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PREFERRED APARTMENT COMMUNITIES, INC.
2019 STOCK INCENTIVE PLAN
RESTRICTED STOCK UNIT GRANT NOTICE
(Performance Vesting)
Pursuant to the terms and conditions of the Preferred Apartment Communities, Inc. 2019 Stock Incentive Plan, as amended from time to time (the “Plan”), Preferred Apartment Communities, Inc. (the “Company”) hereby grants to the individual listed below (“you” or the “Participant”) the number of performance-based restricted stock units (the “PSUs”) set forth below.  This award of PSUs (this “Award”) is subject to the terms and conditions set forth herein and in the Restricted Stock Unit Agreement attached hereto as Exhibit A (the “Agreement”) and the Plan, each of which is incorporated herein by reference.  Capitalized terms used but not defined herein shall have the meanings set forth in the Plan.
						
	Participant:	_____________________
	Date of Grant:	_____________________
	Award Type and Description:	The PSU is a Restricted Stock Unit Award granted as a Performance Restricted Stock Unit pursuant to Section 4.5 of the Plan. This Award represents the right to receive shares of Stock in an amount up to 250% of the Target PSUs (defined below), subject to the terms and conditions set forth herein and in the Agreement. 
Your right to receive settlement of this Award in an amount ranging from 0% to 250% of the Target PSUs shall vest and become earned and nonforfeitable upon (i) the Committee’s certification of the level of achievement of the Performance Goal (defined below) (“Earned PSUs”), and (ii) your satisfaction of the continued employment or service requirements described below under “Service Requirements.”  The portion of the Target PSUs actually earned upon satisfaction of both of the foregoing requirements is referred to herein as the “Vested PSUs.”

	Target Number of PSUs:	

_____________________ (the “Target PSUs”). 

	Performance Period:	January 1, ______ (the “Performance Period Commencement Date”) through December 31, ______ (the “Performance Period End Date”) (such period, the “Performance Period”).

						
	Service Requirements:

	Except as expressly provided in Section 3 of the Agreement, you must remain continuously employed by, or be in Continuous Service with, the Company or an Affiliate, as applicable, from the Date of Grant through: (a) the date the Committee certifies the level of achievement of the Performance Goal (the date of such certification, which is expected to occur within 5 days following the Performance Period End Date, the “Payout Determination Date”) with respect to [__]% of the Award, and (b) the first anniversary of the Performance Period End Date with respect to the remaining [__]% of the Award (each such date, the “Service Vesting Date” with respect to the relevant portion of the Award) to be eligible to receive payment of this Award, which is also based on the level of achievement with respect to the Performance Goal (as defined below).

	Performance Goal:
	Subject to the terms and conditions set forth in the Plan, the Agreement and herein, the number of Target PSUs, if any, that become Earned PSUs during the Performance Period will be determined in accordance with the following table:
Level of Achievement
Percentage of Target PSUs Earned*

< Threshold
[___]%

Threshold
[___]%

Target
[___]%

Maximum
[___]%

*The percentage of Target PSUs that become Earned PSUs for performance between the threshold, target and maximum achievement levels shall be calculated  using linear interpolation.
The “Performance Goal” for the Performance Period is based on the Company’s achievement with respect to relative total shareholder return, as described in Exhibit B attached hereto.
	Settlement:	Settlement of the Vested PSUs shall be made solely in shares of Stock, which shall be delivered to you in accordance with Section 5 of the Agreement. 

You shall forfeit this Award if you do not execute this Restricted Stock Unit Grant Notice (this “Grant Notice”) within a period of 5 days from the date of receipt (or such other period as the Committee shall provide).  By your signature below, you acknowledge and agree to be bound by the terms and conditions of the Plan, the Agreement and this Restricted Stock Unit Grant 
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Notice.  You acknowledge that you have received a copy of the Plan and the Agreement and have reviewed the Agreement, the Plan and this Grant Notice in their entirety and fully understand all provisions of the Agreement, the Plan and this Grant Notice.  You hereby agree to accept as binding, conclusive and final all decisions or interpretations of the Committee regarding any questions or determinations that arise under the Agreement, the Plan or this Grant Notice.  This Grant Notice may be executed in one or more counterparts (including portable document format (.pdf) and facsimile counterparts), each of which shall be deemed to be an original, but all of which together shall constitute one and the same agreement.
[Signature Page Follows]
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IN WITNESS WHEREOF, the Company has caused this Grant Notice to be executed by an officer thereunto duly authorized, and the Participant has executed this Grant Notice, effective for all purposes as provided above.
    PREFERRED APARTMENT COMMUNITIES, INC.

    By:                                
    Name:
    Title:

    PARTICIPANT

                                
    Name:
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EXHIBIT A
RESTRICTED STOCK UNIT AGREEMENT
This Restricted Stock Unit Agreement (together with the Grant Notice to which this Agreement is attached, this “Agreement”) is made as of the Date of Grant set forth in the Grant Notice to which this Agreement is attached, by and between Preferred Apartment Communities, Inc., a Maryland corporation (the “Company”), and ______________ (the “Participant”). Capitalized terms used but not specifically defined herein shall have the meanings specified in the Plan or the Grant Notice.
1.Award.  In consideration of the Participant’s past and/or continued employment with, or service to, the Company or its Affiliates and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, effective as of the Date of Grant set forth in the Grant Notice (the “Date of Grant”), the Company hereby grants to the Participant the target number of PSUs set forth in the Grant Notice on the terms and conditions set forth in the Grant Notice, this Agreement and the Plan, which is incorporated herein by reference as a part of this Agreement. In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall control.  To the extent vested, each PSU represents the right to receive one share of Stock, subject to the terms and conditions set forth in the Grant Notice, this Agreement and the Plan; provided, however, that, depending on the level of performance determined to be attained with respect to the Performance Goal, the number of shares of Stock that may be earned hereunder in respect of this Award may range from 0% to 250% of the Target PSUs.  Unless and until the PSUs have become vested in the manner set forth in the Grant Notice, the Participant will have no right to receive any Stock or other payments in respect of the PSUs.  Prior to settlement of this Award, the PSUs and this Award represent an unsecured obligation of the Company, payable only from the general assets of the Company.
2.Vesting of PSUs.  Except as otherwise set forth in Section 3, the PSUs shall vest and become Vested PSUs in accordance with the Participant’s satisfaction of the service-based vesting schedule set forth in the Grant Notice (the “Service Requirement”), and based on the extent to which the Company has satisfied the Performance Goal set forth in the Grant Notice, which shall be determined by the Committee in its sole discretion following the end of the Performance Period on the Payout Determination Date (and any PSUs that do not become Earned PSUs shall be automatically forfeited).  Unless and until the PSUs have vested and become Vested PSUs as described in the preceding sentence, the Participant will have no right to receive any dividends or other distribution with respect to the PSUs. 
3.Effect of Termination of Employment or Service; Change in Control. 
(a)Termination of Employment or Service due to Disability or Death. Notwithstanding anything in the Grant Notice, this Agreement or the Plan to the contrary, subject to Section 10, if your employment or Continuous Service relationship with the Company and any of its Subsidiaries is terminated as a result of your death or Disability prior to a Service Vesting Date, then you shall vest in a percentage of your unvested Earned PSUs that is equal to the number of days of employment served during the Performance Period, divided by the total 
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number of days in the Performance Period.  For purposes of determining the Performance Goal achievement level resulting in the amount of Earned PSUs for the foregoing calculation, if the date of your termination of employment or Continuous Service occurs prior to the Performance Period End Date, the Performance Period End Date shall be accelerated such that the Performance Period shall be deemed to end on the date of your termination of employment or Continuous Service Relationship, and such date shall be used as the Payout Determination Date; provided however, that if the Performance Goal achievement is not readily calculable as of the date of such termination of employment or Continuous Service, the Committee may base its determination upon such audited or unaudited financial information then available or may extend the Payout Determination Date until the date of the Company’s public release of earnings for the relevant period, in each case as the Committee deems relevant and/or appropriate.  Such pro-rated number of Earned PSUs shall be settled in the payment form described in Section 5 within 60 days following the date of your termination of employment or Continuous Service due to death or Disability.
(b)Other Termination of Employment or Service. Except as otherwise provided in Section 3(a), if the Participant has not satisfied the Service Requirements, then upon the termination of the Participant’s employment or other Continuous Service relationship with the Company or an Affiliate for any reason, any unvested PSUs (and all rights arising from such PSUs and from being a holder thereof) will terminate automatically without any further action by the Company and will be forfeited without further notice and at no cost to the Company.
(c)Change in Control.
(i)Except to the extent otherwise provided under any separate written change in control or severance plan that may be established by the Company and applicable to the Participant, the PSUs will become vested in connection with a Change in Control (as such term is defined in the Plan) only as provided under Article 6 of the Plan.  More specifically, in the event of a Change in Control, to the extent this Award remains subject to future vesting based all or in part on future achievement of Performance Goals, (A) the incomplete Performance Period shall be deemed to end on the date of the Change in Control, and the Committee shall determine the extent to which the Performance Goals have been met during the deemed Performance Period, based upon such audited or unaudited financial information then available that it deems relevant, (or if the Committee determines that the degree of achievement of the Performance Goals is not determinable, based on the assumption that the applicable target levels of the Performance Goal have been attained, or if the concept of target level of Performance Goals does not apply, on such other basis as may be determined by the Committee), and (B) the Award shall be settled to the Participant within ten days following the date of the Change in Control, based on the Committee’s determination of the degree of attainment of the Performance Goals and multiplying such Earned PSUs by a percentage based on the number of days elapsed during the deemed Performance Period, divided by the total number of days in the original Performance Period.  To the extent the original Performance Period under this Award has been completed prior to the occurrence of a Change in Control but the Award or portions of the Award remain outstanding on the date of the Change in Control, then the Award shall become immediately 
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vested and payable as of the date of the Change in Control unless the acquirer in the Change in Control maintains the Award in accordance with the terms specified in Section 6.1 of the Plan.
(ii)Nothing within this Section 3(c) is intended to modify Section 3(a) above regarding the pro-rata acceleration of your PSUs upon a termination of employment or Continuous Service due to death or Disability.  The provisions of Section 3(a) shall apply to a termination of your employment or Continuous Service for death or Disability, as applicable, whether or not such a termination of employment or Continuous Service were to occur in connection with a Change in Control. 
4.Dividend Equivalents.  In the event that the Company declares and pays a dividend in respect of its outstanding shares of Stock and, on the record date for such dividend, the Participant holds PSUs granted pursuant to this Agreement that have not been settled, the Company shall record the amount of such dividend in a bookkeeping account and pay to the Participant an amount in cash equal to the cash dividends the Participant would have received if the Participant was the holder of record, as of such record date, of a number of shares of Stock equal to the number of PSUs held by the Participant that have not been settled as of such record date but which become Vested PSUs, such payment to be made on the date on which any Vested PSUs are settled in accordance with Section 5.  For purposes of clarity, if the PSUs (or any portion thereof) are forfeited by the Participant pursuant to the terms of this Agreement, then the Participant shall also forfeit the Dividend Equivalents, if any, accrued with respect to such forfeited PSUs.  No interest will accrue on the Dividend Equivalents between the declaration and payment of the applicable dividends and the settlement of the Dividend Equivalents. 
5.Settlement of PSUs.  
(a)Settlement.  Except as otherwise provided in Section 3 above, as soon as administratively practicable following the satisfaction of the Service Requirement, but in no event later than March 15 of the calendar year following the year in which all vesting restrictions lapse, the Company shall deliver to the Participant (or the Participant’s permitted transferee, if applicable), a number of shares of Stock equal to the Earned PSUs.  In the event that any fractional PSU becomes earned hereunder, that PSU shall be rounded down at the time of settlement of such PSU. No fractional shares of Stock, nor the cash value of any fractional shares of Stock, shall be issuable or payable to the Participant pursuant to this Agreement. All shares of Stock, if any, issued hereunder shall be delivered either by delivering one or more certificates for such shares to the Participant or by entering such shares in book-entry form, as determined by the Committee in its sole discretion.  The value of shares of Stock shall not bear any interest owing to the passage of time.  Neither this Section 5 nor any action taken pursuant to or in accordance with this Agreement shall be construed to create a trust or a funded or secured obligation of any kind.
(b)Delivery Delay.  Notwithstanding any provision of this Agreement to the contrary, the issuance of shares of Stock hereunder may be postponed by the Company for such period as may be required for it to comply with any applicable federal or state securities law, or any national securities exchange listing requirements, and the Company is not obligated to issue or deliver any securities if, in the opinion of counsel for the Company, the issuance of the Shares 
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shall constitute a violation by the Participant or the Company of any provisions of any applicable federal or state law or of any regulations of any governmental authority or any national securities exchange.
6.Tax Withholding.  To the extent that the receipt, vesting or settlement of this Award results in compensation income or wages to the Participant for federal, state, local and/or foreign tax purposes, the Company shall withhold from the cash and from the shares of Stock otherwise to be delivered to the Participant an amount necessary to satisfy the Company’s obligation to withhold the amounts the Participant owes under applicable law unless the Participant delivers to the Company at the time such withholding obligation is due (either by tendering a cash payment or by delivering previously owned and unencumbered shares of Stock) such amount as the Company may require to meet such withholding obligations.  The maximum number of shares of Stock that may be so withheld shall be the number of shares of Stock that have an aggregate Fair Market Value (as such term is defined in the Plan) on the date of withholding equal to the aggregate amount of such tax liabilities determined based on the greatest withholding rates for federal, state, local and/or foreign tax purposes, including payroll taxes, that may be utilized without creating adverse accounting treatment for the Company with respect to this Award, as determined by the Committee. The Participant acknowledges that there may be adverse tax consequences upon the receipt, vesting or settlement of this Award or disposition of the underlying shares and that the Participant has been advised, and hereby is advised, to consult a tax advisor. The Participant represents that the Participant is in no manner relying on the Board of Directors, the Committee, the Company or any of its Affiliates or any of their respective managers, directors, officers, employees or authorized representatives (including, without limitation, attorneys, accountants, consultants, bankers, lenders, prospective lenders and financial representatives) for tax advice or an assessment of such tax consequences.
7.Non-Transferability.  Except as otherwise set forth in the Plan or this Agreement, the Participant shall not sell, transfer, pledge, hypothecate, assign or otherwise dispose of the Award nor any interest or right therein unless and until the shares of Stock underlying the PSUs have been issued, and all restrictions applicable to such shares have lapsed.  Any attempted sale, transfer, pledge, hypothecation, assignment or other disposition of the Award or any related interest in violation of the Plan or this Agreement shall be void and of no effect. 
8.Legends.  If a stock certificate is issued with respect to shares of Stock issued hereunder, such certificate shall bear such legend or legends as the Committee deems appropriate in order to reflect the restrictions set forth in this Agreement and to ensure compliance with the terms and provisions of this Agreement, the rules, regulations and other requirements of the Securities and Exchange Commission, any applicable laws or the requirements of any stock exchange on which the Stock is then listed.  If the shares of Stock issued hereunder are held in book-entry form, then such entry will reflect that the shares are subject to the restrictions set forth in this Agreement.
9.Securities Acknowledgment.  Participant recognizes that if the Participant is an “affiliate” within the meaning of Rule 144 under the Securities Act of 1933, as amended, that 
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any sales of the shares of Stock deliverable under this Award may be made only in compliance with Rule 144.
10.Execution of Receipts and Releases.  Any issuance or transfer of shares of Stock or other property to the Participant or the Participant’s legal representative, heir, legatee or distributee, in accordance with this Agreement shall be in full satisfaction of all claims of such Person hereunder.  As a condition precedent to such payment or issuance, the Company may require the Participant or the Participant’s legal representative, heir, legatee or distributee to execute (and not revoke within any time provided to do so) a release and receipt therefor in such form as it shall determine appropriate; provided, however, that any review period under such release will not modify the date of settlement with respect to Vested PSUs.
11.No Obligation to Continue Employment or Awards.   This Agreement is not an agreement of employment.  This Agreement does not guarantee that the Participant will continue as an employee or officer of the Company or any Affiliate during the entire, or any portion of the, term of this Agreement, including, but not limited to, any period during which the Award is outstanding, nor does it modify in any respect the right of the Company to terminate such employment or service relationship at any time.  The grant of this Award is a one-time benefit that does not create any contractual or other right to receive a grant of any other awards or benefits in lieu of awards in the future.  Any future awards will be granted at the sole discretion of the Company.
12.Rights as a Stockholder. The Participant shall have no rights as a stockholder of the Company with respect to any shares of Stock that may become deliverable hereunder unless and until the Participant has become the holder of record of such shares of Stock, whether the shares of Stock are represented by a certificate or through book entry or another similar method, and no adjustments shall be made for dividends in cash or other property, distributions or other rights in respect of any Shares, except as otherwise specifically provided for in the Plan or this Agreement.
13.Entire Agreement; Amendment.  
(a)This Agreement constitutes the entire agreement of the parties with regard to the subject matter hereof, and contains all the covenants, promises, representations, warranties and agreements between the parties with respect to the PSUs granted hereby; provided ̧ however, that the terms of this Agreement shall not modify and shall be subject to the terms and conditions of any employment, severance, change in control or other agreement or plan governing the Participant’s service relationship with the Company or any Affiliate that is in effect as of the date a determination is to be made under this Agreement.  Without limiting the scope of the preceding sentence, except as provided therein, all prior understandings and agreements, if any, among the parties hereto relating to the subject matter hereof are hereby null and void and of no further force and effect.  
(b)The Committee may, in its sole discretion, amend this Agreement from time to time in any manner that is not inconsistent with the Plan; provided, however, that except as otherwise provided in the Plan or this Agreement, any such amendment that materially 
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reduces the rights of the Participant shall be effective only if it is in writing and signed by both the Participant and an authorized officer of the Company.
14.Notices.  Any notice or communication given hereunder (each, a “Notice”) shall be in writing and shall be sent by personal delivery, by courier or by regular United States mail, first class and prepaid, to the appropriate party at the address set forth below: 
If to the Company, to:
Preferred Apartment Communities, Inc.
3284 Northside Parkway NW, Suite 150
Atlanta, GA 30327
Attention: General Counsel

If to the Participant, to the address of the Participant on file with the Company; or such other address or to the attention of such other person as a party shall have specified by prior Notice to the other party.  Each Notice shall only be given and effective upon actual receipt (or refusal of receipt).

15.Waiver of Jury Trial.  EACH OF THE PARTIES HERETO WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, VERBAL OR WRITTEN STATEMENT OR ACTION OF ANY PARTY HERETO.
16.Adjustments.  If any change is made to the outstanding Common Stock or the capital structure of the Company, if required, the shares of Stock subject to this Award shall be adjusted or terminated in any manner as contemplated by Section 7.2 of the Plan.
17.Agreement to Furnish Information.  The Participant agrees to furnish to the Company all information requested by the Company to enable it to comply with any reporting or other requirement imposed upon the Company by or under any applicable statute or regulation.
18.Clawback.  The provisions of Section 7.10 of the Plan regarding clawbacks shall apply to this Award.
19.Section 409A. Notwithstanding anything herein or in the Plan to the contrary, the PSUs granted pursuant to this Agreement are intended to be exempt from the applicable limitations and requirements of Code Section 409A, as amended from time to time, including the guidance and regulations promulgated thereunder and successor provisions, guidance, and regulations thereto (“Section 409A”) and shall be construed and interpreted in accordance with such intent. Nevertheless, to the extent that the Committee determines that the PSUs may not be exempt from Section 409A, then (a) for purposes of any payment scheduled to be made upon a Participant’s termination of employment, the Participant shall be considered to have terminated from employment only when the Participant incurs a “separation from service” within the meaning of section 409A(a)(2)(A)(i) of the Code, and (b) if the Participant is deemed to be a 
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“specified employee” within the meaning of Section 409A, as determined by the Committee, at a time when the Participant becomes eligible for settlement of the PSUs upon his “separation from service” within the meaning of Section 409A, then to the extent necessary to prevent any accelerated or additional tax under Section 409A, such settlement will be delayed until the earlier of: (i) the date that is six months following the Participant’s separation from service and (ii) the Participant’s death.  Notwithstanding the foregoing, the Company and its Affiliates make no representations that the PSUs provided under this Agreement are exempt from or compliant with Section 409A, and in no event shall the Company or any Affiliate be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by the Participant on account of non-compliance with Section 409A.
20.Miscellanous.
(a)Successors and Assigns.  This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, legal representatives, successors and assigns.
(b)Governing Law.  All questions concerning the construction, validity and interpretation of this Agreement will be governed by, and construed in accordance with, the domestic laws of the State of Maryland, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Maryland or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Maryland.
(c)Dispute Resolution.  In the event of any dispute, controversy or claim between the Company or any Affiliate and the Participant in any way concerning, arising out of or relating to the Plan or this Agreement (a “Dispute”), including without limitation any Dispute concerning, arising out of or relating to the interpretation, application or enforcement of the Plan or this Agreement, the parties hereby (i) agree and consent to the personal jurisdiction of the courts of the State of Georgia located in Fulton County and/or the Federal courts of the United States of America located in the Northern District of Georgia (collectively, the “Agreed Venue”) for resolution of any such Dispute, (ii) agree that those courts in the Agreed Venue, and only those courts, shall have exclusive jurisdiction to determine any Dispute, including, without limitation, any appeal, and (iii) agree that any cause of action arising out of this Agreement shall be deemed to have arisen from a transaction of business in the State of Georgia.  The parties also hereby irrevocably (A) submit to the jurisdiction of any competent court in the Agreed Venue (and of the appropriate appellate courts therefrom), (B) to the fullest extent permitted by law, waive any and all defenses the parties may have on the grounds of lack of jurisdiction of any such court and any other objection that such parties may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court (including without limitation any defense that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum), and (C) consent to service of process in any such suit, action or proceeding, anywhere in the world, whether within or without the jurisdiction of any such court, in any manner provided by applicable law.  Without limiting the foregoing, each party agrees that service of process on such party pursuant to a notice as provided in Section 14 shall be deemed effective service of process on such party.  Any action for enforcement or recognition of 
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any judgment obtained in connection with a Dispute may enforced in any competent court in the Agreed Venue or in any other court of competent jurisdiction.
(d)Waivers; Performance.  The failure of any party hereto at any time to require performance by another party of any provision of this Agreement shall not affect the right of such party to require performance of that provision, and any waiver by any party of any breach of any provision of this Agreement shall not be construed as a waiver of any continuing or succeeding breach of such provision, a waiver of the provision itself, or a waiver of any right under this Agreement.
(e)Consent to Electronic Delivery; Electronic Signature.  In lieu of receiving documents in paper format, the Participant agrees, to the fullest extent permitted by law, to accept electronic delivery of any documents that the Company may be required to deliver (including, but not limited to, prospectuses, prospectus supplements, grant or award notifications and agreements, account statements, annual and quarterly reports and all other forms of communications) in connection with this Award and any other award made or offered by the Company. Electronic delivery may be via a Company electronic mail system or by reference to a location on a Company intranet to which the Participant has access.  The Participant hereby consents to any and all procedures the Company has established or may establish for an electronic signature system for delivery and acceptance of any such documents that the Company may be required to deliver, and agrees that his or her electronic signature is the same as, and shall have the same force and effect as, his or her manual signature.
(f)Effect of Award on Other Compensation.  The value of the Participant’s Award is not part of his or her normal or expected compensation for purposes of calculating any severance, retirement, welfare, insurance or similar employee benefit.
(g)Headings. Headings are for convenience only and are not deemed to be part of this Agreement.
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EXHIBIT B
PERFORMANCE GOAL FOR PSUs
[•]
    
B-1AGREEMENT AND PLAN OF MERGER

 

This AGREEMENT AND PLAN OF MERGER
(the “Agreement”), entered into as of April 26, 2021, by and among Sauer Energy, Inc., a Nevada corporation (“Predecessor”),
Fast Track Solutions, Inc., a Nevada corporation (“Successor”) and a direct, wholly owned subsidiary of Predecessor,
and Fast Track Merger Sub, Inc., a Nevada corporation (“Merger Sub”) and a direct, wholly owned subsidiary of Successor.

 

RECITALS

 

WHEREAS, on the date hereof, Predecessor
has the authority to issue 700,000,000 shares, consisting of: (i) 500,000,000 shares of Common Stock, par value $0.0001 per share (the
“Predecessor Common Stock”), of which 359,996,332 common shares are issued and outstanding; (ii) 200,000,000 shares
of Preferred Stock, par value $0.0001 per share (the “Predecessor Preferred Stock”), of which 1,000,000 preferred shares
are authorized and designated as Series A Preferred Stock with 700,000 shares issued and outstanding. Together with the Predecessor Common
Stock, the (“Predecessor Capital Stock”).

 

WHEREAS, on the date hereof, Successor
has the authority to issue 700,000,000 shares, consisting of: (i) 500,000,000 shares of Common Stock, par value $0.0001 per share (the
“Successor Common Stock”), of which 1,000 common shares are issued and outstanding on the date hereof and held by Predecessor;
(ii) 200,000,000 shares of Preferred Stock, par value $0.0001 per share (the “Successor Preferred Stock”) of which
of which 1,000,000 preferred shares are designated as Series A Preferred Stock with no shares issued and outstanding . Together, with
the Successor Common Stock, the (“Successor Capital Stock”).

 

WHEREAS, on the date hereof, Merger
Sub has the authority to issue 700,000,000 shares, consisting of: (i) 500,000,000 shares of Common Stock, par value $0.0001 per share
(the “Merger Sub Common Stock”), of which 1,000 common shares are issued and outstanding on the date hereof and held
by Successor; (ii) 200,000,000 shares of Preferred Stock, par value $0.0001 (the “Merger Sub Preferred Stock”), of
which 1,000,000 preferred shares are authorized and designated as Series A Preferred Stock with no shares issued and outstanding. Together,
with the Merger Sub Common Stock, the (“Merger Sub Capital Stock”).

 

WHEREAS, Successor and Merger Sub
are newly formed corporations and organized for the purpose of participating in the transactions herein contemplated and actions related
thereto, own no assets and have taken no actions other than those necessary or advisable to organize the corporations and to affect the
transactions herein contemplated and actions related thereto.

 

WHEREAS, Predecessor desires to reorganize
into a holding company structure pursuant to NRS 92A.180, 92A.200, NRS 92A.230 and NRS 92A.250 under which Successor would become a holding
company by the merger of Predecessor with and into Merger Sub and with each share of Predecessor Capital Stock being converted in the
Merger (as defined below) into a share of Successor Capital Stock with each share or fraction of a share of the Capital Stock of the Predecessor
outstanding immediately prior to the Effective Time of the merger converted in the merger into a share or equal fraction of share of Capital
Stock of the Holding Company having the same designations, rights, powers and preferences, and the qualifications, limitations and restrictions
thereof, as the share of stock of the Predecessor being converted in the merger.

 

WHEREAS, the respective boards of directors
of Predecessor, Successor and Merger Sub have approved and declared advisable and in the best interests of each of such corporations and
its shareholders this Agreement and the transactions contemplated hereby, including without limitation, the Merger.

 

WHEREAS, under the respective Articles
of incorporation of Predecessor and Successor, the Successor Capital Stock has the same designations, rights, and powers and preferences,
and the qualifications, limitations and restrictions thereof, as the Predecessor Capital Stock which will be automatically converted pursuant
to the holding company reorganization;

 

WHEREAS, the Articles of Incorporation
and Bylaws of Successor, as the holding company, at the Effective Time of the merger contain provisions identical to the Articles of Incorporation
and Bylaws of Predecessor immediately prior to the merger, other than as permitted by NRS 92A.200.

 

The Articles of Incorporation of Predecessor
state that any act or transaction by or involving the Predecessor, other than the election or removal of directors of the Predecessor,
that requires for its adoption under the NRS or the Articles of Incorporation of Predecessor the approval of the stockholders of the Predecessor,
shall require in addition the approval of the stockholders of Fast Track Solutions, Inc. (or any successor thereto by merger), by the
same vote as is required by the Articles of Incorporation and/or the Bylaws of the Predecessor.

 

WHEREAS, the Articles
of Incorporation and Bylaws of Merger Sub are identical to the Articles of Incorporation and Bylaws of Predecessor immediately prior to
the merger, other than as permitted by NRS 92A.200;

 

WHEREAS, the Boards of Directors of
Predecessor, Successor, and Merger Sub have each approved this Agreement, shareholder approval not being required pursuant to NRS 92A.180;

 

WHEREAS, the parties hereto intend that
the reorganization contemplated by this Agreement shall constitute a tax-free organization pursuant to Section 368(a)(1) of the Internal
Revenue Code;

 

NOW, THEREFORE, in consideration of
the mutual agreements and covenants herein contained, Predecessor, Successor, and Merger Sub hereby agree as follows:

 

1. Merger. At the Effective Time
and in accordance with this Agreement and the provisions set forth in NRS 92A.180, 92A.200, NRS 92A.230 and NRS 92A.250, Predecessor shall
be merged with and into Merger Sub, (the “Merger”), and Predecessor shall be the surviving corporation, (hereinafter sometimes
referred to as the (“Surviving Corporation”). At the Effective Time, the separate corporate existence of Merger Sub
shall cease, and Predecessor shall become the wholly owned subsidiary of Successor, and Successor shall become the publicly traded company,
as the successor issuer.

 

2. 
Effective Time. As soon as practicable on or after the date hereof, the Surviving Corporation shall file this Agreement
with the Articles of Merger in accordance with the relevant provisions of the NRS, and with the Secretary of State of the State of Nevada
(the “Secretary of State”) and shall make all other filings or recordings required under the NRS, if any to effectuate
the Merger. The Merger shall become effective at such date and time in the Articles of Merger filed with the Secretary of State, )the
date and time the Merger becomes effective begin referred to herein as the “Effective Time”).

 

3. 
Effects of Merger. The Merger shall have the effects set forth in this Agreement and in the applicable provisions set forth
in NRS 92A.250. Without limiting the generality of the foregoing, and subject thereto, at the Effective Time, (i) right and title to all
assets (including real estate and other property) owned by, and every contract right possessed by, the Predecessor and Merger Sub shall
vest in the Surviving Corporation, and (ii) all liabilities and obligations of the Predecessor and Merger Sub shall become the liabilities
and obligations of the Surviving Corporation. The vesting of such rights, title, liabilities, and obligations in the Surviving Corporation
shall not be deemed to constitute an assignment or an undertaking or attempt to assign such rights, title, liabilities and obligations.
The conversion of securities of Predecessor into the identical and equivalent securities of Successor will not constitute a sale, resale
or different security. Securities issued by Successor pursuant to the merger shall be deemed to have been acquired at the same time as
the securities of the Predecessor exchanged in the merger. Successor securities issued solely in exchange for the securities of Predecessor
as part of a reorganization of the Predecessor into a holding company structure. Stockholders received securities of the same class evidencing
the same proportional interest in the holding company as they held in the Predecessor, and the rights and interests of the stockholders
of such securities are substantially the same as those they possessed as stockholders of the Predecessor’s securities. Immediately
following the merger, Successor has no significant assets other than securities of the Predecessor and its existing subsidiary(s) and
has the same assets and liabilities on a consolidated basis as the Predecessor had before the merger. Stockholders of Predecessor shall
be the stockholders of Successor. Successor common stock will trade in the OTC Markets under the Predecessor ticker symbol “SENY”
under which the common stock of Predecessor previously listed and traded until a new ticker symbol change has been released into the marketplace
by the Financial Industry Regulatory Authority.

 

4. 
Articles of Incorporation. As of the date hereof and immediately prior to the Effective time, the articles of incorporation
of the Predecessor shall be the articles of incorporation of the Surviving Corporation until thereafter amended as provided therein or
by the NRS.

 

5. 
Bylaws. From and after the Effective Time, the bylaws of the Predecessor, as in effect immediately prior to the Effective
Time, shall constitute the bylaws of the Surviving Corporation until thereafter amended as provided therein or by applicable law.

 

6. 
Directors. The directors of Predecessor in office immediately prior the Effective Time shall be the Directors of the Surviving
Corporation and will continue to hold office from the Effective Time until the earlier of their resignation or removal or until their
successors are duly elected or appointed and qualified.

 

7. 
Officers. The officers of Predecessor in office immediately prior to the Effective Time shall be the officers of the Surviving
Corporation and will continue to hold office from the Effective Time until the earlier of their resignation or removal or until their
successors are duly elected or appointed and qualified.

 

8. 
Conversion of Securities. At the Effective Time, by virtue of the merger and without any action on the part of the holder
thereof;

 

(a) 
Conversion of Predecessor Common Stock. Each share of Predecessor Common Stock issued and outstanding immediately prior
to the Effective Time shall be converted into one validly issued, fully paid and non-assessable share of Successor Common Stock;

 

(b) 
Conversion of Predecessor Common Stock Held as Treasury Stock. Each share of Predecessor Common Stock issued and outstanding
held in the Predecessor’s treasury shall be cancelled and retired.

 

(c) 
Conversion of Predecessor Preferred Stock. Each share of Predecessor Preferred Stock issued and outstanding immediately
prior to the Effective Time shall be converted into one validly issued, fully paid and non-assessable share of Successor Preferred Stock
having the same designations, rights, power, and preferences, and the qualifications, limitations, and restrictions thereof, as the corresponding
share of the Predecessor Preferred Stock.

 

(d) 
Conversion of Predecessor Preferred Stock Held as Treasury Stock. Each share of Predecessor Preferred Stock issued and outstanding
held in the Predecessor’s treasury shall be cancelled and retired.

 

(e) 
Convertible Notes, Options, Warrants, Purchase Rights, Units or Other Securities of Predecessor. Each unconverted Note,
or unexercised portion of any option, warrant, purchase right, unit or other security of Predecessor shall not be convertible into shares
of Successor Capital Stock pursuant to NRS 78.242 and the bylaws of Predecessor and Successor.

 

(f) 
Conversion of Successor Common Stock. Each share of Successor Common Stock issued and outstanding held in the name of Predecessor
immediately prior to the Effective Time shall be cancelled and retired and resume the status of authorized and unissued shares of Successor
Common Stock.

 

(g) 
Conversion of Merger Sub Common Stock. Each share of Merger Sub common Stock will be converted into one validly issued,
fully paid and non-assessable share of common stock of the Surviving Corporation.

 

(h) 
Rights of Certificate Holders. Upon conversion thereof in accordance with this Section 8, all shares of Predecessor
Capital Stock shall no longer be outstanding and shall cease to exist, and each holder of a certificate representing any such shares except,
in all cases, as set forth in Section 11 herein. In addition, each outstanding book-entry that, immediately prior to the Effective
Time, evidenced shares of Predecessor Capital Stock shall, from and after the Effective Time, be deemed and treated for all corporate
purposes to evidence the ownership of the same number of shares of Successor Capital Stock.

 

9. 
Other Agreements. At the Effective Time, Successor shall assume any obligation of Predecessor to deliver or make available
shares of Predecessor Capital Stock under any agreement or employee benefit plan not referred to in Section 8 herein to which Predecessor
is a party. Any reference to Predecessor Capital Stock under any such agreement or employee benefit plan shall be issuable in lieu of
each share of Predecessor Capital Stock required to be issued by any such agreement or employee benefit plan, subject to subsequent adjustment
as provided in any such agreement or employee benefit plan.

 

10. 
Further Assurances. From time to time, as and when required by the Surviving Corporation or by its successors or assigns,
there shall be executed and delivered on behalf of Predecessor such deeds and other instruments, and there shall be taken or caused to
be taken by it all such further and other action, as shall be appropriate, advisable or necessary in order to vest perfect or conform,
of record or otherwise, in the Surviving Corporation, the title to and possession of all property, interests, assets, rights, privileges,
immunities, powers, franchises and authority of Predecessor, and otherwise to carry out the purposes of this Agreement, and the officers
and directors of the Surviving Corporation are fully authorized, in the name and on behalf of Predecessor or otherwise, to take any and
all such action and to execute and deliver any and all such deeds and other instruments.

 

11. 
Certificates. At and after the Effective Time until thereafter surrendered for transfer or exchange in the ordinary course,
each outstanding certificate which immediately prior thereto represented shares of Predecessor Capital Stock shall be deemed for all purposes
to evidence ownership of and to represent the shares of Successor Capital Stock into which the shares of Predecessor Capital Stock represented
by such certificate have been converted as herein provided and shall be so registered on the books and records of Successor and its transfer
agent. At and after the Effective Time, the shares of capital stock of Successor shall be uncertificated; provided, that, any shares of
capital stock of Successor that are represented by outstanding certificates of Predecessor pursuant to the immediately preceding sentence
shall continue to be represented by certificates as provided therein and shall not be uncertificated unless and until a valid certificate
representing such shares pursuant to the immediately preceding sentence is delivered to Successor’s transfer agent at which time
such certificate shall be canceled and in lieu of the delivery of a certificate representing the applicable shares of capital stock of
Successor, Successor shall (i) issue to such holder the applicable uncertificated shares of capital stock of Successor by registering
such shares in Successor’s books and records as book-entry shares, upon which such shares shall thereafter be uncertificated and
(ii) take all action necessary to provide such holder with evidence of the uncertificated book-entry shares, including any action necessary
under applicable law in accordance therewith, including in accordance with NRS.

 

12. 
Amendment. The parties hereto, by mutual consent of their respective boards of directors, may amend, modify or supplement
this Agreement prior to the Effective Time. Surviving Corporation shall cause to be filed with the Nevada Secretary of State such certificates
or documents required to give effect thereto.

 

13. 
Termination. This Agreement may be terminated, and the Merger and the other transactions provided for herein may be abandoned,
at any time prior to the Effective Time, whether before or after approval of this Agreement by the board of directors of Predecessor,
Successor, and Merger Sub, or by action of the board of directors of Predecessor if it determines for any reason, in its sole judgment
and discretion, that the consummation of the Agreement would be advisable or not and in the best interests of Predecessor and its stockholders.

 

14. 
Counterparts. This Agreement may be executed in one or more counterparts, and each such counterpart hereof shall be deemed
to be an original instrument, but all such counterparts together shall constitute but one agreement.

 

15. 
Descriptive Headings. The descriptive headings herein are inserted for convenience of reference only and are not intended
to be part of or to affect the meaning or interpretation of this Agreement.

 

16. 
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada.

 

IN WITNESS WHEREOF, Predecessor, Successor,
and Merger Sub have caused this Agreement to be executed and delivered as of the date first written above.

 

 

 

SAUER ENERGY, INC. (“PREDECESSOR”)

By: /s/ Jeffrey DeNunzio

Name: Jeffrey DeNunzio

Title:President, Secretary and Director

 

FAST TRACK SOLUTIONS, INC. (“SUCCESSOR”)

By: /s/ Jeffrey DeNunzio

Name: Jeffrey DeNunzio

Title:President, Secretary and Director

 

 

FAST TRACK MERGER SUB, INC. (“MERGER SUB”)

By: /s/ Jeffrey DeNunzio

Name: Jeffrey DeNunzio

Title:President, Secretary and Director

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