Document:

mhgc-ex1033_163.htm

Exhibit 10.33

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

This Amended and Restated Employment Agreement (this “Agreement”), dated January 14, 2016 (the “Execution Date”), is entered into between Morgans Hotel Group Co., a Delaware corporation (the “Company”), and Meredith L. Deutsch (the “Executive”) (collectively, the “Parties” and each, a “Party”). In addition to the terms defined elsewhere herein, initial capitalized terms have the meanings given to them in Section 28.

WHEREAS, the Executive has performed the duties of Executive Vice President & General Counsel and Corporate Secretary of the Company, subject to the terms and conditions set forth in that certain Employment Agreement, dated May 5, 2014 between the Company and the Executive (the “Prior Agreement”).

WHEREAS, the Company and Executive desire to amend and restate the Prior Agreement and modify the terms and conditions of Executive’s continued employment with the Company; and 

WHEREAS, upon the commencement of the Term, the Prior Agreement shall cease to have any further legal force or effect whatsoever.

NOW, THEREFORE, in consideration of the mutual promises, covenants and conditions contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 

	
1
	
Position. During the Employment Term, the Executive will serve as the Executive Vice President & General Counsel and Corporate Secretary of the Company. The employment relationship between the Company and the Executive will be governed by the applicable written general employment policies and practices of the Company contained or referred to in the Morgans Hotel Group Corporate Handbook (the “Handbook”), as well as those written general polices relating to ethics and business conduct, confidential information, expense reimbursement and avoidance of conflicts (together, the “Company Policies”), a copy of which has been delivered to the Executive, except that when any express term of this Agreement is in conflict with the Company Policies, such term of this Agreement will control.

	
2
	
Term. The Executive’s employment under this Agreement will commence on January 14, 2016 (the “Effective Date”) and shall continue until terminated by either party as provided in this Agreement (the “Employment Term”). 

	
3
	
Duties of the Executive. The Executive will report directly to the Company’s Chief Executive Officer or the President or Chairman of the Company if the CEO so designates either the President or Chairman to serve in this role (the “Supervisor”), and have duties, responsibilities and authorities commensurate with the Executive’s title and position.

	
 
	
3.1
	
During the Employment Term, the Executive will devote the Executive’s best efforts, full attention and energies during business hours to the business of the Company and the performance of any of the Executive’s duties as set forth herein.

	
 
	
3.2
	
So long as such activities do not involve a breach of this Agreement and do not interfere with the performance of the Executive’s duties hereunder, the Executive may participate in any governmental, educational, charitable or other community affairs during the Employment Term and, subject to the prior approval of the Supervisor in the Supervisor’s discretion, serve as a member of the governing board of any such organization. The Executive may retain all fees and other compensation from any such service, and the Company will not reduce the Executive’s compensation by the amount of such fees. Notwithstanding anything herein to the contrary, the Executive may not accept any position during the Employment Term with a for-profit enterprise without the prior written approval of the Supervisor in the Supervisor’s discretion. 

	
4
	
Compensation.

	
 
	
4.1
	
Base Salary. During the Employment Term, the Company will pay to the Executive a base salary per annum equal to $400,000, which will be reviewed annually, but may not be decreased except in the event of a reduction in salaries of all Company C-suite senior executives and at a percentage reduction being applied to all C-suite senior executives; provided, however, that in no event shall the Executive’s base salary be reduced to less than $400,000 (as in effect from time to time, the “Base Salary”). The Base Salary will be payable at the times and in the manner consistent with the Company’s policies regarding compensation of the Company’s executives generally, but in no event less frequently than monthly.

	
 
	
4.2
	
Annual Discretionary Bonus. With respect to each calendar year during the Employment Term, the Executive will be eligible to receive an annual incentive bonus in accordance with, and subject to, the terms and conditions of the Company’s applicable annual incentive bonus program applicable to similarly situated senior executive officers, in the sole discretion of the Company (the “Annual Discretionary Bonus”). During the Employment Term, the Executive’s target Annual Discretionary Bonus will be 50% of the Executive’s Base Salary (the “Target Bonus”), subject to the achievement of applicable performance objectives delivered to the Executive in written form at the commencement of the applicable fiscal year, and the Executive’s Annual Discretionary Bonus could potentially be as high as an amount to be set annually by the Company’s Compensation Committee if Executive exceeds the attainment of specific targets that will be set by such Compensation Committee; provided, however, such out-performance amount target amount shall be set at not less than 75% of the Executive's Base Salary. The Company shall pay the Annual Discretionary Bonus within 75 days of the end of the applicable fiscal year. Subject to Sections 6.2 and 6.3 below, Executive must be employed by the Company on the date bonuses are paid to Company employees to be eligible to receive any such discretionary bonus.

	
 
	
4.3
	
Equity. Executive will be eligible to participate in the Company’s equity-based incentive plan applicable to similarly situated executive officers in amounts and on terms and conditions determined by the Company in its sole discretion and in accordance with the various plan documents and award agreements governing these 

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awards. In addition, the Morgans Hotel Group Co. Board of Directors (the “Board”), or applicable committee thereof, has previously granted a one-time grant of Morgans Hotel Group Co. restricted stock units (“RSUs”), having a grant date value of $54,000, to Executive, which RSUs vested 1/3 on December 31, 2014 and 1/3 on December 31, 2015 and will continue to vest 1/3 on the third anniversary of the grant date. 

	
5
	
Benefits.

	
 
	
5.1
	
Employee Benefit Plans. During the Employment Term, the Executive will be eligible to participate in the Company-sponsored group health, major medical, dental, vision, life insurance, 401(k) and other employee welfare benefit plans applicable to similarly situated executive officers (the “Employee Benefit Plans”). The Executive acknowledges that the Company reserves the right to amend or terminate any Employee Benefit Plan(s) at any time in its discretion, subject to the terms of such Employee Benefit Plan(s) and applicable law.

	
 
	
5.2
	
Paid Time Off. During the Employment Term, the Executive will be eligible to participate in the Company’s vacation, holiday and sick, personal and other leave policies as are provided under the Handbook applicable to similarly situated executive officers. During each full fiscal year during the Employment Term, the Executive will be eligible to take five (5) weeks of paid vacation, three (3) personal days and six (6) sick days. Paid time off will not carry over from one fiscal year to the next, other than as permitted in accordance with Company Policies. 

	
 
	
5.3
	
Expenses. During the Employment Term, the Company will pay or reimburse the Executive for reasonable and necessary business expenses incurred by the Executive during the Employment Term in connection with the Executive’s duties on behalf of the Company in accordance with the Company’s travel and expense policy, as it may be amended from time to time, or other applicable Company Polices, following submission by the Executive of reimbursement expense forms in a form consistent with such expense policies. The Executive shall also be entitled to reimbursement of fees and expenses incurred in connection with maintaining Executive’s professional law license in the State of New York or any other State in the United States where the Company may relocate.

	
6
	
Termination.

	
 
	
6.1
	
Termination by the Company for Cause or Resignation by the Executive Without Good Reason. If, during the Employment Term, the Executive’s employment is terminated by the Company for Cause or the Executive resigns without Good Reason, the Executive will not be eligible to receive Base Salary, to receive an Annual Discretionary Bonus or to participate in any Employee Plans with respect to future periods after the date of such termination or resignation, except for the right to receive: (i) accrued but unpaid Base Salary through the date of termination of employment, to be paid in accordance with the Company’s normal payroll practice; (ii) up to five (5) weeks of accrued unused vacation time, to be paid in 

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accordance with the Company’s normal payroll practice; (iii) any unreimbursed business expenses incurred by the Executive prior to the date of termination, to be paid in accordance with the provisions of Section 5.3; and (iv) all compensation and benefits payable to the Executive under the terms of the Employee Benefit Plans in which the Executive participated prior to the date of termination of employment, in accordance with the terms of such Employee Plans (the items in clauses (i) through (iv) together, the “Accrued Compensation and Benefits”). 

	
 
	
6.2
	
Termination by the Company Without Cause or Resignation by the Executive for Good Reason. If during the Employment Term, the Executive’s employment is terminated by the Company without Cause or the Executive terminates employment for Good Reason (in each case other than due to the Executive’s death or Disability), the Executive will be entitled to receive from the Company, in full satisfaction of the Executive’s rights and any benefits the Executive is entitled to under this Agreement, any other employment arrangement with the Company Group or otherwise, subject to Section 6.7 for the benefits described in clauses (ii) through (viii) below, the following: (i) the Accrued Compensation and Benefits; (ii) twelve (12) months of salary continuance at the same rate as the Base Salary at the time of termination, less applicable withholdings and deductions; (iii) a one-time lump sum payment in an amount equivalent to twelve (12) times the amount that the Company contributes to the health insurance premiums of the Executive per month at the time of the Executive’s termination, less applicable withholdings and deductions; (iv) accelerated vesting of any portion of the RSUs described in Section 4.3 that remain unvested and outstanding as of the Executive’s termination date (which equity-based awards or RSUs thereafter will be settled and payable); (v) accelerated vesting of a pro rata portion of any other equity-based awards (other than the RSUs described in Section 4.3) that are subject to solely time-based vesting conditions and are held by Executive at the time of termination (the “Time Vesting Equity Awards”), determined by multiplying the number of shares of Company common stock subject to each such Time Vesting Equity Award by a fraction, the numerator of which is the number of days elapsed since the beginning of the vesting period through the Date of Termination and the denominator of which is the number of total days in the vesting period; (vi) continued eligibility for vesting of a pro rata portion of any other equity-based awards (other than the RSUs described in Section 4.3 and any Time Vesting Equity Awards) that are subject to performance-based vesting conditions and are held by Executive at the time of termination (the “Performance Vesting Equity Awards”), with such pro-rata portion determined consistent with clause (v) above, and with the ultimate amount of any such Performance Vesting Equity Awards vesting based upon application of any applicable performance metrics determined by the Company in its sole discretion with respect to such Performance Equity Awards, and otherwise settled in accordance with the applicable award agreement governing such Performance Vesting Equity Awards;  (vii) an amount equal to a pro rata share of the Executive’s annual bonus for the year of termination determined by multiplying the annual bonus by a fraction, the numerator of which is the number of days elapsed in the year through the effective date of Executive’s termination and the denominator of which is 365, and based upon application of the performance metrics determined 

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by the Company in its sole discretion with respect to such bonus, and otherwise payable at the same time that annual bonuses in respect of the applicable calendar year are otherwise paid to employees of the Company (the “Pro-Rata Bonus”); and (viii) in the event that the effective date of Executive’s termination occurs after the end of a calendar year worked by Executive and prior to payment of bonuses for that calendar year, the Company will pay Executive her bonus for such calendar year (if any) calculated based upon application of the performance metrics determined by the Company in its sole discretion with respect to such bonus.  

	
 
	
6.3
	
Change in Control. In the event that there is a Change in Control of the Company and the Company or its successor terminates Executive’s employment without Cause, or Executive resigns for Good Reason, in either case within twelve (12) months following the Change in Control, then the Executive will be entitled to receive from the Company, in full satisfaction of the Executive’s rights and any benefits the Executive is entitled to under this Agreement, any other employment arrangement with the Company Group or otherwise, subject to preconditions set forth in Section 6.6 (except for the Accrued Compensation and Benefits, which are not subject to these preconditions), the following: (i) the amounts and items set forth in clauses (i)-(iv) and clauses (vii)-(viii) in Section 6.2 above; (ii) in the event of any such termination following the one (1) year anniversary of such Change in Control, treatment of the Executive’s equity awards as set forth in Sections 6.2(v) and 6.2(vi) above; (iii) solely in the event of any such termination during the one (1) year period following the Change in Control and in the event that the vesting of any equity awards held by Executive at the time of the Change in Control are not accelerated in connection with such Change in Control, full vesting of such equity awards (or any replacement equity awards issued in respect thereof). 

	
 
	
6.4
	
Termination by Death. If the Executive dies during the Employment Term, the Executive’s employment and this Agreement will terminate upon the Executive’s death and the Executive’s beneficiary or, if none, the Executive’s estate, will be entitled to receive (i) the Accrued Compensation and Benefits from the Company, (ii) accelerated vesting of a pro rata portion of the Time Vesting Equity Awards, determined by multiplying the number of shares of Company common stock subject to each such Time Vesting Equity Award by a fraction, the numerator of which is the number of days elapsed since the beginning of the vesting period through the Date of Termination and the denominator of which is the number of total days in the vesting period; and (iii) six (6) months of salary continuance at the same rate as the Base Salary, less applicable withholdings and deductions.

	
 
	
6.5
	
Termination by Disability. If the Executive becomes Disabled during the Employment Term, the Executive’s employment will terminate upon receipt by the Executive of a notice to terminate for Disability setting forth in reasonable detail the facts and circumstances for the termination for Disability. The Executive will be entitled to receive from the Company the following: (i) the Accrued Compensation and Benefits; (ii) accelerated vesting of a pro rata portion of the Time Vesting Equity Awards, determined by multiplying the number of shares of Company common stock subject to each such Time Vesting Equity Award by a 

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fraction, the numerator of which is the number of days elapsed since the beginning of the vesting period through the Date of Termination and the denominator of which is the number of total days in the vesting period; and (iii) six (6) months of salary continuance at the same rate as the Base Salary then in effect, less applicable withholdings and deductions. 

	
 
	
6.6
	
Payment Timing & Release Requirement. Continued payment of Base Salary amounts pursuant to Sections, 6.2, 6.3 or 6.5 will be made in equal installments during the salary continuance period set forth in Sections 6.2, 6.3 and 6.5 above, commencing on the date of the Executive’s termination of employment at such times as Base Salary is customarily paid to the Company’s employees, provided that no salary continuance installment will be paid prior to the first payroll date that is coincident with or next following the 60th day following Executive’s termination date and any installment that otherwise would have been paid during such 60 day period will instead be paid with the first installment paid to the Executive, and provided further that the Company’s obligation to make any such payments is conditioned upon the Executive first executing and delivering to the Company an effective release, substantially in the form attached hereto as Exhibit A (the “Release”), within 59 days after the date of termination of employment, with all periods for revocation therein having expired. Subject to the effectiveness of a timely Release as provided in this Section 6.6, any lump-sum cash payment to be made pursuant to Section 6.2 or 6.3 will be made on the first payroll date that occurs on or immediately following the 60th day following the Executive’s termination date, provided that any unpaid bonus amount (including, any Pro-Rata Bonus) will be paid when annual bonuses are paid to Company employees if later, but in no event will any such bonus payment be made later than the end of the calendar year in which Executive’s termination of employment occurs.

	
 
	
6.7
	
Forfeiture. Notwithstanding the foregoing, any right of the Executive to receive termination payments and benefits hereunder will be forfeited if the Executive breaches Sections 8, 9, or 10; provided that, before invoking this paragraph, the Company will provide the Executive a reasonable time (not to exceed 30 days) to respond to such assertion and, to the extent curable, a right to cure such breach within such time. For the avoidance of doubt, any reasonable time to cure a breach referenced as provided in this Section 6.7 shall not extend the payment dates referenced in Section 6.6. 

	
7
	
Duty of Loyalty. During the course, and as a result, of the Executive’s employment with the Company, the Executive will have access to Confidential Information; the opportunity to gain close knowledge of, and possible influence over, customers, suppliers, independent contractors and employees of the Company Group; possess in some measure the goodwill of the Company Group; and come to possess an intimate knowledge of the business of the Company Group, including all of its policies, methods, personnel and operations.

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8
	
Confidentiality. 

	
 
	
8.1
	
The Executive acknowledges that, in the course of the Executive’s employment, the Executive will become familiar with the trade secrets, confidential information and other proprietary information concerning the Company Group, including projects, promotions, marketing plans and strategies, business plans or practices, business operations, employees, employment pay information and data, research and development, intellectual property, trademarks, customer lists, pricing information, cost data, compensation and fee information, accounting and financing data, and methods of design, marketing, service or procurement, regardless of whether such information has been reduced to documentary form, which the Company and/or an Affiliate treats as confidential or proprietary (collectively, the “Confidential Information”).

	
 
	
8.2
	
The Executive acknowledges and agrees that any and all Confidential Information will be received and held by the Executive in a confidential capacity. The Executive will not, during the Employment Term and/or at any time thereafter, in any manner, whether directly or indirectly, knowingly use for the Executive’s own benefit or the benefit of any other Person, or disclose, divulge, render or offer, any Confidential Information, except on behalf of the Company in the course of the proper performance of the Executive’s duties hereunder.

	
 
	
8.3
	
The Executive’s obligation of confidentiality will survive, regardless of any other breach of this Agreement or any other agreement, by any Party, until and unless such Confidential Information has become, through no fault of the Executive, generally known to the public. For purposes of this paragraph, “generally known” means known throughout the domestic U.S. industry or the appropriate foreign country’s or countries’ industry. In the event that the Executive is required by law, regulation, or court order to disclose any of the Confidential Information, the Executive will promptly notify the Company prior to making any such disclosure to facilitate the Company Group seeking a protective order or other appropriate remedy from the proper authority at its sole cost and expense. The Executive further agrees to cooperate with the Company Group in seeking such order or other remedy (at the Company Group’s sole cost and expense) and that, if the Company is not successful in precluding the requesting legal body from requiring the disclosure of the Confidential Information, the Executive will furnish only that portion of the Confidential Information that is legally required, and the Executive will cooperate as reasonably requested by the Company in its efforts and at its sole expense to exercise all reasonable legal efforts (at the Company Group’s sole cost and expense) to obtain reliable assurances that confidential treatment will be accorded to the Confidential Information.

	
 
	
8.4
	
The Executive’s obligations under this Section 8 are in addition to, and not in limitation of, all other obligations of confidentiality under the Company Group’s policies and applicable law and regulatory guidance.

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9
	
Restrictive Covenants. 

	
 
	
9.1
	
Non-Interference with Business Relationships.

	
 
	
9.1.1
	
The Executive acknowledges that (A) the Executive’s services are of special, unique and extraordinary value to the Company Group and (B) the Company Group’s ability to accomplish its purposes and to successfully compete in the marketplace depends substantially on the skills and expertise of the Executive. The Executive acknowledges and agrees that the Company Group would be irreparably damaged if the Executive were to not devote substantially all of the Executive’s business time and efforts to the business and affairs of the Company Group during the Employment Term.

	
 
	
9.1.2
	
The Executive agrees that, during the Employment Term, and for a period 12 months after the termination date of employment (the “Restricted Period”), the Executive will not interfere with, or attempt to interfere with, any business relationships (whether formed before, on or after the date of this Agreement) between the Company Group and any of the Company Group’s customers, suppliers or partners.

	
 
	
9.2
	
Non-Solicitation. The Executive agrees that, during the Restricted Period, the Executive will not:

	
 
	
9.2.1
	
hire, solicit, encourage or otherwise induce any employee, consultant or independent contractor of any member of the Company Group, who provided services to any member of the Company Group within the preceding six months, to terminate his or her employment or other contractual relationship with any member of the Company Group; provided that this provision shall not prohibit the engagement of an independent contractor who does not provide services exclusively to a member of the Company Group if such engagement does not adversely affect the ability of the independent contractor to provide its services to the member or members of the Company Group to which it is then providing services; or

	
 
	
9.2.2
	
induce or attempt to induce any Person or entity which is a supplier, distributor, guest, travel agent, vendor, customer or otherwise a contracting party of any member of the Company Group at any time during the applicable Restricted Period, to terminate or modify any written or oral agreement or understanding with any member of the Company Group.

	
 
	
9.3
	
The Executive acknowledges that a violation of the foregoing provisions of Sections 8 and 9 would cause irreparable harm to the Company Group, and that the Company Group’s remedy at law for any such violation would be inadequate. In recognition of the foregoing, in addition to any other relief afforded by law or this Agreement, including damages sustained by a breach of this Agreement and any forfeitures under Section 6.7, and without the necessity or proof of actual damages or the posting of a bond, the Company Group will have the right to enforce this 

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Agreement by specific equitable remedies, which will include temporary and permanent injunctions, it being the understanding of the Parties that damages, the forfeitures described above and injunctions will all be proper modes of relief and are not to be considered as alternative remedies. 

	
 
	
9.4
	
If a court at any time determines that any restriction or limitation in this Section 9 is unreasonable or unenforceable, it will be deemed amended so as to provide the maximum protection to the Company Group and be deemed reasonable and enforceable by the court.

	
10
	
Developments.

	
 
	
10.1
	
The Executive will make full and prompt disclosure to the Company Group of all inventions, improvements, discoveries, methods, developments, software, mask works and works of authorship, whether patentable or copyrightable or not, (i) which relate to the business(es) of the Company Group and have heretofore been created, made, conceived or reduced to practice by the Executive or under the Executive’s direction or jointly with others, and not assigned to prior employers, or (ii) which have utility in or relate to the Company Group’s business(es) and are created, made, conceived or reduced to practice by the Executive or under the Executive’s direction or jointly with others during the Executive’s employment with the Company Group, whether or not during normal working hours or on the premises of the Company Group (all of the foregoing of which are collectively referred to in this Agreement as “Developments”).

	
 
	
10.2
	
The Executive agrees to assign and hereby assigns to the Company Group (or any Person designated by the Company Group) all of the Executive’s rights, title and interest worldwide in and to all Developments and all related patents, patent applications, copyrights and copyright applications, and any other applications for registration of a proprietary right. This paragraph will not apply to Developments that the Executive developed entirely on the Executive’s own time without using the Company Group’s equipment, supplies, facilities or Confidential Information and that does not, at the time of conception or reduction to practice, have utility in or relate to the Company Group’s business(es), or actual or demonstrably anticipated research or development. To the extent this Agreement is construed in accordance with the laws of any jurisdiction which precludes a requirement in an employee agreement to assign certain classes of inventions made by an employee, this paragraph will be interpreted not to apply to any invention which a court rules or the Company agrees falls within such classes but will be interpreted to apply thereto to the maximum extent legally permissible.

	
 
	
10.3
	
The Executive will cooperate fully with the Company Group, both during and after the Executive’s employment with the Company Group, with respect to the procurement, maintenance and enforcement of copyrights, patents and other intellectual property rights (both in the United States and other countries) relating to Developments. The Executive will not be required to incur or pay any costs or expenses in connection with the rendering of such cooperation. The Executive will 

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sign all papers, including copyright applications, patent applications, declarations, oaths, formal assignments, assignments of priority rights, and powers of attorney, and do all things that the Company Group may deem necessary or desirable in order to protect its rights and interests in any Development. If any member of the Company Group is unable, after reasonable effort, to secure the Executive’s signature on any such papers, any executive officer of the Company is expressly authorized to execute any such papers as the Executive’s agent and attorney-in-fact, coupled with interest, and the Executive hereby irrevocably designates and appoints each executive officer of the Company as the Executive’s agent and attorney-in-fact to execute any such papers on the Executive’s behalf and to take any and all other actions as the Company Group may deem necessary or desirable in order to protect its rights and interests in any Development, under the conditions described in this sentence. 

	
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Remedies. The Executive and the Company acknowledge that the covenants contained in Sections 8, 9 and 10 are reasonable under the circumstances. Accordingly, if, in the opinion of any court of competent jurisdiction, any such covenant is not reasonable in any respect, such court will have the right, power and authority to sever or modify any provision or provisions of such covenants as to the court will appear not reasonable and to enforce the remainder of the covenants as so amended. The Executive further acknowledges that the remedy at law available to the Company Group for breach of any of the Executive’s obligations under Sections 8, 9 and 10 would be inadequate and that damages flowing from such a breach may not readily be susceptible to being measured in monetary terms. Accordingly, in addition to any other rights or remedies that the Company Group may have at law, in equity or under this Agreement, upon proof of the Executive’s violation of any such provision of this Agreement, the Company Group will be entitled to immediate injunctive relief and may obtain a temporary order restraining any threatened or further breach, without the necessity of proof of actual damage or the posting of any bond.

	
12
	
Company Property. All notes, lists, records, files, documents and other papers and other like items (and all copies, extracts and summaries thereof), advertising, sales, manufacturers’ and other materials or articles or information, including data processing reports, computer programs, software, customer information and records, business records, price lists or information, samples, or any other materials or data of any kind furnished to the Executive by the Company Group or developed, made or compiled by the Executive on behalf of the Company Group or at the Company Group’s direction or for the Company Group’s use or otherwise in connection with the Executive’s employment hereunder, are and will remain the sole property of the Company Group, including in each case all copies thereof in any medium, including computer tapes and other forms of information storage, but excluding materials relating directly to the terms and conditions of the Executive’s employment and the Executive’s performance as an employee of the Company Group (the “Company Property”). If any member of the Company Group requests the return of any Company Property at any time during or at or after the date of termination of employment, the Executive will deliver, at the Company’s sole cost and expense, all such Company Property, including all copies of the same, to the Company as soon as practicable. The provisions of this paragraph apply during and after the period when the Executive is an employee of the Company Group and will be in addition to (and not a limitation of) any 

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legally applicable protections of the Company Group’s interest in Confidential Information, trade secrets and the like. 

	
13
	
Continued Availability and Cooperation. Following termination of the Executive’s employment, the Executive will reasonably cooperate, at the Company’s sole expense, with the Company Group and with the Company Group members’ counsel in connection with any present or future actual or threatened litigation, administrative proceeding or investigation involving any member of the Company Group that relates to events, occurrences or conduct occurring (or claimed to have occurred) during the period of the Executive’s employment by the Company Group. Cooperation will include:

	
 
	
13.1
	
Being reasonably available for interviews and discussions with the Company Group members’ counsel, as well as for depositions and trial testimony;

	
 
	
13.2
	
If depositions or trial testimony are to occur, being reasonably available and cooperating in the preparation therefore, as and to the extent that the Company Group or any Company Group member’s counsel reasonably requests;

	
 
	
13.3
	
Refraining from impeding in any way the Company Group’s prosecution or defense of such litigation or administrative proceeding; and

	
 
	
13.4
	
Reasonably cooperating fully in the development and presentation of the Company Group’s prosecution or defense of such litigation or administrative proceeding.

	
 
	
13.5
	
The Company will reimburse the Executive for reasonable travel, lodging, telephone and similar expenses, as well as reasonable attorneys’ fees (if independent legal counsel is authorized in advance in writing by the Company, such authorization not to be unreasonably withheld), incurred in connection with any such cooperation, consultation and advice rendered under this Agreement after the Executive’s termination of employment. However, the Executive will not be entitled to any separate compensation for any matter referred to in this Section 13.

	
14
	
Dispute Resolution. In the event that the Parties are unable to resolve any controversy or claim arising out of or in connection with this Agreement or breach thereof, any Party may refer the dispute to binding arbitration, which, except as expressly provided hereafter, will be the exclusive forum for resolving such claims. Such arbitration will be administered by the American Arbitration Association (the “AAA”) and governed by New York law. The arbitration will be conducted by a single arbitrator selected by the Executive and the Company according to the rules of the AAA. In the event that the Parties fail to agree on the selection of the arbitrator within 30 days after either the Executive’s or the Company’s request for arbitration, the arbitrator will be chosen by the AAA. The arbitration proceeding will commence on a mutually agreeable date within 90 days after the request for arbitration. The forum for arbitration will be agreed on by the Parties or, in the absence of any agreement, will be in a venue located in New York, New York.

	
 
	
14.1
	
The Parties agree that each will bear its own costs and attorneys’ fees in any arbitration hereunder. The arbitrator will not have authority to award attorneys’ fees or costs to any Party, except as provided by statute or ordinance.

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14.2
	
The arbitrator will have no power or authority to make awards or orders granting relief that would not be available to a Party in a court of law. The arbitrator’s award is limited by and must comply with this Agreement and applicable federal, state and local laws. The decision of the arbitrator will be final and binding on the Parties. 

	
 
	
14.3
	
Notwithstanding the foregoing, no claim or controversy for injunctive or equitable relief contemplated by or allowed under applicable law pursuant to Sections 8, 9 and 10 will be subject to arbitration under this Section 14, but will instead be subject to determination as provided in Section 19.

	
15
	
Entire Agreement. No agreements or representations or warranties, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by any Party which are not expressly set forth in this Agreement. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof and supersedes all prior agreements and understandings relating to the subject matter hereof, including, without limitation, the Prior Agreement.

	
16
	
Withholding of Taxes. The Company will have the right to withhold from any amount payable hereunder any federal, state, city, local or other taxes in order for the Company Group to satisfy any withholding tax obligation it may have under any applicable law, regulation or ruling.

	
17
	
Successors and Binding Agreement.

	
 
	
17.1
	
The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to all or substantially all of the business or assets of the Company expressly to assume in writing and agree to perform this Agreement in the same manner and to the same extent the Company would be required to perform if no such succession had taken place. This Agreement will be binding upon and inure to the benefit of the Company and any successor to the Company, including any Person acquiring directly or indirectly all or substantially all of the business or assets of the Company whether by purchase, merger, consolidation, reorganization or otherwise (and such successor will thereafter be deemed “the Company” for purposes of this Agreement), but will not otherwise be assignable or delegable by the Company, except that the Company may assign this Agreement, or may assign its rights and delegate its duties hereunder, to any Person who acquires all of the voting stock of the Company (or to any parent entity thereof) subject to the first sentence of this Section 17.1.

	
 
	
17.2
	
This Agreement will inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees and legatees. If the Executive dies while any amount would still be payable to the Executive hereunder (other than amounts which, by their terms, terminate upon the death of the Executive) if the Executive had continued to live, all such amounts, unless otherwise provided herein, will be paid in accordance with the terms of this Agreement to the executors, personal representatives or administrators of the Executive’s estate.

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17.3
	
This Agreement is personal in nature and neither the Company nor the Executive may, without the consent of the other, assign or delegate this Agreement or any rights or obligations hereunder, except as expressly provided in Sections 17.1 and 17.2. Without limiting the generality or effect of the foregoing, the Executive’s right to receive payments hereunder will not be assignable, transferable or delegable, whether by pledge, creation of a security interest, or otherwise, other than by a transfer by the Executive’s will or by the laws of descent and distribution and, in the event of any attempted assignment or transfer contrary to this paragraph, the Company will have no liability to pay any amount so attempted to be assigned, transferred or delegated. 

	
18
	
Notices. Any notice, demand, claim or other communication under this Agreement will be in writing and will be deemed to have been given (a) on delivery if delivered personally; (b) on the date on which delivery thereof is guaranteed by the carrier if delivered by a national courier guaranteeing delivery within a fixed number of days of sending; or (c) on the date of transmission thereof if delivery is confirmed, but, in each case, only if addressed to the Parties in the following manner at the following addresses (or at the other address as a Party may specify by notice to the other) to the Company, to the attention of the Chief Executive Officer at its principal executive offices, and to the Executive, at the Executive’s principal residence as set forth in the employment records of the Company.

	
19
	
Governing Law and Choice of Forum.

	
 
	
19.1
	
This Agreement will be construed and enforced according to the laws of the State of New York, other than the choice of law provisions thereof.

	
 
	
19.2
	
To the extent not otherwise provided for by Section 14, the Parties consent to the exclusive jurisdiction of all state and federal courts located in New York, as well as to the jurisdiction of all courts of which an appeal may be taken from such courts, for the purpose of any suit, action or other proceeding arising out of, or in connection with, this Agreement or that otherwise arise out of the employment relationship. Each Party hereby expressly waives (i) any and all rights to bring any suit, action or other proceeding in or before any court or tribunal other than the courts described above, and covenants that it will not seek in any manner to resolve any dispute other than as set forth in this paragraph, and (ii) any and all objections either may have to venue, including the inconvenience of such forum, in any of such courts. In addition, each Party consents to the service of process by personal service or any manner in which notices may be delivered hereunder in accordance with this Agreement.

	
20
	
Validity/Severabilitv. The Parties agree that (a) the provisions of this Agreement will be severable in the event that for any reason whatsoever any of the provisions hereof are invalid, void or otherwise unenforceable, (b) any such invalid, void or otherwise unenforceable provisions will be replaced by other provisions which are as similar as possible in terms to such invalid, void or otherwise unenforceable provisions but are valid and enforceable, and (c) the remaining provisions will remain valid and enforceable to the fullest extent permitted by applicable law.

 13

	
21
	
Survival. The obligations of the Company and the Executive under this Agreement which by their nature may require either partial or total performance after the expiration or termination of the Employment Term or this Agreement (including those under Sections 6 (to the extent applicable), 8, 9, 10, 11, 12, 13 and 33) will survive any termination or expiration of this Agreement. 

	
22
	
Subsequent Employment. During the Restricted Period, if the Executive is offered employment or the opportunity to enter into any business activity, whether as owner, investor, executive, manager, employee, independent consultant, contractor, advisor or otherwise, the Executive will inform the offeror of the existence of Sections 8, 9, 10, 11, 12, and 13 of this Agreement and provide the offeror a copy thereof. The Executive authorizes the Company to provide a copy of the relevant provisions of this Agreement to any of the Persons described in this paragraph and to make such Persons aware of the Executive’s obligations under this Agreement.

	
23
	
Excise Tax.

	
 
	
23.1
	
Notwithstanding any other provisions in this Agreement, in the event that any payment or benefit received or to be received by the Executive (including any payment or benefit received in connection with a change in control of the Company or the termination of the Executive’s employment, whether pursuant to the terms of this Agreement or any other plan, program, arrangement or agreement) (all such payments and benefits, together, the “Total Payments”) would be subject (in whole or part), to any excise tax imposed under Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”) or any successor provision thereto (the “Excise Tax”), then, after taking into account any reduction in the Total Payments provided by reason of Section 280G of the Code in such other plan, program, arrangement or agreement, the Company will reduce the Total Payments to the extent necessary (as defined by the Auditor (as hereinafter defined)) so that no portion of the Total Payments is subject to the Excise Tax (but in no event to less than zero); provided, however, that the Total Payments will only be reduced if (i) the amount of such Total Payments, as so reduced (and after subtracting the amount of federal, state, municipal and local income taxes on such reduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such reduced Total Payments), is greater than or equal to (ii) the amount of such Total Payments without such reduction (but after subtracting the amount of federal, state, municipal and local income taxes on such Total Payments and the amount of Excise Tax to which the Executive would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such unreduced Total Payments).

	
 
	
23.2
	
In the case of a reduction in the Total Payments, the Total Payments will be reduced in the following order: (i) payments that are payable in cash that are valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a) will be reduced (if necessary, to zero), with amounts that are payable last reduced first; (ii) payments and benefits due in respect of any equity valued at full value under Treasury 

 14

	
 
		
Regulation Section 1.280G-1, Q&A 24(a), with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; (iii) payments that are payable in cash that are valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with amounts that are payable last reduced first, will next be reduced; (iv) payments and benefits due in respect of any equity valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; and (v) all other non-cash benefits not otherwise described in clauses (ii) or (iv) will be next reduced pro-rata. Any reductions made pursuant to each of clauses (i)-(v) above will be made in the following manner: first, a pro-rata reduction of cash payment and payments and benefits due in respect of any equity not subject to Section 409A, and second, a pro-rata reduction of cash payments and payments and benefits due in respect of any equity subject to Section 409A as deferred compensation. 

	
 
	
23.3
	
For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax: (i) no portion of the Total Payments the receipt or enjoyment of which the Executive shall have waived at such time and in such manner as not to constitute a “payment” within the meaning of Section 280G(b) of the Code will be taken into account; (ii) no portion of the Total Payments will be taken into account which, in the opinion of tax counsel (“Tax Counsel”) reasonably acceptable to the Executive and selected by the accounting firm which was, immediately prior to the change in control, the Company’s independent auditor (the “Auditor”), does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including without limitation by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments will be taken into account which, in the opinion of Tax Counsel, constitutes reasonable compensation for services actually rendered by Executive, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the “base amount” (as set forth in Section 280G(b)(3) of the Code) that is allocable to such reasonable compensation; and (iii) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments will be determined by the Auditor in accordance with the principles of Sections 280G(d)(3) and (4) of the Code.

	
 
	
23.4
	
Prior to the time that relevant payments subject to this Section 23 are made under this Agreement, the Company will provide the Executive with a written statement setting forth the manner in which such payments were calculated for the purposes of this Section 23 and the basis for such calculations, including any opinions or other advice the Company received from Tax Counsel, the Auditor, or other advisors or consultants (and any such opinions or advice which are in writing will be attached to the statement). If the Executive objects to the Company’s calculations, the Company will pay to the Executive such portion of the Total Payments (up to 100% thereof) as the Executive determines is necessary to result in the proper application of this Section 23. All determinations required by this Section 23 (or requested by either the Executive or the Company in connection with 

 15

	
 
		
this Section 23) will be at the expense of the Company. The fact that the Executive’s right to payments or benefits may be reduced by reason of the limitations contained in this Section 23 will not of itself limit or otherwise affect any other rights of the Executive under this Agreement. 

	
24
	
Compliance with Section 409A.

	
 
	
24.1
	
The Parties intend that any amounts payable under this Agreement, and the Company’s and the Executive’s exercise of authority or discretion hereunder, be exempt from or comply, as applicable, with the provisions of Section 409A of the Code, along with the rules, regulations and guidance promulgated thereunder by the Department of the Treasury or the Internal Revenue Service (collectively, “Section 409A”) so as not to subject the Executive to the payment of the additional tax, interest or penalty which may be imposed under Section 409A. In furtherance thereof, to the extent that any provision of this Agreement would result in the Executive being subject to payment of additional tax, interest or penalty under Section 409A, the Parties agree to interpret and apply and amend this Agreement if permitted under Section 409A in a manner which does not impose any additional taxes, interest or penalties on Executive in order to bring this Agreement into compliance with Section 409A, without materially changing the economic value of the arrangements under this Agreement to any Party, and thereafter the Parties will interpret its provisions in a manner that complies with Section 409A. Notwithstanding the foregoing, no particular tax result for the Executive with respect to any income recognized by the Executive in connection with this Agreement is guaranteed.

	
 
	
24.2
	
Notwithstanding any provisions of this Agreement to the contrary, if the Executive is a “specified employee” (within the meaning of Section 409A and determined pursuant to any policies adopted by the Company consistent with Section 409A), at the time of the Executive’s “Separation From Service” (within the meaning of Section 409A) and if any portion of the payments or benefits to be received by the Executive upon Separation From Service would be considered deferred compensation under Section 409A and cannot be paid or provided to the Executive without the Executive incurring taxes, interest or penalties under Section 409A, amounts that would otherwise be payable pursuant to this Agreement and benefits that would otherwise be provided pursuant to this Agreement and by subject to tax under Section 409A, in each case, during the six-month period immediately following the Executive’s Separation From Service, will instead be paid or made available to Executive or her estate on the earlier of (i) the first business day of the seventh month following the date of Executive’s Separation From Service or (ii) the Executive’s death.

	
 
	
24.3
	
With respect to any amount of expenses eligible for reimbursement or the provision of any in-kind benefits under this Agreement, to the extent such payment or benefit would be considered deferred compensation under Section 409A or is required to be included in the Executive’s gross income for federal income tax purposes, such expenses (including expenses associated with in-kind benefits) will be reimbursed 

 16

	
 
		
by the Executive no later than December 30 of the year following the year in which the Executive incurs the related expenses. In no event will the reimbursements or in-kind benefits to be provided by the Company in one taxable year affect the amount of reimbursements or in-kind benefits to be provided in any other taxable year, nor will the Executive’s right to reimbursement or in-kind benefits be subject to liquidation or exchange for another benefit. 

	
 
	
24.4
	
Each payment under this Agreement is intended to be a “separate payment” and not one of a series of payments for purposes of Section 409A.

	
 
	
24.5
	
24.5 A termination of employment will not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits subject to Section 409A upon or following a termination of employment unless such termination is also a Separation From Service, and notwithstanding anything contained herein to the contrary, the date on which such Separation From Service takes place will be the termination date.

	
25
	
Amendment; Waiver.

	
 
	
25.1
	
This Agreement may be amended and any provision of this Agreement may be waived only if such amendment or waiver is set forth in a writing executed by the Parties hereto. No course of dealing between the Parties will be deemed effective to modify, amend or discharge any part of this Agreement or any rights or obligations of any Party under or by reason of this Agreement.

	
 
	
25.2
	
No delay or failure in exercising any right, power or remedy hereunder will affect or operate as a waiver thereof; nor will any single or partial exercise thereof or any abandonment or discontinuance of steps to enforce such a right, power or remedy preclude any further exercise thereof or of any other right, power or remedy.

	
26
	
Counterparts. This Agreement may be executed in multiple counterparts (any one of which need not contain the signatures of more than one Party), each of which will be deemed to be an original but all of which taken together will constitute one and the same agreement. This Agreement, and any amendments hereto, to the extent signed and delivered by means of a facsimile machine or other electronic transmission, will be treated in all manner and respects as an original agreement and will be considered to have the same binding legal effects as if it were the original signed version thereof delivered in person. No Party will raise the use of a facsimile machine or other electronic means to deliver a signature or the fact that any signature was transmitted or communicated through the use of facsimile machine or other electronic means as a defense to the formation of a contract and each Party forever waives any such defense.

	
27
	
Headings; Interpretation.

	
 
	
27.1
	
The descriptive headings herein are inserted for convenience of reference only and are not intended to be a substantive part of or to affect the meaning or interpretation of this Agreement.

 17

	
 
	
27.2
	
Reference to any agreement, document, or instrument means such agreement, document, or instrument as amended or otherwise modified from time to time in accordance with the terms thereof, and if applicable hereof. Unless otherwise indicated, any reference to a “Section” means a Section of this Agreement. 

	
 
	
27.3
	
In the event an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the Parties, and no presumption or burden of proof will arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement.

	
 
	
27.4
	
The word “including” (in its various forms) means including without limitation. All references in this Agreement to “days” refer to “calendar days” unless otherwise specified.

	
28
	
Defined Terms. In addition to the terms defined elsewhere herein, the following terms will have the following meanings when used herein with initial capital letters:

	
 
	
28.1
	
“Affiliate” means, as to any Person, any other Person that directly or indirectly controls, or is controlled by, or is under common control with, such Person. For this purpose, “control” (including, with its correlative meanings, “controlled by” and “under common control with”) will mean the possession, directly or indirectly, of the power to direct or cause the direction of management or policies of a Person, whether through ownership of securities or partnership or other ownership interests, by contract or otherwise. Unless otherwise indicated, an Affiliate refers to an Affiliate of the Company.

	
 
	
28.2
	
“Cause” means:

	
 
	
28.2.1
	
Any act or omission constituting a material breach by the Executive of any provisions of this Agreement; after written notice is delivered to the Executive by the Company that identifies in reasonable detail the manner in which the Company believes the Executive has breached the Agreement, if, within thirty (30) days of such demand, the Executive fails to cure any such breach that is capable of being cured;

	
 
	
28.2.2
	
The willful failure by the Executive to perform the Executive’s duties hereunder (other than any such failure resulting from the Executive’s Disability), after written demand for performance is delivered by the Company that identifies in reasonable detail the manner in which the Company believes the Executive has not performed the Executive’s duties, if, within 30 days of such demand, the Executive fails to cure any such failure that is capable of being cured;

	
 
	
28.2.3
	
Any misconduct by the Executive that is materially injurious to any member of the Company Group, financial or otherwise, or any act of misappropriation, fraud including with respect to any member of the Company Group’s accounting and financial statements, embezzlement or 

 18

	
 
		
conversion by the Executive of the property of any member of the Company Group; 

	
 
	
28.2.4
	
The conviction (or plea of no contest) of the Executive for any felony or the indictment of the Executive for any felony;

	
 
	
28.2.5
	
The Executive’s gross negligence, gross neglect of duties or gross insubordination;

	
 
	
28.2.6
	
The Executive’s commission of any violation of any antifraud provision of federal or state securities laws;

	
 
	
28.2.7
	
The Executive’s alcohol or prescription or other drug abuse substantially affecting work performance;

	
 
	
28.2.8
	
The Executive’s violation of the Company’s policies regarding harassment or discrimination; or

	
 
	
28.2.9
	
The Executive’s material violation of the Company Policies.

	
 
	
28.3
	
“Change in Control” means the occurrence of a “change in control event” (within the meaning of Section 409A and the Regulations thereunder) with respect to Morgans Hotel Group Co.

	
 
	
28.4
	
“Company Group” means Morgans Hotel Group Co. and its respective Affiliates. 

	
 
	
28.5
	
“Disability” or “Disabled” means:

	
 
	
28.5.1
	
The Executive’s incapacity due to physical or mental illness to substantially perform the Executive’s duties and the essential functions of the Executive’s position, with reasonable accommodation, on a full-time basis for 12 months; or

	
 
	
28.5.2
	
The Executive becomes eligible to receive benefits under the Company’s applicable long-term disability plan;

	
 
	
28.5.3
	
Except that, if the Executive does not agree with a determination to terminate the Executive’s employment because of Disability, the question of the Executive’s Disability will be subject to the certification of a qualified medical doctor reasonably agreed upon by the Company and the Executive. The costs of such qualified medical doctor will be paid by the Company.

	
 
	
28.6
	
“Good Reason” means, without the Executive’s consent:

	
 
	
28.6.1
	
A material diminution in the Executive’s Base Salary or Target Bonus, other than a reduction in Base Salary that affects all similarly situated Company executives in substantially the same proportions as provided for in Section 4.1 hereof;

 19

	
 
	
28.6.2
	
A material diminution in the Executive’s authority, duties, or responsibilities (other than temporarily while the Executive is physically or mentally incapacitated or as required by applicable law); 

	
 
	
28.6.3
	
A relocation of the Executive’s principal place of employment by more than 50 miles from the Executive’s principal place of employment as of the signing of this Agreement; or

	
 
	
28.6.4
	
Any material breach by the Company of this Agreement; 

provided, however, that the foregoing conditions will constitute Good Reason only if (A) the Executive provides written notice to the Company within 90 days of the initial existence of the condition(s) constituting Good Reason and (2) the Company fails to cure such condition(s) within 30 days after receipt from the Executive of such notice; and provided further, that Good Reason will cease to exist with respect to a condition one year following the initial existence of such condition.

	
 
	
28.7
	
“Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture or an unincorporated organization.

	
29
	
Certain Costs. Each Party will pay and be fully responsible for its own costs and expenses (including costs of professional advisors) incurred in connection with the negotiation, execution, interpretation and enforcement of this Agreement.

	
30
	
Clawback Provisions. Notwithstanding any other provisions in this Agreement to the contrary, any incentive-based compensation, or any other compensation, paid to the Executive pursuant to this Agreement or any other agreement or arrangement with any member of the Company Group, which is subject to recovery under any law, government regulation or stock exchange listing requirement, will be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement (or any policy adopted by any member of the Company Group pursuant to any such law, government regulation or stock exchange listing requirement).

	
31
	
Acknowledgements. The Executive acknowledges and agrees that (i) the Executive has read this Agreement carefully and in its entirety, (ii) the Executive understands the terms and conditions contained herein, (iii) the Executive has had the opportunity to review this Agreement with legal counsel of the Executive’s own choosing and has not relied on any statements made by the Company or its legal counsel as to the meaning of any term or condition contained herein or in deciding whether to enter into this Agreement, and (iv) the Executive is entering into this Agreement knowingly and voluntarily. The Executive acknowledges and agrees that each member of the Company Group is an intended third party beneficiary of this Agreement and, as such, will be entitled to all of the benefits, and will be permitted to enforce its rights, under this Agreement as if such third party were an original party hereto. As an inducement to enter into this Agreement, the Executive 

 20

		
represents and warrants as follows: (A) other than the Prior Agreement, the Executive is not a party to any other agreement or obligation for personal services; (B) there exist no impediments or restraints, contractual or otherwise on the Executive’s power, right or ability to enter into this Agreement and to perform the Executive’s duties and obligations hereunder; and (C) the performance of the Executive’s obligations under this Agreement do not and will not violate or conflict with any agreement relating to confidentiality, non-competition or exclusive employment to which the Executive is or was subject. 

	
32
	
Resignations. Following the termination of the Executive’s employment for any reason, if and to the extent requested by the Board, the Executive agrees to resign from the Board, all fiduciary positions (including as trustee) and all other offices and positions the Executive holds with the Company Group; provided, however, that if the Executive refuses to tender the Executive’s resignation after the Board has made such request, then the Board will be empowered to tender the Executive’s resignation from such offices and positions.

	
33
	
Indemnification. If the Executive is made a party, is threatened to be made a party, or reasonably anticipates being made a party, to any Proceeding (as defined below) by reason of the fact that the Executive is or was a director, officer, executive, agent, manager, trustee, consultant or representative of the Company or any of its affiliates or is or was serving at the request of the Company or any of its affiliates, or in connection with the Executive’s service hereunder, as a director, officer, member, executive, agent, manager, trustee, consultant or representative of another person or entity, or if any Claim (as defined below) is made, is threatened to be made, or is reasonably anticipated to be made, that arises out of or relates to the Executive’s service in any of the foregoing capacities, then the Executive shall promptly be indemnified and held harmless to the fullest extent permitted or authorized by the Certificate of Incorporation or Bylaws of the Company, or if greater, by applicable law, against any and all costs, expenses, liabilities and losses (including, without limitation, attorneys’ and other fees, judgments, interest, expenses of investigation, penalties, fines, ERISA excise taxes or penalties and amounts paid or to be paid in settlement) incurred or suffered by the Executive in connection therewith or in connection with seeking to enforce the Executive’s rights under this Section 33, and such indemnification shall continue as to the Executive even if the Executive has ceased to be a director, member, executive, agent, manager, trustee, consultant or representative of the Company or other person or entity and shall inure to the benefit of the Executive’s heirs, executors and administrators. The Executive shall be entitled to prompt advancement of any and all costs and expenses (including, without limitation, attorneys’ and other professional fees and other charges) incurred by the Executive in connection with any such Proceeding or Claim, or in connection with seeking to enforce Executive’s rights under this Section 33, any such advancement to be made within 15 days after Executive gives written notice, supported by reasonable documentation, requesting such advancement. Such notice shall include, to the extent required by applicable law, an undertaking by the Executive to repay the amount advanced if Executive is ultimately determined not to be entitled to indemnification against such costs and expenses. Nothing in this Agreement shall operate to limit or extinguish any right to indemnification, advancement of expenses, or contribution that the Executive would otherwise have (including, without limitation, by agreement or under applicable law). For purposes of this Agreement, “Claim” shall include, without limitation, any claim, demand, request, investigation, dispute, controversy, threat, 

 21

		
discovery request, or request for testimony or information and “Proceeding” shall include, without limitation, any actual, threatened, or reasonably anticipated, action, suit or proceeding, whether civil, criminal, administrative, investigative, appellate, formal, informal or other. 

A directors’ and officers’ liability insurance policy (or policies) shall be kept in place, during the Employment Term and thereafter until the later of (x) the sixth anniversary of the date on which the Executive’s employment with the Company terminates and (y) the date on which all claims against the Executive that would otherwise be covered by the policy (or policies) would become fully time barred, providing coverage to the Executive that is no less favorable to Executive in any respect (including, without limitation, with respect to scope, exclusions, amounts, and deductibles) than the coverage then being provided to any other present or former executive or director of the Company.

 22

IN WITNESS WHEREOF, this Agreement is duly executed as of the Execution Date listed on the first page.

MORGANS HOTEL GROUP CO.

By:

/s/ Richard Szymanski

Name: Richard Szymanski

Title: Chief Financial Officer

January 14, 2016

Date

 

EXECUTIVE

/s/ Meredith L. Deutsch

Meredith L. Deutsch

January 14, 2016

Date

 

 

 23

Exhibit A

WAIVER AND RELEASE OF CLAIMS AGREEMENT

 (“Employee”) hereby acknowledges that  (“Employer”) is offering Employee certain payments in connection with Employee’s termination of employment pursuant to the employment agreement entered into between Employer and Employee, as amended (the “Employment Agreement”), in exchange for Employee’s promises in this Waiver and Release of Claims Agreement (this “Agreement”).

Severance Payments

1.Employee agrees that Employee will be entitled to receive the applicable severance payments and benefits set forth under Section 6 of the Employment Agreement (the “Severance  Payments”) only if Employee accepts and does not revoke this Agreement, which requires Employee to release both known and unknown claims.

2.Employee agrees that the Severance Payments tendered under the Employment Agreement constitute fair and adequate consideration for the execution of this Agreement. Employee further agrees that Employee has been fully compensated for all wages and fringe benefits, including, but not limited to, paid and unpaid leave, due and owing, and that the Severance Payments are in addition to payments and benefits to which Employee is otherwise entitled.

Claims That Are Being Released

3.Employee agrees that this Agreement constitutes a full and final release by Employee and Employee’s descendants, dependents, heirs, executors, administrators, assigns, and successors, of any and all claims, charges, and complaints, whether known or unknown, that Employee has or may have to date against Employer and any of its parents, subsidiaries, or affiliated entities and their respective officers, directors, shareholders, partners, joint venturers, employees, consultants, insurers, agents, predecessors, successors, and assigns, arising out of or related to Employee’s employment or the termination thereof, or otherwise based upon acts or events that occurred on or before the date on which Employee signs this Agreement. To the fullest extent allowed by law, Employee hereby waives and releases any and all such claims, charges, and complaints in return for the Severance Payments. This release of claims is intended to be as broad as the law allows, and includes, but is not limited to, rights arising out of alleged violations of any contracts, express or implied, any covenant of good faith or fair dealing, express or implied, any tort or common law claims, any legal restrictions on Employer’s right to terminate employees, and any claims under any federal, state, municipal, local, or other governmental statute, regulation, or ordinance, including, without limitation:

(a)claims of discrimination, harassment, or retaliation under equal employment laws such as Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Rehabilitation Act of 1973, and any and all other federal, state, municipal, local, or foreign equal opportunity laws;

 

(b)if applicable, claims of wrongful termination of employment; statutory, regulatory, and common law “whistleblower” claims, and claims for wrongful termination in violation of public policy; 

(c)claims arising under the Employee Retirement Income Security Act of 1974, except for any claims relating to vested benefits under Employer’s employee benefit plans;

(d)claims of violation of wage and hour laws, including, but not limited to, claims for overtime pay, meal and rest period violations, and recordkeeping violations; and

(e)claims of violation of federal, state, municipal, local, or foreign laws concerning leaves of absence, such as the Family and Medical Leave Act, New York State Human Rights Law, and New York City Human Rights Law.

Claims That Are Not Being Released

4.This release does not include any claims that may not be released as a matter of law, and this release does not waive claims or rights that arise after Employee signs this Agreement. Further, this release will not prevent Employee from doing any of the following:

(a)obtaining unemployment compensation, state disability insurance, or workers’ compensation benefits from the appropriate agency of the state in which Employee lives and works, provided Employee satisfies the legal requirements for such benefits (nothing in this Agreement, however, guarantees or otherwise constitutes a representation of any kind that Employee is entitled to such benefits);

(b)asserting any right that is created or preserved by this Agreement, such as Employee’s right to receive the Severance Payments and the enforcement of the terms of the Employment Agreement that survive termination of employment as set forth in Section 20 of the Employment Agreement;

(c)filing a charge, giving testimony or participating in any investigation conducted by the Equal Employment Opportunity Commission (the “EEOC”) or any duly authorized agency of the United States or any state (however, Employee is hereby waiving the right to any personal monetary recovery or other personal relief should the EEOC (or any similarly authorized agency) pursue any class or individual charges in part or entirely on Employee’s behalf); or

(d)challenging or seeking determination in good faith of the validity of this waiver under the Age Discrimination in Employment Act (nor does this release impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by federal law); or

(e)the enforcement of any of the terms or conditions of this Agreement.

 2

Additional Employee Covenants

	
 
	
5.
	
To the extent applicable, Employee confirms and agrees to Employee’s continuing obligations under the Employment Agreement, including, without limitation, following termination of Employee’s employment with Employer. This includes, without limitation, Employee’s continuing obligations under Sections 8-13 of the Employment Agreement.

Voluntary Agreement And Effective Date

	
 
	
6.
	
Employee understands and acknowledges that, by signing this Agreement, Employee is agreeing to all of the provisions stated in this Agreement, and has read and understood each provision.

	
 
	
7.
	
The parties understand and agree that:

(a)Employee will have a period of 21 calendar days in which to decide whether or not to sign this Agreement, and an additional period of seven calendar days after signing in which to revoke this Agreement. If Employee signs this Agreement before the end of such 21-day period, Employee certifies and agrees that the decision is knowing and voluntary and is not induced by Employer through (i) fraud, misrepresentation, or a threat to withdraw or alter the offer before the end of such 21-day period or (ii) an offer to provide different terms in exchange for signing this Agreement before the end of such 21-day period.

(b)In order to exercise this revocation right, Employee must deliver written notice of revocation to [INSERT COMPANY CONTACT] on or before the seventh calendar day after Employee executes this Agreement. Employee understands that, upon delivery of such notice, this Agreement will terminate and become null and void.

(c)The terms of this Agreement will not take effect or become binding, and Employee will not become entitled to receive the Severance Payments, until that seven-day period has lapsed without revocation by Employee. If Employee elects not to sign this Agreement or revokes it within seven calendar days of signing, Employee will not receive the Severance Payments.

(d)All amounts payable hereunder will be paid in accordance with the applicable terms of the Employment Agreement.

Governing Law

	
 
	
8.
	
This Agreement will be governed by the substantive laws of the State of New York, without regard to conflicts of law, and by federal law where applicable.

	
 
	
9.
	
If any part of this Agreement is held to be invalid or unenforceable, the remaining provisions of this Agreement will not be affected in any way.

 3

Consultation With Attorney

10.Employee is hereby encouraged and advised to confer with an attorney regarding this Agreement. By signing this Agreement, Employee acknowledges that Employee has consulted, or had an opportunity to consult with, an attorney or a representative of Employee’s choosing, if any, and that Employee is not relying on any advice from Employer or its agents or attorneys in executing this Agreement.

(a)This Agreement was provided to Employee for consideration on [INSERT DATE THIS AGREEMENT PROVIDED TO EMPLOYEE].

PLEASE READ THIS AGREEMENT CAREFULLY; IT CONTAINS A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS.

Employee certifies that Employee has read this Agreement and fully and completely understands and comprehends its meaning, purpose, and effect. Employee further states and confirms that Employee has signed this Agreement knowingly and voluntarily and of Employee’s own free will, and not as a result of any threat, intimidation or coercion on the part of Employer or its representatives or agents.

 EMPLOYEE

		
	
Date:
	
 

 

 4EXHIBIT 10.20

2015 STOCK INCENTIVE PLAN

 

Article 1

INTRODUCTION

 

Section
1.1           Purpose, Effective Date, and Term. 
The purpose of this Landmark Bancorp, Inc.
2015 Stock Incentive Plan is
to promote the long-term financial success of Landmark Bancorp, Inc. and its
Subsidiaries by providing a means to attract, retain, and reward individuals who can and do contribute to such success, and to
further align their interests with those of the Stockholders. The “Effective Date” of the Plan is May, 20, 2015,
the date of the approval of the Plan by the Stockholders. The Plan shall remain in effect as long as any Awards are outstanding;
provided, however, that no Awards may be granted after the ten (10)-year anniversary of the Effective Date.

 

Section
1.2           Participation. Each employee and
director of, and service provider (with respect to which issuances of securities may be registered under Form S-8) to, the Company
and each Subsidiary who is granted, and currently holds, an Award in accordance with the provisions of the Plan shall be a “Participant”
in the Plan. Award recipients shall be limited to employees and directors of, and service providers (with respect to which issuances
of securities may be registered under Form S-8) to, the Company and its Subsidiaries; provided, however, that an Award (other
than an Award of an ISO) may be granted to an individual prior to the date on which he or she first performs services as an employee,
director, or service provider, provided that such Award shall not become vested prior to the date such individual commences
such services.

 

Section
1.3           Definitions. Capitalized terms in
the Plan shall be defined as set forth in the Plan (including the definition provisions of Article 8).

 

Article 2

AWARDS

 

Section
2.1           General. Any Award may be granted
singularly, in combination with another Award (or Awards), or in tandem whereby the exercise or vesting of one (1) Award held by
a Participant cancels another Award held by the Participant. Each Award shall be subject to the provisions of the Plan and such
additional provisions as the Committee may provide with respect to such Award and as may be evidenced in the Award Agreement. Subject
to the provisions of Section 3.4(b), an Award may be granted as an alternative to or replacement of an existing Award or
an award under any other plan of the Company or a Subsidiary, or as the form of payment for grants or rights earned or due under
any other compensation plan or arrangement of the Company or a Subsidiary, including the plan of any entity acquired by the Company
or a Subsidiary. The types of Awards that may be granted include the following:

 

(a)          Stock
Options. A stock option represents the right to purchase Shares at an exercise price established by the Committee. Any stock
option may be either an ISO or a nonqualified stock option that is not intended to be an ISO. No ISOs may be (i) granted after
the ten (10)-year anniversary of the Effective Date or (ii) granted to a non-employee. To the extent the aggregate Fair Market
Value (determined at the time of grant) of Shares with respect to which ISOs are exercisable for the first time by any Participant
during any calendar year under all plans of the Company and its Subsidiaries exceeds one hundred thousand dollars ($100,000), the
stock options or portions thereof that exceed such limit shall be treated as nonqualified stock options. Unless otherwise specifically
provided by the Award Agreement, any stock option granted under the Plan shall be a nonqualified stock option. All or a portion
of any ISO granted under the Plan that does not qualify as an ISO for any reason shall be deemed to be a nonqualified stock option.
In addition, any ISO granted under the Plan may be unilaterally modified by the Committee to disqualify such stock option from
ISO treatment such that it shall become a nonqualified stock option.

 

(b)          Stock
Appreciation Rights.  A stock appreciation right (an “SAR”) is a right to receive, in cash, Shares
or a combination of both (as shall be reflected in the respective Award Agreement), an amount equal to or based upon the excess
of (i) the Fair Market Value at the time of exercise of the SAR over (ii) an exercise price established by the Committee.

 

     

     

    

 

(c)          Stock
Awards.  A stock award is a grant of Shares or a right to receive Shares (or their cash equivalent or a combination of
both, as shall be reflected in the respective Award Agreement, excluding Awards designated as stock options, SARs, or cash incentive
awards by the Committee) based on the satisfaction of such conditions as may be established by the Committee. Such Awards may include
bonus shares, performance shares, performance units, restricted stock, restricted stock units, or any other equity-based Award
as determined by the Committee.

 

(d)          Cash
Incentive Awards.  A cash incentive award is the grant of a right to receive a payment of cash (or Stock having a value
equivalent to the cash otherwise payable, excluding Awards designated as stock options, SARs, or stock awards by the Committee,
all as shall be reflected in the respective Award Agreement), determined on an individual basis or as an allocation of an incentive
pool that is contingent on the achievement of performance objectives established by the Committee.

 

Section
2.2           Exercise of Stock Options and SARs. 
A stock option or SAR shall be exercisable in accordance with such provisions as may be established by the Committee; provided,
however, that a stock option or SAR shall expire no later than ten (10) years after its grant date (five (5) years in the
case of an ISO with respect to a 10% Stockholder).  The exercise price of each stock option and SAR shall be not less than
one hundred percent (100%) of the Fair Market Value on the grant date (or, if greater, the par value of a Share); provided,
however, that the exercise price of an ISO shall be not less than one hundred ten percent (110%) of Fair Market Value
on the grant date in the case of a 10% Stockholder; and provided, further, that, to the extent permitted under Code
Section 409A, and subject to Section 3.4(b), the exercise price may be higher or lower in the case of stock options and
SARs granted in replacement of existing awards held by an employee, director, or service provider granted by an acquired entity. 
The payment of the exercise price of a stock option shall be by cash or, subject to limitations imposed by applicable law, by any
of the following means unless otherwise determined by the Committee from time to time: (a) by tendering, either actually or
by attestation, Shares acceptable to the Committee and valued at Fair Market Value as of the day of exercise; (b) by irrevocably
authorizing a third party, acceptable to the Committee, to sell Shares acquired upon exercise of the stock option and to remit
to the Company no later than the third (3rd) business day following exercise a sufficient portion of the sale proceeds to pay the
entire exercise price and any tax withholding resulting from such exercise; (c) by payment through a net exercise such that, without
the payment of any funds, the Participant may exercise the option and receive the net number of Shares equal in value to (i) the
number of Shares as to which the option is being exercised, multiplied by (ii) a fraction, the numerator of which is the Fair Market
Value (on the date of exercise) less the exercise price, and the denominator of which is such Fair Market Value (the number of
net Shares to be received shall be rounded down to the nearest whole number of Shares); (d) by personal, certified, or cashiers’
check; (e) by other property deemed acceptable by the Committee; or (f) by any combination thereof.

 

Section
2.3           Performance-Based Compensation. Any
Award that is intended to be Performance-Based Compensation shall be conditioned on the achievement of one (1) or more objective
performance measures, to the extent required by Code Section 162(m), as may be determined by the Committee. The grant of any Award
and the establishment of performance measures that are intended to be Performance-Based Compensation shall occur during the period
required under Code Section 162(m).

 

(a)          Performance
Measures.  The performance measures described in this Section 2.3 may be based on any one (1) or more of the following:
earnings (e.g., earnings before interest and taxes; earnings before interest, taxes, depreciation, and amortization; and
earnings per share; each as may be defined by the Committee); financial return ratios (e.g., return on investment; return
on invested capital; return on equity; and return on assets; each as may be defined by the Committee); “Texas ratio”;
expense ratio; efficiency ratio; increase in revenue, operating, or net cash flows; cash flow return on investment; total stockholder
return; market share; net operating income, operating income, or net income; debt load reduction; loan and lease losses; expense
management; economic value added; stock price; book value; overhead; assets; asset quality level; assets per employee; charge offs;
loan loss reserves; loans; deposits; nonperforming assets; growth of loans, deposits, or assets; interest sensitivity gap levels;
regulatory compliance; improvement of financial rating; achievement of balance sheet or income statement objectives; improvements
in capital structure; profitability; profit margins; budget comparisons or strategic business objectives, consisting of one (1)
or more objectives based on meeting specific cost targets, business expansion goals, and goals relating to acquisitions or divestitures.
Performance measures may be based on the performance of the Company as a whole or of any one (1) or more Subsidiaries, business
units, or financial reporting segments of the Company or a Subsidiary, or any combination thereof, and may be measured relative
to a peer group, an index, or a business plan.

 

     

     

    

 

(b)          Partial
Achievement.  An Award may provide that partial achievement of the performance measures may result in payment or vesting
based upon the degree of achievement. In addition, partial achievement of performance measures shall apply toward a Participant’s
individual limitations as set forth in Section 3.3.

 

(c)          Extraordinary
Items.  In establishing any performance measures, the Committee may provide for the exclusion of the effects of the following
items, to the extent identified in the audited financial statements of the Company, including footnotes, or in the Management’s
Discussion and Analysis section of the Company’s annual report: (i) extraordinary, unusual, or nonrecurring items of
gain or loss, including non-cash refinancing charges; (ii) gains or losses on the disposition of a business; (iii) changes in tax
or accounting principles, regulations, or laws; (iv) mergers or acquisitions; and (v) such other items permitted from time
to time hereafter under the regulations promulgated under Code Section 162(m).  To the extent not specifically excluded, such
effects shall be included in any applicable performance measure.

 

(d)          Adjustments.
Pursuant to this Section 2.3, in certain circumstances the Committee may adjust performance measures; provided, however,
that no adjustment may be made with respect to an Award that is intended to be Performance-Based Compensation, except to the extent
the Committee exercises such negative discretion as is permitted under Code Section 162(m). If the Committee determines that a
change in the business, operations, corporate structure, or capital structure of the Company or the manner in which the Company
or a Subsidiary conducts its business or other events or circumstances render current performance measures to be unsuitable, the
Committee may modify such performance measures, in whole or in part, as the Committee deems appropriate. If a Participant is promoted,
demoted, or transferred to a different business unit during a performance period, the Committee may determine that the selected
performance measures or applicable performance period are no longer appropriate, in which case, the Committee, in its sole discretion,
may (i) adjust, change, or eliminate the performance measures or change the applicable performance period or (ii) cause
to be made a cash payment to the Participant in an amount determined by the Committee.

 

Section
2.4           Dividends and Dividend Equivalents. 
Any Award may provide the Participant with the right to receive dividend payments or dividend equivalent payments with respect
to Shares subject to the Award, which payments may be made currently or credited to an account for the Participant, may be settled
in cash or Shares, and may be subject to terms or provisions similar to the underlying Award.

 

Section
2.5           Forfeiture of Awards. Unless specifically
provided to the contrary in an Award Agreement, upon notification of Termination of Service for Cause, any outstanding Award held
by a Participant, whether vested or unvested, shall terminate immediately, such Award shall be forfeited, and the Participant shall
have no further rights thereunder.

 

Section
2.6           Deferred Compensation. The Plan is,
and all Awards are, intended to be exempt from (or, in the alternative, to comply with) Code Section 409A, and each shall be construed,
interpreted, and administered accordingly. The Company does not guarantee that any benefits that may be provided under the Plan
will satisfy all applicable provisions of Code Section 409A. If any Award would be considered “deferred compensation”
under Code Section 409A, the Committee reserves the absolute right (including the right to delegate such right) to unilaterally
amend the Plan or the applicable Award Agreement, without the consent of the Participant, to avoid the application of, or to maintain
compliance with, Code Section 409A. Any amendment by the Committee of the Plan or an Award Agreement pursuant to this Section
2.6 shall maintain, to the extent practicable, the original intent of the applicable provision without violating Code Section
409A. A Participant’s acceptance of any Award shall be deemed to constitute the Participant’s acknowledgment of, and
consent to, the rights of the Committee under this Section 2.6, without further consideration or action. Any discretionary
authority retained by the Committee pursuant to the terms of the Plan or pursuant to an Award Agreement shall not be applicable
to an Award that is determined to constitute deferred compensation, if such discretionary authority would contravene Code Section
409A.

 

Article 3

SHARES SUBJECT TO PLAN

 

Section
3.1           Available Shares.  The Shares
with respect to which Awards may be granted shall be Shares currently authorized but unissued, currently held, or, to the extent
permitted by applicable law, subsequently acquired by the Company, including Shares purchased in the open market or in private
transactions.

 

     

     

    

 

Section
3.2           Share Limitations. 

 

(a)          Share
Reserve. Subject to the following provisions of this Section 3.2, the maximum number of Shares that may be delivered under
the Plan shall be 250,000 (all of which may be granted as ISOs and all of which may be granted as full value awards). The maximum
number of Shares available for delivery under the Plan (including the number that may be granted as ISOs) and the number of Shares
subject to outstanding Awards shall be subject to adjustment as provided in Section 3.4.

 

(b)          Reuse
of Shares.  

 

(i)          To
the extent any Shares covered by an Award are not delivered to a Participant or beneficiary for any reason, including because the
Award is forfeited (including unvested stock awards), canceled, or settled in cash, such Shares shall not be deemed to have been
delivered for purposes of determining the maximum number of Shares available for delivery under the Plan and shall again become
eligible for delivery under the Plan. 

 

(ii)         With
respect to SARs that are settled in Shares, only Shares actually delivered shall be counted for purposes of determining the maximum
number of Shares available for delivery under the Plan.

 

(iii)        If
the exercise price of any stock option granted under the Plan is satisfied by tendering Shares to the Company (whether by actual
delivery or by attestation and whether or not such surrendered Shares were acquired pursuant to an award) or by the net exercise
of the award, only the number of Shares delivered net of the Shares tendered shall be deemed delivered for purposes of determining
the maximum number of Shares available for delivery under the Plan.

 

(iv)        If
the withholding tax liabilities arising from an Award are satisfied by the tendering of Shares to the Company (whether by actual
delivery or by attestation and whether or not such tendered Shares were acquired pursuant to an award) or by the withholding of
or reduction of Shares by the Company, such Shares shall be deemed to have been delivered for purposes of determining the maximum
number of Shares available for delivery under the Plan.

 

Section
3.3           Limitations on Grants to Individuals.
The following limitations shall apply with respect to Awards:

 

(a)          Stock
Options and SARs.  The maximum number of Shares that may be subject to stock options or SARs granted to any one (1) Participant
during any calendar year that are intended to be Performance-Based Compensation, and then only to the extent that such limitation
is required by Code Section 162(m), shall be 100,000. For purposes of this Section 3.3(a), if a stock option is granted
in tandem with an SAR, such that the exercise of the option or SAR with respect to a Share cancels the tandem SAR or option right,
respectively, with respect to such Share, the tandem option and SAR rights with respect to each Share shall be counted as covering
one (1) Share for purposes of applying the limitations of this Section 3.3(a).

 

(b)          Stock
Awards.  The maximum number of Shares that may be subject to stock awards that are granted to any one (1) Participant
during any calendar year and are intended to be Performance-Based Compensation, and then only to the extent that such limitation
is required by Code Section 162(m), shall be 100,000.

 

(c)          Cash
Incentive Awards and Stock Awards Settled in Cash.  The maximum dollar amount that may be payable to any one (1) Participant
pursuant to cash incentive awards and cash-settled stock awards that are granted to any one (1) Participant during any calendar
year and are intended to be Performance-Based Compensation, and then only to the extent that such limitation is required by Code
Section 162(m), shall be $500,000.

 

(d)          Dividends,
Dividend Equivalents and Earnings.  For purposes of determining whether an Award is intended to be qualified as Performance-Based
Compensation under the foregoing limitations of this Section 3.3, (i) the right to receive dividends and dividend equivalents
with respect to any Award that is not yet vested shall be treated as a separate Award, and (ii) if the delivery of any Shares or
cash under an Award is deferred, any earnings, including dividends and dividend equivalents, shall be disregarded.

 

     

     

    

 

(e)          Partial
Performance. Notwithstanding the preceding provisions of this Section 3.3, if in respect of any performance period or
restriction period, the Committee grants to a Participant Awards having an aggregate dollar value and/or number of Shares less
than the maximum dollar value and/or number of Shares that could be paid or awarded to such Participant based on the degree to
which the relevant performance measures were attained, the excess of such maximum dollar value and/or number of Shares over the
aggregate dollar value and/or number of Shares actually subject to Awards granted to such Participant shall be carried forward
and shall increase the maximum dollar value and/or the number of Shares that may be awarded to such Participant in respect of the
next performance period or restriction period in respect of which the Committee grants to such Participant an Award intended to
qualify as Performance-Based Compensation, subject to adjustment pursuant to Section 3.4.

 

(f)          Director
Awards.

 

(i)          The
maximum number of Shares that may be subject to stock options or SARs granted to any one (1) Director Participant during any
calendar year shall be 25,000.

 

(ii)         The
maximum number of Shares that may be subject to stock awards that are granted to any one (1) Director Participant during any
calendar year shall be 25,000.

 

(iii)        The
foregoing limitations shall not apply to cash-based director fees that a Director elects to receive in the form of Shares or Share-based
units equal in value to the cash-based director fees.

 

Section
3.4           Corporate Transactions; No Repricing.

 

(a)          Adjustments.
To the extent permitted under Code Section 409A, to the extent applicable, in the event of a corporate transaction involving the
Company or the Shares (including any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization,
merger, consolidation, split-up, spin-off, combination, or exchange of shares), all outstanding Awards, the number of Shares available
for delivery under the Plan under Section 3.2, and each of the specified limitations set forth in Section 3.3 shall
be adjusted automatically to proportionately and uniformly reflect such transaction (but only to the extent that such adjustment
will not negatively affect the status of an Award intended to qualify as Performance-Based Compensation, if applicable); provided,
however, that, subject to Section 3.4(b), the Committee may otherwise adjust Awards (or prevent such automatic adjustment)
as it deems necessary, in its sole discretion, to preserve the benefits or potential benefits of the Awards and the Plan. 
Action by the Committee under this Section 3.4(a) may include: (i) adjustment of the number and kind of shares that
may be delivered under the Plan; (ii) adjustment of the number and kind of shares subject to outstanding Awards; (iii) adjustment
of the exercise price of outstanding stock options and SARs; and (iv) any other adjustments that the Committee determines to be
equitable (which may include (A) replacement of an Award with another award that the Committee determines has comparable value
and that is based on stock of a company resulting from a corporate transaction, and (B) cancellation of an Award in return
for cash payment of the current value of the Award, determined as though the Award were fully vested at the time of payment, provided
that in the case of a stock option or SAR, the amount of such payment shall be the excess of the value of the stock subject to
the option or SAR at the time of the transaction over the exercise price, and provided, further, that no such payment
shall be required in consideration for the cancellation of the Award if the exercise price is greater than the value of the stock
at the time of such corporate transaction).

 

(b)          No
Repricing. Notwithstanding any provision of the Plan to the contrary, no adjustment or reduction of the exercise price of any
outstanding stock option or SAR in the event of a decline in Stock price shall be permitted without approval by the Stockholders
or as otherwise expressly provided under Section 3.4(a). The foregoing prohibition includes (i) reducing the exercise
price of outstanding stock options or SARs, (ii) cancelling outstanding stock options or SARs in connection with the granting
of stock options or SARs with a lower exercise price to the same individual, (iii) cancelling stock options or SARs with an exercise
price in excess of the current Fair Market Value in exchange for a cash or other payment, and (iv) taking any other action that
would be treated as a repricing of a stock option or SAR under the rules of the primary securities exchange or similar entity on
which the Shares are listed.

 

Section
3.5           Delivery of Shares.  Delivery
of Shares or other amounts under the Plan shall be subject to the following:

 

     

     

    

 

(a)          Compliance
with Applicable Laws.  Notwithstanding any provision of the Plan to the contrary, the Company shall have no obligation
to deliver any Shares or make any other distribution of benefits under the Plan unless such delivery or distribution complies with
all applicable laws and the applicable requirements of any securities exchange or similar entity.

 

(b)          No
Certificates Required.  To the extent that the Plan provides for the delivery of Shares, the delivery may be effected
on a non-certificated basis, to the extent not prohibited by applicable law or the applicable rules of any securities exchange
or similar entity.

 

Article 4

CHANGE IN CONTROL

 

Section
4.1           Consequence of a Change in Control.
Subject to the provisions of Section 3.4 (relating to the adjustment of shares), and except as otherwise provided in the
Plan or in any Award Agreement, at the time of a Change in Control:

 

(a)          Subject
to any forfeiture and expiration provisions otherwise applicable to the respective Awards, all stock options and SARs under the
Plan then held by the Participant shall become fully exercisable immediately if, and all stock awards and cash incentive awards
under the Plan then held by the Participant shall become fully earned and vested immediately if,

 

(i)          The
Plan and the respective Award Agreements are not the obligations of the successor entity (whether the Company, a successor thereto,
or an assignee thereof); or 

 

(ii)         The
Plan and the respective Award Agreements are the obligations of the successor entity (whether the Company, a successor thereto,
or an assignee thereof) and the Participant incurs a Termination of Service without Cause or by the Participant for Good Reason
within twenty-four (24) months following such Change in Control.

 

(b)          Notwithstanding
the foregoing provisions of this Section 4.1, if the vesting of an outstanding Award is conditioned upon the achievement
of performance measures, then such vesting shall be subject to the following:

 

(i)          If,
at the time of the Change in Control, the established performance measures are less than fifty percent (50%) attained (as determined
in the sole discretion of the Committee, but in any event, based pro rata in accordance with time lapsed through the date of the
Change in Control in the event of any period-based performance measures), then such Award shall become vested and exercisable on
a fractional basis with the numerator being equal to the percentage of attainment and the denominator being fifty percent (50%)
upon the Change in Control.

 

(ii)         If,
at the time of the Change in Control, the established performance measures are at least fifty percent (50%) attained (as determined
in the sole discretion of the Committee, but in any event based pro rata in accordance with time lapsed through the date of the
Change in Control in the event of any period-based performance measures), then such Award shall become fully earned and vested
immediately upon the Change in Control.

 

Section
4.2           Definition of Change in Control. 

 

(a)          “Change
in Control” means the first to occur of the following:

 

(i)          The
consummation of the acquisition by any “person” (as such term is defined in Section 13(d) or 14(d) of the Exchange
Act) of “beneficial ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than fifty
percent (50%) of the combined voting power of the then outstanding Voting Securities of the Company;

 

(ii)         During
any twelve (12)-month period, the individuals who, as of the Effective Date, are members of the Board cease for any reason to constitute
a majority of the Board, unless the election, or nomination for election by the Company’s stockholders, of any new director
was approved by a vote of a majority of the Board, in which case such new director shall, for purposes of the Plan, be considered
as a member of the Board; or

 

     

     

    

 

(iii)        The
consummation by the Company of: (A) a merger or consolidation if the Company’s stockholders immediately before such merger
or consolidation do not, as a result of such merger or consolidation, own, directly or indirectly, more than fifty percent (50%)
of the combined voting power of the then outstanding Voting Securities of the entity resulting from such merger or consolidation
in substantially the same proportion as their ownership of the combined voting power of the Voting Securities of the Company outstanding
immediately before such merger or consolidation; or (B) a complete liquidation or dissolution of, or an agreement for the sale
or other disposition of all or substantially all of the assets of, the Company.

 

(b)          Notwithstanding
any provision of this definition to the contrary, a Change in Control shall not be deemed to have occurred solely because more
than fifty percent (50%) of the combined voting power of the then outstanding securities of the Company are acquired by (i) a trustee
or other fiduciary holding securities under one (1) or more employee benefit plans maintained by the Company or a Subsidiary or
(ii) any corporation that, immediately prior to such acquisition, is owned directly or indirectly by the Company’s stockholders
in the same proportion as their ownership of Stock immediately prior to such acquisition.

 

(c)          Further
notwithstanding any provision of this definition to the contrary, in the event that any amount or benefit under the Plan constitutes
deferred compensation under Code Section 409A and the settlement of or distribution of such amount or benefit is to be triggered
by a Change in Control, then such settlement or distribution shall be subject to the event constituting the Change in Control also
constituting a “change in control event” (as defined in Code Section 409A).

 

Article 5

COMMITTEE

 

Section
5.1           Administration.  The authority
to control and manage the operation and administration of the Plan shall be vested in the Committee in accordance with this Article
5.  The Committee shall be selected by the Board, provided that the Committee shall consist of two (2) or more
members of the Board, each of whom is a “non-employee director” (within the meaning of Rule 16b-3 promulgated under
the Exchange Act), an “outside director” (within the meaning of Code Section 162(m)) and an “independent director”
(within the meaning of the rules of the securities exchange that then constitutes the principal listing for the Stock). Subject
to the applicable rules of any securities exchange or similar entity, if the Committee does not exist, or for any other reason
determined by the Board, the Board may take any action under the Plan that would otherwise be the responsibility of the Committee.

 

Section
5.2           Powers of Committee.  The Committee’s
administration of the Plan shall be subject to the other provisions of the Plan and the following:

 

(a)          The
Committee shall have the authority and discretion to select from among the Company’s and the Subsidiary’s employees,
directors, and service providers those persons who shall receive Awards, to determine the time or times of receipt, to determine
the types of Awards and the number of Shares covered by the Awards, to establish the terms of Awards, to cancel or suspend Awards,
and to reduce or eliminate any restrictions or vesting requirements applicable to an Award at any time after the grant of the Award.

 

(b)          In
the event that the Committee determines that it is advisable to grant Awards that do not qualify for the exception for Performance-Based
Compensation from the tax deductibility limitations of Code Section 162(m), the Committee may grant such Awards without satisfying
the requirements of Code Section 162(m).

 

(c)          The
Committee shall have the authority and discretion to interpret the Plan, to establish, amend, and rescind any rules and regulations
relating to the Plan, and to make all other determinations that may be necessary or advisable for the administration of the Plan.

 

(d)          The
Committee shall have the authority to define terms not otherwise defined in the Plan.

 

     

     

    

 

(e)          Any
interpretation of the Plan by the Committee and any decision made by it under the Plan shall be final and binding on all persons.

 

(f)          In
controlling and managing the operation and administration of the Plan, the Committee shall take action in a manner that conforms
to the articles and bylaws of the Company and to all applicable law.

 

Section
5.3           Delegation by Committee.  Except
to the extent prohibited by applicable law, the applicable rules of any securities exchange or similar entity, the Plan, or the
charter of the Committee, or as necessary to comply with the exemptive provisions of Rule 16b-3 of the Exchange Act or of Code
Section 162(m), the Committee may allocate all or any portion of its responsibilities and powers under the Plan to any one (1)
or more of its members and may delegate all or any part of its responsibilities and powers under the Plan to any person or persons
selected by it. The acts of such delegates shall be treated under the Plan as acts of the Committee and such delegates shall report
regularly to the Committee regarding the delegated duties and responsibilities and any Awards granted. Any such allocation or delegation
may be revoked by the Committee at any time.

 

Section
5.4           Information to be Furnished to Committee. 
As may be permitted by applicable law, the Company and each Subsidiary shall furnish the Committee with such data and information
as it determines may be required for it to discharge its duties under the Plan.  The records of the Company and each Subsidiary
as to an employee’s or Participant’s employment, termination of employment, leave of absence, reemployment, and compensation
shall be conclusive with respect to all persons unless determined by the Committee to be manifestly incorrect.  Subject to
applicable law, Participants and other persons entitled to benefits under the Plan shall furnish the Committee such evidence, data,
or information as the Committee considers desirable to carry out the terms of the Plan.

 

Section
5.5           Expenses and Liabilities. All expenses
and liabilities incurred by the Committee in the administration and interpretation of the Plan or any Award Agreement shall be
borne by the Company. The Committee may employ attorneys, consultants, accountants, or other persons in connection with the administration
and interpretation of the Plan, and the Company, and its officers and directors, shall be entitled to rely upon the advice, opinions,
and valuations of any such persons.

 

Article 6

AMENDMENT AND TERMINATION

 

Section
6.1           General.  The Board may, as
permitted by law, at any time, amend or terminate the Plan, and may amend any Award Agreement; provided, however,
that no amendment or termination may (except as provided in Section 2.6, Section 3.4, and Section 6.2), in
the absence of written consent to the change by the affected Participant (or, if the Participant is not then living, the affected
beneficiary), impair the rights of any Participant or beneficiary under any Award granted prior to the date such amendment or termination
is adopted by the Board; and provided, further, that no amendment may (a) materially increase the benefits accruing
to Participants under the Plan, (b) materially increase the aggregate number of securities that may be delivered under the
Plan other than pursuant to Section 3.4, or (c) materially modify the requirements for participation in the Plan, unless
the amendment under (a), (b) or (c) immediately above is approved by the Stockholders.

 

Section
6.2           Amendment to Conform to Law. 
Notwithstanding any provision of the Plan or an Award Agreement to the contrary, the Committee may amend the Plan or any Award
Agreement, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming the Plan or
the Award Agreement to any applicable law. By accepting an Award, the Participant shall be deemed to have acknowledged and consented
to any amendment to an Award made pursuant to this  Section 6.2, Section 2.6, or Section 3.4, without
further consideration or action.

 

     

     

    

 

Article 7

GENERAL TERMS

 

Section
7.1           No Implied Rights.

 

(a)          No
Rights to Specific Assets.  No person shall by reason of participation in the Plan acquire any right in or title to any
assets, funds, or property of the Company or any Subsidiary, including any specific funds, assets, or other property that the Company
or a Subsidiary, in its sole discretion, may set aside in anticipation of a liability under the Plan.  A Participant shall
have only a contractual right to the Shares or amounts, if any, distributable in accordance with the provisions of the Plan, unsecured
by any assets of the Company or any Subsidiary, and nothing contained in the Plan or an Award Agreement shall constitute a guarantee
that the assets of the Company or any Subsidiary shall be sufficient to provide any benefits to any person.

 

(b)          No
Contractual Right to Employment or Future Awards.  The Plan does not constitute a contract of employment, and selection
as a Participant shall not give any person the right to be retained in the service of the Company or a Subsidiary or any right
or claim to any benefit under the Plan, unless such right or claim has specifically accrued under the Plan.  No individual
shall have the right to be selected to receive an Award, or, having been so selected, to receive a future Award.

 

(c)          No
Rights as a Stockholder. Except as otherwise provided in the Plan, no Award shall confer upon the holder thereof any rights
as a Stockholder prior to the date on which the individual fulfills all conditions for receipt of such rights.

 

Section
7.2           Transferability.  Except as
otherwise provided by the Committee, Awards are not transferable except as designated by the Participant by will or by the laws
of descent and distribution or pursuant to a domestic relations order. The Committee shall have the discretion to permit the transfer
of Awards; provided, however, that such transfers shall be limited to immediate family members of Participants, trusts,
partnerships, limited liability companies, and other entities that are permitted to exercise rights under Awards in accordance
with Form S-8 established for the primary benefit of such family members; and provided, further, that such transfers shall
not be made for value to the Participant.

 

Section
7.3           Designation of Beneficiaries. 
A Participant hereunder may file with the Company a designation of a beneficiary or beneficiaries under the Plan and may from time
to time revoke or amend any such designation. Any designation of beneficiary under the Plan shall be controlling over any other
disposition, testamentary or otherwise; provided, however, that if the Committee is in doubt as to the entitlement of any
such beneficiary to any Award, the Committee may determine to recognize only the legal representative of the Participant in which
case the Company, the Committee, and the members thereof shall not have any further liability to anyone.

 

Section
7.4           Non-Exclusivity.  Neither the
adoption of the Plan by the Board nor the submission of the Plan to the Stockholders for approval shall be construed as creating
any limitations on the power of the Board or the Committee to adopt such other incentive arrangements as either may deem desirable,
including the granting of restricted stock, stock options, or other equity awards otherwise than under the Plan or an arrangement
that is or is not intended to qualify under Code Section 162(m), and such arrangements may be either generally applicable or applicable
only in specific cases.

 

Section
7.5           Award Agreement.  Each Award
shall be evidenced by an Award Agreement. A copy of the Award Agreement, in any medium chosen by the Committee, shall be made available
to the Participant, and the Committee may require that the Participant sign a copy of the Award Agreement.

 

Section
7.6           Form and Time of Elections.  Unless
otherwise specified in the Plan, each election required or permitted to be made by any Participant or other person entitled to
benefits under the Plan, and any permitted modification, or revocation thereof, shall be filed with the Company at such times,
in such form, and subject to such terms or conditions, not inconsistent with the provisions of the Plan, as the Committee may require.

 

Section
7.7           Evidence.  Evidence required
of anyone under the Plan may be by certificate, affidavit, document, or other information that the person acting on it considers
pertinent and reliable, and signed, made, or presented by the proper party or parties.

 

     

     

    

 

Section
7.8           Tax Withholding.  All distributions
under the Plan shall be subject to withholding of all applicable taxes and the Committee may condition the delivery of any Shares
or other benefits under the Plan on satisfaction of the applicable withholding obligations.  Except as otherwise provided
by the Committee, such withholding obligations may be satisfied (a) through cash payment by the Participant; (b) through
the surrender of Shares that the Participant already owns, or (c) through the surrender of Shares to which the Participant
is otherwise entitled under the Plan; provided, however, that except as otherwise specifically provided by the Committee,
such Shares under clause (c) may not be used to satisfy more than the Company’s minimum statutory withholding obligation.

 

Section
7.9           Successors.  All obligations
of the Company under the Plan shall be binding upon and inure to the benefit of any successor to the Company.

 

Section
7.10         Indemnification.  To the fullest extent
permitted by law, each person who is or shall have been a member of the Committee or the Board, or an officer of the Company to
whom authority was delegated in accordance with Section 5.3, or an employee of the Company shall be indemnified and held
harmless by the Company against and from any loss (including amounts paid in settlement), cost, liability, or expense (including
reasonable attorneys’ fees) that may be imposed upon or reasonably incurred by him or her in connection with or resulting
from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of
any action taken or failure to act under the Plan, and against and from any and all amounts paid by him or her in settlement thereof,
with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding
against him or her (provided that he or she shall give the Company an opportunity, at its own expense, to handle and defend
the same before he or she undertakes to handle and defend it on his or her own behalf), unless such loss, cost, liability, or expense
is a result of his or her own willful misconduct or except as expressly provided by statute. The foregoing right of indemnification
shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s charter
or bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.

 

Section
7.11         No Fractional Shares.  Unless otherwise
permitted by the Committee, no fractional Shares shall be delivered pursuant to the Plan or any Award. The Committee shall determine
whether cash, Shares, or other property shall be delivered or paid in lieu of fractional Shares or whether such fractional Shares
or any rights thereto shall be forfeited or otherwise eliminated.

 

Section
7.12         Governing Law.  The Plan, all Awards, and
all actions taken in connection herewith and therewith shall be governed by and construed in accordance with the laws of the State
of Delaware without reference to principles of conflict of laws, except as superseded by applicable federal law.

 

Section
7.13         Benefits under Other Plans.  Except as
otherwise provided by the Committee, Awards granted to a Participant (including the grant and the receipt of benefits) shall be
disregarded for purposes of determining the Participant’s benefits under, or contributions to, any qualified retirement plan,
nonqualified plan, and any other benefit plan maintained by the Participant’s employer.

 

Section
7.14         Validity.  If any provision of the Plan
is determined to be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining provisions
of the Plan, and the Plan shall be construed and enforced as if such illegal or invalid provision had never been included in the
Plan.

 

Section
7.15         Notice.  Unless provided otherwise in an
Award Agreement or policy adopted from time to time by the Committee, all communications to the Company provided for in the Plan,
or any Award Agreement, shall be delivered personally or sent by registered or certified mail, return receipt requested, postage
prepaid (provided that international mail shall be sent via overnight or two (2)-day
delivery) or by prepaid overnight courier to the Company at the address set forth below:

 

     

     

    

 

Landmark Bancorp, Inc.

Attention: Corporate Secretary

701 Poyntz Avenue

Manhattan, Kansas 66505

 

Such communications shall
be deemed given:

 

(a)          In
the case of delivery by overnight service with guaranteed next day delivery, the next day or the day designated for delivery; and

 

(b)          In
the case of certified or registered U.S. mail, five (5) days after deposit in the U.S. mail;

 

provided, however, that in no event shall any communication
be deemed to be given later than the date it is actually received, provided it is actually received. In the event a communication
is not received, it shall be deemed received only upon the showing of an original of the applicable receipt, registration, or confirmation
from the applicable delivery service provider. Communications that are to be delivered by U.S. mail or by overnight service to
the Company shall be directed to the attention of the Company’s senior human resources officer and corporate secretary.

 

Section
7.16         Clawback Policy. Any Award, amount, or benefit
received under the Plan shall be subject to potential cancellation, recoupment, rescission, payback, or other similar action in
accordance with any applicable Company clawback policy (the “Policy”) or any applicable law. A Participant’s
receipt of an Award shall be deemed to constitute the Participant’s acknowledgment of and consent to the Company’s
application, implementation, and enforcement of (i) the Policy and any similar policy established by the Company, whether
adopted prior to or following the making of any Award and (ii) any provision of applicable law relating to cancellation, rescission,
payback, or recoupment of compensation, as well as the Participant’s express agreement that the Company may take such actions
as are necessary to effectuate the Policy, any similar policy, and applicable law, without further consideration or action.

 

Section
7.17         Breach of Restrictive Covenants. Except as otherwise
provided by the Committee, notwithstanding any provision of the Plan to the contrary, if the Participant breaches a non-competition,
non-solicitation, non-disclosure, non-disparagement, or other restrictive covenant set forth in an Award Agreement or any other
agreement between the Participant and the Company or a Subsidiary, whether during or after the Participant’s Termination
of Service, in addition to any other penalties or restrictions that may apply under any such agreement, state law, or otherwise,
the Participant shall forfeit or pay to the Company:

 

(a)          Any
and all outstanding Awards granted to the Participant, including Awards that have become vested or exercisable;

 

(b)          Any
Shares held by the Participant in connection with the Plan that were acquired by the Participant after the Participant’s
Termination of Service and within the twelve (12)-month period immediately preceding the Participant’s Termination of
Service;

 

(c)          The
profit realized by the Participant from the exercise of any stock options and SARs that the Participant exercised after the Participant’s
Termination of Service and within the twelve (12)-month period immediately preceding the Participant’s Termination of
Service, which profit is the difference between the exercise price of the stock option or SAR and the Fair Market Value of any
Shares or cash acquired by the Participant upon exercise of such stock option or SAR; and

 

(d)          The
profit realized by the Participant from the sale, or other disposition for consideration, of any Shares received by the Participant
in connection with the Plan after the Participant’s Termination of Service, and within the twelve (12)-month period
immediately preceding the Participant’s Termination of Service where such sale or disposition occurs in such similar time
period.

 

     

     

    

 

Article 8

DEFINED TERMS; CONSTRUCTION

 

Section
8.1           In addition to the other definitions contained
in the Plan, unless otherwise specifically provided in an Award Agreement, the following definitions shall apply:

 

(a)          “10%
Stockholder” means an individual who, at the time of grant, owns Voting Securities possessing more than ten percent (10%)
of the total combined voting power of the Voting Securities.

 

(b)          “Award”
means an award under the Plan.

 

(c)          “Award
Agreement” means the document that evidences the terms and conditions of an Award. Such document shall be referred to
as an agreement regardless of whether a Participant’s signature is required.

 

(d)          “Board”
means the Board of Directors of the Company.

 

(e)          If
the Participant is subject to an employment agreement (or other similar agreement) with the Company or a Subsidiary that provides
a definition of termination for “cause” (or the like), then, for purposes of the Plan, the term “Cause”
has the meaning set forth in such agreement; and in the absence of such a definition, “Cause” means:

 

(i)          The
Participant’s willful and continuing failure to perform the Participant’s obligations to the Company or a Subsidiary;

 

(ii)         The
Participant’s conviction of, or plea of nolo contendere to, a crime of embezzlement or fraud or any felony under the
laws of the United States or any state thereof;

 

(iii)        The
Participant’s breach of fiduciary responsibility;

 

(iv)        An
act of dishonesty by the Participant that is injurious to the Company or a Subsidiary;

 

(v)         The
Participant’s engagement in one (1) or more unsafe or unsound banking practices that has an adverse effect on the Company
or a Subsidiary;

 

(vi)        The
Participant’s removal or permanent suspension from banking pursuant to Section 8(e) of the FDIA or any other applicable state
or federal law;

 

(vii)       An
act or omission by the Participant that leads to a harm (financial or reputational or otherwise) to the Company or a Subsidiary;
or

 

(viii)      A
material breach by the Participant of Company policies as may be in effect from time to time.

 

Further, a termination
for Cause shall be deemed to have occurred if, within twelve (12) months following the termination, facts and circumstances arising
during the course of such employment are discovered that would have warranted a termination for Cause.

 

Further, all rights
the Participant has or may have under the Plan shall be suspended automatically during the pendency of any investigation by the
Board or its designee or any negotiations between the Board or its designee and the Participant regarding any actual or alleged
act or omission by the Participant of the type that would warrant a termination for Cause, and any such suspension shall not give
rise to a claim of Good Reason by the Participant.

 

(f)          “Change
in Control” has the meaning set forth in Section 4.2.

 

(g)          “Code”
means the Internal Revenue Code of 1986.

 

     

     

    

 

(h)          “Committee”
means the Committee acting under Article 5, and in the event a Committee is not currently appointed, the Board.

 

(i)          “Company”
means Landmark Bancorp, Inc., a Delaware corporation.

 

(j)          “Director
Participant” means a Participant who is a member of the Board or the board of directors of a Subsidiary.

 

(k)          “Disability”
means the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical
or mental impairment that can be expected to result in death or last for a continuous period of not less than twelve (12) months,
or is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or last for
a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three
(3) months under an accident or health plan covering the Company’s or a Subsidiary’s employees.

 

(l)          “Effective
Date” has the meaning set forth in Section 1.1.

 

(m)          “Exchange
Act” means the Securities Exchange Act of 1934.

 

(n)          “Fair
Market Value” means, as of any date, the officially-quoted closing selling price of the Shares on such date on the principal
national securities exchange on which Shares are listed or admitted to trading or, if there have been no sales with respect to
Shares on such date, such price on the most immediately preceding date on which there have been such sales, or if the Shares are
not so listed or admitted to trading, the Fair Market Value shall be the value established by the Committee in good faith and,
to the extent required, in accordance with Code Sections 422 and 409A.

 

(o)          “FDIA”
means the Federal Deposit Insurance Act.

 

(p)          “Form
S-8” means a Registration Statement on Form S-8 promulgated by the U.S. Securities and Exchange Commission.

 

(q)          If
the Participant is subject to an employment agreement (or other similar agreement) with the Company or a Subsidiary that provides
a definition of termination for “good reason” (or the like), then, for purposes of the Plan, the term “Good
Reason” has the meaning set forth in such agreement; and in the absence of such a definition, “Good Reason”
means the occurrence of any one (1) of the following events, unless the Participant agrees in writing that such event shall not
constitute Good Reason:

 

(i)          A
material, adverse change in the nature, scope, or status of the Participant’s position, authorities, or duties from those
in effect immediately prior to the applicable Change in Control;

 

(ii)         A
material reduction in the Participant’s aggregate compensation or benefits in effect immediately prior to the applicable
Change in Control; or

 

(iii)        Relocation
of the Participant’s primary place of employment of more than twenty-five (25) miles from the Participant’s primary
place of employment immediately prior to the applicable Change in Control, or a requirement that the Participant engage in travel
that is materially greater than prior to the applicable Change in Control.

 

Notwithstanding any
provision of this definition to the contrary, prior to the Participant’s Termination of Service for Good Reason, the Participant
must give the Company written notice of the existence of any condition set forth in clause (i) – (iii) immediately above
within ninety (90) days of its initial existence and the Company shall have thirty (30) days from the date of such notice in which
to cure the condition giving rise to Good Reason, if curable. If, during such thirty (30)-day period, the Company cures the condition
giving rise to Good Reason, the condition shall not constitute Good Reason. Further notwithstanding any provision of this definition
to the contrary, in order to constitute a termination for Good Reason, such termination must occur within twelve (12) months of
the initial existence of the applicable condition.

 

(r)          “Incumbent
Board” means the members of the Board as of the Effective Date.

 

     

     

    

 

(s)          “ISO”
means a stock option that is intended to satisfy the requirements applicable to an “incentive stock option” described
in Code Section 422(b).

 

(t)          “Participant”
has the meaning set forth in Section 1.2.

 

(u)          “Performance-Based
Compensation” has the meaning set forth in Code Section 162(m).

 

(v)         “Plan”
means the Landmark Bancorp, Inc. 2015 Stock Incentive Plan.

 

(w)          “Policy”
has the meaning set forth in Section 7.16.

 

(x)          “SAR”
has the meaning set forth in Section 2.1(b).

 

(y)          “Securities
Act” means the Securities Act of 1933.

 

(z)          “Share”
means a share of Stock.

 

(aa)         “Stockholders”
means the stockholders of the Company.

 

(bb)         “Stock”
means the common stock of the Company, no par value per share.

 

(cc)         “Subsidiary”
means any corporation or other entity that would be a “subsidiary corporation” (as defined in Code Section 424(f))
with respect to the Company.

 

(dd)         “Termination
of Service” means the first day occurring on or after a grant date on which the Participant ceases to be an employee
and director of, and service provider to, the Company and each Subsidiary, regardless of the reason for such cessation, subject
to the following:

 

(i)          The
Participant’s cessation as an employee or service provider shall not be deemed to occur by reason of the Participant’s
being on a leave of absence from the Company or a Subsidiary approved by the Company or Subsidiary otherwise receiving the Participant’s
services.

 

(ii)         If,
as a result of a sale or other transaction, the Subsidiary for whom the Participant is employed (or to whom the Participant is
providing services) ceases to be a Subsidiary, and the Participant is not, following the transaction, an employee or director of,
or service provider to, the Company or an entity that is then a Subsidiary, then the occurrence of such transaction shall be treated
as the Participant’s Termination of Service caused by the Participant being discharged by the entity for whom the Participant
is employed or to whom the Participant is providing services.

 

(iii)        A
service provider, other than an employee or director, whose services to the Company or a Subsidiary are governed by a written agreement
with such service provider shall cease to be a service provider at the time the provision of service under such written agreement
ends (without renewal); and such a service provider whose services to the Company or a Subsidiary are not governed by a written
agreement with the service provider shall cease to be a service provider on the date that is ninety (90) days after the date the
service provider last provides services requested by the Company or a Subsidiary.

 

(iv)        Notwithstanding
the foregoing, in the event that any Award constitutes deferred compensation, the term Termination of Service shall be interpreted
by the Committee in a manner consistent with the definition of “separation from service” (as defined in Code Section
409A).

 

(ee)         “Voting
Securities” means any securities that ordinarily possess the power to vote in the election of directors without the happening
of any precondition or contingency.

 

Section
8.2           In the Plan, unless otherwise stated, the following
uses apply:

 

(a)          Actions
permitted under the Plan may be taken at any time in the actor’s reasonable discretion;

 

     

     

    

 

(b)          References
to a statute or law shall refer to the statute or law and any amendments and any successor statutes or laws, and to all regulations
promulgated under or implementing the statute or law, as amended, or its successors, as in effect at the relevant time;

 

(c)          In
computing periods from a specified date to a later specified date, the words “from” and “commencing on”
(and the like) mean “from and including,” and the words “to,” “until,” and “ending on”
(and the like) mean “to and including”;

 

(d)          References
to a governmental or quasi-governmental agency, authority, or instrumentality shall also refer to a regulatory body that succeeds
to the functions of the agency, authority, or instrumentality;

 

(e)          Indications
of time of day shall be based upon the time applicable to the location of the principal headquarters of the Company;

 

(f)          The
words “include,” “includes,” and “including” mean “include, without limitation,”
“includes, without limitation,” and “including, without limitation,” respectively;

 

(g)          All
references to articles and sections are to articles and sections in the Plan;

 

(h)          All
words used shall be construed to be of such gender or number as the circumstances and context require;

 

(i)          The
captions and headings of articles and sections appearing in the Plan have been inserted solely for convenience of reference and
shall not be considered a part of the Plan, nor shall any of them affect the meaning or interpretation of the Plan or any of its
provisions;

 

(j)          Any
reference to an agreement, plan, policy, form, document, or set of documents, and the rights and obligations of the parties under
any such agreement, plan, policy, form, document, or set of documents, shall mean such agreement, plan, policy, document, or set
of documents as amended from time to time, and any and all modifications, extensions, renewals, substitutions or replacements thereof;
and

 

(k)          All
accounting terms not specifically defined in the Plan shall be construed in accordance with GAAP.

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