Document:

AutoChina
International Limited

 

Executive
Employment Agreement

 

This EXECUTIVE EMPLOYMENT AGREEMENT (the
"Agreement"), entered into as of April 9, 2012, by and between AutoChina International Limited, a company organized
under the laws of the Cayman Islands (the "Company") and Lei Chen (the "Executive") (collectively,
the "Parties"). 

 

RECITALS

 

A.           The
Company desires to employ the Executive as its Senior Vice President and to assure itself of the services of the Executive for
the Period of Employment (as defined below).

 

B.           The
Executive desires to be employed by the Company as its Senior Vice President for the Period of Employment and upon the terms and
conditions of this Agreement.

 

AGREEMENT

 

ACCORDINGLY, the Parties agree as follows:

 

1.          Term
of Employment. The Company shall employ the Executive to render services to the Company in the position and with the duties
and responsibilities described in Section 2 for a period of three (3) years starting from the date of this Agreement (the "Period
of Employment"), unless the Period of Employment is terminated sooner in accordance with Sections 4 or 5 below or extended
upon mutual agreement of the Parties.

 

2.          Position,
Duties, Responsibilities. 

 

2.1        Position.
The Executive shall render services to the Company in the position of Senior Vice President and shall perform all services appropriate
to that position as well as such other services as may reasonably be assigned by the Company, including serving as the Senior Vice
President of Hebei Chuanglian Trade Co., Ltd. (), an indirectly wholly-owned subsidiary of the Company established in
the People's Republic of China (the "PRC") ("Chuanglian") and any other direct or indirect subsidiary
of the Company. The Executive's principal place of employment shall be at any location decided by the board of directors of the
Company. The Executive shall devote his best efforts and full-time attention to the performance of his duties. The Executive shall
report to the board of directors of the Company.

 

2.2        Other
Activities. Except upon the prior written consent of the board of directors of the Company, the Executive shall not (i) accept
any other employment (except for academic employment, position in industrial or professional associations, non-executive director
of other companies which do not compete with the Company's business provided that such other companies purchase director liability
insurance), (ii) engage, invest or assist, directly or indirectly, in any other business activity (whether or not pursued
for pecuniary advantage) that is or may be in conflict with, or that might place the Executive in a conflicting position to that
of the Company or (iii) act as the legal representative or an executive officer of another company (excluding any affiliates of
the Company) within or outside the PRC.

 

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2.3        Execution
of Chuanglian Employment Agreement. The Executive shall upon request of the Company execute an employment agreement with Chuanglian
or any other direct or indirect subsidiary of the Company (in each case, a "Subsidiary Employment Agreement")
in accordance with PRC laws and regulations, in the form substantially identical to this Agreement except for adjustments or alterations
required to comply with the relevant laws and regulations of the PRC.

 

3.          Compensation
and Holiday. In consideration of the services to be rendered under this Agreement, the Executive shall be entitled to the following:

 

3.1        Base
Salary. The Company and the Executive shall agree to a "Base Salary," subject to adjustment in accordance
with Section 3.2 below. The Base Salary shall be paid in accordance with the Company's regularly established payroll practices.

 

3.2        Salary
Adjustment. The Executive's Base Salary will be reviewed from time to time in accordance with the established procedures of
the Company for adjusting salaries for similarly situated employees and may be adjusted in the sole discretion of the Company.

 

3.3        Benefits.
The Executive shall be eligible to participate in the benefits made generally available by the Company to similarly-situated executives,
in accordance with the benefit plans established by the Company (including the Company’s Equity Incentive Plan), and as may
be amended from time to time in the Company's sole discretion.

 

3.4        Bonus.
The Executive shall not be entitled to any bonus unless otherwise approved by the board of directors of the Company in its sole
discretion.

 

3.5        Holidays.
The Executive shall be entitled, in addition to applicable statutory public holidays, to take (14) working days as paid holiday
in each full calendar year. If the Executive's employment commences or terminates part way through a calendar year, his entitlement
to holidays will be assessed on a pro-rata basis in accordance with the Company's holiday policy, as it may change from time to
time.

 

3.6        Insurance.
The Company shall purchase life insurance and medical insurance for the Executive pursuant to applicable standards.

 

3.7        Others.
The salary and welfare provided respectively in the Subsidiary Employment Agreements and this Agreement shall not be cumulative.
If there is any discrepancy between the above provisions in Article 3 herein and the salary and other welfare provided in the Subsidiary
Employment Agreements, the Executive shall, in addition to the salary and welfare provided in the Subsidiary Employment Agreements,
be entitled to the additional amount of the salary and welfare (if any) provided in this Agreement only to the extent it exceeds
those provided in the Subsidiary Employment Agreements.

 

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4.          Termination
By Company. 

 

4.1        Termination
for Cause. For purposes of this Agreement, "For Cause" shall mean the occurrence of any of the following,
subject only to any statutory requirement of any applicable law: (i) the failure of the Executive to properly carry out his duties
after notice by the Company of the failure to do so and a reasonable opportunity for the Executive to correct the same within a
reasonable period specified by the Company; (ii) any breach by the Executive of one or more provisions of any written agreement
with, or written policies of, the Company or his fiduciary duties to the Company likely to cause material harm to the Company and
its affiliates, at the Company's reasonable discretion, or (iii) any theft, fraud, dishonesty or serious misconduct by the Executive
involving his duties or the property, business, reputation or affairs of the Company and its affiliates. The Company may terminate
the Executive's employment For Cause at any time, without any advance notice or payment in lieu of notice. The Company shall pay
to the Executive all compensation prescribed under Section 3 hereof to which the Executive is entitled up through the date of termination,
subject to any other rights or remedies of the Company under law, and thereafter all obligations of the Company under this Agreement
shall cease.

 

4.2        By
Death. The Executive's employment shall terminate automatically upon the Executive's death. The Company shall pay to the Executive's
beneficiaries or estate, as appropriate, any compensation then due and owing under Section 3 hereof to which the Executive is entitled
up through the date of termination, subject to any other rights or remedies of the Company under law, and thereafter all obligations
of the Company under this Agreement shall cease. Nothing in this section shall affect any entitlement of the Executive's heirs
or devisees to the benefits of any life insurance plan or other applicable benefits, if any. If the Executive dies during the course
of or in connection with the performance of his duty, subject to applicable laws, the Company shall pay to the Executive's beneficiaries
or estate, as appropriate, a special compensation not exceeding the annual Base Salary as provided in Article 3.1 above, as decided
by the board of directors of the Company.

 

4.3        By
Disability. If the Executive becomes eligible for the Company's long-term disability benefits or if, in the sole opinion
of the Company, the Executive is unable to carry out the responsibilities and functions of the position held by the Executive by
reason of any physical or mental impairment for more than ninety (90) consecutive days or more than one hundred twenty (120) days
in any twelve-month period, then, to the extent permitted by law, the Company may terminate the Executive's employment. The Company
shall pay to the Executive all compensation prescribed under Section 3 hereof to which the Executive is entitled up through the
date of termination, and thereafter all obligations of the Company under this Agreement shall cease. Nothing in this section shall
affect the Executive's rights under any disability plan in which the Executive is a participant, if any.

 

4.4        Other
Termination by Company. In addition to Sections 4.1 through 4.3, the Company may at any time terminate the employment of the
Executive without cause by giving one (1) month written notice to the Executive, in which case the Executive will be eligible to
receive an amount equal to three (3) months of the then-current Base Salary of the Executive payable in the form of salary continuation.
Such severance shall be reduced by any remuneration paid to the Executive because of the Executive's employment or self-employment
during the severance period, and the Executive shall promptly report all such remuneration to the Company in writing. The Executive's
eligibility for severance is conditioned on the Executive having first signed a Termination Certificate in the form attached as
Exhibit A. The Executive shall not be entitled to any severance payments if the Executive's employment is terminated For
Cause, by death or by disability (as provided above) or if the Executive's employment is terminated by the Executive for any reason
other than Good Reason, as defined below.

 

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5.          Termination
By Executive. 

 

5.1        Termination
by Executive other than for Good Reason. The Executive may terminate employment with the Company at any time for any reason
or no reason at all, upon three (3) months' advance written notice. During such notice period the Executive shall continue to diligently
perform all of the Executive's duties hereunder. The Company shall have the option, in its sole discretion, to make the Executive's
termination effective at any time prior to the end of such notice period as long as the Company pays the Executive all compensation
under Section 3 hereof to which the Executive is entitled up through the last day of the three (3) months' notice period. Thereafter
all obligations of the Company shall cease. Unless the Executive terminates his employment for Good Reason, as provided in Section
5.2, no severance or other separation benefits shall be paid to the Executive.

 

5.2        Termination
for Good Reason After Change in Control. The Executive's termination shall be for Good Reason (as defined below)
if the Executive provides written notice to the Company of the Good Reason within three (3) months of the event constituting Good
Reason and provides the Company with a period of twenty (20) days to cure the Good Reason and the Company fails to cure the Good
Reason within that period. For purposes of this Agreement, "Good Reason" shall mean a material reduction in the
Executive's Base Salary, except for reductions that are comparable to reductions generally applicable to similarly situated executives
of the Company if (i) such reduction is effected by the Company without the consent of the Executive and (ii) such event
occurs within three (3) months after a Change in Control (as hereinafter defined). For purposes of this Agreement, a "Change
in Control" of the Company shall be deemed to have occurred when: (i) the shareholders of the Company approve a merger
or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the shareholders
of the Company immediately prior thereto holding fifty percent (50%) or more of the outstanding voting securities of the Company
or the surviving entity immediately after such merger or consolidation; or (ii) the shareholders of the Company approve either
a plan of liquidation or dissolution of the Company or an agreement for the sale, lease, exchange or other transfer or disposition
by the Company of fifty-percent (50%) or more of the Company's assets. If the Executive terminates his employment for Good Reason,
the Executive will be eligible to receive an amount equal to one (1) month of the Executive's then-current Base Salary payable
in the form of salary continuation. Thereafter all obligations of the Company or its successor under this Agreement shall cease.
Any severance shall be reduced by any remuneration paid to the Executive because of the Executive's employment or self-employment
during the severance period, and the Executive shall promptly report all such remuneration to the Company or its successor in
writing. The Executive's eligibility for severance is conditioned on the Executive having first signed a Termination Certificate
in the form attached as Exhibit A.

 

6.          Termination
Obligations. 

 

The Executive agrees that on or before termination
of employment, he will promptly return to the Company all documents and materials of any nature pertaining to his work with the
Company, including all originals and copies of all or any part of any Proprietary Information or Inventions (as defined below)
along with any and all equipment and other tangible and intangible property of the Company. The Executive agrees not to retain
any documents or materials or copies thereof containing any Proprietary Information or Inventions.

 

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The Executive further agrees that: (i)
all representations, warranties, and obligations under Articles 6, 7, 8, 10, 11, 12, 14.1, 14.2 and 14.3 contained in this Agreement
shall survive the termination of the Period of Employment; (ii) the Executive's representations, warranties and obligations under
Articles 6, 7, 8, 10, 11, 12, 14.1, 14.2 and 14.3 shall also survive the expiration of this Agreement; and (iii) following any
termination of the Period of Employment, the Executive shall fully cooperate with the Company in all matters relating to his continuing
obligations under this Agreement, including but not limited to the winding up of pending work on behalf of the Company, the orderly
transfer of work to the other employees of the Company, and the defense of any action brought by any third party against the Company
that relates in any way to the Executive's acts or omissions while employed by the Company. The Executive also agrees to sign
and deliver the Termination Certificate attached hereto as Exhibit A prior to his termination of employment with the Company.

 

7.          Post-Termination
Activity. 

 

7.1        No
Use of Proprietary Information. The Executive acknowledges that the pursuit of the activities forbidden by this subsection
would necessarily involve the use or disclosure of Proprietary Information in breach of this Agreement, but that proof of such
a breach would be extremely difficult. To forestall such disclosure, use, and breach, and in consideration of the employment under
this Agreement, the Executive also agrees that while employed by the Company, and for a period of one (1) year after termination
of the Executive's employment, the Executive shall not, directly or indirectly:

 

(i)          divert
or attempt to divert from the Company or any Affiliate ("Affiliate" shall mean any person or entity that directly,
or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with such entity).
For the purposes of this definition "control" means the possession, directly or indirectly, of the power to direct
or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract
or otherwise, and includes (x) ownership directly or indirectly of 50% or more of the shares in issue or other equity interests
of such person, (y) possession directly or indirectly of 50% or more of the voting power of such person or (z) the power directly
or indirectly to appoint a majority of the members of the board of directors or similar governing body of such person, and the
terms "controlling" and "controlled" have meanings correlative to the foregoing) any business
of any kind in which it is engaged, including, without limitation, soliciting business from or performing services for, any persons,
company or other entity which at any time during the Executive's employment by the Company is a client, supplier, or customer of
the Company or prospective client, supplier, or customer of the Company if such business or services are of the same general character
as those engaged in or performed by the Company;

 

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(ii)         solicit
or otherwise induce any person to terminate his employment or consulting relationship with the Company or any Affiliate; and

 

(iii)        engage,
invest or assist in any business activity that directly or indirectly competes with any business plan of the Company or any Affiliate.

 

In addition, because the Executive acknowledges
the difficulty of establishing when any intellectual property, invention, or proprietary information is first conceived or developed
by the Executive, or whether it results from access to Proprietary Information or the Company equipment, supplies, facilities,
or data, the Executive agrees that any intellectual property, invention, or proprietary information shall be reported to the Company
and, unless proven otherwise to the reasonable satisfaction of the Company, shall be presumed to be an Invention for the purpose
of this Agreement and shall be subject to all terms and conditions hereof, if reduced to practice by the Executive or with the
aid of the Executive within one (1) year after termination of the Period of Employment.

 

7.2        No
Competition. Notwithstanding Section 7.1 above, while employed by the Company and for a period equal to the greater of one
(1) year after the termination of the Executive's employment with the Company for any reason whatsoever, the Executive shall not,
directly or indirectly, as an executive, employer, employee, consultant, agent, principal, partner, manager, stockholder, officer,
director, or in any other individual or representative capacity, engage or participate in any business within the PRC and/or Hong
Kong that is competitive with the business of the Company or any Affiliate. Notwithstanding the foregoing, the Executive may own
less than one percent (1%) of any class of stock or security of any corporation listed on an internationally recognized securities
exchange which competes with the Company.

 

7.3        Enforceability.
The covenants of this Article 7 are several and separate, and the unenforceability of any specific covenant shall not affect the
provisions of any other covenant. If any provision of this Article 7 relating to the time period or geographic area of the restrictive
covenants shall be declared by a court of competent jurisdiction to exceed the maximum time period or geographic area, as applicable,
that such court deems reasonable and enforceable, then this Agreement shall automatically be considered to have been amended and
revised to reflect the maximum time period or geographic area that such court deems enforceable.

 

7.4        Independent
Covenants. All of the covenants in this Article 7 shall be construed as an agreement independent of any other provision in
this Agreement, and the existence of any claim or cause of action of the Executive against the Company or any of its Affiliates,
whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of such covenants.

 

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8.          Proprietary
Information.

 

The Executive agrees during his employment
with the Company and within three (3) years thereafter, to hold in strictest confidence and trust, and not to use or disclose to
any person, firm or corporation any Proprietary Information without the prior written consent of the Company, except as necessary
in carrying out his duties as an employee of the Company for the benefit of the Company. "Proprietary Information"
means any information of a proprietary, confidential or secret nature that may be disclosed to the Executive that relates to the
business of the Company or of any parent, subsidiary, Affiliate, customer or supplier of the Company or any other party with whom
the Company agrees to hold information of such party in confidence ("Relevant Parties"). Such Proprietary Information
includes, but is not limited to, Inventions (as defined below), research, product plans, products, services, business strategies,
personnel information, customer lists, customers, markets, technical information, forecasts, marketing, finances or other business
information of the Company and its Affiliates. This information shall remain confidential whether it was disclosed to the Executive
either directly or indirectly in writing, orally or by drawings or observation. The Executive understands that Proprietary Information
does not include any of the foregoing items which has become publicly known and made generally available through no wrongful act
of the Executive or others who were under confidentiality obligations as to the items involved.

 

9.          Former
Employer Information.

 

The Executive agrees that he will not, during
his employment with the Company, improperly use or disclose any proprietary information or trade secrets, or bring onto the premises
of the Company any unpublished document or proprietary information belonging to any former or concurrent employer or other person
or entity (excluding Chuanglian and any other direct or indirect subsidiary of the Company).

 

10.         Third
Party Information.

 

The Executive recognizes that the Company
has received and in the future will receive confidential or proprietary information from third parties. The Executive agrees to
hold all such confidential or proprietary information in the strictest confidence and trust, and not to disclose it to any person,
firm or corporation or to use it except as necessary in carrying out his work for the Company consistent with the Company's agreement
with such third party.

 

11.         No
Conflict.

 

The Executive represents and warrants that the
Executive's execution of this Agreement, his employment with the Company, and the performance of his proposed duties under
this Agreement shall not violate any obligations he may have to any former employer or other party, including any obligations
with respect to proprietary or confidential information or intellectual property rights of such party.

 

12.         Inventions.

 

12.1       Inventions
Retained and Licensed. The Executive has attached, as Exhibit C, a list describing all inventions, original works of
authorship, developments, improvements, and trade secrets which were made by the Executive prior to the Executive's employment
with the Company ("Prior Inventions"), which belong to the Executive, and which relate to the Company's actual
and/or proposed business, products or research and development. If, in the course of his employment with the Company, the Executive
incorporates into a Company product, process or machine a Prior Invention owned by the Executive or in which the Executive has
an interest, the Company is hereby granted and shall have a non-exclusive, royalty-free, irrevocable, perpetual, worldwide license
to make, have made, modify, use and sell such Prior Invention as part of or in connection with such product, process or machine.

 

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12.2       Assignment
of Inventions. The Executive agrees that he will promptly make full written disclosure to the Company, will hold in trust for
the sole right and benefit of the Company, and hereby irrevocably assign to the Company, or its designee, all the Executive's right,
title, and interest in and to any and all inventions, original works of authorship, developments, concepts, improvements, designs,
drawings, discoveries, ideas, formulas, processes, compositions of matter, software, databases, mask works, computer programs (including
all source codes) and related documentation, algorithms, engineering and reverse engineering, technology, hardware configuration
information, logos, trade names, trademarks, patents, patent applications, copyrights, trade secrets or know-how, which the Executive
may solely or jointly conceive or develop or reduce to practice, or cause to be conceived or developed or reduced to practice ("Inventions"),
while the Executive is employed by the Company. The Executive further acknowledges that all original works of authorship which
are made by the Executive (solely or jointly with others) within the scope of and during his employment with the Company and which
are protectible by copyright are "works made for hire," as that term is defined in the United States Copyright
Act and that the Company will be considered the author and owner of such works. The Executive understands and agrees that the decision
whether or not to commercialize or market any Invention developed by the Executive solely or jointly with others is within the
Company's sole discretion and for the Company's sole benefit and that no royalty will be due to the Executive as a result of the
Company's efforts to commercialize or market any such Invention.

 

12.3       Waiver
of Moral Rights. To the utmost extent legally permitted, the Executive also hereby forever waives and agrees never to assert
any and all Moral Rights (as defined below) he may have in or with respect to any Invention, even after termination of his work
on behalf of the Company. "Moral Rights" mean any rights to claim authorship of an Invention to object to or
prevent the modification of any Invention, or to withdraw from circulation or control the publication or distribution of any Invention,
and any similar right, existing under judicial or statutory law of any country in the world, or under any treaty, regardless of
whether or not such right is denominated or generally referred to as a "moral right."

 

12.4       Maintenance
of Records. The Executive agrees to keep and maintain adequate and current written records of all Inventions made by the Executive
(solely or jointly with others) during the Executive's employment with the Company. The records will be in the form of notes, sketches,
drawings, and any other format that may be specified by the Company. The records will be provided to, and remain the sole property
of, the Company at all times.

 

12.5       Patent
and Copyright Registrations. The Executive agrees to assist the Company, or its designee, at the Company's expense, in every
proper way, to secure the Company's rights in the Inventions and any copyrights, patents, mask work rights, trade secret rights
or other intellectual property rights relating thereto in any and all countries. The Executive will disclose to the Company all
pertinent information and data which the Company deems necessary for the execution of all applications, specifications, oaths,
assignments and execute all instruments necessary to apply for and obtain such rights and in order to assign and convey to the
Company, its successors, assigns, and nominees, the sole and exclusive right, title and interest in and to such Inventions, and
any copyrights, patents, mask work rights, or other intellectual property rights relating thereto. The Executive further agrees
that the Executive's obligation to execute or cause to be executed, when it is in the Executive power to do so, any such instrument
or papers shall continue after the termination of this Agreement. If the Company is unable, because of the Executive's mental or
physical incapacity or for any other reason, to secure his signature to apply for or to pursue any application for any patents
or copyright registrations covering the Inventions assigned to the Company as above, then the Executive hereby irrevocably designates
and appoints the Company and its duly authorized officers and agents as his agent and attorney in fact, to act for and in the Executive's
behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution
and issuance of letters, patent or copyright registrations thereon with the same legal force and effect as if executed by the Executive.

 

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13.         Alternative
Dispute Resolution. 

 

The Company and Executive mutually agree
that any controversy or claim arising out of or relating to this Agreement or the breach thereof, or any other dispute between
the parties, shall be submitted to mediation before a mutually agreeable mediator, which cost is to be borne equally by the parties
hereto. In the event the Parties fail to agree on a mediator, or mediation is unsuccessful in resolving the claim or controversy
within one (1) month after the commencement of mediation, such claim or controversy shall be resolved by arbitration in Hong Kong
under the auspices of the Hong Kong International Arbitration Centre.

 

14.         Miscellaneous.

 

14.1       Continuing
Obligations. The obligations in this Agreement will continue in the event that the Executive is hired, renders services to
or for the benefit of or is otherwise retained at any time by any present or future Affiliates of the Company. Any reference to
the Company in this Agreement will include such Affiliates. Upon the expiration or termination for any reason whatsoever of this
Agreement, the Executive shall forthwith resign from any employment of office with an Affiliate of the Company unless the board
of directors of the Company requests otherwise.

 

14.2       Notification.
The Executive hereby authorizes the Company to notify his actual or future employers of the terms of this Agreement and his responsibilities
hereunder.

 

14.3       Name
and Likeness Rights. The Executive hereby authorizes the Company to use, reuse, and to grant others the right to use and reuse,
his name, photograph, likeness (including caricature), voice, and biographical information, and any reproduction or simulation
thereof, in any media now known or hereafter developed (including but not limited to film, video and digital or other electronic
media), both during and after his employment, for whatever purposes the Company deems necessary.

 

14.4       Injunctive
Relief. The Executive understands that in the event of a breach or threatened breach of this Agreement by him, the Company
may suffer irreparable harm and will therefore be entitled to injunctive relief to enforce this Agreement.

 

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14.5       Legal
Fees. In any dispute arising under or in connection with this Agreement, the prevailing party shall be entitled to recover
reasonable attorney's fees.

 

14.6       Entire
Agreement. This Agreement, including the exhibits attached hereto, is intended to be the final, complete, and exclusive statement
regarding their subject matter, except for other agreements specifically referenced herein. Unless otherwise specifically provided
for herein, this Agreement supersedes all other prior and contemporaneous agreements and statements pertaining to this subject
matter, and may not be contradicted by evidence of any prior or contemporaneous statements or agreements. To the extent that the
practices, policies, or procedures of the Company, now or in the future, apply to the Executive and are inconsistent with the terms
of this Agreement, the provisions of this Agreement shall control.

 

14.7       Amendments,
Renewals and Waivers. This Agreement may not be modified, amended, renewed or terminated except by an instrument in writing,
signed by the Executive and by a duly authorized representative of the Company other than the Executive. No failure to exercise
and no delay in exercising any right, remedy, or power under this Agreement shall operate as a waiver thereof, nor shall any single
or partial exercise of any right, remedy, or power under this Agreement preclude any other or further exercise thereof, or the
exercise of any other right, remedy, or power provided herein or by law or in equity.

 

14.8       Assignment;
Successors and Assigns. The Executive agrees that he will not assign, sell, transfer, delegate or otherwise dispose of, whether
voluntarily or involuntarily, or by operation of law, any rights or obligations under this Agreement, nor shall the Executive's
rights be subject to encumbrance or the claims of creditors. Any purported assignment, transfer, or delegation shall be null and
void. Nothing in this Agreement shall prevent the consolidation of the Company with, or its merger into, any other corporation,
or the sale by the Company of all or substantially all of its properties or assets, or the assignment by the Company of this Agreement
and the performance of its obligations hereunder to any successor in interest. In the event of a change in ownership or control
of the Company, the terms of this Agreement will remain in effect and shall be binding upon any successor in interest. Notwithstanding
and subject to the foregoing, this Agreement shall be binding upon and shall inure to the benefit of the parties and their respective
heirs, legal representatives, successors, and permitted assigns, and shall not benefit any person or entity other than those enumerated
above.

 

14.9       Notices.
All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed to have been duly given
or made as of the date delivered or mailed if delivered personally or by nationally recognized courier or mailed by registered
mail (postage prepaid, return receipt requested) or by telecopy to the parties at the following addresses (or at such other address
for a party as shall be specified by like notice, except that notices of changes of address shall be effective upon receipt):

 

	To:	Company
	Contact Address:	AutoChina International Limited
	 	No. 322 Zhongshan East Road, Shijiazhuang City
	 	Hebei Province 050011, People’s Republic of China
	Attention:	Senior Vice President
	 	 
	To:	Executive

 

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	Contact Address:	AutoChina International Limited
	 	No. 322 Zhongshan East Road, Shijiazhuang City
	 	Hebei Province 050011, People’s Republic of China
	Attention:	Lei Chen

 

14.10      [Reserved.]

 

14.11      Waiver
of Immunity. To the extent that any Party (including its assignees of any such rights or obligations hereunder) may be entitled,
in any jurisdiction, to claim for itself (or himself or herself) or its revenues or assets or properties, immunity from service
of process, suit, the jurisdiction of any court, an interlocutory order or injunction or the enforcement of the same against its
property in such court, attachment prior to judgment, attachment in aid of execution of an arbitral award or judgment (interlocutory
or final) or any other legal process, and to the extent that, in any such jurisdiction there may be attributed such immunity (whether
claimed or not), such Party hereby irrevocably waive such immunity. 

 

14.12      Severability;
Enforcement. If any provision of this Agreement, or its application to any person, place, or circumstance, is held by an arbitrator
or a court of competent jurisdiction to be invalid, unenforceable, or void, such provision shall be enforced (by blue-penciling
or otherwise) to the maximum extent permissible under applicable law, and the remainder of this Agreement and such provision as
applied to other persons, places, and circumstances shall remain in full force and effect. 

 

14.13      Governing
Law. This Agreement shall in all respects be construed and enforced in accordance with and governed by the laws of Hong Kong.

 

14.14      Interpretation.
This Agreement shall be construed as a whole, according to its fair meaning, and not in favor of or against any party. Sections
and section headings contained in this Agreement are for reference purposes only, and shall not affect in any manner the meaning
or interpretation of this Agreement. Whenever the context requires, references to the singular shall include the plural and the
plural the singular. References to one gender include both genders.

 

14.15      Obligations
Survive Termination of Employment. The Executive agrees that any and all of the Executive's obligations under this Agreement
capable of execution after the termination of the Executive employment, including but not limited to those contained in exhibits
attached hereto, shall survive the termination of employment and the termination of this Agreement.

 

14.16      Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed an original of this Agreement, but
all of which together shall constitute one and the same instrument.

 

    	11

    	 

    

 

EXECUTIVE ACKNOWLEDGEMENT. The Executive
acknowledges (i) that he has consulted with or has had the opportunity to consult with independent counsel of his own choice concerning
this Agreement and has been advised to do so by the Company, and (ii) that he has read and understands the Agreement, is fully
aware of its legal effect, and has entered into it freely based on his own judgment. The Executive hereby agrees that his obligations
set forth in Sections 7, 8, and 9 hereof and the definitions of Proprietary Information and Inventions contained therein shall
be equally applicable to Proprietary Information and Inventions relating to any work performed by the Executive for the Company
prior to the execution of this Agreement.

 

The parties have duly executed this Agreement as of
the date first written above.

 

	 	EXECUTIVE:
	 	 
	 	/s/ Lei Chen
	 	Name:
	 	 
	 	COMPANY:
	 	 
	 	AUTOCHINA INTERNATIONAL LIMITED
	 	 	 
	 	By:	/s/ James Sha
	 	Name:	James Sha
	 	Title:	Director

 

 

    	 

    	 

    

 

EXHIBIT A

 

TERMINATION CERTIFICATE 

 

This is to certify that I have returned
all personal property of AutoChina International Limited (the "Company") and the Relevant Parties, including,
without limitation, all books, manuals, records, models, drawings, reports, notes, contracts, lists, blueprints, and other documents
and materials, electronic data recorded or retrieved by any means, Proprietary Information, and equipment furnished to or prepared
by me in the course of or incident to my employment with the Company, and that I did not make or distribute any copies of the foregoing.

 

I further certify that I have reviewed the
Executive Employment Agreement (the "Agreement") signed by me and that I have complied with and will continue
to comply with all of its terms, including, without limitation, (i) the reporting of any Inventions or any improvement, rights,
or claims related to the foregoing, conceived or developed by me and covered by the Agreement; (ii) the preservation as confidential
of all Proprietary Information pertaining to the Company and the Relevant Parties; (iii) not participating in any business competitive
with the business of the Company; (iv) not acting as the legal representative or an executive officer of any other company within
and outside the People’s Republic of China, and (v) the reporting of any remuneration paid to me due to any employment or
self-employment during the severance period, if any. This certificate in no way limits my responsibilities or the Company's rights
under the Agreement.

 

On termination of my
employment with the Company, I will be employed by [name of new employer] in the [division name] division and I will
be working in connection with the following projects:

 

[generally describe the projects]

 

	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	Date:	 	 	 
	 	 	 	Print Executive's Name
	 	 	 	 
	 	 	 	 
	 	 	 	Executive's Signature

 

    	 

    	 

    

 

EXHIBIT C

 

LIST OF PRIOR INVENTIONS 

AND ORIGINAL WORKS OF AUTHORSHIP 

 

	Title	 	Date	 	Identifying Number or Brief Description
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

	 	 	No inventions or improvements
	 	 	 
	 	 	Additional Sheets Attached

 

	Signature of Executive:	 	 
	 	 	 
	Printed Name of Executive:    	 	 
	 	 	 
	Date:FIRST AMENDMENT
TO

FIRST AMENDED AND RESTATED LIMITED PARTNERSHIP AGREEMENT OF

CAPLEASE, LP

 

DESIGNATION OF 8.375% SERIES B

CUMULATIVE REDEEMABLE PREFERRED UNITS

 

In connection with the issuance of up to
2,300,000 shares of 8.375% Series B Cumulative Redeemable Preferred Stock by CapLease, Inc. (the “Company” and
the “Original Limited Partner”) and the contribution to Caplease, LP (the “Partnership”) by the Limited
Partner of some or all of the net proceeds therefrom and pursuant to Article XII of the First Amended and Restated Limited Partnership
Agreement of Caplease, LP (the “Partnership Agreement”), this FIRST AMENDMENT TO FIRST AMENDED AND RESTATED LIMITED
PARTNERSHIP AGREEMENT OF CAPLEASE, LP (this “Amendment”) is made and entered into as of the 19th day of
April, 2012, by and between CLF OP General Partner LLC (the “General Partner”) and the Original Limited Partner for
the purpose of adding a new Article XIV in its entirety to the Partnership Agreement as follows:

 

ARTICLE
XIV

8.375% SERIES B CUMULATIVE REDEEMABLE PREFERRED UNITS

 

Section 14.1.          Designation
and Number. A series of Preferred Units, designated the “8.375% Series B Cumulative Redeemable Preferred Units”
(the “Series B Preferred Units”), is hereby established. The number of authorized Series B Preferred Units
shall be 2,300,000, 2,000,000 of which shall be issued and outstanding and owned by the Original Limited Partner on the date hereof.

 

Section 14.2.          Defined
Terms. Capitalized terms used herein and not otherwise defined shall have the meanings given to such terms in the Partnership
Agreement. The following defined terms used in this Amendment shall have the meanings specified below:

 

“Series B Articles Supplementary”
means the Articles Supplementary (and the related Certificate of Correction) of the Company filed with the State Department of
Assessments and Taxation of the State of Maryland on April 18, 2012, designating the terms, rights and preferences of the shares
of 8.375% Series B Cumulative Redeemable Preferred Stock, $0.01 par value per share, of the Company.

 

“Series B Preferred Stock”
means the shares of 8.375% Series B Cumulative Redeemable Preferred Stock, $0.01 par value per share, of the Company.

 

Section 14.3.          No
Maturity or Sinking Fund. The Series B Preferred Units have no maturity date, and no sinking fund has been established
for the retirement or redemption of the Series B Preferred Units.

 

    	 

    	 

    

 

Section 14.4.          Rank.
The Series B Preferred Units will, with respect to distribution rights and rights upon liquidation, dissolution or winding
up of the Partnership, rank (a) senior to all classes or series of Common Units and to all other Partnership Units, the terms of
which provide that such units shall rank junior to the Series B Preferred Units; (b) on a parity with all Partnership Units
issued by the Partnership, other than those Partnership Units referred to in clauses (a) and (c), including,
without limitation, the Series A Preferred Units; and (c) junior to all Partnership Units issued by the Partnership which
rank senior to the Series B Preferred Units that are issued in connection with the Company’s issuance of preferred stock
that is senior to the Series B Preferred Stock in accordance with Section 7(d) of the Series B Articles Supplementary. The term
“Partnership Units” does not include convertible debt securities of the Partnership, which shall rank senior to the
Series B Preferred Units prior to conversion.

 

Section 14.5.          Allocations
and Distributions.

 

(a)          Holders
of Series B Preferred Units shall be entitled to receive, when and as authorized by the General Partner, and declared by the
Partnership out of funds legally available for payment of distributions, cumulative preferential cash distributions at the rate
of eight and three-eighths percent (8.375%) per annum of the Twenty-five Dollars ($25.00) per unit liquidation preference of the
Series B Preferred Units (equivalent to a fixed annual amount of $2.09375 per Series B Preferred Unit). Such distributions
shall accumulate on a daily basis and be cumulative from (but excluding) the original date of issuance and be payable quarterly
in equal amounts in arrears on or about the fifteenth (15th) day of each January, April, July and October of each year,
beginning on July 16, 2012 (each such day being hereinafter called a “Distribution Payment Date”); provided
that if any Distribution Payment Date is not a Business Day (as hereinafter defined), then the distribution which would otherwise
have been payable on such Distribution Payment Date may be paid on the next succeeding Business Day with the same force and effect
as if paid on such Distribution Payment Date, and no interest or additional distributions or other sums shall accrue on the amount
so payable from such Distribution Payment Date to such next succeeding Business Day. Any distribution payable on the Series B
Preferred Units for any partial distribution period shall be prorated and computed on the basis of a 360-day year consisting of
twelve 30-day months. Distributions shall be payable to holders of record as they appear in the unit records of the Partnership
at the close of business on the applicable record date, which shall be the last day of the calendar month that immediately precedes
the calendar month in which the applicable Distribution Payment Date falls or such other date designated by the General Partner
of the Partnership for the payment of distributions that is not more than 30 nor less than 10 days prior to such Distribution Payment
Date (each, a “Distribution Record Date”).

 

(b)          No
distributions on Series B Preferred Units shall be authorized by the General Partner or paid or set apart for payment by the
Partnership at such time as the terms and provisions of any agreement of the General Partner or the Partnership, including any
agreement relating to the indebtedness of either of them, prohibits such authorization, payment or setting apart for payment or
provides that such authorization, payment or setting apart for payment would constitute a breach thereof or a default thereunder,
or if such authorization, payment or setting apart for payment shall be restricted or prohibited by law.

 

(c)          Notwithstanding
anything to the contrary contained herein, distributions on the Series B Preferred Units shall accumulate whether or not the
restrictions referred to in clause (b) exist, whether or not the Partnership has earnings, whether or not there are funds legally
available for the payment of such distributions and whether or not such distributions are authorized. Accumulated but unpaid distributions
on the Series B Preferred Units will accumulate as of the Distribution Payment Date on which they first become payable or
on the date of redemption as the case may be. Accumulated and unpaid distributions will not bear interest.

 

    	2

    	 

    

 

(d)          When
distributions are not paid in full (or a sum sufficient for such full payment is not so set apart) upon the Series B Preferred
Units and all other Partnership Units ranking on a parity, as to distributions, with the Series B Preferred Units, all distributions
authorized, paid or set apart for payment upon the Series B Preferred Units and all other Partnership Units ranking on a parity,
as to distributions, with the Series B Preferred Units shall be authorized and paid pro rata or authorized and set apart for
payment pro rata so that the amount of distributions authorized per Series B Preferred Unit and each such other Partnership
Unit shall in all cases bear to each other the same ratio that accumulated distributions per Series B Preferred Unit and such
other Partnership Unit (which shall not include any accumulation in respect of unpaid distributions for prior distribution periods
if such Partnership Units do not have a cumulative distribution) bear to each other. No interest, or sum of money in lieu of interest,
shall be payable in respect of any distribution payment or payments on Series B Preferred Units which may be in arrears.

 

(e)          Except
as provided in clause (d), unless full cumulative distributions on the Series B Preferred Units have been or contemporaneously
are authorized and paid or authorized and a sum sufficient for the payment thereof is set apart for payment for all past distribution
periods, no distributions (other than in the form of Common Units or other Partnership Units ranking junior to the Series B
Preferred Units as to distributions and upon liquidation) shall be authorized and paid or authorized and set apart for payment
nor shall any other distribution be authorized and made upon the Common Units or other Partnership Units ranking junior to or on
a parity with the Series B Preferred Units as to distributions or upon liquidation, nor shall any Common Units or other Partnership
Units ranking junior to or on a parity with the Series B Preferred Units as to distributions or upon liquidation be redeemed,
purchased or otherwise acquired directly or indirectly for any consideration (or any monies be paid to or made available for a
sinking fund for the redemption of any such Common Units or Partnership Units) by the Partnership (except in accordance with the
terms of the Partnership Agreement or by conversion into or exchange for Common Units or other Partnership Units ranking junior
to the Series B Preferred Units as to distributions and upon liquidation, by redemption, purchase or acquisition of Common
Units or other Partnership Units under any employee benefit plan of the General Partner or Partnership, or by other redemption,
purchase or acquisition of such Common Units or Partnership Units pursuant to Article VII of the Articles of Amendment and Restatement
of the Company or otherwise, in order to ensure that the Company remains qualified as a real estate investment trust (“REIT”)
for federal income tax purposes).

 

(f)          Holders
of Series B Preferred Units shall not be entitled to any distribution, whether payable in cash, property or units, in excess
of full cumulative distributions on the Series B Preferred Units as described above. Any distribution payment made on the
Series B Preferred Units shall first be credited against the earliest accumulated but unpaid distribution due with respect
to such units which remains payable.

 

    	3

    	 

    
 

(g)          In
determining whether a distribution (other than upon voluntary or involuntary liquidation, dissolution or winding up of the Partnership)
by distribution, redemption or otherwise is permitted under Delaware law, no effect shall be given to amounts that would be needed,
if the Partnership were to be dissolved at the time of the distribution, to satisfy the preferential rights upon dissolution of
holders of Partnership Units whose preferential rights on dissolution are superior to those receiving the distribution.

 

(h)          Prior
to any allocation of Profit pursuant to Section 5.01(a) of the Partnership Agreement, Profit will be allocated to holders of Series B
Preferred Units in an amount equal to the distributions made to holders of Series B Preferred Units under Section 14.5(a)
of this Amendment.

 

Section 14.6.          Liquidation
Rights.

 

(a)          In
the event of any voluntary or involuntary liquidation, dissolution or winding up of the Partnership (referred to herein sometimes
as a “liquidation”), the holders of the Series B Preferred Units then outstanding shall be entitled to receive,
out of the assets of the Partnership legally available for distribution to its Partners (after payment or provision for payment
of all debts and other liabilities of the Partnership), a liquidation preference in cash of Twenty-five Dollars ($25.00) per Series B
Preferred Unit, plus an amount equal to all accumulated and unpaid distributions to, but not including, the date of payment, before
any distribution of assets is made to holders of Common Units or any other Partnership Units that rank junior to the Series B
Preferred Units with respect to liquidation rights, upon the liquidation, dissolution or winding up of the Partnership.

 

(b)          If,
upon any such voluntary or involuntary liquidation, dissolution or winding up of the Partnership, the assets of the Partnership
are insufficient to make full payment to holders of Series B Preferred Units and to the corresponding amounts payable on all
other Partnership Units ranking on a parity with the Series B Preferred Units as to liquidation rights, then the holders of
the Series B Preferred Units and all other such Partnership Units shall share ratably in any such distribution of assets in
proportion to the full liquidating distributions to which they would otherwise be respectively entitled.

 

(c)          Written
notice of any such liquidation, dissolution or winding up of the Partnership, stating the payment date or dates when, and the place
or places where, the amounts distributable in such circumstances shall be payable, shall be given by first class mail, postage
pre-paid, not less than 30 nor more than 60 days prior to the payment date stated therein, to each record holder of the Series B
Preferred Units at the respective address of such holders as the same shall appear on the unit transfer records of the Partnership.

 

(d)          After
payment of the full amount of the liquidating distributions to which the holders of Series B Preferred Units are entitled, the
holders of Series B Preferred Units will have no right or claim to any of the remaining assets of the Partnership.

 

(e)          None
of a consolidation or merger of the Partnership with or into another entity, a merger of another entity with or into the Partnership,
a statutory security exchange by the Partnership or a sale, lease, transfer or conveyance of all or substantially all of the Partnership’s
property or business shall be considered a liquidation, dissolution or winding up of the Partnership.

 

    	4

    	 

    

 

Section 14.7.          Redemption.

 

(a)          Except
as provided in the next sentence, the Series B Preferred Units are not redeemable prior to April 19, 2017. Consistent with
the provisions set forth in Article VII of the Articles of Amendment and Restatement of the Company, however, the Partnership shall
have the right to purchase the amount of Series B Preferred Units necessary to ensure that the Company remains qualified as
a REIT for federal income tax purposes. On and after April 19, 2017, the Partnership, at its option, upon giving notice as provided
below, may redeem the Series B Preferred Units, in whole or from time to time in part, for cash, at a redemption price of
Twenty-five Dollars ($25.00) per Series B Preferred Unit, plus all accumulated and unpaid distributions on such Series B
Preferred Units to, but not including, the date of such redemption (the “Series B Redemption Right”).

 

(b)          If
fewer than all of the outstanding Series B Preferred Units are to be redeemed pursuant to the Redemption Right, the Series B
Preferred Units to be redeemed shall be selected pro rata (as nearly as practicable without creating fractional units) or by lot
or in such other equitable method prescribed by the Partnership.

 

(c)          Notwithstanding
anything to the contrary contained herein, unless full cumulative distributions on all Series B Preferred Units shall have
been or contemporaneously are authorized and paid or authorized and a sum sufficient for the payment thereof set apart for payment
for all past distribution periods, no Series B Preferred Unit may be redeemed unless all of the outstanding Series B
Preferred Units are simultaneously redeemed; provided, however, that the foregoing shall not prevent the purchase
by the Partnership of Series B Preferred Units necessary to ensure that the Company remains qualified as a REIT for federal
income tax purposes or the purchase or acquisition of Series B Preferred Units pursuant to a purchase or exchange offer made
on the same terms to holders of all of the Series B Preferred Units. In addition, unless full cumulative distributions on
all Series B Preferred Units have been or contemporaneously are authorized and paid or authorized and a sum sufficient for
the payment thereof set apart for payment for all past distribution periods, the Partnership shall not purchase or otherwise acquire
directly or indirectly for any consideration, nor shall any monies be paid to or be made available for a sinking fund for the redemption
of, any Series B Preferred Units (except in accordance with the Partnership Agreement or by conversion into or exchange for
Common Units or any other Partnership Units ranking junior to the Series B Preferred Units as to distributions and upon liquidation);
provided, however, that the foregoing shall not prevent any purchase or acquisition of Series B Preferred Units
for the purpose of preserving the Company’s status as a REIT or pursuant to a purchase or exchange offer made on the same
terms to holders of all of the outstanding Series B Preferred Units.

 

(d)          Immediately
prior to any redemption of Series B Preferred Units pursuant to the Series B Redemption Right, the Partnership shall pay,
in cash, any accumulated and unpaid distributions to, but not including, the redemption date, unless a redemption date falls after
a Distribution Record Date and prior to the corresponding Distribution Payment Date, in which case each holder of Series B
Preferred Units at the close of business on such Distribution Record Date shall be entitled to the distribution payable on such
Series B Preferred Units on the corresponding Distribution Payment Date (including any accrued and unpaid distributions for
prior periods) notwithstanding the redemption of such units before such Distribution Payment Date. Except as provided above, the
Partnership will make no payment or allowance for unpaid distributions, whether or not in arrears, on Series B Preferred Units
for which a notice of redemption has been given.

 

    	5

    	 

    

 

(e)          The
following provisions set forth the procedures for redemption pursuant to the Series B Redemption Right:

 

(i)          Notice
of redemption shall be given to the respective holders of record of the Series B Preferred Units to be redeemed at their respective
addresses as they appear on the unit transfer records of the Partnership. No failure to give such notice or any defect thereto
or in the mailing thereof shall affect the validity of the proceedings for the redemption of any Series B Preferred Units
except as to the holder to whom notice was defective or not given.

 

(ii)         In
addition to any information required by law or by the applicable rules of any exchange upon which the Series B Preferred Units
may be listed or admitted to trading, such notice shall state: (A) the redemption date; (B) the redemption price; (C) the number
of Series B Preferred Units to be redeemed; (D) the place or places where the Series B Preferred Units, to the extent
such units are certificated, are to be surrendered (if so required in the notice) for payment of the redemption price; and (E)
that distributions on the Series B Preferred Units to be redeemed will cease to accumulate on such redemption date. If less
than all of the Series B Preferred Units held by any holder are to be redeemed, the notice mailed to such holder shall also
specify the number of Series B Preferred Units held by such holder to be redeemed.

 

(iii)        If
the Partnership shall so require and the notice shall so state, on or after the redemption date, each holder of the Series B
Preferred Units to be redeemed shall present and surrender any certificates representing such holder’s Series B Preferred
Units to the Partnership at the place designated in the notice of redemption and thereupon the redemption price of such units (including
all accumulated and unpaid distributions up to the redemption date) shall be paid to or on the order of the person whose name appears
on such certificate evidencing the Series B Preferred Units as the owner thereof and each surrendered certificate shall be
canceled. If fewer than all the units evidenced by any such certificate evidencing the Series B Preferred Units are to be
redeemed, a new certificate shall be issued evidencing the unredeemed units. In the event that the units
of Series B Preferred Units to be redeemed are uncertificated, such units shall be redeemed in accordance with the notice and the
applicable procedures of any depository and no further action on the part of the holders of such units shall be required.

 

(iv)        From
and after the redemption date (unless the Partnership defaults in payment of the redemption price), all distributions on the Series B
Preferred Units designated for redemption in such notice shall cease to accumulate and all rights of the holders thereof, except
the right to receive the redemption price thereof payable upon redemption without interest (including all accumulated and unpaid
distributions to, but not including, the redemption date), shall cease and terminate and such units shall not thereafter be transferred
(except with the consent of the Partnership) on the Partnership’s unit transfer records, and such units shall not be deemed
to be outstanding for any purpose whatsoever. At its election, the Partnership, prior to a redemption date, may irrevocably deposit
the redemption price (including accumulated and unpaid distributions to, but not including, the redemption date) of the Series B
Preferred Units so called for redemption in trust for the holders thereof with a bank or trust company, in which case the redemption
notice to holders of the Series B Preferred Units to be redeemed shall (A) state the date of such deposit, (B) specify
the office of such bank or trust company as the place of payment of the redemption price and (C) require such holders to surrender
the certificates evidencing such units, to the extent such units are certificated, at such place on or about the date fixed in
such redemption notice (which may not be later than the redemption date) against payment of the redemption price (including all
accumulated and unpaid distributions to, but not including, the redemption date). Any monies so deposited which remain unclaimed
by the holders of the Series B Preferred Units at the end of two years after the redemption date shall be returned by such
bank or trust company to the Partnership.

 

    	6

    	 

    

 

(f)          Subject
to applicable law and the limitation on purchases when distributions on the Series B Preferred Units are in arrears, the Partnership
may, at any time and from time to time, purchase any Series B Preferred Units in the open market, by tender or by private agreement.

 

(g)          Any
Series B Preferred Units that shall at any time have been redeemed pursuant to the Redemption Right or otherwise acquired
shall, after such redemption or acquisition, have the status of authorized but unissued Series B Preferred Units.

 

Section 14.8.          Special
Optional Redemption by the Partnership.

 

(a)          Upon
the occurrence of a Change of Control (as defined in the Series B Articles Supplementary), the Partnership will have the option
upon written notice mailed by the Partnership, postage pre-paid, no less than 30 nor more than 60 days prior to the redemption
date and addressed to the holders of record of the Series B Preferred Units to be redeemed at their respective addresses as they
appear on the unit transfer records of the Partnership, to redeem the Series B Preferred Units, in whole or in part within 120
days after the first date on which such Change of Control occurred, for cash at Twenty-five Dollars ($25.00) per unit plus accumulated
and unpaid distributions to, but not including, the redemption date (“Special Optional Redemption Right”). No failure
to give such notice or any defect thereto or in the mailing thereof shall affect the validity of the proceedings for the redemption
of any Series B Preferred Units except as to the holder to whom notice was defective or not given. If, prior to the Change of Control
Conversion Date (as defined in the Series B Articles Supplementary), the Partnership has provided or provides notice of redemption
with respect to the Series B Preferred Units (whether pursuant to the Series B Redemption Right or the Special Optional Redemption
Right), the holders of shares of Series B Preferred Units will not have the conversion right described below in Section 14.10.

 

    	7

    	 

    
 

(b)          In
addition to any information required by law or by the applicable rules of any exchange upon which the Series B Preferred Units
may be listed or admitted to trading, such notice shall state: (A) the redemption date; (B) the redemption price; (C) the number
of Series B Preferred Units to be redeemed; (D) the place or places where the certificates representing the Series B Preferred
Units, to the extent Series B Preferred Units are certificated, are to be surrendered (if so required in the notice) for payment
of the redemption price; (E) that the Series B Preferred Units are being redeemed pursuant to the Special Optional Redemption Right
in connection with the occurrence of a Change of Control and a brief description of the transaction or transactions constituting
such Change of Control; (F) that holders of the Series B Preferred Units to which the notice relates will not be able to tender
such Series B Preferred Units for conversion in connection with the Change of Control and each Series B Preferred Unit tendered
for conversion that is selected, prior to the Change of Control Conversion Date, for redemption will be redeemed on the related
redemption date instead of converted on the Change of Control Conversion Date; and (G) that distributions on the Series B Preferred
Units to be redeemed will cease to accumulate on such redemption date. If fewer than all of the Series B Preferred Units held by
any holder are to be redeemed, the notice mailed to such holder shall also specify the number of Series B Preferred Units held
by such holder to be redeemed.

 

If fewer than all of the outstanding Series
B Preferred Units are to be redeemed pursuant to the Special Optional Redemption Right, the units to be redeemed shall be selected
pro rata (as nearly as practicable without creating fractional units) or by lot or in such other equitable method prescribed by
the Partnership.

 

(c)          Notwithstanding
anything to the contrary contained herein, unless full cumulative distributions on all Series B Preferred Units shall have been
or contemporaneously are authorized and paid or authorized and a sum sufficient for the payment thereof set apart for payment for
all past distribution periods, no Series B Preferred Units may be redeemed unless all outstanding Series B Preferred Units are
simultaneously redeemed; provided, however, that the foregoing shall not prevent the purchase by the Partnership
of Series B Preferred Units necessary in order to ensure that the Company remains qualified as a REIT for federal income tax purposes
or the purchase or acquisition of Series B Preferred Units pursuant to a purchase or exchange offer made on the same terms to holders
of all Series B Preferred Units. In addition, unless full cumulative distributions on all Series B Preferred Units have been or
contemporaneously are authorized and paid or authorized and a sum sufficient for the payment thereof set apart for payment for
all past distribution periods, the Partnership shall not purchase or otherwise acquire directly or indirectly for any consideration,
nor shall any monies be paid to or be made available for a sinking fund for the redemption of, any Series B Preferred Units (except
in accordance with the Partnership Agreement or by conversion into or exchange for Common Units or any other Partnership Units
ranking junior to the Series B Preferred Units as to distributions and upon liquidation); provided, however, that
the foregoing shall not prevent any purchase or acquisition of Series B Preferred Units for the purpose of preserving the Company’s
status as a REIT or pursuant to a purchase or exchange offer made on the same terms to holders of all outstanding Series B Preferred
Units.

 

(d)          Immediately
prior to any redemption of Series B Preferred Units pursuant to the Special Optional Redemption Right, the Partnership shall pay,
in cash, any accumulated and unpaid distributions to, but not including, the redemption date, unless a redemption date falls after
a Distribution Record Date and prior to the corresponding Distribution Payment Date, in which case each holder of Series B Preferred
Units at the close of business on such Distribution Record Date shall be entitled to the distribution payable on such units on
such Distribution Payment Date (including any accrued and unpaid distributions for prior periods) notwithstanding the redemption
of such units before such Distribution Payment Date. Except as provided above, the Partnership will make no payment or allowance
for unpaid distributions, whether or not in arrears, on Series B Preferred Units for which a notice of redemption has been given.

 

    	8

    	 

    
 

(e)          If
the Partnership shall so require and the notice shall so state, on or after the redemption date, each holder of Series B Preferred
Units to be redeemed shall present and surrender the certificates representing such holder’s Series B Preferred Units to
the Partnership at the place designated in the notice of redemption and thereupon the redemption price of such units (including
all accumulated and unpaid distributions up to the redemption date) shall be paid to or on the order of the person whose name appears
on such certificate representing Series B Preferred Units as the owner thereof and each surrendered certificate shall be canceled.
If fewer than all the units represented by any such certificate representing Series B Preferred Units is to be redeemed, a new
certificate shall be issued representing the unredeemed units. In the event that the Series B Preferred Units to be redeemed are
uncertificated, such units shall be redeemed in accordance with the notice and the applicable procedures of any depository and
no further action on the part of the holders of such units shall be required.

 

(f)          From
and after the redemption date (unless the Partnership defaults in payment of the redemption price), all distributions on the Series
B Preferred Units designated for redemption in such notice shall cease to accumulate and all rights of the holders thereof, except
the right to receive the redemption price thereof payable upon redemption without interest (including all accumulated and unpaid
distributions to, but not including, the redemption date), shall cease and terminate and such units shall not thereafter be transferred
(except with the consent of the Partnership) on the Partnership’s unit transfer records, and such units shall not be deemed
to be outstanding for any purpose whatsoever. At its election, the Partnership, prior to a redemption date, may irrevocably deposit
the redemption price (including accumulated and unpaid distributions to, but not including, the redemption date) of the Series
B Preferred Units so called for redemption in trust for the holders thereof with a bank or trust company, in which case the redemption
notice to holders of the Series B Preferred Units to be redeemed shall (A) state the date of such deposit, (B) specify the office
of such bank or trust company as the place of payment of the redemption price and (C) require such holders to surrender the certificates
representing such units, to the extent such units are certificated, at such place on or about the date fixed in such redemption
notice (which may not be later than the redemption date) against payment of the redemption price (including all accumulated and
unpaid distributions to, but not including, the redemption date). Any monies so deposited which remain unclaimed by the holders
of the Series B Preferred Units at the end of two years after the redemption date shall be returned by such bank or trust company
to the Partnership.

 

(g)          Any
Series B Preferred Units that shall at any time have been redeemed pursuant to the Special Optional Redemption Right shall, after
such redemption, have the status of authorized but unissued Series B Preferred Units.

 

Section 14.9.          Voting
Rights.

 

(a)          Holders
of the Series B Preferred Units shall not have any voting rights, except as set forth below. In any matter in which the holders
of Series B Preferred Units are entitled to vote, each such holder shall have the right to one vote for each Series B
Preferred Unit held by such holder. If the holders of the Series B Preferred Units and the holders of another series of Preferred
Units are entitled to vote together as a single class on any matter, the holders of the Series B Preferred Units and the holders
of such other Preferred Units shall each have one vote for each $25.00 of liquidation preference.

 

    	9

    	 

    

 

(b)          So
long as any Series B Preferred Units remain outstanding, the Partnership shall not, without the affirmative vote of the holders
of at least two-thirds of the Series B Preferred Units outstanding at the time, given in person or by proxy, either in writing
or at a meeting (such series voting separately as a class), (i) authorize or create, or increase the authorized or issued amount
of, any class or series of Partnership Units ranking senior to the Series B Preferred Units with respect to payment of distributions
or the distribution of assets upon voluntary or involuntary liquidation, dissolution or winding up of the Partnership, or reclassify
any authorized Partnership Units into any class or series of Partnership Units ranking senior to the Series B Preferred Units,
or create, authorize or issue any obligation or security convertible into or evidencing the right to purchase any such Partnership
Units; or (ii) amend, alter or repeal the provisions of the Partnership Agreement (including this Amendment), whether by merger
or consolidation (in either case, an “Event”) or otherwise, so as to materially and adversely affect any right, preference,
privilege or voting power of the Series B Preferred Units; provided, however, that with respect to the occurrence
of any Event set forth in (ii) above, so long as any Series B Preferred Units (or any equivalent class or series of units
issued by the surviving entity in such merger or consolidation to which the Partnership is a party) remains outstanding with the
terms thereof materially unchanged or the holders of Series B Preferred Units receive equity securities with rights, preferences,
privileges or voting powers substantially the same as those of the Series B Preferred Units, taking into account that upon
the occurrence of an Event, the Partnership may not be the surviving entity and such surviving entity may thereafter be the issuer
of the Series B Preferred Units (or such equivalent class or series), the occurrence of any such Event shall not be deemed
to materially and adversely affect such rights, preferences, privileges or voting powers of the Series B Preferred Units;
and provided further that (x) any increase in the number of authorized Preferred Units or the creation or issuance
of any other class or series of Partnership Units, or (y) any increase in the number of authorized Series B Preferred
Units or any other class or series of Partnership Units, in the case of each of (x) or (y) above ranking on a parity with or junior
to the Series B Preferred Units with respect to payment of distributions and the distribution of assets upon voluntary or
involuntary liquidation, dissolution or winding up of the Partnership, shall not be deemed to materially and adversely affect such
rights, preferences, privileges or voting powers. For the avoidance of doubt, the foregoing voting provisions shall not be deemed
to negate any other vote (including, without limitation, the vote of the holders of Common Units) that may be required by law or
the Partnership Agreement.

 

(c)          The
foregoing voting provisions shall not apply if, at or prior to the time when the act with respect to which such vote would otherwise
be required shall be effected, all outstanding Series B Preferred Units shall have been redeemed or called for redemption
upon proper notice and sufficient funds shall have been deposited in the Partnership to effect such redemption.

 

Section 14.10.         Conversion.
The Series B Preferred Units shall not be convertible into or exchangeable for any other property or securities of the Partnership
or any other entity except as provided in this Section 14.10.

 

    	10

    	 

    

 

(a)          Upon
the occurrence of a Change of Control, each holder of Series B Preferred Units shall have the right, unless, prior to the Change
of Control Conversion Date, the Partnership has provided or provides notice of its election to redeem the Series B Preferred Units
pursuant to the Redemption Right or Special Optional Redemption Right, to convert some or all of the Series B Preferred Units held
by such holder (the “Change of Control Conversion Right”) on the Change of Control Conversion Date into a number of
Common Units per Series B Preferred Unit to be converted (the “Common Unit Conversion Consideration”) equal to the
lesser of (A) the quotient obtained by dividing (i) the sum of (x) the Twenty-five Dollars ($25.00) liquidation preference plus
(y) the amount of any accumulated and unpaid distributions to, but not including, the Change of Control Conversion Date (unless
the Change of Control Conversion Date is after a Distribution Record Date and prior to the corresponding Distribution Payment Date,
in which case no additional amount for such accumulated and unpaid distributions will be included in such sum) by (ii) the Common
Stock Price (as defined in the Series B Articles Supplementary) and (B) 11.9904 (the “Unit Cap”), subject to the immediately
succeeding paragraph.

 

The Unit Cap is subject to pro rata adjustments
for any unit splits (including those effected pursuant to a Common Unit distribution), subdivisions or combinations (in each case,
a “Unit Split”) with respect to Common Units as follows: the adjusted Unit Cap as the result of a Unit Split shall
be the number of Common Units that is equivalent to the product obtained by multiplying (i) the Unit Cap in effect immediately
prior to such Unit Split by (ii) a fraction, the numerator of which is the number of Common Units outstanding after giving effect
to such Unit Split and the denominator of which is the number of Common Units outstanding immediately prior to such Unit Split.

 

For the avoidance of doubt, subject to the
immediately succeeding sentence, the aggregate number of Common Units (or equivalent Alternative Conversion Consideration (as defined
below), as applicable) issuable in connection with the exercise of the Change of Control Conversion Right in respect of the 2,300,000
Preferred Units designated as Series B Preferred Units and authorized for issuance pursuant hereto is 27,577,920 in total (or equivalent
Alternative Conversion Consideration, as applicable) (the “Exchange Cap”). The Exchange Cap (i) shall be increased
on a pro rata basis with respect to any additional Series B Preferred Units designated and authorized for issuance pursuant to
any subsequent amendment to the Partnership Agreement and (ii) is subject to pro rata adjustments for any Unit Splits on the same
basis as the corresponding adjustment to the Unit Cap.

 

In the case of a Change of Control pursuant
to which Common Units shall be converted into cash, securities or other property or assets (including any combination thereof)
(the “Alternative Form Consideration”), a holder of Series B Preferred Units shall receive upon conversion of such
Series B Preferred Units the kind and amount of Alternative Form Consideration that such holder of Series B Preferred Units would
have owned or been entitled to receive upon the Change of Control had such holder of Series B Preferred Units held a number of
Common Units equal to the Common Unit Conversion Consideration immediately prior to the effective time of the Change of Control
(the “Alternative Conversion Consideration”; and the Common Unit Conversion Consideration or the Alternative Conversion
Consideration, as may be applicable to a Change of Control, shall be referred to herein as the “Conversion Consideration”).

 

    	11

    	 

    

 

In the event that holders of Common Units
have the opportunity to elect the form of consideration to be received in the Change of Control, the consideration that the holders
of Series B Preferred Units shall receive shall be the form of consideration elected by the holders of the Common Units who participate
in the determination (based on the weighted average of elections) and shall be subject to any limitations to which all holders
of Common Units are subject, including, without limitation, pro rata reductions applicable to any portion of the consideration
payable in the Change of Control.

 

(b)          No
fractional Common Units shall be issued upon the conversion of Series B Preferred Units. In lieu of fractional units, holders shall
be entitled to receive the cash value of such fractional units based on the Common Stock Price.

 

(c)          Within
15 days following the occurrence of a Change of Control, unless the Partnership has provided, prior to the expiration of such 15-day
period, notice of its election to redeem the Series B Preferred Units pursuant to the Redemption Right or Special Optional Redemption
Right, a notice of occurrence of the Change of Control, describing the resulting Change of Control Conversion Right, shall be delivered
to the holders of record of the Series B Preferred Units at their addresses as they appear on the Partnership’s unit transfer
records and notice shall be provided to the Partnership’s transfer agent, if any. No failure to give such notice or any defect
thereto or in the mailing thereof shall affect the validity of the proceedings for the conversion of any Series B Preferred Units
except as to the holder to whom notice was defective or not given. Each notice shall state: (i) the events constituting the Change
of Control; (ii) the date of the Change of Control; (iii) the last date on which the holders of Series B Preferred Units may exercise
their Change of Control Conversion Right; (iv) the method and period for calculating the Common Stock Price; (v) the Change of
Control Conversion Date, which shall be a Business Day occurring within 20 to 35 days following the date of such notice; (vi) that
if, prior to the Change of Control Conversion Date, the Partnership has provided or provides notice of its election to redeem all
or any portion of the Series B Preferred Units, the holder will not be able to convert Series B Preferred Units and such units
shall be redeemed on the related redemption date, even if they have already been tendered for conversion pursuant to the Change
of Control Conversion Right; (vii) if applicable, the type and amount of Alternative Conversion Consideration entitled to be received
per Series B Preferred Unit; (viii) the name and address of the paying agent and the conversion agent; and (ix) the procedures
that the holders of Series B Preferred Units must follow to exercise the Change of Control Conversion Right.

 

(d)          [Intentionally
omitted].

 

(e)          In
order to exercise the Change of Control Conversion Right, a holder of Series B Preferred Units shall be required to deliver, on
or before the close of business on the Change of Control Conversion Date, the certificates representing the Series B Preferred
Units, to the extent such units are certificated, to be converted, duly endorsed for transfer, together with a written conversion
notice completed, to the Partnership’s transfer agent. Such notice shall state: (i) the relevant Change of Control Conversion
Date; (ii) the number of Series B Preferred Units to be converted; and (iii) that the Series B Preferred Units are to be converted
pursuant to this Amendment. Notwithstanding the foregoing, if the Series B Preferred Units are held in global form, such notice
shall comply with applicable procedures of The Depository Trust Company (“DTC”).

 

    	12

    	 

    

 

(f)          Holders
of Series B Preferred Units may withdraw any notice of exercise of a Change of Control Conversion Right (in whole or in part) by
a written notice of withdrawal delivered to the Partnership’s transfer agent prior to the close of business on the Business
Day prior to the Change of Control Conversion Date. The notice of withdrawal must state: (i) the number of withdrawn Series B Preferred
Units; (ii) if certificated Series B Preferred Units have been issued, the certificate numbers of the withdrawn Series B Preferred
Units; and (iii) the number of Series B Preferred Units, if any, which remain subject to the conversion notice. Notwithstanding
the foregoing, if the Series B Preferred Units are held in global form, the notice of withdrawal shall comply with applicable procedures
of DTC.

 

(g)          Series
B Preferred Units as to which the Change of Control Conversion Right has been properly exercised and for which the conversion notice
has not been properly withdrawn shall be converted into the applicable Conversion Consideration in accordance with the Change of
Control Conversion Right on the Change of Control Conversion Date, unless, prior to the Change of Control Conversion Date, the
Partnership has provided or provides notice of its election to redeem such Series B Preferred Units, whether pursuant to its Redemption
Right or Special Optional Redemption Right. If the Partnership elects to redeem Series B Preferred Units that would otherwise be
converted into the applicable Conversion Consideration on a Change of Control Conversion Date, such Series B Preferred Units shall
not be so converted and the holders of such units shall be entitled to receive on the applicable redemption date Twenty-five Dollars
($25.00) per unit, plus any accumulated and unpaid distributions thereon to, but not including, the redemption date.

 

(h)          The
Partnership shall deliver the applicable Conversion Consideration no later than the third Business Day following the Change of
Control Conversion Date.

 

Section 14.11.         Exclusion
of Other Rights. The Series B Preferred Units shall not have any preferences, conversion or other rights, voting powers,
restrictions, limitations as to distributions, qualifications or terms or conditions of redemption other than expressly set forth
in the Partnership Agreement and this Amendment.

 

Section 14.12.         Severability
of Provisions. If any preferences or other rights, voting powers, restrictions, limitations as to distributions, qualifications
or terms or conditions of redemption of the Series B Preferred Units set forth in the Partnership Agreement and this Amendment
are invalid, unlawful or incapable of being enforced by reason of any rule of law or public policy, all other preferences, conversion
or other rights, voting powers, restrictions, limitations as to distributions, qualifications or terms or conditions of redemption
of Series B Preferred Units set forth in the Partnership Agreement which can be given effect without the invalid, unlawful
or unenforceable provision thereof shall, nevertheless, remain in full force and effect and no preferences or other rights, voting
powers, restrictions, limitations as to distributions, qualifications or terms or conditions of redemption of the Series B
Preferred Units herein set forth shall be deemed dependent upon any other provision thereof unless so expressed therein.

 

[Remainder of page left blank intentionally.]

 

    	13

    	 

    

 

IN WITNESS WHEREOF, this Amendment
is executed as of the 19th day of April, 2012.

 

	 	GENERAL PARTNER:
	 	 
	 	CLF OP GENERAL PARTNER LLC
	 	 	 
	 	By:	CapLease, Inc., its sole member

 

	 	By:	/s/ Shawn P. Seale
	 	Name:	Shawn P. Seale
	 	Title:	Senior Vice President

 

	 	Address:	1065 Avenue of the Americas
	 	 	New York, New York 10018

 

	 	ORIGINAL LIMITED PARTNER:
	 	 
	 	CAPLEASE, INC.
	 	 	 
	 	By:	/s/ Robert C. Blanz
	 	Name:	Robert C. Blanz
	 	Title:	Senior Vice President
	 	 	 
	 	Address:	1065 Avenue of the Americas
	 	 	New York, New York 10018

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