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                  Exhibit 10.1

                  EMPLOYMENT AGREEMENT

                  Effective as of August 23, 2010

                  This Agreement is entered into and made effective as of August 23,
                     2010 (the "Effective Date") between Tanger Properties Limited Partnership (the "Company") and THOMAS EDWARD McDONOUGH (the "Executive"). The Company and the Executive are sometimes
                     referred to individually as a "Party" and collectively as the
                     "Parties".
                  

                  RECITALS

                  A.        The Company and the Executive have agreed upon the terms
                     and conditions of the Executive's employment by the Company.
                  

                  B.        The Parties intend to set forth herein the entire agreement
                     between them with respect to Executive's employment by the Company.
                  

                  Now therefore in consideration of the foregoing recitals and the
                     promises contained herein the Parties agree as follows:
                  

                  1.        EMPLOYMENT AND DUTIES.
                  

                  1.1        Employment. During the Contract Term (as defined herein), the Company will
                     employ the Executive and the Executive shall serve the Company as a
                     full-time employee upon and subject to the terms and conditions of
                     this Agreement. The Executive's employment hereunder may be
                     terminated before the end of the Contract Term only as provided in
                     Section 5 of this Agreement.
                  

                  1.2        Position and Responsibilities. Executive will be elected to serve as Executive Vice President of
                     Operations of the Company, reporting directly to the Chief Executive
                     Officer. During Executive's employment hereunder, his primary duties,
                     functions, responsibilities and authority will include oversight of
                     site selection for new shopping centers, leasing in new and existing
                     centers, management of existing centers, promotion, advertising and
                     marketing of the Company's shopping centers and communication with
                     the Company's tenants. Executive will be required to engage in
                     extensive travel and will work out of the Company's Greensboro, North
                     Carolina office. Executive will be required to relocate his permanent
                     residence to the Greensboro, North Carolina area. Further, Executive
                     shall perform such other duties as are assigned to him by the Chief
                     Executive Officer and/or the Board of Directors consistent with his
                     position.
                  

                  1.3        Time and Effort. During the Contract Term, Executive shall be employed on a
                     full-time basis and shall devote his best efforts and substantially
                     all of his business attention, time and effort (excluding sick leave,
                     vacation provided for herein and reasonable time devoted to civic and
                     charitable activities) to the business and affairs of the Company.
                  

                  Company acknowledges that Executive is a limited
                     partner/member/advisor in two residential and one commercial real
                     estate endeavors, none of which compete with the Company.
                  

                  2.        PERIOD OF EMPLOYMENT.
                  

                  2.1        Initial Contract term. The period of employment pursuant to this Agreement shall begin on
                     August 23, 2010 (the "Commencement Date") and shall extend through
                     December 31, 2013 (the "Initial Contract Term"), unless earlier
                     terminated as provided in Section 5 or extended as provided in this
                     Section 2. The period from August 23, 2010 to December 31, 2010 is
                     herein referred to as the "Initial Short Year". The calendar year
                     beginning January 1, 2011 and each calendar year thereafter during
                     the Contract Term is sometimes herein referred to as a "Contract
                     Year".
                  

                  2.2         Extended Contract Term. The Contract Term shall be automatically extended at the end of the
                     Initial or an Extended Term for one additional Contract Year
                     (sometimes herein referred to as an "Extended Term") unless either
                     the Executive or the Company shall give written notice to the other
                     of them that the Contract Term shall not be so extended at least one
                     hundred eighty (180) days prior to the end of the Initial or an
                     Extended Term. An Extended Term shall be upon the same terms and
                     conditions as were applicable to the Initial Term except that the
                     Annual Base Salary shall be the Executive's Annual Base Salary for
                     the Contract Year immediately preceding the Extended Term. References
                     herein to the "Contract Term" of this Agreement shall refer to the
                     Initial Term as extended pursuant to this Section.
                  

                  3.        COMPENSATION.
                  

                  3.1        Base Salary. As compensation for Executive's services performed pursuant to this
                     Agreement, Employer will pay Executive a salary at the annualized
                     rate of $350,000.00 during the Initial Short Year and, with respect
                     to each Contract Year thereafter an amount agreed upon by Executive
                     and the Company but not less than $350,000.00 (the "Annual Base
                     Salary"). The Annual Base Salary shall be paid in equal installments
                     in arrears in accordance with Employer's regular pay schedule.
                  

                  3.2        Annual Bonus. As additional compensation for services rendered, the Executive
                     shall receive such bonus or bonuses as the Company's Board of
                     Directors may from time to time approve including without limitation
                     awards under
                  

               

            

         

         			

         			

         			

      

      
         
            
               
                  the Company's Incentive Award Plan. Such bonuses may be payable in
                     cash (a "Cash Bonus") and/or in the form of equity based compensation
                     as allowed under the Company's Incentive Award Plan. Any such annual
                     bonus shall be payable on or prior to the fifteenth (15th) day of the
                     third (3rd) calendar month following the end of the calendar year
                     with respect to which such annual bonus relates.
                  

                  With respect to the Initial Short Year, the Company will pay
                     Executive a bonus in an amount equal to the greater of (a) $54,000 or
                     (b) 36% of the bonus Executive would have received under the plan
                     described on attached Exhibit A based on achievement of performance criteria for Calendar Year 2010
                     if Executive had been employed by the Company for all of Calendar
                     Year 2010 and had been eligible for a bonus under that plan.
                  

                  3.3        Grant of Restricted Shares. Effective upon the commencement of Executive's employment
                     hereunder, the Company will grant Executive five thousand (5,000)
                     restricted shares under the Company's Incentive Award Plan. The
                     restricted shares will vest at the rate of twenty percent (20%) per
                     year with the first shares vesting on the anniversary of the
                     Commencement Date and an additional twenty percent (20%) vesting on
                     each anniversary of the Commencement Date thereafter until the
                     restricted shares are fully vested. Company and Executive shall enter
                     into the standard form of Restricted Share Agreement with respect
                     this grant. After calendar year 2010, Executive shall be given
                     consideration for the grant of restricted shares in the same manner
                     as other members of the executive leadership team.
                  

                  3.4        Moving Expenses. Subject to Section 9(b)(v) of this Agreement, the Company agrees to
                     provide Executive with the following in connection with the
                     relocation of his permanent residence from Irvine, CA to Greensboro,
                     NC:
                  

                           (a)        The costs of moving the Executive's family
                     including packing and moving Executive's household effects by way of
                     a national moving company offering the lowest of three bids for
                     such move;
                  

                          (b)        To assist Executive in locating housing in
                     Greensboro, NC, the cost of coach class round trip airline tickets,
                     hotel, rental car and reasonable meal expenses for a three day/two
                     night trip for Executive and his wife to Greensboro, NC. All travel
                     arrangements should be coordinated through the Company's Travel
                     Manager, Celeste Dixon.
                  

                          (c)        The cost of three coach class round trip airline
                     tickets from Greensboro, NC to Irvin, CA after the Commencement Date
                     and to be coordinated with approved business travel to the Company's
                     existing centers or development sites on the West Coast.
                  

                          (d)        The cost of transporting two personal automobiles
                     from Irvine, CA to Greensboro, NC in connection with Executive's
                     relocation in Greensboro, NC.
                  

                          (e)        The Company will give Executive four (4)
                     additional days off work if needed in connection with the relocation
                     of his family and household effects to the Greensboro, NC area.
                  

                  Moving expenses paid for Executive pursuant to this Agreement may be
                     subject to withholding as required by law and will be reported as
                     wages earned on Executive's form W-2 at year end.
                  

                  3.5        Housing Allowance. For the period from the Commencement Date until the sale or other
                     disposition of Executive's primary residence in Irvine, CA, the
                     Company will pay Executive a housing allowance of up to Three
                     Thousand Dollars ($3,000.00) per month for no longer than six (6)
                     months for rental expense (base rent plus security deposit and
                     utilities) incurred by Executive for his residence in the Greensboro,
                     NC area. Such housing allowance shall be payable on or prior to the
                     fifteenth (15th) day of the third (3rd) calendar month following the
                     end of the calendar year in which such rental expense was incurred.
                  

                  4.        EMPLOYEE BENEFITS.
                  

                  4.1        Executive Benefit Plans. Executive shall participate in the employee benefit plans
                     (including group medical and dental plans, a group term life
                     insurance plan, a disability plan and a 401(k) Savings plan)
                     generally applicable to employees of the Company, as those plans may
                     be in effect from time to time.
                  

                  4.2        Expenses. Subject to Section (9b)(v), the Company shall promptly reimburse
                     the Executive for all reasonable travel and other business expenses
                     incurred by the Executive in the performance of his duties to the
                     Company hereunder. Executive shall observe and comply with the
                     Company's policies with respect to such reimbursements as in effect
                     from time to time. At least monthly, Executive will submit such
                     records and paid bills supporting the amount of the expenses incurred
                     and to be reimbursed as the Company shall reasonably request or as
                     shall be required by applicable laws.
                  

                  4.3        Vacation. Executive shall have the number of days of paid vacation during
                     each calendar year that are provided to employees of the Company with
                     the same number of years of service as Executive has pursuant to the
                     Company's vacation policy described in the Company's employee
                     handbook in effect on the first day of that calendar year. Provided
                     however, for the Initial Short Year, Executive shall be eligible to
                     accrue and use (i) three (3) days of paid vacation and one (1) paid
                     sick day for the Initial Short Year and (ii) fifteen days (15) of
                     paid vacation and five (5) paid sick days for each Contract Year
                     thereafter.
                  

                  5.        TERMINATION OF EMPLOYMENT.
                  

               

            

         

         			

         			

         			

      

      
         
            
               
                  5.1        Termination Circumstances. Executive's employment hereunder may be terminated prior to the end
                     of the Contract Term by the Company or the Executive, as applicable,
                     without any breach of this Agreement only under the following
                     circumstances:
                  

                          (a)        Death. Executive's employment hereunder shall terminate upon his death.
                  

                          (b)        Disability. If the Disability of Executive has occurred during the Contract
                     Term, the Company may give Executive written notice of its intention
                     to terminate Executive's employment. In such event, Executive's
                     employment with the Company shall terminate effective on the 30th day
                     after receipt of such notice by Executive, provided that within the
                     30 days after such receipt, Executive shall not have returned to
                     full-time performance of his duties.
                  

                          (c)        Cause. The Company may terminate the Executive's employment hereunder for Cause.
                  

                          (d)        Good Reason. Executive may terminate his employment for Good Reason.
                  

                          (e)        Without Cause. The Company may terminate Executive's employment hereunder other
                     than for Cause for any or no reason upon 30 days notice.
                  

                          (f)        Resignation without Good Reason. The Executive may resign his employment without Good Reason upon 90
                     days written notice to the Company.
                  

                  Except as may otherwise be expressly provided in Section 7.1(a) or in
                     any written agreement between the Company and Executive with respect
                     to the issuance of awards under the Company's Incentive Award Plan,
                     upon termination of Executive's employment, Executive shall be
                     entitled to receive only the compensation accrued but unpaid for the
                     period of employment prior to the date of such termination of
                     employment and shall not be entitled to additional compensation.
                  

                  5.2        Notice of Termination. Any termination of the Executive's employment hereunder by the
                     Company or by the Executive (other than by reason of the Executive's
                     death) shall be communicated by a notice of termination to the other
                     party hereto. For purposes of this Agreement, a "notice of
                     termination" shall mean a written notice which (i) indicates the
                     specific termination provision in the Agreement relied upon, (ii)
                     sets forth in reasonable detail any facts and circumstances claimed
                     to provide a basis for termination of the Executive's employment
                     under the provision indicated and (iii) specifies the effective date
                     of the termination.
                  

                  6.         AGREEMENT NOT TO COMPETE.
                  

                  6.1        Covenant Against Competition. Executive agrees that during the term of Executive's employment
                     hereunder and (i) if Executive's employment is terminated by the
                     Company for Cause or by Executive without Good Reason, until the
                     first anniversary of the date of his termination or (ii) if Executive
                     receives the Severance Payment described in Section 7.1(a) of this
                     Agreement because of a termination of his employment by the Company
                     without Cause or by Executive for Good Reason, from the date of such
                     termination through the third anniversary of such termination date,
                     Executive shall not, directly or indirectly, as an employee,
                     employer, shareholder, proprietor, partner, principal, agent,
                     consultant, advisor, director, officer, or in any other capacity,
                  

                  	 	 	 	 	 	 	 	 	 

                        	 	 	 	 	              (1)        engage in activities involving the
                              development or operation of a manufacturers outlet shopping center
                              which is located within a radius of fifty (50) miles of a retail
                              shopping facility which, within the 365 day period ending on the date
                              of the termination of Executive's employment hereunder, was owned
                              (with an effective ownership interest of 50% or more), directly or
                              indirectly, by the Company or was operated by the Company;
                           	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	              (2)        engage in activities involving the
                              development or operation of a manufacturers outlet shopping center
                              which is located within a radius of fifty (50) miles of any site
                              which, within the 365 day period ending on the date of the
                              termination of Executive's employment hereunder, the Company or its
                              affiliate negotiated to acquire and/or lease for the development or
                              operation of a retail shopping facility;
                           	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	              (3)        engage in activities involving the
                              development or operation of any other type of retail shopping
                              facility which is located within a radius of five (5) miles of, and
                              competes directly for tenants with, a retail shopping facility which,
                              within the 365 day period ending on the date of the termination of
                              Executive's employment hereunder, was (i) under development by the
                              Company or its affiliate; (ii) owned (with an effective ownership
                              interest of 50% or more), directly or indirectly, by the Company; or
                              (iii) operated by the Company.
                           	 	 	 	 

                  6.2        Disclosure of Information. Executive acknowledges that in and as a result of his employment
                     hereunder, he may be making use of, acquiring and/or adding to
                     confidential information of a special and unique nature and value
                     relating to such matters as financial information, terms of leases,
                     terms of financing, financial condition of tenants and potential
                     tenants, sales and rental income of shopping centers and other
                     specifics about Company's development, financing, construction and
                     operation of retail shopping facilities. Executive covenants and
                     agrees that he shall not, at any time during or for the
                  

               

            

         

         			

         			

         			

      

      
         
            
               
                  first five (5) years following the term of his employment, directly
                     or indirectly, divulge or disclose for any purpose whatsoever any
                     such confidential information that has been obtained by, or disclosed
                     to, him as a result of his employment by Company.
                  

                  6.3        Reasonableness of Restrictions.
                  

                          (a)        Executive has carefully read and considered the
                     foregoing provision of this Section, and, having done so, agrees that
                     the restrictions set forth in this Section, including but not limited
                     to the time period of restriction set forth in the covenant against
                     competition are fair and reasonable and are reasonably required for
                     the protection of the interests of Company and its officers,
                     directors and other employees.
                  

                          (b)        In the event that, notwithstanding the foregoing,
                     any of the provisions of this Section shall be held invalid or
                     unenforceable by a court of competent jurisdiction, the remaining
                     provisions thereof shall nevertheless continue to be valid and
                     enforceable as though the invalid or unenforceable parts had not been
                     included herein. In the event that any provision of this Section
                     relating to the time period and/or the areas of restriction shall be
                     declared by a court of competent jurisdiction to exceed the maximum
                     time period or areas such court deems reasonable and enforceable, the
                     time period and/or areas of restriction deemed reasonable and
                     enforceable by the court shall become and thereafter be the maximum
                     time period and/or areas.
                  

                  6.4        Consideration. Executive's promises in this Section not to compete with the
                     Company and not to disclose information obtained during his
                     employment by the Company are made in consideration of the Company's
                     agreement to pay the compensation provided for herein for the period
                     of employment provided herein. Such promises by Executive constitute
                     the material inducement to Company to employ Executive for the term
                     and to pay the compensation provided for in this Agreement and to
                     make and to continue to make confidential information developed by
                     Company available to Executive.
                  

                  6.5        Company's Remedies. Executive covenants and agrees that if he shall violate any of his
                     covenants or agreements contained in this Section, the Company shall,
                     in addition to any other rights and remedies available to it at law
                     or in equity, have the following rights and remedies against
                     Executive:
                  

                          (a)        The Company shall be relieved of any further
                     obligation to Executive under the terms of this agreement;
                  

                           (b)        The Company shall be entitled to an accounting
                     and repayment of all profits, compensation, commissions,
                     remunerations or other benefits that Executive, directly or
                     indirectly, has realized and/or may realize as a result of, growing
                     out of or in connection with, any such violation; and
                  

                          (c)        Company shall be entitled to a permanent
                     injunction to prevent or restrain the breach or violation of the
                     agreements contained herein by Executive or by Executive's partners,
                     agents, representatives, servants, employees and/or any and all
                     persons directly acting for or with Executive.
                  

                  The foregoing rights and remedies of the Company shall be cumulative
                     and the election by the Company to exercise any one or more of them
                     shall not preclude the Company's exercise of any other rights
                     described above or otherwise available under applicable principals of
                     law or equity.
                  

                  7.        SEVERANCE BENEFITS.
                  

                  7.1        Description of Benefits.
                  

                          (a)        Termination without Cause or for Good Reason: If Executive's employment shall be terminated (i) by the Company
                     other than for Cause or (ii) by the Executive for Good Reason,
                     subject to the limitation in Section 7.2 and to Section 9(b) hereof,
                     the Company shall pay Executive an amount equal to three hundred
                     percent (300%) of the sum of (x) his Annual Base Salary and (y) his
                     "Average Annual Cash Bonus". Such amount shall be paid in equal
                     consecutive monthly or bi-weekly installments in accordance with the
                     Company's regular pay schedule and subject to Section 9(b)(iv) over a
                     thirty-six (36) month period beginning on the effective date of the
                     termination of Executive's employment. For these purposes,
                     Executive's "Average Annual Cash Bonus" shall be the average of the
                     Cash Bonuses earned by Executive for each of the three consecutive
                     Contract Years (or if Executive has not been employed for three full
                     Contract Years, such fewer number of full Contract Years he has been
                     employed by the Company) immediately preceding the Contract Year in
                     which Executive's termination of employment occurs. In calculating
                     Executive's Average Annual Cash Bonus, the amount of any share-based
                     award under the Incentive Award Plan that Executive is required to
                     recognize as income for federal income tax purposes in a Contract
                     Year shall be included as part of Executive's Annual Cash Bonus for
                     that Contract Year.
                  

                          (b)        Termination by Death or Disability. Subject to Section 9(b), upon the termination of the Executive's
                     employment by reason of his death or Disability, the Company shall
                     pay to the Executive or to the personal representatives of his
                     estate (i) within thirty (30) days after the termination, a lump-sum
                     amount equal to one hundred percent (100%) of the Executive's Annual
                     Base Salary for the Contract Year in which the termination occurs and
                     (ii) on or before the day on which the Executive's Cash Bonus for the
                     Contract Year in which the termination occurs would have been payable
                     if the termination had not occurred, an amount equal to the Cash
                     Bonus the Executive would have received for that Contract Year if the
                     termination had not occurred multiplied by a fraction the numerator
                     of which is the number of days in that Contract Year before the date
                     of termination and the denominator of which is 365. This subsection
                     7.1(b) shall not limit the entitlement
                  

               

            

         

         			

         			

         			

      

      
         
            
               
                  of the Executive, his estate or beneficiaries to any disability or
                     other benefits then available to the Executive under any life,
                     disability insurance or other benefit plan or policy which is
                     maintained by the Company for the Executive's benefit.
                  

                          (c)        Termination for Cause or Without Good Reason. If the Executive's employment is terminated by the Company for Cause
                     or by the Executive without Good Reason, the Executive shall be
                     entitled to all Annual Base Salary and all Benefits accrued through
                     the date of termination. Such accrued compensation shall be paid in
                     accordance with the Company's ordinary pay practices and, in any
                     event, on or prior to the fifteenth (15th) day of the third (3rd)
                     calendar month following the end of the calendar year in which the
                     date of termination occurs.
                  

                         (d)        Survival. Neither the termination of the Executive's employment hereunder nor
                     the expiration of the Contract Term shall impair the rights or
                     obligations of any party hereto which shall have accrued hereunder
                     prior to such termination or expiration.
                  

                          (e)        Mitigation of Damages. In the event of any termination of the Executive's employment by
                     the Company, the Executive shall not be required to seek other
                     employment to mitigate damages, and any income earned by the
                     Executive from other employment or self-employment shall not be
                     offset against any obligations of the Company to the Executive under
                     this Agreement.
                  

                  7.2        Limitation on Severance Benefits.
                  

                          (a)        Notwithstanding any other provision of this
                     Agreement, and except as provided in paragraph 7.2(b) below, payments
                     and benefits to which Executive would otherwise be entitled under the
                     provisions of this Agreement will be reduced (or the Executive shall
                     make reimbursement of amounts previously paid) to the extent
                     necessary to prevent the Executive from having any liability for the
                     federal excise tax levied on certain "excess parachute payments"
                     under section 4999 of the Internal Revenue Code as it exists as of
                     the date of this Agreement.
                  

                           (b)        The Company may determine the amount (if any) of
                     reduction for each payment or benefit that Executive would otherwise
                     be entitled to receive. The extent to which the payments or benefits
                     to the Executive are to be reduced pursuant to paragraph 7.2(a) will
                     be determined by the accounting firm servicing the Company on the
                     date that the Executive's employment is terminated. The Company shall
                     pay the cost of such determination.
                  

                          (c)        If the final determination of any reduction in any
                     benefit or payment pursuant to this Section has not been made at the
                     time that the Executive is entitled to receive such benefit or
                     payment, the Company shall pay or provide an estimated amount based
                     on a recommendation by the accounting firm making the determination
                     under subparagraph 7.2(b). When the final determination is made, the
                     Company shall pay the Executive any additional amounts that may be
                     due or the Executive shall reimburse the Company for any estimated
                     amounts paid to the Executive that were in excess of the amount
                     payable hereunder.
                  

                  8.        DEFINITIONS.
                  

                  "Annual Base Salary" is defined in Section 3.
                  

                  "Average Annual Cash Bonus" is defined in Section 7.1.
                  

                  "Cash Bonus" is defined in Section 3.
                  

                  "Cause" For purposes of this Agreement, the Company shall have "Cause" to
                     terminate Executive's employment hereunder upon (i) Executive causing
                     material harm to the Company through a material act of dishonesty in
                     the performance of his duties hereunder, (ii) his conviction of a
                     felony involving moral turpitude, fraud or embezzlement, or (iii) his
                     willful failure to perform his material duties under this Agreement
                     (other than a failure due to disability) after written notice
                     specifying the failure and a reasonable opportunity to cure (it being
                     understood that if his failure to perform is not of a type requiring
                     a single action to cure fully, that he may commence the cure promptly
                     after such written notice and thereafter diligently prosecute such
                     cure to completion).
                  

                  "Change of Control" shall mean (A) the sale, lease, exchange or other transfer (other
                     than pursuant to internal reorganization) by the Company or Tanger
                     Factory Outlet Centers, Inc. ("TFOC") of more than 50% of its assets
                     to a single purchaser or to a group of associated purchasers; (B) a
                     merger, consolidation or similar transaction in which TFOC or the
                     Company does not survive as an independent, publicly owned
                     corporation or TFOC or an entity wholly owned by TFOC ceases to be
                     the sole general partner of the Company; or (C) the acquisition of
                     securities of TFOC or the Company in one or a related series of
                     transactions (other than pursuant to an internal reorganization) by a
                     single purchaser or a group of associated purchasers (other than
                     Executive or any of his lineal descendants, lineal ancestors or
                     siblings) which results in their ownership of twenty-five (25%)
                     percent or more of the number of Common Shares of TFOC (treating any
                     Partnership Units or Preferred Shares acquired by such purchaser or
                     purchasers as if they had been converted to Common Shares) that would
                     be outstanding if all of the Partnership Units and Preferred Shares
                     were converted into Common Shares; (D) a merger involving TFOC if,
                     immediately following the merger, the holders of TFOC's shares
                     immediately prior to the merger own less than fifty (50%) of the
                     surviving company's outstanding shares having unlimited voting rights
                     or less than fifty percent (50%) of the value of all of the surviving
                     company's outstanding shares; or (E) a majority of the members of the
                     Company's Board
                  

               

            

         

         			

         			

         			

      

      
         
            
               
                  of Directors are replaced during any twelve month period by directors
                     whose appointment or election is not endorsed by a majority of the
                     members of the Board prior to the date of the appointment or election.
                  

                  "Contract Term" is defined in Section 2.
                  

                  "Contract Year" is defined in Section 2.
                  

                  "Disability" shall mean the absence of Executive from Executive's duties to the
                     Company on a full-time basis for a total of 16 consecutive weeks
                     during any 12 month period as a result of incapacity due to mental or
                     physical illness which is determined to be total and permanent by a
                     physician selected by the Company and acceptable to Executive or
                     Executive's legal representative (such agreement as to acceptability
                     not to be withheld unreasonably).
                  

                  "Good Reason" Executive shall have Good Reason to terminate his employment upon
                     the occurrence of any of the following events:  (i) any material
                     adverse change in his job titles, duties, responsibilities,
                     perquisites granted hereunder, or authority without his consent; (ii)
                     if, after a Change of Control, any of the principal duties of
                     Executive are required to be performed at a location other than the
                     Greensboro, North Carolina metropolitan area without his consent;
                     (iii) a material breach of this Employment Agreement by the Company,
                     including without limitation, the failure to pay compensation or
                     benefits when due hereunder if such failure is not cured within 30
                     days after delivery to the Company of Executive's written demand for
                     payment thereof; or (iv) if Executive elects to terminate his
                     employment by written notice to the Company within the 180 day period
                     following a Change of Control.
                  

                  "Section 409A" shall mean, collectively, Section 409A of the Internal Revenue Code
                     of 1986, as amended, and the Department of Treasury Regulations and
                     other interpretive guidance promulgated thereunder, including without
                     limitation any such regulations or other guidance that may be issued
                     after the date of this amendment and restatement.
                  

                  9.        Section 409A.
                  

                  (a)        The parties acknowledge and agree that, to the extent
                     applicable, this Agreement shall be interpreted in accordance with,
                     and the parties agree to use their best efforts to achieve timely
                     compliance with Section 409A. Notwithstanding any provision of this
                     Agreement to the contrary, in the event that the Company determines
                     that any compensation or benefits payable or provided under this
                     Agreement may be subject to Section 409A, the Company may adopt
                     (without any obligation to do so or to indemnify Executive for
                     failure to do so) such limited amendments to this Agreement and
                     appropriate policies and procedures, including amendments and
                     policies with retroactive effect, that the Company reasonably
                     determines are necessary or appropriate to (i) exempt the
                     compensation and benefits payable under this Agreement from Section
                     409A and/or preserve the intended tax treatment of the compensation
                     and benefits provided with respect to this Agreement or (ii) comply
                     with the requirements of Section 409A. No provision of this Agreement
                     shall be interpreted or construed to transfer any liability for
                     failure to comply with the requirements of Section 409A from
                     Executive or any other individual to the Company or any of its
                     affiliates, employees or agents.
                  

                  (b)        Separation from Service under 409A. Notwithstanding any
                     provision to the contrary in this Agreement:
                  

                  	 	 	 	 	 	 

                        	 	 	 	 	        (i)        No amount shall be payable pursuant to Sections
                              7.1(a) or (b) unless the termination of Executive's employment
                              constitutes a "separation from service" within the meaning of Section
                              1.409A-1(h) of the Department of Treasury Regulations with respect to
                              the Company; and
                           	 
	 	 	 	 	 	 
	 	 	 	 	        (ii)        If Executive is deemed at the time of his
                              separation from service to be a "specified employee" for purposes of
                              Section 409A(a)(2)(B)(i) of the Code, to the extent delayed
                              commencement of any portion of the termination benefits to which
                              Executive is entitled under this Agreement (after taking into account
                              all exclusions applicable to such termination benefits under Section
                              409A), including, without limitation, any portion of the additional
                              compensation awarded pursuant to Section 7, is required in order to
                              avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the
                              Code, such portion of Executive's termination benefits shall not be
                              provided to Executive prior to the earlier of (A) the expiration of
                              the six-month period measured from the date of Executive's
                              "separation from service" with the Company (as such term is defined
                              in the Department of Treasury Regulations issued under Section 409A
                              of the Code) or (B) the date of Executive's death. Upon the earlier
                              of such dates, all payments deferred pursuant to this Section
                              9(b)(ii) shall be paid in a lump sum to Executive, and any remaining
                              payments due under the Agreement shall be paid as otherwise provided
                              herein; and
                           	 
	 	 	 	 	 	 
	 	 	 	 	        (iii)        The determination of whether Executive is a
                              "specified employee" for purposes of Section 409A(a)(2)(B)(i) of the
                              Code as of the time of his separation from service shall be made by
                              the Company in accordance with the terms of Section 409A of the Code
                              and applicable guidance thereunder (including without limitation
                              Section 1.409A-1(i) of the Department of Treasury Regulations and any
                              successor provision thereto); and
                           	 
	 	 	 	 	 	 
	 	 	 	 	        (iv)        For purposes of Section 409A of the Code,
                              Executive's right to receive installment payments pursuant to
                              Sections 7.1(a) or (b) shall be treated as a right to receive a
                              series of separate and distinct payments; and
                           	 
	 	 	 	 	 	 

               

            

         

         			

         			

         			

      

      
         
            
               
                  	 	 	 	 	 	 
	 	 	 	 	        (v)        The reimbursement of any expense under Section 3.4 or Section 4.2 shall be made no later
                           than December 31 of the year following the year in which the expense
                           was incurred. The amount of expenses reimbursed in one year shall not
                           affect the amount eligible for reimbursement in any subsequent year.
                           The amount of any Benefits provided in one year shall not affect the
                           amount of Benefits provided in any other year.
                        	 

                  10.        MISCELLANEOUS.
                  

                  9.1        Binding on Successors. This Agreement shall be binding upon and inure to the benefit of
                     the Partnership, the Company, the Executive and their respective
                     successors, assigns, personal and legal representatives, executors,
                     administrators, heirs, distributees, devisees, and legatees, as
                     applicable.
                  

                  9.2        Governing Law. This Agreement is being made and executed in and is intended to be
                     performed in the State of North Carolina, and shall be governed,
                     construed, interpreted and enforced in accordance with the
                     substantive laws of the State of North Carolina without any reference
                     to principles of conflicts or choice of law under which the law of
                     any other jurisdiction would apply.
                  

                  9.3        Validity. The invalidity or unenforceability of any provision or provisions
                     of this Agreement shall not affect the validity or enforceability of
                     any other provision of this Agreement, which shall remain in full
                     force and effect.
                  

                  9.4        Notices. All notices, demands, requests or other communications
                     (collectively, "Notices") required to be given or which may be given
                     hereunder shall be in writing and shall be sent by (a) certified or
                     registered mail, return receipt requested, postage prepaid, or (b)
                     national overnight delivery service, or (c) facsimile transmission
                     (provided that the original shall be simultaneously delivered by
                     national overnight delivery service or personal delivery), or (d)
                     personal delivery, addressed as follows:
                  

                  	 	 	 	 	 	 

                        	 	If to Company, to:	 	 	Tanger Properties Limited Partnership
3200 Northline Avenue, Suite 360 or
 P.O. Box 10889
 Greensboro, NC 27408
Attention: Mr. Steven B. Tanger
                           	 
	 	 	 	 	 	 
	 	With a copy to:	 	 	Mr. John H. Vernon, III
P.O. Box 2958 (27216)
522 S. Lexington Avenue
Burlington, NC 27215
336/227-8851
                           	 
	 	 	 	 	 	 
	 	If to Executive, to:	 	 	Mr. Thomas Edward McDonough
Tanger Properties Limited Partnership
3200 Northline Avenue, Suite 360
Greensboro, NC 27408
                           	 
	 	 	 	 	 	 
	 	With a copy to:	 	 	Ms. Theresa Kading
Hodel Briggs Winter LLP
8105 Irvine Center Drive, Suite 1400
Irvine, CA 92618
949/450-4434
                           	 

                  Any Notice so sent by certified or registered mail, national
                     overnight delivery service or personal delivery shall be deemed given
                     on the date of receipt or refusal by the intended recipient as
                     indicated on the return receipt, or the receipt of the national
                     overnight delivery service or personal delivery service. Any Notice
                     sent by facsimile transmission shall be deemed given when received by
                     the intended recipient as confirmed by the telecopier electronic
                     confirmation receipt. A Notice may be given either by a party or by
                     such party's attorney. A Party may (i) change the address to which
                     any Notice to that Party hereunder is to be delivered or (ii)
                     designate additional or substituted parties to whom Notices hereunder
                     to such Party should be sent with any such change or designation to
                     be effective five (5) Business Days after delivery of notice thereof
                     to the other Party in the manner herein provided. As used herein the
                     term "Business Day" shall mean every day, other than Saturdays,
                     Sundays and any other day on which banks in the State in which the
                     Center is located are not generally open for the conduct of banking
                     business during normal business hours.
                  

                  9.5        Entire Agreement. The terms of this Agreement are intended by the parties to be the
                     final expression of their agreement with respect to the employment of
                     the Executive by the Partnership and the Company and may not be
                     contradicted by evidence of any prior or contemporaneous agreement.
                     The parties further intend that this Agreement shall constitute the
                     complete and exclusive statement of its terms and that no extrinsic
                     evidence whatsoever may be introduced in any judicial,
                     administrative, or other legal proceeding to vary the terms of this
                     Agreement.
                  

                  [Signatures to appear on following pages]

               

            

         

         			

         			

         			

      

      
         
            
               
                  IN WITNESS WHEREOF, the undersigned party has executed or caused to
                     be executed this Employment Agreement as of the Effective Date.
                  

                    

                  	 	 	 	 	 	 

                        	 	 	 	 	
                              TANGER PROPERTIES LIMITED PARTNERSHIP

                              (Company)

                           	 
	 	 	 	 	 	 
	 	 	 	 	By: Tanger GP Trust, its General Partner	 
	 	 	 	 	By: /s/ Steven B. Tanger	 
	 	 	 	 	Steven B. Tanger	 
	 	 	 	 	President and Chief Executive Officer	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 

               

            

         

         			

         			

         			

      

      
         
            
               
                  IN WITNESS WHEREOF, the undersigned party has executed or caused to
                     be executed this Employment Agreement as of the Effective Date.
                  

                    

                    

                  	 	 	 	 	 	 

                        	 	 	 	 	/s/ Thomas Edward McDonough (SEAL)
                           	 
	 	 	 	 	 	 
	 	 	 	 	THOMAS EDWARD McDONOUGH	 
	 	 	 	 	Executive	 

               

            

         

         			

         			

         			

      

      
         
            
               
                  EMPLOYMENT AGREEMENT:
Tanger Properties Limited Partnership, Company
THOMAS EDWARD McDONOUGH, Executive.
                  

                  EXHIBIT A

                    

                    

                  Calculation of Annual Bonus

                  The Annual Bonus is an amount, expressed as a percentage of the
                     Executive's base annual salary for each Performance Criteria,
                     multiplied by a designated percentage for Threshold, Target or
                     Maximum achievement of that Criteria.
                  

                  	 	 	 	 	 	 	 	 	 

                        	 	 	 	 	For example, if the Base Annual Salary is $350,000:	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	(a)	 	 	A $2.60 Growth in FFO per share is the Threshold level of achievement
                              for that criteria and will produce a bonus of $28,000 [(20% of
                              $350,000) x 40%)]
                           	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	(b)	 	 	A 58% FFO Payout Ratio is the Target level of achievement for that
                              criteria and will produce a bonus of $17,500 [(10% of $350,000) x
                              50%]; and
                           	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	(c)	 	 	An 8% Total Return to Shareholders is the Maximum level of
                              achievement for that criteria and will produce a bonus of $21,000
                              [10% of $350,000) x 60%]
                           	 

                  Bonus will be calculated incrementally for incremental attainment of
                     a level of achievement between the Threshold, Target and Maximum
                     levels
                  

                  The determination of whether a Criteria has been achieved will be
                     made in a manner that avoids any distortion resulting from dilution
                     occurring in connection with acquisitions and share offerings and to
                     negate the effects of changes in accounting rules and standards.
                  

                  Tanger Factory Outlet Centers, Inc.
Year End 2010 Bonus Targets for Senior Management
                  

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

                        	 	 	 
	 	 	 	 	Threshold	 	 	Target	 	 	Maximum	 
	 	Percentage of base salary	 	 	40%	 	 	50%	 	 	60%	 
	 	(1) Growth in FFO per share (20%)	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	FFO per share	 	 	$2.60	 	 	$2.65	 	 	$2.70	 
	 	(2) Achievement of Strategic Objectives (20%)	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	4% - Lease renewal rate of the square feet expiring for centers in
                              which we have an ownership interest (excluding tenants not renewed at
                              management's request for strategic remerchandising reasons)
                           	 	 	85%	 	 	86%	 	 	87%	 
	 	 	 	 	4% - Minimum increase in base rent per square foot (cash basis) on
                              renewed space for centers in which we have an ownership interest
                           	 	 	6%	 	 	7%	 	 	10%	 
	 	 	 	 	4% - Minimum increase in base rent per square foot (cash basis) on
                              re-leased space for centers in which we have an ownership interest
                           	 	 	9%	 	 	15%	 	 	20%	 
	 	 	 	 	4% - Minimum year end occupancy rate for centers in which we have an
                              ownership interest
                           	 	 	95%	 	 	96%	 	 	97%	 
	 	 	 	 	4% - Increase ( - decrease) in same center comparable traffic for
                              centers in which we have an ownership interest
                           	 	 	2%	 	 	3%	 	 	4%	 
	 	(3) Payout Ratio Targets (20%)	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	10% - FFO payout ratio	 	 	59%	 	 	58%	 	 	57%	 
	 	 	 	 	10% - FAD payout ratio	 	 	68%	 	 	66%	 	 	65%	 
	 	(4) Total Shareholder Return (share price appreciation plus
                              dividends) relative to REIT Index and in total (20%)
                           	 

               

            

         

         			

         			

         			

      

      
         
            
               
                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 	Threshold	 	 	Target	 	 	Maximum	 
	 	 	 	 	10% - One year performance relative to all Mall and Shopping Center
                           Equity REIT's with a market capital of $1.0 billion or more as listed
                           in the KeyBanc "Leaderboard" report dated 12/31/09 [companies to be
                           included are [Companies to be included are Simon, Macerich Co,
                           Taubman, CBL & Assoc., Kimco, Federal Realty, Regency Centers,
                           Weingarten Realty) (SKT rank in total return)]
                        	 	 	Top 30%	 	 	Top 25%	 	 	Top 15%	 
	 	 	 	 	10% - Total return to shareholders (price appreciation and dividends)	 	 	5%	 	 	6%	 	 	8%	 
	 	(5) Other targets - Capital Markets/Outparcel Sales (20%)	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Number of the following to get target multiple:	 	 	2 of 5 objectives	 	 	3 of 5 objectives	 	 	5 of 5 objectives	 
	 	 	 	 	-	 	 	Extend or receive commitments to extend our lines of credit beyond June 2011	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	-	 	 	Extend or receive commitment to extend or refinance our $235 million
                           term loan due in June 2011
                        	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	-	 	 	Obtain same center NOI increase of at least 1.0%	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	-	 	 	Enter into a Purchase & Sale agreement on one potential new site	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	-	 	 	Complete majority of the 2010 initiatives as set out in the strategic
                           plan as presentation to the Board of Directors
                        	 	 	 	 	 	 	 	 	 	 

                  (A) 2010 Targets are based on existing portfolio only
(B) Bonus multiple relative to target done on a prorate basisExhibit 10.1 

THIS NOTE HEREOF HAS NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR
ANY APPLICABLE STATE SECURITIES LAWS. THIS NOTE HAS BEEN ACQUIRED FOR
INVESTMENT PURPOSES ONLY AND NOT WITH A VIEW FOR DISTRIBUTION OR RESALE, AND
MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED UNLESS IT HAS BEEN
SO REGISTERED OR AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE. 

CONVERTIBLE PROMISSORY NOTE

	
  

 	
  

 
	
 Principal
 Amount: $29,412.00

 	
 Issue Date:
 August 17, 2010 

 

FOR VALUE RECEIVED,
the undersigned, Signature Exploration &
Production Corp, a Delaware corporation (the “Borrower” or the “Company”), hereby promises to pay
to the order of _________________________. (together with each of their said
heirs, personal representatives, successors and assigns, and any such bearer,
being hereinafter referred to collectively as the “Holder”), on or before August 17, 2011 (the “Maturity Date”), the principal sum
of Twenty-Nine Thousand Four Hundred Twelve
Dollars ($29,412.00) (this “Note”),
together with interest thereon at the rate set forth herein (the “Loan”). For purposes of this Note,
“Borrower” shall mean all successors in interest and assignees, including,
without limitation, pursuant to a merger, consolidation, reorganization,
recapitalization or other similar restructuring event (collectively, a “Reorganization”), and all
endorsers, sureties and guarantors and any other person liable or to become
liable with respect to the Loan. 

          1. Original
Issue Discount. This Note is issued with an original issue discount of 15%
upon funding of $25,000 in cash by Holder to Borrower. 

          2. Payment
of Principal and Interest. The Borrower shall pay the Holder all accrued
interest shall be paid on the Maturity Date. 

          3. Conversion. At any time while
this Note is outstanding, the Holder may convert any portion of this Note that
is outstanding, whether such portion represents principal or interest, into
shares of common stock of the Company (the “Conversion
Shares”) at a price equal to $0.10 (the “Conversion Price”). The Holder
shall submit a notice of conversion (the “Notice
of Conversion”) to the Company indicating the amount of the Note
being converted, the number of shares issuable upon such conversion, and where
the Conversion Shares should be delivered. The Company must deliver the
Conversion Shares to the Holder no later than the third (3rd)
business day after the date that Holder submits the Notice of Conversion to the
Company (such third business day is hereinafter referred to as the “Share Delivery Date”). 

          4. Holder’s Conversion Limitations.
The Company shall not effect any conversion of this Note, and a Holder shall
not have the right to convert any portion of this Note, to the extent that
after giving effect to the conversion set forth on the applicable Notice of
Conversion submitted by the Holder, the Holder (together with the Holder’s affiliates,
and any Persons acting as a group together with the Holder or any of the
Holder’s affiliates) would beneficially own in excess of the Beneficial
Ownership Limitation (as defined below). For purposes of the foregoing
sentence, the number of shares of common stock beneficially owned by the Holder
and its affiliates shall include the number of shares of common 

stock issuable upon conversion of this Note with respect to which such
determination is being made, but shall exclude the number of shares of common
stock which are issuable upon (i) conversion of the remaining, unconverted
principal amount of this Note beneficially owned by the Holder or any of its
affiliates and (ii) exercise or conversion of the unexercised or unconverted
portion of any other securities of the Company subject to a limitation on
conversion or exercise analogous to the limitation contained herein (including,
without limitation, any other convertible securities or warrants) beneficially
owned by the Holder or any of its affiliates. Except as set forth in the
preceding sentence, for purposes of this Section 4, beneficial ownership shall
be calculated in accordance with Section 13(d) of the Exchange Act and the
rules and regulations promulgated thereunder. To the extent that the limitation
contained in this Section 4 applies, the determination of whether this Note is
convertible (in relation to other securities owned by the Holder together with
any affiliates) and of which principal amount of this Note is convertible shall
be in the sole discretion of the Holder, and the submission of a Notice of
Conversion shall be deemed to be the Holder’s determination of whether this
Note may be converted (in relation to other securities owned by the Holder
together with any Affiliates) and which principal amount of this Note is
convertible, in each case subject to the Beneficial Ownership Limitation. To
ensure compliance with this restriction, the Holder will be deemed to represent
to the Company each time it delivers a Notice of Conversion that such Notice of
Conversion has not violated the restrictions set forth in this paragraph and
the Company shall have no obligation to verify or confirm the accuracy of such
determination. In addition, a determination as to any group status as
contemplated above shall be determined in accordance with Section 13(d) of the
Exchange Act and the rules and regulations promulgated thereunder. For purposes
of this Section 4, in determining the number of outstanding shares of common
stock, the Holder may rely on the number of outstanding shares of common stock
as stated in the most recent of the following: (i) the Company’s most recent
periodic or annual report filed with the Commission, as the case may be, (ii) a
more recent public announcement by the Company, or (iii) a more recent written
notice by the Company or the Company’s transfer agent setting forth the number
of shares of Common Stock outstanding. Upon the written or oral request of a
Holder, the Company shall within two Trading Days confirm orally and in writing
to the Holder the number of shares of common stock then outstanding. In any
case, the number of outstanding shares of Common Stock shall be determined
after giving effect to the conversion or exercise of securities of the Company,
including this Note, by the Holder or its affiliates since the date as of which
such number of outstanding shares of common stock was reported. The “Beneficial
Ownership Limitation” shall be 9.99% of the number of shares of the Common
Stock outstanding immediately after giving effect to the issuance of shares of
common stock issuable upon conversion of this Note held by the Holder. The
Holder, upon not less than 61 days’ prior notice to the Company, may waive the
Beneficial Ownership Limitation and the Beneficial Ownership Limitation shall
no longer apply as of the 61st day after such notice is delivered to
the Company. The limitations contained in this paragraph shall apply to a
successor holder of this Note. 

          5.
Warrant; Adjustments to Conversion and Exercise Prices.

	
  

 	
  

 	
  

 
	
  

 	
 a.

 	
 Warrant. Simultaneously with the issuance of
 this Note, Borrower shall issue to the Holder a 5-year warrant (the “Warrant”) to purchase such number
 of shares of common stock of the Company equal to the number of Conversion
 Shares issuable upon full conversion of the principal amount of this Note,
 exercisable at a price equal to $0.15 (the “Exercise
 Price”), subject to full-ratchet anti-dilution adjustment as
 more fully described in the form of Warrant to be provided by Holder and
 signed by the Company. 

 
	
  

 	
  

 	
  

 
	
  

 	
 b.

 	
 Adjustments to Previously Issued Notes and Warrants.
 The Company hereby acknowledges that (i) the conversion price of all other
 notes issued by the Company to the Holder shall be reduced to $0.10 per
 share, pursuant to the anti-dilution provisions therein, and (ii) the
 conversion price of all other warrants issued by Company to the Holder (the “Original Warrants”) shall be
 reduced to $0.10 per share, pursuant to the anti-dilution provisions 

 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 therein. The Company further acknowledges that, pursuant to the
 anti-dilution provisions therein, the number of shares of common stock
 issuable upon exercise of the Original Warrants shall be increased such that
 the aggregate exercise price payable thereunder, after taking into account
 the reduction in the exercise price to $0.10 per share, shall be equal to the
 aggregate exercise price of the Original Warrants prior to the adjustment
 herein.

 

          6. Acknowledgement by the Holder.
The Holder hereby represents and warrants to the Borrower that the Holder has
sufficient knowledge and experience of financial and business matters so that
the Holder is able to evaluate the merits and risks of purchasing this Note and
the Holder has had substantial experience in previous private and public purchases
of securities. The Holder is an “accredited investor” as that term is defined
in Rule 501 of Regulation D under the Securities Act. 

          7. Anti-dilution Adjustment. If
at any time this Note is outstanding, the Company issues common stock or securities
convertible into or exercisable for common stock at a price per share that is
lower than the Conversion Price (a “Dilutive
Issuance”), or adjusts the price per share at which any of its
outstanding securities can be converted into or exercised for common stock to a
price that is lower than the Conversion Price (a “Dilutive Adjustment”), the Conversion Price shall
automatically be adjusted to equal the lower price granted in such Dilutive
Issuance or Dilutive Adjustment (the “Adjusted
Conversion Price”), but the Adjusted Conversion Price may not be
adjusted below $0.01. The Company must provide written notice to the Holder of
a Dilutive Issuance or a Dilutive Adjustment (the “Adjustment Notice”) within three (3) trading days of
such occurrence, provided however that the Adjusted Conversion Price shall be
deemed to be in effect automatically upon any Dilutive Issuance or Dilutive
Adjustment regardless of whether the Company provides the Adjustment Notice.
The Company must honor any conversions requested by the Holder at the Adjusted
Conversion Price following any Dilutive Issuance or Dilutive Adjustment. 

          7a. No
adjustment to the Conversion Price will be made (i) upon the exercise of any
warrants, options or convertible securities granted, issued and outstanding on
the date of issuance of this Note; (ii) upon the grant or exercise of any stock
or options which may hereafter be granted to or exercised by any employee or
consultant directly or under any employee benefit plan, stock option plan or restricted
stock plan of the Company now existing or to be implemented in the future, so
long as the issuance of such stock or options is approved the Board of
Directors of the Company; or (iii) upon the exercise of the Warrants. 

          8. Piggyback Registration Rights.
If at any time this Note is outstanding, the Company files a registration
statement with the United States Securities and Exchange Commission (the “Registration Statement”), the
Company must include the shares underlying this Note and the Warrant in such
Registration Statement. The Company shall notify the Holder of its intent to
file such Registration Statement at least thirty (30) days prior the filing of
the Registration Statement and provide the Holder an opportunity to review and
comment on such Registration Statement. 

          9. Event of Default. Any of the
following shall constitute an “Event of
Default” under this Note, and shall give rise to the remedies
provided in Section 10 herein: 

	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 The failure by the Borrower to pay the Indebtedness or otherwise to
 satisfy when due, as contemplated in Section 2; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 The failure by the Borrower to deliver the Conversion Shares by the
 Share Delivery Date, as contemplated in Section 3; 

 

	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 The failure by the Borrower to provide the Adjustment Notice or honor
 conversions at the Adjusted Conversion Price following a Dilutive Issuance or
 Dilutive Adjustment, as contemplated in Section 7; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 The failure by the Borrower to timely file and keep current periodic
 reports with the SEC; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

 	
 If the Borrower: (i) makes a general assignment for the benefit of
 creditors; (ii) is adjudicated a bankrupt or insolvent; (iii) files a
 voluntary petition in bankruptcy; (iv) takes advantage, as against its
 creditors, of any bankruptcy law or statute of the United States of America
 or any state or subdivision thereof now or hereafter in effect; (v) has a
 petition or proceeding filed against it under any provision of any bankruptcy
 or insolvency law or statute of the United States of America or any state or
 subdivision thereof, which petition or proceeding is not dismissed within 30
 days after the date of the commencement thereof; (vi) has a receiver,
 liquidator, trustee, custodian, conservator, sequestrator or other such
 person appointed by any court to take charge of its affairs or assets or
 business and such appointment is not vacated or discharged within 30 days
 thereafter; or (vii) takes any action in furtherance of any of the foregoing;
 

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 Any merger, liquidation, dissolution or winding up of the Borrower or
 its business or any sale of all or substantially all of the Borrower’s
 capital stock or assets; provided,
 however, the merger or
 sale of the Borrower with a successor entity that acknowledges and expressly
 assumes in writing the Borrower’s obligations hereunder shall not be
 considered an “Event of Default” for purposes hereof; or 

 
	
  

 	
  

 	
  

 
	
  

 	
 (g)

 	
 The Borrower attempts to effectuate or effectuates a reverse stock
 split of its common stock without first obtaining the prior written consent
 of the Holder. 

 

          10. Remedies on Default. If any
Event of Default shall occur and be continuing for a period of seven (7)
calendar days, the Holder shall, in addition to any and all other available
rights and remedies, have the right, at the Holder’s option unless such Event
of Default shall have been cured or waived in writing by the Holder (which
waiver shall not be deemed to be a waiver of a subsequent default), to: (a)
declare the entire unpaid principal balance of this Note, together with all
interest accrued thereon and all other sums due by the Borrower hereunder (the “Default Amount”),; and (b) pursue
any and all available remedies for the collection of such principal and
interest to enforce its rights as described herein; and in such case the Holder
may also recover all costs of suit and other expenses in connection therewith,
including reasonable attorney’s fees for collection and the right to equitable
relief (including, but not limited to, injunctions) to enforce the Holder’s rights
as set forth herein. 

          11. Certain Waivers. Except as
otherwise expressly provided in this Note, the Borrower hereby waives
diligence, demand, presentment for payment, protest, dishonor, nonpayment and
default with respect to the Indebtedness evidenced hereby. The Borrower hereby
expressly agrees that this Note, or any payment hereunder, may be extended,
modified or subordinated (by forbearance or otherwise) from time to time,
without in any way affecting the liability of the Borrower. 

          12. Waivers and Amendments;
Cumulative Remedies. Neither any provision of this Note nor any performance
hereunder may be waived orally, but only by an agreement in writing and signed
by the party against whom enforcement of any waiver or discharge is sought. No
right or remedy conferred upon the parties under this Note is intended to be
exclusive of any other right or remedy contained herein or in any instrument or
document delivered in connection herewith, and every such right or remedy shall

be cumulative and shall be in addition to every other such right or
remedy contained herein and/or now or hereafter existing at law or in equity or
otherwise. 

          13. Governing Law. This Note
shall be deemed to be a contract made under the laws of the State of New York
and shall be governed by, and construed in accordance with, the laws of the
State of New York, without giving effect to the principles of conflicts of law.
If either party shall commence an action or proceeding to enforce any provision
of this Note, then the prevailing party in such action or proceeding shall be
reimbursed by the other party for its attorneys’ fees and other costs and
expenses incurred with the investigation, preparation and prosecution of such
action or proceeding. 

          14. Consent to Jurisdiction and
Service of Process. The Borrower by execution, and the Holder by
acceptance, hereof each consent to the jurisdiction of any federal district
court in the State of New York having competent jurisdiction. The Borrower waives
personal service of any summons, complaint or other process in connection with
any such action or proceeding and agrees that service thereof may be made, as
the Holder may elect, by certified mail directed to the Borrower at the
location provided for in Section 16 hereof, or, in the alternative, in any
other form or manner permitted by law. 

          15. Additional Documents. From
time to time the Holder will execute and deliver to the Borrower such
additional instruments as the Borrower may reasonably request to effectuate the
purposes of this Note. 

          16. Notices. All notices and
other communications required or permitted hereunder shall be in writing and
shall be mailed by United States first-class mail, postage prepaid, or
delivered personally by hand or by nationally recognized overnight courier or
sent via facsimile addressed to: 

If to the Borrower: 

If to the Holder: 

or at such other address as shall have been furnished to the other
party in writing. All such notices and other written communications shall be
effective: (a) if mailed, five days after mailing; (b) if delivered, upon
delivery; and (c) if sent via facsimile, upon confirmation of receipt. 

          17. Wiring Instructions. Any
amount wired to the Borrower hereunder shall be wired in accordance with the
following wiring instructions: 

          Bank
Name:

          Account Name:

          Account Number:

          Routing number: 

          18. Severability. If any
provision of this Note is prohibited or unenforceable in any jurisdiction, it
shall be ineffective in such jurisdiction only to the extent of such
prohibition or unenforceability, and such prohibition or unenforceability shall
not invalidate the balance of such provision to the extent it is not prohibited
or unenforceable nor the remaining provisions hereof, nor render unenforceable
such provision in any other jurisdiction. 

          19. Assignment. This Note shall
inure to the benefit of, and shall be binding upon, the Borrower and the Holder
and their respective successors and permitted assigns. Neither party hereto may
assign any of its rights or obligations hereunder without the prior written
consent of the other party. 

          20. Counterparts. This Agreement
may be executed in any number of counterparts, each of which shall be deemed an
original, and all of which together shall constitute one and the same
instrument. A facsimile signature of any party shall be considered to have the
same binding legal effect as an original signature. 

          21. No Stockholder Rights.
Nothing contained in this Note shall be construed as conferring upon the Holder
or any other person the right to vote or to consent or to receive notice as a
stockholder in respect of meeting of stockholders for the election of directors
of the Borrower or any other matters or any rights whatsoever as a stockholder
of the Borrower; and no dividends shall be payable or accrued in respect of
this Note. 

          22. JURY WAIVER. THE BORROWER BY
EXECUTION, AND THE HOLDER BY ACCEPTANCE, HEREOF EACH CONSENT THAT IN ANY CIVIL
ACTION, COUNTERCLAIM, OR PROCEEDING, WHETHER AT LAW OR IN EQUITY, WHICH ARISES
OUT OF, CONCERNS, OR RELATES TO THIS NOTE, ANY AND ALL TRANSACTIONS
CONTEMPLATED BY THIS NOTE, THE PERFORMANCE OF THIS NOTE, OR THE RELATIONSHIP
CREATED BY THIS NOTE, WHETHER SOUNDING IN CONTRACT, TORT, STRICT LIABILITY, OR
OTHERWISE, TRIAL SHALL BE TO A COURT OF COMPETENT JURISDICTION AND NOT TO A
JURY. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY. ANY PARTY MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS NOTE WITH
ANY COURT, AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES TO THIS NOTE OF
THE WAIVER OF THEIR RIGHT TO A TRIAL BY JURY. 

[SIGNATURE
PAGE]

          IN WITNESS WHEREOF, the undersigned has
executed and delivered this Note on and as of the date first set forth above. 

Signature Exploration & Production Corp,
a Delaware corporation, as Borrower 

	
  

 	
  

 	
  

 
	
 By

 	
  

 	
  

 
	
  

 	 

 	
  

 
	
 Name: Steven Weldon

 	
  

 
	
 Title: Chief Executive Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]