Document:

Exhibit

EMPLOYMENT AGREEMENT
EMPLOYMENT AGREEMENT (“Agreement”), entered into as of December 29, 2017 (the “Effective Date”), by and between AIMCO Properties, L.P., a Delaware limited Partnership (the “Partnership”), and Terry Considine (the “Executive”).
W I T N E S S E T H:
WHEREAS, the Executive possesses unique personal knowledge, experience and expertise concerning the business and operations conducted by Apartment Investment and Management Company (the “Company”) through the Partnership and other entities (the “Company Group”);
WHEREAS, the Company’s wholly-owned subsidiary, AIMCO-GP, Inc., is the general partner of the Partnership (the “General Partner”);
WHEREAS, the Partnership and the Executive have previously entered into an employment agreement, effective as of December 29, 2008 (the “Prior Agreement”);
WHEREAS, the Partnership desires to continue to employ the Executive, and the Executive desires to continue to be employed by the Partnership, upon the terms and subject to the conditions set forth in this Agreement; and
WHEREAS, effective as of the Effective Date, the Partnership and the Executive desire to enter into this Agreement as to the terms and conditions of the Executive’s continued employment with the Partnership.
NOW, THEREFORE, in consideration of the covenants and agreements hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1.EMPLOYMENT AND DUTIES.
1.1    Term of Employment. The Executive’s term of employment under this Agreement shall commence on the Effective Date and shall continue until December 31, 2019, unless further extended or earlier terminated as provided in this Agreement. The period of time between the Effective Date and the termination of the Executive’s employment under this Agreement shall be referred to herein as the “Employment Term.”
1.2    General.
(a)    During the Employment Term, the Executive shall have the titles of Chief Executive Officer and President of the General Partner and the Company (except as provided herein below) and shall have the authorities, duties and responsibilities customarily exercised by an individual serving in these positions in a corporation of the size and nature of the Company and such other authorities, duties and responsibilities as may from time to time be delegated to him by the Board of Directors of the Company (the “Board”) that are consistent with the foregoing. If 

requested by the Board or the Executive, the Executive will work with the Board to identify a person to serve as President of the Company reporting directly and solely to the Executive and, upon the appointment of such person, the Executive shall cease to have the title of President and the associated authorities, duties and responsibilities of President shall be exercised by such successor, subject to the authority of the Executive as Chief Executive Officer. The Executive shall faithfully and diligently discharge his duties hereunder and use his best efforts to implement the policies established by the Board from time to time. During the Employment Term, the Executive shall be the highest ranking executive of the Company and no other officer will be appointed with authority over the Executive, and the Executive shall report directly to the Board. Subject to the foregoing, the Executive shall continue to serve as a member of the Board and as Chairman of the Board, provided, that the Board reserves the right to remove him as Chairman and to appoint another member of the Board as non-executive Chairman, with the associated authorities, responsibilities and duties, if (i) the Executive is prohibited from serving as Chairman or on the Board by legislative or regulatory requirements, or (ii) the Executive is not elected to the Board. If requested by the Board, the Executive shall serve as a director and/or officer of, and provide services commensurate with his position to, subsidiaries and affiliates within the Company Group for no additional compensation; in which case, the indemnification and insurance described in Section 7 below shall also apply to such services.
(b)    The Executive shall, as in the past, devote substantially all of his business time, attention, knowledge and skills faithfully, diligently and to the best of his ability, in furtherance of the business and activities of the Company Group; provided, however, that subject to the terms set forth below, the Executive shall not be precluded from devoting reasonable periods of time required for:
		
	(i)
	serving as a director or member of a committee of up to two (2) for profit entities, one of which as of the date hereof is Intrepid Potash, Inc. (if a director of such entity), that do not, in the good faith determination of the Board, compete with the Company Group;

		
	(ii)
	delivering lectures, fulfilling speaking engagements, and any writing or publication relating to his area of expertise;

		
	(iii)
	engaging in professional organization and program activities;

		
	(iv)
	managing his personal passive investments and affairs; and

		
	(v)
	participating in non-profit charitable or community affairs; provided, that such activities do not materially, individually or in the aggregate, interfere with the due performance of his duties and responsibilities under this Agreement or create a conflict of interest with the business of the Company Group, as determined in good faith by the Board from time to time after consultation with the Executive (in which case, upon such finding, the Executive shall cease such activities within a reasonable time considering the circumstances).

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1.3    Reimbursement of Expenses. During the Employment Term, the Partnership shall pay the reasonable expenses incurred by the Executive in the performance of his duties hereunder, including, without limitation, those incurred in connection with business related travel or entertainment, or, if such expenses are paid directly by the Executive, the Partnership shall promptly reimburse him for such payments, provided, that the Executive properly accounts for such expenses in accordance with the Partnership’s business expense reimbursement policy. To the extent any such reimbursements (and any other reimbursements of costs and expenses provided for herein) are includable in the Executive’s gross income for Federal income tax purposes, all such reimbursements shall be made no later than March 15 of the calendar year next following the calendar year in which such reimbursable expenses are incurred.
2.    COMPENSATION.
2.1    Base Salary. During the Employment Term, the Executive shall be entitled to receive as a guaranteed payment a base salary at a rate of seven hundred thousand dollars ($700,000.00) per annum, with such increases (but no decreases) as may be determined by the Board from time to time (as increased from time to time, the “Base Salary”), which shall be payable in accordance with the payroll practices of the Company. The Compensation Committee of the Board (the “Compensation Committee”) will review the Executive’s Base Salary for increase annually, commencing February, 2018.  The Board and the Executive may agree from time to time that, in lieu of cash Base Salary, the Executive shall receive as a guaranteed payment stock options (with an exercise price equal to the fair market value of the underlying shares at the time of grant), with a value (as determined by the Compensation Committee) equal to the foregone Base Salary and subject to such other terms as the parties agree (the “Stock Options”). Any Stock Options awarded pursuant to this Section 2.1 shall be granted to the Executive no later than March 15 of the calendar year in which the foregone Base Salary is to be earned. The amount of Base Salary shall be determined by the Compensation Committee, in its discretion, after reviewing the base salary of those individuals with comparable responsibilities in the peer group identified in the Partnership’s latest proxy materials (the “Peer Group”), taking into consideration such additional factors as the Committee may determine in its discretion.
2.2    Short-Term Incentive.  (a) In addition to Base Salary (including any Stock Options), the Executive shall participate in the Company Group’s incentive compensation plan and thereunder be eligible to receive an annual short-term incentive (the “STI”) for each completed or partial calendar year (the “STI Period”) (subject to Section 5.4 hereof) of the Company Group during the Employment Term. The amount of the STI will be dependent on, among other factors, the achievement of certain performance levels by the Company Group, as determined by the Compensation Committee in its sole discretion. The STI opportunity shall not be less than $1.4 million (the “Target STI”), provided the applicable achievement targets are met.  The amount of Target STI shall be determined by the Board, in its discretion, after reviewing to the short-term incentive compensation of those individuals with comparable responsibilities in the Peer Group, taking into consideration such other factors as the Compensation Committee may determine in its discretion.

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(a)    Any STI earned shall be payable in cash and/or in the form of an equity award (the “Annual Equity Award”), the choice of form of payment of which as shall be determined by the Compensation Committee in its sole discretion. The cash portion of the STI shall be paid and the Annual Equity Award portion shall be awarded as soon as reasonably practicable following the Compensation Committee’s review of the Executive’s performance for the most recently completed STI Period, and in accordance with the Company’s normal payroll practices for the payment of annual bonuses to senior executives, provided such payment and award is made by March 15 of the calendar year following the calendar year in which the STI is earned. The Compensation Committee shall use reasonable business efforts to meet for the purposes of such review. Except as otherwise expressly provided in Section 5, any Annual Equity Award shall be on such terms as established by the Compensation Committee in its sole discretion. As provided in Section 5.4(a) hereof, if the Executive is not employed upon the payment date for STI for a particular calendar year, he shall be entitled to a pro-rata portion of the STI that would otherwise be paid for that year (based on the portion of the Performance Period he was employed); provided, however, if the Executive terminated his employment without Good Cause before the end of the Performance Period or is terminated for Cause, he will not be eligible to receive a prorated STI for the STI Period in which he incurs such termination. 
2.3    Long-Term Incentive.
(a)    In addition to Base Salary (and any Stock Options in lieu of Base Salary as provided in Section 2.1 hereof) and STI, the Executive shall be eligible to participate in the Company Group’s long-term incentive compensation plan and thereunder be eligible to receive an annual long-term incentive (the “LTI”) for each calendar year (the “LTI Period”) (subject to Section 5.4 hereof) of the Company Group during the Employment Term.  The target LTI opportunity shall not be less than $4.025 million (the “Target LTI”).  The amount of Target LTI shall be determined by the Compensation Committee, in its discretion, after reviewing the long-term incentive compensation awards of those individuals with comparable responsibilities in the Peer Group taking into consideration such other factors as the Compensation Committee may determine in its discretion.  
2.4    Additional Compensation. During the Employment Term, in addition to the foregoing, the Executive shall be eligible to receive such other compensation, if any, as may from time to time be awarded him by the Board (or the Compensation Committee), in its sole discretion.
3.    PLACE OF PERFORMANCE. In connection with his employment by the Partnership, the Executive shall be based at the Company’s principal executive offices in Denver, Colorado.
4.    EMPLOYEE BENEFITS AND PERQUISITES.
4.1    Benefit Plans. During the Employment Term, the Executive shall be eligible to participate on the terms and conditions, including eligibility, no less favorable than provided to other senior executives of the Company in all employee benefit plans, programs or arrangements, which shall be established or maintained by the Company Group generally for its employees, or generally made available to its senior executives.

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4.2    Vacation. The Executive shall be entitled to not less than four (4) weeks of vacation at full pay for each year during the Employment Term. Such vacation may be taken in the Executive’s discretion, and at such time or times as are not inconsistent with the reasonable business needs of the Company. Unused vacation days shall expire on December 31 of each year and the Executive shall not be paid for any such unused vacation days.
5.    TERMINATION OF EMPLOYMENT.
5.1    General. The Executive’s employment under this Agreement may be terminated without any breach of this Agreement only on the following circumstances:
(a)    Death. The Executive’s employment under this Agreement shall terminate upon his death.
(b)    Disability. If the Executive suffers a Disability (as defined below), the Board may terminate the Executive’s employment under this Agreement upon thirty (30) days prior written notice; provided, that the Executive has not returned to full time performance of his duties during such thirty (30) day period. For purposes hereof, “Disability” shall mean Executive’s incapacity due to physical or mental illness, where the Executive has been unable to substantially perform his essential duties hereunder as a result thereof for a period of six (6) consecutive months or 180 days within a 365-day period. Notwithstanding the foregoing, in the event as a result of his incapacity due to physical or mental illness the Executive incurs a separation from service pursuant to Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations and guidance promulgated thereunder (collectively “Code Section 409A”), the Executive’s employment shall immediately terminate for Disability.
(c)    Good Reason. The Executive may terminate his employment hereunder for Good Reason. For purposes of this Agreement, the term “Good Reason” shall mean:
		
	(i)
	a reduction in the Executive’s Base Salary, Target STI opportunity, or Target LTI opportunity;

		
	(ii)
	any material diminution of the level of responsibility (including reporting responsibility) or authority of the Executive, except as permitted by Section 1.2(a) hereof; 

		
	(iii)
	any adverse change in the Executive’s titles or positions, except as permitted by Section 1.2(a) hereof;

		
	(iv)
	the failure to obtain from any successor to the Partnership an assumption of the obligations of the Partnership under this Agreement;

		
	(v)
	the failure to nominate the Executive to the Board (other than for Cause, Disability or incapacity), provided that, the failure to elect the Executive to the Board shall not constitute Good Reason;

		
	(vi)
	any material breach of the Agreement by the Company Group; or

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	(vii)
	requiring the Executive to be based at any office or location that is both more than fifty miles from the Executive’s current location and is further from the Executive’s home at the time of the relocation; 

provided, that with respect to any event specified above in this Section 5.1(c), the Executive delivers written notice to the Board within ninety (90) days following the date on which the Executive first knows of the event constituting Good Reason, which notice specifically identifies the facts and circumstances claimed by the Executive to constitute Good Reason, and the Company Group has failed to cure such facts and circumstances within thirty (30) days after receipt of such notice. The Executive’s termination of employment hereunder for Good Reason shall occur not later than 121 days following the date on which the Executive first knows of the event constituting Good Reason.
(d)    Without Good Reason. The Executive may voluntarily terminate his employment under this Agreement without Good Reason upon Notice of Termination (as defined below) by the Executive to the Board at least ninety (90) days prior to the Date of Termination in accordance with Sections 5.2 and 5.3 below, provided that the Board, in its sole discretion, may make such termination effective earlier than the date set forth in the Notice of Termination, which shall not be considered to be a termination of the Executive by the Company.
(e)    Cause. The Board may terminate the Executive’s employment under this Agreement for Cause. Termination for “Cause” shall mean termination of Executive’s employment because of the occurrence of any of the following as determined by the Board in accordance with the procedure below:
		
	(i)
	the refusal by the Executive to attempt in good faith to perform his duties under this Agreement or to follow the lawful direction of the Board (other than due to the Executive’s physical or mental incapacity); provided, however, that the Board shall have provided the Executive with written notice of such failure and the Executive has been afforded at least fifteen (15) days to cure same;

		
	(ii)
	the Executive’s conviction of or plea of guilty or nolo contendere to, a felony or any other serious crime involving moral turpitude or dishonesty;

		
	(iii)
	the Executive’s willfully engaging in misconduct in the performance of his duties for the Company Group (including theft, fraud, embezzlement, securities law violations, a material violation of the Company Group’s code of conduct or a material violation of other material written policies) that is demonstrably injurious to the Company Group, monetarily or otherwise;

		
	(iv)
	the Executive’s willfully engaging in misconduct unrelated to the performance of his duties for the Company Group that is demonstrably injurious to the Company Group, monetarily or otherwise;

		
	(v)
	the material breach of this Agreement by the Executive, the Executive’s breach of any fiduciary obligation to the Company or Company Group or 

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the Executive’s material breach of any obligation of confidentiality, noncompetition or nonsolicitation; provided, however, that the Board shall have provided the Executive with written notice of any such breach and the Executive shall have failed to cure such breach within fifteen (15) days of such notice.
For purposes of this Section 5.1(e), no act, or failure to act, on the part of the Executive shall be considered “willful” unless done, or omitted to be done, by him in bad faith and without reasonable belief that his action or omission was in the best interest of the Company Group. No action or inaction by the Executive shall be treated as Cause if it was taken at the direction of counsel to the Company or Company Group. Any termination shall be treated as a termination for Cause only if (i) the Executive is given at least five (5) business days written Notice of Termination specifying the alleged Cause event in accordance with Section 5.2 and shall have the opportunity to appear (with counsel) before the full Board to present information regarding his views on the Cause event, and (ii) after such hearing, he is terminated for Cause by at least a majority vote of the full Board (other than the Executive). After providing the Notice of Termination in the foregoing sentence, the Board may suspend the Executive with full pay and benefits until a final determination pursuant to this section has been made.
(f)    Without Cause. The Board may terminate the Executive’s employment under this Agreement without Cause immediately upon Notice of Termination by the Board to the Executive, other than for death or Disability.
(g)    Retirement.  “Retirement” means either (i) the Executive’s termination of employment upon the expiration of the Employment Term or (ii) the Executive’s voluntarily termination of  his employment under this Agreement without Good Reason upon Notice of Termination (as defined below) by the Executive to the Board at least six (6) months prior to the Date of Termination in accordance with Sections 5.2 and 5.3 below, provided that the Board, in its sole discretion, may make such termination described in clause (ii)  effective earlier than the date set forth in the Notice of Termination, which shall not be considered to be a termination of the Executive’s employment by the Company.  A termination in accordance with this Section 5.1(g) shall be considered to be a Retirement and not a Termination without Good Reason.
5.2    Notice of Termination. Any termination of the Executive’s employment by the Board or by the Executive (other than termination by reason of the Executive’s death) shall be communicated by written Notice of Termination to the other party of this Agreement. For purposes of this Agreement, a “Notice of Termination” shall mean a written notice which shall indicate (a) the specific termination provision in this Agreement relied upon, (b) the Date of Termination as defined in Section 5.3 below, and (c) the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated, set forth in reasonable detail.
5.3    Date of Termination. The “Date of Termination” shall mean (a) if the Executive’s employment is terminated by his death, the date of his death, (b) if the Executive’s employment is terminated pursuant to Section 5.1(b) above (other than pursuant to the last sentence thereof), thirty (30) days after Notice of Termination is given (provided that the Executive shall not 

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have returned to the performance of his duties on a full-time basis during such thirty (30) day period), (c) if the Executive’s employment is terminated pursuant to Sections 5.1(c) or 5.1(e) above, the date specified in the Notice of Termination after the expiration of any applicable cure periods, (d) if the Executive’s employment is terminated pursuant to Section 5.1(d) above, the date specified in the Notice of Termination which shall be at least ninety (90) days after Notice of Termination is given, or such earlier date as the Board shall determine, in its sole discretion, (e) if the Executive’s employment is terminated pursuant to Section 5.1(f), the date on which a Notice of Termination is given, and (f) if the Executive’s employment is terminated pursuant to Section 5.1(g) above, the date specified in the Notice of Termination which shall be at least six (6) months after Notice of Termination is given, or such earlier date as the Board shall determine, in its sole discretion.
5.4    Compensation and Benefits Upon Termination.
(a)    Termination for Cause or without Good Reason (other than due to Retirement).  If the Executive’s employment shall be terminated for any reason, the Executive shall receive from the Partnership:  (i) any earned but unpaid Base Salary through the Date of Termination, paid in accordance with the Company’s normal payroll practices; (ii) reimbursement for any unreimbursed expenses properly incurred through the Date of Termination, payable in accordance with Section 1.3; (iii) such vested accrued benefits, and other payments, including, but not limited to, accrued but unpaid vacation days in accordance with Company Group policy, if any, as to which the Executive (and his eligible dependents) may be entitled under, and in accordance with the terms and conditions of, the employee benefit arrangements, plans and programs of the Company Group as of the Date of Termination; and (iv) any STI earned but unpaid for a prior fiscal year, paid in accordance with Section 2.2, payable in a lump sum in cash; (items (i) though (iv), the “Amounts and Benefits”), and the Company Group shall have no further obligation with respect to this Agreement other than as provided in Sections 7 and 8 of this Agreement. 
(b)    Termination without Cause or for Good Reason.  If, prior to the expiration of the Employment Term, the Executive resigns from his employment hereunder for Good Reason or the Board terminates the Executive’s employment hereunder without Cause (other than a termination by reason of death or Disability), then the Board shall pay or provide the Executive the Amounts and Benefits and, subject to Sections 5.4(h) and 8.8:
		
	(i)
	subject to Section 8.8(b), an amount equal to the sum of (x) three (3) times the Base Salary as then in effect and (y) the Target STI (the “Severance Amount”), paid in a lump sum on the sixtieth day following the Date of Termination, provided that, if the Executive violates the covenants in Section 6 hereof, no further payment shall be due under this subsection (i), or, if the Severance Amount has already been paid, the Executive shall repay to the Partnership an amount equal to 1/24 of the paid amount for each month between the date of the violation and the second anniversary of the Date of Termination;

		
	(ii)
	subject to Section 8.8(b), a pro-rata portion of the STI the Executive would otherwise have earned for the year of termination based on the actual achievement of the applicable performance targets, and with respect to full 

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year performance targets, the performance results shall be annualized (determined by multiplying such amount of STI by a fraction, the numerator of which is the number of days during the fiscal year of termination that the Executive is employed by the Company Group and the denominator of which is 365), paid in cash in a lump sum on the sixtieth day following the Date of Termination (the “Pro Rata STI”); 
		
	(iii)
	immediate full vesting of any portion of the outstanding Stock Options and Annual Equity Awards that is unvested on the Date of Termination, and all outstanding stock option awards shall remain exercisable until the earlier to occur of the expiration of the applicable option term, and any violation by the Executive of the covenants contained in Section 6 hereof; and

		
	(iv)
	Executive shall be entitled to continued medical coverage at the Partnership’s expense for the Executive and his spouse and other eligible dependents under the Company Group’s medical, dental and vision plan until the earlier of (x) eighteen (18) months following the Date of Termination, and (y) the Executive becoming eligible for coverage under the health, dental or vision insurance plan, as applicable, of a subsequent employer, provided that such period of continued medical coverage shall constitute coverage under COBRA, and provided further that in the event the Executive’s coverage terminates pursuant to (x), the Partnership shall pay the Executive a lump sum payment equal to six (6) times the monthly COBRA premium then in effect within thirty (30) days of such termination of coverage (the benefits provided under this Section 5.4(b)(iv), the “Medical Continuation Benefits”).

(c)    Change in Control. For purposes of this Agreement, a “Change in Control” shall be deemed to occur upon any of the following events:
		
	i.
	an acquisition (other than directly from the Company) of any voting securities of the Company (the “Voting Securities”) by any “person” (as the term “person” is used for purposes of Section 13(d) or Section 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) immediately after which such person has “beneficial ownership” (within the meaning of Rule 13d‐3 promulgated under the Exchange Act) (“Beneficial Ownership”) of 50% or more of the combined voting power of the Company’s then outstanding Voting Securities; provided, however, in determining whether a Change in Control has occurred, Voting Securities that are acquired in a Non-Control Acquisition (as hereinafter defined) shall not constitute an acquisition that would cause a Change in Control.  “Non-Control Acquisition” shall mean an acquisition (A) by or under an employee benefit plan (or a trust forming a part thereof) maintained by (1) the Company or (2) any corporation, partnership or other person of which a majority of its voting power or its equity securities or equity interest is owned directly or 

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indirectly by the Company or in which the Company serves as a general partner or manager (a “Subsidiary”), (B) by the Company or any Subsidiary, or (C) by any person in connection with a Non-Control Transaction (as hereinafter defined).  “Non-Control Transaction” shall mean a merger, consolidation, share exchange or reorganization involving the Company, in which (1) the stockholders of the Company, immediately before such merger, consolidation, share exchange or reorganization, own, directly or indirectly immediately following such merger, consolidation, share exchange or reorganization, at least 50% of the combined voting power of the outstanding voting securities of the corporation that is the successor in such merger, consolidation, share exchange or reorganization (the “Surviving Company”) in substantially the same proportion as their ownership of the Voting Securities immediately before such merger, consolidation, share exchange or reorganization, and (2) the individuals who were members of the Board of Directors of the Company immediately prior to the execution of the agreement providing for such merger, consolidation, share exchange or reorganization constitute at least 50% of the members of the board of directors of the Surviving Company; 
		
	ii.
	the individuals who constitute the Board as of the date hereof (the “Incumbent Board”) cease for any reason to constitute at least 50% of the Board; provided, however, that if the election, or nomination for election by the Company’s stockholders, of any new director was approved by a vote of at least two-thirds of the Incumbent Board, such new director shall be considered as a member of the Incumbent Board; provided, further, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual or threatened “election contest” (as described in Rule 14a-11 promulgated under the Exchange Act) (an “Election Contest”) or other actual or threatened solicitation of proxies or consents by or on behalf of a person other than the Board of Directors (a “Proxy Contest”) including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest; or 

		
	iii.
	the consummation of any of the following: (A) a merger, consolidation, share exchange or reorganization involving the Company (other than a Non-Control Transaction); (B) a complete liquidation or dissolution of the Company; or (C) an agreement for the sale or other disposition of all or substantially all of the assets of the Company to any person (other than a transfer to a Subsidiary).

Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because any person (a “Subject Person”) acquired Beneficial Ownership of more than the permitted amount of the outstanding Voting Securities as a result of the acquisition of Voting Securities by the Company that, by reducing the number of Voting Securities outstanding, increases the proportional number 

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of shares Beneficially Owned by such Subject Person, provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of Voting Securities by the Company, and after such share acquisition by the Company, such Subject Person becomes the Beneficial Owner of any additional Voting Securities that increases the percentage of the then outstanding Voting Securities Beneficially Owned by such Subject Person, then a Change in Control shall occur.
(d)    Termination upon Death.  In the event of the Executive’s death, (i) the Partnership shall pay or provide to the Executive’s estate the Amounts and Benefits and the Pro Rata STI, and (ii) all equity-based and other long-term incentive awards granted to the Executive shall become immediately fully vested and treated in accordance with the terms of the applicable award agreement.
(e)    Termination upon Disability.  In the event the Executive’s employment hereunder terminates for reason of Disability, the Partnership shall pay or provide to the Executive: (i) the Amounts and Benefits, (ii) subject to Section 8.8(b), the Severance Amount, provided that to the extent the Executive is receiving income replacement payments under a Company Group long-term disability insurance plan (“LTD Payments”), the Severance Amount shall be offset by the amount of the LTD Payments, based on the monthly installment of the Severance Amount due hereunder and the monthly installment of the LTD Payments due to the Executive for each such month during the same period, provided that the intent is that the Executive receive an aggregate amount equal to the Severance Amount for each month, and that any cross offset shall be ignored for a month to the extent it would reduce such aggregate amount, (iii) subject to Section 8.8(b), a Pro Rata STI and (iv) the Medical Continuation Benefits.  All equity-based and other long-term incentive awards granted to the Executive shall become immediately fully vested treated in accordance with the terms of the applicable award agreement.
(f)    Termination upon Retirement.  In the event the Executive’s employment hereunder terminates for reason of Retirement, the Partnership shall pay or provide to the Executive: (i) the Amounts and Benefits, (ii) the Pro-Rata STI and (iii) Accelerated Vesting of Stock Options and Annual Equity Awards that are unvested on the Date of Termination.  For purposes of this Section 5.4(f), “Accelerated Vesting” means (A) the Executive’s Stock Options and Annual Equity Awards that vest solely on a time basis would completely vest and (B) the Executive’s Stock Options and Annual Equity Awards that vest based on the achievement of performance goals shall remain outstanding and eligible to vest (without proration) according to actual achievement of the applicable performance targets. 
(g)    No Mitigation or Offset. Except as provided under Section 5.4(b)(iv) above, the Executive shall not be required to mitigate the amount of any payment provided for in this Section 5.4 by seeking other employment or otherwise, nor shall the amount of any payment provided for in this Section 5.4 be reduced by any compensation earned by the Executive as the result of employment by another employer or business or by profits earned by the Executive from any other source at any time before and after the Date of Termination. The Partnership’s obligation to make any payment pursuant to, and otherwise to perform its obligations under, this Agreement shall not be affected by any offset, counterclaim or other right that the Company Group may have against 

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the Executive for any reason (except that the foregoing shall not impact the provisions hereof regarding ceasing of obligations upon the Executive’s violation of Section 6 hereof).
(h)    Release. Notwithstanding any provision to the contrary in this Agreement, the Partnership’s obligation to pay or provide the Executive with the payments and benefits under Section 5.4(b) (other than the Amounts and Benefits), and any acceleration of the Stock Options and Annual Equity Awards under Section 5.4(b), shall be conditioned on the Executive’s executing and not revoking a waiver and general release in the form set forth as Exhibit A attached to this Agreement (with such changes therein, if any, as are legally necessary at the time of execution to make it enforceable) (the “Release”). The Partnership shall provide the Release to the Executive within seven (7) days following the applicable Date of Termination. In order to receive the payments and benefits under Section 5.4(b) (other than the Amounts and Benefits) and any acceleration of the Stock Options and Annual Equity Awards under Section 5.4(b), the Executive will be required to sign the Release within twenty-one (21) or forty-five (45) days after the date it is provided to him, whichever is applicable under applicable law, and not revoke it within the seven (7) day period following the date on which it is signed by him. Notwithstanding anything herein to the contrary, all payments delayed pursuant to this section, except to the extent delayed pursuant to Section 8.8(b), shall be paid to the Executive in a lump sum on the sixtieth (60th) day following the Date of Termination, and any remaining payments due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein. In consideration for such Release by the Executive, the Company will provide the Executive with a waiver and general release in the form set forth as Exhibit A attached to this Agreement (with such changes therein, if any, as are legally necessary at the time of execution to make it enforceable).
6.    TRADE SECRETS; NON-COMPETITION; NON-SOLICITATION; NON-INVESTMENT; NON-DISPARAGEMENT; COOPERATION
6.1    Trade Secrets. During the term of employment under this Agreement, the Executive will have access to and become acquainted with various information not generally available to the public consisting of records, documents, drawings, specifications, customer lists, procedural and operational manuals and information, financial records and accounts, projections and budgets, and similar information, all of which are owned by the Company Group and regularly used in the operation of the Company Group’s business. Such assets of the Company Group are secret, are not generally available to the public and give the Company Group an advantage over competitors who do not know of or use such information. The Executive agrees such information and documents constitute “Trade Secrets” of the Company Group. All Trade Secrets, whether they are prepared by the Executive or come into the Executive’s possession in any other way, are owned by the Company Group, shall remain the exclusive property of the Company Group and shall not be removed from the premises of the Company Group under any circumstances whatsoever, without prior written consent of the Board, except in the good faith performance of the Executive’s duties hereunder..
(a)    Misuse Of Trade Secrets. The Executive covenants that he shall not misuse, misappropriate or disclose any of the Trade Secrets, directly or indirectly, or use them in any way, either during the term of this Agreement or at any time thereafter, except as required in the course 

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of his employment with the Company Group, unless such action is either previously agreed to in writing by the Board or required by law, is requested by a governmental or regulatory agency or is otherwise reasonably appropriate to disclose in connection with litigation between the Executive and any member of the Company Group.
(b)    Non-Disclosure Of Trade Secrets. The Executive acknowledges and agrees that the sale or unauthorized use or disclosure of any of the Trade Secrets, including information concerning the Company Group’s current, future and/or proposed work, services or investments, the fact that any such work, services or investments are planned, under consideration, or under negotiation, as well as any descriptions thereof, constitute “Unfair Competition”. The Executive promises and agrees not to engage in any Unfair Competition with the Company Group, either during the term of this Agreement or at any time thereafter.
(c)    18 U.S.C. § 1833(b).  18 U.S.C. § 1833(b) provides: “An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that (A) is made (x) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (y) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.” Accordingly, the parties to this Agreement have the right to disclose in confidence trade secrets to Federal, State, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law. The parties also have the right to disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure. Nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by 18 U.S.C. § 1833(b).
6.2    Whistleblower Protection. Nothing in this Agreement prohibits the Executive from reporting possible violations of United States federal law or regulation to any governmental agency or entity, including but not limited to, the United States Department of Justice, the United States Securities and Exchange Commission, the United States Congress, and any Inspector General of any United States federal agency, or making other disclosures that are protected under the whistleblower provisions of United States federal, state or local law or regulation; provided, that the Executive will use his reasonable best efforts to (1) disclose only information that is reasonably related to such possible violations or that is requested by such agency or entity, and (2) request that such agency or entity treat such information as confidential. The Executive does not need the prior authorization from the Company to make any such reports or disclosures and is not required to notify the Company that the Executive has made such reports or disclosures. This Agreement does not limit the Executive’s right to receive an award for information provided to any governmental agency or entity.
6.3    Non-competition. The Executive hereby covenants and agrees that, during the period of the Executive’s employment with the Company Group and for 24 months thereafter (the “Covenant Period”), the Executive shall not, without the prior written consent of the Board (which may be withheld in the sole and absolute discretion of the Board), engage in Competition (as defined below) with the Company Group.

     13

For purposes of this Agreement, if the Executive takes any of the following actions the Executive shall be engaged in “Competition”: engaging in or carrying on, directly or indirectly, any enterprise, whether as an advisor, principal, agent, partner, officer, director, employee, stockholder or other form of investor holding more than one percent (1%) of the outstanding shares of, associate or consultant to any person, partnership, corporation or any other business entity that competes with the Company Group and is set forth on a written list presented to the Executive by the Compensation Committee simultaneously with the execution hereof and agreed thereto by the Executive as evidenced by execution of this Agreement. The entities so listed, as amended pursuant to the following sentence, shall be the sole competitors of the Company Group (collectively, the “Competitors” and individually, a “Competitor”). Such list of the Competitors may be amended by the Board in good faith based on the same criteria as the initial list (except to the extent the Company Group’s business has changed or expanded) at any time up to one hundred eighty (180) days prior to the Executive’s Date of Termination by written notice to the Executive.  The Executive may at any time request, in writing, that the Company confirm whether any such Competitor is, on the date of such request, still a Competitor, and the Company’s Senior Human Resources Executive will respond within ten (10) business days to such an inquiry in writing.
6.4    Non-solicitation; No-Hire. The Executive hereby covenants and agrees that, during the Covenant Period, whether for the Executive’s own account or for the account of any other person or entity (other than the Company Group), (i) the Executive shall not attempt to influence, persuade or induce, or assist any other person in so influencing, persuading or inducing, any employee, agent, independent contractor, customer, vendor, supplier or lender of the Company Group to give up, or to not commence, employment or a business relationship with the Company Group or, solely with respect to customers, employees and materially exclusive independent contractors to engage in a business relationship with the Executive and (ii) the Executive shall not solicit (other than through general advertising), employ or otherwise directly or indirectly hire or engage or cause to be hired or engaged as an employee, independent contractor, or otherwise, any person or entity who is or was, during the twelve-month period prior to such hiring or solicitation, an employee of the Company Group. For purposes of this Agreement, “customer” shall include any apartment owner, ownership group or management company from which the Company Group derives operating revenues from a contractual relationship or business relationship with such customer. The Executive shall not be prohibited from providing references for employees or independent contractors if so requested by any such individual.
6.5    Non-investment. The Executive hereby covenants and agrees that, during the Employment Term, the Executive shall not invest in, or receive any payment in any form, whether paid currently or deferred, from any customer or any person or entity in discussions to become a customer of the Company Group, vendor to the Company Group, lender and those companies that are set forth on a written list presented to the Executive by the Compensation Committee simultaneously with the execution hereof and agreed thereto by the Executive as evidenced by execution of this Agreement (each entity so listed, a “Prohibited Investment Entity”). Notwithstanding the foregoing, the Compensation Committee may amend such list in good faith based on the same criteria as the initial list (except to the extent the Company Group’s business has changed or expanded) at any time by written notice to the Executive; provided, that, if any such modification shall be made which would cause the Executive to be in a then current violation, the 

     14

Executive shall be afforded a reasonable period to divest himself of such investment, and nothing herein shall preclude the Executive from holding less than one percent (1%) of the outstanding shares of any publicly traded Prohibited Investment Entity or from indirectly holding an interest in any such Prohibited Investment Entity as a result of any investment in a publicly traded or available mutual or index fund or a hedge fund or private equity fund.
6.6    Mutual Non-disparagement. The Executive hereby covenants and agrees that the Executive will not at any time, whether during or within five (5) years after the end of the Employment Term, defame, disparage or criticize the Company Group, or any of their respective directors or officers, or products or services. The provisions of this Section 6.6 shall not apply to truthful testimony, normal work-related statements in connection with the performance of services for the Company Group (including performance reviews), normal competitive-type statements if the Executive is working for a competitor and such statements are made in connection with a comparison of quality of performance, or statements made in rebuttal of statements made by the officers and directors of the Company and limited to the extent reasonably necessary to accomplish such rebuttal. The Company shall request that, and instruct, its directors and senior officers not defame, disparage or criticize the Executive, except in the good faith performance of their duties to the Company or in connection with their fiduciary duties to the Company.
6.7    Change in Control. Notwithstanding anything herein to the contrary, upon and after the Executive’s termination by the Board without Cause or by the Executive with Good Reason, in either case within 24 months following the occurrence of a Change in Control (or within six (6) months prior to a Change in Control), the Executive shall not be bound by the provisions of Sections 3, 4, and 6.5, and the restrictions, covenants, and limitations therein shall no longer apply and shall be of no force and effect.
6.8    Cooperation. Upon the receipt of reasonable notice from the Company Group (including the Company Group’s outside counsel), the Executive agrees that while employed by the Company Group and thereafter, the Executive will respond and provide information with regard to matters of which the Executive has knowledge as a result of the Executive’s employment with the Company Group, and will provide reasonable assistance to the Company Group and their respective representatives in defense of any claims that may be made against the Company Group (or any member thereof), and will provide reasonable assistance to the Company Group in the prosecution of any claims that may be made by the Company Group (or any member thereof), to the extent that such claims may relate to matters related to the Executive’s period of employment with the Company Group (or any predecessors). Any request for such cooperation shall take into account the Executive’s other personal and business commitments, and shall not require the Executive to cooperate against his own legal interests. The Executive also agrees to promptly inform the Company Group (to the extent the Executive is legally permitted to do so) if the Executive is asked to assist in any investigation of the Company Group (or any member thereof) or their actions, regardless of whether a lawsuit or other proceeding has then been filed with respect to such investigation, and shall not provide such assistance unless legally required. If the Executive is required to provide any services pursuant to this Section 6.8 following the Employment Term, upon presentation of appropriate documentation, the Partnership shall promptly reimburse the Executive for reasonable out-of-pocket travel, lodging, communication and duplication expenses incurred in 

     15

connection with the performance of such services and in accordance with the Company Group’s expense policy for its senior officers, and for legal fees to the extent the Executive in good faith reasonably believes that separate representation is warranted, subject to any different process required by the terms of the directors’ and officers’ liability insurance policy. The Executive’s entitlement to reimbursement of such costs and expenses, including legal fees, pursuant to this Section 6.8, shall in no way affect the Executive’s rights, if any, to be indemnified and/or advanced expenses in accordance with the Company Group’s (or any of its subsidiaries’) corporate or other organizational documents, any applicable insurance policy, and/or in accordance with this Agreement.
6.9    Mutual Relief. Without intending to limit the remedies available to the Company Group, each party hereto acknowledges that a breach by such party of any of the covenants contained in this Section 6 may result in material and irreparable injury to the other party hereto (including, in the case of the Company Group, its affiliates or subsidiaries), for which there is no adequate remedy at law, that it will not be possible to measure damages for such injuries precisely and that, in the event of such a breach or threat, the aggrieved party shall be entitled to a temporary restraining order and/or a preliminary or permanent injunction restraining the other party hereto from engaging in activities prohibited by this Section 6 or such other relief as may be required specifically to enforce any of the covenants in this Section 6. If for any reason it is held that the restrictions under this Section 6 are not reasonable or that consideration therefor is inadequate, such restrictions shall be interpreted or modified to include as much of the duration and scope identified in this section as will render such restrictions valid and enforceable.
6.10    Tolling. In the event of any violation of the provisions of this Section 6, the Executive acknowledges and agrees that the post-termination restrictions contained in this Section 6 shall be extended by a period of time equal to the period of such violation (unless the Company determined not to challenge such violation), it being the intention of the parties hereto that the running of the applicable post-termination restriction period shall be tolled during any period of such violation.
7.    INDEMNIFICATION/ DIRECTORS AND OFFICERS LIABILITY INSURANCE
During the Employment Term and thereafter, the relevant Company Group entity shall indemnify and hold harmless the Executive and his heirs and representatives as, and to the extent, provided in such entity’s articles and by-laws as in effect from time to time. During the Employment Term, the Company shall also cover the Executive under the Company’s directors’ and officers’ liability insurance on the same basis as it covers other senior executive officers and employee-directors of the Company; and thereafter, the Company shall provide such coverage to the Executive on the same basis as the Company covers other former senior executive officers and employee-directors of the Company.

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8.    MISCELLANEOUS
8.1    Notices. All notices or communications hereunder shall be in writing, addressed as follows (or to such other address as either party may have furnished to the other in writing by like notice):
	
		
	To the Partnership or the Board:
	AIMCO Properties, L.P.
4582 S. Ulster Street Parkway, Suite 1100, Denver, Colorado
Attn: General Counsel

	 
	 

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

	 
	 

	 
	AIMCO Properties, L.P.
4582 S. Ulster Street Parkway, Suite 1100, Denver, Colorado
Attn: EVP, Human Resources

To the Executive, at the last address for the Executive on the books of the Company.
With a copy to:
Michael S. Katzke, Esq.
Katzke & Morgenbesser LLP
1345 Avenue of the Americas 11th Fl.
New York, NY 10105
All such notices shall be conclusively deemed to be received and shall be effective (i) if sent by hand delivery, upon receipt, (ii) if sent by facsimile transmission, upon confirmation of receipt by the sender of such transmission, (iii) if sent by overnight courier, one business day after being sent by overnight courier, or (iv) if sent by registered or certified mail, postage prepaid, return receipt requested, on the fifth (5th) day after the day on which such notice is mailed.
8.2    Severability. Each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision will be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement.
8.3    Binding Effect; Benefits. The Executive may not delegate his duties or assign his rights hereunder. No rights or obligations of the Partnership under this Agreement may be assigned or transferred by the Partnership other than pursuant to a merger or consolidation in which the Partnership is not the continuing entity, or a sale, liquidation or other disposition of all or substantially all of the assets of the Partnership, provided that the assignee or transferee is the successor to all or substantially all of the assets or businesses of the Partnership and assumes the liabilities, obligations and duties of the Partnership under this Agreement, either contractually or 

     17

by operation of law. The Partnership further agrees that, in the event of any disposition of its business and assets described in the preceding sentence, it shall use its best efforts to cause such assignee or transferee expressly to assume the liabilities, obligations and duties of the Partnership hereunder. For the purposes of this Agreement, the term “Partnership” shall include the Partnership and, subject to the foregoing, any of its successors and assigns. For the purposes of this Agreement, the term “Company” shall include the Company and, subject to the foregoing, any of its successors and assigns. This Agreement shall inure to the benefit of, and be binding upon, the parties hereto and their respective heirs, legal representatives, successors and permitted assigns. In the event of the Executive’s death before receiving all amounts and benefits due to him hereunder (including under Section 5.4), such amounts shall be payable to the Executive’s estate or as otherwise provided under applicable benefit plans or arrangements.
8.4    Entire Agreement. This Agreement, including the Exhibits hereto, represents the entire agreement of the parties with respect to the subject matter hereof and shall supersede any and all previous contracts, arrangements or understandings between the Company Group and the Executive, including, without limitation, the Prior Agreement, which shall be deemed to have terminated on the Effective Date, provided, that notwithstanding the foregoing, any provisions contained therein or any other agreement related to equity or incentive awards or ownership or other aspects of intellectual property shall continue to be in full force and effect. This Agreement (including any of the Exhibits hereto) may be amended at any time by mutual written agreement of the parties hereto. In the case of any conflict between any express term of this Agreement and any statement contained in any plan, program, arrangement, employment manual, memo or rule of general applicability of the Company Group, this Agreement shall control. All references herein to the words “include,” “includes” and “including” shall be deemed to be followed with the words “without limitation.”
8.5    Withholding. The payment of any amount pursuant to this Agreement shall be subject to applicable withholding and payroll taxes, and such other deductions as may be required by applicable law.
8.6    Governing Law. This Agreement and the performance of the parties hereunder shall be governed by the internal laws (and not the law of conflicts) of the State of Colorado.
8.7    Arbitration. Any dispute or controversy arising under or in connection with this Agreement or the Executive’s employment with the Company Group, other than injunctive relief under Section 6.9 hereof, shall be settled exclusively by arbitration, conducted before a single arbitrator in Denver, Colorado (applying Colorado law) in accordance with the Commercial Arbitration Rules and Procedures of the American Arbitration Association then in effect. The decision of the arbitrator will be final and binding upon the parties hereto. Judgment may be entered on the arbitrator’s award in any court having jurisdiction. The Executive shall be entitled to recover reasonable legal fees, costs and disbursements incurred in connection with any arbitration or legal proceeding related to this Agreement or the Executive’s employment or termination thereof or any compensatory matter, provided, that in any such event, the arbitrator determines that the Executive is the overall prevailing party in the claims subject to such proceeding or dispute (the date of such 

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determination, the “Determination Date”). Each party waives the right to trial by jury. Any payment made by the Partnership to the Executive pursuant to this Section 8.7 shall be made no later than the seventieth (70th) day following the Determination Date.
8.8    Section 409A of the Code.
(a)    It is intended that the provisions of this Agreement comply with Code Section 409A, and all provisions of this Agreement shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Code Section 409A. If any provision of this Agreement (or of any award of compensation, including equity compensation or benefits) would cause the Executive to incur any additional tax or interest under Code Section 409A, the Partnership shall, upon the specific written request of the Executive, use its reasonable business efforts to in good faith reform such provision to comply with Code Section 409A; provided, that to the maximum extent practicable, the original intent and economic benefit to the Executive and the Partnership of the applicable provision shall be maintained, but the Partnership shall have no obligation to make any changes that could create any material additional economic cost or loss of benefit to the Partnership.
(b)    A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a “Separation from Service” within the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a “resignation,” “termination,” “termination of employment” or like terms shall mean Separation from Service. If the Executive is deemed on the date of termination of his employment to be a “specified employee,” within the meaning of that term under Section 409A(a)(2)(B) of the Code and using the identification methodology selected by the Partnership from time to time, or if none, the default methodology, then with regard to any payment or the providing of any benefit made subject to this Section 8.8(b), to the extent required to be delayed in compliance with Section 409A(a)(2)(B) of the Code, and any other payment, the provision of any other benefit or any other distribution of equity that is required to be delayed in compliance with Section 409A(a)(2)(B) of the Code, such payment, benefit or distribution shall not be made or provided prior to the earlier of (i) the expiration of the six-month period measured from the date of the Executive’s Separation from Service or (ii) the date of the Executive’s death. On the first day of the seventh month following the date of Executive’s Separation from Service or, if earlier, on the date of his death, all payments delayed pursuant to this Section 8.8(b) (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to the Executive in a lump sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.
(c)    It is intended that each installment, if any, of the payments and benefits provided under Sections 5.4(b) and 5.4(e) shall be treated as a separate “payment” for purposes of Code Section 409A. Neither the Partnership nor the Executive shall have the right to accelerate or defer the delivery of any such payments or benefits subject to Code Section 409A, except to the extent specifically permitted or required by Code Section 409A.

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(d)    With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Code Section 409A, (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year, provided, that the foregoing clause (ii) shall not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related to the period the arrangement is in effect and (iii) such payments shall be made on or before the last day of the taxable year following the taxable year in which the expense was incurred.
(e)    Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within thirty (30) days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Employer.
8.9    Parachute Payments. In the event that the severance or benefits provided for in this Agreement or otherwise payable to the Executive (i) constitute “parachute payments” within the meaning of Section 280G of the Code and (ii) but for this Section 8.9, would be subject to the excise tax imposed by Section 4999 of the Code, then Executive’s benefits will be either (a) delivered in full, or (b) delivered as to such lesser extent which would result in no portion of such payments or benefits being subject to excise tax under Section 4999 of the Code; whichever of the foregoing amounts, taking into account the applicable federal, state, and local income and employment taxes and the excise tax imposed by Section 4999 of the Code, results in the receipt by Executive on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under Section 4999 of the Code. If a reduction in severance and other benefits constituting “parachute payments” is necessary so that benefits are delivered to a lesser extent, reduction will occur in the following order: (i) reduction of cash payments; (ii) cancellation of accelerated vesting of equity awards; or (iii) reduction in employee benefits. In the event that acceleration of vesting of equity award compensation is to be reduced, such acceleration of vesting will be cancelled in the order that provides the greatest after-tax value to the Executive. Unless the Company and Executive otherwise agree in writing, any determination required under this Section 8.9 will be made in writing by a nationally recognized certified professional services firm selected by the Company, or such other person or entity to which the parties mutually agree (the “Firm”) immediately prior to a Change in Control, whose determination will be conclusive and binding upon Executive and the Company for all purposes absent manifest error. For purposes of making the calculations required by this Section 8.9, the Firm may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Section 280G and 4999 of the Code. The Company and the Executive will furnish to the Firm such information and documents as the Firm may reasonably request in order to make a determination under this Section 8.9.  The Company will bear all costs the Firm may incur in connection with any calculations contemplated by this Section 8.9.
8.10    Legal Fees. The Partnership shall promptly pay upon presentation of appropriate documentation the reasonable legal fees incurred by the Executive in connection with 

     20

the negotiation and documentation of this Agreement, together with a full tax gross-up to the extent any such amount is taxable to the Executive.
8.11    Survivorship. Except as otherwise expressly set forth in this Agreement, upon the expiration of the Employment Term, the respective rights and obligations of the parties shall survive such expiration to the extent necessary to carry out the intentions of the parties as embodied in this Agreement. This Agreement shall continue in effect until there are no further rights or obligations of the parties outstanding hereunder and shall not be terminated by either party without the express prior written consent of both parties.
8.12    Counterparts. This Agreement may be executed in counterparts (including by fax or pdf) which, when taken together, shall constitute one and the same agreement of the parties.
8.13    Partnership Representations. The Partnership represents and warrants to the Executive that (i) the execution, delivery and performance of this Agreement (and the agreements referred to herein) by the Partnership has been fully and validly authorized by all necessary action of the Partnership, (ii) the officer signing this Agreement on behalf of the Partnership is duly authorized to do so, (iii) the execution, delivery and performance of this Agreement does not violate any applicable law, regulation, order, judgment or decree or any agreement, plan or corporate governance document to which the Partnership is a party or by which it is bound and (iv) upon execution and delivery of this Agreement by the Executive and the Partnership, it shall be a valid and binding obligation of the Partnership enforceable against it in accordance with its terms, except to the extent that enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally.
[End of Text - Signature page follows]

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IN WITNESS WHEREOF, the Partnership has caused this Agreement to be duly executed and the Executive has hereunto set his hand, as of this 21st day of December, 2017.
THE PARTNERSHIP:
AIMCO Properties, L.P.
By: AIMCO-GP, Inc., its general partner
By: /s/ Jennifer Johnson    
Name: Jennifer Johnson    
Title: Senior Vice President - Human Resources    
EXECUTIVE
/s/ Terry Considine
Terry Considine

AGREED TO BY THE COMPANY:
Apartment Investment and Management Company
By: /s/ Jennifer Johnson     
Name: Jennifer Johnson     
Title: Senior Vice President - Human Resources    

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Exhibit A
SEPARATION AGREEMENT
The purpose of this Separation Agreement (this “Agreement”) is to confirm the terms regarding Your separation of employment from AIMCO Properties, L.P. (the “Partnership”) and its related entities (“AIMCO” or the “Company”). As more fully set forth below, the Partnership desires to provide You with certain benefits in exchange for certain agreements by You.
1.    Definitions.
(a)    “You” and “Your” shall refer to Terry Considine.
(b)    The “Separation Date” shall be [INSERT DATE], 20__.
(c)    You are over forty (40) years of age, and the provisions of Section 5.1(c). hereof apply to this Agreement. The additional amount paid to You in consideration for Your execution of a waiver under the Age Discrimination in Employment Act (the “ADEA Amount”) shall be $[INSERT AMOUNT], such amount being equal to 1 week of Your current base pay.
2.    Separation of Employment. Your employment with AIMCO will terminate effective as of the Separation Date. On such date You had a separation from service, within the meaning of Internal Revenue Code Section 409A and the regulations and guidance promulgated thereunder. From and after the Separation Date, You shall have no authority and shall not represent Yourself as an employee or agent of any of the AIMCO Parties (as defined below).
3.    Separation Pay and Benefits. You will receive payments and benefits in accordance with Section 5.4(b) of Your employment agreement with the Partnership dated effective as of December 29, 2017 (the “Employment Agreement”).
4.    Return of Company Property, Confidentiality, Non-Solicitation, Proprietary Information, Non-Disparagement, Breach. You expressly acknowledge and agree to the following:
(a)    that You have returned to AIMCO all AIMCO Party documents (and any copies thereof) and property (including without limitation all keys, badges, credit cards, phone cards, cellular phones, computers, software, etc.); provided, the Company confirms that Your rolodex (or other tangible or electronic address book) and Your cellular telephone number are Your personal property and that you may also retain your calendar and any documents pertaining to your compensation information and information reasonably needed for tax preparation purposes and any other items of personal property you have brought to AIMCO ; and
(b)    that the restrictive covenants set forth in Section 6 of Your Employment Agreement shall survive the Date of Termination in accordance with the terms thereof.

5.    Release of Claims Against AIMCO. You hereby agree and acknowledge that by signing this Agreement You, on behalf of Yourself and Your heirs, successors, agents, assigns, executors, administrators, dependents and family members (collectively, including You, the “Employee Parties”) hereby generally, completely, absolutely and unconditionally release, waive, acquit, forever discharge, indemnify and hold harmless the AIMCO Parties (as defined below) from and against any and all Claims (as defined below) against any or all of the AIMCO Parties whatsoever for any alleged action, inaction or circumstance existing or arising from the beginning of time through the date this Agreement is executed by all parties. Your waiver and release herein is intended to bar any form of Claim against any or all of the AIMCO Parties seeking any form of relief including, without limitation, equitable relief (whether declaratory, injunctive or otherwise), the recovery of any damages or any other form of monetary recovery whatsoever (including, without limitation, back pay, front pay, compensatory damages, emotional distress damages, punitive damages, attorney’s fees and any other costs) against any or all of the AIMCO Parties, for any alleged action, inaction or circumstance existing or arising through the date this Agreement is executed by all parties. The foregoing waiver and release constitutes a FULL AND FINAL RELEASE OF ALL CLAIMS, and shall apply to all known and unknown claims or damages existing as of the date this Agreement is executed by all parties. Without limiting the foregoing general waiver and release, on behalf of the Employee Parties, You specifically waive and release any and all of the AIMCO Parties from any Claim arising from or related to Your employment relationship with the Company or the termination thereof, including, without limitation:
		
	(i)
	Claims under any local, state, federal or foreign discrimination, fair employment practices or other employment related statute, regulation or executive order (as they may have been amended through the Effective Date) prohibiting discrimination or harassment based upon any protected status including, without limitation, race, religion, citizenship, national origin, age, gender, genetic carrier status, marital status, disability, veteran status or sexual orientation. Without limitation, specifically included in this paragraph are any Claims arising under the federal Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Civil Rights Acts of 1866 and 1871, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Equal Pay Act, the Immigration Reform and Control Act, the Americans With Disabilities Act and any similar local, state, federal or foreign statute or law.

		
	(ii)
	Claims under any other local, state, federal or foreign employment related statute, regulation or executive order (as they may have been amended through the Effective Date) relating to wages, hours or any other terms and conditions of employment. Without limitation, specifically included in this paragraph are any Claims arising under the Fair Labor Standards Act, the Family and Medical Leave Act of 1993, the National Labor Relations Act, and any similar local, state, federal or foreign statute or law.

		
	(iii)
	Claims under any local, state, federal or foreign common law theory including, without limitation, wrongful discharge, breach of express or 

     24

implied contract, promissory estoppel, unjust enrichment, breach of a covenant of good faith and fair dealing, violation of public policy, defamation, interference with contractual relations, intentional or negligent infliction of emotional distress, invasion of privacy, misrepresentation, deceit, fraud or negligence.
		
	(iv)
	Any other Claim arising under local, state, or federal law.

(b)    Notwithstanding the foregoing, this Section 5 does not release AIMCO from any obligation expressly set forth in this Agreement, Your rights to indemnification and coverage under the Company’s directors and officers liability insurance as set forth in Section 7 of Your Employment Agreement, or any obligation of the Company to pay or provide You with accrued and vested benefits under any employee benefit plan in which You participated prior to the Date of Termination in accordance with the terms thereof. You acknowledge and agree that, but for providing this waiver and release, You would not be receiving the Separation Pay being provided to You under the terms of Your Employment Agreement.
(c)    You explicitly acknowledge that if You are over forty (40) years of age, You have specific rights under the Age Discrimination in Employment Act (“ADEA”), which prohibits discrimination on the basis of age, and the releases set forth in this Section 5.1(c) are intended to release any right that You may have to file a claim against any or all of the AIMCO Parties alleging discrimination on the basis of age. It is AIMCO’s desire and intent to make certain that You fully understand the provisions and effects of this Agreement. To that end, You have been encouraged and given the opportunity to consult with legal counsel for the purpose of reviewing the terms of this Agreement. Consistent with the provisions of the Older Worker Benefits Protection Act (“OWBPA”), AIMCO is providing You with [twenty-one (21)/forty-five (45)] days in which to consider and accept the terms of this Agreement by signing below and returning it to the Senior Human Resources Executive in Denver, Colorado. In addition, You may rescind Your assent to this Agreement within seven (7) days after You sign it. To do so, You must deliver a notice of rescission to the Senior Human Resources Executive. To be effective, such rescission must be hand delivered or postmarked within the seven (7) day period and sent by certified mail, return receipt requested, to the Senior Human Resources Executive, AIMCO Properties L.P., 4582 South Ulster Street Parkway, Suite 1100, Denver, Colorado 80237. By executing this Agreement, You are acknowledging that You have been afforded sufficient time to understand the terms and effects of this Agreement, that Your agreements and obligations hereunder are made voluntarily, knowingly and without duress, and that neither any of the AIMCO Parties nor their agents or representatives have made any representations inconsistent with the provisions of this Agreement.
6.    Release of Claims Against You. Contingent upon Your execution and non-revocation of this Agreement, AIMCO, on its behalf and on behalf of its subsidiaries (the “AIMCO Group”), hereby generally, completely, absolutely and unconditionally release, waive, acquit, forever discharge, indemnify and hold harmless You from and against any and all claims against the AIMCO Group for any alleged action, inaction or circumstance existing or arising from the beginning of time through the date this Agreement is executed by AIMCO; provided 

     25

that the following claims shall not be released hereunder: (i) claims for breach of fiduciary duty, (ii) claims for willful misconduct or illegal activity, or (iii) material claims that have been concealed from AIMCO’s Board of Directors or of which a majority of the non-employee members of AIMCO’s Board of Directors is unaware on the date this Agreement is executed.
7.    Miscellaneous.
For the purposes hereof, the term “Claims” shall mean any and all claims, demands, debts, liens, agreements, promises causes of action, liability, damages, costs, and expenses of any kind and nature whatsoever, whether arising under state, federal or local law, administrative rule or regulation, common law, contract, tort, or in equity, known or unknown, whether accrued, contingent, inchoate or otherwise, suspected or unsuspected, raised affirmatively or by way of defense or offset, including, without limitation any consequences flowing, resulting, or which might result therefrom.
For the purposes hereof, the term “AIMCO Parties” shall mean AIMCO and any and all of its subsidiaries, affiliates, divisions, acquiring and/or ownership entities, parent, associated or allied companies, corporations, firms, partnerships, management companies, and/or organizations, joint ventures, and any related entities (including, without limitation, any management company and its subsidiaries and affiliates), and successors, predecessors, counsel, board members, officers, partners, trustees or employees thereof jointly and severally, in both their personal and corporate capacities. The AIMCO Parties are hereby made third party beneficiaries of Section 5 of this Agreement.
This Agreement, along with Your Employment Agreement and any equity or incentive award agreements, contains the entire agreement and understanding by and between You and Company with respect to matters set forth herein. No change, amendment or modification herein hereto shall be valid or binding unless the same is in writing and signed by the party intended to be bound. No waiver of any provision or any particular breach or default of this Agreement shall be valid unless the same is in writing and signed by the party against whom such waiver is sought to be enforced; moreover, no valid waiver of any provision or any particular breach or default of this Agreement at any time shall be deemed a waiver of any other provision or prior or subsequent breach or default of this Agreement at such time or be deemed a valid waiver of such provision at any other time. No failure or delay in exercising any right under this Agreement shall operate as a waiver thereof or of any other right, and the failure of any party to seek redress for violation of or to insist upon the strict performance of any covenant or condition of this Agreement shall not prevent a subsequent act, which would have originally constituted a violation, from having the effect of any original violation. No single or partial exercise by any party of any right, power or remedy will preclude any other or future exercise thereof or of any other remedy. A determination that any provision of this Agreement is prohibited by law or unenforceable shall not affect the validity or enforceability of any other provision of this Agreement.
The provisions of Section 8.7 of Your Employment Agreement shall govern any controversy, dispute, or Claim of any nature arising out of, in connection with, or in relation to the interpretation, performance or breach of this Agreement, including any Claim based on contract, tort or statute.

     26

This Agreement shall be governed by, and interpreted in accordance with, the laws of the state of Colorado without reference to its conflict of laws rules. This Agreement may be executed by facsimile and in any number of counterparts; all such counterparts shall be deemed to constitute one and the same instrument, and each counterpart (whether an original, a facsimile or other copy) shall be deemed an original hereof.
If the foregoing correctly sets forth our understanding, please sign, date and return the enclosed copy of this Agreement to the Senior Human Resources Executive at AIMCO within [twenty-one (21)/forty-five (45)] days. This Agreement may be executed in counterparts.
CONFIRMED, CONSENTED AND AGREED TO BY YOU:
____________________________________
 
Terry Considine
Date:
AGREED TO BY THE COMPANY:
AIMCO PROPERTIES, L.P.
By: AIMCO-GP, Inc., its general partner
By:     
 
Name:     
 
Title:     
Date:

     27Exhibit 10.1

 

BIO-PATH HOLDINGS, INC.

2017 STOCK INCENTIVE PLAN

 

Effective October
23, 2017, the Board of Directors of Bio-Path Holdings, Inc., a Delaware corporation, adopted this Bio-Path Holdings, Inc. 2017
Stock Incentive Plan, subject to the approval of the stockholders in accordance with the bylaws of Bio-Path Holdings, Inc.

 

SECTION
1

PURPOSE OF THIS PLAN

 

1.1             
Eligible Award Recipients. The persons
eligible to receive Awards under the Bio-Path Holdings, Inc. 2017 Stock Incentive Plan (the “Plan”) are
the Employees, Directors and Consultants who are responsible for or contribute to the management, growth and success of Bio-Path
Holdings, Inc. (the “Company”) and its Affiliates.

 

1.2             
General Purpose. The Company, by means
of the Plan, seeks to retain and attract Employees, Directors and Consultants who contribute to the Company’s success by
their ability, ingenuity and industry, and to enable such Persons to participate in the long-term success and growth of the Company
through the granting of the following Awards: (i) Incentive Stock Options, (ii) Non-Qualified Stock Options, (iii) Restricted Shares,
(iv) Restricted Share Units, (v) Stock Appreciation Rights, (vi) Performance-Based Awards; or (vii) any other award the Plan Administrator,
in its sole and absolute discretion, deems appropriate to meet the objectives of this Plan.

 

SECTION
2

DEFINITIONS

 

As used in this Plan,
the following terms shall have the meanings set forth below unless the context requires otherwise:

 

2.1             
Affiliate. “Affiliate”
shall mean, when used hereunder in connection with an Incentive Stock Option, any Parent Corporation or Subsidiary Corporation;
when used hereunder in connection a Non-Qualified Stock Option or other Award intended to be exempt from Section 409A of the Code,
any entity related to the Company under Section 414 of the Code, as modified by Section 409A of the Code; and for all other purposes
hereunder, any entity controlling, controlled by, or under common control with the Company, in all instances, whether now or hereafter
existing.

 

2.2             
Award. “Award” shall
mean the grant under this Plan of a Stock Option, a Restricted Share, a Restricted Share Unit, a Stock Appreciation Right, a Performance-Based
Award or any other grant of incentive compensation pursuant to this Plan.

 

2.3             
Award Agreement. “Award
Agreement” shall mean the written agreement evidencing the terms and conditions of a grant of one or more Awards under this
Plan to an Eligible Person. Each Award Agreement shall be subject to the terms and conditions of the Plan and need not be identical.

 

    	 	1	 

     

    

2.4             
Award Date.  “Award
Date” shall mean the date on which an Award is granted to an Eligible Person.

 

2.5             
Award Term. “Award Term” shall
mean the maximum period during which a Participant may exercise, purchase, or otherwise benefit from an Award granted under this
Plan.

 

2.6             
Board. “Board” shall mean
the Board of Directors of the Company, as the same may be constituted from time to time.

 

2.7             
Breach Event. “Breach Event”
shall mean the Participant’s breach or default of an agreement, commitment or obligation to or with the Company or any Affiliate
either during Participant’s Continuous Service or after Participant’s Termination Date, including, without limitation,
breaching a confidentiality, noncompetition or non-solicitation agreement, covenant or obligation. The determination of whether
a Breach Event has occurred shall be made in the sole and absolute discretion of the Plan Administrator.

 

2.8             
Cause. “Cause” shall mean
(a) Participant’s commission of any action constituting a criminal felony (other than automobile related violations) or other
serious crime; (b) Participant’s willful and continued refusal to follow reasonable instructions of the Board or the Participant’s
supervisor or manager, in each case which are material to the Company’s operations or prospects and only after the Board
provides written notice to the Participant which identifies with reasonable specificity the manner in which the Participant refused
to follow such instructions and Participant has been provided a reasonable opportunity to cure such deficiency; (c) Participant’s
engagement in conduct that is materially injurious to the Company or an Affiliate; and (d) Participant devoting less than substantially
all of his full time during normal business hours to the Company and which is not promptly cured after written notice from the
Board or the Participant’s supervisor or manager to the Participant. If a Participant is a party to an employment or service
agreement with the Company or an Affiliate and such agreement provides for a definition of “Cause,” the definition
therein contained shall constitute “Cause” for purposes of this Plan in addition to the above definition. The determination
of a Participant’s termination for “Cause” shall be made in the sole and absolute discretion of the Plan Administrator.

 

2.9             
Change in Control. “Change in Control”
shall mean the occurrence of any one of the following events:

 

(a)              
a sale, transfer or other conveyance of all or substantially all of the assets of the Company on a consolidated basis;

 

(b)              
the acquisition of beneficial ownership (as such term is defined in Rule 13d-3 promulgated under the Exchange Act) by
any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), directly or indirectly, of securities
representing 50% or more of the total number of votes that may be cast for the election of directors of the Company;

 

(c)              
the failure at any annual or special meeting of the Company’s stockholders held during the three-year period following
a “solicitation in opposition” as defined in Rule 14a-6 promulgated under the Exchange Act, of a majority of the
persons nominated

 

    	 	2	 

     

    

by the Company in the proxy material
mailed to shareholders by the management of the Company to win election to seats on the Board (such majority calculated based upon
the total number of persons nominated by the Company failing to win election to seats on the Board divided by the total number
of Board members of the Board as of the beginning of such three year period), excluding only those who die, retire voluntarily,
are disabled or are otherwise disqualified in the interim between their nomination and the date of the meeting

 

(d)              
a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result
in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding
or by being converted into voting securities of the surviving entity or its parent) at least 50% of the total voting power represented
by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation.

 

Notwithstanding the foregoing, to the extent
that any amount constituting deferred compensation (as defined in Section 409A of the Code) would become payable under this Plan
by reason of a Change in Control, such amount shall become payable only if the event constituting a Change in Control would also
qualify as a change in ownership or effective control of the Company or a change in the ownership of a substantial portion of the
assets of the Company, each as defined within the meaning of Code Section 409A, as amended from time to time. The determination
of whether a “Change in Control” has occurred shall be made in the sole and absolute discretion of the Board.

 

2.10         
Code. “Code” shall mean the
Internal Revenue Code of 1986, as amended from time to time (or any successor to such legislation), along with the regulations
and guidance published in the Internal Revenue Bulletin from time to time.

 

2.11         
Committee. “Committee” shall
mean the Compensation Committee of the Board; provided, however, that in the event the Compensation Committee is not comprised
solely of Outside Directors, then, with respect to any Performance-Based Award granted under this Plan to a Covered Employee, the
Committee shall mean the two or more Outside Directors appointed by the Board to administer the Plan with respect to such Award.

 

2.12         
Common Stock. “Common Stock”
shall mean the authorized shares of common stock of the Company, par value $0.001 per share.

 

2.13         
Company. “Company” shall mean
Bio-Path Holdings, Inc., a corporation organized under the laws of the State of Delaware, and any successor thereto.

 

2.14         
Consultant. “Consultant” shall
mean any Person, including an advisor, engaged by the Company or any Affiliate to render consulting or advisory services and who
is compensated for such services or who provides bona fide services to the Company or any Affiliate pursuant to a written agreement.
However, the term “Consultant” shall not include either Directors who are not compensated by the Company for their
service as a Director or

 

    	 	3	 

     

    

Directors who are paid by the Company for
their service as a Director in accordance with any Director compensation policies adopted by the Board from time to time.

 

2.15         
Continuous Service. “Continuous
Service” means that the Participant’s service with the Company or any Affiliate, whether as an Employee, Director or
Consultant, is not interrupted or terminated. Participant’s Continuous Service shall not be deemed to have terminated merely
because of a change in the capacity in which Participant renders service to the Company or any Affiliate as an Employee, Consultant
or Director or a change in the entity for which Participant renders such service, provided that there is no interruption or termination
of Participant’s Continuous Service. For example, a change in status from an Employee of the Company to a Consultant of an
Affiliate or a Director will not constitute an interruption of Continuous Service. Notwithstanding the foregoing, with respect
to an Incentive Stock Option, an Employee’s Continuous Service shall be deemed to have terminated in the event of a change
in capacity from an Employee to a Consultant or non-Employee Director. The Plan Administrator will determine, in its sole and absolute
discretion, whether Continuous Service will be considered interrupted in the case of any leave of absence approved by the Company,
including sick leave, military leave or any other personal leave.

 

2.16         
Covered Employee. “Covered Employee”
shall mean the chief executive officer and the four (4) other highest compensated officers of the Company for whom total compensation
is required to be reported to stockholders under the Exchange Act, as determined for purposes of Section 162(m) of the Code.

 

2.17         
Director. “Director” shall
mean a member of the Board, whether an Employee, former Employee, Outside Director or other non-Employee member.

 

2.18         
Disability. “Disability” shall
mean the Participant’s permanent and total inability to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in death or which can be expected to last for a continuous
period of not less than 12 months. The term “Disability” shall also include any definition of disability that may be
contained in any long-term disability plan maintained or sponsored by the Company from time to time. The determination of a Participant’s
“Disability” shall be made in the sole and absolute discretion of the Plan Administrator.

 

2.19         
Effective Date. “Effective Date”
shall mean the date on which the Plan is approved by the stockholders of the Company in accordance with the bylaws of the Company.

 

2.20         
Eligible Person. “Eligible Person”
shall mean an Employee, Consultant, or Director eligible to receive an Award under Section 5 of this Plan.

 

2.21         
Employee. “Employee” shall
mean, for purposes of this Plan, a common-law employee of the Company or any Affiliate. Mere service as a Director or payment in
accordance with any Director compensation policies adopted by the Board from time to time shall not be sufficient to constitute
“employment” by the Company or an Affiliate.

 

2.22         
Exchange Act. “Exchange Act”
shall mean the Securities Exchange Act of 1934, as amended from time to time (or any successor to such legislation).

 

    	 	4	 

     

    

2.23         
Exercise Agreement. “Exercise Agreement”
shall mean the written or electronic agreement delivered by Participant to the Plan Administrator to evidence Participant’s
exercise of those rights provided under the applicable Award Agreement.

 

2.24         
Exercise Date. “Exercise Date”
shall mean the date set forth in the Exercise Agreement on which Participant exercises those rights provided under the applicable
Award Agreement.

 

2.25         
Exercise Price. “Exercise Price”
shall mean the consideration required, as determined by the Plan Administrator and set out in the Award Agreement, to be remitted
upon exercise of an Award.

 

2.26         
Expiration Date. “Expiration Date”
shall mean the date that is ten (10) years from the Effective Date, or, in the event the Plan is subsequently amended to make any
change described in clause (iii) of subsection 18.1, the date that is ten (10) years from the earlier of the date on which
such amendment is approved by the Board or the stockholders of the Company in accordance with the bylaws of the Company.

 

2.27         
Fair Market Value. “Fair Market
Value” shall mean, with respect to each Share,

 

(a)              
If the Common Stock is listed on an established stock exchange or a national market system, including without limitation
the Nasdaq Capital Market, the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on
such exchange or system for the date of determination, as reported in The Wall Street Journal or such other source as the Plan
Administrator, in its sole and absolute discretion deems reliable;

 

(b)              
If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the mean
of the high bid and low asked prices for the Common Stock on the last market trading day prior to the date of determination; or

 

(c)              
In the absence of an established market for the Common Stock, the value established, in good faith, by the Board as of the
determination date in accordance with the applicable regulations and guidance promulgated under Code Section 409A (or any successor
provision thereto) and published in the Internal Revenue Bulletin.

 

2.28         
Incentive Stock Option. “Incentive
Stock Option” shall mean any option to purchase Shares awarded pursuant to Section 6 of this Plan that qualifies as
an “incentive stock option” pursuant to Section 422 of the Code (or any successor provision thereto).

 

2.29         
Non-Qualified Stock Option. “Non-Qualified
Stock Option” shall mean any option to purchase Shares awarded pursuant to Section 6 of this Plan that does not qualify
as an Incentive Stock Option (including, without limitation, any option to purchase Shares originally designated, or intended to
qualify, as an Incentive Stock Option but that does not, for any reason whatsoever, qualify as an Incentive Stock Option).

 

2.30         
Outside Director. “Outside Director”
shall have the meaning set forth in Section 162(m) of the Code (or any successor provision thereto).

 

    	 	5	 

     

    

2.31         
Parent Corporation. “Parent Corporation”
shall mean any entity (other than the Company) in an unbroken chain of entities ending with the Company, provided each entity in
the unbroken chain (other than the Company) owns, at the time of the determination, ownership interests possessing fifty percent
(50%) or more of the total combined voting power of all classes of ownership interests in one of the other entities in such chain;
provided, however, that with respect to an Award of an Incentive Stock Option, the term “Parent Corporation” shall
refer solely to an entity that is taxed under Federal income tax laws as a corporation.

 

2.32         
Participant. “Participant”
shall mean any Eligible Person who has been granted and holds an Award granted pursuant to this Plan.

 

2.33         
Performance-Based Award. “Performance-Based
Award” shall mean an Award the benefit of which is paid on account of the attainment (as certified in writing by the Plan
Administrator) of one or more objective Performance Goals.

 

2.34         
Performance Goal. “Performance Goal”
shall mean the financial or other operational targets that need to be achieved as a condition for the Participant to receive a
payment under a Performance-Based Award. Each Performance Goal shall be established by the Plan Administrator no later than the
90th day after the commencement of the Performance Period (or, if earlier, the day prior to the date on which twenty-five
percent (25%) of the Performance Period has elapsed), and shall be based on one or more Performance Metrics, as determined by the
Plan Administrator.

 

2.35         
Performance Metrics. “Performance
Metrics” shall mean any of the following: revenue; net revenue; revenue growth; net revenue growth; earnings before interest,
taxes, depreciation and amortization (“EBITDA”); adjusted EBITDA; EBITDA growth; adjusted EBITDA growth; funds from
operations; funds from operations per share; operating income (loss); operating income growth; operating cash flow; adjusted operating
cash flow return on income; net income; net income growth; pre- or after-tax income (loss); cash available for distribution; cash
available for distribution per share; cash and/or cash equivalents available for operations; net earnings (loss); earnings (loss)
per share; earnings per share growth; return on equity; return on assets; share price performance (based on historical performance
or in relation to selected organizations or indices); total stockholder return; total stockholder return growth; economic value
added; improvement in cash-flow (before or after tax); successful capital raises; successful completion of acquisitions; and confidential
business unit objectives. Performance Metrics may be established on a consolidated basis, company-wide basis or with respect to
one or more operating units, divisions, subsidiaries, acquired businesses, minority investments, partnerships or joint ventures.
For purposes of calculating a Performance Metric, the following items may be disregarded: (i) a change in accounting principle,
(ii) financing activities, (iii) intercompany dividends, (iv) expenses for restructuring or productivity initiatives, (v) other
non-operating items, (vi) acquisitions or dispositions, (vii) discontinued operations, (viii) unusual or extraordinary events,
transactions or developments, (ix) amortization of intangible assets, other significant income or expense outside of core on-going
business activities, (x) other nonrecurring, unusual or infrequent items or events, and (xi) changes in the Code or other applicable
law, as determined in the sole discretion of the Plan Administrator.

 

    	 	6	 

     

    

2.36         
Performance Period. “Performance
Period” shall mean the period over which a Performance Metric is measured, which may be on a periodic, annual, cumulative
or average basis.

 

2.37         
Person. “Person” shall mean
an individual, partnership, joint venture, corporation, limited liability company, trust, estate or other entity or organization.

 

2.38         
Plan. “Plan” shall mean the
Bio-Path Holdings, Inc. 2017 Stock Incentive Plan, as amended from time to time.

 

2.39         
Plan Administrator. “Plan Administrator”
shall mean the Board or the Committee appointed by the Board to administer the Plan pursuant to subsection 3.1 hereof.

 

2.40         
Purchase Price. “Purchase Price”
shall mean the consideration required, as determined by the Plan Administrator and set out in the Award Agreement, to be remitted
upon grant of an Award of Restricted Shares.

 

2.41         
Restricted Shares. “Restricted Shares”
shall mean any Shares granted pursuant to Section 9 of this Plan that are subject to transferability restrictions and a
substantial risk of forfeiture.

 

2.42         
Restricted Share Units. “Restricted
Share Units” shall mean any Award granted pursuant to Section 10 of this Plan denominated in Shares and subject to
the terms, conditions and restrictions determined by the Plan Administrator and set forth in the applicable Award Agreement.

 

2.43         
Restriction Period. “Restriction
Period” shall mean the period during which Restricted Shares issued pursuant to Section 9 hereof or Restricted Share
Units issued pursuant to Section 10 hereof are subject to transferability restrictions and a substantial risk of forfeiture.

 

2.44         
Retirement. “Retirement” shall
mean the Participant’s termination of Continuous Service at any time after the attainment of age 65, provided that such Participant
has provided at least five years of Continuous Service.

 

2.45         
Securities Act. “Securities Act”
shall mean the Securities Act of 1933, as amended from time to time (or any successor to such legislation).

 

2.46         
Shares. “Shares” shall mean
shares of the Common Stock and any shares of capital stock or other securities hereafter issued or issuable upon, in respect of
or in substitution or exchange for shares of Common Stock.

 

2.47         
Stock Appreciation Right. “Stock
Appreciation Right” shall mean any Award granted pursuant to Section 7 of this Plan for the right to receive cash,
Shares or a combination of both, with a value equal to the excess of the Fair Market Value of the aggregate number of Shares subject
to such Stock Appreciation Right on the Exercise Date over the Fair Market Value of the aggregate number of Shares subject to such
Stock Appreciation Right on the Award Date.

 

    	 	7	 

     

    

2.48         
Stock Option. “Stock Option”
shall mean any Incentive Stock Option or Non-Qualified Stock Option.

 

2.49         
Subsidiary Corporation. “Subsidiary
Corporation” shall mean any entity (other than the Company) in an unbroken chain of entities beginning with the Company,
provided each entity (other than the last entity) in the unbroken chain owns, at the time of the determination, stock possessing
fifty percent (50%) or more of the total combined voting power of all classes of ownership interests in one of the other entities
in such chain; provided, however, that with respect to an Award of an Incentive Stock Option, the term “Subsidiary Corporation”
shall refer solely to an entity that is taxed under Federal income tax laws as a corporation.

 

2.50         
Ten Percent Stockholder. “Ten Percent
Stockholder” shall mean an individual who, at the time a Stock Option is granted pursuant to Section 6 hereof, owns
(or is deemed to own pursuant to Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined
voting power of all classes of stock of the Company or any Affiliate.

 

2.51         
Termination Date. “Termination Date”
shall mean the date on which Participant’s Continuous Service with the Company (and all Affiliates) terminates due to death,
Disability, voluntary termination, with or without Cause, or otherwise.

 

SECTION
3

ADMINISTRATION OF THE PLAN

 

3.1             
Administration of Plan. 

 

(a)              
The Plan shall be administered by, and the Plan Administrator shall be, the Committee; provided, however, that any power,
authority or discretion granted to the Committee as the Plan Administrator may also be taken by the Board (subject to Section 3.1(c));
provided, further, that (i) if a transaction is intended to qualify as “performance-based compensation” within the
meaning of Section 162(m) of the Code, the Plan shall be administered by the Committee and (ii) if a transaction is intended to
be exempt under Rule 16b-3 of the Exchange Act, it shall be structured to satisfy the requirements for exemption under Rule 16b-3
of the Exchange Act.

 

(b)              
The Committee shall be authorized to act with respect to all matters relating to the administration of the Plan. The Committee
will act by a majority of its members (or by unanimous vote if the Committee is comprised of two (2) members). To the extent the
Committee shall cease to exist or no longer be authorized to act hereunder, the functions delegated to the Committee shall revert
to the Board.

 

(c)              
Notwithstanding anything contained herein to the contrary, any action taken by the Board under this Plan shall require the
affirmative vote of a majority of Directors who are independent, if any, as determined under the rules of any national securities
exchange on which the Common Stock is listed or traded or, if the Common Stock is not listed or traded on any national securities
exchange, The NASDAQ Stock Market.

 

    	 	8	 

     

    

3.2             
Powers of the Plan Administrator.
The Plan Administrator shall have the power, in its sole and absolute discretion, but subject to and within the limitations of,
the express provisions of the Plan:

 

(a)              
To determine from time to time which Eligible Persons shall be granted Awards under the Plan, provided that any Award granted
to a member of the Committee shall be subject to the approval or ratification of the Board;

 

(b)              
To determine when and how each Award shall be granted; what type or combination of types of Awards shall be granted; the
provisions of each Award granted (which need not be identical), including the time or times when an Award may be exercised; the
number of Shares with respect to which an Award shall be granted to each such Person; the Exercise Price or the Purchase Price
for Shares under an Award; the terms, performance criteria or other conditions, vesting periods or any restrictions for an Award
and any restrictions on Shares acquired pursuant to an Award; and any other terms and conditions of an Award that the Plan Administrator
deems appropriate and as are not inconsistent with the terms of the Plan;

 

(c)              
To determine whether, to what extent, and under what circumstances, to allow alternative payment options to exercise Awards,
or pay withholding taxes imposed upon the grant, exercise or vesting of any Award, and the terms and conditions of such payment
options;

 

(d)              
To rely upon Employees for such clerical and recordkeeping duties as may be necessary in connection with the administration
of this Plan;

 

(e)              
To accelerate or defer (with the consent of the subject Participant) the vesting of any rights under an Award;

 

(f)               
To establish, amend and revoke such rules and regulations as it may deem appropriate for the conduct of meetings and the
proper administration of the Plan;

 

(g)              
To delegate to one or more Persons the right to act on its behalf in such matters as authorized by the Plan Administrator;

 

(h)              
To construe and interpret the Plan and Award Agreements issued hereunder;

 

(i)                
To amend the Plan or an Award Agreement to the extent provided under Section 18 hereof. The Plan Administrator, in
the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Award Agreement, in a manner
and to the extent it shall deem necessary or expedient to make the Plan fully effective; and

 

(j)                
To take any and all other actions that are deemed necessary or advisable by the Plan Administrator for the administration
of the Plan.

 

    	 	9	 

     

    

3.3             
Effect of Plan Administrator’s Decision.
All determinations, interpretations and constructions made by the Plan Administrator in good faith shall not be subject to
review by any Person and shall be final, binding and conclusive on all Persons. Any member of the Committee or the Board acting
as Plan Administrator, and any officer or Employee of the Company or any Affiliate acting at the direction of the Plan Administrator,
shall not be personally liable for any action or determination taken or made in good faith with respect to the Plan, and shall,
to the extent provided in subsection 19.6 hereof, be fully indemnified by the Company with respect to any such action or
determination.

 

SECTION
4

SHARES SUBJECT TO PLAN AND RELATED ADJUSTMENTS

 

4.1             
Share Reserve. Except as otherwise
provided in this Section 4 and subsection 17.1, the maximum number of Shares that may be issued with respect to Awards
granted pursuant to this Plan shall not exceed 12,000,000. All or any portion of the Share reserve may be issued in connection
with the exercise of Incentive Stock Options. The Shares issued pursuant to this Plan may be authorized but unissued Shares or
may be issued Shares that have been repurchased or acquired by the Company, including shares purchased by the Company on the open
market for purposes of the Plan.

 

4.2             
Maximum Award to Eligible Person.

 

(a)              
The maximum number of Shares with respect to which Awards may be granted to an Eligible Person during any calendar year
shall not exceed 3,000,000. For purposes of this subsection 4.2(a), an Award that has been granted to an Eligible Person
during the calendar year, but which is subsequently forfeited or otherwise cancelled will be counted against the maximum number
of Shares with respect to which Awards may be granted to such Eligible Person.

 

(b)              
No non-Employee Director may be granted Awards covering Shares having a Fair Market Value of more than $300,000 on the grant
date in any one calendar year.

 

 

4.3             
Cancellation, Expiration, or Forfeiture of Award.
To the extent that any Award granted pursuant to this Plan shall, on and after the Effective Date hereof, be forfeited, expire
or be cancelled, in whole or in part, then the number of Shares subject to the Plan, as provided in subsection 4.1 (other
than Shares issued with respect to Incentive Stock Options), shall be increased by the portion of such awards so forfeited, expired
or cancelled and such forfeited, expired or cancelled Shares may again be awarded pursuant to the provisions of this Plan.

 

4.4             
Payment in Shares. Notwithstanding
anything contained herein to the contrary, Shares tendered in payment of the Exercise Price, Purchase Price or withholding taxes
with respect to an Award shall not become, or again be, available for Awards under this Plan.

 

4.5             
Awards Payable in Shares. The grant of Awards that may not be satisfied by
issuance of Shares shall not count against the maximum number of Shares that may be issued under the Plan pursuant to subsection
4.1. Shares attributable to Awards that may be satisfied

 

    	 	10	 

     

    

either
by the issuance of Shares or by cash or other consideration shall be counted against the maximum number of Shares that may be issued
under the Plan pursuant to subsection 4.1.

 

4.6             
Repurchases of Shares. If Shares issued in connection with any Award granted pursuant to
this Plan, shall, on and after the Effective Date, be repurchased by the Company, in whole or in part, then the number of Shares
subject to the Plan pursuant to subsection 4.1 shall not be increased by that portion of the Shares repurchased by the Company
and such repurchased Shares may not again be awarded pursuant to the provisions of this Plan.

 

4.7             
Issuance of Share Certificates.
Prior to the issuance of Common Stock hereunder, whether upon grant, exercise, or purchase under the applicable Award,
Participant shall submit the consideration, if any, required under the applicable Award Agreement; payment or other provision for
any applicable tax withholding obligations; and all documents to be executed and delivered by Participant in accordance with the
provisions of this Plan and the applicable Award Agreement or as may otherwise be required by the Company or the Plan Administrator,
including, without limitation, with respect to Restricted Shares, a stock power, endorsed in blank, relating to the Shares covered
by such Award. The Company will evidence the issuance of Shares hereunder by any means appropriate, including, without limitation,
book-entry registration or issuance of a duly executed Share certificate in the name of Participant, provided that stock certificates
evidencing Restricted Shares granted pursuant to this Plan shall, if directed by the Company, be held in the custody of the Company
or its duly authorized delegate until the restrictions thereon have lapsed. If certificates are issued, a separate certificate
or certificates will be issued for Shares issued in connection with each type of Award granted to the Participant.

 

SECTION
5

ELIGIBILITY

 

5.1             
Persons Eligible to Participate. The Plan
Administrator shall determine, within the limitations of the Plan, the Employees, Consultants, and Directors to whom Awards are
to be granted. In making the determination of whether to grant an Award to an Employee, Consultant, or Director, as well as the
determination of the type of Award and terms of such Award, the Plan Administrator may consider such factors as the Plan Administrator,
in its sole and absolute discretion, may deem relevant in connection with the purposes of this Plan.

 

5.2             
Evidence of Participation. Each Award
granted to an Eligible Person shall be evidenced by an Award Agreement, in such form as prescribed by the Plan Administrator and
containing such terms and provisions as are not inconsistent with this Plan. The provisions of separate Award Agreements need not
be identical, but each Award Agreement shall include (through incorporation of the provisions hereof by reference in the Award
Agreement or otherwise) the substance of the terms of the Plan. Each Award will be deemed to have been granted as of the date on
which the Plan Administrator has completed the action declaring the Award, which date shall be specified by the Plan Administrator
in the applicable Award Agreement, notwithstanding any delay which may elapse in executing and delivering such Award Agreement.

 

    	 	11	 

     

    

SECTION 6

STOCK OPTIONS

 

6.1             
Grant of Stock Options. The Plan
Administrator may, in its sole and absolute discretion, grant Stock Options, whether alone or in addition to other Awards granted
pursuant to this Plan, to any Eligible Person; provided, however, that Incentive Stock Options may only be granted to Employees.
Each Eligible Person so selected shall be offered a Stock Option to purchase the number of Shares determined by the Plan Administrator
and set forth in an Award Agreement. The Plan Administrator shall specify in the Award Agreement the number of Shares subject to
the Award, whether such Stock Option is an Incentive Stock Option or Non-Qualified Stock Option, and such other terms or conditions
as the Plan Administrator shall, in its sole and absolute discretion, determine appropriate and which are not inconsistent with
the terms of the Plan.

 

6.2             
Award Term. No Stock Option shall
be exercisable after the expiration of the Award Term determined by the Plan Administrator and set out in Participant’s Award
Agreement. Notwithstanding any provision to the contrary, the Award Term of any Stock Option granted under this Plan shall not
exceed ten (10) years from the Award Date; provided, however, that no Incentive Stock Option granted to a Ten Percent Stockholder
will be exercisable after the expiration of five (5) years from the date such Incentive Stock Option is granted.

 

6.3             
Exercise Price. The Exercise
Price of each Stock Option granted under this Section 6 shall be established by the Plan Administrator as of the Award Date.
Notwithstanding the foregoing, the Exercise Price of any Stock Option shall not be less than 100% of the Fair Market Value of a
Share on the Award Date (or if greater, the par value of such Common Stock) or, in the case of an Incentive Stock Option granted
to a Ten Percent Stockholder, 110% of the Fair Market Value of a Share on the Award Date.

 

6.4             
Vesting of Stock Options. Except
as may otherwise be provided in an Award Agreement, each Stock Option granted pursuant to this Plan may only be exercised to the
extent that Participant is vested in such Stock Option. Except as otherwise provided under subsection 17.2 herein,
each Stock Option shall vest separately in accordance with the vesting schedule determined by the Plan Administrator and set out
in the applicable Award Agreement. Notwithstanding the foregoing, the Plan Administrator may accelerate the vesting schedule of
any outstanding Stock Option to the extent the Plan Administrator determines, in its sole and absolute discretion, that such acceleration
is not inconsistent with the purposes of this Plan.

 

6.5             
Transferability of Option.

 

(a)              
Rights to Transfer. A Stock Option shall be transferable to the extent provided in the Award Agreement; provided,
however, that an Incentive Stock Option shall not be transferable except by will or by the laws of descent and distribution and
shall be exercisable during the lifetime of Participant only by Participant. If the Award Agreement does not provide for transferability,
then the Stock Option shall not be transferable except by will or by the laws of descent and distribution, and shall be exercisable
during the lifetime of Participant only by Participant.

 

    	 	12	 

     

    

(b)              
Evidence of Rights. The transferee of a Stock Option shall not be permitted to exercise the Stock Option unless
and until such transferee has provided the Plan Administrator a copy of the will and/or such other evidence as the Plan Administrator
determines necessary to establish the validity of the transfer.

 

6.6             
Qualification of Incentive Stock Options.

 

(a)              
Stockholder Approval of Plan. To the extent stockholder approval of this Plan is required by Section 422 of the Code,
no Eligible Person shall be granted an Incentive Stock Option unless this Plan is approved by the stockholders of the Company within
twelve (12) months before or after the date this Plan is adopted (or, if applicable, amended pursuant to clause (iii) of subsection
18.1) by the Board.

 

(b)              
Fair Market Value Restrictions. To the extent that the aggregate Fair Market Value (determined on the Award Date)
of Common Stock 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 its Affiliates) exceeds one hundred thousand dollars ($100,000), the Stock Options
or portions thereof that exceed such limit (according to the order in which they were granted) shall be treated as Non-Qualified
Stock Options.

 

(c)              
Termination of Authority to Issue Incentive Stock Options. Notwithstanding any provision of this Plan to the contrary,
no Incentive Stock Option shall be granted to any Employee after the Expiration Date.

 

(d)              
Qualification of Incentive Stock Option. To the extent that a Stock Option designated as an Incentive Stock Option
does not qualify as an Incentive Stock Option (whether because of its provisions, the failure of the stockholders of the Company
to timely approve the Plan, or the time or manner of its exercise or otherwise) such Stock Option or the portion thereof that does
not qualify as an Incentive Stock Option shall be deemed to constitute a Non-Qualified Stock Option under this Plan.

 

(e)              
Failure to Qualify. Notwithstanding any provision herein to the contrary, none of the Plan Administrator, the Company,
any Affiliates, or the directors, officers or employees of the foregoing, shall have any liability to any Participant or any other
Person if a Stock Option designated as an Incentive Stock Option fails to qualify as such at any time.

 

6.7             
Payment in Lieu of Shares. Notwithstanding
any provision to the contrary herein, upon exercise of any one or more Stock Options on or after Participant’s Termination
Date, the Company may, in lieu of the issuance of Shares, remit to Participant (or his legal representative, estate, heirs, or
designated beneficiary, as the case may be) a lump sum cash payment equal to the Fair Market Value of the Common Stock that would
otherwise be issued under the applicable Stock Option(s), less the aggregate Exercise Price; provided, however, that such payment
shall not be made unless the Company has sufficient capital and liquidity, as determined by the Board, in its sole and absolute
discretion, to make such cash payment.

 

    	 	13	 

     

    

SECTION 7

STOCK APPRECIATION RIGHTS

 

7.1             
Grant of Stock Appreciation Rights. The
Plan Administrator may grant Stock Appreciation Rights, whether alone or in addition to other Awards granted pursuant to this Plan,
to any Eligible Individual. Each Stock Appreciation Right shall be evidenced by an Award Agreement, which shall include any conditions
and restrictions as the Plan Administrator shall impose as are not inconsistent with the terms of the Plan.

 

7.2             
Award Term. No Stock Appreciation Right
shall be exercisable after the expiration of the Award Term determined by the Plan Administrator and set out in Participant’s
Award Agreement.

 

7.3             
Exercise Price. The Exercise Price of
each Stock Appreciation Right granted under this Section 7 shall be established by the Plan Administrator or shall be determined
by a method established by the Plan Administrator as of the Award Date, but in no event shall the Exercise Price be less than the
Fair Market Value of a Share on the Award Date.

 

7.4             
Vesting of Stock Appreciation Rights.
Except as may otherwise be provided in an Award Agreement, each Stock Appreciation Right granted pursuant to this Plan may only
be exercised to the extent that Participant is vested in such Stock Appreciation Right. Except as otherwise provided under subsection
17.2 herein, each Stock Appreciation Right shall vest separately in accordance with the vesting schedule determined by the
Plan Administrator and set out in the applicable Award Agreement. Notwithstanding the foregoing, the Plan Administrator may accelerate
the vesting schedule of any outstanding Stock Appreciation Right to the extent the Plan Administrator determines, in its sole and
absolute discretion, that such acceleration is not inconsistent with the purposes of this Plan.

 

7.5             
Transferability.

 

(a)              
Right to Transfer. Except to the extent otherwise provided in the applicable Award Agreement, a Stock Appreciation
Right shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime
of Participant only by Participant.

 

(b)              
Designation of Beneficiary. Notwithstanding the foregoing, Participant may, by delivering written notice to the Plan
Administrator, in a form satisfactory to the Plan Administrator, designate a third party who, in the event of the death of Participant,
shall thereafter be entitled to exercise the Stock Appreciation Right.

 

(c)              
Evidence of Rights. The transferee of a Stock Appreciation Right shall not be evidenced on the books and records
of the Company unless and until such transferee has provided the Plan Administrator a copy of the will and/or such other evidence
as the Plan Administrator determines necessary to establish the validity of the transfer.

 

7.6             
Payment of Benefit. Except as otherwise
expressly provided in the applicable Award Agreement, Participant shall be paid for the value of the Stock Appreciation Right in

 

    	 	14	 

     

    

cash, Shares, or a combination thereof,
as determined by the Plan Administrator in its sole and absolute discretion.

 

SECTION
8

EXERCISE OF STOCK OPTIONS AND

STOCK APPRECIATION RIGHTS

 

Each Stock Option and Stock Appreciation
Right shall be exercised subject to, and in accordance with, this Section 8.

 

8.1             
Time of Exercise.

 

(a)              
Voluntary Termination of Service. Unless otherwise provided in the applicable Award Agreement, in the event Participant’s
Continuous Service terminates (other than upon Participant’s death, Disability, Retirement by a Director, or for Cause, or
upon occurrence of a Breach Event), Participant may exercise his Stock Option or Stock Appreciation Right (to the extent that Participant
was entitled to exercise such Award as of the Termination Date) but only within such period of time ending on the earlier of (i)
the day that is three (3) months from Participant’s Termination Date or (ii) the expiration of the Award Term. Notwithstanding
any provision in the Plan or an Award Agreement to the contrary, in the event of a change in capacity of Participant from an Employee
of the Company to either a non-Employee Director or Consultant, if Participant fails to exercise an Incentive Stock Option within
the 3-month period from such Termination Date, as provided herein, the Incentive Stock Option shall, upon expiration of such 3-month
period, become a Non-Qualified Stock Option under the Plan.

 

(b)              
Death of Participant. Unless otherwise provided in the applicable Award Agreement, in the event Participant’s
Continuous Service terminates by reason of such Participant’s death, Participant’s estate, heirs or designated beneficiary
may exercise Participant’s Stock Option or Stock Appreciation Right (to the extent that Participant was entitled to exercise
such Award as of the Termination Date) but only within such period of time ending on the earlier of (i) the day that is twelve
(12) months from Participant’s Termination Date or (ii) the expiration of the Award Term.

 

(c)              
Disability of Participant. Unless otherwise provided in the applicable Award Agreement, in the event Participant’s
Continuous Service terminates by reason of such Participant’s Disability, Participant (or his legal representative) may exercise
Participant’s Stock Option or Stock Appreciation Right (to the extent that Participant was entitled to exercise such Award
as of the Termination Date) but only within such period of time ending on the earlier of (i) the day that is twelve (12) months
from the Participant’s Termination Date or (ii) the expiration of the Award Term.

 

(d)              
Retirement of Directors. Unless otherwise provided in the applicable Award Agreement, in the event of the Retirement
of a Participant who is a Director, such Participant’s Stock Options or Stock Appreciation Rights will not terminate as a
result of such Retirement, and such Participant shall be entitled to exercise such Stock Options or

 

    	 	15	 

     

    

Stock Appreciation Rights (to
the extent that Participant is entitled to exercise such Award as of the date of Retirement) during the applicable Award Term.

 

(e)              
Discretion of Plan Administrator. The Plan Administrator shall have the sole discretion, exercisable at any time
while the Stock Option or Stock Appreciation Right remains outstanding, to extend the time during which such Award is to remain
exercisable following Participant’s Termination Date from the period otherwise in effect for that Award and set forth in
the Award Agreement to such greater period of time as the Plan Administrator shall deem appropriate; provided, however, that the
period in which the Award is exercisable shall not be extended to a date beyond the expiration of the Award Term. If the Plan Administrator
extends the time during which an Incentive Stock Option will remain exercisable, then such extension shall be treated as the grant
of a new Option as of the date of the extension.

 

(f)               
Expiration of Award. If Participant does not exercise his Stock Option or Stock Appreciation Right within the periods
specified in this Section 8, the Award shall terminate and will no longer be exercisable.

 

(g)              
Lapsed and Cancelled Awards. Nothing contained in this Plan will be deemed to extend the term of an Award or to revive
any Award that has previously lapsed or been cancelled, terminated or surrendered.

 

8.2             
Procedure for Exercise. Each exercise of a Stock Option or Stock Appreciation Right shall be evidenced
by an Exercise Agreement in the form prescribed by the Plan Administrator and duly executed by Participant (or his legal representative,
estate, heirs, or designated beneficiary, as the case may be) and shall be accompanied by payment, if applicable, of the Exercise
Price and withholding taxes imposed upon exercise of the Award.

 

SECTION
9

RESTRICTED SHARES

 

9.1             
Grants of Restricted Shares. The
Plan Administrator may, in its sole and absolute discretion, grant Restricted Shares, whether alone or in addition to other Awards
granted pursuant to this Plan, to any Eligible Person. Each Eligible Person granted Restricted Shares shall execute an Award Agreement
setting forth the terms and conditions of such Restricted Shares, including, without limitation, the Purchase Price, if any; the
Restriction Period, which shall in no event exceed ten (10) years from the Award Date, and conditions of forfeitability, whether
based on performance standards, period of service or otherwise.

 

9.2             
Payment for Restricted Shares. Upon
Participant’s acceptance of an applicable Award Agreement for Restricted Shares, Participant shall pay to the Company the
Purchase Price, if any, for the Restricted Shares. Such Purchase Price may be paid in any manner permitted under Section 15
herein and set forth in the applicable Award Agreement. The Purchase Price, if any, shall be determined by the Plan Administrator,
in its sole and absolute discretion, and set forth in the applicable Award Agreement.

 

    	 	16	 

     

    

9.3             
Terms of Restricted Shares.

 

(a)              
Forfeiture of Restricted Shares. Subject to subsection 9.3(b) herein, and except as otherwise provided in
the applicable Award Agreement, all Restricted Shares shall be forfeited and returned to the Company and all rights of Participant
with respect to such Restricted Shares shall terminate unless Participant satisfies the requirements of the Award Agreement, which
may include requirements for continuation of service, performance, and such other terms and conditions as the Plan Administrator,
in its sole and absolute discretion, shall determine applicable with respect to the Restricted Shares.

 

(b)              
Waiver of Restriction Period. Notwithstanding anything contained in this Section 9 to the contrary, the
Plan Administrator may, in its sole and absolute discretion, waive the Restriction Period and any other conditions set forth in
the applicable Award Agreement under appropriate circumstances (which may include the death or Disability of Participant, or a
material change in circumstances arising after the Award Date) and impose such terms and conditions (including forfeiture of a
proportionate number of the Restricted Shares) as the Plan Administrator shall deem appropriate.

 

9.4             
Transferability of Restricted Shares

 

(a)              
Rights to Transfer. An Award of Restricted Shares shall be transferable to the extent provided in the Award Agreement.
If the Award Agreement does not provide for transferability, then the Restricted Shares shall not be transferable except by will
or by the laws of descent and distribution.

 

(b)              
Evidence of Rights. The transferee of an Award of Restricted Shares shall not be evidenced on the books and records
of the Company unless and until such transferee has provided the Plan Administrator a copy of the will and/or such other evidence
as the Plan Administrator determines necessary to establish the validity of the transfer.

 

SECTION
10

RESTRICTED SHARE UNITS

 

10.1         
Grant of Restricted Share Units. The
Plan Administrator may, in its sole and absolute discretion, grant Restricted Share Units, whether alone or in addition to other
Awards granted pursuant to this Plan, to any Eligible Person. Each Eligible Person granted Restricted Share Units shall execute
an Award Agreement, which shall set forth such terms and conditions applicable to the Restricted Share Units as the Plan Administrator
shall determine are appropriate and consistent with the provisions of the Plan, including the Restriction Period, which shall in
no event exceed ten (10) years from the Award Date, and conditions of forfeitability, whether based on performance standards, period
of service or otherwise. The Plan Administrator may, as of the Award Date, designate an Award of Restricted Share Units as a Performance-Based
Award. A Restricted Share Unit shall represent an unfunded, unsecured right to receive one Share or cash equal to the Fair Market
Value of a Share, as provided in the Award Agreement.

 

10.2         
Terms of Restricted Share Units.

 

(a)              
Forfeiture of Restricted Share Units. Subject to subsection 9.2(b) herein, and except as otherwise provided
in the applicable Award Agreement, all Restricted

 

    	 	17	 

     

    

Share Units shall be forfeited
and all rights of a Participant with respect to such Restricted Share Units shall terminate unless the Participant satisfies the
requirements of the Award Agreement, which may include requirements for continuation of service, performance, and such other terms
and conditions as the Plan Administrator, in its sole and absolute discretion, shall determine to be applicable with respect to
the Restricted Share Units.

 

(b)              
Waiver of Restriction Period. Notwithstanding anything contained in this Section 9 to the contrary, the
Plan Administrator may, in its sole and absolute discretion, waive the Restriction Period and any other conditions set forth in
the applicable Award Agreement under appropriate circumstances (which may include the death or Disability of Participant, or a
material change in circumstances arising after the Award Date) and impose such terms and conditions (including forfeiture of a
proportionate number of the Restricted Share Units) as the Plan Administrator shall deem appropriate.

 

10.3         
Settlement. Except as otherwise
provided in an applicable Award Agreement, Restricted Share Units shall be settled no later than March 15th of the calendar
year following the end of the calendar year in which such Restricted Share Units are no longer subject to a substantial risk of
forfeiture. Notwithstanding the foregoing, settlement may occur after such date if (i) it is administratively impracticable to
settle a Restricted Share Unit by such date and such impracticability was unforeseeable on the Award Date, provided that settlement
occurs as soon as administratively practicable thereafter; or (ii) settlement by such date would jeopardize the ability of the
Company to continue as a going concern, provided that settlement occurs as soon as doing so would not have such effect.

 

10.4         
Transferability of Restricted Share Units.

 

(a)              
Rights to Transfer. An Award of Restricted Share Units shall be transferable to the extent provided in the Award
Agreement. If the Award Agreement does not provide for transferability, then the Restricted Share Units shall not be transferable
except by will or by the laws of descent and distribution.

 

(b)              
Evidence of Rights. The transferee of an Award of Restricted Share Units shall not be evidenced on the books and
records of the Company unless and until such transferee has provided the Plan Administrator a copy of the will and/or such other
evidence as the Plan Administrator determines necessary to establish the validity of the transfer.

 

SECTION
11

PHANTOM SHARE AWARDS

 

11.1         
Grants of Phantom Shares. The Plan Administrator
may grant Phantom Shares, whether alone or in addition to other Awards granted pursuant to this Plan, to any Eligible Individual.
Each Phantom Share shall be evidenced by an Award Agreement, which shall include any conditions and restrictions as the Plan Administrator
shall impose as are not inconsistent with the terms of the Plan.

 

    	 	18	 

     

    

11.2         
Award Accounts. Phantom Shares granted
to a Participant shall be credited to a bookkeeping account to be maintained on behalf of such Participant. Participant shall not
be entitled to the issuance of any Shares in connection with the grant of a Phantom Share. A Phantom Share shall represent an unfunded,
unsecured right to receive one Share or cash equal to the Fair Market Value of a Share, as provided in the Award Agreement.

 

11.3         
Vesting of Award. Participant shall be
entitled to payment for each vested Phantom Share. Each Phantom Share shall vest separately in accordance with the vesting schedule
or upon the occurrence of a designated event determined by the Plan Administrator, and set out in the applicable Award Agreement.
Notwithstanding the foregoing, the Plan Administrator may accelerate the applicable vesting schedule if the Plan Administrator
determines, in its sole and absolute discretion that the acceleration of such vesting schedule would be in the best interest of
the Company.

 

11.4         
Settlement of Award. Except as otherwise
provided in the applicable Award Agreement, an Award of Phantom Shares shall be settled, in cash, no later than March 15th of the
calendar year following the end of the calendar year in which the Change in Control or other specified event occurs, or such later
date as may be permitted under Section 409A of the Code without resulting in a violation of Section 409A of the Code. A Phantom
Share shall represent an unfunded, unsecured right to receive cash equal to the Fair Market Value of a Share, as provided in the
Award Agreement.

 

SECTION
12

PERFORMANCE-BASED AWARDS

 

12.1         
Grants of Performance-Based Awards. The
Plan Administrator may grant Performance-Based Awards, whether alone or in addition to other Awards granted pursuant to this Plan,
to any Eligible Individual. Each Performance-Based Award shall be evidenced by an Award Agreement, which agreement shall describe
the terms of such Award, including the Performance Period, the Performance Goal(s) to be achieved, the Performance Metrics to be
measured, whether such Award shall be forfeited upon termination of employment, the applicable settlement values upon achievement
of the Performance Goals, and such other conditions and restrictions as the Plan Administrator shall impose as are not inconsistent
with the terms of the Plan.

 

12.2         
Achievement of Performance Goals. The
extent to which any applicable Performance Goal has been achieved shall be conclusively determined by the Plan Administrator in
its sole and absolute discretion. If the Plan Administrator determines, in its sole and absolute discretion, that the established
Performance Goals or Performance Metrics are no longer suitable because of a change in the Company’s business, operations,
corporate structure or for other reasons that the Plan Administrator deems satisfactory, the Plan Administrator may modify the
performance measures or objectives and/or the performance period.

 

12.3         
Payment of Award. Except as otherwise
expressly provided in the applicable Award Agreement, Performance Awards shall be paid in cash, Shares, or a combination thereof,
as determined by the Plan Administrator in its sole and absolute discretion. Performance Awards may be payable in a single payment
or in installments and may be payable at a specified date or

 

    	 	19	 

     

    

dates or upon attaining the performance
objective or objectives, all at the sole and absolute discretion of the Plan Administrator and set out in the applicable Award
Agreement.

 

12.4         
Awards to Covered Employees. The
Plan Administrator shall take all reasonable steps to ensure that Awards issued to Covered Employees constitute “performance-based
compensation” under Section 162(m) of the Code, unless the Plan Administrator determines, in its sole and absolute discretion,
that doing so would be inconsistent with the purposes of this Plan or the interests of the Company.

 

SECTION
13

OTHER AWARDS

 

The Plan Administrator
may grant to any Eligible Individual other forms of Awards based upon, payable in or otherwise related to, in whole or in part,
the Common Stock, if the Plan Administrator, in its sole discretion, determines that such other form of Award is consistent with
the purposes of this Plan. The terms and conditions of such other form of Award shall be specified in an Award Agreement that sets
forth the terms and conditions of such Award, including, but not limited to, the price, if any, and the vesting schedule, if any,
of such Award and shall include any conditions and restrictions as the Plan Administrator shall impose as are not inconsistent
with the terms of the Plan. Such Awards may be granted for such minimum consideration, if any, as may be required by applicable
law or for such other greater consideration as may be determined by the Plan Administrator, in its sole and absolute discretion.

 

SECTION
14

STOCKHOLDER RIGHTS

 

Except to the extent
otherwise provided in the applicable Award Agreement, no Person shall have any rights as a stockholder of the Company with respect
to any Shares of Common Stock subject to an Award unless and until such Person becomes the holder of record of such Shares pursuant
to subsection 4.7 hereof, and except as otherwise permitted by subsection 17.1, no adjustment will be made for dividends
or other distributions in respect of such Shares for which the record date is prior to the date on which such Person has become
the holder of record. For these purposes, a Participant who receives a grant of Restricted Shares shall become a holder of record
as of the Award Date or, if later, the date on which the applicable Purchase Price is paid, and shall thereafter be entitled to
the voting and dividend rights appurtenant to such Shares.

 

SECTION
15

PAYMENTS UNDER AWARDS

 

15.1         
Consideration for Shares.
Except as otherwise provided in this Plan, consideration for Shares purchased under Awards may be submitted only in such amounts
and at such intervals of time as specified in the applicable Award Agreement:

 

(a)              
by payment to the Company of the amount of such consideration by cash, wire transfer, certified check or bank draft;

 

    	 	20	 

     

    

(b)              
by execution of a promissory note, to be submitted with a stock power, endorsed in blank relating to the Shares held as
collateral for such note;

 

(c)              
by “net exercise”, pursuant to which the Company withholds from the Shares that would otherwise be issued upon
exercise of an Award that number of Shares with a Fair Market Value equal to the Exercise Price for the Award;

 

(d)              
through a broker-dealer acting on behalf of Participant if (i) the broker-dealer has received a fully and duly endorsed
copy of the Award Agreement and a fully and duly endorsed notice of exercise or purchase, along with written instructions signed
by Participant requesting that the Company deliver Shares to the broker-dealer to be held in a designated account on behalf of
Participant; (ii) adequate provision has been made with respect to the payment of any withholding taxes due upon grant, exercise,
or vesting; and (iii) the broker-dealer and Participant have otherwise complied with applicable securities laws;

 

(e)              
through the delivery of unrestricted Shares having a Fair Market Value equal to the Exercise Price and owned by Participant
for more than six (6) months (or such shorter or longer period of time as is necessary to avoid a charge to earnings on the Company’s
financial statements) or that otherwise meet the conditions established by the Company to avoid adverse accounting consequences
(as determined by the Company);

 

(f)               
any combination of one or more methods described herein; or

 

(g)              
any other consideration deemed acceptable by the Plan Administrator, in its sole and absolute discretion.

 

Notwithstanding any
provision herein to the contrary, Participant shall not be permitted to exercise an Incentive Stock Option pursuant to paragraphs
(c) - (g) above unless the Award Agreement specifically permits such method of exercise on the Award Date.

 

15.2         
Withholding Requirements. The amount,
as determined by the Plan Administrator, of any federal, state or local tax required to be withheld by the Company due to the grant,
exercise, or vesting of an Award must be submitted in such amounts and at such time as specified in the applicable Award Agreement:

 

(a)              
by payment to the Company of the amount of such withholding obligation by cash, wire transfer, certified check or bank draft;

 

(b)              
through either (i) the retention by the Company of a number of Shares out of the Shares being acquired through the Award
or (ii) the delivery of unrestricted Shares owned by Participant for more than six (6) months (or such shorter or longer period
as is necessary to avoid a charge to earnings on the Company’s financial statements) and having a Fair Market Value equal
to the minimum withholding obligation or that otherwise meet the conditions established by the Company to avoid adverse accounting
consequences (as determined by the Company); or

 

    	 	21	 

     

    

(c)              
pursuant to a written agreement between Participant and the Company authorizing the Company to withhold from such Participant’s
regular wages the amount of such withholding tax obligation.

 

If
Participant elects to use and the Plan Administrator permits either method described in subsection 15.2(b) herein in full
or partial satisfaction of any withholding tax liability resulting from the grant, exercise or vesting of an Award hereunder, the
Company shall remit an amount equal to the Fair Market Value of the Shares so withheld or delivered, as the case may be, to the
appropriate taxing authorities.

 

SECTION
16

COMPLIANCE WITH SECURITIES AND OTHER LAWS

 

16.1         
Securities Laws. Notwithstanding any other
provision of this Plan, the Company shall not be obligated to sell or issue any Shares pursuant to any Award granted under this
Plan unless (a) the Shares have been registered under applicable Federal securities law, (b) the prior approval of such sale or
issuance has been obtained from any state regulatory body having jurisdiction to the extent necessary to comply with applicable
state securities laws, (c) the Shares have been duly listed or quoted on a national securities exchange or automated quotation
system of a registered securities association in accordance with the procedures specified thereunder and (d) with respect to Participants
subject to Section 16 of the Exchange Act, the Company determines that the Plan, the Award Agreement and the sale or issuance of
Shares thereunder, comply with all applicable provisions of Rule 16b-3 of the Exchange Act (or any successor provision thereto).
The Plan Administrator may modify or revoke all or any provision of an Award Agreement in order to comply with applicable federal
and state securities laws and none of the Company, the Plan Administrator, or any Director, officer, employee, agent or representative
thereof will have liability to any Person for refusing to issue, deliver or transfer any Award or any Share issuable in connection
with such Award if such refusal is based upon the foregoing provisions of this subsection 16.1.

 

16.2         
Prohibition on Deferred Compensation.
Notwithstanding any provision herein to the contrary, any Award issued hereunder that constitutes a deferral of compensation under
a “nonqualified deferred compensation plan”, as such term is defined under Section 409A(d)(1) of the Code (or a successor
provision thereto), shall be modified or cancelled to comply with the requirements of Section 409A of the Code (or a successor
provision thereto) and applicable guidance published in the Internal Revenue Bulletin.

 

SECTION
17

ADJUSTMENTS TO AWARDS

 

17.1         
Capitalization Adjustments. If any change
is made in the Common Stock subject to the Plan, or subject to any Award, without the receipt of consideration by the Company (through
merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash,
stock split, liquidating dividend, combination of Shares, exchange of Shares, change in corporate structure or other transaction
not involving the receipt of consideration by the Company), the Plan shall be appropriately adjusted in the class(es) and maximum
number of Shares available for issuance under the Plan pursuant to subsection 4.1 and

 

    	 	22	 

     

    

available for issuance to an Eligible Person
pursuant to subsection 4.2, and all outstanding Awards shall be appropriately adjusted in the class(es) and number of Shares
and price per Share of Common Stock subject to such outstanding Awards. The Plan Administrator shall make such adjustments, and
its determination shall be final, binding and conclusive. (The conversion of any convertible securities of the Company shall not
be treated as a transaction “without receipt of consideration” by the Company).

 

17.2         
Change in Control. In the event of a Change
in Control, unless the Plan Administrator determines otherwise, then with respect to Awards held by Participants whose Continuous
Service has not terminated:

 

(a)              
Notice and Acceleration. (i) The Company shall provide each Participant written notice of such Change in Control,
(ii) all outstanding Stock Options and Stock Appreciation Rights of such Participant shall automatically accelerate and become
fully exercisable, and (iii) the restrictions and conditions on all outstanding Restricted Shares and Restricted Share Units held
by such Participant shall immediately lapse.

 

(b)              
Assumption of Grants. Upon a Change in Control where the Company is not the surviving corporation (or survives only
as a subsidiary of another corporation), unless the Plan Administrator determines otherwise, all outstanding Stock Options and
Stock Appreciation Rights that are not exercised shall be assumed by, or replaced with comparable options or rights, by the surviving
corporation.

 

(c)              
Other Alternatives. Notwithstanding the foregoing, in the event of a Change in Control, the Plan Administrator may
take one or both of the following actions: the Plan Administrator may (i) require that Participants surrender their outstanding
Stock Options and Stock Appreciation Rights in exchange for a payment by the Company, in cash or Common Stock as determined by
the Plan Administrator, in an amount equal to the amount by which the then Fair Market Value of the shares of Common Stock subject
to the Participant’s unexercised Stock Options and Stock Appreciation Rights exceeds the Exercise Price of the Stock Options,
or the Fair Market Value of the Stock Appreciation Rights on the Award Date, as applicable, or (ii) after giving Participants an
opportunity to exercise their outstanding Stock Options and Stock Appreciation Rights, terminate any or all unexercised Stock Options
and Stock Appreciation Rights at such time as the Plan Administrator deems appropriate. Such surrender or termination shall take
place as of the date of the Change in Control or such other date as the Committee may specify.

 

17.3         
Termination for Cause. Except to the extent
otherwise provided in the applicable Award Agreement(s), in the event Participant’s Continuous Service is terminated for
Cause, all outstanding Awards held by such Participant, whether or not vested, shall immediately terminate without consideration
to Participant.

 

17.4         
Breach Event. Except to the extent otherwise provided in the applicable Award Agreement(s), upon the earliest
occurrence of a Breach Event, all outstanding Awards held by such Participant, whether or not vested, shall immediately terminate
without consideration to Participant.

 

    	 	23	 

     

    

SECTION 18

AMENDMENT AND TERMINATION

 

18.1         
Amendment of Plan. Notwithstanding
anything contained in this Plan to the contrary, all provisions of this Plan may at any time, or from time to time, be modified
or amended by the Board; provided, however, that no amendment or modification shall be made to the Plan that would (i) impair the
rights of any Participant with respect to an outstanding Award issued to such Participant, unless the Participant impaired by the
amendment or modification consents to such change in writing; (ii) expand the types of Awards available under the Plan or otherwise
materially revise the Plan; or (iii) increase the number of Shares reserved for issuance under the Plan (other than in accordance
with an adjustment pursuant to subsection 17.1 hereof), modify the class of Persons eligible to receive Awards under the
Plan, or change the identity of the granting company or the Shares issued upon exercise of Incentive Stock Options, unless an amendment
under (ii) or (iii) above is approved by the stockholders of the Company within twelve (12) months before or after such amendment.
In addition, the Plan Administrator shall be authorized, to the same extent as the Board, to correct any defect, omission or inconsistency
in the Plan in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective.

 

18.2         
Amendment of Award. The Plan Administrator
may amend, modify or terminate any outstanding Award at any time prior to payment or exercise in any manner not inconsistent with
the terms of this Plan; provided, however, that a Participant’s rights under the Award shall not be impaired by such amendment
unless (i) the Plan Administrator requests the consent of such Participant and (ii) Participant consents in writing.

 

18.3         
Termination of Plan. The Board may suspend
or terminate this Plan at any time, and such suspension or termination may be retroactive or prospective; provided that the termination
of this Plan shall not impair or affect any Award previously granted hereunder and the rights of the holder thereof shall remain
in effect until the Award has been exercised in its entirety or has expired or otherwise has been terminated by the terms of such
Award. Absent any action by the Board to terminate or suspend the Plan, the Plan shall automatically terminate on the Expiration
Date.

 

SECTION
19

GENERAL PROVISIONS

 

19.1         
General Assets. The proceeds to be received
by the Company upon exercise of any Award or purchase of Shares pursuant to any Award will constitute general assets of the Company
and may be used for any proper purposes.

 

19.2         
No Assignment or Alienation. Any attempted
assignment, transfer, pledge, hypothecation or other disposition of an Award or Shares issued in connection with an Award contrary
to the provisions of this Plan, the applicable Award Agreement, or the levy of any execution, attachment or similar process upon
an Award or Shares issued in connection with an Award shall be null and void and without effect.

 

    	 	24	 

     

    

19.3         
No Limit on Other Compensation Arrangements.
Nothing contained in this Plan shall prevent the Company from adopting or continuing in effect other compensation arrangements,
and such arrangements may be either generally applicable or applicable only in specific cases.

 

19.4         
Tax Withholding. The Plan
Administrator shall notify each Participant of any tax withholding obligations arising as a result of the grant, exercise or vesting
of an Award. As a condition to Participant’s exercise of an Award and, if applicable, the issuance of Shares, Participant
must satisfy the applicable withholding obligation as may be required by law in a manner permitted under Section 15.2 hereof.

 

19.5         
No Right to Employment or Continuation of Relationship.
Nothing in this Plan or in any Award Agreement, nor the grant of any Award, shall confer upon or be construed as giving
any Participant any right to remain in the employ of the Company or an Affiliate or to continue as a Consultant or non-Employee
Director. Further, the Company or an Affiliate may at any time dismiss a Participant from employment or terminate the relationship
of any Consultant or non-Employee Director with the Company or any Affiliate, free from any liability or any claim pursuant to
this Plan, unless otherwise expressly provided in this Plan or in any Award Agreement. No Consultant, Director or Employee of the
Company or any Affiliate shall have any claim to be granted an Award, and there is no obligation for uniformity of treatment of
any Consultant, Director or Employee of the Company or any Affiliate, or of any Participant.

 

19.6         
Indemnification of Plan Administrator.
The Company shall indemnify each present and future member of the Committee or the Board acting in its capacity as Plan Administrator,
as well as any officer or employee acting at the direction of the Plan Administrator or its authorized delegate, for all expenses
(including the amount of judgments and the amount of approved settlements made with a view to the curtailment of costs of litigation,
other than amounts paid to the Company itself) reasonably incurred by him in connection with or arising out of any action, suit,
or proceeding in which he may be involved by reason of his performance of services in connection with the administration of this
Plan, whether or not he continues to perform such services at the time of incurring such expenses; provided, however, that such
indemnity shall not include any expenses incurred by such individual (a) in respect of matters as to which he shall be finally
adjudged in any such action, suit, or proceeding to have been guilty of gross negligence or willful misconduct in the performance
of his duties hereunder or (b) in respect of any matter in which any settlement is effected in an amount in excess of the amount
approved by the Company on the advice of its legal counsel. The foregoing right of indemnification shall inure to the benefit of
the heirs, executors, or administrators of the estate of each such member of the Committee or the Board, as well as any employee
acting at the direction of the Plan Administrator or its authorized delegate, and shall be in addition to all other rights to which
such member, officer or employee shall be entitled as a matter of law, contract, or otherwise.

 

19.7         
No Limitation Upon the Rights of the Company.
The grant of an Award pursuant to this Plan shall not affect in any way the right or power of the Company to make adjustments,
reclassifications, or changes of its capital or business structure; to merge, convert or consolidate; to dissolve or liquidate;
or sell or transfer all or any part of its business or assets.

 

    	 	25	 

     

    

19.8         
No Fractional Shares. No
fractional Shares shall be issued or delivered pursuant to this Plan. If an Award vests or becomes exercisable with respect to
a fractional Share, such installment will instead be rounded to the next highest whole number of Shares, except for the final installment,
which will be for the balance of the total Shares subject to the Award. If a fractional Share is granted or issuable under an Award,
the Plan Administrator shall pay cash to Participant in an amount equal to the proportional Fair Market Value of such fractional
Share in lieu of any such fractional Share, and any rights with respect to such fractional Share shall be cancelled, terminated
and otherwise eliminated.

 

19.9         
Restriction on Repricing. Notwithstanding
any provision in this Plan to the contrary, repricing of Stock Options and Stock Appreciation Rights shall not be permitted. For
this purpose, a repricing means any of the following (or any other action that has the same effect as any of the following): (i)
changing the terms of a Stock Option or a Stock Appreciation Right to lower its exercise price; (ii) any other action that is treated
as a repricing under generally accepted accounting principles; and (iii) repurchasing or canceling a Stock Option or Stock Appreciation
Right at a time when its exercise price is equal to or greater than the fair market value of the underlying Shares in exchange
for cash, another Stock Option, Stock Appreciation Right, Restricted Shares or other equity award. Such cancellation and exchange
would be considered a repricing regardless of whether it is treated as a repricing under generally accepted accounting principles
and regardless of whether it is voluntary on the part of the Participant.

 

19.10     
Clawback of Benefits. Notwithstanding any other provisions in this Plan or an Award Agreement to the contrary,
the Company may cancel any Award, require the Participant to reimburse any or all amounts paid pursuant to an Award or under the
terms of this Plan, and effect any other right of recoupment of equity or other compensation provided under the Plan in
accordance with any Company policies that may be adopted and/or modified from time to time.

 

19.11     
GOVERNING LAW. TO THE EXTENT
NOT OTHERWISE PREEMPTED BY FEDERAL LAW, THE VALIDITY, CONSTRUCTION AND EFFECT OF THIS PLAN AND ANY RULES AND REGULATIONS RELATING
TO THIS PLAN SHALL BE DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO THE CONFLICT OF
LAWS PRINCIPLES THEREOF.

 

19.12     
Qualification of Plan. This
Plan is not intended to be, and shall not be, qualified under Section 401(a) of the Code.

 

19.13     
Unfunded Benefits. Each Award represents an unfunded, unsecured right to receive
cash or Shares upon settlement of the Award. The Company shall not be obligated to set aside any amounts or establish a trust for
the payment of benefits hereunder, unless otherwise specifically provided herein.

 

19.14     
Compliance within Jurisdiction.
Notwithstanding any provision herein to the contrary, this Plan shall not be effective in any jurisdiction, and no Awards shall
be granted to residents thereof, unless the Plan has been properly qualified under the applicable securities laws, if any, of such
jurisdiction, if such proper qualification is required pursuant to such securities laws, if any.

 

    	 	26	 

     

    

19.15     
Severability. If any provision
of this Plan or any Award is, or becomes, or is deemed to be, invalid, illegal or unenforceable in any jurisdiction or as to any
individual or Award, or would cause this Plan or any Award to fail to comply under any law deemed applicable by the Plan Administrator,
such provision shall be construed or deemed amended to conform to applicable law, or if it cannot be construed or deemed amended
without, in the sole determination of the Plan Administrator, materially altering the intent of this Plan or the Award, such provision
shall be stricken as to such jurisdiction, individual or Award and the remainder of this Plan and any such Award shall remain in
full force and effect.

 

19.16     
Headings. Headings are given
throughout this Plan solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of this Plan or any provision thereof.

 

19.17     
Gender and Number. In construing
the Plan, any masculine terminology herein shall also include the feminine, and the definition of any term herein in the singular
shall also include the plural, except when otherwise indicated by the context.

 

    	 	27

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