A summary of the terms of the management agreement is below: | | | Manager | SFTY Manager, LLC, a wholly-owned subsidiary of iStar Inc. | Management Fee | Annual fee of 1.0% of total equity (up to $1.5 billion)
Annual fee of 1.25% of total equity (for incremental equity of $1.5 billion to $3.0 billion)
Annual fee of 1.375% of total equity (for incremental equity of $3.0 billion to $5.0 billion) and
Annual fee of 1.5% of total equity (for incremental equity over $5.0 billion) | Management Fee Consideration | At the discretion of the Company's independent directors, payment will be made in cash or in shares of the Company's common stock (valued at the greater of: (i) the volume weighted average market price during a specified pricing period; or (ii) the initial public offering price of $20.00 per share) | Lock-up | Restriction from selling common stock received for management fees for two years from the date of such issuance (restriction will terminate in the event of and effective with the termination of the management agreement) | Management Fee Waiver | No management fee was paid to the Manager during the first year (through June 30, 2018) | Incentive Fee | None | Term(1) | Non-terminable through June 30, 2023, except for cause. Automatic annual renewals thereafter, subject to non-renewal upon certain findings by the Company's independent directors and payment of termination fee. | Termination Fee | 3x prior year's management fee |
_______________________________________________________________________________ (1) The management agreement was extended by one year to June 30, 2023 in January 2020.
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