 

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3.6 Deficit
Restoration Obligation. In the event that the Partnership otherwise has sufficient recourse debt outstanding and a Protected Partner
has elected to enter into a Deficit Restoration Obligation, the Partnership will maintain an amount of indebtedness of the Partnership
that is considered “recourse” indebtedness (taking into account all of the facts and circumstances related to the indebtedness,
the Partnership and the general partner) equal to or greater than the sum of the amounts subject to a Deficit Restoration Obligation
of all Protected Partners and other partners in the Partnership. The Deficit Restoration Obligation shall be conclusively presumed to
cause the Protected Partner to be allocated an amount of liabilities equal to the Deficit Restoration Obligation amount of such Protected
Partner for purposes of Sections 465 and 752 of the Code, provided that (1) the Partnership maintains an amount of debt that is considered
“recourse” indebtedness (determined for purposes of Section 752 of the Code and taking into account all of the facts and
circumstances related to the indebtedness, the Partnership and the general partner) equal to the aggregate Deficit Restoration Obligation
amounts of all partners of the Partnership and (2) all other terms and conditions of the Partnership Agreement with respect to such Deficit
Restoration Obligation are met.

 

3.7 No
Representation With Regard to Tax Treatment. The REIT and the Partnership (a) make no representation to any Protected Partner with
regard to the tax treatment of the Contribution and (b) provided that the REIT and the Partnership comply with their obligations under
this Agreement have no liability to any Protected Partner for or in respect of, the tax consequences to such partners of any transactions
contemplated herein including whether becoming a guarantor of debt or entering into a Deficit Restoration Obligation shall be respected
for federal income tax purposes as causing such partner to be considered to “bear the economic risk of loss” with respect
to indebtedness for purposes of Section 752 or Section 465 of the Code.

 

ARTICLE
4

REMEDIES
FOR BREACH

 

4.1 Monetary
Damages. In the event that the Partnership breaches its obligations set forth in Article 2 or Article 3 with respect
to a Protected Partner, the Protected Partner’s sole remedy shall be to receive from the Partnership, and the Partnership shall
pay to such Protected Partner as damages, an amount equal to:

 

	 	(a)	in
    the case of a violation of Article 2, the aggregate federal, state, and local income taxes incurred by the Protected Partner or an
    Indirect Owner with respect to the Protected Gain that is allocable to such Protected Partner under the Partnership Agreement as
    a result of the disposition of the Gain Limitation Property; and 

 

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	 	(b)	in
    the case of a violation of Article 3, the aggregate federal, state and local income taxes incurred by the Protected Partner or an
    Indirect Owner as a result of the income or gain allocated to, or otherwise recognized by, such Protected Partner with respect to
    its Protected Gain by reason of such breach. 

 

In
addition, the Partnership shall pay to the Protected Partner or Indirect Owner an amount equal to the aggregate federal, state, and local
income taxes payable by the Protected Partner or Indirect Owner as a result of the receipt of any payment required under this Section
4.1.

 

For
the avoidance of doubt, so long as the Partnership provides the opportunities referenced in Sections 3.1, 3.2, 3.3,
3.5 and 3.6 and complies with the notification requirement of Section 3.4, the Partnership shall have no liability
pursuant to this Section 4.1 in the event it is determined that a Protected Partner has not been specially allocated for purposes
of Section 752 of the Code an amount of partnership liabilities equal to such Protected Partner’s Minimum Liability Amount or is
not treated as receiving a special allocation of partnership liabilities for purposes of Section 465 of the Code that increases such
Protected Partner’s “at risk” amount by an amount equal to such Protected Partner’s Minimum Liability Amount.
Furthermore, the Partnership shall have no liability pursuant to this Section 4.1 if the Partnership merges into another entity
treated as a partnership for federal income tax purposes or the Protected Partner accepts an offer to exchange its OP Units for equity
interests in another entity treated as a partnership for federal income tax purposes so long as, in either case, such successor entity
assumes or agrees to assume the Partnership’s obligations pursuant to this Agreement.

 

For
purposes of computing the amount of federal, state, and local income taxes required to be paid by a Protected Partner, (i) any deduction
for state income taxes payable as a result thereof actually allowed in computing federal income taxes shall be taken into account, and
(ii) a Protected Partner’s tax liability shall be computed using the highest federal, state and local marginal income tax rates
(plus the tax rate on net investment income, if applicable) that would be applicable to such Protected Partner’s taxable income
(taking into account the character and type of such income or gain) for the year with respect to which the taxes must be paid, without
regard to any deductions, losses or credits that may be available to such Protected Partner that would reduce or offset its actual taxable
income or actual tax liability if such deductions, losses or credits could be utilized by the Protected Partner to offset other income,
gain or taxes of the Protected Partner, either in the current year, in earlier years, or in later years.

 

4.2 Process
for Determining Damages. If the Partnership has breached or violated any of the covenants set forth in Article 2 or Article
3 (or a Protected Partner asserts that the Partnership has breached or violated any of the covenants set forth in Article 2 or Article
3), the Partnership and the Protected Partner agree to negotiate in good faith to resolve any disagreements regarding any such breach
or violation and the amount of damages, if any, payable to such Protected Partner under Section 4.1. If any such disagreement
cannot be resolved by the Partnership and such Protected Partner within sixty (60) days after the receipt of notice by the Partnership
of an assertion by a Protected Partner that the Partnership has breached or violated any of the covenants set forth in Article 2
or Article 3), the Partnership and the Protected Partner shall jointly retain a nationally recognized independent public accounting
firm (an “Accounting Firm”) to act as an arbitrator to resolve as expeditiously as possible all points of any such
disagreement (including, without limitation, whether a breach of any of the covenants set forth in Article 2 or Article 3,
has occurred and, if so, the amount of damages to which the Protected Partner is entitled as a result thereof, determined as set forth
in Section 4.1). The Partnership and the Protected Partner shall cooperate with the Accounting Firm and shall furnish the Accounting
Firm with all information reasonably requested by the Accounting Firm. All determinations made by the Accounting Firm with respect to
the resolution of any breach or violation of any of the covenants set forth in Article 2 or Article 3 and the amount of
damages payable to the Protected Partner under Section 4.1 shall be final, conclusive and binding on the Partnership and the Protected
Partner. The fees and expenses of any Accounting Firm incurred in connection with any such determination shall be shared equally by the
Partnership and the Protected Partner, provided that if the amount determined by the Accounting Firm to be owed by the Partnership to
the Protected Partner is more than five percent (5%) higher than the amount proposed by the Partnership to be owed to such Protected
Partner prior to the submission of the matter to the Accounting Firm, then all of the fees and expenses of any Accounting Firm incurred
in connection with any such determination shall be paid by the Partnership and if the amount determined by the Accounting Firm to be
owed by the Partnership to the Protected Partner is more than five percent (5%) less than the amount proposed by the Partnership to be
owed to such Protected Partner prior to the submission of the matter to the Accounting Firm, then all of the fees and expenses of any
Accounting Firm incurred in connection with any such determination shall be paid by the Protected Partner.

 

    	10

    	 

    

 

4.3 Required
Notices; Time for Payment. In the event that there has been a breach of Article 2 or Article 3, the Partnership shall
provide to each affected Protected Partner notice of the transaction or event giving rise to such breach not later than at such time
as the Partnership provides to the Protected Partners the IRS Schedule K-1’s to the Partnership’s federal income tax return
for the year of such transaction. All payments required to be made under this Article 4 to any Protected Partner shall be made
to such Protected Partner on or before April 15 of the year following the year in which the gain recognition event giving rise to such
payment took place; provided that, if the Protected Partner is required to make estimated tax payments that would include such gain (taking
into account all available safe harbors), the Partnership shall make a payment to the Protected Partner on or before the due date for
such estimated tax payment and such payment from the Partnership shall be in an amount that corresponds to the amount of the estimated
tax being paid by such Protected Partner at such time as a result of the gain recognition event, which payment shall be credited against
the total amount payable under this Article 4. In the event of a payment made after the date required pursuant to this Section 4.3,
interest shall accrue on the aggregate amount required to be paid from such date to the date of actual payment at a rate equal to the
“prime rate” of interest, as published in the Wall Street Journal (or if no longer published there, an equivalent publication)
effective as of the date the payment is required to be made.

 

ARTICLE
5

NOTICE
OF INTENTION TO SELL GAIN LIMITATION

PROPERTY DURING NOTICE PERIOD

 

During
the Notice Period, if the Partnership intends to dispose of a Gain Limitation Property in a taxable transaction, the Partnership shall
use commercially reasonable efforts to provide at least 90 days’ prior written notice (prior to the closing of such disposition)
to the Protected Partners.

 

    	11

    	 

    

 

ARTICLE
6

SECTION
704(C) METHOD AND ALLOCATIONS

 

Notwithstanding
any provision of the Partnership Agreement, the Partnership shall use the “traditional method” under Treasury Regulations
Section 1.704-3(b) for purposes of making all allocations under Section 704(c) of the Code with respect to any Gain Limitation Property.

 

ARTICLE
7

AMENDMENT
OF THIS AGREEMENT; WAIVER OF CERTAIN PROVISIONS

 

7.1 Amendment.
This Agreement may not be amended, directly or indirectly (including by reason of a merger between either the Partnership or the REIT
and another entity) except by a written instrument signed by the REIT, the Partnership, and each of the Protected Partners to be subject
to such amendment, except that the Partnership may amend Schedule 1 upon a person becoming a Protected Partner as a result of
a transfer of OP Units.

 

7.2 Waiver.
Notwithstanding the foregoing, upon written request by the Partnership, each Protected Partner, in its sole discretion, may waive the
payment of any damages or indemnification amount that is otherwise payable to such Protected Partner pursuant to Article 4 hereof.
Such a waiver shall be effective only if obtained in writing from the affected Protected Partner.

 

ARTICLE
8

MISCELLANEOUS

 

8.1 Additional
Actions and Documents. Each of the Parties hereby agrees to take or cause to be taken such further actions, to execute, deliver,
and file or cause to be executed, delivered and filed such further documents, and will obtain such consents, as may be necessary or as
may be reasonably requested in order to fully effectuate the purposes, terms and conditions of this Agreement.

 

8.2 Assignment.
No Party shall assign its or his rights or obligations under this Agreement, in whole or in part, except by operation of law, without
the prior written consent of the other Parties, and any such assignment contrary to the terms hereof shall be null and void and of no
force and effect.

 

8.3 Successors
and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the Protected Partners and their respective successors
and permitted assigns, whether so expressed or not. This Agreement shall be binding upon the REIT, the Partnership, and any entity that
is a direct or indirect successor, whether by merger, transfer, spin-off or otherwise, to all or substantially all of the assets of either
the REIT or the Partnership (or any prior successor thereto as set forth in the preceding portion of this sentence), provided that none
of the foregoing shall result in the release of liability of the REIT and the Partnership hereunder. The REIT and the Partnership covenant
with and for the benefit of the Protected Partners not to undertake any transfer of all or substantially all of the assets of either
entity (whether by merger, transfer, spin-off or otherwise) unless the transferee has acknowledged in writing and agreed in writing to
be bound by this Agreement, provided that the foregoing shall not be deemed to permit any transaction otherwise prohibited by this Agreement.

 

    	12

    	 

    

 

8.4 Modification;
Waiver. No failure or delay on the part of any Party in exercising any power or right hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a
right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of
the Parties are cumulative and not exclusive of any rights or remedies which they would otherwise have. No modification or waiver of
any provision of this Agreement, nor consent to any departure by any Party therefrom, shall in any event be effective unless the same
shall be in writing, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.
No notice to or demand on any Party in any case shall entitle such Party to any other or further notice or demand in similar or other
circumstances.

 

8.5 Representations
and Warranties Regarding Authority; Noncontravention. Each of the REIT and the Partnership has the requisite corporate or other (as
the case may be) power and authority to enter into this Agreement and to perform its respective obligations hereunder. The execution
and delivery of this Agreement by each of the REIT and the Partnership and the performance of each of its respective obligations hereunder
have been duly authorized by all necessary trust, partnership, or other (as the case may be) action on the part of each of the REIT and
the Partnership. This Agreement has been duly executed and delivered by each of the REIT and the Partnership and constitutes a valid
and binding obligation of each of the REIT and the Partnership, enforceable against each of the REIT and the Partnership in accordance
with its terms, except as such enforcement may be limited by (i) applicable bankruptcy or insolvency laws (or other laws affecting creditors’
rights generally) or (ii) general principles of equity. The execution and delivery of this Agreement by each of the REIT and the Partnership
do not, and the performance by each of its respective obligations hereunder will not, conflict with, or result in any violation of (i)
the Partnership Agreement or (ii) any other agreement applicable to the REIT and/or the Partnership, other than, in the case of clause
(ii), any such conflicts or violations that would not materially adversely affect the performance by the Partnership and the REIT of
their obligations hereunder.

 

8.6 Captions.
The Article and Section headings contained in this Agreement are inserted for convenience of reference only, shall not be deemed to be
a part of this Agreement for any purpose, and shall not in any way define or affect the meaning, construction or scope of any of the
provisions hereof.

 

8.7 Notices.
All notices and other communications given or made pursuant hereto shall be in writing, shall be deemed to have been duly given or made
as of the date delivered, mailed or transmitted, and shall be effective upon receipt, if delivered personally, mailed by registered or
certified mail (postage prepaid, return receipt requested) to the Parties at the following addresses (or at such other address for a
Party as shall be specified by like changes of address) or sent by electronic transmission to the telecopier number specified below:

 

		(a)	if
                                            to the REIT, to:

 

	 	Strawberry
    Fields REIT, Inc. 
	 	6101
    Nimtz Parkway
	 	South
    Bend, IN 46628
	 	Attention:
    Moishe Gubin

 

    	13

    	 

    

 

		(b)	if
                                            to the Partnership, to:

 

	 	Strawberry
    Fields Realty LP 
	 	6101
    Nimtz Parkway
	 	South
    Bend, IN 46628
	 	Attention:
    Moishe Gubin 

 

		(c)	if
                                            to a Protected Partner, to the address on file with the Partnership.

 

Each
Party may designate by notice in writing a new address to which any notice, demand, request or communication may thereafter be so given,
served or sent. Each notice, demand, request, or communication which shall be hand delivered, sent, mailed, telecopied or telexed in
the manner described above, or which shall be delivered to a telegraph company, shall be deemed sufficiently given, served, sent, received
or delivered for all purposes at such time as it is delivered to the addressee (with the return receipt, the delivery receipt, or (with
respect to a telecopy or telex) the answerback being deemed conclusive, but not exclusive, evidence of such delivery) or at such time
as delivery is refused by the addressee upon presentation.

 

8.8 Counterparts.
This Agreement may be executed in two or more counterparts, all of which shall be considered one and the same agreement and each of which
shall be deemed an original.

 

8.9 Governing
Law. The interpretation and construction of this Agreement, and all matters relating thereto, shall be governed by the laws of the
State of Delaware, without regard to the choice of law provisions thereof.

 

8.10 Consent
to Jurisdiction; Enforceability.

 

(a) This
Agreement and the duties and obligations of the Parties shall be enforceable against any of the other Parties in the courts of the State
of Delaware. For such purpose, each Party and the Protected Partners hereby irrevocably submits to the nonexclusive jurisdiction of such
courts and agrees that all claims in respect of this Agreement may be heard and determined in any of such courts.

 

(b) Each
Party hereby irrevocably agrees that a final judgment of any of the courts specified above in any action or proceeding relating to this
Agreement shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

 

8.11 Severability.
If any part of any provision of this Agreement shall be invalid or unenforceable in any respect, such part shall be ineffective to the
extent of such invalidity or unenforceability only, without in any way affecting the remaining parts of such provision or the remaining
provisions of this Agreement.

 

8.12 Costs
of Disputes. Except as otherwise expressly set forth in this Agreement, the non-prevailing Party in any dispute arising hereunder
shall bear and pay the costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) incurred by
the prevailing Party or Parties in connection with resolving such dispute.

 

    	14

    	 

    

 

IN
WITNESS WHEREOF, the Parties have entered into this Agreement of the Effective Date.

 

	 	PARTNERSHIP: 
	 	 
	 	STRAWBERRY
    FIELDS REALTY LP, a

    Delaware
    limited partnership

	 	 
	 	By:
    	Strawberry
    Fields REIT, Inc., a Maryland corporation, its general partner

	 	 	 
	 	By:	/s/
    Moishe Gubin
	 	Name:
    	Moishe
    Gubin
	 	Title:
    	Chief
    Executive Officer

 

	 	REIT:
	 	 
	 	STRAWBERRY
    FIELDS REIT, INC., a

    Maryland
    corporation

	 	 	         

	 	By:
    	/s/
    Moishe Gubin
	 	Name:
    	Moishe
    Gubin
	 	Title:
    	Chief
    Executive Officer

 

	 	CONTRIBUTOR:
	 	 
	 	STRAWBERRY
    FIELDS REIT, LLC, an Indiana

    limited
    liability company

	 	 	                           

	 	By:
    	/s/
    Moishe Gubin
	 	Name:
    	Moishe
    Gubin
	 	Title:
    	Chief
    Executive Officer

 

    	15

    	 

    

 

Schedule
1

 

Entity;
Gain Limitation Property; Section 704(c) Value; Protected Gain

 

	Entities	 	Gain
                                            Limitation
 Property
	 	Section
 704(c)
                                            Value
 ($’000)
	 	 	Protected
 Gain
                                            ($’000)
	 
	326
    Lindley Lane, LLC	 	Skilled Nursing
    Facility	 	 	7,700	 	 	 	4,285	 
	552 Golf
    Links Road, LLC	 	Skilled Nursing Facility	 	 	9,800	 	 	 	5,449	 
	2821
    West Dixon Road, LLC	 	Skilled Nursing Facility	 	 	11,400	 	 	 	6,437	 
	Arkansas
    Loan Acquisition, LLC	 	Mortgage loan	 	 	 	 	 	 	0	 
	Strawberry
    Fields Management Services, LLC	 	No assets	 	 	 	 	 	 	0	 
	Master
    Tenant LLC	 	No assets	 	 	 	 	 	 	0	 
	Master
    Tenant II, LLC	 	No assets	 	 	 	 	 	 	0	 
	Master
    Tenant III LLC	 	No assets	 	 	 	 	 	 	0	 
	LM Master
    Tenant, LLC	 	No assets	 	 	 	 	 	 	0	 
	Strawberry
    Fields REIT, LTD	 	Holding
                                 Company –

                                 Owns
                                 all entities from 11-93
	 	 	 	 	 	 	0	 
	1015
    Magazine Street, LLC	 	Skilled Nursing Facility	 	 	8,010	 	 	 	2,211	 
	1020
    West Vine St Realty, LLC	 	Skilled Nursing Facility	 	 	12,863	 	 	 	7,676	 
	1033
    North Highway 11, LLC	 	Skilled Nursing Facility	 	 	9,100	 	 	 	2,622	 
	107 South
    Lincoln Street LLC	 	Skilled Nursing Facility	 	 	2,300	 	 	 	-658	 
	1101
    Glendale Boulevard LLC	 	Seller note	 	 	 	 	 	 	0	 
	1123
    Rockdale Avenue, LLC	 	No Assets	 	 	 	 	 	 	0	 
	115 Woodlawn
    Drive, LLC	 	Skilled Nursing Facility	 	 	13,600	 	 	 	4,502	 
	1155
    Eastern Parkway, LLC	 	Skilled Nursing Facility	 	 	21,760	 	 	 	4,033	 
	120 Life
    Care Way, LLC	 	Skilled Nursing Facility	 	 	8,500	 	 	 	2,445	 
	12803
    Lenover Street Realty, LLC	 	Skilled Nursing Facility	 	 	16,940	 	 	 	11,601	 
	1316
    North Tibbs Avenue Realty, LLC	 	Skilled
    Nursing Facility	 	 	7,150	 	 	 	5,177	 
	1350
    North Todd St, LLC	 	Skilled Nursing Facility	 	 	9,511	 	 	 	6,843	 
	140 Technology
    Lane, LLC	 	Skilled Nursing Facility	 	 	10,480	 	 	 	1,807	 
	146 Buck
    Creek Road, LLC	 	Skilled Nursing Facility	 	 	9,980	 	 	 	4,351	 
	1513
    S. Dixieland Road, LLC	 	Skilled Nursing Facility	 	 	7,100	 	 	 	3,630	 
	1516
    Cumberland Street, LLC	 	Skilled Nursing Facility	 	 	7,750	 	 	 	3,965	 
	1585
    Perry Worth Road, LLC	 	Skilled Nursing Facility	 	 	1,800	 	 	 	1,071	 
	1600
    East Liberty Street Realty, LLC	 	Skilled Nursing Facility	 	 	21,812	 	 	 	11,680	 
	1601
    Hospital Dr Realty, LLC	 	Skilled Nursing Facility	 	 	11,538	 	 	 	-1,095	 
	1621
    Coit Road Realty, LLC	 	Skilled Nursing Facility	 	 	11,200	 	 	 	2,071	 
	1623
    West Delmar Ave, LLC	 	Skilled Nursing Facility	 	 	2,600	 	 	 	596	 
	1712
    Leland Drive Realty, LLC	 	Skilled Nursing Facility	 	 	5,992	 	 	 	838	 

 

    	16

    	 

    

 

	202 Enon Springs
    East, LLC	 	Skilled
    Nursing Facility	 	 	11,350	 	 	 	4,271	 
	203 Bruce Court, LLC	 	Skilled
    Nursing Facility	 	 	5,400	 	 	 	162	 
	2055 Heritage Dr Realty, LLC	 	Skilled
    Nursing Facility	 	 	11,601	 	 	 	7,319	 
	2301 North Oregon Realty,
    LLC	 	Skilled
    Nursing Facility	 	 	16,100	 	 	 	6,102	 
	2400 Chateau Drive Realty,
    LLC	 	Skilled
    Nursing Facility	 	 	11,249	 	 	 	8,147	 
	2501 John Ashley Drive, LLC	 	Skilled
    Nursing Facility	 	 	9,050	 	 	 	4,635	 
	2501 River Road, LLC	 	Skilled
    Nursing Facility	 	 	9,980	 	 	 	4,290	 
	253 Bradington Drive, LLC	 	Skilled
    Nursing Facility	 	 	5,000	 	 	 	2,596	 
	308 West Maple Avenue, LLC	 	Skilled
    Nursing Facility	 	 	8,360	 	 	 	1,769	 
	3090 Five Points Hartford
    Road Realty, LLC	 	Skilled
    Nursing Facility	 	 	2,100	 	 	 	1,255	 
	3121 Glanzman Road Realty,
    LLC	 	Skilled
    Nursing Facility	 	 	3,300	 	 	 	1,095	 
	3523 Wickenhauser, LLC	 	Skilled
    Nursing Facility	 	 	6,550	 	 	 	6,535	 
	3895 Keystone Ave Realty,
    LLC	 	Skilled
    Nursing Facility	 	 	11,203	 	 	 	-111	 
	393 Edwardsville Road LLC	 	Skilled
    Nursing Facility	 	 	6,100	 	 	 	3,062	 
	405 Rio Vista Lane Realty,
    LLC	 	Skilled
    Nursing Facility	 	 	10,115	 	 	 	3,259	 
	414 Massey Avenue, LLC	 	Skilled
    Nursing Facility	 	 	2,050	 	 	 	1,039	 
	4250 Sodom Hutchings Road
    Realty, LLC	 	Skilled
    Nursing Facility	 	 	1,950	 	 	 	1,424	 
	4343 Kennedy Drive, LLC	 	Skilled
    Nursing Facility	 	 	4,000	 	 	 	113	 
	4586 Acushnet Avenue, LLC	 	No assets	 	 	 	 	 	 	0	 
	516 West Frech St, LLC	 	Skilled
    Nursing Facility	 	 	4,950	 	 	 	3,997	 
	5301 Wheeler Avenue, LLC	 	Skilled
    Nursing Facility	 	 	7,550	 	 	 	3,859	 
	5601 Plum Creek Drive Realty,
    LLC	 	Skilled
    Nursing Facility	 	 	5,200	 	 	 	4,200	 
	5720 West Markham Street,
    LLC	 	Skilled
    Nursing Facility	 	 	9,950	 	 	 	4,494	 
	620 West Strub Road Realty,
    LLC	 	Skilled
    Nursing Facility	 	 	1,950	 	 	 	-402	 
	704th 5th Avenue East, LLC	 	Skilled
    Nursing Facility	 	 	8,230	 	 	 	3,817	 
	706 Oak Grove Street, LLC	 	Skilled
    Nursing Facility	 	 	6,300	 	 	 	3,239	 
	727 North 17th Street, LLC	 	Skilled
    Nursing Facility	 	 	7,300	 	 	 	7,284	 
	761 Highland Avenue, LLC	 	No assets	 	 	 	 	 	 	0	 
	8200 National Ave Realty,
    LLC	 	Skilled
    Nursing Facility	 	 	15,600	 	 	 	7,360	 
	826 North Street, LLC	 	Skilled
    Nursing Facility	 	 	6,100	 	 	 	3,134	 
	835 Union Street, LLC	 	Skilled
    Nursing Facility	 	 	11,980	 	 	 	3,491	 
	8701 Riley Dr., LLC	 	Skilled
    Nursing Facility	 	 	9,050	 	 	 	4,635	 
	9 Pope Street, LLC	 	No assets	 	 	 	 	 	 	0	 
	900 Gagel Avenue, LLC	 	Skilled
    Nursing Facility	 	 	10,270	 	 	 	7,109	 
	907 Center Street, LLC	 	No assets	 	 	 	 	 	 	0	 
	911 South 3rd St Realty, LLC	 	Skilled
    Nursing Facility	 	 	4,520	 	 	 	948	 
	9209 Dollarway Road, LLC	 	Skilled
    Nursing Facility	 	 	8,750	 	 	 	2,629	 
	9300 Ballard Road, LLC	 	Skilled
    Nursing Facility	 	 	14,000	 	 	 	174	 
	945 West Russell Street, LLC	 	Skilled
    Nursing Facility	 	 	9,100	 	 	 	2,529	 
	950 Cross Ave Realty, LLC	 	Skilled
    Nursing Facility	 	 	11,021	 	 	 	1,635	 
	958 East Highway 46 Realty,
    LLC	 	Skilled
    Nursing Facility	 	 	8,778	 	 	 	4,798	 

 

    	17

    	 

    

 

	Ambassador Nursing
    Realty, LLC	 	Skilled Nursing
    Facility	 	 	14,200	 	 	 	10,963	 
	Belhaven Realty, LLC	 	Skilled Nursing Facility	 	 	24,200	 	 	 	19,123	 
	Continental Realty, LLC	 	Skilled Nursing Facility	 	 	13,350	 	 	 	9,457	 
	Forest View Nursing Realty,
    LLC	 	Skilled Nursing Facility	 	 	15,700	 	 	 	12,043	 
	Lincoln Park Holdings, LLC	 	Skilled Nursing Facility	 	 	10,700	 	 	 	3,440	 
	Midway Neurological and Rehab
    Realty, LLC	 	Skilled
    Nursing Facility	 	 	37,900	 	 	 	31,705	 
	Momence Meadows Realty, LLC	 	Skilled Nursing Facility	 	 	7,500	 	 	 	5,400	 
	Niles Nursing Realty, LLC	 	Skilled Nursing Facility	 	 	29,900	 	 	 	16,720	 
	Oak Lawn Nursing Realty, LLC	 	Skilled Nursing Facility	 	 	5,800	 	 	 	4,008	 
	Parkshore Estates Nursing
    Realty, LLC	 	Skilled
    Nursing Facility	 	 	29,800	 	 	 	11,678	 
	Southern Illinois Healthcare
    Realty, LLC	 	Skilled
    Nursing Facility	 	 	6,300	 	 	 	2,422	 
	The Big H2O, LLC	 	Owns lease rights	 	 	6,870	 	 	 	6,097	 
	TX/OK Funding, LLC	 	No assets	 	 	 	 	 	 	0	 
	West Suburban Nursing Realty,
    LLC	 	Skilled
    Nursing Facility	 	 	24,600	 	 	 	18,656	 
	Westshire Realty, LLC	 	Skilled Nursing Facility	 	 	23,400	 	 	 	8,965	 

 

    	18Exhibit 10.7

 

STRAWBERRY
FIELDS REIT, INC.

 

2021
EQUITY INCENTIVE PLAN

 

    	 

     

    

 

TABLE
OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE I	DEFINITIONS	1
	 	 	 	 
	 	1.01.	Affiliate	1
	 	 	 	 
	 	1.02.	Agreement	1
	 	 	 	 
	 	1.03.	Board	1
	 	 	 	 
	 	1.04.	Change in Control	1
	 	 	 	 
	 	1.05.	Code	2
	 	 	 	 
	 	1.06.	Committee	2
	 	 	 	 
	 	1.07.	Common Stock	2
	 	 	 	 
	 	1.08.	Company	2
	 	 	 	 
	 	1.09.	Control Change Date	2
	 	 	 	 
	 	1.10.	Corresponding SAR	2
	 	 	 	 
	 	1.11.	Dividend Equivalent Right	2
	 	 	 	 
	 	1.12.	Exchange Act	2
	 	 	 	 
	 	1.13.	Fair Market Value	3
	 	 	 	 
	 	1.14.	Incentive Award	3
	 	 	 	 
	 	1.15.	Initial Value	3
	 	 	 	 
	 	1.16.	Non-Employee Director	3
	 	 	 	 
	 	1.17.	Operating Partnership	3
	 	 	 	 
	 	1.18.	Option	3
	 	 	 	 
	 	1.19.	Other Equity-Based Award	3
	 	 	 	 
	 	1.20.	Participant	3
	 	 	 	 
	 	1.21.	Performance Goal	4
	 	 	 	 
	 	1.22.	Performance Units	4
	 	 	 	 
	 	1.23.	Plan	4
	 	 	 	 
	 	1.24.	SAR	4
	 	 	 	 
	 	1.25.	Stock Award	4
	 	 	 	 
	 	1.26.	Ten Percent Stockholder	4
	 	 	 	 
	ARTICLE II	PURPOSES	4
	 	 	 	 
	ARTICLE III	ADMINISTRATION	5
	 	 	 	 
	ARTICLE IV	ELIGIBILITY	5
	 	 	 	 
	ARTICLE V	COMMON STOCK SUBJECT TO PLAN	6
	 	 	 	 
	 	5.01.	Common Stock Issued	6
	 	 	 	 
	 	5.02.	Aggregate Limit	6
	 	 	 	 
	 	5.03.	Non-Employee Director Grant
    Limit	6
	 	 	 	 
	 	5.04.	Reallocation of Shares	6

 

    	-i-

     

    

 

Table
of Contents

(continued)

 

	ARTICLE VI	OPTIONS	6
	 	 	 	 
	 	6.01.	Award	6
	 	 	 	 
	 	6.02.	Option Price	7
	 	 	 	 
	 	6.03.	Maximum Option Period	7
	 	 	 	 
	 	6.04.	Nontransferability	7
	 	 	 	 
	 	6.05.	Transferable Options	7
	 	 	 	 
	 	6.06.	Employee Status	7
	 	 	 	 
	 	6.07.	Exercise	8
	 	 	 	 
	 	6.08.	Payment	8
	 	 	 	 
	 	6.09.	Stockholder Rights	8
	 	 	 	 
	 	6.10.	Disposition of Shares	8
	 	 	 	 
	ARTICLE VII	SARS	8
	 	 	 	 
	 	7.01.	Award	8
	 	 	 	 
	 	7.02.	Maximum SAR Period	8
	 	 	 	 
	 	7.03.	Nontransferability	8
	 	 	 	 
	 	7.04.	Transferable SARs	9
	 	 	 	 
	 	7.05.	Exercise	9
	 	 	 	 
	 	7.06.	Employee Status	9
	 	 	 	 
	 	7.07.	Settlement	9
	 	 	 	 
	 	7.08.	Stockholder Rights	9
	 	 	 	 
	 	7.09.	No Reduction of Initial Value	9
	 	 	 	 
	ARTICLE VIII	STOCK AWARDS	10
	 	 	 	 
	 	8.01.	Award	10
	 	 	 	 
	 	8.02.	Vesting	10
	 	 	 	 
	 	8.03.	Employee Status	10
	 	 	 	 
	 	8.04.	Stockholder Rights	10
	 	 	 	 
	ARTICLE IX	PERFORMANCE UNIT AWARDS	10
	 	 	 	 
	 	9.01.	Award	10
	 	 	 	 
	 	9.02.	Earning the Award	11
	 	 	 	 
	 	9.03.	Payment	11
	 	 	 	 
	 	9.04.	Stockholder Rights	11
	 	 	 	 
	 	9.05.	Nontransferability	11
	 	 	 	 
	 	9.06.	Transferable Performance Units	11
	 	 	 	 
	 	9.07.	Employee Status	11

 

    	-ii-

     

    

 

Table
of Contents

(continued)

 

	ARTICLE X	OTHER EQUITY–BASED AWARDS	12
	 	 	 	 
	 	10.01.	Award	12
	 	 	 	 
	 	10.02.	Terms and Conditions	12
	 	 	 	 
	 	10.03.	Payment or Settlement	12
	 	 	 	 
	 	10.04.	Employee Status	12
	 	 	 	 
	 	10.05.	Stockholder Rights	12
	 	 	 	 
	ARTICLE XI	INCENTIVE AWARDS	12
	 	 	 	 
	 	11.01.	Award	12
	 	 	 	 
	 	11.02.	Terms and Conditions	12
	 	 	 	 
	 	11.03.	Nontransferability	13
	 	 	 	 
	 	11.04.	Employee Status	13
	 	 	 	 
	 	11.05.	Settlement	13
	 	 	 	 
	 	11.06.	Stockholder Rights	13
	 	 	 	 
	ARTICLE XII	ADJUSTMENT UPON CHANGE IN
    COMMON STOCK	13
	 	 	 
	ARTICLE XIII	COMPLIANCE WITH LAW AND APPROVAL
    OF REGULATORY BODIES	14
	 	 	 
	ARTICLE XIV	GENERAL PROVISIONS	14
	 	 	 	 
	 	14.01.	Effect on Employment and Service	14
	 	 	 	 
	 	14.02.	Unfunded Plan	14
	 	 	 	 
	 	14.03.	Rules of Construction	14
	 	 	 	 
	 	14.04.	Section 409A Compliance	14
	 	 	 	 
	 	14.05.	Withholding Taxes	15
	 	 	 	 
	 	14.06.	Return of Awards; Repayment	15
	 	 	 	 
	 	14.07.	Governing Law	15
	 	 	 	 
	 	14.08.	Indemnification	15
	 	 	 	 
	ARTICLE XV	CHANGE IN CONTROL	16
	 	 	 	 
	 	15.01.	Impact of Change in Control.	16
	 	 	 	 
	 	15.02.	Assumption Upon Change in
    Control.	16
	 	 	 	 
	 	15.03.	Cash-Out Upon Change in Control.	16
	 	 	 	 
	 	15.04.	Limitation of Benefits	16
	 	 	 	 
	ARTICLE XVI	AMENDMENT	17
	 	 	 
	ARTICLE XVII	DURATION OF PLAN	17
	 	 	 
	ARTICLE XVIII	EFFECTIVE DATE OF PLAN	17

 

    	-iii-

     

    

 

ARTICLE
I

DEFINITIONS

 

1.01.
Affiliate

 

“Affiliate”
means any entity, whether now or hereafter existing, which controls, is controlled by, or is under common control with, the Company (including,
but not limited to, joint ventures, limited liability companies and partnerships). For this purpose, the term “control” shall
mean ownership of 50% or more of the total combined voting power or value of all classes of shares or interests in the entity, or the
power to direct the management and policies of the entity, by contract or otherwise.

 

1.02.
Agreement

 

“Agreement”
means a written agreement (including any amendment or supplement thereto) between the Company and a Participant specifying the terms
and conditions of a Stock Award, an Incentive Award, an award of Performance Units, an Option, SAR or Other Equity-Based Award granted
to such Participant.

 

1.03.
Board

 

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

 

1.04.
Change in Control

 

“Change
in Control” shall mean a change in control of the Company which will be deemed to have occurred after the date hereof if:

 

(a)
any “person” as such term is used in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d)
thereof except that such term shall not include (A) the Company or any of its subsidiaries, (B) any trustee or other fiduciary holding
securities under an employee benefit plan of the Company or any of its affiliates, (C) an underwriter temporarily holding securities
pursuant to an offering of such securities, (D) any corporation owned, directly or indirectly, by the stockholders of the Company in
substantially the same proportions as their ownership of the Company’s common stock, or (E) any person or group as used in Rule
13d-1(b) under the Exchange Act, is or becomes the Beneficial Owner, as such term is defined in Rule 13d-3 under the Exchange Act, directly
or indirectly, of securities of the Company representing at least 50% of the combined voting power or common stock of the Company;

 

(b)
during any period of two consecutive years, individuals who at the beginning of such period constitute the Board, and any new director
(other than (A) a director designated by a person who has entered into an agreement with the Company to effect a transaction described
in clause (1), (3), or (4) of this Section 1.04 or (B) a director whose initial assumption of office is in connection with an actual
or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company)
whose election by the Board or nomination for election by the Company’s stockholders was approved 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;

 

(c)
there is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation,
other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any
parent thereof) in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan
of the Company or any subsidiary of the Company, more than 50% of the combined voting power and common stock of the Company or such surviving
entity or any parent thereof outstanding immediately after such merger or consolidation; or

 

    	 

     

    

 

(d)
there is consummated a sale or disposition by the Company of all or substantially all of the Company’s assets (or any transaction
having a similar effect, including a liquidation) other than a sale or disposition by the Company of all or substantially all of the
Company’s assets to an entity, more than fifty percent (50%) of the combined voting power and common stock of which is owned by
stockholders of the Company in substantially the same proportions as their ownership of the common stock of the Company immediately prior
to such sale.

 

Notwithstanding
the foregoing, if an award under this Plan constitutes “deferred compensation” under Section 409A of the Code, no payment
shall be made under such award on account of a Change in Control unless the occurrence of one or more of the preceding events also constitutes
a change in the ownership or effective control of the Company or a change in the ownership of a substantial portion of the Company’s
assets, all as determined in accordance with the regulations under Section 409A of the Code.

 

1.05.
Code

 

“Code”
means the Internal Revenue Code of 1986, and any amendments thereto.

 

1.06.
Committee

 

“Committee”
means the Compensation Committee of the Board; provided, however, that if there is no Compensation Committee, then “Committee”
means the Board; and provided, further that with respect to awards made to a Non-Employee Director, “Committee” means the
Board.

 

1.07.
Common Stock

 

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

 

1.08.
Company

 

“Company”
means Strawberry Fields REIT, Inc., a Maryland corporation.

 

1.09.
Control Change Date

 

“Control
Change Date” means the date on which a Change in Control occurs. If a Change in Control occurs on account of a series of transactions,
the “Control Change Date” is the date of the last of such transactions.

 

1.10.
Corresponding SAR

 

“Corresponding
SAR” means a SAR that is granted in relation to a particular Option and that can be exercised only upon the surrender to the Company,
unexercised, of that portion of the Option to which the SAR relates.

 

1.11.
Dividend Equivalent Right

 

“Dividend
Equivalent Right” means the right, subject to the terms and conditions prescribed by the Committee, of a Participant to receive
(or have credited) cash, shares or other property in amounts equivalent to the cash, shares or other property dividends declared on shares
of Common Stock with respect to specified Performance Units or Common Shares subject to an Other Equity-Based Award, as determined by
the Committee, in its sole discretion. The Committee shall provide that Dividend Equivalent Rights (if any) payable with respect to any
award that does not vest or become exercisable solely on account of continued employment or service shall be distributed only when, and
to the extent that, the underlying award is vested and also may provide that Dividend Equivalent Rights (if any) shall be deemed to have
been reinvested in additional shares of Common Stock or otherwise reinvested.

 

1.12.
Exchange Act

 

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

 

    	2

     

    

 

1.13.
Fair Market Value

 

“Fair
Market Value” means, on any given date, the reported “closing” price of a share of Common Stock on the Nasdaq Stock
Exchange. If, on any given date, the Common Stock is not listed for trading on the Nasdaq Stock Exchange, then Fair Market Value shall
be the “closing” price of a share of Common Stock on such other exchange on which the Common Stock is listed for trading
or, if the Common Stock is not listed on any exchange, the amount determined by the Committee using any reasonable method in good faith
and in accordance with the regulations under Section 409A of the Code.

 

1.14.
Incentive Award

 

“Incentive
Award” means an award under Article XI which, subject to the terms and conditions prescribed by the Committee, entitles the Participant
to receive a payment from the Company or an Affiliate.

 

1.15.
Initial Value

 

“Initial
Value” means, with respect to a Corresponding SAR, the option price per share of the related Option and, with respect to a SAR
granted independently of an Option, the price per share of Common Stock as determined by the Committee on the date of grant; provided,
however, that the price shall not be less than the Fair Market Value on the date of grant.

 

1.16.
Non-Employee Director

 

“Non-Employee
Director” means a member of the Board who is not an employee of the Company or an Affiliate.

 

1.17.
Operating Partnership

 

“Operating
Partnership” means Strawberry Fields Realty LP.

 

1.18.
Option

 

“Option”
means a share option that entitles the holder to purchase from the Company a stated number of shares of Common Stock at the price set
forth in an Agreement.

 

1.19.
Other Equity-Based Award

 

“Other
Equity-Based Award” means any award other than an Option, SAR, Incentive Award, a Performance Unit award or a Stock Award which,
subject to such terms and conditions as may be prescribed by the Committee, entitles a Participant to receive shares of Common Stock
or rights or units valued in whole or in part by reference to, or otherwise based on, shares of Common Stock (including securities convertible
into Common Stock) or other equity interests.

 

1.20.
Participant

 

“Participant”
means an employee or officer of the Company or an Affiliate, a member of the Board, or an individual who provides significant services
to the Company or an Affiliate (including an individual who provides services to the Company or an Affiliate by virtue of employment
with, or providing services to, the Operating Partnership), and who satisfies the requirements of Article IV and, in accordance with
the terms of the Plan, is selected by the Committee to receive an award of Performance Units, a Stock Award, an Incentive Award, Option,
SAR, Other Equity-Based Award or a combination thereof.

 

    	3

     

    

 

1.21.
Performance Goal

 

“Performance
Goal” means a performance objective that is stated with respect to one or more of the following, alone or in combination: funds
from operations; adjusted funds from operations; earnings before interest, taxes, depreciation and amortization (“EBITDA”);
adjusted EBITDA; return on capital assets, development, investment or equity; total earnings; revenues or sales; earnings per share of
Common Stock; return on capital; Fair Market Value; total stockholder return; cash flow; acquisitions or strategic transactions; operating
income (loss); gross or net profit levels; productivity; expenses; margins; operating efficiency; working capital; portfolio or regional
occupancy rates; or performance or yield on development or redevelopment activities, same store NOI growth, balance sheet metrics such
as leverage ratio, debt/EBITDA, and fixed charge coverage.

 

A
Performance Goal may be expressed on an absolute basis or relative to the performance of one or more peer companies or a published index.
When establishing Performance Goals, the Committee may exclude any or all special, unusual or extraordinary items as determined under
U.S. generally accepted accounting principles, including, without limitation, the charges or costs associated with restructurings of
the Company, discontinued operations, other unusual or non-recurring items and the cumulative effects of accounting changes.

 

1.22.
Performance Units

 

“Performance
Units” means an award, in the amount determined by the Committee, stated with reference to a specified number of shares of Common
Stock or other securities or property, that in accordance with the terms of an Agreement entitles the holder to receive a payment for
each specified unit equal to the Fair Market Value of the Common Stock on the date of payment.

 

1.23.
Plan

 

“Plan”
means this Strawberry Fields REIT, Inc. 2021 Equity Incentive Plan.

 

1.24.
SAR

 

“SAR”
means a stock appreciation right that in accordance with the terms of an Agreement entitles the holder to receive, with respect to each
share of Common Stock encompassed by the exercise of the SAR, the excess, if any, of the Fair Market Value at the time of exercise over
the Initial Value. References to “SARs” include both Corresponding SARs and SARs granted independently of Options, unless
the context requires otherwise.

 

1.25.
Stock Award

 

“Stock
Award” means shares of Common Stock awarded to a Participant under Article VIII.

 

1.26.
Ten Percent Stockholder

 

“Ten
Percent Stockholder” means any individual owning more than ten percent (10%) of the total combined voting power of all classes
of shares of the Company or of a “parent corporation” or “subsidiary corporation” (as such terms are defined
in Section 424 of the Code) of the Company. An individual shall be considered to own any voting shares owned (directly or indirectly)
by or for his or her brothers, sisters, spouse, ancestors or lineal descendants and shall be considered to own proportionately any voting
shares owned (directly or indirectly) by or for a corporation, partnership, estate or trust of which such individual is a stockholder,
partner or beneficiary.

 

ARTICLE
II

PURPOSES

 

The
Plan is intended to assist the Company and its Affiliates in recruiting and retaining individuals and other service providers with ability
and initiative by enabling such persons to participate in the future success of the Company and its Affiliates and to associate their
interests with those of the Company and its stockholders. The Plan is intended to permit the grant of both Options qualifying under Section
422 of the Code (“incentive stock options”) and Options not so qualifying, and the grant of SARs, Stock Awards, Incentive
Awards, Performance Units, and Other Equity-Based Awards in accordance with the Plan and any procedures that may be established by the
Committee. No Option that is intended to be an incentive stock option shall be invalid for failure to qualify as an incentive stock option.
The proceeds received by the Company from the sale of Common Stock pursuant to this Plan shall be used for general corporate purposes.

 

    	4

     

    

 

ARTICLE
III

ADMINISTRATION

 

The
Plan shall be administered by the Committee. The Committee shall have authority to grant SARs, Stock Awards, Incentive Awards, Performance
Units, Options and Other Equity-Based Awards upon such terms (not inconsistent with the provisions of this Plan), as the Committee may
consider appropriate. Such terms may include conditions (in addition to those contained in this Plan), on the exercisability of all or
any part of an Option or SAR or on the transferability or forfeitability of a Stock Award, an Incentive Award, an award of Performance
Units or an Other Equity-Based Award. Notwithstanding any such conditions, the Committee may, in its discretion, accelerate the time
at which any Option or SAR may be exercised, or the time at which a Stock Award, an Incentive Award or Other Equity-Based Award may become
transferable or nonforfeitable or the time at which an Other Equity-Based Award, an Incentive Award or an award of Performance Units
may be settled. In addition, the Committee shall have complete authority to interpret all provisions of this Plan; to prescribe the form
of Agreements; to adopt, amend, and rescind rules and regulations pertaining to the administration of the Plan (including rules and regulations
that require or allow Participants to defer the payment of benefits under the Plan); and to make all other determinations necessary or
advisable for the administration of this Plan. Additionally, the Committee shall have the sole authority to amend the terms of any outstanding
award, including the discretionary authority to extend the post-termination exercise period of Options and to allow Participants to satisfy
withholding tax obligations by electing to have the Company withhold from the shares of Common Stock or cash to be issued upon exercise
or vesting of an award the number of shares of Common Stock or cash having a Fair Market Value equal to the amount required to be withheld
up to the maximum individual income tax rate in the applicable jurisdiction. Committee’s determinations under the Plan (including
without limitation, determinations of the individuals to receive awards under the Plan, the form, amount and timing of such awards, the
terms and provisions of such awards and the Agreements) need not be uniform and may be made by the Committee selectively among individuals
who receive, or are eligible to receive, awards under the Plan, whether or not such persons are similarly situated. The express grant
in the Plan of any specific power to the Committee shall not be construed as limiting any power or authority of the Committee. Any decision
made, or action taken, by the Committee in connection with the administration of this Plan shall be final and conclusive. The members
of the Committee shall not be liable for any act done in good faith with respect to this Plan or any Agreement, Option, SAR, Stock Award,
Incentive Award, Other Equity-Based Award or award of Performance Units. All expenses of administering this Plan shall be borne by the
Company.

 

The
Committee, in its discretion, may delegate to a designated officer of the Company all or part of the Committee’s authority and
duties with respect to grants and awards to individuals who are not subject to the reporting and other provisions of Section 16 of the
Exchange Act. The Committee may revoke or amend the terms of a delegation at any time but such action shall not invalidate any prior
actions of the Committee’s delegate that were consistent with the terms of the Plan and the Committee’s prior delegation.
References to the “Committee” in the Plan include the Committee’s delegate to the extent consistent with the Committee’s
delegation.

 

ARTICLE
IV

ELIGIBILITY

 

Any
employee of the Company or an Affiliate (including a trade or business that becomes an Affiliate after the adoption of this Plan) and
any member of the Board is eligible to participate in this Plan; provided that Incentive Awards may not be granted to a Non-Employee
Director. In addition, any other individual who provides significant services to the Company or an Affiliate (including an individual
who provides services to the Company or an Affiliate by virtue of employment with, or providing services to, the Operating Partnership)
is eligible to participate in this Plan if the Committee, in its sole discretion, determines that the participation of such individual
is in the best interest of the Company. The Committee may also grant Options, SARs, Stock Awards, Incentive Awards, Performance Units
and Other Equity-Based Awards to an individual as an inducement to such individual becoming eligible to participate in the Plan and prior
to the date that the individual first performs services for the Company, an Affiliate or the Operating Partnership, provided that such
awards will not become vested or exercisable, and no shares of Common Stock shall be issued or other payment made to such individual
with respect to such awards prior to the date the individual first performs services for the Company, an Affiliate or the Operating Partnership.

 

    	5

     

    

 

ARTICLE
V

COMMON
STOCK SUBJECT TO PLAN

 

5.01.
Common Stock Issued

 

Upon
the award of Common Stock pursuant to a Stock Award, an Other Equity-Based Award or in settlement of an award of Performance Units or
Incentive Award, the Company may deliver to the Participant shares of Common Stock from its treasury shares or authorized but unissued
Common Stock. Upon the exercise of any Option, SAR or Other Equity-Based Award denominated in shares of Common Stock, the Company may
deliver to the Participant (or the Participant’s broker if the Participant so directs), shares of Common Stock from its treasury
shares or authorized but unissued Common Stock.

 

5.02.
Aggregate Limit

 

(a)
The maximum aggregate number of Common Shares that may be issued under this Plan pursuant to the exercise of Options and SARs, the grant
of Stock Awards or Other Equity-Based Awards and the settlement of Performance Units and Incentive Awards is 250,000 shares, all of which
may be subject to incentive stock option treatment.

 

(b)
The maximum number of shares of Common Stock that may be issued under this Plan in accordance with Section 5.02(a) shall be subject to
adjustment as provided in Article XII.

 

(c)
The maximum number of shares of Common Stock that may be issued upon the exercise of Options that are incentive stock options or Corresponding
SARs that are related to incentive stock options shall be determined in accordance with Sections 5.02(a) and 5.02(b).

 

5.03.
Non-Employee Director Grant Limit

 

A
Non-Employee Director may not be granted Options, SARs, Stock Awards, Performance Units and Other Equity-Based Awards in any calendar
year with respect to that number of shares of Common Stock that has a Fair Market Value on the date of the award in excess of $500,000.
For purposes of this Section 5.03, the value of an Option or a SAR will be the fair market value of such award on the date of grant as
determined by the Committee using a Black-Scholes option pricing model or any other reasonable valuation method approved by the Committee.
For purposes of this Section 5.03, an award of an Option and Corresponding SAR shall be treated as a single award.

 

5.04.
Reallocation of Shares

 

If
any award or grant under the Plan expires, is forfeited or is terminated without having been exercised or is paid in cash without delivery
of shares of Common Stock, then any shares of Common Stock covered by such lapsed, cancelled, expired, unexercised or cash-settled portion
of such award or grant shall be available for the grant of other Options, SARs, Stock Awards, Other Equity-Based Awards and settlement
of Performance Units and Incentive Awards under this Plan. Any shares of Common Stock tendered or withheld to satisfy the grant or exercise
price or tax withholding obligation pursuant to any award shall be available for future grants or awards.

 

    	6

     

    

 

ARTICLE
VI

OPTIONS

 

6.01.
Award

 

In
accordance with the provisions of Article IV, the Committee will designate each individual to whom an Option is to be granted and, subject
to Section 5.03, will specify the number of shares of Common Stock covered by such awards. Notwithstanding anything herein to the contrary,
Options that are intended to be incentive stock options may be granted only to persons who are, as of the date of grant, common-law employees
of the Company or a subsidiary (as such term is defined in Code Sections 424(e) and (f)).

 

6.02.
Option Price

 

The
price per share of Common Stock purchased on the exercise of an Option shall be determined by the Committee on the date of grant, but
shall not be less than the Fair Market Value on the date the Option is granted. Notwithstanding the preceding sentence, the price per
share of Common Stock purchased on the exercise of any Option that is an incentive stock option granted to an individual who is a Ten
Percent Stockholder on the date such option is granted, shall not be less than one hundred ten percent (110%) of the Fair Market Value
on the date the Option is granted. Except as provided in Article XII, the price per share of an outstanding Option may not be reduced
(by amendment, cancellation and new grant or otherwise) without the approval of stockholders. In addition, without the approval of stockholders,
no payment shall be made in cancellation of an Option if, on the date of cancellation, the option price per share exceeds Fair Market
Value.

 

6.03.
Maximum Option Period

 

The
maximum period in which an Option may be exercised shall be determined by the Committee on the date of grant except that no Option shall
be exercisable after the expiration of ten years from the date such Option was granted. In the case of an incentive stock option granted
to a Participant who is a Ten Percent Stockholder on the date of grant, such Option shall not be exercisable after the expiration of
five years from the date of grant. The terms of any Option may provide that it is exercisable for a period less than such maximum period.

 

6.04.
Nontransferability

 

Except
as provided in Section 6.05, each Option granted under this Plan shall be nontransferable except by will or by the laws of descent and
distribution. In the event of any transfer of an Option (by the Participant or his transferee), the Option and any Corresponding SAR
that relates to such Option must be transferred to the same person or persons or entity or entities. Except as provided in Section 6.05,
during the lifetime of the Participant to whom the Option is granted, the Option may be exercised only by the Participant. No right or
interest of a Participant in any Option shall be liable for, or subject to, any lien, obligation, or liability of such Participant.

 

6.05.
Transferable Options

 

Section
6.04 to the contrary notwithstanding, if the Agreement provides, an Option that is not an incentive stock option may be transferred by
a Participant to the Participant’s children, grandchildren, spouse, one or more trusts for the benefit of such family members or
a partnership in which such family members are the only partners, on such terms and conditions as may be permitted under Rule 16b-3 under
the Exchange Act as in effect from time to time. The holder of an Option transferred pursuant to this Section shall be bound by the same
terms and conditions that governed the Option during the period that it was held by the Participant; provided, however, that such transferee
may not transfer the Option except by will or the laws of descent and distribution. In the event of any transfer of an Option (by the
Participant or his transferee), the Option and any Corresponding SAR that relates to such Option must be transferred to the same person
or persons or entity or entities.

 

6.06.
Employee Status

 

For
purposes of determining the applicability of Section 422 of the Code (relating to incentive stock options), or in the event that the
terms of any Option provide that it may be exercised only during employment or continued service or within a specified period of time
after termination of employment or continued service, the Committee may decide to what extent leaves of absence for governmental or military
service, illness, temporary disability, or other reasons shall not be deemed interruptions of continuous employment or service.

 

    	7

     

    

 

6.07.
Exercise

 

Subject
to the provisions of this Plan and the applicable Agreement, an Option may be exercised in whole at any time or in part from time to
time at such times and in compliance with such requirements as the Committee shall determine; provided, however, that incentive stock
options (granted under the Plan and all plans of the Company and its Affiliates) may not be first exercisable in a calendar year for
Common Shares having a Fair Market Value (determined as of the date an Option is granted) exceeding $100,000. An Option granted under
this Plan may be exercised with respect to any number of whole shares less than the full number for which the Option could be exercised.
A partial exercise of an Option shall not affect the right to exercise the Option from time to time in accordance with this Plan and
the applicable Agreement with respect to the remaining shares subject to the Option. The exercise of an Option shall result in the termination
of any Corresponding SAR to the extent of the number of shares with respect to which the Option is exercised.

 

6.08.
Payment

 

Subject
to rules established by the Committee and unless otherwise provided in an Agreement, payment of all or part of the Option price may be
made in cash, certified check, by tendering shares of Common Stock or by attestation of ownership of shares of Common Stock or by a broker-assisted
cashless exercise. If shares of Common Stock are used to pay all or part of the Option price, the sum of the cash and cash equivalent
and the Fair Market Value (determined on the date of exercise) of the shares surrendered must not be less than the Option price of the
shares for which the Option is being exercised.

 

6.09.
Stockholder Rights

 

No
Participant shall have any rights as a stockholder with respect to shares of Common Stock subject to an Option until the date of exercise
of such Option.

 

6.10.
Disposition of Shares

 

A
Participant shall notify the Company of any sale or other disposition of shares of Common Stock acquired pursuant to an Option that was
an incentive stock option if such sale or disposition occurs (i) within two years of the grant of an Option or (ii) within one year of
the issuance of the shares of Common Stock to the Participant. Such notice shall be in writing and directed to the Secretary of the Company.

 

ARTICLE
VII

SARS

 

7.01.
Award

 

In
accordance with the provisions of Article IV, the Committee will designate each individual to whom SARs are to be granted and will, subject
to Section 5.03, specify the number of shares of Common Stock covered by such awards.

 

7.02.
Maximum SAR Period

 

The
term of each SAR shall be determined by the Committee on the date of grant, except that no SAR shall have a term of more than ten years
from the date of grant. In the case of a Corresponding SAR that is related to an incentive stock option granted to a Participant who
is a Ten Percent Stockholder on the date of grant, such Corresponding SAR shall not be exercisable after the expiration of five years
from the date of grant. The terms of any SAR may provide that it has a term that is less than such maximum period.

 

7.03.
Nontransferability

 

Except
as provided in Section 7.04, each SAR granted under this Plan shall be nontransferable except by will or by the laws of descent and distribution.
In the event of any such transfer, a Corresponding SAR and the related Option must be transferred to the same person or persons or entity
or entities. Except as provided in Section 7.04, during the lifetime of the Participant to whom the SAR is granted, the SAR may be exercised
only by the Participant. No right or interest of a Participant in any SAR shall be liable for, or subject to, any lien, obligation, or
liability of such Participant.

 

    	8

     

    

 

7.04.
Transferable SARs

 

Section
7.03 to the contrary notwithstanding, if the Agreement provides, a SAR, other than a Corresponding SAR that is related to an incentive
stock option, may be transferred by a Participant to the Participant’s children, grandchildren, spouse, one or more trusts for
the benefit of such family members or a partnership in which such family members are the only partners, on such terms and conditions
as may be permitted under Rule 16b-3 under the Exchange Act as in effect from time to time. The holder of a SAR transferred pursuant
to this Section shall be bound by the same terms and conditions that governed the SAR during the period that it was held by the Participant;
provided, however, that such transferee may not transfer the SAR except by will or the laws of descent and distribution. In the event
of any transfer of a Corresponding SAR (by the Participant or his transferee), the Corresponding SAR and the related Option must be transferred
to the same person or person or entity or entities.

 

7.05.
Exercise

 

Subject
to the provisions of this Plan and the applicable Agreement, a SAR may be exercised in whole at any time or in part from time to time
at such times and in compliance with such requirements as the Committee shall determine; provided, however, that a Corresponding SAR
that is related to an incentive stock option may be exercised only to the extent that the related Option is exercisable and only when
the Fair Market Value exceeds the option price of the related Option. A SAR granted under this Plan may be exercised with respect to
any number of whole shares less than the full number for which the SAR could be exercised. A partial exercise of a SAR shall not affect
the right to exercise the SAR from time to time in accordance with this Plan and the applicable Agreement with respect to the remaining
shares subject to the SAR. The exercise of a Corresponding SAR shall result in the termination of the related Option to the extent of
the number of shares with respect to which the SAR is exercised.

 

7.06.
Employee Status

 

If
the terms of any SAR provide that it may be exercised only during employment or continued service or within a specified period of time
after termination of employment or continued service, the Committee may decide to what extent leaves of absence for governmental or military
service, illness, temporary disability or other reasons shall not be deemed interruptions of continuous employment or service.

 

7.07.
Settlement

 

At
the Committee’s discretion, the amount payable as a result of the exercise of a SAR may be settled in cash, Common Stock, or a
combination of cash and Common Stock. No fractional share will be deliverable upon the exercise of a SAR but a cash payment will be made
in lieu thereof.

 

7.08.
Stockholder Rights

 

No
Participant shall, as a result of receiving a SAR, have any rights as a stockholder of the Company or any Affiliate until the date that
the SAR is exercised and then only to the extent that the SAR is settled by the issuance of Common Stock.

 

7.09.
No Reduction of Initial Value

 

Except
as provided in Article XII, the Initial Value of an outstanding SAR may not be reduced (by amendment, cancellation and new grant or otherwise)
without the approval of stockholders. In addition, without the approval of stockholders, no payment shall be made in cancellation of
a SAR if, on the date of cancellation, the Initial Value exceeds Fair Market Value.

 

    	9

     

    

 

ARTICLE
VIII

STOCK
AWARDS

 

8.01.
Award

 

In
accordance with the provisions of Article IV, the Committee will designate each individual to whom a Stock Award is to be made and will,
subject to Section 5.03, specify the number of shares of Common Stock covered by such awards.

 

8.02.
Vesting

 

The
Committee, on the date of the award, may prescribe that a Participant’s rights in a Stock Award shall be forfeitable or otherwise
restricted for a period of time or subject to such conditions as may be set forth in the Agreement. By way of example and not of limitation,
the Committee may prescribe that a Participant’s rights in a Stock Award shall be subject to a requirement that the Participant
complete a specified period of employment or service with the Company or an Affiliate or shall be forfeitable or otherwise restricted
subject to the attainment of objectives stated with reference to the Company’s, an Affiliate’s or a business unit’s
attainment of objectives stated with respect to performance criteria established by the Committee, including the attainment of objectives
stated with respect to one or more Performance Goals.

 

8.03.
Employee Status

 

In
the event that the terms of any Stock Award provide that shares may become transferable and nonforfeitable thereunder only after completion
of a specified period of employment or continuous service, the Committee may decide in each case to what extent leaves of absence for
governmental or military service, illness, temporary disability, or other reasons shall not be deemed interruptions of continuous employment
or service.

 

8.04.
Stockholder Rights

 

Unless
otherwise specified in accordance with the applicable Agreement, while the shares of Common Stock granted pursuant to the Stock Award
may be forfeited or are nontransferable, a Participant will have all rights of a stockholder with respect to a Stock Award, including
the right to receive dividends and vote the shares; provided, however, that dividends payable on shares of Common Stock subject to a
Stock Award that does not become nonforfeitable and transferable solely on account of continued employment or service, shall be distributed
only when, and to the extent that, the underlying Stock Award is nonforfeitable and transferable and the Committee may provide that such
dividends shall be deemed to have been reinvested in additional shares of Common Stock. During the period that the shares of Common Stock
granted pursuant to the Stock Award may be forfeited or are nontransferable (i) a Participant may not sell, transfer, pledge, exchange,
hypothecate, or otherwise dispose of shares granted pursuant to a Stock Award, (ii) the Company shall retain custody of any certificates
evidencing shares granted pursuant to a Stock Award, and (iii) the Participant will deliver to the Company a stock power, endorsed in
blank, with respect to each Stock Award. The limitations set forth in the preceding sentence shall not apply after the shares granted
under the Stock Award are transferable and are no longer forfeitable.

 

ARTICLE
IX

PERFORMANCE
UNIT AWARDS

 

9.01.
Award

 

In
accordance with the provisions of Article IV, the Committee will designate each individual to whom an award of Performance Units is to
be made and will, subject to Section 5.03, specify the number of shares of Common Stock or other securities or property covered by such
awards. The Committee also will specify whether Dividend Equivalent Rights are granted in conjunction with the Performance Units.

 

    	10

     

    

 

9.02.
Earning the Award

 

The
Committee, on the date of the grant of an award, may prescribe that the Performance Units will be earned, and the Participant will be
entitled to receive payment pursuant to the award of Performance Units, upon the satisfaction of certain conditions. By way of example,
and not of limitation, the Committee may prescribe that payment of an award of Performance Units will be subject to a requirement that
the Participant complete a specified period of employment or service with the Company or an Affiliate or the attainment of objectives
stated with reference to the Company’s, an Affiliate’s or a business unit’s attainment of objectives stated with respect
to performance criteria established by the Committee, including the attainment of objectives stated with respect to one or more Performance
Goals.

 

9.03.
Payment

 

In
the discretion of the Committee, the amount payable when an award of Performance Units is earned may be settled in cash, by the issuance
of Common Stock, by the delivery of other securities or property or a combination thereof. A fractional share of Common Stock shall not
be deliverable when an award of Performance Units is earned, but a cash payment will be made in lieu thereof. The amount payable when
an award of Performance Units is earned shall be paid in a lump sum.

 

9.04.
Stockholder Rights

 

A
Participant, as a result of receiving an award of Performance Units, shall not have any rights as a stockholder until, and then only
to the extent that, the award of Performance Units is earned and settled in shares of Common Stock. After an award of Performance Units
is earned and settled in shares of Common Stock, a Participant will have all the rights of a stockholder as described in Section 8.04.

 

9.05.
Nontransferability

 

Except
as provided in Section 9.06, Performance Units granted under this Plan shall be nontransferable except by will or by the laws of descent
and distribution. No right or interest of a Participant in any Performance Units shall be liable for, or subject to, any lien, obligation,
or liability of such Participant.

 

9.06.
Transferable Performance Units

 

Section
9.05 to the contrary notwithstanding, if the Agreement provides, an award of Performance Units may be transferred by a Participant to
the Participant’s children, grandchildren, spouse, one or more trusts for the benefit of such family members or a partnership in
which such family members are the only partners, on such terms and conditions as may be permitted under Rule 16b-3 under the Exchange
Act as in effect from time to time. The holder of Performance Units transferred pursuant to this Section shall be bound by the same terms
and conditions that governed the Performance Units during the period that they were held by the Participant; provided, however that such
transferee may not transfer Performance Units except by will or the laws of descent and distribution.

 

9.07.
Employee Status

 

In
the event that the terms of any Performance Unit award provide that no payment will be made unless the Participant completes a stated
period of employment or continued service, the Committee may decide to what extent leaves of absence for government or military service,
illness, temporary disability, or other reasons shall not be deemed interruptions of continuous employment or service.

 

    	11

     

    

 

ARTICLE
X

OTHER
EQUITY–BASED AWARDS

 

10.01.
Award

 

In
accordance with the provisions of Article IV, the Committee will designate each individual to whom an Other Equity-Based Award is to
be made and will, subject to Section 5.03, specify the number of shares of Common Stock or other equity interests covered by such awards.
The Committee also will specify whether Dividend Equivalent Rights are granted in conjunction with the Other Equity-Based Award.

 

10.02.
Terms and Conditions

 

The
Committee, at the time an Other Equity-Based Award is made, shall specify the terms and conditions which govern the award. The terms
and conditions of an Other Equity-Based Award may prescribe that a Participant’s rights in the Other Equity-Based Award shall be
forfeitable, nontransferable or otherwise restricted for a period of time or subject to such other conditions as may be determined by
the Committee, in its discretion and set forth in the Agreement, including the attainment of objectives stated with respect to one or
more Performance Goals. Other Equity-Based Awards may be granted to Participants, either alone or in addition to other awards granted
under the Plan, and Other Equity-Based Awards may be granted in the settlement of other Awards granted under the Plan.

 

10.03.
Payment or Settlement

 

Other
Equity-Based Awards valued in whole or in part by reference to, or otherwise based on, shares of Common Stock, shall be payable or settled
in shares of Common Stock, cash or a combination of Common Stock and cash, as determined by the Committee in its discretion. Other Equity-Based
Awards denominated as equity interests other than Common Stock may be paid or settled in shares or units of such equity interests or
cash or a combination of both as determined by the Committee in its discretion.

 

10.04.
Employee Status

 

If
the terms of any Other Equity-Based Award provides that it may be earned or exercised only during employment or continued service or
within a specified period of time after termination of employment or continued service, the Committee may decide to what extent leaves
of absence for governmental or military service, illness, temporary disability or other reasons shall not be deemed interruptions of
continuous employment or service.

 

10.05.
Stockholder Rights

 

A
Participant, as a result of receiving an Other Equity-Based Award, shall not have any rights as a stockholder until, and then only to
the extent that, shares of Common Stock are issued under the Other Equity-Based Award.

 

ARTICLE
XI

INCENTIVE
AWARDS

 

11.01.
Award

 

In
accordance with the provisions of Article IV, the Committee will designate each individual to whom an Incentive Award is to be made and
the amount payable under each Incentive Award. In accordance with Article IV and notwithstanding the preceding sentence, Incentive Awards
may not be granted to a Non-Employee Director.

 

11.02.
Terms and Conditions

 

The
Committee, at the time an Incentive Award is made, shall specify the terms and conditions that govern the award. Such terms and conditions
may prescribe that the Incentive Award shall be earned only to the extent that the Participant, the Company or an Affiliate, achieves
objectives stated with reference to one or more performance measures or criteria prescribed by the Committee, including the attainment
of objectives stated with respect to one or more Performance Goals. Such terms and conditions also may include other limitations on the
payment of Incentive Awards including, by way of example and not of limitation, requirements that the Participant complete a specified
period of employment or service with the Company or an Affiliate or that the Company, an Affiliate, as a prerequisite to payment under
an Incentive Award.

 

    	12

     

    

 

11.03.
Nontransferability

 

Incentive
Awards granted under this Plan shall be nontransferable except by will or by the laws of descent and distribution. No right or interest
of a Participant in an Incentive Award shall be liable for, or subject to, any lien, obligation, or liability of such Participant.

 

11.04.
Employee Status

 

If
the terms of an Incentive Award provide that a payment will be made thereunder only if the Participant completes a stated period of employment
or continued service the Committee may decide to what extent leaves of absence for governmental or military service, illness, temporary
disability or other reasons shall not be deemed interruptions of continuous employment or service.

 

11.05.
Settlement

 

An
Incentive Award that is earned shall be settled with a single lump sum payment which may be in cash, shares of Common Stock or a combination
of cash and Common Stock, as determined by the Committee.

 

11.06.
Stockholder Rights

 

No
participant shall, as a result of receiving an Incentive Award, have any rights as a stockholder of the Company or an Affiliate until
the date that the Incentive Award is settled and then only to the extent that the Incentive Award is settled by the issuance of Common
Stock.

 

ARTICLE
XII

ADJUSTMENT
UPON CHANGE IN COMMON STOCK

 

The
maximum number of shares of Common Stock as to which Options, SARs, Performance Units, Stock Awards and Other Equity-Based Awards may
be granted and the terms of outstanding Stock Awards, Options, SARs, Incentive Awards, Performance Units and Other Equity-Based Awards
shall be adjusted as determined by the Board in the event that (i) the Company (a) effects one or more nonreciprocal transactions between
the Company and its stockholders such as a share dividend, extra-ordinary cash dividend, share split-up, subdivision or consolidation
of shares that affects the number of shares or kind of Common Stock (or other securities of the Company) or the Fair Market Value (or
the value of other Company securities) and causes a change in the Fair Market Value of the Common Stock subject to outstanding awards
or (b) engages in a transaction to which Section 424 of the Code applies or (ii) there occurs any other event which, in the judgment
of the Board necessitates such action. Any determination made under this Article XII by the Board shall be final and conclusive.

 

The
issuance by the Company of shares of any class, or securities convertible into shares of any class, for cash or property, or for labor
or services, either upon direct sale or upon the exercise of rights or warrants to subscribe therefor, or upon conversion of shares or
obligations of the Company convertible into such shares or other securities, shall not affect, and no adjustment by reason thereof shall
be made with respect to, the maximum number of shares as to which Options, SARs, Performance Units, Stock Awards and Other Equity-Based
Awards may be granted or the terms of outstanding Stock Awards, Options, SARs, Incentive Awards, Performance Shares or Other Equity-Based
Awards.

 

The
Committee may grant Stock Awards, Options, SARs, Performance Units or Other Equity-Based Awards in substitution for performance shares,
phantom shares, stock awards, stock options, stock appreciation rights, or similar awards held by an individual who becomes an employee
of the Company or an Affiliate in connection with a transaction described in the first paragraph of this Article XII. Notwithstanding
any provision of the Plan (other than the limitation of Section 5.02), the terms of such substituted Stock Awards, SARs, Other Equity-Based
Awards, Options or Performance Units shall be as the Committee, in its discretion, determines is appropriate.

 

    	13

     

    

 

ARTICLE
XIII

COMPLIANCE
WITH LAW AND APPROVAL OF REGULATORY BODIES

 

No
Option or SAR shall be exercisable, no Common Stock shall be issued, no certificates for Common Stock shall be delivered, and no payment
shall be made under this Plan except in compliance with all applicable federal and state laws and regulations (including, without limitation,
withholding tax requirements), any listing agreement to which the Company is a party, and the rules of all domestic stock exchanges on
which the Company’s shares may be listed. The Company shall have the right to rely on an opinion of its counsel as to such compliance.
Any certificate issued to evidence Common Stock when a Stock Award is granted, a Performance Unit, Incentive Award or Other Equity-Based
Award is settled or for which an Option or SAR is exercised may bear such legends and statements as the Committee may deem advisable
to assure compliance with federal and state laws and regulations. No Option or SAR shall be exercisable, no Stock Award or Performance
Unit shall be granted, no Common Stock shall be issued, no certificate for Common Stock shall be delivered, and no payment shall be made
under this Plan until the Company has obtained such consent or approval as the Committee may deem advisable from regulatory bodies having
jurisdiction over such matters.

 

ARTICLE
XIV

GENERAL
PROVISIONS

 

14.01.
Effect on Employment and Service

 

Neither
the adoption of this Plan, its operation, nor any documents describing or referring to this Plan (or any part thereof), shall confer
upon any individual any right to continue in the employ or service of the Company or an Affiliate or in any way affect any right and
power of the Company or an Affiliate to terminate the employment or service of any individual at any time with or without assigning a
reason therefor.

 

14.02.
Unfunded Plan

 

This
Plan, insofar as it provides for grants, shall be unfunded, and the Company shall not be required to segregate any assets that may at
any time be represented by grants under this Plan. Any liability of the Company to any person with respect to any grant under this Plan
shall be based solely upon any contractual obligations that may be created pursuant to this Plan. No such obligation of the Company shall
be deemed to be secured by any pledge of, or other encumbrance on, any property of the Company.

 

14.03.
Rules of Construction

 

Headings
are given to the articles and sections of this Plan solely as a convenience to facilitate reference. The reference to any statute, regulation,
or other provision of law shall be construed to refer to any amendment to or successor of such provision of law.

 

14.04.
Section 409A Compliance

 

All
awards made under this Plan are intended to comply with, or otherwise be exempt from, Section 409A of the Code (“Section 409A”),
after giving effect to the exemptions in Treasury Regulation sections 1.409A-1(b)(3) through (b)(12). This Plan and all Agreements shall
be administered, interpreted and construed in a manner consistent with Section 409A. If any provision of this Plan or any Agreement is
found not to comply with, or otherwise not be exempt from, the provisions of Section 409A, it shall be modified and given effect, in
the sole discretion of the Committee and without requiring the Participant’s consent, in such manner as the Committee determines
to be necessary or appropriate to comply with, or effectuate an exemption from, Section 409A. Each payment under an award granted under
this Plan shall be treated as a separate identified payment for purposes of Section 409A.

 

    	14

     

    

 

If
a payment obligation under an award or an Agreement arises on account of the Participant’s termination of employment and such payment
obligation constitutes “deferred compensation” (as defined under Treasury Regulation section 1.409A-1(b)(1), after giving
effect to the exemptions in Treasury Regulation sections 1.409A-1(b)(3) through (b)(12)), it shall be payable only after the Participant’s
“separation from service” (as defined under Treasury Regulation section 1.409A-1(h)); provided, however, that if the Participant
is a “specified employee” (as defined under Treasury Regulation section 1.409A-1(i)), any such payment that is scheduled
to be paid within six months after such separation from service shall accrue without interest and shall be paid on the first day of the
seventh month beginning after the date of the Participant’s separation from service or, if earlier, within fifteen days after the
appointment of the personal representative or executor of the Participant’s estate following the Participant’s death.

 

14.05.
Withholding Taxes

 

Each
Participant shall be responsible for satisfying any income and employment tax withholding obligations attributable to participation in
the Plan. Unless otherwise provided by the Agreement, any such withholding tax obligations may be satisfied in cash (including from any
cash payable in settlement of an award of Performance Units, SARs, Incentive Awards or Other Equity-Based Award) or a cash equivalent
acceptable to the Committee. Any statutory federal, state, district or city withholding tax obligations also may be satisfied (a) by
surrendering to the Company shares of Common Stock previously acquired by the Participant; (b) by authorizing the Company to withhold
or reduce the number of shares of Common Stock otherwise issuable to the Participant upon the exercise of an Option or SAR, the settlement
of a Performance Unit award, Incentive Award or an Other Equity-Based Award (if applicable) or the grant or vesting of a Stock Award
up to the maximum individual income tax rate in the applicable jurisdiction; or (c) by any other method as may be approved by the Committee.
If Common Stock is used to pay all or part of such withholding tax obligation, the Fair Market Value of the shares surrendered, withheld
or reduced shall be determined as of the day the tax liability arises.

 

14.06.
Return of Awards; Repayment

 

Each
Stock Award, Option, SAR, Performance Unit award, Incentive Award and Other Equity-Based Award granted under the Plan, as amended and
restated herein, is subject to the condition that the Company may require that such award be returned and that any payment made with
respect to such award must be repaid if such action is required under the terms of any Company “clawback” policy as in effect
on the date that the payment was made, on the date the award was granted or, as applicable, the date the Option or SAR was exercised
or the date the Stock Award, Performance Unit award or Other Equity-Based Award is vested or earned.

 

14.07.
Governing Law

 

The
Plan shall be governed by and construed in accordance with the laws of the State of Maryland, without giving effect to principles of
conflicts of law of such state.

 

14.08.
Indemnification

 

Each
person who is or has been a member of the Committee or the Board will be indemnified and held harmless by the Company from and against
any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or as a result
of any claim, action, suit or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action
taken, or failure to act, under the Plan. Each such person will also be indemnified and held harmless by the Company from and against
any and all amounts paid by him or her in a settlement approved by the Company, or paid by him or her in satisfaction of any judgment,
of or in a claim, action, suit or proceeding against him or her and described in the previous sentence, so long as he or she gives the
Company an opportunity, at its own expense, to handle and defend the claim, action, suit or proceeding before he or she undertakes to
handle and defend it. The foregoing right of indemnification will not be exclusive of any other rights of indemnification to which a
person who is or has been a member of the Committee or the Board may be entitled under the Company’s Articles of Amendment and
Restatement, as a matter of law, or otherwise, or any power that the Company may have to indemnify him or her or hold him or her harmless.

 

    	15

     

    

 

ARTICLE
XV

CHANGE
IN CONTROL

 

15.01.
Impact of Change in Control.

 

Upon
a Change in Control, the Committee is authorized to cause (i) outstanding Options and SARs to become fully exercisable, (ii) outstanding
Stock Awards to become transferable and nonforfeitable and (iii) outstanding Performance Units, Incentive Awards and Other Equity-Based
Awards to become earned and nonforfeitable in their entirety.

 

15.02.
Assumption Upon Change in Control.

 

In
the event of a Change in Control, the Committee, in its discretion and without the need for a Participant’s consent, may provide
that an outstanding Option, SAR, Incentive Award, Stock Award, Performance Unit or Other Equity-Based Award shall be assumed by, or a
substitute award granted by, the surviving entity in the Change in Control. Such assumed or substituted award shall be of the same type
of award as the original Option, SAR, Incentive Award, Stock Award, Performance Unit or Other Equity-Based Award being assumed or substituted.
The assumed or substituted award shall have an intrinsic value, as of the Control Change Date, that is substantially equal to the intrinsic
value of the original award (or the difference between the Fair Market Value and the option price or Initial Value in the case of Options
and SARs) as the Committee determines is equitably required and such other terms and conditions as may be prescribed by the Committee.

 

15.03.
Cash-Out Upon Change in Control.

 

In
the event of a Change in Control, the Committee, in its discretion and without the need of a Participant’s consent, may provide
that each Option, SAR, Incentive Award, Stock Award and Performance Unit and Other Equity-Based Award shall be cancelled in exchange
for a payment. The payment may be in cash, Common Stock or other securities or consideration received by stockholders in the Change in
Control transaction. The amount of the payment shall be an amount that is substantially equal to (i) the amount by which the price per
share received by stockholders in the Change in Control exceeds the option price or Initial Value in the case of an Option and SAR, or
(ii) the price per share received by stockholders for each share of Common Stock subject to a Stock Award, Performance Unit or Other
Equity-Based Award, (iii) the value of the other securities or property in which the Performance Unit or Other Equity-Based award is
denominated or (iv) the amount payable under an Incentive Award on account of meeting employment or service requirements or meeting performance
objectives (including, without limitation, Performance Goals). If the option price or Initial Value exceeds the price per share received
by stockholders in the Change in Control transaction, the Option or SAR may be cancelled under this Section 15.03 without any payment
to the Participant.

 

15.04.
Limitation of Benefits

 

The
benefits that a Participant may be entitled to receive under this Plan and other benefits that a Participant is entitled to receive under
other plans, agreements and arrangements (which, together with the benefits provided under this Plan, are referred to as “Payments”),
may constitute Parachute Payments that are subject to Sections 280G and 4999 of the Code. As provided in this Section 15.04, the Parachute
Payments will be reduced if, and only to the extent that, a reduction will allow a Participant to receive a greater Net After Tax Amount
than a Participant would receive absent a reduction.

 

The
Accounting Firm will first determine the amount of any Parachute Payments that are payable to a Participant. The Accounting Firm also
will determine the Net After Tax Amount attributable to the Participant’s total Parachute Payments.

 

The
Accounting Firm will next determine the largest amount of Payments that may be made to the Participant without subjecting the Participant
to tax under Section 4999 of the Code (the “Capped Payments”). Thereafter, the Accounting Firm will determine the Net After
Tax Amount attributable to the Capped Payments.

 

    	16

     

    

 

The
Participant will receive the total Parachute Payments or the Capped Payments, whichever provides the Participant with the higher Net
After Tax Amount. If the Participant will receive the Capped Payments, the total Parachute Payments will be reduced until the value of
the remaining Parachute Payments for purposes of Section 280G of the Code equals the Capped Payments. The reduction shall be effected
by the Committee by first reducing the amount of any benefits under this Plan or any other plan, agreement or arrangement that are not
subject to Section 409A of the Code (by reducing such benefits in the order that maximizes the reduction in value of the Parachute Payments
under Section 280G of the Code) and then by the Committee reducing the amount of any benefits under this Plan or any other plan, agreement
or arrangement that are subject to Section 409A of the Code (by reducing such benefits in the order that maximizes the reduction in the
value of the Parachute Payments under Section 280G of the Code). The Accounting Firm will notify the Participant and the Company if it
determines that the Parachute Payments must be reduced to the Capped Payments and will send the Participant and the Company a copy of
its detailed calculations supporting that determination.

 

As
a result of the uncertainty in the application of Sections 280G and 4999 of the Code at the time that the Accounting Firm makes its determinations
under this Article XV, it is possible that amounts will have been paid or distributed to the Participant that should not have been paid
or distributed under this Section 15.04 (“Overpayments”), or that additional amounts should be paid or distributed to the
Participant under this Section 15.04 (“Underpayments”). If the Accounting Firm determines, based on either the assertion
of a deficiency by the Internal Revenue Service against the Company or the Participant, which assertion the Accounting Firm believes
has a high probability of success or controlling precedent or substantial authority, that an Overpayment has been made, the Participant
must repay to the Company, without interest; provided, however, that no amount will be payable by the Participant to the Company unless,
and then only to the extent that, the repayment would either reduce the amount on which the Participant is subject to tax under Section
4999 of the Code or generate a refund of tax imposed under Section 4999 of the Code. If the Accounting Firm determines, based upon controlling
precedent or substantial authority, that an Underpayment has occurred, the Accounting Firm will notify the Participant and the Company
of that determination and the amount of that Underpayment will be paid to the Participant promptly by the Company.

 

For
purposes of this Section 15.04, the term “Accounting Firm” means the independent accounting firm engaged by the Company immediately
before the Control Change Date. For purposes of this Section 15.04, the term “Net After Tax Amount” means the amount of any
Parachute Payments or Capped Payments, as applicable, net of taxes imposed under Sections 1, 3101(b) and 4999 of the Code and any State
or local income taxes applicable to the Participant on the date of payment. The determination of the Net After Tax Amount shall be made
using the highest combined effective rate imposed by the foregoing taxes on income of the same character as the Parachute Payments or
Capped Payments, as applicable, in effect on the date of payment. For purposes of this Section 15.04, the term “Parachute Payment”
means a payment that is described in Section 280G(b)(2) of the Code, determined in accordance with Section 280G of the Code and the regulations
promulgated or proposed thereunder.

 

Notwithstanding
any other provision of this Section 15.04, a Participant’s Parachute Payments cannot exceed the Capped Amount if the Participant,
pursuant to an agreement with the Company or the terms of another plan maintained by the Company, is not entitled to receive or retain
Parachute Payments that exceed the Capped Amount.

 

ARTICLE
XVI

AMENDMENT

 

The
Board may amend or terminate this Plan at any time; provided, however, that no amendment may adversely impair the rights of a Participant
with respect to outstanding awards without the Participant’s consent. In addition, an amendment will be contingent on approval
of the Company’s stockholders if such approval is required by law or the rules of any exchange on which the Common Shares are listed
or if the amendment would materially increase the benefits accruing to Participants under the Plan, materially increase the aggregate
number of shares of Common Stock that may be issued under the Plan or materially modify the requirements as to eligibility for participation
in the Plan.

 

ARTICLE
XVII

DURATION
OF PLAN

 

No
Stock Award, Performance Unit Award, Incentive Award, Option, SAR or Other Equity-Based Award may be granted under this Plan after the
day before the tenth anniversary of the date the Board adopted this Plan. Stock Awards, Performance Unit awards, Incentive Awards, Options,
SARs and Other Equity-Based Awards granted before such date shall remain valid in accordance with their terms.

 

ARTICLE
XVIII

EFFECTIVE DATE OF PLAN

 

Options,
Stock Awards, Performance Units, Incentive Awards and Other Equity-Based Awards may be granted under this Plan on and after the date
that the Plan is adopted by the Board, provided that, this Plan shall not be effective unless it is approved by a majority of the votes
cast by the stockholders of the Company, voting either in person or by proxy, at a duly held meeting of the stockholders of the Company
within twelve months of the Plan’s adoption by the Board.

 

    	17

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