SABRA HEALTH CARE REIT, INC. 2014 BONUS PLAN

This Sabra Health Care REIT, Inc. 2014 Bonus Plan (this “Bonus Plan”) sets forth the terms of the fiscal 2014 annual incentive bonus opportunity for employees selected to participate in this Bonus Plan (each, a “Participant”). For Participants who are expected to be impacted by the deductibility limits of Section 162(m) (“Section 162(m)”) of the United States Internal Revenue Code of 1986, as amended (the “Code”), this Bonus Plan is intended to provide bonuses that qualify as performance-based compensation within the meaning of Section 162(m). With respect to Participants who are expected to be impacted by the deductibility limits of Section 162(m), this Bonus Plan is adopted under Section 5.2 of the Sabra Health Care REIT, Inc. 2009 Performance Incentive Plan (the “Plan”), and bonuses payable under this Bonus Plan to such Participants shall be subject to all of the terms and conditions of the Plan applicable to Performance-Based Awards. Capitalized terms are defined in the Plan if not defined herein.

This Bonus Plan shall be administered by the Compensation Committee of the Board (the “Committee”), which shall consist solely of two or more members of the Board who are “outside directors” within the meaning of Section 162(m). The Committee shall act as the Administrator of this Bonus Plan, and shall have all of the administrative authority and powers with respect to this Bonus Plan as specified in the Plan.

Each Participant will be granted an “Award” under this Bonus Plan. Each Award granted to a Participant represents the opportunity to receive a payment for the Corporation’s 2014 fiscal year (the “Performance Period”) determined under the terms and conditions of this Bonus Plan (a “Bonus”). The Committee shall establish the target amount of each Participant’s Bonus prior to or during the first ninety (90) days of the Performance Period, although the target Bonus amount for Participants selected to participate in this Bonus Plan after this period may be established at a later date. For Participants other than the Section 162(m) Officers (as defined below), the Committee may delegate to the Corporation’s President and Chief Executive Officer the authority to establish the target amount of each such Participant’s Bonus.

In no case, however, shall the amount of any Section 162(m) Officer’s Bonus exceed the applicable limit set forth in Section 5.2.3 of the Plan.

Subject to the limits of Section 3 and the provisions of this Section 4, the amount of each Participant’s Bonus shall be based upon the amount of the Corporation’s Adjusted Normalized FFO (as defined below) achieved during the fourth (4^th) quarter of the Performance Period as a percentage of the targeted amount of Adjusted Normalized FFO for the fourth (4th) quarter of the Performance Period as follows:

If the amount of the Corporation’s Adjusted Normalized FFO achieved for the fourth (4th) quarter of the Performance Period is between the threshold level and the target level, or between the target level and the maximum level, the percentage of each Participant’s target bonus amount becoming payable as a Bonus shall be pro-rated on a straight-line basis between the closest two percentages listed in the table above. The Committee shall establish the threshold, target and the maximum Adjusted Normalized FFO levels for the fourth (4th) quarter of the Performance Period prior to or during the first ninety (90) days of the Performance Period.

Notwithstanding the other provisions of this Section 4, the Committee has discretion to reduce (but not increase) the Bonus otherwise payable to any one or more Participants based on the amount of the Corporation’s Adjusted Normalized FFO achieved. The Committee may exercise such discretion on any basis it deems appropriate.

For purposes of this Bonus Plan, “Adjusted Normalized FFO” means the Corporation’s funds from operations during the fourth (4^th) quarter of the Performance Period, as prescribed by the National Association of Real Estate Investment Trusts as in effect on the first day of the fourth (4^th) quarter of the Performance Period, adjusted to eliminate the impact of (1) non-recurring items, including without limitation the write off of deferred financing fees, contingent consideration adjustments and other similar items as determined by the Committee, (2) non-cash compensation expense, (3) cash bonuses payable to the Corporation’s officers and employees, (4) transaction costs in connection with investment activity and capital markets activity, (5) discontinued operations, (6) the purchase or disposition of a business or similar extraordinary corporate transaction and (7) any change in accounting policies or practices

If any Participant is selected to participate in this Bonus Plan after the first quarter of the Performance Period has elapsed, the Committee shall have the discretion to make appropriate pro-rata adjustments to the target amount of the Participant’s Bonus, the Adjusted Normalized FFO targets contained in Section 4 and to any of the other terms and conditions of this Bonus Plan.

As soon as practicable after the end of the Performance Period, the Committee shall determine the amount of the Corporation’s EPS attained for the Performance Period and the amount of Adjusted Normalized FFO achieved for the fourth (4^th) quarter of the Performance Period. At this time, the Committee shall also determine the amount of each Participant’s Bonus payable pursuant to this Bonus Plan. No Bonus shall be paid to a Section 162(m) Officer unless and until the Committee has certified, by resolution or other appropriate action in writing, (1) that the EPS Target has been achieved, (2) the amount of Adjusted Normalized FFO achieved for the fourth (4^th) quarter of the Performance Period as a percentage of the targeted level of Adjusted Normalized FFO established for the fourth (4^th) quarter of the Performance Period, (3) the amount of the Bonus earned by each Section 162(m) Officer and (4) that any other material terms previously established by the Committee or set forth in this Bonus Plan applicable to the Bonus were in fact satisfied.

Unless otherwise provided in a Participant’s employment agreement with the Corporation, a Participant must remain continuously employed by the Corporation or one of its Subsidiaries through the last day of the Performance Period in order for any Bonus to become payable pursuant to this Bonus Plan. Unless otherwise provided in a Participant’s employment agreement with the Corporation, if a Participant terminates employment with the Corporation or one of its Subsidiaries for any reason prior to the last day of the Performance Period, all of the Participant’s rights under this Bonus Plan will automatically terminate.

Any Bonuses becoming payable pursuant to this Bonus Plan shall be paid to each Participant as soon as practicable following the end of the Performance Period and, for Section 162(m) Officers, after the Committee’s certification described in Section 6 above, with all Bonuses to be paid no later than March 11, 2015. For any Participant who failed to make any election with respect to this Bonus Plan or who previously elected to receive payment of any Bonus becoming payable pursuant to this Bonus Plan in cash, his or her Bonus shall be paid in cash. For any Participant who previously elected to receive payment of any Bonus becoming payable pursuant to this Bonus Plan in shares of Common Stock, his or her Bonus shall be paid in a number of shares of Common Stock equal to (x) the amount of the Bonus divided by (y) the closing price of a share of Common Stock on December 31, 2013 (such number of shares, the “Earned Shares”). As part of the Participant’s Bonus, any Participant receiving payment in shares of Common Stock shall also be paid an additional number of shares of Common Stock equal to (1) the aggregate amount of any ordinary cash dividends paid on the Earned Shares for which the record date is between January 1, 2014 and the date the Earned Shares are paid divided by (2) the closing price of a share of Common Stock on the date immediately preceding the date the Earned Shares are paid.

Any Awards granted under this Bonus Plan, together with any shares of Common Stock payable pursuant to this Bonus Plan, shall be subject to the adjustment and corporate transaction provisions of Section 7 of the Plan.

Any Bonuses becoming payable pursuant to this Bonus Plan shall be subject to the terms of the Corporation’s recoupment, clawback or similar policy as it may be in effect from time to time, as well as any similar provisions of applicable law, any of which could in certain circumstances require repayment or forfeiture of the Bonuses or any shares of Common Stock or other cash or property received with respect to the Bonuses (including any value received from a disposition of the shares acquired upon payment of the Bonuses).