Document:

EX-4.1

 Exhibit 4.1 

META MATERIALS INC. 

2021 EQUITY INCENTIVE PLAN 

1. Purposes of the Plan. The purposes of this Plan are: 
  

	 	•	 	 to attract and retain the best available personnel for positions of substantial responsibility,

  

	 	•	 	 to provide additional incentive to Employees, Directors and Consultants, and 

 

	 	•	 	 to promote the success of the Company’s business. 

The Plan permits the grant of Incentive Stock Options, Nonstatutory Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted
Stock Units, Performance Units and Performance Shares. 
 2. Definitions. As used herein, the following definitions will apply: 

(a) “Administrator” means the Board or any of its Committees as will be administering the Plan, in accordance with
Section 4 of the Plan. 
 (b) “Applicable Laws” means the legal and regulatory requirements relating to the
administration of equity-based awards, including but not limited to the related issuance of shares of Common Stock, including but not limited to under U.S. federal and state corporate laws, U.S. federal and state securities laws, the Code, any stock
exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any non-U.S. country or jurisdiction where Awards are, or will be, granted under the Plan. 

(c) “Award” means, individually or collectively, a grant under the Plan of Options, Stock Appreciation Rights, Restricted
Stock, Restricted Stock Units, Performance Units or Performance Shares. 
 (d) “Award Agreement” means the written or
electronic agreement setting forth the terms and provisions applicable to each Award granted under the Plan. The Award Agreement is subject to the terms and conditions of the Plan. 

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

(f) “Change in Control” means the occurrence of any of the following events: 

(i) Change in Ownership of the Company. A change in the ownership of the Company which occurs on the date that any one person,
or more than one person acting as a group (“Person”), acquires ownership of the stock of the Company that, together with the stock held by such Person, constitutes more than fifty percent (50%) of the total voting power of the
stock of the Company; provided, however, that for purposes of this subsection, the acquisition of 

 
additional stock by any one Person, who is considered to own more than fifty percent (50%) of the total voting power of the stock of the Company will not be considered a Change in Control.
Further, if the stockholders of the Company immediately before such change in ownership continue to retain immediately after the change in ownership, in substantially the same proportions as their ownership of shares of the Company’s voting
stock immediately prior to the change in ownership, direct or indirect beneficial ownership of fifty percent (50%) or more of the total voting power of the stock of the Company or of the ultimate parent entity of the Company, such event shall not be
considered a Change in Control under this subsection (i). For this purpose, indirect beneficial ownership shall include, without limitation, an interest resulting from ownership of the voting securities of one or more corporations or other business
entities which own the Company, as the case may be, either directly or through one or more subsidiary corporations or other business entities; or 

(ii) Change in Effective Control of the Company. A change in the effective control of the Company which occurs on the date that a
majority of members of the Board is replaced during any twelve (12) month period by Directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election. For purposes
of this subsection (ii), if any Person is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Change in Control; or 

(iii) Change in Ownership of a Substantial Portion of the Company’s Assets. A change in the ownership of a
substantial portion of the Company’s assets which occurs on the date that any Person acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets
from the Company that have a total gross fair market value equal to or more than fifty percent (50%) of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided,
however, that for purposes of this subsection (iii), the following will not constitute a change in the ownership of a substantial portion of the Company’s assets: (A) a transfer to an entity that is controlled by the Company’s
stockholders immediately after the transfer, or (B) a transfer of assets by the Company to: (1) a stockholder of the Company (immediately before the asset transfer) in exchange for or with respect to the Company’s stock,
(2) an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Company, (3) a Person, that owns, directly or indirectly, fifty percent (50%) or more of the total
value or voting power of all the outstanding stock of the Company, or (4) an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a Person described in this subsection
(iii)(B)(3). For purposes of this subsection (iii), gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets. 

For purposes of this Section 2(f), persons will be considered to be acting as a group if they are owners of a corporation that enters
into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company. 
 Notwithstanding the
foregoing, a transaction will not be deemed a Change in Control unless the transaction qualifies as a change in control event within the meaning of Code Section 409A, as it has been and may be amended from time to time, and any proposed or
final Treasury Regulations and Internal Revenue Service guidance that has been promulgated or may be promulgated thereunder from time to time. 

  
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 Further and for the avoidance of doubt, a transaction will not constitute a Change in
Control if: (i) its sole purpose is to change the jurisdiction of the Company’s incorporation, or (ii) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held
the Company’s securities immediately before such transaction. 
 (g) “Code” means the Internal Revenue Code of 1986, as
amended. Reference to a specific section of the Code or regulation thereunder shall include such section or regulation, any valid regulation promulgated under such section, and any comparable provision of any future legislation or regulation
amending, supplementing or superseding such section or regulation. 
 (h) “Committee” means a committee of Directors or of
other individuals satisfying Applicable Laws appointed by the Board, or by a duly authorized committee of the Board, in accordance with Section 4 hereof. 

(i) “Common Stock” means the common stock of the Company. 

(j) “Company” means Meta Materials Inc., a Delaware corporation, or any successor thereto. 

(k) “Consultant” means any natural person, including an advisor, engaged by the Company or a Parent or Subsidiary to render
bona fide services to such entity, provided the services (i) are not in connection with the offer or sale of securities in a capital-raising transaction, and (ii) do not directly promote or maintain a market for the Company’s
securities, in each case, within the meaning of Form S-8 promulgated under the Securities Act, and provided further, that a Consultant will include only those persons to whom the issuance of Shares may be
registered under Form S-8 promulgated under the Securities Act. 
 (l) “Director”
means a member of the Board. 
 (m) “Disability” means total and permanent disability as defined in Code
Section 22(e)(3), provided that in the case of Awards other than Incentive Stock Options, the Administrator in its discretion may determine whether a permanent and total disability exists in accordance with uniform and non-discriminatory standards adopted by the Administrator from time to time. 
 (n)
“Employee” means any person, including Officers and Directors, employed by the Company or any Parent or Subsidiary of the Company. Neither service as a Director nor payment of a director’s fee by the Company will be sufficient
to constitute “employment” by the Company. 
 (o) “Exchange Act” means the Securities Exchange Act of 1934, as
amended. 

  
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 (p) “Exchange Program” means a program under which (i) outstanding
Awards are surrendered or cancelled in exchange for awards of the same type (which may have higher or lower exercise prices and different terms), awards of a different type, and/or cash, (ii) Participants would have the opportunity to transfer
any outstanding Awards to a financial institution or other person or entity selected by the Administrator, and/or (iii) the exercise price of an outstanding Award is reduced or increased. The Administrator will determine the terms and
conditions of any Exchange Program in its sole discretion. 
 (q) “Fair Market Value” means, as of any date, the value of
Common Stock determined as follows: 
 (i) If the Common Stock is listed on any established stock exchange or a national market system
(other than an over-the counter market, which will not be considered an established stock exchange of national market system for the purposes of this definition), including without limitation the New York
Stock Exchange, the Nasdaq Global Select Market, the Nasdaq Global Market or the Nasdaq Capital Market of The Nasdaq Stock Market, its Fair Market Value will be the closing sales price for such stock (or, if no closing sales price was reported on
that date, as applicable, on the last trading date such closing sales price was reported) as quoted on such exchange or system on the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems
reliable; 
 (ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair
Market Value of a Share will be the mean between the high bid and low asked prices for the Common Stock on the day of determination (or, if no bids and asks were reported on that date, as applicable, on the last trading date such bids and asks were
reported), as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
 (iii) In the absence
of an established market for the Common Stock, the Fair Market Value will be determined in good faith by the Administrator. 
 (r)
“Fiscal Year” means the fiscal year of the Company. 
 (s) “Incentive Stock Option” means an Option that by
its terms qualifies and is otherwise intended to qualify as an incentive stock option within the meaning of Code Section 422 and the regulations promulgated thereunder. 

(t) “Nonstatutory Stock Option” means an Option that by its terms does not qualify or is not intended to qualify as an
Incentive Stock Option. 
 (u) “Officer” means a person who is an officer of the Company within the meaning of
Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
 (v) “Option” means a stock
option granted pursuant to the Plan. 
 (w) “Outside Director” means a Director who is not an Employee. 

(x) “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Code
Section 424(e). 

  
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 (y) “Participant” means the holder of an outstanding Award. 

(z) “Performance Share” means an Award denominated in Shares which may be earned in whole or in part upon attainment of
performance goals or other vesting criteria as the Administrator may determine pursuant to Section 10. 
 (aa) “Performance
Unit” means an Award which may be earned in whole or in part upon attainment of performance goals or other vesting criteria as the Administrator may determine and which may be settled for cash, Shares or other securities or a combination of
the foregoing pursuant to Section 10. 
 (bb) “Period of Restriction” means the period during which the transfer of
Shares of Restricted Stock are subject to restrictions and therefore, the Shares are subject to a substantial risk of forfeiture. Such restrictions may be based on the passage of time, the achievement of target levels of performance, or the
occurrence of other events as determined by the Administrator. 
 (cc) “Plan” means this 2021 Equity Incentive Plan. 

(dd) “Restricted Stock” means Shares issued pursuant to an Award of Restricted Stock under Section 8 of the Plan, or
issued pursuant to the early exercise of an Option. 
 (ee) “Restricted Stock Unit” means a bookkeeping entry representing
an amount equal to the Fair Market Value of one Share, granted pursuant to Section 9. Each Restricted Stock Unit represents an unfunded and unsecured obligation of the Company. 

(ff) “Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion is being
exercised with respect to the Plan. 
 (gg) “Section 16(b)” means Section 16(b) of the Exchange
Act. 
 (hh) “Securities Act” means the Securities Act of 1933, as amended. 

(ii) “Service Provider” means an Employee, Director or Consultant. 

(jj) “Share” means a share of the Common Stock, as adjusted in accordance with Section 15 of the Plan. 

(kk) “Stock Appreciation Right” means an Award, granted alone or in connection with an Option, that pursuant to Section 7
is designated as a Stock Appreciation Right. 
 (ll) “Subsidiary” means a “subsidiary corporation,” whether now or
hereafter existing, as defined in Code Section 424(f). 
 3.
Stock Subject to the Plan. 
 (a) Stock Subject to the
Plan. Subject to the provisions of Section 15 of the Plan, the maximum aggregate number of Shares that may be subject to Awards and sold under the Plan is 34,945,745 Shares. The Shares may be authorized but unissued, or reacquired Common
Stock. 

  
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 (b) Lapsed Awards. If an Award expires or becomes unexercisable without having been
exercised in full, is surrendered pursuant to an Exchange Program, or, with respect to Restricted Stock, Restricted Stock Units, Performance Units or Performance Shares, is forfeited to or repurchased by the Company due to the failure to vest, the
unpurchased Shares (or for Awards other than Options or Stock Appreciation Rights the forfeited or repurchased Shares) which were subject thereto will become available for future grant or sale under the Plan (unless the Plan has terminated). With
respect to Stock Appreciation Rights, only Shares actually issued pursuant to a Stock Appreciation Right will cease to be available under the Plan; all remaining Shares under Stock Appreciation Rights will remain available for future grant or sale
under the Plan (unless the Plan has terminated). Shares that have actually been issued under the Plan under any Award will not be returned to the Plan and will not become available for future distribution under the Plan; provided, however, that if
Shares issued pursuant to Awards of Restricted Stock, Restricted Stock Units, Performance Shares or Performance Units are repurchased by the Company or are forfeited to the Company due to the failure to vest, such Shares will become available for
future grant under the Plan. Shares used to pay the exercise price of an Award or to satisfy the tax withholdings related to an Award will become available for future grant or sale under the Plan. To the extent an Award under the Plan is paid out in
cash rather than Shares, such cash payment will not result in reducing the number of Shares available for issuance under the Plan. Notwithstanding the foregoing and, subject to adjustment as provided in Section 15, the maximum number of Shares
that may be issued upon the exercise of Incentive Stock Options will equal the aggregate Share number stated in Section 3(a), plus, to the extent allowable under Code Section 422 and the Treasury Regulations promulgated thereunder, any
Shares that become available for issuance under the Plan pursuant to Sections 3(b) and 3(c). 
 (c) Prior Plan Awards. If any award
issued pursuant to the Torchlight Energy Resources, Inc. 2015 Stock Option Plan or the Meta Materials Inc. Amended and Restated Stock Option Plan (the “Prior Plans”) expires or becomes unexercisable without having been exercised in
full, is forfeited to or repurchased by the Company due to the failure to vest, the unpurchased Shares (or for awards other than stock options or stock appreciation rights the forfeited or repurchased Shares) which were subject thereto will become
available for future grant or sale under the Plan (unless the Plan has terminated), provided that no more than 27,968,944 Shares may become available under the Plan pursuant to this Section 3(c). 

(d) Share Reserve. The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as will
be sufficient to satisfy the requirements of the Plan. 

  
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 4. Administration of the Plan. 

(a) Procedure. 
 (i)
Multiple Administrative Bodies. Different Committees with respect to different groups of Service Providers may administer the Plan. 

(ii) Rule 16b-3. To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3, the transactions contemplated
hereunder will be structured to satisfy the requirements for exemption under Rule 16b-3. 
 (iii) Other Administration. Other than as
provided above, the Plan will be administered by (A) the Board or (B) a Committee, which Committee will be constituted to satisfy Applicable Laws. 

(b) Powers of the Administrator. Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific duties
delegated by the Board to such Committee, the Administrator will have the authority, in its discretion: 
 (i) to determine the Fair Market
Value; 
 (ii) to select the Service Providers to whom Awards may be granted hereunder; 

(iii) to determine the number of Shares to be covered by each Award granted hereunder; 

(iv) to approve forms of Award Agreements for use under the Plan; 

(v) to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder. Such terms and
conditions include, but are not limited to, the exercise price, the time or times when Awards may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or
limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Administrator will determine; 

(vi) to institute and determine the terms and conditions of an Exchange Program; 

(vii) to construe and interpret the terms of the Plan and Awards granted pursuant to the Plan; 

(viii) to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of satisfying applicable non-U.S. laws or for qualifying for favorable tax treatment under applicable
non-U.S. laws; 

  
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 (ix) to modify or amend each Award (subject to Section 20(c) of the Plan), including
but not limited to the discretionary authority to extend the post-termination exercisability period of Awards; provided, however, that in no case will an Option or Stock Appreciation Right be extended beyond its original maximum term; 

(x) to allow Participants to satisfy tax withholding obligations in a manner prescribed in Section 15(d); 

(xi) to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Award previously granted by
the Administrator; 
 (xii) to allow a Participant to defer the receipt of the payment of cash or the delivery of Shares that otherwise
would be due to such Participant under an Award; and 
 (xiii) to make all other determinations deemed necessary or advisable for
administering the Plan. 
 (c) Effect of Administrator’s Decision. The Administrator’s decisions,
determinations and interpretations will be final and binding on all Participants and any other holders of Awards and will be given the maximum deference permitted by Applicable Laws. 

5. Eligibility. Restricted Stock, Restricted Stock Units, Performance Shares and Performance Units may be granted to any Service
Providers. Nonstatutory Stock Options and Stock Appreciation Rights, to the extent required for exemption under Section 409A, may be granted only to Service Providers rendering services to the Company or a Subsidiary (not a Parent). Incentive
Stock Options may be granted only to Employees. 
 6. Stock Options. 

(a) Grant of Options. Subject to the terms and provisions of the Plan, the Administrator, at any time and from time to time, may grant
Options in such amounts as the Administrator, in its sole discretion, will determine. 
 (b) Option Agreement. Each Award of an Option
will be evidenced by an Award Agreement that will specify the exercise price, the term of the Option, the number of Shares subject to the Option, the exercise restrictions, if any, applicable to the Option, and such other terms and conditions as the
Administrator, in its sole discretion, will determine. 
 (c) Limitations. Each Option will be designated in the Award Agreement as
either an Incentive Stock Option or a Nonstatutory Stock Option. Notwithstanding such designation, however, to the extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first
time by the Participant during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds one hundred thousand dollars ($100,000), such Options will be treated as Nonstatutory Stock Options. For purposes of this
Section 6(c), Incentive Stock Options will be taken into account in the order in which they were granted, the Fair Market Value of the Shares will be determined as of the time the Option with respect to such Shares is granted, and the
calculation will be performed in accordance with Code Section 422 and Treasury Regulations promulgated thereunder. 

  
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 (d) Term of Option. The term of each Option will be stated in the Award Agreement. In
the case of an Incentive Stock Option, the term will be no more than ten (10) years from the date of grant thereof. In the case of an Incentive Stock Option granted to a Participant who, at the time the Incentive Stock Option is granted, owns
stock representing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option will be five (5) years from the date of grant or such
shorter term as may be provided in the Award Agreement. 
 (e) Option Exercise Price and Consideration. 

(i) Exercise Price. The per Share exercise price for the Shares to be issued pursuant to the exercise of an Option will be determined
by the Administrator, subject to the following: 
 (1) In the case of an Incentive Stock Option 

a) granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the
voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price will be no less than one hundred ten percent (110%) of the Fair Market Value per Share (or the fair market value per Share as determined in
accordance with Treas. Reg. 1.409A-1(b)(5)(iv)(A)) on the date of grant. 
 b) granted to any
Employee other than an Employee described in paragraph (a) immediately above, the per Share exercise price will be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant. 

(2) In the case of a Nonstatutory Stock Option, the per Share exercise price will be no less than one hundred percent (100%) of the Fair
Market Value per Share on the date of grant (or the fair market value per Share as determined in accordance with Treas. Reg. 1.409A-1(b)(5)(iv)(A)). 

(3) Notwithstanding the foregoing provisions of this Section 6(e), Options may be granted with a per Share exercise price of less than
one hundred percent (100%) of the Fair Market Value per Share on the date of grant pursuant to a transaction described in, and in a manner consistent with, Code Section 424(a). 

(ii) Waiting Period and Exercise Dates. At the time an Option is granted, the Administrator will fix the period within which the Option
may be exercised and will determine any conditions that must be satisfied before the Option may be exercised. 
 (iii) Form of
Consideration. The Administrator will determine the acceptable form of consideration for exercising an Option, including the method of payment. In the case of an Incentive Stock Option, the Administrator will determine the acceptable form of
consideration at the time of grant. Such consideration may consist entirely of: (1) cash; (2) check; (3) promissory note; to the extent permitted by Applicable Laws; (4) other Shares, provided that such Shares have a Fair Market Value
on the date of surrender equal to the aggregate exercise price of the Shares as to which such Option will be exercised and provided further that accepting 

  
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such Shares will not result in any adverse accounting consequences to the Company, as the Administrator determines in its sole discretion; (5) consideration received by the Company under a
broker assisted (or other) cashless exercise program (whether through a broker or otherwise) implemented by the Company in connection with the Plan; (6) by net exercise; (7) such other consideration and method of payment for the issuance
of Shares to the extent permitted by Applicable Laws; or (8) any combination of the foregoing methods of payment. In making its determination as to the type of consideration to accept, the Administrator will consider if acceptance of such
consideration may be reasonably expected to benefit the Company. 
 (f) Exercise of Option. 

(i) Procedure for Exercise; Rights as a Stockholder. Any Option granted hereunder will be exercisable according to the terms of the
Plan and at such times and under such conditions as determined by the Administrator and set forth in the Award Agreement. An Option may not be exercised for a fraction of a Share. 

An Option will be deemed exercised when the Company receives: (i) notice of exercise (in such form as the Administrator may specify from
time to time) from the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised (together with applicable tax withholding). Full payment may consist of any consideration and
method of payment authorized by the Administrator and permitted by the Award Agreement and the Plan. Shares issued upon exercise of an Option will be issued in the name of the Participant or, if requested by the Participant, in the name of the
Participant and his or her spouse. Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a
stockholder will exist with respect to the Shares subject to an Option, notwithstanding the exercise of the Option. The Company will issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a
dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 15 of the Plan. 

Exercising an Option in any manner will decrease the number of Shares thereafter available, both for purposes of the Plan and for sale under
the Option, by the number of Shares as to which the Option is exercised. 
 (ii) Termination of Relationship as a Service Provider.
If a Participant ceases to be a Service Provider, other than upon the Participant’s termination as the result of the Participant’s death or Disability, the Participant may exercise his or her Option within such period of time as is
specified in the Award Agreement to the extent that the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the
Award Agreement, the Option will remain exercisable for three (3) months following the Participant’s termination. Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her
entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan. If after termination the Participant does not exercise his or her Option within the time specified by the Administrator, the Option will terminate, and
the Shares covered by such Option will revert to the Plan. 

  
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 (iii) Disability of Participant. If a Participant ceases to be a Service Provider as
a result of the Participant’s Disability, the Participant may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent the Option is vested on the date of termination (but in no event later than
the expiration of the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option will remain exercisable for twelve (12) months following the Participant’s termination.
Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan. If after termination the
Participant does not exercise his or her Option within the time specified herein, the Option will terminate, and the Shares covered by such Option will revert to the Plan. 

(iv) Death of Participant. If a Participant dies while a Service Provider, the Option may be exercised following the Participant’s
death within such period of time as is specified in the Award Agreement to the extent that the Option is vested on the date of death (but in no event may the option be exercised later than the expiration of the term of such Option as set forth in
the Award Agreement), by the Participant’s designated beneficiary, provided such beneficiary has been designated prior to Participant’s death in a form acceptable to the Administrator. If no such beneficiary has been designated by the
Participant, then such Option may be exercised by the personal representative of the Participant’s estate or by the person(s) to whom the Option is transferred pursuant to the Participant’s will or in accordance with the laws of descent
and distribution. In the absence of a specified time in the Award Agreement, the Option will remain exercisable for twelve (12) months following Participant’s death. Unless otherwise provided by the Administrator, if at the time of death
Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will immediately revert to the Plan. If the Option is not so exercised within the time specified herein, the Option will terminate,
and the Shares covered by such Option will revert to the Plan. 
 7. Stock Appreciation Rights. 

(a) Grant of Stock Appreciation Rights. Subject to the terms and conditions of the Plan, a Stock Appreciation Right may be granted to
Service Providers of the Company or a Subsidiary at any time and from time to time as will be determined by the Administrator, in its sole discretion. 

(b) Number of Shares. The Administrator will have complete discretion to determine the number of Shares subject to any Award of Stock
Appreciation Rights. 
 (c) Exercise Price and Other Terms. The per Share exercise price for the Shares that will determine the amount
of the payment to be received upon exercise of a Stock Appreciation Right as set forth in Section 7(f) will be determined by the Administrator and will be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of
grant. Otherwise, the Administrator, subject to the provisions of the Plan, will have complete discretion to determine the terms and conditions of Stock Appreciation Rights granted under the Plan. 

(d) Stock Appreciation Right Agreement. Each Stock Appreciation Right grant will be evidenced by an Award Agreement that will specify
the exercise price, the term of the Stock Appreciation Right, the conditions of exercise, and such other terms and conditions as the Administrator, in its sole discretion, will determine. 

  
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 (e) Expiration of Stock Appreciation Rights. A Stock Appreciation Right granted under
the Plan will expire upon the date determined by the Administrator, in its sole discretion, and set forth in the Award Agreement. Notwithstanding the foregoing, the rules of Section 6(d) relating to the maximum term and Section 6(f)
relating to exercise also will apply to Stock Appreciation Rights. 
 (f) Payment of Stock Appreciation Right Amount. Upon exercise of
a Stock Appreciation Right, a Participant will be entitled to receive payment from the Company in an amount determined by multiplying: 

(i) The difference between the Fair Market Value of a Share on the date of exercise over the exercise price; times 

(ii) The number of Shares with respect to which the Stock Appreciation Right is exercised. 

At the discretion of the Administrator, the payment upon Stock Appreciation Right exercise may be in cash, in Shares of equivalent value, or
in some combination thereof. 
 8. Restricted Stock. 

(a) Grant of Restricted Stock. Subject to the terms and provisions of the Plan, the Administrator, at any time and from time to time,
may grant Shares of Restricted Stock to Service Providers in such amounts as the Administrator, in its sole discretion, will determine. 

(b) Restricted Stock Agreement. Each Award of Restricted Stock will be evidenced by an Award Agreement that will specify the Period of
Restriction, the number of Shares granted, and such other terms and conditions as the Administrator, in its sole discretion, will determine. Unless the Administrator determines otherwise, the Company as escrow agent will hold Shares of Restricted
Stock until the restrictions on such Shares have lapsed. 
 (c) Transferability. Except as provided in this Section 8 or as the
Administrator determines, Shares of Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable Period of Restriction. 

(d) Other Restrictions. The Administrator, in its sole discretion, may impose such other restrictions on Shares of Restricted Stock as
it may deem advisable or appropriate. 
 (e) Removal of Restrictions. Except as otherwise provided in this Section 8, Shares of
Restricted Stock covered by each Restricted Stock grant made under the Plan will be released from escrow as soon as practicable after the last day of the Period of Restriction or at such other time as the Administrator may determine. The
Administrator, in its discretion, may accelerate the time at which any restrictions will lapse or be removed. 

  
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 (f) Voting Rights. During the Period of Restriction, Service Providers holding Shares
of Restricted Stock granted hereunder may exercise full voting rights with respect to those Shares, unless the Administrator determines otherwise. 

(g) Dividends and Other Distributions. During the Period of Restriction, Service Providers holding Shares of Restricted Stock will be
entitled to receive all dividends and other distributions paid with respect to such Shares, unless the Administrator provides otherwise. If any such dividends or distributions are paid in Shares, the Shares will be subject to the same restrictions
on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid. 
 (h) Return of Restricted
Stock to Company. On the date set forth in the Award Agreement, the Restricted Stock for which restrictions have not lapsed will revert to the Company and again will become available for grant under the Plan. 

9. Restricted Stock Units. 

(a) Grant. Restricted Stock Units may be granted at any time and from time to time as determined by the Administrator. After the
Administrator determines that it will grant Restricted Stock Units under the Plan, it will advise the Participant in an Award Agreement of the terms, conditions, and restrictions related to the grant, including the number of Restricted Stock Units.

 (b) Vesting Criteria and Other Terms. The Administrator will set vesting criteria in its discretion, which, depending on the extent
to which the criteria are met, will determine the number of Restricted Stock Units that will be paid out to the Participant. The Administrator may set vesting criteria based upon the achievement of Company-wide, divisional, business unit, or
individual goals (including, but not limited to, continued employment or service), applicable federal or state securities laws, or any other basis determined by the Administrator in its discretion. 

(c) Earning Restricted Stock Units. Upon meeting the applicable vesting criteria, the Participant will be entitled to receive a payout
as determined by the Administrator. Notwithstanding the foregoing, at any time after the grant of Restricted Stock Units, the Administrator, in its sole discretion, may reduce or waive any vesting criteria that must be met to receive a payout. 

(d) Form and Timing of Payment. Payment of earned Restricted Stock Units will be made as soon as practicable after the date(s)
determined by the Administrator and set forth in the Award Agreement which shall establish exemption or comply with all requirements of Code Section 409A. Notwithstanding the foregoing, the Administrator, in its sole discretion, may permit
payment of earned Restricted Stock Units to be paid out in installments or on a deferred basis, in accordance with rules and procedures established by the Administrator (“Deferred Stock Units”). The Administrator, in its sole
discretion, may settle earned Restricted Stock Units or Deferred Stock Units in cash, Shares, or a combination of both. 
 (e)
Cancellation. On the date set forth in the Award Agreement, all unearned Restricted Stock Units will be forfeited to the Company. 

  
 - 13 - 

 10. Performance Units and Performance Shares. 

(a) Grant of Performance Units/Shares. Performance Units and Performance Shares may be granted to Service Providers at any time and from
time to time, as will be determined by the Administrator, in its sole discretion. The Administrator will have complete discretion in determining the number of Performance Units and Performance Shares granted to each Participant. 

(b) Value of Performance Units/Shares. Each Performance Unit will have an initial value that is established by the Administrator on or
before the date of grant. Each Performance Share will have an initial value equal to the Fair Market Value of a Share on the date of grant. 

(c) Performance Objectives and Other Terms. The Administrator will set performance objectives or other vesting provisions (including,
without limitation, continued status as a Service Provider) in its discretion which, depending on the extent to which they are met, will determine the number or value of Performance Units/Shares that will be paid out to the Service Providers.
The time period during which the performance objectives or other vesting provisions must be met will be called the “Performance Period.” Each Award of Performance Units/Shares will be evidenced by an Award Agreement that will specify the
Performance Period, and such other terms and conditions as the Administrator, in its sole discretion, will determine. The Administrator may set performance objectives based upon the achievement of Company-wide, divisional, business unit or
individual goals (including, but not limited to, continued employment or service), applicable federal or state securities laws, or any other basis determined by the Administrator in its discretion. 

(d) Earning of Performance Units/Shares. After the applicable Performance Period has ended, the holder of Performance Units/Shares will
be entitled to receive a payout of the number of Performance Units/Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance objectives or other vesting
provisions have been achieved. After the grant of a Performance Unit/Share, the Administrator, in its sole discretion, may reduce or waive any performance objectives or other vesting provisions for such Performance Unit/Share. 

(e) Form and Timing of Payment of Performance Units/Shares. Payment of earned Performance Units/Shares will be made as soon as
practicable after the expiration of the applicable Performance Period or at such other time as may be specified in the Award Agreement which shall establish exemption or comply with all requirements of Code Section 409A. The Administrator, in
its sole discretion, may pay earned Performance Units/Shares in the form of cash, in Shares (which have an aggregate Fair Market Value equal to the value of the earned Performance Units/Shares at the close of the applicable Performance
Period) or in a combination thereof. 
 (f) Cancellation of Performance Units/Shares. On the date set forth in the Award
Agreement, all unearned or unvested Performance Units/Shares will be forfeited to the Company, and again will be available for grant under the Plan. 

  
 - 14 - 

 11. Outside Director Limitations. No Outside Director may be granted, in any Fiscal
Year, Awards with a grant date fair value (determined in accordance with U.S. generally accepted accounting principles) of more than $750,000, increased to $1,500,000 in connection with his or her initial service. Any Awards granted to an individual
while he or she was an Employee, or while he or she was a Consultant but not an Outside Director, will not count for purposes of the limitations under this Section 11. 

12. Compliance With Code Section 409A. Awards will be designed and operated in such a manner that they are either
exempt from the application of, or comply with, the requirements of Code Section 409A such that the grant, payment, settlement or deferral will not be subject to the additional tax or interest applicable under Code Section 409A, except as
otherwise determined in the sole discretion of the Administrator. The Plan and each Award Agreement under the Plan is intended to meet the requirements of Code Section 409A and will be construed and interpreted in accordance with such
intent, except as otherwise determined in the sole discretion of the Administrator. To the extent that an Award or payment, or the settlement or deferral thereof, is subject to Code Section 409A the Award will be granted, paid, settled or
deferred in a manner that will meet the requirements of Code Section 409A, such that the grant, payment, settlement or deferral will not be subject to the additional tax or interest applicable under Code Section 409A. In no event will the
Company have any obligation under the terms of this Plan to reimburse a Participant for any taxes or other costs that may be imposed on Participant as a result of Section 409A. 

13. Leaves of Absence/Transfer Between Locations. Unless the Administrator provides otherwise, vesting of Awards granted hereunder will
be suspended during any unpaid leave of absence. A Participant will not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its
Parent, or any Subsidiary. For purposes of Incentive Stock Options, no such leave may exceed three (3) months, unless reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of
absence approved by the Company is not so guaranteed, then six (6) months following the first (1st) day of such leave, any Incentive Stock Option held by the Participant will cease to be
treated as an Incentive Stock Option and will be treated for tax purposes as a Nonstatutory Stock Option. 
 14. Limited Transferability
of Awards. 
 Unless determined otherwise by the Administrator, Awards may not be sold, pledged, assigned, hypothecated, or otherwise
transferred in any manner other than by will or by the laws of descent and distribution, and may be exercised, during the lifetime of the Participant, only by the Participant. If the Administrator makes an Award transferable, such Award will contain
such additional terms and conditions as the Administrator deems appropriate. 
 15. Adjustments; Dissolution or Liquidation; Merger or
Change in Control. 
 (a) Adjustments. In the event that any dividend or other distribution (whether in the form of cash, Shares,
other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure 

  
 - 15 - 

 
of the Company affecting the Shares occurs, the Administrator, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan,
will adjust the number and class of shares of stock that may be delivered under the Plan and/or the number, class, and price of shares of stock covered by each outstanding Award, and the numerical Share limits of Section 3. 

(b) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator will notify
each Participant as soon as practicable prior to the effective date of such proposed transaction. To the extent it has not been previously exercised, an Award will terminate immediately prior to the consummation of such proposed action. 

(c) Change in Control. In the event of a merger of the Company with or into another corporation or other entity or a Change in Control,
each outstanding Award will be treated as the Administrator determines (subject to the provisions of the following paragraph) without a Participant’s consent, including, without limitation, that (i) Awards will be assumed, or substantially
equivalent awards will be substituted, by the acquiring or succeeding corporation (or an affiliate thereof) with appropriate adjustments as to the number and kind of shares and prices; (ii) upon written notice to a Participant, that the
Participant’s Awards will terminate upon or immediately prior to the consummation of such merger or Change in Control; (iii) outstanding Awards will vest and become exercisable, realizable, or payable, or restrictions applicable to an
Award will lapse, in whole or in part prior to or upon consummation of such merger or Change in Control, and, to the extent the Administrator determines, terminate upon or immediately prior to the effectiveness of such merger or Change in Control;
(iv) (A) the termination of an Award in exchange for an amount of cash and/or property, if any, equal to the amount that would have been attained upon the exercise of such Award or realization of the Participant’s rights as of the date of
the occurrence of the transaction (and, for the avoidance of doubt, if as of the date of the occurrence of the transaction the Administrator determines in good faith that no amount would have been attained upon the exercise of such Award or
realization of the Participant’s rights, then such Award may be terminated by the Company without payment), or (B) the replacement of such Award with other rights or property selected by the Administrator in its sole discretion; or
(v) any combination of the foregoing. In taking any of the actions permitted under this subsection 15(c), the Administrator will not be obligated to treat all Awards, all Awards held by a Participant, or all Awards of the same type, similarly.

 In the event that the successor corporation does not assume or substitute for the Award (or portion thereof), the Participant will fully
vest in and have the right to exercise all of his or her outstanding Options and Stock Appreciation Rights, including Shares as to which such Awards would not otherwise be vested or exercisable, all restrictions on Restricted Stock and Restricted
Stock Units will lapse, and, with respect to Awards with performance-based vesting, all performance goals or other vesting criteria will be deemed achieved at one hundred percent (100%) of target levels and all other terms and conditions met, in all
cases, unless specifically provided otherwise under the applicable Award Agreement or other written agreement between the Participant and the Company or any of its Subsidiaries or Parents, as applicable. In addition, if an Option or Stock
Appreciation Right is not assumed or substituted in the event of a merger or Change in Control, the Administrator will notify the Participant in writing or electronically that the Option or Stock Appreciation Right will be exercisable for a period
of time determined by the Administrator in its sole discretion, and the Option or Stock Appreciation Right will terminate upon the expiration of such period. 

  
 - 16 - 

 For the purposes of this subsection 15(c) and subsection 15(d), an Award will be considered
assumed if, following the merger or Change in Control, the Award confers the right to purchase or receive, for each Share subject to the Award immediately prior to the merger or Change in Control, the consideration (whether stock, cash, or other
securities or property) received in the merger or Change in Control by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by
the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or Change in Control is not solely common stock of the successor corporation or its Parent, the Administrator may, with the
consent of the successor corporation, provide for the consideration to be received upon the exercise of an Option or Stock Appreciation Right or upon the payout of a Restricted Stock Unit, Performance Unit, or Performance Share, for each Share
subject to such Award, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger or Change in Control. 

Notwithstanding anything in this Section 15(c) to the contrary, an Award that vests, is earned or
paid-out upon the satisfaction of one or more performance goals will not be considered assumed if the Company or its successor modifies any of such performance goals without the Participant’s consent, in
all cases, unless specifically provided otherwise under the applicable Award Agreement or other written agreement between the Participant and the Company or any of its Subsidiaries or Parents, as applicable; provided, however, a modification to such
performance goals only to reflect the successor corporation’s post-Change in Control corporate structure will not be deemed to invalidate an otherwise valid Award assumption. 

Notwithstanding anything in this Section 15(c) to the contrary, and unless otherwise provided in an Award Agreement, if an Award that
vests, is earned or paid-out under an Award Agreement is subject to Code Section 409A and if the change in control definition contained in the Award Agreement does not comply with the definition of
“change of control” for purposes of a distribution under Code Section 409A, then any payment of an amount that is otherwise accelerated under this Section will be delayed until the earliest time that such payment would be permissible
under Code Section 409A without triggering any penalties applicable under Code Section 409A. 
 (d) Outside Director
Awards. In the event of a Change in Control, with respect to Awards granted to an Outside Director, the Outside Directors will fully vest in and have the right to exercise Options and/or Stock Appreciation Rights as to all of the Shares
underlying such Award, including those Shares which would not otherwise be vested or exercisable, all restrictions on Restricted Stock and Restricted Stock Units will lapse, and, with respect to Awards with performance-based vesting, all performance
goals or other vesting criteria will be deemed achieved at one hundred percent (100%) of target levels and all other terms and conditions met, unless specifically provided otherwise under the applicable Award Agreement or other written agreement
between the Participant and the Company or any of its Subsidiaries or Parents, as applicable. 

  
 - 17 - 

 16. Tax Withholding. 

(a) Withholding Requirements. Prior to the delivery of any Shares or cash pursuant to an Award (or exercise thereof) or such earlier
time as any tax withholding obligation is due, the Company will have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy federal, state, local, non-U.S. or other taxes (including the Participant’s FICA obligation) required to be withheld with respect to such Award (or exercise thereof). 

(b) Withholding Arrangements. The Administrator, in its sole discretion and pursuant to such procedures as it may specify from time to
time, may permit a Participant to satisfy such tax withholding obligation, in whole or in part by such methods as the Administrator shall determine, including, without limitation, (i) paying cash, (ii) electing to have the Company withhold
otherwise deliverable cash or Shares having a fair market value equal to the minimum statutory amount required to be withheld or such greater amount as the Administrator may determine if such amount would not have adverse accounting consequences, as
the Administrator determines in its sole discretion, (iii) delivering to the Company already-owned Shares having a fair market value equal to the minimum statutory amount required to be withheld or such greater amount as the Administrator may
determine, in each case, provided the delivery of such Shares will not result in any adverse accounting consequences, as the Administrator determines in its sole discretion, (iv) selling a sufficient number of Shares otherwise deliverable to
the Participant through such means as the Administrator may determine in its sole discretion (whether through a broker or otherwise) equal to the amount required to be withheld, or (v) any combination of the foregoing methods of payment. The
amount of the withholding requirement will be deemed to include any amount which the Administrator agrees may be withheld at the time the election is made, not to exceed the amount determined by using the maximum federal, state or local marginal
income tax rates applicable to the Participant with respect to the Award on the date that the amount of tax to be withheld is to be determined or such greater amount as the Administrator may determine if such amount would not have adverse accounting
consequences, as the Administrator determines in its sole discretion. The fair market value of the Shares to be withheld or delivered will be determined as of the date that the taxes are required to be withheld. 

17. No Effect on Employment or Service. Neither the Plan nor any Award will confer upon a Participant any right with respect to
continuing the Participant’s relationship as a Service Provider with the Company or its Subsidiaries or Parents, as applicable, nor will they interfere in any way with the Participant’s right or the right of the Company and its
Subsidiaries or Parents, as applicable to terminate such relationship at any time, with or without cause, to the extent permitted by Applicable Laws. 

18. Date of Grant. The date of grant of an Award will be, for all purposes, the date on which the Administrator makes the determination
granting such Award, or such other later date as is determined by the Administrator. Notice of the determination will be provided to each Participant within a reasonable time after the date of such grant. 

19. Term of Plan. The Plan will become effective upon its adoption by the Board, subject to Section 23. It will continue in effect
for a term of ten (10) years from the date adopted by the Board, unless terminated earlier under Section 20 of the Plan. 

  
 - 18 - 

 20. Amendment and Termination of the Plan. 

(a) Amendment and Termination. The Administrator may at any time amend, alter, suspend or terminate the Plan. 

(b) Stockholder Approval. The Company will obtain stockholder approval of any Plan amendment to the extent necessary and desirable to
comply with Applicable Laws. 
 (c) Effect of Amendment or Termination. No amendment, alteration, suspension or termination of the
Plan will impair the rights of any Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing and signed by the Participant and the Company. Termination of the Plan will not affect
the Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination. 

21. Conditions Upon Issuance of Shares. 

(a) Legal Compliance. Shares will not be issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance
and delivery of such Shares will comply with Applicable Laws and will be further subject to the approval of counsel for the Company with respect to such compliance. 

(b) Investment Representations. As a condition to the exercise of an Award, the Company may require the person exercising such Award to
represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation
is required. 
 22. Inability to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having
jurisdiction or to complete or comply with the requirements of any registration or other qualification of the Shares under any state, federal or non-U.S. law or under the rules and regulations of the
Securities and Exchange Commission, the stock exchange on which Shares of the same class are then listed, or any other governmental or regulatory body, which authority, registration, qualification or rule compliance is deemed by the Company’s
counsel to be necessary or advisable for the issuance and sale of any Shares hereunder, will relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority, registration,
qualification or rule compliance will not have been obtained. 
 23. Stockholder Approval. The Plan will be presented for approval by
the stockholders of the Company at the 2021 Annual Meeting of Stockholders (the “Annual Meeting”). Such stockholder approval will be obtained in the manner and to the degree required under Applicable Laws. If stockholder approval is
not obtained at the 2021 Annual Meeting, then any Option granted under the Plan shall be considered null and void. No Option granted under the Plan may be treated as an Incentive Stock Option is the Plan is not approved by stockholders of the
Company within twelve (12) months after the date the Plan is adopted by the Board. 

  
 - 19 - 

 24. Forfeiture Events. 

(a) All Awards under the Plan will be subject to recoupment under any clawback policy that the Company is required to adopt pursuant to the
listing standards of any national securities exchange or association on which the Company’s securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other Applicable Laws. In
addition, the Administrator may impose such other clawback, recovery or recoupment provisions in an Award Agreement as the Administrator determines necessary or appropriate, including but not limited to a reacquisition right regarding previously
acquired Shares or other cash or property. Unless this Section 24 is specifically mentioned and waived in an Award Agreement or other document, no recovery of compensation under a clawback policy or otherwise will be an event that triggers or
contributes to any right of a Participant to resign for “good reason” or “constructive termination” (or similar term) under any agreement with the Company or a Subsidiary or Parent of the Company. 

(b) The Administrator may specify in an Award Agreement that the Participant’s rights, payments, and benefits with respect to an Award
will be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such events may include, but will not be limited
to, termination of such Participant’s status as Service Provider for cause or any specified action or inaction by a Participant, whether before or after such termination of service, that would constitute cause for termination of such
Participant’s status as a Service Provider. 

  
 - 20 -Exhibit 10.1

 

CONTINGENT EQUITY RIGHTS AGREEMENT

 

THIS CONTINGENT EQUITY RIGHTS
AGREEMENT, dated as of March 16, 2022 (this “Agreement”), is entered into by and among Ready Capital Corporation,
a Maryland corporation (“Parent”), Sutherland Partners, L.P., a Delaware limited partnership (the “Operating
Partnership”), and American Stock Transfer & Trust Company, LLC, a New York limited liability trust company (the “Rights
Agent”).

 

RECITALS

 

WHEREAS, Parent is
a Maryland corporation operating as a real estate investment trust within the meaning, and under the provisions, of Sections 856 through
860 of the Code for U.S. federal income tax purposes and the sole general partner of the Operating Partnership, which is the operating
partnership of Parent;

 

WHEREAS, Parent, the
Operating Partnership, RC Mosaic Sub, LLC, a Delaware limited liability company and a wholly owned Subsidiary of the Operating Partnership
(“Merger Sub”), Mosaic Real Estate Credit, LLC, a Delaware limited liability company (“MREC”),
Mosaic Real Estate Credit TE, LLC, a Delaware limited liability company (“MREC TE”), MREC International Incentive
Split, LP, a Delaware limited partnership (“MREC IIS,” and together with MREC and MREC TE, each a “Mosaic
Merger Entity” and, collectively, the “Mosaic Merger Entities”), Mosaic Real Estate Credit Offshore, LP,
a Cayman Islands exempted limited partnership (“MREC Offshore”), MREC Corp Sub 1 (VO), LLC, a Delaware limited liability
company (“MREC Corp Sub 1”), MREC Corp Sub 2 (LA Office), LLC, a Delaware limited liability company (“MREC
Corp Sub 2”), MREC Corp Sub 3 (Superblock), LLC, a Delaware limited liability company (“MREC Corp Sub 3”
and with MREC Offshore, MREC Corp Sub 1 and MREC Corp Sub 2, each individually a “Mosaic Offshore Entity” and collectively,
the “Mosaic Offshore Entities”), Mosaic Special Member, LLC, a Delaware limited liability company (the “Mosaic
Special Member”), Mosaic Secured Holdings, LLC, a Delaware limited liability company (“Mosaic Secure Holdings”),
MREC Management, LLC, a Delaware limited liability company (the “Mosaic Manager” and with the Mosaic Offshore Entities,
Mosaic Special Member and Mosaic Secure Holdings, each individually a “Mosaic Entity” and collectively, the “Mosaic
Entities,” and with the Mosaic Merger Entities, each individually a “Mosaic Party” and, collectively, the
 “Mosaic Parties”), have entered into a Merger Agreement, dated as of November 3, 2021 (as amended and as it may
be further amended or supplemented from time to time pursuant to the terms thereof, the “Merger Agreement”);

 

WHEREAS, the Mosaic
Merger Entities, collectively own, directly or indirectly, a majority of the equity interests in MREC Shared Holdings General Partnership,
a Delaware general partnership (“MREC Shared Holdings”), MREC REIT Holdings, LLC, a Delaware limited liability company
(“REIT Holdings”), MREC TE REIT Pref Holdings, LLC, a Delaware limited liability company (“REIT Pref Holdings”),
MREC TE Holdings, LLC, a Delaware limited liability company (“TE Holdings”), and MREC International Holdings, LLC,
a Delaware limited liability company (“International Holdings”), and MREC Domestic REIT Holdings, LLC, a Delaware
limited liability company (“Domestic REIT Holdings,” and with MREC Shared Holdings, REIT Holdings, REIT Pref Holdings,
TE Holdings and International Holdings, each individually a “Mosaic Holding Entity” and, collectively, the “Mosaic
Holding Entities”), and, directly and through the Mosaic Holding Entities, all of the interests in MREC Good Asset, LLC, a
Delaware limited liability company (“MREC Good Asset”), MREC U Asset Pool, LLC, a Delaware limited liability company
(“MREC U”), MREC U2 Asset Pool, LLC, a Delaware limited liability company (“MREC U2”), and
MREC NU Asset Pool, LLC, a Delaware limited liability company (“MREC NU” and, together with MREC Good Asset, MREC
U and MREC U2, collectively, the “Primary Holding Entities” and each individually a “Primary Holding Entity”);

 

     

     

    

 

WHEREAS, pursuant to,
and subject to the terms and conditions of, the Merger Agreement, the parties intended that Parent and the Operating Partnership acquire
control of the Subject Companies by means of (a) the merger of MREC with and into Merger Sub (the “MREC Merger”), (b)
the merger of MREC TE with and into Merger Sub (the “MREC TE Merger”), and (c) the merger of MREC IIS with and into
Merger Sub (the “MREC IIS Merger”);

 

WHEREAS,
contemporaneously with execution of this Agreement, pursuant to the Merger Agreement, the parties have consummated (a) the MREC
Merger pursuant to which Parent has issued the MREC Merger Consideration described in the Merger Agreement, which MREC Merger
Consideration includes MREC CERs (as defined herein) issued pursuant to this Agreement, (b) the MREC TE Merger in exchange for the
MREC TE Merger Consideration described in the Merger Agreement, which MREC TE Merger Consideration includes MREC TE CERs (as defined
herein) issued pursuant to this Agreement, and (c) the MREC IIS Merger in exchange for the MREC IIS Merger Consideration described
in the Merger Agreement, which MREC IIS Merger Consideration includes MREC IIS CERs (as defined herein) issued pursuant to this
Agreement, pursuant to which Parent and the Operating Partnership have acquired control of the Mosaic Holding Entities, the Primary
Holding Companies and their Subsidiaries (each individually a “Subject Company” and, collectively, the
 “Subject Companies”); and

 

WHEREAS, the parties
intend to set forth the manner and basis upon which Holders (as defined herein) will hold, and potentially become entitled to receive
payments in respect of, CERs (as defined herein).

 

NOW, THEREFORE, in
consideration of the foregoing and the consummation of the transactions referred to above, Parent, the Operating Partnership and the Rights
Agent agree, for the equal and proportionate benefit of all Holders, as follows:

 

		1.	DEFINITIONS 

 

1.1          
Definitions. Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to such terms in the
Merger Agreement. As used in this Agreement, the following terms shall have the following meanings:

 

“Acting Holders” means, at the time of
determination, Holders of at least 50% of the outstanding CERs as set forth on the CER Register.

 

“Adjustment Difference”
means an amount (which may be positive or negative) equal to the difference (if any) between (i) the actual net proceeds (after deduction
of selling expenses, fees or incentives payable to the Mosaic Manager in respect thereof, and any payments that are required to be allocated
or remitted to any Person (other than another Subject Company) holding a participation interest in such Subject Company Investment (which
participation is a binding obligation of a Person that is not a Parent Party and under the terms of which such participation shares in
losses on a pari passu basis with retained Parent Party interests)) received after the date hereof by the Parent Parties from the disposition
or other resolution of Subject Company Investments in respect of which a Recorded Adjustment was made and (ii) the amount of anticipated
net proceeds (after deduction of selling expenses, fees or incentives payable to the Mosaic Manager in respect thereof, and any payments
that are required to be allocated or remitted to any Person (other than another Subject Company) holding a participation interest
in such Subject Company Investment (which participation is a binding obligation of a Person that is not a Parent Party and under the
terms of which such participation shares in losses on a pari passu basis with retained Parent Party interests)) from the proposed disposition
or other resolution of such Subject Company Investments that was used in the computation of the Recorded Adjustment in respect of such
Subject Company Investments.

 

    2

     

    

 

“Advance”
means (i) in respect of any Subject Company Loan in the Covered Portfolio or the Updated Covered Portfolio, any disbursement of funds
made by (or on behalf of) any of the Subject Companies (prior to the date hereof) or the Parent Parties (on or after the date hereof)
(it being understood that any interest or fees on a Subject Company Loan that have been capitalized and treated
as principal of such Subject Company Loan will be considered to have been such a disbursement of funds) in accordance with the
loan agreement or other instrument governing such Subject Company Loan and (ii) in respect of any Subject Company Investment in the Covered
Portfolio or the Updated Covered Portfolio, the purchase price paid for, or other investment made in respect of, such Subject Company
Investment (including any accrued but unpaid dividends or other distributions and all capitalized costs and expenses, such as real-estate-owned
marketing and carrying costs and third-party expenses, in respect thereof).

 

“Affiliate”
of a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is
under common control with, such Person. The term “control” (including the terms “controlled by” and “under
common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

 

“Aggregate CER Consideration” means an
amount (expressed in Dollars) equal to the product of (i) 90% and (ii) the lesser of (x) the Valuation Excess and (y) the Initial
Discount Amount.

 

“Aggregate Parent Party Funded Amount”
means, as of the Revaluation Date, an amount  (expressed in Dollars) equal to the sum of (x) all Advances made by or on behalf
of any of the Subject Companies or Parent Parties in respect of the Updated Covered Portfolio during the CER Accrual Period (excluding,
for the avoidance of doubt, any portion of such Advances in respect of which a participation has been sold (which participation is a
binding obligation of a Person that is not a Parent Party and under the terms of which such participation shares in credit losses on
a pari passu basis with retained Parent Party interests)) plus (y) an amount equal to any Recorded Adjustments.

 

“Aggregate Principal
Recovery Amount” means, as of the Revaluation Date, an amount (expressed in Dollars) equal to the sum, without duplication,
of all payments of principal or return of capital, as applicable, received by any Parent Party in respect of the Updated Covered Portfolio
(excluding, for the avoidance of doubt, payments in respect of Post-Determination Date Returns and all payments that are required to
be allocated or remitted to any Person (other than another Parent Party) holding a participation interest in any Subject Company Loan
or Subject Company Investment (which participation is a binding obligation of a Person that is not a Parent Party and under the terms
of which such participation shares in credit losses on a pari passu basis with retained Parent Party interests)), and all Liquidation
Proceeds received by Parent Parties in respect of the Covered Portfolio (excluding, for the avoidance of doubt, Liquidation Proceeds
that are required to be allocated or remitted to any Person (other than another Parent Party) holding a participation interest in any
Subject Company Loan or Subject Company Investment (which participation is a binding obligation of a Person that is not a Parent Party
and under the terms of which such participation shares in credit losses on a pari passu basis with retained Parent Party interests)),
in each case during the CER Accrual Period and in each case excluding the amount of any Recorded Adjustment but including the amount
(whether positive or negative) of any Adjustment Difference.

 

“Assignee” has the meaning set forth in
Section 6.3.

 

    3

     

    

 

“Business Day”
means any day except Saturday, Sunday or any other day on which commercial banks located in New York are authorized or required by Law
to be closed for business.

 

“CER” or
 “CERs” means the contingent rights of the Holders to receive (i) in respect of MREC CERs, shares of Parent Common Stock
(and cash in lieu of any fractional shares of Parent Common Stock) pursuant to this Agreement, (ii) in respect of MREC TE CERs, shares
of Parent Common Stock (and cash in lieu of any fractional shares of Parent Common Stock) pursuant to this Agreement and (iii) in respect
of MREC IIS CERs, shares of Parent Common Stock (and cash in lieu of any fractional shares of Parent Common Stock) pursuant to this Agreement.

 

“CER Accrual Period”
means the period beginning on the first day following the Determination Date and ending on the Revaluation Date.

 

“CER Consideration”
means (i) in respect of MREC CERs, the MREC Per CER Consideration, (ii) in respect of MREC TE CERs, the MREC TE Per CER Consideration
and (iii) in respect of MREC IIS CERs, the MREC IIS Per CER Consideration.

 

“CER Notice” has the meaning set forth
in Section 2.4(b).

 

“CER Register” has the meaning set forth
in Section 2.3(b).

 

“Covered Portfolio”
means the portfolio of Subject Company Loans and Subject Company Investments listed and more particularly described in Exhibit A hereto.

 

“Determination Date” means September 30,
2021.

 

“Determination Date
Funded Amount” means $852,324,172, which amount is equal to (x) the sum of all Advances made by or on behalf of the Subject
Companies in respect of the Covered Portfolio on or prior to the Determination Date that remained unpaid as of such date (excluding, for
the avoidance of doubt, any portion of such Advances in respect of which a participation has been sold (which participation is a binding
obligation of a Person that is not a Subject Company and under the terms of which such participation shares in credit losses on a pari
passu basis with retained Subject Company interests)) plus

(y) an amount equal to any Recorded Adjustments.

 

“Dispute Notice” has the meaning set forth
in Section 2.4(c).

 

“Dollars” or “US$”
means dollars in lawful currency of the United States of America.

 

“Event of Default” has the meaning set
forth in Section 5.1.

 

“Fair Value”
means, as of the Revaluation Date, the fair value of the Updated Covered Portfolio (excluding any Post-Determination Date Returns otherwise
reflected therein and excluding any portion of such fair value attributable to the rights of any Person in any participation in any Subject
Company Loan or Subject Company Investment (which participation is a binding obligation of a Person that is not a Parent Party and under
the terms of which such participation shares in credit losses on a pari passu basis with retained Parent Party interests) contained in
the Updated Covered Portfolio) as determined by the Parent using valuation methodologies reasonably consistent with those used by Parent
in determining the Initial Discount Amount.

 

“Governmental Authority”
means any federal, state, local or foreign government or political subdivision thereof, or any agency or instrumentality of such government
or political subdivision, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental
authority (to the extent that the rules, regulations or orders of such organization or authority have the force of Law), or any arbitrator,
court or tribunal of competent jurisdiction.

 

    4

     

    

 

“Holder” means a MREC CER Holder, MREC
TE CER Holder or MREC IIS CER Holder.

 

“ICC” has the meaning set forth in Section
6.6.

 

“Initial Discount Amount” means $98,900,000.

 

“Initial Discounted
Valuation” means $753,424,172, which is an amount (expressed in Dollars) equal to the sum of (i) the Determination Date Funded
Amount minus (ii) the Initial Discount Amount.

 

“Issuance Date”
means the date that is the later of (i) twenty five (25) Business Days following the date of the CER Notice or (ii) if a Dispute Notice
is delivered on a timely basis, ten (10) Business Days following the date on which all disputed items in such Dispute Notice are finally
resolved pursuant to Section 6.6.

 

“Liquidation Proceeds”
means, in respect of the disposal (whether by sale, transfer, assignment, participation or otherwise) by any Parent Party to any Person
(other than to another Parent Party) of any Subject Company Loan or Subject Company Investment during the CER Accrual Period, all proceeds
received by any Parent Parties as a result thereof (excluding, for the avoidance of doubt, any proceeds in respect of Post-Determination
Date Returns and any proceeds that are required to be allocated or remitted to any Person holding a participation interest in such Subject
Company Loan or Subject Company Investment (which participation is a binding obligation of a Person that is not a Parent Party and under
the terms of which such participation shares in credit losses on a pari passu basis with retained Parent Party interests)) less any expenses
incurred by such Parent Party in connection therewith.

 

“MREC CER” means a CER received as MREC
Merger Consideration pursuant to the Merger Agreement and designated as such pursuant to this Agreement.

 

“MREC CER Holder” means a Person in whose
name a MREC CER is registered in the CER Register at the applicable time.

 

“MREC CER Payment
Ratio” means the quotient (rounded to the nearest one ten-thousandth) obtained by dividing (i) the MREC Per CER Consideration
Amount by (ii) the Parent Share Value.

 

“MREC CER Share Percentage” means 66.173%,
which represents the percentage interest of all MREC CER Holders in the Aggregate CER Consideration.

 

“MREC IIS CER”
means a CER received as MREC TE Merger Consideration pursuant to the Merger Agreement and designated as such pursuant to this Agreement.

 

“MREC IIS CER Holder” means a Person
in whose name a MREC IIS CER is registered in the CER Register at the applicable time.

 

“MREC IIS CER Payment
Ratio” means the quotient (rounded to the nearest one ten-thousandth) obtained by dividing (i) the MREC IIS Per CER Consideration
Amount by (ii) the Parent Share Value.

 

“MREC IIS CER Share
Percentage” means 3.346%, which represents the percentage interest of all MREC IIS CER Holders in the Aggregate CER Consideration.

 

    5

     

    

 

“MREC IIS Per CER Consideration” has the
meaning set forth in Section 2.4(a).

 

“MREC IIS Per CER
Consideration Amount” means an amount (expressed in Dollars) equal to the quotient (rounded to the nearest one ten-thousandth)
obtained by dividing (i) the product of (x) the Aggregate CER Consideration and (y) the MREC IIS CER Share Percentage by (ii) the initial
number of MREC IIS CERs.

 

“MREC Per CER Consideration” has the meaning
set forth in Section 2.4(a).

 

“MREC Per CER Consideration
Amount” means an amount (expressed in Dollars) equal to the quotient (rounded to the nearest one ten-thousandth) obtained by
dividing (i) the product of (x) the Aggregate CER Consideration and (y) the MREC CER Share Percentage by (ii) the initial number of MREC
CERs.

 

“MREC TE CER” means a CER received as
MREC TE Merger Consideration pursuant to the Merger Agreement and designated as such pursuant to this Agreement.

 

“MREC TE CER Holder” means a Person in
whose name a MREC TE CER is registered in the CER Register at the applicable time.

 

“MREC TE CER Payment
Ratio” means the quotient (rounded to the nearest one ten-thousandth) obtained by dividing (i) the MREC TE Per CER Consideration
Amount by (ii) the Parent Share Value.

 

“MREC TE CER Share
Percentage” means 30.481%, which represents the percentage interest of all MREC TE CER Holders in the Aggregate CER Consideration.

 

“MREC TE Per CER Consideration” has the
meaning set forth in Section 2.4(a).

 

“MREC TE Per CER
Consideration Amount” means an amount (expressed in Dollars) equal to the quotient (rounded to the nearest one ten-thousandth)
obtained by dividing (i) the product of (x) the Aggregate CER Consideration and (y) the MREC TE CER Share Percentage by (ii) the initial
number of MREC TE CERs.

 

“Officer’s
Certificate” means a certificate signed by the chief executive officer, president, chief financial officer, any vice president,
the controller, the treasurer or the secretary, in each case of Parent, in his or her capacity as such an officer, and delivered to the
Rights Agent.

 

“Parent Common Stock” means the common
stock of Parent, par value $0.0001 per share.

 

“Parent Party”
means each of Parent, the Operating Partnership, and their respective Subsidiaries (including the Subject Companies).

 

“Parent Share Value”
means the greater of (i) (A) the average of the volume weighted average prices of one share of Parent Common Stock for the ten consecutive
trading days immediately preceding, but not including, the Revaluation Date, as reported by Bloomberg, L.P., or (B) if the Parent Common
Stock is not then listed on a United States national securities exchange, the average of the last quoted bid prices for Parent Common
Stock in the over-the-counter market as reported by Pink OTC Markets Inc. or another similar organization for the ten consecutive trading
days immediately preceding, but not including, the Revaluation Date, and (ii) the most recent publicly reported book value per share of
Parent Common Stock immediately preceding the Revaluation Date.

 

    6

     

    

 

“Permitted Transfer” means a transfer
of CERs (a) upon death of a Holder by will or intestacy; (b) pursuant to a court order; (c) by operation of law (including by consolidation
or merger) or without consideration in connection with the dissolution, liquidation or termination of any corporation, limited liability
company, partnership or other entity, including any Plan of Liquidation; or (d) as provided in Section 2.6.

 

“Person”
or “person” means an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority,
unincorporated organization, trust, association, or other entity.

 

“Plan of Liquidation” has the meaning
set forth in the Merger Agreement.

 

“Post-Determination Date Returns” means,
with respect to the Subject Company Loans and Subject Company Investments as of any date of determination, the aggregate of all
interest and fees (whether or not paid or accrued) with respect to each Subject Company Loan and all accrued dividends and other distributions
(whether or not paid or accrued) with respect to each Subject Company Investment, in each case to the extent attributable to the period
beginning on the first day following the Determination Date and ending on such date of determination.

 

“Recorded Adjustment” has the meaning
set forth in the Merger Agreement.

 

“Revaluation Date”
means the day that is the three-year anniversary of the date hereof (or if such day is not a Business Day, the next following Business
Day).

 

“Revaluation Value” means an amount (expressed
in Dollars) equal to the Fair Value of the Updated Covered Portfolio as of the Revaluation Date.

 

“Rights Agent”
means the Rights Agent named in the first paragraph of this Agreement, until a successor Rights Agent becomes such pursuant to the applicable
provisions of this Agreement, and thereafter “Rights Agent” shall mean such successor Rights Agent.

 

“Rules” has the meaning set forth in
Section 6.6.

 

“Subject Company Investment” has the meaning
set forth in the Merger Agreement.

 

“Subject Company Loan” has the meaning
set forth in the Merger Agreement.

 

“Subsidiary”
means any corporation, partnership, trust, limited liability company or other non-corporate business enterprise in which the applicable
Person holds, directly or indirectly, stock or other equity ownership interests representing more than 50% of the voting power of all
outstanding stock or equity ownership interests of such entity.

 

“Tax” or
 “Taxes” means any and all U.S. federal, state, local and non-U.S. taxes, assessments, levies, duties, tariffs, imposts
and other similar charges and fees imposed by any Governmental Authority, including, income, franchise, windfall or other profits, gross
receipts, property, sales, use, net worth, capital stock, payroll, employment, social security, workers’ compensation, unemployment
compensation, excise, withholding, ad valorem, stamp, transfer, value-added, occupation, environmental, disability, real property, personal
property, registration, alternative or add-on minimum or estimated tax, including any interest, penalty, additions to tax or additional
amounts imposed with respect thereto, whether disputed or not.

 

“Updated Covered
Portfolio” means the Covered Portfolio as updated, adjusted or modified by Parent on or prior to the Revaluation Date
in order to reflect (i) any dispositions (whether by sale, transfer, assignment, participation or otherwise) of any portion of any
Subject Company Loan or Subject Company Investment (other than to another Parent Party), (ii) any changes in the aggregate outstanding
principal amount and/or commitment amounts (whether funded or unfunded) of Subject Company Loans, in each case as the result of repayments
of principal by the underlying obligors of such loans, Advances made by any Parent Party in respect of such loans, or otherwise, and
(iii) any changes resulting from any redemption or repurchase of a Subject Company Investment by the issuer thereof or any of its Affiliates,
in each case during the CER Accrual Period.

 

    7

     

    

 

“Valuation Excess” has the meaning set
forth in Section 2.4(a).

 

1.2            Rules of
Construction. For purposes of this Agreement, the parties hereto agree that: (a) whenever the context requires, the singular
number shall include the plural, and vice versa; (b) the masculine gender shall include the feminine and neuter genders; the feminine
gender shall include the masculine and neuter genders; and the neuter gender shall include masculine and feminine genders; (c) the word
 “extent” in the phrase “to the extent” means the degree to which a subject or other thing extends, and does not
simply mean “if”; (d) the words “include” and “including,” and variations thereof, shall not be deemed
to be terms of limitation, but rather shall be deemed to be followed by the words “without limitation;” (e) the meaning assigned
to each capitalized term defined and used in this Agreement is equally applicable to both the singular and the plural forms of such term,
and words denoting any gender include all genders; (f) where a word or phrase is defined in this Agreement, each of its other grammatical
forms has a corresponding meaning unless the context otherwise requires; (g) a reference to any specific Law or to any provision of any
Law includes any amendment to, and any modification, re-enactment or successor thereof, any legislative provision substituted therefor
and all rules, regulations and statutory instruments issued thereunder or pursuant thereto; (h) references to any agreement or Contract
are to that agreement or Contract as amended, modified or supplemented; (i) they have been represented by legal counsel during the negotiation
and execution and delivery of this Agreement and therefore waive the application of any Law, holding or rule of construction providing
that ambiguities in an agreement or other document will be construed against the party drafting such agreement or document; and (j) the
word “or” shall not be exclusive (i.e., “or” shall be deemed to mean “and/or”) unless the subjects
of the conjunction are mutually exclusive. The headings contained in this Agreement are for convenience of reference only, shall not
be deemed to be a part of this Agreement and shall not be referred to in connection with the construction or interpretation of this Agreement.

 

		2.	CONTINGENT VALUE RIGHTS 

 

2.1            CERs. The CERs represent the contingent rights of Holders to receive the CER Consideration, in each case pursuant to, on the terms
provided in, and in accordance with, this Agreement.

 

		2.2	Initial Holders; CERs Non-Transferable.

 

(a)            The initial Holders shall
be determined pursuant to the terms of the Merger Agreement. As soon as practicable after the date hereof, Parent shall furnish or cause
to be furnished to the Rights Agent, in a form reasonably satisfactory to the Rights Agent, the names and addresses of the initial Holders.

 

(b)           The CERs may not be sold,
assigned, transferred, pledged, encumbered or in any other manner transferred or disposed of, in whole or in part, other than through
a Permitted Transfer. Any such sale, assignment, transfer, pledge, encumbrance or disposal that is not a Permitted Transfer shall be void
ab initio and of no effect.

 

    8

     

    

 

		2.3	No Certificate; Registration; Registration of Transfer; Change of Address.

 

 (a)            The CERs shall not be evidenced by a certificate or other instrument.

 

(b)           The
Rights Agent shall keep a register (the “CER Register”) for the purpose of (i) identifying which CERs
are MREC CERs and which are MREC TE CERs or MREC IIS CERs, (ii) identifying the Holders of CERs and (iii) registering CERs and Permitted
Transfers thereof.

 

(c)           Subject to the restrictions
on transferability set forth in Section 2.2, every request made to transfer a CER must be in writing and accompanied by a
written instrument of transfer and other documentation reasonably requested by the Rights Agent in form reasonably satisfactory to the
Rights Agent pursuant to its guidelines, duly executed by the Holder thereof, the Holder’s attorney duly authorized in writing,
the Holder’s personal representative or the Holder’s survivor, as applicable, and setting forth in reasonable detail the
circumstances relating to the transfer. Upon receipt of such written notice, the Rights Agent shall, subject to its reasonable determination
that the transfer instrument is in proper form and the transfer otherwise complies with the other terms and conditions of this Agreement
(including the provisions of Section 2.2), register the transfer of the CERs in the CER Register and notify Parent and the Operating
Partnership of the same. No service charge shall be made for any registration of transfer of a CER, but Parent, the Operating Partnership
and the Rights Agent may require payment of a sum sufficient to cover any stamp or other Tax or charge that is imposed in connection
with any such registration of transfer. The Rights Agent shall have no duty or obligation to take any action under any section of this
Agreement that requires the payment by a Holder of a CER of applicable Taxes or charges unless and until the Rights Agent is reasonably
satisfied that all such Taxes or charges have been paid. All duly transferred CERs registered in the CER Register shall be the valid
obligations of Parent or the Operating Partnership, as applicable, and shall entitle the transferee to the same benefits and rights under
this Agreement as those held immediately prior to the transfer by the transferor. No transfer of a CER shall be valid unless and until
registered in the CER Register in accordance with this Agreement.

 

(d)            A Holder may make a written
request to the Rights Agent to change such Holder’s address of record in the CER Register. The written request must be duly executed
by the Holder. Upon receipt of such written request, the Rights Agent is hereby authorized to, and shall promptly, record the change of
address in the CER Register.

 

2.4            CER
Consideration.

 

(a)           
If, on the Revaluation Date, (A) the sum of (x) the Revaluation Value minus the Aggregate Parent Party Funded Amount, in each
case as of the Revaluation Date, and (y) the Aggregate Principal Recovery Amount exceeds (B) the Initial Discounted Valuation (the amount
of such excess, the “Valuation Excess”), then, on the Issuance Date, Parent will issue and the Operating Partnership
will deliver (i) to the MREC CER Holders, in respect of each MREC CER, a number of shares of Parent Common Stock equal to the MREC CER
Payment Ratio (together with any additional shares of Parent Common Stock or cash to be paid pursuant to Section 2.5(b) and
any cash being paid in lieu of a fractional share, the “MREC Per CER Consideration”), (ii) to the MREC TE CER Holders,
in respect of each MREC TE CER, a number of shares of Parent Common Stock equal to the MREC TE CER Payment Ratio (together with
any additional shares of Parent Common Stock or cash to be paid pursuant to Section 2.5(b) and any cash being paid in lieu of
a fractional share, the “MREC TE Per CER Consideration”) and (iii) to the MREC IIS CER Holders, in respect of each
MREC IIS CER, a number of shares of Parent Common Stock equal to the MREC IIS CER Payment Ratio (together with any additional
shares of Parent Common Stock or cash to be paid pursuant to Section 2.5(b) and any cash being paid in lieu of a fractional share,
the “MREC IIS Per CER Consideration”). No fractional shares of Parent Common Stock shall be issued in respect of any
CERs, and any Holder that is entitled to receive a fraction of a share of Parent Common Stock (taking into account all CERs held
by such Holder) shall instead receive cash with respect to any fractional share of Parent Common Stock in an amount equal to the product
of (I) such fractional part of a share of Parent Common Stock multiplied by (II) the Parent Share Value. For the avoidance of doubt,
if the Valuation Excess is less than or equal to $0, then neither Parent nor the Operating Partnership shall have any obligation to issue
or deliver any CER Consideration and the CERs shall be extinguished and shall have no further force or effect.

 

    9

     

    

 

(b)          
Not later than thirty (30) Business Days following the Revaluation Date, Parent shall deliver to the Rights Agent a written notice (the
 “CER Notice”) setting forth a computation of the Valuation Excess and, if the Valuation Excess is
greater than $0, computations of the CER Consideration, in substantially the form attached hereto as Exhibit B, together with
an Officer’s Certificate certifying such computations. The Rights Agent shall promptly, and in any event within five (5) Business
Days of receipt of the CER Notice, send each Holder at its registered address a copy of such CER Notice.

 

(c)            Within
twenty (20) Business Days of the delivery of the CER Notice, the Rights Agent may, if so directed by the Acting Holders, deliver
to Parent a written notice (a “Dispute Notice”) stating that the Acting Holders dispute the accuracy of the CER Notice,
setting forth the basis for such dispute and, in reasonable detail, those items and amounts as to which the Acting Holders disagree,
and the Acting Holders shall be deemed to have agreed with all other items and amounts contained in the CER Notice. Within five (5) days
after receipt of a Dispute Notice, Parent shall (i) designate a nationally recognized independent valuation expert to make a binding
determination only as to the matters in dispute as specified in the Dispute Notice and (ii) give written notice of such designation (a
 “Designation Notice”) to the Rights Agent and to the Acting Holders at whose direction the Dispute Notice was delivered.
If the Rights Agent, at the written direction of such Acting Holders, gives Parent written notice that such Acting Holders object
to such designation within five (5) Business Days after the Rights Agent’s receipt of the Designation Notice (such notice, a “Rights
Agent Objection Notice”), Rights Agent, within five (5) business days following the date of the Right Agent Objection Notice,
shall provide a written proposal to Parent for the appointment of an alternate independent valuation expert (which shall be selected
by the Acting Holders) to make a binding determination as to the matters in dispute as specified in the Dispute Notice (such proposal,
and “Alternate Valuation Proposal”). If, within five (5) business days of the Alternate Valuation Proposal, Parent
gives Rights Agent written notice that such Parent objects to such Alternate Valuation Proposal (a “Parent Objection Notice”),
within five (5) Business Days after the Parent Objection Notice, Parent and Rights Agent shall jointly request the then head of
the Capital Markets Group at CBRE to appoint another nationally recognized independent valuation expert, whose appointment shall be final,
conclusive, and binding on the parties and the Holders; provided, that if the Acting Holders do not reject such valuation expert
within such five (5) Business Day period, the Holders shall be deemed to have accepted the appointment of such valuation expert (in each
case, the “Valuation Expert”). The Valuation Expert will, under the terms of its engagement, as an expert and
not an arbitrator, be required to render its written decision with respect to such disputed items and amounts within thirty (30) Business
Days from the date of such appointment. The Valuation Expert shall deliver to the Parties a written report setting forth its adjustments,
if any, to the CER Notice based on the Valuation Expert’s determination, solely with respect to the disputed items and amounts
in accordance with this Agreement, and such report shall include the calculations supporting such adjustments; provided, that
for each item set forth in the Dispute Notice, the Valuation Expert shall assign a value for each such item no greater than the higher
amount, and no less than the lower amount, calculated or set forth in the CER Notice or the Dispute Notice with respect to such item,
as the case may be. The Valuation Expert shall have no power to amend or supplement the terms of this Agreement or the Merger Agreement
or act ex aequo et bono. The Valuation Expert’s report shall be final, conclusive, and binding on the parties and the Holders,
shall not be subject to further review by any court, and no party or Holder nor any of their respective Affiliates or Representatives
may seek recourse to any courts, other tribunals or otherwise, other than to enforce the determination of the Valuation Expert. The fees
and expenses of the Valuation Expert for purposes of this Section 2.4(c) shall be borne solely by Parent.

 

    10

     

    

 

(d)           In the event that the Rights
Agent does not deliver a Dispute Notice to Parent during such twenty (20) Business Day period, the Holders shall be deemed to have accepted
the accuracy of the CER Notice, and the calculations of the Valuation Excess and the CER Consideration (if any) set forth therein shall
be final, conclusive and binding upon the parties and the Holders.

 

(e)            On the Issuance Date, Parent
and the Operating Partnership shall deliver the CER Consideration to the Rights Agent, along with any letter of instruction reasonably
required by the Rights Agent, and the Rights Agent shall promptly, and in any event within ten (10) Business Days of receipt of the CER
Consideration, subsequently deliver the CER Consideration to the Holders at their respective registered addresses in accordance with this
Agreement.

 

(f)            Each of Parent, the Operating
Partnership and the Rights Agent shall be entitled to deduct or withhold, or cause to be deducted or withheld, from any payments made
pursuant to this Agreement such amounts as are required to be deducted or withheld therefrom under the Code, the U.S. Treasury Regulations
thereunder, or any other applicable Tax law, as may be reasonably determined by Parent, the Operating Partnership or the Rights Agent,
as applicable. Prior to making any Tax withholdings or causing any Tax withholdings to be made with respect to any Holder, the Rights
Agent shall use commercially reasonable efforts to solicit from such Holder an IRS Form W-9 or other applicable Tax form in order to provide
a reasonable opportunity for the Holder to provide such Tax forms to avoid or reduce such withholding amounts, and delivery of CER Consideration
to such Holder may be reasonably delayed in order to gather such necessary Tax forms. The Rights Agent shall promptly and timely remit,
or cause to be remitted, any amounts it withholds in respect of Taxes to the appropriate Governmental Authority. To the extent any amounts
are deducted or withheld and properly and timely remitted to the appropriate Governmental Authority, such amounts shall be treated for
all purposes under this Agreement and the Merger Agreement as having been paid to the Holder to whom such amounts would otherwise have
been paid, and, to the extent required by applicable Law, Parent or the Operating Partnership, as applicable, shall deliver (or shall
cause the Rights Agent to deliver) to the Holder to whom such amounts would otherwise have been paid an Internal Revenue Service Form
1099, an Internal Revenue Service Form W-2 or other reasonably acceptable evidence of such withholding.

 

(g)           If any CER Consideration
delivered to the Rights Agent for payment to Holders remains undistributed to any Holders on the date that is six (6) months after the
Issuance Date, Parent shall be entitled to require the Rights Agent to deliver to Parent or its designee any CER Consideration which had
been made available to the Rights Agent and not disbursed to the Holders (including, all interest and other income received by the Rights
Agent in respect of all funds made available to it), and, thereafter, such Holders shall be entitled to payment from Parent and the Operating
Partnership (subject to abandoned property, escheat and other similar Law and Section 2.4(f)) as general creditors thereof with
respect to the CER Consideration that may be payable.

 

(h)          
Neither Parent, the Rights Agent nor any of their Affiliates shall be liable to any Holder for any CER Consideration delivered to a public
official pursuant to any abandoned property, escheat or other similar Law. If, despite Parent’s and/or the Rights Agent’s
commercially reasonable efforts to deliver any CER Consideration to the applicable Holder, such CER Consideration has not been paid prior
to two (2) years after the Issuance Date (or immediately prior to such earlier date on which such CER Consideration would otherwise escheat
to or become the property of any Governmental Authority), such CER Consideration will, to the extent permitted by applicable Law, become
the property of Parent, free and clear of all claims or interest of any person previously entitled thereto. In addition to and not in
limitation of any other indemnity obligation herein, Parent agrees to indemnify and hold harmless the Rights Agent with respect to any
liability, penalty, cost or expense the Rights Agent may incur or be subject to in connection with transferring such property to Parent,
unless such liability, penalty, cost or expense has been determined by a court of competent jurisdiction to be a result of Rights
Agent’s gross negligence, bad faith or willful or intentional misconduct.

 

    11

     

    

 

(i)             Except to the extent any
portion of any CER Consideration is required to be treated as imputed interest pursuant to applicable Law, Parent and the Operating Partnership
intend to treat the CER Consideration for all U.S. federal and applicable state and local income Tax purposes as additional Merger Consideration
paid at the Effective Time pursuant to the Merger Agreement; provided that notwithstanding the foregoing, consistent with the provisions
of Section 2.5, Parent and the Operating Partnership agree that the CER Consideration constitutes contingent consideration that
will be considered received by, and taxable to, the Holders if and when received pursuant to the installment method of Section 453 of
the Code, except to the extent that a Holder elects out of the installment method.

 

(j)            The CER Consideration shall
be equitably adjusted to reflect the effect of any stock split, reverse stock split, stock dividend (including any dividend or other distribution
of securities convertible into Parent Common Stock, as applicable), subdivision, reorganization, reclassification, recapitalization, combination,
exchange of equity interests or other like change with respect to the number of shares of Parent Common Stock outstanding after the Revaluation
Date and prior to the Issuance Date.

 

2.5            No
Voting, Dividends or Interest; No Equity or Ownership Interest.

 

(a)           The CERs shall not represent
any equity or ownership interest in Parent or the Operating Partnership or in Merger Sub or any other constituent company in the Mergers
or any of their respective Subsidiaries or Affiliates. The CERs shall not have any voting, dividend or distribution rights, and interest
shall not accrue on any amounts payable on or in respect of the CERs to any Holder.

 

(b)          
Notwithstanding the provisions of Section 2.5(a), as a component of the CER Consideration to which such Holder is entitled to
receive, a Holder shall be entitled to receive, in each case, without interest, (x) a number of shares of Parent Common Stock equal to
the quotient obtained by  dividing (A) the amount of any dividends or other distributions paid with respect to the shares of
Parent Common Stock represented by the number of whole shares of Parent Common Stock received by such Holder in respect of such Holder’s
CERs and having a record date on or after the Effective Time and a payment date prior to the Issuance Date by (B) the Parent Share Value
(with cash being paid in lieu of any fractional shares of Parent Common Stock in an amount equal to the product of (I) such fractional
part of a share of Parent Common Stock multiplied by (II) the Parent Share Value) and (y) at the appropriate payment date or as promptly
as practicable thereafter, the amount of any dividends or other distributions payable with respect to such shares of Parent Common Stock
and having a record date on or after the Effective Time but prior to the Issuance Date and a payment date on or after the Issuance Date.

 

2.6          
Ability to Abandon CER. A Holder may at any time, at such Holder’s option, abandon any or all of such Holder’s
remaining rights in a CER by transferring such CER to Parent, the Operating Partnership or any of their respective Affiliates without
consideration therefor. Nothing in this Agreement shall prohibit Parent, the Operating Partnership or any of their respective Affiliates
from offering to acquire or acquiring any CERs for consideration from the Holders, in private transactions or otherwise, in their sole
discretion. Any CERs acquired by Parent, the Operating Partnership or any of their respective Affiliates shall be automatically deemed
extinguished and no longer outstanding for purposes of the definition of Acting Holders.

 

 2.7            Books and Records; Segregation of Covered Portfolio; Quarterly Reporting.

 

(a)           
Parent shall, and shall cause its Affiliates to, keep true, complete and accurate records in sufficient detail with respect to the Updated
Covered Portfolio to enable the Rights Agent and the Acting Holders and their consultants and professional advisors to confirm the
applicable CER Consideration payable to each Holder hereunder in accordance with the terms specified in this Agreement.

 

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(b)           Parent shall use commercially
reasonable efforts to avoid commingling the assets contained in the Updated Covered Portfolio with other assets of Parent and its Subsidiaries
that are not part of the Updated Covered Portfolio, including holding the assets constituting the Updated Covered Portfolio in separate
subsidiaries from those that hold assets that are not part of the Updated Covered Portfolio; provided, that Parent shall have the
flexibility to make such adjustments as it believes are required to maintain its qualification as a REIT or to preserve any exemption
under the Investment Company Act of 1940.

 

(c)           Within forty-five (45) days
after the end of each calendar quarter ending after the date of this Agreement and before the Revaluation Date, Parent shall prepare and
deliver to the Rights Agent and to the Mosaic Manager a written report, in such form as Parent shall determine, summarizing the performance
of, and significant activity in, the Updated Covered Portfolio during such calendar quarter; provided, that such report shall be
provided for information purposes only, and shall have no bearing on the determination of, and may not be used as a basis for determining,
any Valuation Excess or the amount of CER Consideration.

 

2.8            Certain Actions. Neither Parent nor any of its Affiliates will take any action that is intended primarily to reduce the amount
of any CER Consideration or restrict Parent’s ability to issue or pay any of the CER Consideration hereunder; provided, that
the foregoing shall be subject in all respects to the prudent business judgment of Parent’s board of directors or management in
connection with the conduct of its business, including management of the Updated Covered Portfolio, and shall not require Parent or any
of its Affiliates to take or refrain from taking, or prohibit Parent or any of its Affiliates from taking or refraining from taking, any
actions in respect of the Updated Covered Portfolio, including (i) any liquidation or disposition of a Subject Company Loan or Subject
Company Investment, or any interests therein, (ii) any negotiations with borrowers or other counterparties with respect to any matters
relating to any Subject Company Loans or Subject Company Investments, including any agreement or failure to agree to compromise or amend
the terms of, or effect a discounted payoff of, any Subject Company Loan or Subject Company Investment, or (iii) any actions taken or
not taken on the advice, or against the advice of, the Mosaic Manager under the Services Agreement.

 

		3.	THE RIGHTS AGENT 

 

3.1            Certain Duties and Responsibilities. The Rights Agent shall not have any liability for any actions taken or omitted to be
taken in connection with this Agreement, except to the extent of its fraud, gross negligence, bad faith or willful or intentional misconduct.

 

3.2           
Certain Rights of the Rights Agent. The Rights Agent undertakes to perform such duties and only such duties as are specifically
set forth in this Agreement, and no implied covenants or obligations shall be read into this Agreement against the Rights Agent. In addition:

 

(a)           the Rights Agent may rely
and shall be protected and held harmless by Parent in acting or refraining from acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order or other paper or document believed by it in good faith to be genuine and
to have been signed or presented by the proper party or parties;

 

(b)          
whenever the Rights Agent shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action
hereunder, the Rights Agent may rely upon an Officer’s Certificate, which certificate shall be full authorization and protection
to the Rights Agent, and the Rights Agent shall, in the absence of fraud, gross negligence, bad faith or willful or intentional
misconduct on its part, incur no liability and be held harmless by Parent for or in respect of any action taken, suffered or omitted
to be taken by it under the provisions of this Agreement in reliance upon such certificate;

 

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(c)           the Rights Agent may engage
and consult with counsel of its selection and the written advice of such counsel or any opinion of counsel shall be full and complete
authorization and protection and shall be held harmless by Parent in respect of any action taken, suffered or omitted by it hereunder
in good faith and in reliance thereon;

 

(d)           the permissive rights of
the Rights Agent to do things enumerated in this Agreement shall not be construed as a duty;

 

(e)            the Rights Agent shall not
be required to give any note or surety in respect of the execution of such powers or otherwise in respect of the premises;

 

(f)            the Rights Agent shall not
be liable for or by reason of, and shall be held harmless by Parent with respect to any of the statements of fact or recitals contained
in this Agreement or be required to verify the same, but all such statements and recitals are and shall be deemed to have been made by
Parent only;

 

(g)           the Rights Agent shall have
no liability and shall be held harmless by Parent in respect of the validity of this Agreement or the execution and delivery hereof (except
the due execution and delivery hereof by the Rights Agent and the enforceability of this Agreement against the Rights Agent assuming the
due execution and delivery hereof by Parent); nor shall it be responsible for any breach by Parent of any covenant or condition contained
in this Agreement;

 

(h)          
Parent agrees to indemnify the Rights Agent for, and hold the Rights Agent harmless against, any loss, liability, claim, demands, suits
or expense arising out of or in connection with Rights Agent’s duties under this Agreement, including the reasonable out-of-pocket
costs and expenses of defending Rights Agent against any claims, charges, demands, suits or loss, unless such loss has been determined
by a court of competent jurisdiction to be a result of Rights Agent’s gross negligence, bad faith or willful or intentional misconduct;

 

(i)            Parent agrees (i) to pay
the fees and expenses of the Rights Agent in connection with this Agreement as agreed upon in writing by the Rights Agent and Parent on
or prior to the date hereof, and (ii) to reimburse the Rights Agent for all Taxes and governmental charges, reasonable documented out-of-pocket
expenses incurred by the Rights Agent in the execution of this Agreement (other than Taxes imposed on or measured by the Rights Agent’s
net income and franchise or similar Taxes imposed on it (in lieu of net income Taxes)). The Rights Agent shall also be entitled to reimbursement
from Parent for all reasonable and necessary out-of-pocket expenses (including legal expenses) paid or incurred by it in connection with
the administration by the Rights Agent of its duties hereunder; and

 

(j)            no provision of this Agreement
shall require the Rights Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of
its duties hereunder or in the exercise of its rights if there shall be reasonable grounds for believing that repayment of such funds
or adequate indemnification against such risk or liability is not reasonably assured to it.

 

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3.3            Resignation and Removal; Appointment of Successor.

 

(a)           The Rights Agent may resign
at any time by giving written notice thereof to Parent specifying a date when such resignation shall take effect, which notice shall be
sent at least sixty (60) days prior to the date so specified but in no event shall such resignation become effective until a successor
Rights Agent has been appointed and accepted such appointment in accordance with Section 3.4. Parent has the right to remove the
Rights Agent at any time by specifying a date when such removal shall take effect but no such removal shall become effective until a successor
Rights Agent has been appointed and accepted such appointment in accordance with Section 3.4. Notice of such removal shall be given
by Parent to the Rights Agent, which notice shall be sent at least sixty (60) days prior to the date so specified.

 

(b)           If the Rights Agent provides
notice of its intent to resign, is removed or becomes incapable of acting, Parent shall, as soon as is reasonably practicable, appoint
a qualified successor Rights Agent who shall be a stock transfer agent of national reputation or the corporate trust department of a commercial
bank. The successor Rights Agent so appointed shall, forthwith upon its acceptance of such appointment in accordance with Section 3.4,
become the successor Rights Agent.

 

(c)            Parent shall give notice
of each resignation and each removal of a Rights Agent and each appointment of a successor Rights Agent by mailing written notice of such
event by first-class mail to the Holders as their names and addresses appear in the CER Register. Each notice shall include the name and
address of the successor Rights Agent. If Parent fails to send such notice within ten (10) Business Days after acceptance of appointment
by a successor Rights Agent, the successor Rights Agent shall cause the notice to be mailed at the expense of Parent. Failure to give
any notice provided for in this Section 3.3, however, shall not affect the legality or validity of the resignation or removal of
the Rights Agent or the appointment of the successor Rights Agent, as the case may be.

 

3.4           
Acceptance of Appointment by Successor. Every successor Rights Agent appointed hereunder shall execute, acknowledge and deliver
to Parent and to the retiring Rights Agent an instrument accepting such appointment and a counterpart of this Agreement, and thereupon
such successor Rights Agent, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and
duties of the retiring Rights Agent. On request of Parent or the successor Rights Agent, the retiring Rights Agent shall execute and deliver
an instrument transferring to the successor Rights Agent all the rights, powers, trusts and duties of the retiring Rights Agent.

 

		4.	AMENDMENT 

 

		4.1	Amendments without Consent of Holders.

 

(a)           Without the consent of any
of the Holders or the Rights Agent, Parent and the Operating Partnership at any time and from time to time, may enter into one or more
amendments hereto, for any of the following purposes:

 

(i)             to evidence the
succession of another Person as a successor Rights Agent and the assumption by any such successor of the covenants and obligations of
the Rights Agent herein;

 

(ii)            to add to the covenants of Parent or the Operating Partnership such further covenants, restrictions, conditions or provisions as Parent
or the Operating Partnership shall consider to be for the protection of the Holders; provided that, in each case, such provisions
do not adversely affect the interests of the Holders;

 

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(iii)           to cure any
ambiguity, to correct or supplement any provision herein that may be defective or inconsistent with any other provision herein or in
the Merger Agreement, or to make any other provisions with respect to matters or questions arising under this Agreement; provided
that, in each case, such provisions do not adversely affect the interests of the Holders;

 

(iv)          as may be necessary or appropriate to ensure that the CERs are not subject to registration under the Securities Act, the Exchange Act
or any applicable state securities or “blue sky” laws and to ensure that the CERs are not subject to any similar registration
or prospectus requirement under applicable securities laws outside the United States;

 

(v)           to evidence the
assignment of this Agreement by Parent or the Operating Partnership as provided in Section 6.3; or

 

(vi)          any other amendments hereto for the purpose of adding, eliminating or changing any provisions of this Agreement, unless such addition,
elimination or change is adverse to the interests of the Holders.

 

(b)         
Without the consent of any Holders (other than the Holder of interests affected by this Section 4.1(b)), Parent, the Operating
Partnership and the Rights Agent, at any time and from time to time, may enter into one or more amendments thereto to reduce the
number of CERs, to the extent that any Holder agrees to renounce such Holder’s rights under this Agreement in accordance with Section
6.4 or to transfer CERs to Parent or the Operating Partnership pursuant to Section 2.6.

 

(c)           Promptly after the execution
by Parent and/or the Rights Agent of any amendment pursuant to the provisions of this Section 4.1, Parent shall mail (or cause
the Rights Agent to mail) a notice thereof by first class mail to the Holders at their addresses as they appear on the CER Register, setting
forth such amendment.

 

4.2           Amendments with Consent of Holders.

 

(a)           Subject to Section 4.1
(which amendments pursuant to Section 4.1 may be made without the consent of any of the Holders or the Rights Agent), with the
written consent of the Acting Holders, Parent, the Operating Partnership and the Rights Agent may enter into one or more amendments hereto
for the purpose of adding, eliminating or changing any provisions of this Agreement, even if such addition, elimination or change is materially
adverse to the interest of the Holders.

 

(b)          Promptly after the execution
by Parent, the Operating Partnership and the Rights Agent of any amendment pursuant to the provisions of this Section 4.2, Parent
and the Operating Partnership shall mail (or cause the Rights Agent to mail) a notice thereof by first class mail to the Holders at their
addresses as they appear on the CER Register, setting forth such amendment.

 

4.3           Execution of Amendments.
Prior to executing any amendment permitted by this Section 4, the Rights Agent shall be entitled to receive, and shall be fully
protected in relying upon, an opinion of counsel selected by Parent (and at Parent’s sole expense) stating that the execution of
such amendment is authorized or permitted by this Agreement. The Rights Agent may, but is not obligated to, enter into any such amendment
that affects the Rights Agent’s own rights, powers, trusts or duties under this Agreement or otherwise.

 

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4.4           
Effect of Amendments. Upon the execution of any amendment under this Section 4, this Agreement shall be modified
in accordance therewith, such amendment shall form a part of this Agreement for all purposes and every Holder shall be bound thereby.

 

		5.	REMEDIES OF THE HOLDERS 

 

		5.1	Event of Default.

 

(a)           “Event of Default”
with respect to the CERs, means any material default in the performance, or breach in any material respect, of any covenant or warranty
of Parent hereunder (other than a default in whose performance or whose breach is elsewhere in this Section 5.1 specifically dealt
with), and continuance of such default or breach for a period of thirty (30) days after a written notice specifying such default or breach
and requiring it to be remedied is given, which written notice states that it is a “Notice of Default” hereunder and is sent
by registered or certified mail to Parent by the Rights Agent, at the direction of the Acting Holders (whatever the reason for such Event
of Default and whether it shall be voluntary or involuntary or be effected by operation of Law or pursuant to any judgment, decree or
order of any court or any order, rule or regulation of any Governmental Authority).

 

(b)          
If an Event of Default described above occurs and is continuing (and has not been cured or waived), then, and in each and every such
case, the Rights Agent upon the written request of the Acting Holders by notice in writing to Parent, may, but is not obligated to, commence
an arbitration proceeding to protect the rights of the Holders, including to obtain payment for any amounts then due and payable, pursuant
to Section 6.6.

 

(c)           The foregoing provisions
of this Section 5.1, however, are subject to the condition that if, at any time after the Rights Agent shall have commenced such
arbitration proceeding, and before any award shall have been obtained, Parent shall pay or shall deposit with the Rights Agent a sum sufficient
to pay all amounts which shall have become due and such amount as shall be sufficient to cover reasonable compensation to the Rights Agent,
its agents, attorneys and counsel, and all Events of Default under this Agreement shall have been cured, waived or otherwise remedied
as provided herein, then and in every such case the Acting Holders, by written notice to Parent and to the Rights Agent, may waive all
defaults that are the subject of such arbitration proceeding, but no such waiver or rescission and annulment shall extend to or shall
affect any subsequent default.

 

5.2           
Arbitration Proceedings for Enforcement. If an Event of Default has occurred, has not been waived and is continuing, the Rights
Agent may in its discretion proceed to protect and enforce the rights vested in it by this Agreement by commencing arbitration proceedings
pursuant to Section 6.6.

 

5.3          
Arbitration Proceedings Initiated by Holders. Except as set forth in this Section 5.3, no Holders of any CERs shall have
any right under this Agreement to commence arbitration proceedings under or with respect to this Agreement, or for the appointment of
a Rights Agent, receiver, liquidator, custodian or other similar official, for any other remedy hereunder. The Acting Holders shall have
the right under this Agreement to commence arbitration proceedings under or with respect to this Agreement, if (i) the Acting Holders
previously shall have given to the Rights Agent written notice of a continuing Event of Default, (ii)  the Acting Holders shall
have made written request upon the Rights Agent to commence such arbitration proceeding in its own name as Rights Agent hereunder to
protect the rights of the Holders in light of such Event of Default and shall have offered to the Rights Agent such reasonable indemnity
as it may require against the costs, expenses and liabilities to be incurred therein or thereby and (iii) the Rights Agent for fifteen
(15) days after its receipt of such written notice, request and offer of indemnity shall have failed to commence any such arbitration
proceeding and no direction inconsistent with such written request shall have been given to the Rights Agent pursuant to Section 5.4.
Notwithstanding any other provision in this Agreement, the right of any Holder of any CER to receive payment of the amounts that
a CER Notice indicates are payable in respect of such CER on or after the applicable due date, or to commence arbitration proceedings
for the enforcement of any such payment on or after such due date, shall not be impaired or affected without the consent of such Holder.

 

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5.4            Control by Acting Holders. Subject to the last sentence of this Section 5.4, the Acting Holders shall have the right to
direct the time, method and place of conducting any proceeding for any remedy available to the Rights Agent, or exercising any power conferred
on the Rights Agent by this Agreement; provided that such direction shall not be otherwise than in accordance with Law and the
provisions of this Agreement; provided, further that (subject to the provisions of Section 3.1) the Rights Agent
shall have the right to decline to follow any such direction if the Rights Agent, being advised by counsel, shall determine that the action
or proceeding so directed may not lawfully be taken or if the Rights Agent (acting in good faith through its board of directors, the executive
committee, or a committee of directors of the Rights Agent) shall determine that the action or proceedings so directed would involve the
Rights Agent in personal liability or if the Rights Agent in good faith shall so determine that the actions or forbearances specified
in or pursuant to such direction would be unduly prejudicial to the interests of Holders not joining in the giving of said direction.
Nothing in this Agreement shall impair the right of the Rights Agent in its discretion to take any action deemed proper by the Rights
Agent and which is not inconsistent with such direction or directions by the Acting Holders.

 

		6.	OTHER PROVISIONS OF GENERAL APPLICATION 

 

6.1           Notices to the Rights Agent and Parent. Any notice or other communication required or permitted to be delivered to Parent or the
Rights Agent under this Agreement shall be in writing and shall be deemed properly delivered, given and received (a) upon receipt when
delivered by hand, (b) two (2) Business Days after being sent by registered mail or by courier or express delivery service, (c) if sent
by email transmission prior to 6:00 p.m. recipient’s local time, upon transmission when transmission is confirmed or (d) if sent
by email transmission after 6:00 p.m. recipient’s local time and receipt is confirmed, the Business Day following the date of transmission;
provided that in each case the notice or other communication is sent to the physical address or email address, as applicable, set
forth beneath the name of such party below (or to such other physical address or email address as such party shall have specified in a
written notice given to the other party):

 

If to the Rights Agent, to it at:

 

American Stock Transfer & Trust Company, LLC

6201 15th
Avenue

Brooklyn, NY 11219

Attention: Corporate Actions

Email: Reorg_RM@astfinancial.com

 

with a copy (which shall not constitute notice) to:

 

American Stock Transfer & Trust Company, LLC

48 Wall Street, 22nd
Floor

New York, NY 10005

Attention: Legal Department

Email: legalteamAST@astfinancial.com

 

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If to Parent or the Operating Partnership, to Parent at:

 

Ready Capital Corporation

1251 Avenue of the Americas, 50th Floor

New York, NY 10020

Attention: Andrew Ahlborn

Email: aahlborn@waterfallam.com

 

with a copy (which shall not constitute notice) to:

 

Alston & Bird LLP

90 Park Avenue,

New York, NY 10016

Attention: Michael Kessler, David Brown

Email: michael.kessler@alston.com, david.brown@alston.com

 

The Rights Agent or Parent may specify a different
address or email address by giving notice in accordance with this Section 6.1.

 

6.2           Notice
to Holders. Where this Agreement provides for notice to Holders, such notice shall be sufficiently given (unless otherwise
herein expressly provided) if in writing and mailed, first-class postage prepaid, to each Holder affected by such event, at the
Holder’s address as it appears in the CER Register, not later than the latest date, and not earlier than the earliest date, if
any, prescribed for the giving of such notice. In any case where notice to Holders is given by mail, neither the failure to mail
such notice, nor any defect in any notice so mailed, to any particular Holder shall affect the sufficiency of such notice with
respect to other Holders.

 

6.3          
Parent Successors and Assigns. Parent may not assign this Agreement without the consent of the Acting Holders, except Parent may
assign (a) in its sole discretion and without the consent of any other Person, any or all of its rights, interests and obligations hereunder
to one or more of its Affiliates (each, an “Assignee”), provided that the Assignee agrees to assume and be
bound by all of the terms and conditions of this Agreement, and provided, further, that in connection with any assignment
to an Assignee, Parent shall agree to remain liable for the performance by each Assignee of obligations of Parent hereunder, with such
Assignee substituted for Parent under this Agreement, and (b) this Agreement in its entirety without the consent of any other Person
to its successor in interest in connection with the sale of all or substantially all of its assets or of its stock, or in connection
with a merger, acquisition or similar transaction (such successor in interest, the “Acquiror”). This Agreement will
be binding upon, inure to the benefit of and be enforceable by Parent’s successors, Acquiror and each Assignee. Each reference
to “Parent” in this Agreement shall be deemed to include Parent’s successors, Acquiror and all Assignees. Each
of Parent’s successors, Acquirors and Assignees shall, by a supplemental contingent equity rights agreement or other instrument
supplemental hereto, executed and delivered to the Rights Agent, expressly assume payment of amounts on all of the CERs and the performance
of every obligation, agreement and covenant of this Agreement on the part of Parent and the Operating Partnership to be performed or
observed. The Rights Agent may not assign this Agreement without Parent’s written consent. Any attempted assignment of this
Agreement or any such rights in violation of this Section 6.3 shall be void and of no effect.

 

6.4           No
Third Party Beneficiaries. Nothing in this Agreement, express or implied, shall give to any Person (other than the Rights Agent,
Parent, Parent’s successors and Assignees, the Holders and the Holders’ successors and assigns pursuant to a Permitted Transfer,
each of whom is intended to be, and is, a third party beneficiary hereunder) any benefit or any legal or equitable right, remedy or claim
under this Agreement or under any covenant or provision herein contained, all such covenants and provisions being for the sole benefit
of the Rights Agent, Parent, Parent’s successors and Assignees, and the Holders. The Holders of CERs shall have no rights
except the contractual rights as are expressly set forth in this Agreement and the Merger Agreement. Notwithstanding anything to the
contrary contained herein, any Holder or Holder’s successor or assign pursuant to a Permitted Transfer may at any time agree
to renounce, in whole or in part, whether or not for consideration, such Holder’s rights under this Agreement by written notice
to the Rights Agent and Parent, which notice, if given, shall be irrevocable, and Parent may, in its sole discretion, at any time offer
consideration to Holders in exchange for their agreement to irrevocably renounce their rights, in whole or in part, hereunder.

 

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6.5            Governing Law.
This Agreement, the CERs and all actions arising under or in connection herewith and therewith (whether based in contract, tort, or otherwise)
shall be governed by, and construed in accordance with, the laws of the State of New York, regardless of the laws that might otherwise
govern under applicable principles of conflicts of laws thereof.

 

6.6          
Arbitration. Any dispute, controversy or claim (including any claim for breach hereof) based upon, relating to or arising out
of this Agreement or any transaction contemplated hereby (other than a dispute, controversy or claim asserted against or by the Rights
Agent to the extent pertaining to the Rights Agent’s rights, immunities, liabilities, duties, responsibilities or obligations hereunder,
and other than matters that are the subject of a Dispute Notice, which shall be resolved in the manner described in Section 2.4(b))
shall be resolved by binding arbitration conducted in accordance with the Rules of Arbitration (“Rules”)
of the International Chamber of Commerce (the “ICC”). The arbitration shall be conducted by a panel of three
arbitrators, each of whom shall be independent and a lawyer or retired judge with at least fifteen years’ experience in the real
estate industry and with mergers and acquisitions. No later than fifteen (15)  days after an arbitration proceeding is commenced
under this Section 6.6, Parent shall nominate one arbitrator and the Holder (or, if more than one Holder is a party to the arbitration
proceeding, all such Holders collectively) shall nominate one arbitrator, and the two so nominated arbitrators shall select the third
arbitrator. If the two arbitrators cannot or fail to agree upon the third arbitrator within fifteen (15) days of their confirmation by
the ICC, the third arbitrator shall be appointed by the ICC in accordance with the Rules. The arbitration shall be administered by the
ICC acting through its International Court of Arbitration. The arbitration shall be conducted in the English language and the seat, or
place, of the arbitration shall be the city of New York, New York. Hearings shall be conducted in New York, New York, or at such other
location as mutually agreed by Parent and the Holder or Holders that are party to the arbitration proceeding. The arbitration award shall
be final, conclusive, binding and non-appealable and shall not be subject to further review by any court. The arbitrator shall have no
power to amend or supplement the terms of this Agreement or the Merger Agreement or act ex aequo et bono. Judgment upon the award
may be entered in any court having jurisdiction thereof. Each party shall bear his, her or its own costs of any such arbitration or investigation
in respect of any dispute. Any award payable in favor of the Holders or the Rights Agent as a result of arbitration shall be distributed
to the Holders on a pro rata basis, based on the number of CERs held by each Holder.

 

6.7            Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall
not affect the validity or enforceability of the remaining terms and provisions of this Agreement or the validity or enforceability of
the offending term or provision in any other situation or in any other jurisdiction. If a final judgment of a court of competent jurisdiction
declares that any term or provision of this Agreement is invalid or unenforceable, the parties hereto agree that the court making such
determination shall have the power to limit such term or provision, to delete specific words or phrases or to replace such term or provision
with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable
term or provision, and this Agreement shall be valid and enforceable as so modified. In the event such court does not exercise the power
granted to it in the prior sentence, the parties hereto agree to replace such invalid or unenforceable term or provision with a valid
and enforceable term or provision that will achieve, to the extent possible, the economic, business and other purposes of such invalid
or unenforceable term or provision.

 

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6.8           Termination. This Agreement shall be terminated and of no force or effect, the parties hereto shall have no liability hereunder
(other than with respect to monies due and owing by Parent to Rights Agent), and no payments shall be required to be made, upon the earlier
to occur of (a) the date that is six (6) months after the date of the CER Notice, (b) the date on which it is finally determined that
the Valuation Excess is less than or equal to $0, and (c) the date on which all CER Consideration is delivered to Holders in accordance
with this Agreement. Notwithstanding the foregoing, no such termination shall affect any rights or obligations accrued prior to the effective
date of such termination or Sections 5.1, 5.2, 5.3, 5.4, 6.4, 6.5, 6.6, 6.7, 6.9
or this Section 6.8, which shall survive the termination of this Agreement, or the resignation, replacement or removal of the Rights
Agent.

 

6.9           Entire Agreement; Counterparts. This Agreement, the Merger Agreement (including its Exhibits and Schedules, including Disclosure
Schedules) and the other Ancillary Documents constitute the entire agreement and supersede all contemporaneous and prior agreements and
understandings, both written and oral, among or between any of the parties hereto, with respect to the subject matter hereof and thereof.
This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which shall constitute one and the
same instrument. The exchange of a fully executed Agreement (in counterparts or otherwise) by PDF shall be sufficient to bind the parties
hereto to the terms and conditions of this Agreement.

 

[Remainder of Page Intentionally Left Blank]

 

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IN WITNESS WHEREOF, each of the parties
has caused this Agreement to be executed on its behalf by its duly authorized officers as of the day and year first above written.

 

	 	READY CAPITAL CORPORATION
	 	 	 
	 	By:	/s/ Andrew Ahlborn
	 	 	Name:	Andrew Ahlborn
	 	 	Title:	Chief Financial Officer
	 	 	 	 
	 	SUTHERLAND PARTNERS, L.P.
	 	 	 	 
	 	By:	Ready Capital Corporation,
	 	 	its General Partner
	 	 	 	 
	 	By:	/s/ Andrew Ahlborn
	 	 	Name:	Andrew Ahlborn
	 	 	Title:	Authorized Person

 

[Signature Page to Contingent Equity Rights Agreement]

 

    

     

    

 

 

	 	AMERICAN
    STOCK TRANSFER & TRUST COMPANY, LLC, as Rights Agent
	 	 	 
	 	 	 
	 	By:	/s/
    Michael Legregin
	 	 	Name:	Michael
    Legregin
	 	 	Title:	Senior Vice
    President

 

[Signature Page to Contingent Equity Rights
Agreement]

 

    

     

    

 

EXHIBIT A

Covered Portfolio

 

Subject Company Loans and Investments

 

CER Portfolio as of 9/30/2021

	 	 	 	 	 	 	 	 	 	 	 	Subject	 
	 	 	 	 	 	A-note	 	 	Co-Invest	 	 	Company	 
	Deal	 	Whole Loan Balance	 	 	Funded	 	 	Funded	 	 	Funded	 
	Timbers Kauai	 	 	17,980,413	 	 	 	8,990,207	 	 	 	7,132,697	 	 	 	1,857,509	 
	Vintage Oaks	 	 	30,050,000	 	 	 	 	 	 	 	 	 	 	 	30,050,000	 
	Superblock	 	 	34,510,000	 	 	 	 	 	 	 	 	 	 	 	34,510,000	 
	Metro Air	 	 	16,699,043	 	 	 	 	 	 	 	4,185,224	 	 	 	12,513,819	 
	RREAF III	 	 	8,714,679	 	 	 	 	 	 	 	 	 	 	 	8,714,679	 
	Hyatt Centric	 	 	43,000,280	 	 	 	 	 	 	 	23,600,000	 	 	 	19,400,280	 
	Park DTLA	 	 	25,376,222	 	 	 	 	 	 	 	 	 	 	 	25,376,222	 
	Cambria	 	 	35,309,146	 	 	 	 	 	 	 	17,653,893	 	 	 	17,655,253	 
	Silver Rock	 	 	35,998,544	 	 	 	 	 	 	 	18,000,000	 	 	 	17,998,544	 
	RREAF IV	 	 	10,629,829	 	 	 	 	 	 	 	 	 	 	 	10,629,829	 
	Aetna Springs	 	 	28,257,597	 	 	 	 	 	 	 	 	 	 	 	28,257,597	 
	Southlake	 	 	10,800,000	 	 	 	 	 	 	 	 	 	 	 	10,800,000	 
	Marbach	 	 	6,149,686	 	 	 	 	 	 	 	 	 	 	 	6,149,686	 
	Hawk Ridge	 	 	3,403,876	 	 	 	 	 	 	 	 	 	 	 	3,403,876	 
	Hyatt House	 	 	23,533,160	 	 	 	 	 	 	 	 	 	 	 	23,533,160	 
	Silo Ridge	 	 	42,564,737	 	 	 	 	 	 	 	 	 	 	 	42,564,737	 
	Pendry	 	 	123,196,757	 	 	 	42,327,896	 	 	 	70,866,841	 	 	 	10,002,020	 
	Duo	 	 	43,824,663	 	 	 	21,924,663	 	 	 	13,450,000	 	 	 	8,450,000	 
	Retreat	 	 	21,540,000	 	 	 	 	 	 	 	12,859,234	 	 	 	8,680,766	 
	Ashley	 	 	4,170,000	 	 	 	 	 	 	 	 	 	 	 	4,170,000	 
	Block 216	 	 	65,279,132	 	 	 	 	 	 	 	 	 	 	 	65,279,132	 
	Churchill	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Tower	 	 	52,587,216	 	 	 	38,916,251	 	 	 	 	 	 	 	13,670,965	 
	1111 Sunset	 	 	27,050,000	 	 	 	13,525,000	 	 	 	 	 	 	 	13,525,000	 
	Uncommons	 	 	71,114,466	 	 	 	 	 	 	 	 	 	 	 	71,114,466	 
	Merced	 	 	51,847,233	 	 	 	31,222,233	 	 	 	 	 	 	 	20,625,000	 
	Gardenhouse	 	 	36,842,520	 	 	 	24,842,520	 	 	 	 	 	 	 	12,000,000	 
	Vista Lake	 	 	26,743,313	 	 	 	 	 	 	 	 	 	 	 	26,743,313	 
	Sovereign	 	 	8,470,938	 	 	 	 	 	 	 	2,625,000	 	 	 	5,845,938	 
	RREAF Sunbelt	 	 	108,422,898	 	 	 	60,000,000	 	 	 	 	 	 	 	48,422,898	 
	 	 	 	1,014,066,347	 	 	 	241,748,770	 	 	 	170,372,888	 	 	 	601,944,690	 

 

    

     

    

 

EXHIBIT B

Form of CER Notice

 

    

     

    

 

American Stock Transfer & Trust Company, LLC

6201 15th
Avenue

Brooklyn, NY 11219

Attn: Corporate Actions

 

Re:          CER Notice

 

Reference
is made to the Contingent Equity Rights Agreement, dated as of March 16, 2022 (the “CER Agreement”) between Ready
Capital Corporation (“Parent”), Sutherland Partners, L.P. (the “Operating Partnership”), and American
Stock Transfer & Trust Company, LLC (the “Rights Agent”). Capitalized terms used but not defined herein shall
have the meanings ascribed to them in the CER Agreement.

 

As set forth in Exhibit
A hereto, and in accordance with Section 2.4(a) of the CER Agreement, Parent has calculated the Valuation Excess to be $[●],
the Aggregate CER Consideration to be $[●], the Parent Share Value to be $[●], the MREC CER Payment Ratio to be [●],
the MREC TE CER Payment Ratio to be [●] and the MREC IIS CER Payment Ratio to be [●]. This notice constitutes the written
notice required by Section 2.4(b) of the CER Agreement.

 

	 	Very truly yours,
	 	 	 
	 	READY CAPITAL CORPORATION
	 	 
	 	 	 
	 	By:	/s/ Andrew Ahlborn
	 	Name:	Andrew Ahlborn
	 	Title:	Chief Financial Officer

 

    

     

    

 

EXHIBIT A

 

Valuation Excess:

 

$[●]

 

Parent Share Value:

 

$[●]

 

CER Consideration:

 

MREC CER Payment Ratio:

 

[●]

 

MREC TE CER Payment Ratio:

 

[●]

 

MREC IIS CER Payment Ratio:

 

[●]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00342-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00342-of-00352.parquet"}]]