Document:

Exhibit 10.27

 

TELKONET, INC.

 

2010 AMENDED AND RESTATED STOCK OPTION
AND INCENTIVE PLAN

(amended and restated effective as of November
17, 2016)

 

		SECTION	1.          
GENERAL PURPOSE OF THE PLAN; DEFINITIONS

 

The following sets forth the terms and conditions
of the 2010 Amended and Restated Stock Option and Incentive Plan (the “Plan”) adopted by the Board of Directors of
Telkonet, Inc., a Utah corporation (the “Company”), effective November 17, 2016. The Plan was originally adopted by
the Board of Directors of the Company on September 23, 2010, subject to the approval by the stockholders of the Company. Such stockholder
approval was obtained on November 17, 2010. The purpose of the Plan is to encourage and enable the officers, employees, Non-Employee
Directors and other key persons (including Consultants and prospective employees) of the Company and its Subsidiaries upon whose
judgment, initiative and efforts the Company largely depends for the successful conduct of its business to acquire a proprietary
interest in the Company. It is anticipated that providing such persons with a direct stake in the Company’s welfare will
assure a closer identification of their interests with those of the Company and its stockholders, thereby stimulating their efforts
on the Company’s behalf and strengthening their desire to remain with the Company.

 

The following terms shall be defined as
set forth below:

 

“Act” means the Securities Act
of 1933, as amended, and the rules and regulations thereunder.

 

“Administrator” means either
the Board or the compensation committee of the Board or a similar committee performing the functions of the compensation committee
and which is comprised of not less than two Non-Employee Directors who are independent.

 

“Award” or “Awards,”
except where referring to a particular category of grant under the Plan, shall include Incentive Stock Options, Non-Qualified Stock
Options, Stock Appreciation Rights, Restricted Stock Units, Restricted Stock Awards, Unrestricted Stock Awards, Cash-Based Awards,
Performance Share Awards and Dividend Equivalent Rights.

 

“Award Certificate” means a
written or electronic document setting forth the terms and provisions applicable to an Award granted under the Plan. Each Award
Certificate is subject to the terms and conditions of the Plan.

 

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

 

“Cash-Based Award” means an
Award entitling the recipient to receive a cash-denominated payment.

 

“Code” means the Internal Revenue
Code of 1986, as amended, and any successor Code, and related rules, regulations and interpretations.

 

“Consultant” means any natural
person that provides bona fide services to the Company, and such services are not in connection with the offer or sale of securities
in a capital-raising transaction and do not directly or indirectly promote or maintain a market for the Company’s securities.

 

“Covered Employee” means an
employee who is a “Covered Employee” within the meaning of Section 162(m) of the Code.

 

“Dividend Equivalent Right”
means an Award entitling the grantee to receive credits based on cash dividends that would have been paid on the shares of Stock
specified in the Dividend Equivalent Right (or other award to which it relates) if such shares had been issued to and held by the
grantee.

 

 

 

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“Effective Date” means the date
on which the Plan is approved by stockholders as set forth in Section 21.

 

“Exchange Act” means the Securities
Exchange Act of 1934, as amended, and the rules and regulations thereunder.

 

“Fair Market Value” of the Stock
on any given date means the fair market value of the Stock determined in good faith by the Administrator; provided, however, that
if the Stock is admitted to quotation on NYSE Amex, LLC or another national securities exchange, the determination shall be made
by reference to market quotations.  If there are no market quotations for such date, the determination shall be made
by reference to the last date preceding such date for which there are market quotations.

 

“Incentive Stock Option” means
any Stock Option designated and qualified as an “incentive stock option” as defined in Section 422 of the Code.

 

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

 

“Non-Qualified Stock Option”
means any Stock Option that is not an Incentive Stock Option.

 

“Option” or “Stock Option”
means any option to purchase shares of Stock granted pursuant to Section 5.

 

“Performance-Based Award” means
any Restricted Stock Award, Restricted Stock Units, Performance Share Award or Cash-Based Award granted to a Covered Employee that
is intended to qualify as “performance-based compensation” under Section 162(m) of the Code and the regulations
promulgated thereunder.

 

“Performance Criteria” means
the criteria that the Administrator selects for purposes of establishing the Performance Goal or Performance Goals for an individual
for a Performance Cycle. The Performance Criteria (which shall be applicable to the organizational level specified by the Administrator,
including, but not limited to, the Company or a unit, division, group, or Subsidiary of the Company) that will be used to establish
Performance Goals are limited to the following:  earnings before interest, taxes, depreciation and amortization, net
income (loss) (either before or after interest, taxes, depreciation and/or amortization), changes in the market price of the Stock,
economic value-added, funds from operations or similar measure, sales or revenue, acquisitions or strategic transactions, operating
income (loss), cash flow (including, but not limited to, operating cash flow and free cash flow), return on capital, assets, equity,
or investment, stockholder returns, return on sales, gross or net profit levels, productivity, expense, margins, operating efficiency,
customer satisfaction, working capital, earnings (loss) per share of Stock, sales or market shares and number of customers, any
of which may be measured either in absolute terms or as compared to any incremental increase or as compared to results of a peer
group.

 

“Performance Cycle” means one
or more periods of time, which may be of varying and overlapping durations, as the Administrator may select, over which the attainment
of one or more Performance Criteria will be measured for the purpose of determining a grantee’s right to and the payment
of a Restricted Stock Award, Restricted Stock Units, Performance Share Award or Cash-Based Award. Each such period shall not be
less than 12 months.

 

“Performance Goals” means, for
a Performance Cycle, the specific goals established in writing by the Administrator for a Performance Cycle based upon the Performance
Criteria.

 

“Performance Share Award” means
an Award entitling the recipient to acquire shares of Stock upon the attainment of specified Performance Goals.

 

“Restricted Stock Award” means
an Award entitling the recipient to acquire, at such purchase price (which may be zero) as determined by the Administrator, shares
of Stock subject to such restrictions and conditions as the Administrator may determine at the time of grant.

 

“Restricted Stock Units” means
an Award of phantom stock units to a grantee.

 

 

 

 

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“Sale Event” shall mean (i) the
sale of all or substantially all of the assets of the Company on a consolidated basis to an unrelated person or entity, (ii) a
merger, reorganization or consolidation pursuant to which the holders of the Company’s outstanding voting power immediately
prior to such transaction do not own a majority of the outstanding voting power of the resulting or successor entity (or its ultimate
parent, if applicable) immediately upon completion of such transaction, or (iii) the sale of all of the Stock of the Company
to an unrelated person or entity.

 

“Sale Price” means the value
as determined by the Administrator of the consideration payable, or otherwise to be received by stockholders, per share of Stock
pursuant to a Sale Event.

 

“Section 409A” means Section 409A
of the Code and the regulations and other guidance promulgated thereunder.

 

“Stock” means the Common Stock,
par value $0.001 per share, of the Company, subject to adjustments pursuant to Section 3.

 

“Stock Appreciation Right” means
an Award entitling the recipient to receive shares of Stock having a value equal to the excess of the Fair Market Value of the
Stock on the date of exercise over the exercise price of the Stock Appreciation Right multiplied by the number of shares of Stock
with respect to which the Stock Appreciation Right shall have been exercised.

 

“Subsidiary” means any corporation
or other entity (other than the Company) in which the Company has at least a 50 percent interest, either directly or indirectly.

 

“Ten Percent Owner” means an
employee who owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than 10 percent
of the combined voting power of all classes of stock of the Company or any parent or subsidiary corporation.

 

“Unrestricted Stock Award” means
an Award of shares of Stock free of any restrictions.

 

		SECTION	2.          
ADMINISTRATION OF PLAN; ADMINISTRATOR AUTHORITY TO SELECT GRANTEES AND DETERMINE AWARDS

 

(a)             
Administration of Plan. The Plan shall be administered by the Administrator, provided that the amount, timing and terms
of the grants of Awards to Non-Employee Directors shall be determined by the compensation committee or similar committee comprised
solely of Non-Employee Directors.

 

(b)             
Powers of Administrator. The Administrator shall have the power and authority to grant Awards consistent with the terms
of the Plan, including the power and authority:

 

(i)              
to select the individuals to whom Awards may from time to time be granted;

 

(ii)             
to determine the time or times of grant, and the extent, if any, of Incentive Stock Options, Non-Qualified Stock Options,
Stock Appreciation Rights, Restricted Stock Awards, Restricted Stock Units, Unrestricted Stock Awards, Cash-Based Awards, Performance
Share Awards and Dividend Equivalent Rights, or any combination of the foregoing, granted to any one or more grantees;

 

(iii)           
to determine the number of shares of Stock to be covered by any Award;

 

(iv)           
to determine and modify from time to time the terms and conditions, including restrictions, not inconsistent with the terms
of the Plan, of any Award, which terms and conditions may differ among individual Awards and grantees, and to approve the forms
of Award Certificates;

 

 

 

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(v)             
to accelerate at any time the exercisability or vesting of all or any portion of any Award provided that the Administrator
generally shall not exercise such discretion to accelerate Awards subject to Sections 7 and 8 except in the event of the grantee’s
death, disability or retirement, or a change in control (including a Sale Event);

 

(vi)           
subject to the provisions of Section 5(b), to extend at any time the period in which Stock Options may be exercised;
and

 

(vii)          
at any time to adopt, alter and repeal such rules, guidelines and practices for administration of the Plan and for its own
acts and proceedings as it shall deem advisable; to interpret the terms and provisions of the Plan and any Award (including related
written instruments); to make all determinations it deems advisable for the administration of the Plan; to decide all disputes
arising in connection with the Plan; and to otherwise supervise the administration of the Plan.

 

All decisions and interpretations of the
Administrator shall be binding on all persons, including the Company and Plan grantees.

 

(c)             
Delegation of Authority to Grant Options. Subject to applicable law, the Administrator, in its discretion, may delegate
to the Chief Executive Officer of the Company all or part of the Administrator’s authority and duties with respect to the
granting of Options to individuals who are (i) not subject to the reporting and other provisions of Section 16 of the
Exchange Act and (ii) not Covered Employees. Any such delegation by the Administrator shall include a limitation
as to the amount of Options that may be granted during the period of the delegation and shall contain guidelines as to the determination
of the exercise price and the vesting criteria. The Administrator may revoke or amend the terms of a delegation at any time but
such action shall not invalidate any prior actions of the Administrator’s delegate or delegates that were consistent with
the terms of the Plan.

 

(d)             
Award Certificate. Awards under the Plan shall be evidenced by Award Certificates that set forth the terms, conditions and
limitations for each Award which may include, without limitation, the term of an Award and the provisions applicable in the event
employment or service terminates.

 

(e)             
Indemnification.  Neither the Board nor the Administrator, nor any member of either or any delegate thereof, shall
be liable for any act, omission, interpretation, construction or determination made in good faith in connection with the Plan,
and the members of the Board and the Administrator (and any delegate thereof) shall be entitled in all cases to indemnification
and reimbursement by the Company in respect of any claim, loss, damage or expense (including, without limitation, reasonable attorneys’
fees) arising or resulting therefrom to the fullest extent permitted by law and/or under the Company’s articles or bylaws
or any directors’ and officers’ liability insurance coverage which may be in effect from time to time and/or any indemnification
agreement between such individual and the Company.

 

(f)              
Foreign Award Recipients. Notwithstanding any provision of the Plan to the contrary, in order to comply with the laws in
other countries in which the Company and its Subsidiaries operate or have employees or other individuals eligible for Awards, the
Administrator, in its sole discretion, shall have the power and authority to: (i) determine which Subsidiaries shall be covered
by the Plan; (ii) determine which individuals outside the United States are eligible to participate in the Plan; (iii) modify
the terms and conditions of any Award granted to individuals outside the United States to comply with applicable foreign laws;
(iv) establish subplans and modify exercise procedures and other terms and procedures, to the extent the Administrator determines
such actions to be necessary or advisable (and such subplans and/or modifications shall be attached to this Plan as appendices);
provided, however, that no such subplans and/or modifications shall increase the share limitations contained in Section 3(a)
hereof; and (v) take any action, before or after an Award is made, that the Administrator determines to be necessary or advisable
to obtain approval or comply with any local governmental regulatory exemptions or approvals.  Notwithstanding the foregoing,
the Administrator may not take any actions hereunder, and no Awards shall be granted, that would violate the Exchange Act or any
other applicable United States securities law, the Code, or any other applicable United States governing statute or law.

 

 

 

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		SECTION	3.          
STOCK ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION

 

(a)             
Stock Issuable. The maximum number of shares of Stock reserved and available for issuance under the Plan shall be 10,000,000
shares, subject to adjustment as provided in this Section 3. For purposes of this limitation, the shares of Stock underlying
any Awards that are forfeited, canceled, held back upon exercise of an Option or settlement of an Award to cover the exercise price
or tax withholding, reacquired by the Company prior to vesting, satisfied without the issuance of Stock or otherwise terminated
(other than by exercise) shall be added back to the shares of Stock available for issuance under the Plan. In the event the Company
repurchases shares of Stock on the open market, such shares shall not be added to the shares of Stock available for issuance under
the Plan. Subject to such overall limitations, shares of Stock may be issued up to such maximum number pursuant to any type or
types of Award; provided, however, that Stock Options or Stock Appreciation Rights with respect to no more than 10 percent of the
total number of shares of Stock authorized for issuance under the Plan may be granted in the form of Unrestricted Stock Awards
and no more than 1,500,000 shares of the Stock may be issued in the form of Incentive Stock Options. The shares available for issuance
under the Plan may be authorized but unissued shares of Stock or shares of Stock reacquired by the Company.

 

(b)             
Effect of Awards. The grant of any full value Award (i.e., an Award other than an Option or a Stock Appreciation Right)
shall be deemed, for purposes of determining the number of shares of Stock available for issuance under Section 3(a), as an
Award of two shares of Stock for each such share of Stock actually subject to the Award. The grant of an Option or a
Stock Appreciation Right shall be deemed, for purposes of determining the number of shares of Stock available for issuance under
Section 3(a), as an Award for one share of Stock for each such share of Stock actually subject to the Award. Any
forfeitures, cancellations or other terminations (other than by exercise) of such Awards shall be returned to the reserved pool
of shares of Stock under the Plan in the same manner.

 

(c)             
Changes in Stock. Subject to Section 3(d) hereof, if, as a result of any reorganization, recapitalization, reclassification,
stock dividend, stock split, reverse stock split or other similar change in the Company’s capital stock, the outstanding
shares of Stock are increased or decreased or are exchanged for a different number or kind of shares or other securities of the
Company, or additional shares or new or different shares or other securities of the Company or other non-cash assets are distributed
with respect to such shares of Stock or other securities, or, if, as a result of any merger or consolidation, sale of all or substantially
all of the assets of the Company, the outstanding shares of Stock are converted into or exchanged for securities of the Company
or any successor entity (or a parent or subsidiary thereof), the Administrator shall make an appropriate or proportionate adjustment
in (i) the maximum number of shares reserved for issuance under the Plan, including the maximum number of shares that may
be issued in the form of Incentive Stock Options, (ii) the number of Stock Options or Stock Appreciation Rights that can be
granted to any one individual grantee and the maximum number of shares that may be granted under a Performance-Based Award, (iii) the
number and kind of shares or other securities subject to any then outstanding Awards under the Plan, (iv) the repurchase price,
if any, per share subject to each outstanding Restricted Stock Award, and (v) the exercise price for each share subject to
any then outstanding Stock Options and Stock Appreciation Rights under the Plan, without changing the aggregate exercise price
(i.e., the exercise price multiplied by the number of Stock Options and Stock Appreciation Rights) as to which such Stock Options
and Stock Appreciation Rights remain exercisable. The Administrator shall also make equitable or proportionate adjustments
in the number of shares subject to outstanding Awards and the exercise price and the terms of outstanding Awards to take into consideration
cash dividends paid other than in the ordinary course or any other extraordinary corporate event. The adjustment by
the Administrator shall be final, binding and conclusive. No fractional shares of Stock shall be issued under the Plan
resulting from any such adjustment, but the Administrator in its discretion may make a cash payment in lieu of fractional shares.

 

 

 

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(d)             
Mergers and Other Transactions. Except as the Administrator may otherwise specify with respect to particular Awards in the
relevant Award Certificate, in the case of and subject to the consummation of a Sale Event, all Options and Stock Appreciation
Rights that are not exercisable immediately prior to the effective time of the Sale Event shall become fully exercisable as of
the effective time of the Sale Event, all other Awards with time-based vesting, conditions or restrictions shall become fully vested
and nonforfeitable as of the effective time of the Sale Event and all Awards with conditions and restrictions relating to the attainment
of performance goals may become vested and nonforfeitable in connection with a Sale Event in the Administrator’s discretion,
unless, in any case, the parties to the Sale Event agree that Awards will be assumed or continued by the successor entity. Upon
the effective time of the Sale Event, the Plan and all outstanding Awards granted hereunder shall terminate, unless provision is
made in connection with the Sale Event in the sole discretion of the parties thereto for the assumption or continuation of Awards
theretofore granted by the successor entity, or the substitution of such Awards with new Awards of the successor entity or parent
thereof, with appropriate adjustment as to the number and kind of shares and, if appropriate, the per share exercise prices, as
such parties shall agree (after taking into account any acceleration hereunder). In the event of such termination, (i) the
Company shall have the option (in its sole discretion) to make or provide for a cash payment to the grantees holding Options and
Stock Appreciation Rights, in exchange for the cancellation thereof, in an amount equal to the difference between (A) the
Sale Price multiplied by the number of shares of Stock subject to outstanding Options and Stock Appreciation Rights (to the extent
then exercisable (after taking into account any acceleration hereunder) at prices not in excess of the Sale Price) and (B) the
aggregate exercise price of all such outstanding Options and Stock Appreciation Rights; or (ii) each grantee shall be permitted,
within a specified period of time prior to the consummation of the Sale Event as determined by the Administrator, to exercise all
outstanding Options and Stock Appreciation Rights held by such grantee.

 

(e)             
Substitute Awards. The Administrator may grant Awards under the Plan in substitution for stock and stock based awards held
by employees, directors or other key persons of another corporation in connection with the merger or consolidation of the employing
corporation with the Company or a Subsidiary or the acquisition by the Company or a Subsidiary of property or stock of the employing
corporation. The Administrator may direct that the substitute awards be granted on such terms and conditions as the Administrator
considers appropriate in the circumstances. Any substitute Awards granted under the Plan shall not count against the share limitation
set forth in Section 3(a).

 

		SECTION	4.          
ELIGIBILITY

 

Grantees under the Plan will be such full or part-time officers
and other employees, Non-Employee Directors and key persons (including Consultants and prospective employees) of the Company and
its Subsidiaries as are selected from time to time by the Administrator in its sole discretion.

 

		SECTION	5.          
STOCK OPTIONS

 

Any Stock Option granted under the Plan shall be in such form
as the Administrator may from time to time approve.

 

Stock Options granted under the Plan may be either Incentive
Stock Options or Non-Qualified Stock Options. Incentive Stock Options may be granted only to employees of the Company or any Subsidiary
that is a “subsidiary corporation” within the meaning of Section 424(f) of the Code. To the extent that any Option
does not qualify as an Incentive Stock Option, it shall be deemed a Non-Qualified Stock Option.

 

Stock Options granted pursuant to this Section 5 shall
be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with
the terms of the Plan, as the Administrator shall deem desirable.  If the Administrator so determines, Stock Options
may be granted in lieu of cash compensation at the optionee’s election, subject to such terms and conditions as the Administrator
may establish.

 

(a)             
Exercise Price. The exercise price per share for the Stock covered by a Stock Option granted pursuant to this Section 5
shall be determined by the Administrator at the time of grant but shall not be less than 100 percent of the Fair Market Value on
the date of grant.  In the case of an Incentive Stock Option that is granted to a Ten Percent Owner, the option price
of such Incentive Stock Option shall be not less than 110 percent of the Fair Market Value on the grant date.

 

(b)             
Option Term. The term of each Stock Option shall be fixed by the Administrator, but no Stock Option shall be exercisable
more than ten years after the date the Stock Option is granted. In the case of an Incentive Stock Option that is granted to a Ten
Percent Owner, the term of such Stock Option shall be no more than five years from the date of grant.

 

 

 

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(c)             
Exercisability; Rights of a Stockholder. Stock Options shall become exercisable at such time or times, whether or not in
installments, as shall be determined by the Administrator at or after the grant date. The Administrator may at any time accelerate
the exercisability of all or any portion of any Stock Option. An optionee shall have the rights of a stockholder only as to shares
acquired upon the exercise of a Stock Option and not as to unexercised Stock Options.

 

(d)             
Method of Exercise. Stock Options may be exercised in whole or in part, by giving written or electronic notice of exercise
to the Company, specifying the number of shares to be purchased. Payment of the purchase price may be made by one or more of the
following methods to the extent provided in the Option Award Certificate:

 

(i)              
In cash, by certified or bank check or other instrument acceptable to the Administrator;

 

(ii)             
Through the delivery (or attestation to the ownership) of shares of Stock that have been purchased by the optionee on the
open market or that have been beneficially owned by the optionee for at least six months and that are not then subject to restrictions
under any Company plan. Such surrendered shares shall be valued at Fair Market Value on the exercise date;

 

(iii)           
By the optionee delivering to the Company a properly executed exercise notice together with irrevocable instructions to
a broker to promptly deliver to the Company cash or a check payable and acceptable to the Company for the purchase price; provided
that in the event the optionee chooses to pay the purchase price as so provided, the optionee and the broker shall comply with
such procedures and enter into such agreements of indemnity and other agreements as the Administrator shall prescribe as a condition
of such payment procedure; or

 

(iv)           
With respect to Stock Options that are not Incentive Stock Options, by a “net exercise” arrangement pursuant
to which the Company will reduce the number of shares of Stock issuable upon exercise by the largest whole number of shares with
a Fair Market Value that does not exceed the aggregate exercise price.

 

Payment instruments will be received subject to
collection. The transfer to the optionee on the records of the Company or of the transfer agent of the shares of Stock to be
purchased pursuant to the exercise of a Stock Option will be contingent upon receipt from the optionee (or a purchaser acting
in his stead in accordance with the provisions of the Stock Option) by the Company of the full purchase price for such shares
and the fulfillment of any other requirements contained in the Option Award Certificate or applicable provisions of laws
(including the satisfaction of any withholding taxes that the Company is obligated to withhold with respect to the optionee).
In the event an optionee chooses to pay the purchase price by previously-owned shares of Stock through the attestation
method, the number of shares of Stock transferred to the optionee upon the exercise of the Stock Option shall be net of the
number of attested shares. In the event that the Company establishes, for itself or using the services of a third party, an
automated system for the exercise of Stock Options, such as a system using an internet website or interactive voice response,
then the paperless exercise of Stock Options may be permitted through the use of such an automated system.

 

(e)             
Annual Limit on Incentive Stock Options. To the extent required for “incentive stock option” treatment under
Section 422 of the Code, the aggregate Fair Market Value (determined as of the time of grant) of the shares of Stock with
respect to which Incentive Stock Options granted under this Plan and any other plan of the Company or its parent and subsidiary
corporations become exercisable for the first time by an optionee during any calendar year shall not exceed $100,000. To the extent
that any Stock Option exceeds this limit, it shall constitute a Non-Qualified Stock Option.

 

 

 

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		SECTION	6.          
STOCK APPRECIATION RIGHTS

 

(a)             
Exercise Price of Stock Appreciation Rights. The exercise price of a Stock Appreciation Right shall not be less than 100
percent of the Fair Market Value of the Stock on the date of grant.

 

(b)             
Grant and Exercise of Stock Appreciation Rights. Stock Appreciation Rights may be granted by the Administrator independently
of any Stock Option granted pursuant to Section 5 of the Plan.

 

(c)             
Terms and Conditions of Stock Appreciation Rights. Stock Appreciation Rights shall be subject to such terms and conditions
as shall be determined from time to time by the Administrator. The term of a Stock Appreciation Right may not exceed ten years.

 

		SECTION	7.          
RESTRICTED STOCK AWARDS

 

(a)             
Nature of Restricted Stock Awards. The Administrator shall determine the restrictions and conditions applicable to each
Restricted Stock Award at the time of grant. Conditions may be based on continuing employment (or other service relationship) and/or
achievement of pre-established performance goals and objectives. The terms and conditions of each such Award Certificate shall
be determined by the Administrator, and such terms and conditions may differ among individual Awards and grantees.

 

(b)             
Rights as a Stockholder. Upon the grant of the Restricted Stock Award and payment of any applicable purchase price, a grantee
shall have the rights of a stockholder with respect to the voting of the Restricted Stock, subject to such conditions contained
in the Restricted Stock Award Certificate. Unless the Administrator shall otherwise determine, (i) uncertificated Restricted
Stock shall be accompanied by a notation on the records of the Company or the transfer agent to the effect that they are subject
to forfeiture until such Restricted Stock are vested as provided in Section 7(d) below, and (ii) certificated Restricted
Stock shall remain in the possession of the Company until such Restricted Stock is vested as provided in Section 7(d) below,
and the grantee shall be required, as a condition of the grant, to deliver to the Company such instruments of transfer as the Administrator
may prescribe.

 

(c)             
Restrictions. Restricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except
as specifically provided herein or in the Restricted Stock Award Certificate. Except as may otherwise be provided by
the Administrator either in the Award Certificate or, subject to Section 18 below, in writing after the Award is issued, if a grantee’s
employment (or other service relationship) with the Company and its Subsidiaries terminates for any reason, any Restricted Stock
that has not vested at the time of termination shall automatically and without any requirement of notice to such grantee from or
other action by or on behalf of, the Company be deemed to have been reacquired by the Company at its original purchase price (if
any) from such grantee or such grantee’s legal representative simultaneously with such termination of employment (or other
service relationship), and thereafter shall cease to represent any ownership of the Company by the grantee or rights of the grantee
as a stockholder. Following such deemed reacquisition of unvested Restricted Stock that are represented by physical certificates,
a grantee shall surrender such certificates to the Company upon request without consideration.

 

(d)             
Vesting of Restricted Stock. The Administrator at the time of grant shall specify the date or dates and/or the attainment
of pre-established performance goals, objectives and other conditions on which the non-transferability of the Restricted Stock
and the Company’s right of repurchase or forfeiture shall lapse. Notwithstanding the foregoing, in the event that any such
Restricted Stock granted to employees shall have a performance-based goal, the restriction period with respect to such shares shall
not be less than one year, and in the event any such Restricted Stock granted to employees shall have a time-based restriction,
the total restriction period with respect to such shares shall not be less than three years; provided, however, that Restricted
Stock with a time-based restriction may become vested incrementally over such three-year period. Subsequent to such date or dates
and/or the attainment of such pre-established performance goals, objectives and other conditions, the shares on which all restrictions
have lapsed shall no longer be Restricted Stock and shall be deemed “vested.” Except as may otherwise be provided by
the Administrator either in the Award Certificate or, subject to Section 18 below, in writing after the Award is issued, a
grantee’s rights in any shares of Restricted Stock that have not vested shall automatically terminate upon the grantee’s
termination of employment (or other service relationship) with the Company and its Subsidiaries and such shares shall be subject
to the provisions of Section 7(c) above.

 

 

 

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		SECTION	8.          
RESTRICTED STOCK UNITS

 

(a)             
Nature of Restricted Stock Units. The Administrator shall determine the restrictions and conditions applicable to each Restricted
Stock Unit at the time of grant Conditions may be based on continuing employment (or other service relationship) and/or achievement
of pre-established performance goals and objectives. The terms and conditions of each such Award Certificate shall be determined
by the Administrator, and such terms and conditions may differ among individual Awards and grantees. Notwithstanding the foregoing,
in the event that any such Restricted Stock Units granted to employees shall have a performance-based goal, the restriction period
with respect to such Award shall not be less than one year, and in the event any such Restricted Stock Units granted to employees
shall have a time-based restriction, the total restriction period with respect to such Award shall not be less than three years;
provided, however, that any Restricted Stock Units with a time-based restriction may become vested incrementally over such three-year
period. At the end of the deferral period, the Restricted Stock Units, to the extent vested, shall be settled in the form of shares
of Stock. To the extent that an award of Restricted Stock Units is subject to Section 409A, it may contain such additional
terms and conditions as the Administrator shall determine in its sole discretion in order for such Award to comply with the requirements
of Section 409A.

 

(b)             
Election to Receive Restricted Stock Units in Lieu of Compensation. The Administrator may, in its sole discretion, permit
a grantee to elect to receive a portion of future cash compensation otherwise due to such grantee in the form of an award of Restricted
Stock Units.  Any such election shall be made in writing and shall be delivered to the Company no later than the date
specified by the Administrator and in accordance with Section 409A and such other rules and procedures established by the
Administrator. Any such future cash compensation that the grantee elects to defer shall be converted to a fixed number of Restricted
Stock Units based on the Fair Market Value of Stock on the date the compensation would otherwise have been paid to the grantee
if such payment had not been deferred as provided herein. The Administrator shall have the sole right to determine whether and
under what circumstances to permit such elections and to impose such limitations and other terms and conditions thereon as the
Administrator deems appropriate. Any Restricted Stock Units that are elected to be received in lieu of cash compensation shall
be fully vested, unless otherwise provided in the Award Certificate.

 

(c)             
Rights as a Stockholder. A grantee shall have the rights as a stockholder only as to shares of Stock acquired by the grantee
upon settlement of Restricted Stock Units; provided, however, that the grantee may be credited with Dividend Equivalent Rights
with respect to the phantom stock units underlying his Restricted Stock Units, subject to such terms and conditions as the Administrator
may determine.

 

(d)             
Termination. Except as may otherwise be provided by the Administrator either in the Award Certificate or, subject to Section 18
below, in writing after the Award is issued, a grantee’s right in all Restricted Stock Units that have not vested shall automatically
terminate upon the grantee’s termination of employment (or cessation of service relationship) with the Company and its Subsidiaries
for any reason.

 

		SECTION	9.          
UNRESTRICTED STOCK AWARDS

 

Grant or Sale of Unrestricted Stock. The Administrator may,
in its sole discretion, grant (or sell at par value or such higher purchase price determined by the Administrator) an Unrestricted
Stock Award under the Plan. Unrestricted Stock Awards may be granted in respect of past services or other valid consideration,
or in lieu of cash compensation due to such grantee.

 

		SECTION	10.        
CASH-BASED AWARDS

 

Grant of Cash-Based Awards. The Administrator may, in its sole
discretion, grant Cash-Based Awards to any grantee in such number or amount and upon such terms, and subject to such conditions,
as the Administrator shall determine at the time of grant. The Administrator shall determine the maximum duration of the Cash-Based
Award, the amount of cash to which the Cash-Based Award pertains, the conditions upon which the Cash-Based Award shall become vested
or payable, and such other provisions as the Administrator shall determine. Each Cash-Based Award shall specify a cash-denominated
payment amount, formula or payment ranges as determined by the Administrator. Payment, if any, with respect to a Cash-Based Award
shall be made in accordance with the terms of the Award and may be made in cash or in shares of Stock, as the Administrator determines.

 

 

 

    	 	9	 

     

    

 

		SECTION	11.        
PERFORMANCE SHARE AWARDS

 

(a)             
Nature of Performance Share Awards. The Administrator may, in its sole discretion, grant Performance Share Awards independent
of, or in connection with, the granting of any other Award under the Plan. The Administrator shall determine whether and to whom
Performance Share Awards shall be granted, the Performance Goals, the periods during which performance is to be measured, which
may not be less than one year, and such other limitations and conditions as the Administrator shall determine.

 

(b)             
Rights as a Stockholder. A grantee receiving a Performance Share Award shall have the rights of a stockholder only as to
shares actually received by the grantee under the Plan and not with respect to shares subject to the Award but not actually received
by the grantee. A grantee shall be entitled to receive shares of Stock under a Performance Share Award only upon satisfaction of
all conditions specified in the Performance Share Award Certificate (or in a performance plan adopted by the Administrator).

 

(c)             
Termination. Except as may otherwise be provided by the Administrator either in the Award agreement or, subject to Section 18
below, in writing after the Award is issued, a grantee’s rights in all Performance Share Awards shall automatically terminate
upon the grantee’s termination of employment (or cessation of service relationship) with the Company and its Subsidiaries
for any reason.  

 

		SECTION	12.        
PERFORMANCE-BASED AWARDS TO COVERED EMPLOYEES

 

(a)             
Performance-Based Awards. Any employee or other key person providing services to the Company and who is selected by the
Administrator may be granted one or more Performance-Based Awards in the form of a Restricted Stock Award, Restricted Stock Units,
Performance Share Awards or Cash-Based Award payable upon the attainment of Performance Goals that are established by the Administrator
and relate to one or more of the Performance Criteria, in each case on a specified date or dates or over any period or periods
determined by the Administrator. The Administrator shall define in an objective fashion the manner of calculating the Performance
Criteria it selects to use for any Performance Cycle. Depending on the Performance Criteria used to establish such Performance
Goals, the Performance Goals may be expressed in terms of overall Company performance or the performance of a division, business
unit, or an individual. The Administrator, in its discretion, may adjust or modify the calculation of Performance Goals
for such Performance Cycle in order to prevent the dilution or enlargement of the rights of an individual (i) in the event
of, or in anticipation of, any unusual or extraordinary corporate item, transaction, event or development, (ii) in recognition
of, or in anticipation of, any other unusual or nonrecurring events affecting the Company, or the financial statements of the Company,
or (iii) in response to, or in anticipation of, changes in applicable laws, regulations, accounting principles, or business
conditions provided however, that the Administrator may not exercise such discretion in a manner that would increase the Performance-Based
Award granted to a Covered Employee. Each Performance-Based Award shall comply with the provisions set forth below.

 

(b)             
Grant of Performance-Based Awards. With respect to each Performance-Based Award granted to a Covered Employee, the Administrator
shall select, within the first 90 days of a Performance Cycle (or, if shorter, within the maximum period allowed under Section 162(m)
of the Code) the Performance Criteria for such grant, and the Performance Goals with respect to each Performance Criterion (including
a threshold level of performance below which no amount will become payable with respect to such Award). Each Performance-Based
Award will specify the amount payable, or the formula for determining the amount payable, upon achievement of the various applicable
performance targets. The Performance Criteria established by the Administrator may be (but need not be) different for each Performance
Cycle and different Performance Goals may be applicable to Performance-Based Awards to different Covered Employees.

 

 

 

    	 	10	 

     

    

 

(c)             
Payment of Performance-Based Awards. Following the completion of a Performance Cycle, the Administrator shall meet to review
and certify in writing whether, and to what extent, the Performance Goals for the Performance Cycle have been achieved and, if
so, to also calculate and certify in writing the amount of the Performance-Based Awards earned for the Performance Cycle. The Administrator
shall then determine the actual size of each Covered Employee’s Performance-Based Award, and, in doing so, may reduce or
eliminate the amount of the Performance-Based Award for a Covered Employee if, in its sole judgment, such reduction or elimination
is appropriate.

 

(d)             
Maximum Award Payable. The maximum Performance-Based Award payable to any one Covered Employee under the Plan for a Performance
Cycle is 300,000 shares of Stock (subject to adjustment as provided in Section 3(c) hereof) or $25,000 in the case of a Performance-Based
Award that is a Cash-Based Award.

 

		SECTION	13.        
DIVIDEND EQUIVALENT RIGHTS

 

(a)             
Dividend Equivalent Rights. A Dividend Equivalent Right may be granted hereunder to any grantee as a component of an award
of Restricted Stock Units, Restricted Stock Award or Performance Share Award or as a freestanding award. The terms and conditions
of Dividend Equivalent Rights shall be specified in the Award Certificate. Dividend equivalents credited to the holder of a Dividend
Equivalent Right may be paid currently or may be deemed to be reinvested in additional shares of Stock, which may thereafter accrue
additional equivalents. Any such reinvestment shall be at Fair Market Value on the date of reinvestment or such other price as
may then apply under a dividend reinvestment plan sponsored by the Company, if any. Dividend Equivalent Rights may be settled in
cash or shares of Stock or a combination thereof, in a single installment or installments. A Dividend Equivalent Right granted
as a component of an award of Restricted Stock Units, Restricted Stock Award or Performance Share Award may provide that such Dividend
Equivalent Right shall be settled upon settlement or payment of, or lapse of restrictions on, such other Award, and that such Dividend
Equivalent Right shall expire or be forfeited or annulled under the same conditions as such other Award. A Dividend Equivalent
Right granted as a component of a Restricted Stock Units, Restricted Stock Award or Performance Share Award may also contain terms
and conditions different from such other Award.

 

(b)             
Interest Equivalents. Any Award under this Plan that is settled in whole or in part in cash on a deferred basis may provide
in the grant for interest equivalents to be credited with respect to such cash payment. Interest equivalents may be compounded
and shall be paid upon such terms and conditions as may be specified by the grant.

 

(c)             
Termination. Except as may otherwise be provided by the Administrator either in the Award Certificate or, subject to Section 18
below, in writing after the Award is issued, a grantee’s rights in all Dividend Equivalent Rights or interest equivalents
granted as a component of an award of Restricted Stock Units, Restricted Stock Award or Performance Share Award that has not vested
shall automatically terminate upon the grantee’s termination of employment (or cessation of service relationship) with the
Company and its Subsidiaries for any reason.

 

		SECTION	14.        
TRANSFERABILITY OF AWARDS

 

(a)             
Transferability. Except as provided in Section 14(b) below, during a grantee’s lifetime, his or her Awards shall
be exercisable only by the grantee, or by the grantee’s legal representative or guardian in the event of the grantee’s
incapacity. No Awards shall be sold, assigned, transferred or otherwise encumbered or disposed of by a grantee other than by will
or by the laws of descent and distribution or pursuant to a domestic relations order. No Awards shall be subject, in whole or in
part, to attachment, execution, or levy of any kind, and any purported transfer in violation hereof shall be null and void.

 

 

 

    	 	11	 

     

    

 

(b)             
Administrator Action. Notwithstanding Section 14(a), the Administrator, in its discretion, may provide either in the
Award Certificate regarding a given Award or by subsequent written approval that the grantee (who is an employee or director) may
transfer his or her Awards (other than any Incentive Stock Options or Restricted Stock Units) to his or her immediate family members,
to trusts for the benefit of such family members, or to partnerships in which such family members are the only partners, provided
that the transferee agrees in writing with the Company to be bound by all of the terms and conditions of this Plan and the applicable
Award. In no event may an Award be transferred by a grantee for value.

 

(c)             
Family Member. For purposes of Section 14(b), “family member” shall mean a grantee’s child,
stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person sharing the grantee’s
household (other than a tenant of the grantee), a trust in which these persons (or the grantee) have more than 50 percent of the
beneficial interest, a foundation in which these persons (or the grantee) control the management of assets, and any other entity
in which these persons (or the grantee) own more than 50 percent of the voting interests.

 

(d)             
Designation of Beneficiary. Each grantee to whom an Award has been made under the Plan may designate a beneficiary or beneficiaries
to exercise any Award or receive any payment under any Award payable on or after the grantee’s death. Any such designation
shall be on a form provided for that purpose by the Administrator and shall not be effective until received by the Administrator.
If no beneficiary has been designated by a deceased grantee, or if the designated beneficiaries have predeceased the grantee, the
beneficiary shall be the grantee’s estate.

 

		SECTION	15.        
TAX WITHHOLDING

 

(a)             
Payment by Grantee. Each grantee shall, no later than the date as of which the value of an Award or of any Stock or other
amounts received thereunder first becomes includable in the gross income of the grantee for Federal income tax purposes, pay to
the Company, or make arrangements satisfactory to the Administrator regarding payment of, any Federal, state, or local taxes of
any kind required by law to be withheld by the Company with respect to such income. The Company and its Subsidiaries shall, to
the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the grantee.
The Company’s obligation to deliver evidence of book entry (or stock certificates) to any grantee is subject to and conditioned
on tax withholding obligations being satisfied by the grantee.

 

(b)             
Payment in Stock. Subject to approval by the Administrator, a grantee may elect to have the Company’s minimum required
tax withholding obligation satisfied, in whole or in part, by authorizing the Company to withhold from shares of Stock to be issued
pursuant to any Award a number of shares with an aggregate Fair Market Value (as of the date the withholding is effected) that
would satisfy the withholding amount due.

 

		SECTION	16.        
SECTION 409A AWARDS

 

To the extent that any Award is determined to constitute “nonqualified
deferred compensation” within the meaning of Section 409A (a “409A Award”), the Award shall be subject to
such additional rules and requirements as specified by the Administrator from time to time in order to comply with Section 409A.
In this regard, if any amount under a 409A Award is payable upon a “separation from service” (within the meaning of
Section 409A) to a grantee who is then considered a “specified employee” (within the meaning of Section 409A),
then no such payment shall be made prior to the date that is the earlier of (i) six months and one day after the grantee’s
separation from service, or (ii) the grantee’s death, but only to the extent such delay is necessary to prevent such
payment from being subject to interest, penalties and/or additional tax imposed pursuant to Section 409A. Further, the settlement
of any such Award may not be accelerated except to the extent permitted by Section 409A.

 

 

 

    	 	12	 

     

    

 

		SECTION	17.        
TRANSFER, LEAVE OF ABSENCE, ETC.

 

For purposes of the Plan, the following events shall not be
deemed a termination of employment:

 

(a)             
a transfer to the employment of the Company from a Subsidiary or from the Company to a Subsidiary, or from one Subsidiary
to another; or

 

(b)             
an approved leave of absence for military service or sickness, or for any other purpose approved by the Company, if the
employee’s right to re-employment is guaranteed either by a statute or by contract or under the policy pursuant to which
the leave of absence was granted or if the Administrator otherwise so provides in writing.

 

		SECTION	18.        
AMENDMENTS AND TERMINATION

 

The Board may, at any time, amend or discontinue the Plan and
the Administrator may, at any time, amend or cancel any outstanding Award for the purpose of satisfying changes in law or for any
other lawful purpose, but no such action shall adversely affect rights under any outstanding Award without the holder’s consent.
Except as provided in Section 3(c) or 3(d), without prior stockholder approval, in no event may the Administrator exercise
its discretion to reduce the exercise price of outstanding Stock Options or Stock Appreciation Rights or effect repricing through
cancellation and re-grants or cancellation of Stock Options or Stock Appreciation Rights in exchange for cash. To the extent required
under the rules of any securities exchange or market system on which the Stock is listed, to the extent determined by the Administrator
to be required by the Code to ensure that Incentive Stock Options granted under the Plan are qualified under Section 422 of
the Code, or to ensure that compensation earned under Awards qualifies as performance-based compensation under Section 162(m)
of the Code, Plan amendments shall be subject to approval by the Company stockholders entitled to vote at a meeting of stockholders.
Nothing in this Section 18 shall limit the Administrator’s authority to take any action permitted pursuant to Section 3(c)
or 3(d).

 

		SECTION	19.        
STATUS OF PLAN

 

With respect to the portion of any Award
that has not been exercised and any payments in cash, Stock or other consideration not received by a grantee, a grantee shall have
no rights greater than those of a general creditor of the Company unless the Administrator shall otherwise expressly determine
in connection with any Award or Awards. In its sole discretion, the Administrator may authorize the creation of trusts or other
arrangements to meet the Company’s obligations to deliver Stock or make payments with respect to Awards hereunder, provided
that the existence of such trusts or other arrangements is consistent with the foregoing sentence.

 

		SECTION	20.        
GENERAL PROVISIONS

 

(a)             
No Distribution. The Administrator may require each person acquiring Stock pursuant to an Award to represent to and agree
with the Company in writing that such person is acquiring the shares without a view to distribution thereof.

 

(b)             
Delivery of Stock Certificates. Stock certificates to grantees under this Plan shall be deemed delivered for all purposes
when the Company or a stock transfer agent of the Company shall have mailed such certificates in the United States mail, addressed
to the grantee, at the grantee’s last known address on file with the Company. Uncertificated Stock shall be deemed delivered
for all purposes when the Company or a Stock transfer agent of the Company shall have given to the grantee by electronic mail (with
proof of receipt) or by United States mail, addressed to the grantee, at the grantee’s last known address on file with the
Company, notice of issuance and recorded the issuance in its records (which may include electronic “book entry” records).
Notwithstanding anything herein to the contrary, the Company shall not be required to issue or deliver any certificates evidencing
shares of Stock pursuant to the exercise of any Award, unless and until the Administrator has determined, with advice of counsel
(to the extent the Administrator deems such advice necessary or advisable), that the issuance and delivery of such certificates
is in compliance with all applicable laws, regulations of governmental authorities and, if applicable, the requirements of any
exchange on which the shares of Stock are listed, quoted or traded. All Stock certificates delivered pursuant to the Plan shall
be subject to any stop-transfer orders and other restrictions as the Administrator deems necessary or advisable to comply with
federal, state or foreign jurisdiction, securities or other laws, rules and quotation system on which the Stock is listed, quoted
or traded. The Administrator may place legends on any Stock certificate to reference restrictions applicable to the Stock. In addition
to the terms and conditions provided herein, the Administrator may require that an individual make such reasonable covenants, agreements,
and representations as the Administrator, in its discretion, deems necessary or advisable in order to comply with any such laws,
regulations, or requirements. The Administrator shall have the right to require any individual to comply with any timing or other
restrictions with respect to the settlement or exercise of any Award, including a window-period limitation, as may be imposed in
the discretion of the Administrator.

 

 

 

    	 	13	 

     

    

 

(c)             
Stockholder Rights. Until Stock is deemed delivered in accordance with Section 20(b), no right to vote or receive dividends
or any other rights of a stockholder will exist with respect to shares of Stock to be issued in connection with an Award, notwithstanding
the exercise of a Stock Option or any other action by the grantee with respect to an Award.

 

(d)             
Other Compensation Arrangements; No Employment Rights. Nothing contained in this Plan shall prevent the Board from adopting
other or additional compensation arrangements, including trusts, and such arrangements may be either generally applicable or applicable
only in specific cases. The adoption of this Plan and the grant of Awards do not confer upon any employee any right to continued
employment with the Company or any Subsidiary.

 

(e)             
Trading Policy Restrictions. Option exercises and other Awards under the Plan shall be subject to the Company’s insider
trading policies and procedures, as in effect from time to time.

 

(f)              
Forfeiture of Awards under Sarbanes-Oxley Act. If the Company is required to prepare an accounting restatement due to the
material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities
laws, then any grantee who is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley
Act of 2002 shall reimburse the Company for the amount of any Award received by such individual under the Plan during the 12-month
period following the first public issuance or filing with the United States Securities and Exchange Commission, as the case may
be, of the financial document embodying such financial reporting requirement.

 

		SECTION	21.        
EFFECTIVE DATE OF PLAN

 

This Plan shall become effective upon stockholder approval in
accordance with applicable state law, the Company’s bylaws and articles of incorporation, and applicable stock exchange rules.
No grants of Stock Options and other Awards may be made hereunder after the tenth anniversary of the Effective Date and no grants
of Incentive Stock Options may be made hereunder after the tenth anniversary of the date the Plan is approved by the Board.

 

		SECTION	22.        
GOVERNING LAW

 

This Plan and all Awards and actions taken thereunder shall
be governed by, and construed in accordance with, the laws of the State of Utah, applied without regard to conflict of law principles.

 

 

 

 

DATE APPROVED BY BOARD OF DIRECTORS: September 23, 2010

 

DATE APPROVED BY STOCKHOLDERS: November 17, 2010

 

 

 

    	 	1410.1 Debt Amendment

		

			Exhibit 10.1

		

		

			 

		

		

			EXECUTION VERSION

		

		
			﻿
		

		
			AMENDMENT #3 TO CREDIT AGREEMENT AND AMENDMENT TO WARRANT CERTIFICATES
		

		
			﻿
		

		
			This AMENDMENT #3 TO CREDIT AGREEMENT AND AMENDMENT TO WARRANT CERTIFICATES, dated as of March 31, 2017 (this “Third Amendment”), is made among KADMON PHARMACEUTICALS, LLC, a Pennsylvania limited liability company,  (the “Borrower”), certain Affiliates of the Borrower listed on the signature pages hereof under the heading “GUARANTORS” (each a “Guarantor” and, collectively, the “Guarantors”), and the lenders listed on the signature pages hereof under the heading “LENDERS” (each a “Lender” and, collectively, the “Lenders”), with respect to the Credit Agreement referred to below.  
		

		
			RECITALS
		

		
			WHEREAS, the Borrower, the Guarantors and the Lenders are parties to a Credit Agreement, dated as of August 28, 2015 (as subsequently amended or otherwise modified, including pursuant to this Third Amendment, the “Credit Agreement”);
		

		
			﻿
		

		
			WHEREAS, in connection with the making of the loans under the Credit Agreement, the Borrower executed and issued Warrant Certificates (as defined in the Credit Agreement) to the Lenders, which Warrant Certificates were originally issued on August 28, 2015 and, in connection with the amendment and restatement thereof, were reissued on December 21, 2016;
		

		
			﻿
		

		
			WHEREAS, on the terms and subject to the conditions set forth herein, the parties hereto desire to amend the Existing Credit Agreement (defined below) as set forth herein; and
		

		
			﻿
		

		
			WHEREAS, on the terms and subject to the conditions set forth herein, the parties also desire to amend the Existing Warrant Certificates (defined below) as set forth herein.
		

		
			﻿
		

		
			NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained herein, the parties hereto agree as follows:
		

		
			﻿
		

			
	
			
				 SECTION 1.
			Definitions; Interpretation.

			
	
			
				 (a)
			Terms Defined and/or Used in Credit Agreement.   All capitalized terms used in this Third Amendment (including in the preamble and recitals hereof) and not otherwise defined herein shall have the meanings assigned to them in the Credit Agreement.

			
	
			
				 (b)
			Terms Defined in This Third Amendment.  The following terms when used in this Third Amendment shall have the following meanings (such meanings to be equally applicable to the singular and plural forms thereof):

		
			“Borrower” is defined in the preamble.
		

		

		

		 

 

		“Credit Agreement” is defined in the first recital.
		

		
			“Existing Credit Agreement” means the Credit Agreement as in effect immediately prior to the Third Amendment Effective Date.
		

		
			“Existing Warrant Certificate” means any Warrant Certificate as in effect immediately prior to the Third Amendment Effective Date.
		

		
			“Guarantor” is defined in the preamble.
		

		
			“Third Amendment” is defined in the preamble.
		

		
			“Third Amendment Effective Date” is defined in Section 4.
		

			
	
			
				 (c)
			Interpretation.  The rules of interpretation set forth in Section 1.02,  1.03 and 1.04 of the Credit Agreement shall be applicable to this Third Amendment and are incorporated herein by this reference.

			
	
			
				 SECTION 2.
			Amendments to Existing Credit Agreement.    Effective as of (and subject to the occurrence of) the Third Amendment Effective Date, the Existing Credit Agreement is hereby amended as follows:

			
	
			
				 (a)
			Section 1.01 of the Existing Credit Agreement is hereby amended by adding the following defined terms in their alphabetically appropriate places

		
			“Excluded Asset Sale” means any Asset Sale permitted pursuant to (i) clauses (a) through (h) of Section 9.09, and (ii) to the extent (but only to the extent) (x) such Asset Sale is consummated during the period from the Third Amendment Effective Date to December 31, 2017 and (y) is permitted pursuant to the proviso to Section 3.03(b)(i),  clause (j) of Section 9.09.
		

		
			“Third Amendment” means Amendment #3 to the Credit Agreement, dated as of March 31, 2017, made among the Borrower, the Guarantors parties thereto and the Lenders parties thereto.
		

		
			﻿
		

		
			“Third Amendment Effective Date” means March 31, 2017, the date the parties hereto mutually agree that the Third Amendment became effective 
		

			
	
			
				 (b)
			Section 1.01 of the Existing Credit Agreement is hereby further amended by amending and restating in its entirety the definition of “Warrant Certificate” set forth therein to read as follows:

		
			“Warrant Certificate” means each warrant certificate, substantially in the form of Exhibit I, executed and delivered by Holdings in favor of a Lender pursuant to Section 6.01(g)(iv), as any such certificate may be subsequently amended, replaced, substituted or otherwise modified.
		

		 

		

			2

		

 

			
	
			
				 (c)
			Section 3.01(a) of the Existing Credit Agreement is hereby amended in its entirety and to read as follows:

		
			“Repayment.  Until the Payment Date occurring on January 31, 2018, no payments of principal of the Loans shall be due.  Commencing with such Payment Date and on each Payment Date occurring thereafter, the Borrower shall repay the outstanding principal of the Loans at par in an amount equal to $380,000, by paying to each Lender its Proportionate Share of such amount on such Payment Date.  To the extent not previously paid, the outstanding principal amount of the Loans, together with all other outstanding Obligations, shall be due and payable on the Maturity Date.”
		

		
			﻿
		

			
	
			
				 (d)
			Section 3.03(b)(i) of the Existing Credit Agreement hereby amended in its entirety to read as follows:

		
			“Asset Sales. In the event of any contemplated Asset Sale or series of Asset Sales yielding Net Proceeds which, when aggregated with the Net Proceeds of all other Asset Sales (other than any Excluded Asset Sale) made after the date hereof, exceed $5,000,000, Borrower shall make a mandatory prepayment in respect of the Loans as follows: (x) if the assets sold represent substantially all of the assets or revenues of Borrower, or represent the sale of all or substantially all of the assets or revenues of any specific line of business which either on its own or together with other lines of business sold over the term of this Agreement account for revenue generated by such lines of business exceeding 20% of the revenue of Borrower in the immediately preceding year, Borrower shall make a mandatory prepayment of the Loans in an amount equal to the Redemption Price for all Loans applicable on the date of such Asset Sale; (y) in the case of any Asset Sale permitted under Section 9.09(i), Borrower shall make a mandatory prepayment of the Loans in an amount equal to 50% of the Net Proceeds of such Asset Sale, which amount shall be applied to the Redemption Price applicable on the date of such Asset Sale; and (z) in the case of all other Asset Sales not described in the foregoing clauses (x) and (y), Borrower shall make a mandatory prepayment of the Loans in an amount equal to the entire amount of the Net Proceeds of such Asset Sale, which amount shall be applied to the Redemption Price applicable on the date of such Asset Sale, credited (in all cases described in clauses (x), (y) and (z) above) in the order set forth in Section 3.03(b)(v).
		

			
	
			
				 (e)
			Section 9.09(j) of the Existing Credit Agreement is hereby amended in its entirety to read as follows:

		
			“Asset Sales that (x) are not otherwise described in this Section 9.09 and (y) are in respect of assets or properties that, (1) if sold or otherwise disposed of during the period from the Third Amendment Effective Date to December 31, 2017 have a fair market value that does not exceed $17,000,000 in the aggregate for all properties and assets sold or otherwise disposed of during such period, and (2) if sold or otherwise disposed of at any other time have a fair market value that does not exceed $7,500,000 in the aggregate for all assets or properties sold or 
		

		 

		

			3

		

 

		disposed of since the Closing Date (exclusive of assets or properties sold or otherwise disposed of during the period described in clause (y)(1) above).”
		

			
	
			
				 (f)
			Section 10.03 of the Existing Credit Agreement is hereby amended in its entirety to read as follows:

		
			“Future Capital Raising.  During the period commencing with the Third Amendment Effective Date and ending on December 31, 2017, Holdings shall have received an aggregate amount not less than $17,000,000 from: (a) gross cash proceeds resulting from one or more sales, offerings or issuances of its Qualified Equity Interests; (b) gross cash proceeds resulting from non-dilutive funding from, or arising out of, one or more strategic transactions (e.g., licensing deal, business development transaction etc.) entered into after the Third Amendment Effective Date (but on or prior to December 31, 2017) and approved by the Board of Directors of Holdings; or (c) cash Net Proceeds from one or more Asset Sales permitted pursuant to Section 9.09(j).”
		

		
			﻿
		

			
	
			
				 SECTION 3.
			Amendments to Existing Warrant Certificates.  Effective as of (and subject to the occurrence of) the Third Amendment Effective Date, each outstanding Existing Warrant Certificate is hereby amended as follows:  

			
	
			
				 (a)
			Section 1 of each Existing Warrant Certificate is hereby amended by amending and restating the definitions of “Exercise Price” and “Rule 144” in their respective entireties to read as follows:

		
			﻿
		

		
			“Exercise Price” means, subject to adjustment pursuant to Sections 4(a) and 4(b)(i)(2), a price per Warrant Share equal to $4.50.
		

		
			“Rule 144” means Rule 144 under the Securities Act, as amended.
		

			
	
			
				 (b)
			Section  1 of each Existing Warrant Certificate is hereby further amended by deleting the defined term “Cashless Exercise”. 

		
			﻿
		

			
	
			
				 (c)
			Section 3(b) of each Existing Warrant Certificate is hereby amended and restated in its entirety to read as follows:

		
			﻿
		

		
			“(b)        Payment of the Aggregate Exercise Price.   When due and payable hereunder, the Holder shall pay the Aggregate Exercise Price to the Company by delivery of a certified or official bank check payable to the order of the Company or by wire transfer of immediately available funds to an account designated in writing by the Company.”
		

			
	
			
				 (d)
			Section 14 of each Existing Warrant Certificate is hereby amended by amending and restating the first paragraph of such Section in its entirety to read as follows:

		
			﻿
		

		
			“Upon the occurrence and during the continuance of any Event of Default, at the option of the Holder exercised by way of delivery of written notice to the Company (a “Redemption Notice”), the Holder shall have the right to terminate this Warrant 
		

		 

		

			4

		

 

		Certificate and demand a redemption of the Warrant Shares representing the then unexercised portion of this Warrant Certificate (an “Early Redemption”).”
		

		
			﻿
		

			
	
			
				 SECTION 4.
			Conditions of Effectiveness.  This Third Amendment shall become effective upon, and shall be subject to, the prior or simultaneous satisfaction of each of the following conditions in a manner reasonably satisfactory to the Lenders (the date when all such conditions are so satisfied being the “Third Amendment Effective Date”):

			
	
			
				 (a)
			The Lenders shall have received counterparts of this Third Amendment executed on behalf of the Borrower, Guarantors and all Lenders.

		
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				 (b)
			The representations, warranties and reaffirmations set forth in Section 5 below shall be true and correct.

		
			﻿
		

			
	
			
				 (c)
			The Lenders shall have received all fees, costs and expenses due and payable pursuant to Section 13.03(a)(i)(z) of the Credit Agreement, including without limitation the reasonable fees and expenses of Morrison & Foerster LLP, counsel to the Lenders if then invoiced, together with all other fees separately agreed to by the Borrower and the Lenders.

		
			﻿
		

			
	
			
				 (d)
			All legal matters incident to the effectiveness of this Third Amendment shall be reasonably satisfactory to the Lenders.

		
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				 SECTION 5.
			Representations and Warranties; Reaffirmation.  

			
	
			
				 (a)
			The Obligors hereby jointly and severally represent and warrant to each Lender as follows:

			
	
			
				 (i)
			Each Obligor has full power, authority and legal right to make and perform this Third Amendment.  This Third Amendment is within each Obligor’s corporate powers and has been duly authorized by all necessary corporate and, if required, by all necessary shareholder action.  This Third Amendment has been duly executed and delivered by each Obligor and each of this Third Amendment and the Credit Agreement, as amended hereby, and each other Loan Document to which such Obligor is a party constitutes a legal, valid and binding obligation of such Obligor, enforceable against each Obligor in accordance with its terms, except as such enforceability may be limited by (a) bankruptcy, insolvency, reorganization, moratorium or similar laws of general applicability affecting the enforcement of creditors’ rights and (b) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).  Neither this Third Amendment nor the Credit Agreement (x) requires any consent or approval of, registration or any other action by, any Governmental Authority or any third party, except for such as have been obtained or made and are in full force and effect, (y) violates any applicable Law or the charter, bylaws or other organizational documents of any Obligor or any of its Subsidiaries or any order of any Governmental Authority, other than any such violations that, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect, or (z) violates or would reasonably be expected to result in an event of default under any Material Agreement binding 
		

		 

		

			5

		

 

			upon such Obligor or any of its Subsidiaries or assets, or give rise to a right thereunder to require any payment to be made by any such Person.

			
	
			
				 (ii)
			The representations and warranties set forth in each Loan Document, in each case, are true and correct in all material respects with the same effect as if then made (unless stated to relate solely to an earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date).

			
	
			
				 (iii)
			No Default or Event of Default has occurred or is continuing or will result after giving effect to this Third Amendment.  

			
	
			
				 (b)
			Each Obligor hereby ratifies, confirms, reaffirms, and acknowledges its obligations under each Loan Document (including without limitation the Credit Agreement) to which it is a party and agrees that each such Loan Document remains in full force and effect, undiminished by this Third Amendment, except as expressly provided herein; provided that, after the Third Amendment Effective Date, all references in any Loan Document to the “Credit Agreement”, “Loan Document”, “thereunder”, “thereof”, or words of similar import shall mean the Existing Credit Agreement and the Loan Documents, as amended or otherwise modified by this Third Amendment.  By executing this Third Amendment, each Obligor acknowledges that it has read, consulted with its attorneys regarding, and understands, this Third Amendment.

			
	
			
				 SECTION 6.
			Guarantors’ Acknowledgement and Consent.  Each Guarantor has read this Third Amendment and consents to the terms hereof and hereby acknowledges and agrees that any Loan Document to which such Person is a party shall continue in full force and effect and that all of its obligations thereunder shall be valid, binding, and enforceable, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally and by equitable principles relating to enforceability, and shall not be impaired or limited by the execution or effectiveness of this Third Amendment.  Each Guarantor acknowledges and agrees that (i) such Person is not required by the terms of the Credit Agreement or any other Loan Document to consent to the supplements and amendments to the Credit Agreement effected pursuant to this Third Amendment and (ii) nothing in the Credit Agreement, this Third Amendment or any other Loan Document shall be deemed to require the consent of such Person to any future supplements or amendments to the Credit Agreement.

			
	
			
				 SECTION 7.
			Miscellaneous.

			
	
			
				 (a)
			No Waiver.  Nothing contained herein shall be deemed to constitute a waiver of compliance with any term or condition contained in the Existing Credit Agreement, the Credit Agreement or any of the other Loan Documents or constitute a course of conduct or dealing among the parties.  Except as expressly stated herein, the Lenders reserve all rights, privileges and remedies under the Loan Documents.  Except as expressly amended hereby, the Credit Agreement and other Loan Documents remain unmodified and in full force and effect.

			
	
			
				 (b)
			Severability.  In case any provision of or obligation under this Third Amendment shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and 
		

		 

		

			6

		

 

			enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

			
	
			
				 (c)
			Headings.  Headings and captions used in this Third Amendment (including the Exhibits, Schedules and Annexes hereto, if any) are included for convenience of reference only and shall not be given any substantive effect.

			
	
			
				 (d)
			Integration.  This Third Amendment constitutes a Loan Document and, together with the other Loan Documents, incorporates all negotiations of the parties hereto with respect to the subject matter hereof and is the final expression and agreement of the parties hereto with respect to the subject matter hereof.  This Third Amendment shall (unless otherwise expressly indicated therein) be construed, administered and applied in accordance with all of the terms and provisions of the Credit Agreement, including Section 13 thereof (including, without limitation, Sections 13.09,  13.10 and 13.11).

			
	
			
				 (e)
			This Third Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

			
	
			
				 (f)
			Counterparts.  This Third Amendment may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument and any of the parties hereto may execute this Third Amendment by signing any such counterpart.

			
	
			
				 (g)
			Controlling Provisions.  In the event of any inconsistencies between the provisions of this Third Amendment and the provisions of any other Loan Document, the provisions of this Third Amendment shall govern and prevail.  Except as expressly modified by this Third Amendment, the Loan Documents shall not be modified and shall remain in full force and effect.

		
			IN WITNESS WHEREOF, the parties hereto have duly executed this Third Amendment, as of the date first above written.
		

		
			BORROWER:
		

		
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			KADMON PHARMACEUTICALS, LLC
		

		
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			By _______________________________________
		

		
			Harlan W. Waksal
		

		
			President and Chief Executive Officer
		

		
			﻿
		

		
			﻿
		

		
			GUARANTORS:
		

		
			﻿
		

		
			﻿
		

		
			KADMON CORPORATION, LLC
		

		
			﻿
		

		
			By _______________________________________
		

		

		

		 

		

			7

		

 

		Harlan W. Waksal
		

		
			President and Chief Executive Officer
		

		
			﻿
		

		
			﻿
		

		
			KADMON HOLDINGS, INC (f/k/a Kadmon Holdings, LLC)
		

		
			﻿
		

		
			By _______________________________________
		

		
			Harlan W. Waksal
		

		
			President and Chief Executive Officer
		

		
			﻿
		

		
			﻿
		

		
			KADMON RESEARCH INSTITUTE, LLC
		

		
			﻿
		

		
			By _______________________________________
		

		
			Harlan W. Waksal
		

		
			President and Chief Executive Officer
		

		
			﻿
		

		
			﻿
		

		
			THREE RIVERS RESEARCH INSTITUTE I, LLC
		

		
			﻿
		

		
			By _______________________________________
		

		
			Harlan W. Waksal
		

		
			President and Chief Executive Officer
		

		

		

		 

		

			8

		

 

		THREE RIVERS BIOLOGICS, LLC
		

		
			﻿
		

		
			By _______________________________________
		

		
			Harlan W. Waksal
		

		
			President and Chief Executive Officer
		

		
			﻿
		

		
			﻿
		

		
			THREE RIVERS GLOBAL PHARMA, LLC
		

		
			﻿
		

		
			By _______________________________________
		

		
			Harlan W. Waksal
		

		
			President and Chief Executive Officer
		

		
			﻿
		

		

		

		 

		

			9

		

 

		
		

		
			COLLATERAL REPRESENTATIVE:
		

		
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			﻿
		

		
			PERCEPTIVE CREDIT HOLDINGS, LP
		

		
			By Perceptive Credit Opportunities GP, LLC, its general partner
		

		
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			By ____________________________________
		

		
			Sandeep Dixit
		

		
			Chief Credit Officer
		

		
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			By ____________________________________
		

		
			Name:
		

		
			Title:
		

		
			﻿
		

		

		

		 

		

			10

		

 

		
		

		
			LENDERS:
		

		
			﻿
		

		
			﻿
		

		
			PERCEPTIVE CREDIT HOLDINGS, LP
		

		
			By Perceptive Credit Opportunities GP, LLC, its general partner
		

		
			﻿
		

		
			By ____________________________________
		

		
			Sandeep Dixit
		

		
			Chief Credit Officer
		

		
			﻿
		

		
			By ____________________________________
		

		
			Name:
		

		
			Title:
		

		
			﻿
		

		

		

		 

		

			11

		

 

		
		

		
			GOLDENTREE CREDIT OPPORTUNITIES, LP
		

		
			By GoldenTree Asset Management, LP
		

		
			﻿
		

		
			By ____________________________________
		

		
			Name:
		

		
			Title:
		

		
			﻿
		

		
			GOLDENTREE CREDIT OPPORTUNITIES, LTD
		

		
			By GoldenTree Asset Management, LP
		

		
			﻿
		

		
			By ____________________________________
		

		
			Name:
		

		
			Title:
		

		
			﻿
		

		
			GOLDENTREE INSURANCE FUND SERIES INTERESTS OF THE SALI MULTI-SERIES FUND, LPBY GOLDENTREE ASSET MANAGEMENT, LP
		

		
			By GoldenTree Asset Management, LP
		

		
			﻿
		

		
			By ____________________________________
		

		
			Name:
		

		
			Title:
		

		
			﻿
		

		
			GT NM, LP
		

		
			By GoldenTree Asset Management, LP
		

		
			﻿
		

		
			By ____________________________________
		

		
			Name:
		

		
			Title:
		

		
			﻿
		

		
			SAN BERNARDINO COUNTY EMPLOYEES’ RETIREMENT ASSOCIATION
		

		
			By GoldenTree Asset Management, LP
		

		
			﻿
		

		
			By ____________________________________
		

		
			Name:
		

		
			Title:
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		 

		

			12

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