Document:

Exhibit 10.1

 

NEKTAR THERAPEUTICS

 

2017 PERFORMANCE INCENTIVE PLAN

 

		1.	PURPOSE OF PLAN

 

The purpose of this Nektar Therapeutics 2017 Performance
Incentive Plan (this “Plan”) of Nektar Therapeutics, a Delaware corporation (the “Corporation”),
is to promote the success of the Corporation and to increase stockholder value by providing an additional means through the grant
of awards to attract, motivate, retain and reward selected employees and other eligible persons.

 

		2.	ELIGIBILITY

 

The Administrator (as such term is defined in Section 3.1)
may grant awards under this Plan only to those persons that the Administrator determines to be Eligible Persons. An “Eligible
Person” is any person who is either: (a) an officer (whether or not a director) or employee of the Corporation or
one of its Subsidiaries; (b) a director of the Corporation or one of its Subsidiaries; or (c) an individual consultant
or advisor who renders or has rendered bona fide services (other than services in connection with the offering or sale of securities
of the Corporation or one of its Subsidiaries in a capital-raising transaction or as a market maker or promoter of securities of
the Corporation or one of its Subsidiaries) to the Corporation or one of its Subsidiaries and who is selected to participate in
this Plan by the Administrator; provided, however, that a person who is otherwise an Eligible Person under clause (c) above
may participate in this Plan only if such participation would not adversely affect either the Corporation’s eligibility to
use Form S-8 to register under the Securities Act of 1933, as amended (the “Securities Act”), the offering and
sale of shares issuable under this Plan by the Corporation or the Corporation’s compliance with any other applicable laws.
An Eligible Person who has been granted an award (a “participant”) may, if otherwise eligible, be granted additional
awards if the Administrator shall so determine. As used herein, “Subsidiary” means any corporation or other
entity a majority of whose outstanding voting stock or voting power is beneficially owned directly or indirectly by the Corporation;
and “Board” means the Board of Directors of the Corporation.

 

		3.	PLAN ADMINISTRATION

 

		3.1	The Administrator. This Plan shall be administered by and all awards under this Plan
shall be authorized by the Administrator. The “Administrator” means the Board or one or more committees appointed by
the Board or another committee (within its delegated authority) to administer all or certain aspects of this Plan. Any such committee
shall be comprised solely of one or more directors or such number of directors as may be required under applicable law. A committee
may delegate some or all of its authority to another committee so constituted. The Board or a committee comprised solely of directors
may also delegate, to the extent permitted by Section 157(c) of the Delaware General Corporation Law and any other applicable
law, to one or more officers of the Corporation, its powers under this Plan (a) to designate the officers and employees of
the Corporation and its Subsidiaries who will receive grants of awards under this Plan, and (b) to determine the number of
shares subject to, and the other terms and conditions of, such awards. The Board may delegate different levels of authority to
different committees with administrative and grant authority under this Plan. Unless otherwise provided in the Bylaws of the Corporation
or the applicable charter of any Administrator: (a) a majority of the members of the acting Administrator shall constitute
a quorum, and (b) the vote of a majority of the members present assuming the presence of a quorum or the unanimous written
consent of the members of the Administrator shall constitute action by the acting Administrator.

 

     

     

    

 

With respect to awards intended to satisfy the requirements
for performance-based compensation under Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”),
this Plan shall be administered by a committee consisting solely of two or more outside directors (as this requirement is applied
under Section 162(m) of the Code); provided, however, that the failure to satisfy such requirement shall not affect the validity
of the action of any committee otherwise duly authorized and acting in the matter. Award grants, and transactions in or involving
awards, intended to be exempt under Rule 16b-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
must be duly and timely authorized by the Board or a committee consisting solely of two or more non-employee directors (as this
requirement is applied under Rule 16b-3 promulgated under the Exchange Act). To the extent required by any applicable listing agency,
this Plan shall be administered by a committee composed entirely of independent directors (within the meaning of the applicable
listing agency).

 

		3.2	Powers of the Administrator. Subject to the express provisions of this Plan, the
Administrator is authorized and empowered to do all things necessary or desirable in connection with the authorization of awards
and the administration of this Plan (in the case of a committee or delegation to one or more officers, within the authority delegated
to that committee or person(s)), including, without limitation, the authority to:

 

		(a)	determine eligibility and, from among those persons determined to be eligible, the particular Eligible
Persons who will receive an award under this Plan;

 

		(b)	grant awards to Eligible Persons, determine the price at which securities will be offered or awarded
and the number of securities to be offered or awarded to any of such persons, determine the other specific terms and conditions
of such awards consistent with the express limits of this Plan, establish the installments (if any) in which such awards shall
become exercisable or shall vest (which may include, without limitation, performance and/or time-based schedules), or determine
that no delayed exercisability or vesting is required, establish any applicable performance targets, and establish the events of
termination or reversion of such awards;

 

		(c)	approve the forms of award agreements (which need not be identical either as to type of award or
among participants);

 

		(d)	construe and interpret this Plan and any agreements defining the rights and obligations of the
Corporation, its Subsidiaries, and participants under this Plan, further define the terms used in this Plan, and prescribe, amend
and rescind rules and regulations relating to the administration of this Plan or the awards granted under this Plan;

 

		(e)	cancel, modify, or waive the Corporation’s rights with respect to, or modify, discontinue,
suspend, or terminate any or all outstanding awards, subject to any required consent under Section 8.6.5;

 

		(f)	accelerate or extend the vesting or exercisability or extend the term of any or all such outstanding
awards (in the case of options or stock appreciation rights, within the maximum ten-year term of such awards) in such circumstances
as the Administrator may deem appropriate (including, without limitation, in connection with a termination of employment or services
or other events of a personal nature) subject to any required consent under Section 8.6.5;

 

		(g)	adjust the number of shares of Common Stock subject to any award, adjust the price of any or all
outstanding awards or otherwise change previously imposed terms and conditions, in such circumstances as the Administrator may
deem appropriate, in each case subject to Sections 4 and 8.6 (and subject to the no repricing provision below);

 

		(h)	determine the date of grant of an award, which may be a designated date after but not before the
date of the Administrator’s action (unless otherwise designated by the Administrator, the date of grant of an award shall
be the date upon which the Administrator took the action granting an award);

 

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		(i)	determine whether, and the extent to which, adjustments are required pursuant to Section 7
hereof and authorize the termination, conversion, substitution or succession of awards upon the occurrence of an event of the type
described in Section 7;

 

		(j)	acquire or settle (subject to Sections 7 and 8.6) rights under awards in cash, stock of equivalent
value, or other consideration (subject to the no repricing provision below); and

 

		(k)	determine the fair market value of the Common Stock or awards under this Plan from time to time
and/or the manner in which such value will be determined.

 

Notwithstanding the foregoing and except for an adjustment
pursuant to Section 7.1 or a repricing approved by stockholders, in no case may the Administrator (1) amend an outstanding
stock option or stock appreciation right to reduce the exercise price or base price of the award, (2) cancel, exchange, or
surrender an outstanding stock option or stock appreciation right in exchange for cash or other awards for the purpose of repricing
the award, or (3) cancel, exchange, or surrender an outstanding stock option or stock appreciation right in exchange for an
option or stock appreciation right with an exercise or base price that is less than the exercise or base price of the original
award.

 

		3.3	Binding Determinations. Any action taken by, or inaction of, the Corporation, any
Subsidiary, or the Administrator relating or pursuant to this Plan and within its authority hereunder or under applicable law shall
be within the absolute discretion of that entity or body and shall be conclusive and binding upon all persons. Neither the Board
nor any Board committee, nor any member thereof or person acting at the direction thereof, shall be liable for any act, omission,
interpretation, construction or determination made in good faith in connection with this Plan (or any award made under this Plan),
and all such persons shall be entitled to indemnification and reimbursement by the Corporation in respect of any claim, loss, damage
or expense (including, without limitation, attorneys’ fees) arising or resulting therefrom to the fullest extent permitted
by law and/or under any directors and officers liability insurance coverage that may be in effect from time to time.

 

		3.4	Reliance on Experts. In making any determination or in taking or not taking any action
under this Plan, the Administrator may obtain and may rely upon the advice of experts, including employees and professional advisors
to the Corporation. No director, officer or agent of the Corporation or any of its Subsidiaries shall be liable for any such action
or determination taken or made or omitted in good faith.

 

		3.5	Delegation. The Administrator may delegate ministerial, non-discretionary functions
to individuals who are officers or employees of the Corporation or any of its Subsidiaries or to third parties.

 

		4.	SHARES OF COMMON STOCK SUBJECT TO THE PLAN; SHARE LIMITS

 

		4.1	Shares Available. Subject to the provisions of Section 7.1, the capital stock
that may be delivered under this Plan shall be shares of the Corporation’s authorized but unissued Common Stock and any shares
of its Common Stock held as treasury shares. For purposes of this Plan, “Common Stock” shall mean the common
stock of the Corporation and such other securities or property as may become the subject of awards under this Plan, or may become
subject to such awards, pursuant to an adjustment made under Section 7.1.

 

		4.2	Share Limits. Subject to Section 7.1, the maximum number of shares of Common Stock
that may be delivered pursuant to awards granted to Eligible Persons under this Plan (the “Share Limit”) is
equal to 8,300,000 shares of Common Stock (reduced by the number of shares of Common Stock subject to awards granted under the
Corporation’s 2012 Performance Incentive Plan (the “2012 Plan”) on or after March 31, 2017).

 

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Shares issued
in respect of any “Full-Value Award” granted under this Plan shall be counted against the foregoing Share Limit as
1.5 shares for every one share issued in connection with such award (the “Full-Value Award Ratio”). (For example,
if a stock bonus of 100 shares of Common Stock is granted under this Plan, 150 shares shall be charged against the Share Limit
in connection with that award.) For this purpose, a “Full-Value Award” means any award under this Plan that
is not a stock option grant or a stock appreciation right grant.

 

The following limits also apply
with respect to awards granted under this Plan:

 

		(a)	The maximum number of shares of Common Stock that may be delivered pursuant to options qualified as incentive stock options
granted under this Plan is 8,300,000 shares.

 

		(b)	The maximum number of shares of Common Stock subject to options and stock appreciation rights that are granted during any calendar
year to any individual under this Plan is 3,000,000 shares.

 

		(c)	Additional limits with respect to Performance-Based Awards are set forth in Section 5.2.3.

 

		(d)	The aggregate value of cash compensation and the grant date fair value (computed in accordance with generally accepted accounting
principles) of shares of Common Stock that may be paid or granted during any calendar year to any non-employee director shall not
exceed $1,200,000 for existing non-employee directors and $2,200,000 for new non-employee directors.

 

Each of the foregoing numerical limits is subject
to adjustment as contemplated by Section 4.3, Section 7.1, and Section 8.10.

 

		4.3	Awards Settled in Cash, Reissue of Awards and Shares. Except as provided in the next
sentence, shares that are subject to or underlie awards granted under this Plan or the 2012 Plan, the Corporation's 2008 Equity
Incentive Plan, the Corporation's 2000 Non-Officer Equity Incentive Plan, or the Corporation's 2000 Equity Incentive Plan (collectively,
the “Prior Plans”), which expire or for any reason are cancelled or terminated, are forfeited, fail to vest,
or for any other reason are not paid or delivered under this Plan or a Prior Plan shall again be available for subsequent awards
under this Plan (with any such shares increasing the Share Limit based on the Full-Value Award Ratio specified in Section 4.2
or, with respect to awards granted under a Prior Plan, the Full-Value Award Ratio as specified in such Prior Plan). Shares that
are exchanged by a participant or withheld by the Corporation as full or partial payment in connection with any award under this
Plan, as well as any shares exchanged by a participant or withheld by the Corporation or one of its Subsidiaries to satisfy the
tax withholding obligations related to any award, shall not be available for subsequent awards under this Plan. To the extent that
an award granted under this Plan or a Prior Plan is settled in cash or a form other than shares of Common Stock, the shares that
would have been delivered had there been no such cash or other settlement shall again be available for subsequent awards under
this Plan (with any such shares increasing the Share Limit based on the Full-Value Award Ratio specified in Section 4.2 or,
with respect to awards granted under a Prior Plan, the Full-Value Award Ratio as specified in such Prior Plan). In the event that
shares of Common Stock are delivered in respect of a dividend equivalent right granted under this Plan, the number of shares delivered
with respect to the award shall be counted against the share limits of this Plan (including, for purposes of clarity, the limits
of Section 4.2 of this Plan). (For purposes of clarity, if 1,000 dividend equivalent rights are granted and outstanding when
the Corporation pays a dividend, and 50 shares are delivered in payment of those rights with respect to that dividend, 75 shares
(after giving effect to the Full-Value Award premium counting rules) shall be counted against the share limits of this Plan). To
the extent that shares of Common Stock are delivered pursuant to the exercise of a stock appreciation right or stock option granted
under this Plan, the number of underlying shares as to which the exercise related shall be counted against the applicable share
limits under Section 4.2, as opposed to only counting the shares issued. (For purposes of clarity, if a stock appreciation
right relates to 100,000 shares and is exercised at a time when the payment due to the participant is 15,000 shares, 100,000 shares
shall be charged against the applicable share limits under Section 4.2 with respect to such exercise.) Refer to Section 8.10
for application of the foregoing share limits with respect to assumed awards. The foregoing adjustments to the share limits of
this Plan are subject to any applicable limitations under Section 162(m) of the Code with respect to awards intended as performance-based
compensation thereunder.

 

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		4.4	Reservation of Shares; No Fractional Shares; Minimum Issue. The Corporation shall
at all times reserve a number of shares of Common Stock sufficient to cover the Corporation’s obligations and contingent
obligations to deliver shares with respect to awards then outstanding under this Plan (exclusive of any dividend equivalent obligations
to the extent the Corporation has the right to settle such rights in cash). No fractional shares shall be delivered under this
Plan. The Administrator may pay cash in lieu of any fractional shares in settlements of awards under this Plan. The Administrator
may from time to time impose a limit (of not greater than 100 shares) on the minimum number of shares that may be purchased or
exercised as to awards granted under this Plan unless (as to any particular award) the total number purchased or exercised is the
total number at the time available for purchase or exercise under the award.

 

		5.	AWARDS

 

		5.1	Type and Form of Awards. The Administrator shall determine the type or types of award(s)
to be made to each selected Eligible Person. Awards may be granted singly, in combination or in tandem. Awards also may be made
in combination or in tandem with, in replacement of, as alternatives to, or as the payment form for grants or rights under any
other employee or compensation plan of the Corporation or one of its Subsidiaries. The types of awards that may be granted under
this Plan are (subject, in each case, to the no repricing provisions of Section 3.2):

 

5.1.1       Stock
Options. A stock option is the grant of a right to purchase a specified number of shares of Common Stock during a specified
period as determined by the Administrator. An option may be intended as an incentive stock option within the meaning of Section 422
of the Code (an “ISO”) or a nonqualified stock option (an option not intended to be an ISO). The award agreement
for an option will indicate if the option is intended as an ISO. Each option, or portion thereof, that is not an ISO, shall be
a nonqualified stock option. The maximum term of each option (ISO or nonqualified) shall be eight (8) years. The per share
exercise price for each option shall be not less than 100% of the fair market value of a share of Common Stock on the date of grant
of the option. When an option is exercised, the exercise price for the shares to be purchased shall be paid in full in cash or
such other method permitted by the Administrator consistent with Section 5.5.

 

5.1.2       Additional
Rules Applicable to ISOs. To the extent that the aggregate fair market value (determined at the time of grant of the applicable
option) of stock with respect to which ISOs first become exercisable by a participant in any calendar year exceeds $100,000, taking
into account both Common Stock subject to ISOs under this Plan and stock subject to ISOs under all other plans of the Corporation
or one of its Subsidiaries (or any parent or predecessor corporation to the extent required by and within the meaning of Section 422
of the Code and the regulations promulgated thereunder), such options shall be treated as nonqualified stock options. In reducing
the number of options treated as ISOs to meet the $100,000 limit, the most recently granted options shall be reduced first. To
the extent a reduction of simultaneously granted options is necessary to meet the $100,000 limit, the Administrator may, in the
manner and to the extent permitted by law, designate which shares of Common Stock are to be treated as shares acquired pursuant
to the exercise of an ISO. ISOs may only be granted to employees of the Corporation or one of its subsidiaries (for this purpose,
the term “subsidiary” is used as defined in Section 424(f) of the Code, which generally requires an unbroken chain
of ownership of at least 50% of the total combined voting power of all classes of stock of each subsidiary in the chain beginning
with the Corporation and ending with the subsidiary in question). There shall be imposed in any award agreement relating to ISOs
such other terms and conditions as from time to time are required in order that the option be an “incentive stock option”
as that term is defined in Section 422 of the Code. No ISO may be granted to any person who, at the time the option is granted,
owns (or is deemed to own under Section 424(d) of the Code) shares of outstanding Common Stock possessing more than 10% of
the total combined voting power of all classes of stock of the Corporation, unless the exercise price of such option is at least
110% of the fair market value of the stock subject to the option and such option by its terms is not exercisable after the expiration
of five years from the date such option is granted.

 

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5.1.3       Stock
Appreciation Rights. A stock appreciation right or “SAR” is a right to receive a payment, in cash and/or
Common Stock (as specified in the applicable award agreement), equal to the excess of the fair market value of a specified number
of shares of Common Stock on the date the SAR is exercised over the “base price” of the award, which base price
shall be set forth in the applicable award agreement and shall be not less than 100% of the fair market value of a share of Common
Stock on the date of grant of the SAR. The maximum term of a SAR shall be eight (8) years.

 

5.1.4       Other
Awards; Dividend Equivalent Rights. The other types of awards that may be granted under this Plan include: (a) stock
bonuses, restricted stock, performance stock, stock units, phantom stock or similar rights to purchase or acquire shares, whether
at a fixed or variable price or ratio related to the Common Stock, upon the passage of time, the occurrence of one or more events,
or the satisfaction of performance criteria or other conditions, or any combination thereof; (b) any similar securities with
a value derived from the value of or related to the Common Stock and/or returns thereon; or (c) cash awards. Dividend equivalent
rights may be granted as a separate award or in connection with another award under this Plan; provided, however, that dividend
equivalent rights may not be granted in connection with a stock option or SAR granted under this Plan. Notwithstanding anything
in the Plan or an award agreement to the contrary, any dividends and/or dividend equivalents as to the unvested portion of an award
(including, without limitation, a restricted stock award) will be subject to termination and forfeiture to the same extent as the
corresponding portion of the award to which they relate.

 

		5.2	Section 162(m) Performance-Based Awards. Without limiting the generality of
the foregoing, any of the types of awards listed in Section 5.1.4 above may be, and options and SARs granted to officers and
employees (“Qualifying Options” and “Qualifying SARS,” respectively) typically will be, granted
as awards intended to satisfy the requirements for “performance-based compensation” within the meaning of Section 162(m)
of the Code (“Performance-Based Awards”). The grant, vesting, exercisability or payment of Performance-Based
Awards shall depend (or, in the case of Qualifying Options or Qualifying SARs, may also depend) on the degree of achievement of
one or more performance goals relative to a pre-established targeted level or levels using one or more of the Business Criteria
set forth below (on an absolute or relative (including, without limitation, relative to the performance of other companies or upon
comparisons of any of the indicators of performance relative to other companies) basis) for the Corporation on a consolidated basis
or for one or more of the Corporation’s subsidiaries, segments, divisions or business units, or any combination of the foregoing.
Any Qualifying Option or Qualifying SAR shall be subject only to the requirements of Section 5.2.1 and 5.2.3 in order for
such award to satisfy the requirements for “performance-based compensation” under Section 162(m) of the Code.
Any other Performance-Based Award shall be subject to all of the following provisions of this Section 5.2.

 

5.2.1       Class;
Administrator. The eligible class of persons for Performance-Based Awards under this Section 5.2 shall be officers
and employees of the Corporation or one of its Subsidiaries. The Administrator approving Performance-Based Awards or making any
certification required pursuant to Section 5.2.4 must be constituted as provided in Section 3.1 for awards that are intended
as performance-based compensation under Section 162(m) of the Code.

 

5.2.2       Performance
Goals. The specific performance goals for Performance-Based Awards (other than Qualifying Options and Qualifying SARs)
shall be, on an absolute or relative basis, established based on one or more of the following business criteria (“Business
Criteria”) as selected by the Administrator in its sole discretion: earnings per share; cash flow (which means cash and
cash equivalents derived from either net cash flow from operations or net cash flow from operations, financing and investing activities);
working capital; stock price; total stockholder return; revenue; gross profit; operating income; net earnings (before or after
interest, taxes, depreciation and/or amortization); gross margin; operating margin; net margin; return on equity or on assets or
on net investment; cost containment or reduction; regulatory submissions or approvals; manufacturing production; completion of
strategic partnerships; research milestones; or any combination thereof. As applicable, these terms are used as applied under generally
accepted accounting principles or in the financial reporting of the Corporation or of its Subsidiaries. The applicable performance
goals may be applied on a pre- or post-tax basis and may be adjusted in accordance with Section 162(m) of the Code to include or
exclude objectively determinable components of any performance goal, including, without limitation, foreign exchange gains and
losses, asset write-downs, acquisitions and divestitures, change in fiscal year, unbudgeted capital expenditures, special charges
such as restructuring or impairment charges, debt refinancing costs, extraordinary or noncash items, unusual, infrequently occurring,
nonrecurring or one-time events affecting the Corporation or its financial statements or changes in law or accounting principles
(“Adjustment Events”). To qualify awards as performance-based under Section 162(m), the applicable
Business Criterion (or Business Criteria, as the case may be), specific performance goal or goals (“targets”) and Adjustment
Events must be established and approved by the Administrator during the first 90 days of the performance period (and, in the case
of performance periods of less than one year, in no event after 25% of the performance period has elapsed) and while performance
relating to such target(s) remains substantially uncertain within the meaning of Section 162(m) of the Code. The applicable
performance measurement period may not be less than three months nor more than 10 years.

 

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5.2.3       Form
of Payment; Maximum Performance-Based Award. Grants or awards under this Section 5.2 may be paid in cash or shares
of Common Stock or any combination thereof. Grants of Qualifying Options and Qualifying SARs to any one participant in any one
calendar year shall be subject to the limit set forth in Section 4.2(b). The maximum number of shares of Common Stock which
may be subject to Performance-Based Awards (including Performance-Based Awards payable in shares of Common Stock and Performance-Based
Awards payable in cash where the amount of cash payable upon or following vesting of the award is determined with reference to
the fair market value of a share of Common Stock at such time) that are granted to any one participant in any one calendar year
shall not exceed 3,000,000 shares, either individually or in the aggregate, subject to adjustment as provided in Section 7.1;
provided that this limit shall not apply to Qualifying Options and Qualifying SARs (which are covered by the limit of Section 4.2(b)).
The aggregate amount of compensation to be paid to any one participant in respect of all Performance-Based Awards payable only
in cash (excluding cash awards covered by the preceding sentence where the cash payment is determined with reference to the fair
market value of a share of Common Stock upon or following the vesting of the award) and granted to that participant in any one
calendar year shall not exceed $5,000,000. Awards that are cancelled during the year shall be counted against these limits to the
extent required by Section 162(m) of the Code.

 

5.2.4       Certification
of Payment. Before any Performance-Based Award under this Section 5.2 (other than Qualifying Options and Qualifying
SARs) is paid and to the extent required to qualify the award as performance-based compensation within the meaning of Section 162(m)
of the Code, the Administrator must certify in writing that the performance target(s) and any other material terms of the Performance-Based
Award were in fact timely satisfied.

 

5.2.5       Reservation
of Discretion. The Administrator will have the discretion to determine the restrictions or other limitations of the individual
awards granted under this Section 5.2 including the authority to reduce awards, payouts or vesting or to pay no awards, in
its sole discretion, if the Administrator preserves such authority at the time of grant by language to this effect in its authorizing
resolutions or otherwise.

 

5.2.6       Expiration
of Grant Authority. As required pursuant to Section 162(m) of the Code and the regulations promulgated thereunder,
the Administrator’s authority to grant new awards that are intended to qualify as performance-based compensation within the
meaning of Section 162(m) of the Code (other than Qualifying Options and Qualifying SARs) shall terminate upon the first meeting
of the Corporation’s stockholders that occurs in the fifth year following the year in which the Corporation’s stockholders
first approve this Plan, subject to any subsequent extension that may be approved by stockholders.

 

		5.3	Award Agreements. Each award shall be evidenced by either (1) a written award
agreement in a form approved by the Administrator and executed by the Corporation by an officer duly authorized to act on its behalf,
or (2) an electronic notice of award grant in a form approved by the Administrator and recorded by the Corporation (or its
designee) in an electronic recordkeeping system used for the purpose of tracking award grants under this Plan generally (in each
case, an “award agreement”), as the Administrator may provide and, in each case and if required by the Administrator,
executed or otherwise electronically accepted by the recipient of the award in such form and manner as the Administrator may require.
The Administrator may authorize any officer of the Corporation (other than the particular award recipient) to execute any or all
award agreements on behalf of the Corporation. The award agreement shall set forth the material terms and conditions of the award
as established by the Administrator consistent with the express limitations of this Plan. Notwithstanding anything contained herein
to the contrary, the Administrator may approve an award agreement that, upon the termination of a participant’s employment
or service, provides that, or may, in its sole discretion based on a review of all relevant facts and circumstances, otherwise
take action regarding an award agreement such that (i) any or all outstanding stock options and SARs shall become exercisable in
part or in full, (ii) all or a portion of the restriction or vesting period applicable to any outstanding award shall lapse, (iii)
all or a portion of the performance measurement period applicable to any outstanding award shall lapse and (iv) the performance
goals applicable to any outstanding award (if any) shall be deemed to be satisfied at the target, maximum or any other interim
level.

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		5.4	Deferrals and Settlements. Payment of awards may be in the form of cash, Common Stock,
other awards or combinations thereof as the Administrator shall determine, and with such restrictions as it may impose. The Administrator
may also require or permit participants to elect to defer the issuance of shares or the settlement of awards in cash under such
rules and procedures as it may establish under this Plan. The Administrator may also provide that deferred settlements include
the payment or crediting of interest or other earnings on the deferral amounts, or the payment or crediting of dividend equivalents
where the deferred amounts are denominated in shares.

 

		5.5	Consideration for Common Stock or Awards. The purchase price for any award granted
under this Plan or the Common Stock to be delivered pursuant to an award, as applicable, may be paid by means of any lawful consideration
as determined by the Administrator, including, without limitation, one or a combination of the following methods:

 

		·	services rendered by the recipient of such award;

 

		·	cash, check payable to the order of the Corporation, or electronic funds transfer;

 

		·	notice and third party payment in such manner as may be authorized by the Administrator;

 

		·	the delivery of previously owned shares of Common Stock;

 

		·	by a reduction in the number of shares otherwise deliverable pursuant to the award; or

 

		·	subject to such procedures as the Administrator may adopt, pursuant to a “cashless exercise” with a third party
who provides financing for the purposes of (or who otherwise facilitates) the purchase or exercise of awards.

 

In no event shall any shares newly-issued by the Corporation
be issued for less than the minimum lawful consideration for such shares or for consideration other than consideration permitted
by applicable state law. Shares of Common Stock used to satisfy the exercise price of an option shall be valued at their fair market
value on the date of exercise. The Corporation will not be obligated to deliver any shares unless and until it receives full payment
of the exercise or purchase price therefor and any related withholding obligations under Section 8.5 and any other conditions
to exercise or purchase have been satisfied.

 

		5.6	Definition of Fair Market Value. For purposes of this Plan, “fair market value”
shall mean the closing price (in regular trading) for a share of Common Stock on the NASDAQ Stock Market (the “Market”)
for the date in question or, if no sales of Common Stock were reported on the Market on that date, the closing price (in regular
trading) for a share of Common Stock on the Market for the next preceding day on which sales of Common Stock were reported on the
Market. The Administrator may, however, provide with respect to one or more awards that the fair market value shall equal the closing
price (in regular trading) for a share of Common Stock on the Market on the last trading day preceding the date in question or
the average of the high and low trading prices of a share of Common Stock on the Market for the date in question or the most recent
trading day. If the Common Stock is no longer listed or is no longer actively traded on the Market as of the applicable date, the
fair market value of the Common Stock shall be the value as reasonably determined by the Administrator for purposes of the award
in the circumstances. The Administrator also may adopt a different methodology for determining fair market value with respect to
one or more awards if a different methodology is necessary or advisable to secure any intended favorable tax, legal or other treatment
for the particular award(s) (for example, and without limitation, the Administrator may provide that fair market value for purposes
of one or more awards will be based on an average of closing prices (or the average of high and low daily trading prices) for a
specified period preceding the relevant date).

 

    	 	8	 

     

    

 

		5.7	Transfer Restrictions. 

 

5.7.1       Limitations
on Exercise and Transfer. Unless otherwise expressly provided in (or pursuant to) this Section 5.7 or required by
applicable law: (a) all awards are non-transferable and shall not be subject in any manner to sale, transfer, anticipation,
alienation, assignment, pledge, encumbrance or charge; (b) awards shall be exercised only by the participant; and (c) amounts
payable or shares issuable pursuant to any award shall be delivered only to (or for the account of) the participant.

 

5.7.2       Exceptions.
The Administrator may permit awards to be exercised by and paid to, or otherwise transferred to, other persons or entities pursuant
to such conditions and procedures, including limitations on subsequent transfers, as the Administrator may, in its sole discretion,
establish in writing. Any permitted transfer shall be subject to compliance with applicable federal and state securities laws and
shall not be for value (other than nominal consideration, settlement of marital property rights, or for interests in an entity
in which more than 50% of the voting interests are held by the Eligible Person or by the Eligible Person’s family members).

 

5.7.3       Further
Exceptions to Limits on Transfer. The exercise and transfer restrictions in Section 5.7.1 shall not apply to:

 

		(a)	transfers to the Corporation (for example, in connection with the expiration or termination of
the award);

 

		(b)	the designation of a beneficiary to receive benefits in the event of the participant’s death
or, if the participant has died, transfers to or exercise by the participant’s beneficiary, or, in the absence of a validly
designated beneficiary, transfers by will or the laws of descent and distribution;

 

		(c)	subject to any applicable limitations on ISOs, transfers to a family member (or former family member)
pursuant to a domestic relations order if approved or ratified by the Administrator;

 

		(d)	if the participant has suffered a disability, permitted transfers or exercises on behalf of the
participant by his or her legal representative; or

 

		(e)	the authorization by the Administrator of “cashless exercise” procedures with third
parties who provide financing for the purpose of (or who otherwise facilitate) the exercise of awards consistent with applicable
laws and the express authorization of the Administrator.

 

		5.8	International Awards. One or more awards may be granted to Eligible Persons who provide
services to the Corporation or one of its Subsidiaries outside of the United States. Any awards granted to such persons may be
granted pursuant to the terms and conditions of any applicable sub-plans, if any, appended to this Plan and approved by the Administrator.

 

		6.	EFFECT OF TERMINATION OF EMPLOYMENT OR SERVICE ON AWARDS

 

		6.1	General. The Administrator shall establish the effect of a termination of employment
or service on the rights and benefits under each award under this Plan and in so doing may make distinctions based upon, inter
alia, the cause of termination and type of award. If the participant is not an employee of the Corporation or one of its Subsidiaries
and provides other services to the Corporation or one of its Subsidiaries, the Administrator shall be the sole judge for purposes
of this Plan (unless a contract or the award otherwise provides) of whether the participant continues to render services to the
Corporation or one of its Subsidiaries and the date, if any, upon which such services shall be deemed to have terminated.

 

    	 	9	 

     

    

 

		6.2	Events Not Deemed Terminations of Service. Unless the express policy of the Corporation
or one of its Subsidiaries, or the Administrator, otherwise provides, the employment relationship shall not be considered terminated
in the case of (a) sick leave, (b) military leave, or (c) any other leave of absence authorized by the Corporation
or one of its Subsidiaries, or the Administrator; provided that, unless reemployment upon the expiration of such leave is guaranteed
by contract or law or the Administrator otherwise provides, such leave is for a period of not more than three months (or such other
period of time as required by applicable law). In the case of any employee of the Corporation or one of its Subsidiaries on an
approved leave of absence, continued vesting of the award while on leave from the employ of the Corporation or one of its Subsidiaries
may be suspended until the employee returns to service, unless the Administrator otherwise provides or applicable law (including
Section 409A of the Code) otherwise requires. In no event shall an award be exercised after the expiration of the term set forth
in the applicable award agreement.

 

		6.3	Effect of Change of Subsidiary Status. For purposes of this Plan and any award, if
an entity ceases to be a Subsidiary of the Corporation a termination of employment or service shall be deemed to have occurred
with respect to each Eligible Person in respect of such Subsidiary who does not continue as an Eligible Person in respect of the
Corporation or another Subsidiary that continues as such after giving effect to the transaction or other event giving rise to the
change in status unless the Subsidiary that is sold, spun-off or otherwise divested (or its successor or a direct or indirect parent
of such Subsidiary or successor) assumes the Eligible Person’s award(s) in connection with such transaction.

 

		7.	ADJUSTMENTS; ACCELERATION

 

		7.1	Adjustments. Subject to Section 7.2, upon (or, as may be necessary to effect
the adjustment, immediately prior to): any reclassification, recapitalization, stock split (including a stock split in the form
of a stock dividend) or reverse stock split; any merger, combination, consolidation, or other reorganization; any spin-off, split-up,
or similar extraordinary dividend distribution in respect of the Common Stock; or any exchange of Common Stock or other securities
of the Corporation, or any similar, unusual or extraordinary corporate transaction in respect of the Common Stock; then the Administrator
shall equitably and proportionately adjust (1) the number and type of shares of Common Stock (or other securities) that thereafter
may be made the subject of awards (including the specific share limits, maximums and numbers of shares set forth elsewhere in this
Plan), (2) the number, amount and type of shares of Common Stock (or other securities or property) subject to any outstanding
awards, (3) the grant, purchase, or exercise price (which term includes the base price of any SAR or similar right) of any
outstanding awards, and/or (4) the securities, cash or other property deliverable upon exercise or payment of any outstanding
awards, in each case to the extent necessary to preserve (but not increase) the level of incentives intended by this Plan and the
then-outstanding awards.

 

Unless otherwise expressly provided in the applicable
award agreement, upon (or, as may be necessary to effect the adjustment, immediately prior to) any event or transaction described
in the preceding paragraph or a sale of all or substantially all of the business or assets of the Corporation as an entirety, the
Administrator shall equitably and proportionately adjust the performance standards applicable to any then-outstanding performance-based
awards to the extent necessary to preserve (but not increase) the level of incentives intended by this Plan and the then-outstanding
performance-based awards.

 

It is intended that, if possible, any adjustments
contemplated by the preceding two paragraphs be made in a manner that satisfies applicable U.S. legal, tax (including, without
limitation and as applicable in the circumstances, Section 424 of the Code, Section 409A of the Code and Section 162(m)
of the Code) and accounting (so as to not trigger any charge to earnings with respect to such adjustment) requirements.

 

Without limiting the generality of Section 3.3,
any good faith determination by the Administrator as to whether an adjustment is required in the circumstances pursuant to this
Section 7.1, and the extent and nature of any such adjustment, shall be conclusive and binding on all persons.

 

    	 	10	 

     

    

 

		7.2	Change in Control—Assumption and Termination of Awards. Upon the occurrence
of a Change in Control, then the Administrator may make provision for a cash payment in settlement of, or for the termination,
assumption, substitution or exchange of any or all outstanding share-based awards or the cash, securities or property deliverable
to the holder of any or all outstanding share-based awards, based upon, to the extent relevant under the circumstances, the distribution
or consideration payable to holders of the Common Stock upon or in respect of such Change in Control. Upon the occurrence of a
Change in Control, then, unless the Administrator has made a provision for the substitution, assumption, exchange or other continuation
or settlement of the award or (unless the Administrator has provided for the termination of the award) the award would otherwise
continue in accordance with its terms in the circumstances: (1) unless otherwise provided in the applicable award agreement,
each then-outstanding option and SAR shall become fully vested, all shares of restricted stock then outstanding shall fully vest
free of restrictions, and each other award granted under this Plan that is then outstanding shall become payable to the holder
of such award; and (2) each award shall terminate upon the Change in Control; provided that the holder of an option or SAR
shall be given reasonable advance notice of the impending termination and a reasonable opportunity to exercise his or her outstanding
vested options and SARs (after giving effect to any accelerated vesting required in the circumstances) in accordance with their
terms before the termination of such awards (except that in no case shall more than ten days’ notice of the impending termination
be required and any acceleration of vesting and any exercise of any portion of an award that is so accelerated may be made contingent
upon the actual occurrence of the Change in Control).

 

The Administrator may adopt such valuation methodologies
for outstanding awards as it deems reasonable in the event of a cash or property settlement and, in the case of options, SARs or
similar rights, but without limitation on other methodologies, may base such settlement solely upon the excess (if any) of the
per share amount payable upon or in respect of such Change in Control over the exercise or base price of the award.

 

Subject to applicable law, in the event of a Change
in Control, the Administrator may take such action contemplated by this Section 7.2 prior to such Change in Control (as opposed
to on the occurrence of such Change in Control) to the extent that the Administrator deems the action necessary to permit the participant
to realize the benefits intended to be conveyed with respect to the underlying shares. Without limiting the generality of the foregoing,
the Administrator may deem an acceleration to occur immediately prior to the Change in Control and, in such circumstances, will
reinstate the original terms of the award if an event giving rise to an acceleration does not occur.

 

Without limiting the generality of Section 3.3,
any good faith determination by the Administrator pursuant to its authority under this Section 7.2 shall be conclusive and
binding on all persons.

 

		7.3	Other Acceleration Rules. The Administrator may override the provisions of Section 7.2
by express provision in the award agreement and may accord any Eligible Person a right, subject to Section 409A of the Code, to
refuse any acceleration, whether pursuant to the award agreement or otherwise, in such circumstances as the Administrator may approve.
The portion of any ISO accelerated in connection with an event referred to in Section 7.2 (or such other circumstances as
may trigger accelerated vesting of the award) shall remain exercisable as an ISO only to the extent the applicable $100,000 limitation
on ISOs is not exceeded. To the extent exceeded, the accelerated portion of the option shall be exercisable as a nonqualified stock
option under the Code.

 

		7.4	Definition of Change in Control. With respect to a particular award granted under
this Plan, a “Change in Control” shall be deemed to have occurred as of the first day, after the date of grant of the
particular award, that any one or more of the following conditions shall have been satisfied:

 

		(a)	The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Exchange Act (a “Person”)) of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of more than 30% of either (1) the then-outstanding shares of common stock of the Corporation (the
“Outstanding Company Common Stock”) or (2) the combined voting power of the then-outstanding voting securities
of the Corporation entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”);
provided, however, that, for purposes of this clause (a), the following acquisitions shall not constitute a Change in Control Event;
(A) any acquisition directly from the Corporation, (B) any acquisition by the Corporation, (C) any acquisition by
any employee benefit plan (or related trust) sponsored or maintained by the Corporation or any affiliate of the Corporation or
a successor, or (D) any acquisition by any entity pursuant to a transaction that complies with Sections (c)(1), (2) and
(3) below;

 

    	 	11	 

     

    

 

		(b)	Individuals who, as of the Effective Date, constitute the Board (the “Incumbent Board”)
cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director
subsequent to the Effective Date whose election, or nomination for election by the Corporation’s stockholders, was approved
by a vote of at least two-thirds of the directors then comprising the Incumbent Board (including for these purposes, the new members
whose election or nomination was so approved, without counting the member and his predecessor twice) shall be considered as though
such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption
of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or
other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board;

 

		(c)	Consummation of a reorganization, merger, statutory share exchange or consolidation or similar
corporate transaction involving the Corporation or any of its Subsidiaries, a sale or other disposition of all or substantially
all of the assets of the Corporation, or the acquisition of assets or stock of another entity by the Corporation or any of its
Subsidiaries (each, a “Business Combination”), in each case unless, following such Business Combination, (1) all
or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Company Common Stock and
the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly,
more than 50% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding voting securities
entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such Business Combination
(including, without limitation, an entity that, as a result of such transaction, owns the Corporation or all or substantially all
of the Corporation’s assets directly or through one or more subsidiaries (a “Parent”)) in substantially
the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Common Stock
and the Outstanding Company Voting Securities, as the case may be, (2) no Person (excluding any entity resulting from such
Business Combination or a Parent or any employee benefit plan (or related trust) of the Corporation or such entity resulting from
such Business Combination or Parent) beneficially owns, directly or indirectly, more than 30% of, respectively, the then-outstanding
shares of common stock of the entity resulting from such Business Combination or the combined voting power of the then-outstanding
voting securities of such entity, except to the extent that the ownership in excess of 30% existed prior to the Business Combination,
and (3) at least a majority of the members of the board of directors or trustees of the entity resulting from such Business
Combination or a Parent were members of the Incumbent Board at the time of the execution of the initial agreement or of the action
of the Board providing for such Business Combination; or

 

		(d)	Approval by the stockholders of the Corporation of a complete liquidation or dissolution of the
Corporation other than in the context of a transaction that does not constitute a Change in Control under clause (c) above.

 

		8.	OTHER PROVISIONS

 

		8.1	Compliance with Laws. This Plan, the granting and vesting of awards under this Plan,
the offer, issuance and delivery of shares of Common Stock, and/or the payment of money under this Plan or under awards are subject
to compliance with all applicable federal and state laws, rules and regulations (including but not limited to state and federal
securities law and federal margin requirements) and to such approvals by any listing, regulatory or governmental authority as may,
in the opinion of counsel for the Corporation, be necessary or advisable in connection therewith. The person acquiring any securities
under this Plan will, if requested by the Corporation or one of its Subsidiaries, provide such assurances and representations to
the Corporation or one of its Subsidiaries as the Administrator may deem necessary or desirable to assure compliance with all applicable
legal and accounting requirements.

 

    	 	12	 

     

    

 

		8.2	No Rights to Award. No person shall have any claim or rights to be granted an award
(or additional awards, as the case may be) under this Plan, subject to any express contractual rights (set forth in a document
other than this Plan) to the contrary.

 

		8.3	No Employment/Service Contract. Nothing contained in this Plan (or in any other documents
under this Plan or in any award) shall confer upon any Eligible Person or other participant any right to continue in the employ
or other service of the Corporation or one of its Subsidiaries, constitute any contract or agreement of employment or other service
or affect an employee’s status as an employee at will, nor shall interfere in any way with the right of the Corporation or
one of its Subsidiaries to change a person’s compensation or other benefits, or to terminate his or her employment or other
service, with or without cause. Nothing in this Section 8.3, however, is intended to adversely affect any express independent
right of such person under a separate employment or service contract other than an award agreement.

 

		8.4	Plan Not Funded. Awards payable under this Plan shall be payable in shares or from
the general assets of the Corporation, and no special or separate reserve, fund or deposit shall be made to assure payment of such
awards. No participant, beneficiary or other person shall have any right, title or interest in any fund or in any specific asset
(including shares of Common Stock, except as expressly otherwise provided) of the Corporation or one of its Subsidiaries by reason
of any award hereunder. Neither the provisions of this Plan (or of any related documents), nor the creation or adoption of this
Plan, nor any action taken pursuant to the provisions of this Plan shall create, or be construed to create, a trust of any kind
or a fiduciary relationship between the Corporation or one of its Subsidiaries and any participant, beneficiary or other person.
To the extent that a participant, beneficiary or other person acquires a right to receive payment pursuant to any award hereunder,
such right shall be no greater than the right of any unsecured general creditor of the Corporation.

 

		8.5	Tax Withholding. Upon any exercise, vesting, or payment of any award, or upon the
disposition of shares of Common Stock acquired pursuant to the exercise of an ISO prior to satisfaction of the holding period requirements
of Section 422 of the Code, or upon any other tax withholding event with respect to any award, the Corporation or one of its
Subsidiaries shall have the right at its option to:

 

		(a)	require the participant (or the participant’s personal representative or beneficiary, as
the case may be) to pay or provide for payment of at least the minimum amount of any taxes which the Corporation or one of its
Subsidiaries may be required to withhold with respect to such award event or payment; or

 

		(b)	deduct from any amount otherwise payable in cash (whether related to the award or otherwise) to
the participant (or the participant’s personal representative or beneficiary, as the case may be) the minimum amount of any
taxes which the Corporation or one of its Subsidiaries may be required to withhold with respect to such award event or payment.

 

In any case where a tax is required to be withheld
in connection with the delivery of shares of Common Stock under this Plan, the Administrator may in its sole discretion (subject
to Section 8.1) require or grant (either at the time of the award or thereafter) to the participant the right to elect, pursuant
to such rules and subject to such conditions as the Administrator may establish, that the Corporation reduce the number of shares
to be delivered by (or otherwise reacquire) the appropriate number of shares, valued in a consistent manner at their fair market
value or at the sales price in accordance with authorized procedures for cashless exercises, necessary to satisfy the applicable
withholding obligation on exercise, vesting or payment. Shares of Common Stock to be delivered or withheld may not have an aggregate
Fair Market Value in excess of the amount determined by applying the minimum statutory withholding rate (or, if permitted by the
Corporation, such other rate as will not cause adverse accounting consequences under generally accepted accounting principles then
in effect). Any fraction of a share of Common Stock which would be required to satisfy such an obligation shall be disregarded
and the remaining amount due shall be paid in cash by the holder.

 

    	 	13	 

     

    

 

		8.6	Effective Date, Termination and Suspension, Amendments. 

 

8.6.1       Effective
Date. This Plan is effective as of March 28, 2017, the date of its approval by the Board (the
“Effective Date”). This Plan shall be submitted for and subject to stockholder approval no later than twelve
months after the Effective Date. Upon such stockholder approval, no further awards shall be granted under any Prior Plan. Unless
earlier terminated by the Board, this Plan shall terminate at the close of business on the day before the tenth anniversary of
the Effective Date. After the termination of this Plan either upon such stated expiration date or its earlier termination by the
Board, no additional awards may be granted under this Plan, but previously granted awards (and the authority of the Administrator
with respect thereto, including the authority to amend such awards) shall remain outstanding in accordance with their applicable
terms and conditions and the terms and conditions of this Plan.

 

8.6.2       Board
Authorization. The Board may, at any time, terminate or, from time to time, amend, modify or suspend this Plan, in whole
or in part. No awards may be granted during any period that the Board suspends this Plan.

 

8.6.3       Stockholder
Approval. To the extent then required by applicable law or any applicable listing agency or required under Sections 162(m),
422 or 424 of the Code to preserve the intended tax consequences of this Plan, or deemed necessary or advisable by the Board, any
amendment to this Plan shall be subject to stockholder approval.

 

8.6.4       Amendments
to Awards. Without limiting any other express authority of the Administrator under (but subject to) the express limits
of this Plan, the Administrator by agreement or resolution may waive conditions of or limitations on awards to participants that
the Administrator in the prior exercise of its discretion has imposed, without the consent of a participant, and (subject to the
requirements of Sections 3.2 and 8.6.5) may make other changes to the terms and conditions of awards. Any amendment or other action
that would constitute a repricing of an award is subject to the limitations set forth in Section 3.2.

 

8.6.5       Limitations
on Amendments to Plan and Awards. No amendment, suspension or termination of this Plan or amendment of any outstanding
award agreement shall, without written consent of the participant, affect in any manner materially adverse to the participant any
rights or benefits of the participant or obligations of the Corporation under any award granted under this Plan prior to the effective
date of such change. Changes, settlements and other actions contemplated by Section 7 shall not be deemed to constitute changes
or amendments for purposes of this Section 8.6.

 

		8.7	Privileges of Stock Ownership. Except as otherwise expressly authorized by the Administrator,
a participant shall not be entitled to any privilege of stock ownership as to any shares of Common Stock not actually delivered
to and held of record by the participant (subject to the last sentence of Section 5.1.4). Except as expressly required by
Section 7.1 or otherwise expressly provided by the Administrator, no adjustment will be made for dividends or other rights
as a stockholder for which a record date is prior to such date of delivery.

 

		8.8	Governing Law; Construction; Severability. 

 

8.8.1       Choice
of Law. This Plan, the awards, all documents evidencing awards and all other related documents shall be governed by, and
construed in accordance with the laws of the State of Delaware.

 

8.8.2       Severability.
If a court of competent jurisdiction holds any provision invalid and unenforceable, the remaining provisions of this Plan shall
continue in effect.

 

8.8.3       Plan
Construction.

 

    	 	14	 

     

    

 

		(a)	Rule 16b-3. It is the intent of the Corporation that the awards and transactions permitted
by awards be interpreted in a manner that, in the case of participants who are or may be subject to Section 16 of the Exchange
Act, qualify, to the maximum extent compatible with the express terms of the award, for exemption from matching liability under
Rule 16b-3 promulgated under the Exchange Act. Notwithstanding the foregoing, the Corporation shall have no liability to any participant
for Section 16 consequences of awards or events under awards if an award or event does not so qualify.

 

		(b)	Section 162(m). Awards under Section 5.1.4 to persons described in Section 5.2
that are either granted or become vested, exercisable or payable based on attainment of one or more performance goals related to
the Business Criteria, as well as Qualifying Options and Qualifying SARs granted to persons described in Section 5.2, that
are approved by a committee composed solely of two or more outside directors (as this requirement is applied under Section 162(m)
of the Code) shall be deemed to be intended as performance-based compensation within the meaning of Section 162(m) of the
Code unless such committee provides otherwise at the time of grant of the award. It is the further intent of the Corporation that
(to the extent the Corporation or one of its Subsidiaries or awards under this Plan may be or become subject to limitations on
deductibility under Section 162(m) of the Code) any such awards and any other Performance-Based Awards under Section 5.2
that are granted to or held by a person subject to Section 162(m) will qualify as performance-based compensation or otherwise
be exempt from deductibility limitations under Section 162(m).

 

		(c)	Section 409A. It is intended that the provisions of the Plan comply with, or be exempt from,
Section 409A of the Code, and all provisions of the Plan shall be construed and interpreted in a manner consistent with the requirements
for avoiding taxes or penalties under Section 409A of the Code. If, at the time of a participant’s “separation from
service” (within the meaning of Section 409A of the Code), (i) such participant shall be a specified employee (within the
meaning of Section 409A of the Code and using the identification methodology selected by the Corporation from time to time) and
(ii) the Corporation shall make a good faith determination that an amount payable pursuant to an award constitutes deferred compensation
(within the meaning of Section 409A of the Code) the payment of which is required to be delayed pursuant to the six-month delay
rule set forth in Section 409A of the Code in order to avoid taxes or penalties under Section 409A of the Code, then the Corporation
shall not pay such amount on the otherwise scheduled payment date but shall instead pay it on the first business day after such
six-month period. Such amount shall be paid without interest, unless otherwise determined by the Administrator, in its sole discretion,
or as otherwise provided in any applicable award agreement between the Corporation and the relevant participant. Notwithstanding
any provision of the Plan to the contrary, in light of the uncertainty with respect to the proper application of Section 409A of
the Code, the Corporation reserves the right to make amendments to any award as the Corporation deems necessary or desirable to
avoid the imposition of taxes or penalties under Section 409A of the Code. In any case, a participant shall be solely responsible
and liable for the satisfaction of all taxes and penalties that may be imposed on such participant or for such participant’s
account in connection with an award (including any taxes and penalties under Section 409A of the Code), and neither the Corporation
nor any of its affiliates shall have any obligation to indemnify or otherwise hold such participant harmless from any or all of
such taxes or penalties.

 

		8.9	Captions. Captions and headings are given to the sections and subsections of this
Plan solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the
construction or interpretation of this Plan or any provision thereof.

 

    	 	15	 

     

    

 

		8.10	Stock-Based Awards in Substitution for Stock Options or Awards Granted by Other Corporation.
Awards may be granted to Eligible Persons in substitution for or in connection with an assumption of employee stock options, SARs,
restricted stock or other stock-based awards granted by other entities to persons who are or who will become Eligible Persons in
respect of the Corporation or one of its Subsidiaries, in connection with a distribution, merger or other reorganization by or
with the granting entity or an affiliated entity, or the acquisition by the Corporation or one of its Subsidiaries, directly or
indirectly, of all or a substantial part of the stock or assets of the employing entity. The awards so granted need not comply
with other specific terms of this Plan, provided the awards reflect only adjustments giving effect to the assumption or substitution
consistent with the conversion applicable to the Common Stock in the transaction and any change in the issuer of the security.
Any shares that are delivered and any awards that are granted by, or become obligations of, the Corporation, as a result of the
assumption by the Corporation of, or in substitution for, outstanding awards previously granted by an acquired company (or previously
granted by a predecessor employer (or direct or indirect parent thereof) in the case of persons that become employed by the Corporation
or one of its Subsidiaries in connection with a business or asset acquisition or similar transaction) shall not be counted against
the Share Limit or other limits on the number of shares available for issuance under this Plan.

 

		8.11	Non-Exclusivity of Plan. Nothing in this Plan shall limit or be deemed to limit the
authority of the Board or the Administrator to grant awards or authorize any other compensation, with or without reference to the
Common Stock, under any other plan or authority.

 

		8.12	No Corporate Action Restriction. The existence of this Plan, the award agreements
and the awards granted hereunder shall not limit, affect or restrict in any way the right or power of the Board or the stockholders
of the Corporation to make or authorize: (a) any adjustment, recapitalization, reorganization or other change in the capital
structure or business of the Corporation or any Subsidiary, (b) any merger, amalgamation, consolidation or change in the ownership
of the Corporation or any Subsidiary, (c) any issue of bonds, debentures, capital, preferred or prior preference stock ahead
of or affecting the capital stock (or the rights thereof) of the Corporation or any Subsidiary, (d) any dissolution or liquidation
of the Corporation or any Subsidiary, (e) any sale or transfer of all or any part of the assets or business of the Corporation
or any Subsidiary, or (f) any other corporate act or proceeding by the Corporation or any Subsidiary. No participant, beneficiary
or any other person shall have any claim under any award or award agreement against any member of the Board or the Administrator,
or the Corporation or any employees, officers or agents of the Corporation or any Subsidiary, as a result of any such action.

 

		8.13	Other Company Benefit and Compensation Programs. Payments and other benefits received
by a participant under an award made pursuant to this Plan shall not be deemed a part of a participant’s compensation for
purposes of the determination of benefits under any other employee welfare or benefit plans or arrangements, if any, provided by
the Corporation or any Subsidiary, except where the Administrator expressly otherwise provides or authorizes in writing. Awards
under this Plan may be made in addition to, in combination with, as alternatives to or in payment of grants, awards or commitments
under any other plans or arrangements of the Corporation or its Subsidiaries.

 

		8.14	Clawback Policy. The awards granted under this Plan are subject to the terms of the
Corporation’s recoupment, clawback or similar policy as it may be in effect from time to time, as well as any similar provisions
of applicable law, any of which could in certain circumstances require repayment or forfeiture of awards or any shares of Common
Stock or other cash or property received with respect to the awards (including any value received from a disposition of the shares
acquired upon payment of the awards).

 

    	 	16EMPLOYMENT AGREEMENT

 

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (the “Agreement”) entered into as of June 11, 2017 (the “Effective Date”), between Aspen Group, Inc., a Delaware corporation (the “Company”), and Cheri St. Arnauld, Ed. D (the “Executive”).

WHEREAS, in its business, the Company has acquired and developed certain trade secrets, including, but not limited to, academic curriculum processes and proceedings proprietary processes, sales methods and techniques, and other like confidential business and technical information, including but not limited to, technical information, design systems, pricing methods, pricing rates or discounts, processes, procedures, formulas, designs of computer software, or improvements, or any portion or phase thereof, whether patented, or not, or unpatentable, that is of any value whatsoever to the Company, as well as information relating to the Company’s Services (as defined), information concerning proposed new Services, market feasibility studies, proposed or existing marketing techniques or plans (whether developed or produced by the Company or by any other person or entity for the Company), other Confidential Information, as defined in Section 9(a), and information about the Company’s executives, officers, and directors, which necessarily will be communicated to the Executive by reason of her employment by the Company; and

 

WHEREAS, the Company has strong and legitimate business interests in preserving and protecting its investment in the Executive, its trade secrets and Confidential Information, and its substantial, significant, or key relationships with vendors and Students, as defined below, whether actual or prospective; and

 

WHEREAS, the Company desires to preserve and protect its legitimate business interests further by restricting competitive activities of the Executive during the term of this Agreement and for a reasonable time following the termination of this Agreement; and

WHEREAS, the Executive has a substantial employment, educational and experience background in the areas of expertise desired by the Company and will retain ownership and the right to use all prior-gained skills, insights, techniques and abilities which the Executive brings to this employment and nothing in this agreement will obligate the Executive to forfeit that or the right to make a living by use of these pre-developed abilities; and

WHEREAS, the Company desires to employ the Executive and to ensure the continued availability to the Company of the Executive’s services, and the Executive is willing to accept such employment and render such services, all upon and subject to the terms and conditions contained in this Agreement; and

WHEREAS, the Company represents to the Executive that it is and expects to be sufficiently financially solvent to meet the payment promises and obligations made to the Executive as set forth in this Agreement and understands that the Executive is relying on this representation in entering into this Agreement and her promises to the Company:

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants set forth in this Agreement, and intending to be legally bound, the Company and the Executive agree as follows:

1.

Representations and Warranties. The Executive hereby represents and warrants to the Company that she (i) is not subject to any non-solicitation or non-competition agreement affecting her employment with the Company (other than any prior agreement with the Company or an affiliate of the Company), (ii) is not subject to any confidentiality or nonuse/nondisclosure agreement affecting her employment with the Company (other than any prior agreement with the Company or an affiliate of the Company), and (iii) has brought to the Company no trade secrets, confidential business information, documents, or other personal property of a prior employer. The recitals above are incorporated in this Agreement as representations and covenants. Each party covenants to act in good faith in the discharge of this Agreement. This Agreement replaces the Employment Agreement, as amended, between Aspen University Inc. and the Executive.

2.

Term of Employment.

(a) 

Term. The Company hereby employs the Executive, and the Executive hereby accepts employment with the Company for a period of three years commencing as of the Effective Date (such period, as it may be extended or renewed, the “Term”), unless sooner terminated in accordance with the provisions of Section 6. The Term shall be automatically renewed for successive one-year terms unless notice of non-renewal is given by either party at least 30 days before the end of the Term.

(b)

Continuing Effect. Notwithstanding any termination of this Agreement, at the end of the Term or otherwise, the provisions of Sections 6(e), 7, 8, 9, 10, 12, 15, 18, 19, and 22 shall remain in full force and effect and the provisions of Section 9 shall be binding upon the legal representatives, successors and assigns of the Executive.

3.

Duties.

(a)

General Duties. The Executive shall serve as the Chief Academic Officer of the Company, with duties and responsibilities that are customary for such an executive. The Executive shall report to the Company’s Chief Executive Officer. The Executive shall also perform services for subsidiaries and affiliates of the Company as may be necessary. The Executive shall use her best efforts to perform her duties and discharge her responsibilities pursuant to this Agreement competently, carefully and faithfully. In determining whether or not the Executive has used her best efforts hereunder, the Executive’s and the Company’s delegation of authority and all surrounding circumstances shall be taken into account and the best efforts of the Executive shall not be judged solely on the Company’s earnings or other results of the Executive’s performance, except as specifically provided to the contrary by this Agreement, and the determination shall in any event be reasonable and shall not be made arbitrarily or capriciously by Company. The Executive shall, if requested, serve as an officer of any subsidiaries of the Company.

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(b)

Devotion of Time. Subject to the last sentence of this Section 3(b), the Executive shall devote her full time, attention and energies to the affairs of the Company and its subsidiaries and affiliates as are necessary to perform her duties and responsibilities pursuant to this Agreement. The Executive shall have reasonable off-hours and off-duty times for personal use. The Executive shall not enter the employ of or serve as a consultant to, or in any way perform any services with or without compensation to, any other persons, business, or organization, without the prior consent of the Board of Directors of the Company (the “Board”). Notwithstanding the above, the Executive shall be permitted to devote a limited amount of her time, to rest and to Executive’s personal, professional, charitable or similar pursuits and interests and to organizations, including serving as a non-executive director or an advisor to a board of directors, committee of any company or organization and the Executive shall have the right to continue the following personal pursuits to complete currently contracted work with students as well as agreements around her newly published book.

(c)

Location of Office. The Executive’s principal business office shall be in Scottsdale, Arizona; provided, however, that for an initial term in the discretion of the Board and estimated to be three months from the date hereof, the Executive shall work remotely from San Diego, California for purposes of supporting the Company’s acquisition of United States University. The Executive’s job responsibilities shall include all business travel necessary for the performance of her job, including Company-paid travel to and lodging to the Company’s other office locations. 

(d)

Adherence to Inside Information Policies. The Executive acknowledges that the Company is publicly-held and, as a result, has implemented inside information policies designed to preclude its executives and those of its subsidiaries and affiliates from violating the federal securities laws by trading on material, non-public information or passing such information on to others in breach of any duty owed to the Company, or any third party. The Executive shall promptly execute any agreements generally distributed by the Company to its employees requiring such employees to abide by its inside information policies.

4.

Compensation and Expenses.

(a)

Salary. For the services of the Executive to be rendered under this Agreement, the Company shall pay the Executive an annual salary of $300,000 (the “Base Salary”), less such deductions as shall be required to be withheld by applicable law and regulations payable in accordance with the Company’s customary payroll practices.

(b)

Target Bonus. For each fiscal year during the Term beginning May 1st and ending April 30th of the applicable fiscal year, the Executive shall have the opportunity to earn a bonus up to 30%, 66% or 100% of her then Base Salary (the “Target Bonus”) as follows:

When the Company achieves annual Adjusted EBITDA (as defined below) at certain threshold levels (each, an “EBITDA Threshold”), the Executive shall receive an automatic cash bonus (the “Automatic Cash Bonus”) equal to a percentage of her then Base Salary, and shall receive a grant of fully vested shares of the Company’s common stock having an aggregate Fair Market Value (as such term is defined in the Company’s 2012 Equity Incentive Plan, as amended) equal to a percentage of the Executive’s then Base Salary (the “Automatic Equity Bonus”). In addition, the Executive shall be eligible to receive an additional percentage of her then Base Salary as a cash bonus (the “Discretionary Cash Bonus”) and an additional grant of fully vested shares of the Company’s common stock having an aggregate Fair Market Value equal to a percentage of the Executive’s then Base Salary (the “Discretionary Equity Bonus”) based on the Board’s determination that the Executive has achieved certain annual performance objectives established by the Board, based on the mutual agreement of the Chief Executive Officer and the Executive, at the beginning of each fiscal year.

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The EBITDA Thresholds and corresponding bonus levels are set forth in the table below. For the avoidance of doubt, the Executive shall only be eligible to receive the bonuses associated with a single EBITDA Threshold; i.e., in the event the Company attains EBITDA Threshold (2), only the bonuses associated with EBITDA Threshold (2) below (and not the bonuses associated with EBITDA Threshold (1)) shall be applicable.

					
	EBITDA 

Threshold

	Automatic 

Cash Bonus

	Automatic 

Equity Bonus

	Discretionary 

Cash Bonus

	Discretionary 

Equity Bonus

	(1)

$1,000,000 -$1,999,999

	7.5%

	7.5%

	Up to 7.5%

	Up to 7.5%

	(2)

$2,000,000 -$3,999,999

	16.5%

	16.5%

	Up to 16.5%

	Up to 16.5%

	(3)

$4,000,000 and over

	25%

	25%

	Up to 25%

	Up to 25%

 

Provided, however, that the earning of the Automatic Cash Bonus is subject to the Company having at least $2,000,000 in available cash after deducting the Target Bonus paid to all executive officers of the Company or its subsidiaries under the same Target Bonus formula pursuant to such executives’ employment agreements (the “Cash Threshold”) and the Executive continuing to provide services under this Agreement on the applicable Target Bonus determination date. If the Company is unable to pay the Automatic Cash Bonus as a result of not meeting the Cash Threshold, no Automatic Cash Bonus will be earned for that fiscal year. As used in this Agreement, Adjusted EBITDA is calculated as earnings (or loss) from continuing operations before preferred dividends, interest expense, income taxes, collateral valuation adjustment, bad debt expense, depreciation and amortization, and amortization of stock-based compensation; however, if Adjusted EBITDA shall be defined differently in any filing of the Company with the Securities and Exchange Commission subsequent to the date of this Agreement, then Adjusted EBITDA shall thereafter be defined in accordance with the definition most recently set forth in any such filing at each Target Bonus determination date.

 

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(c)

Equity Incentive Compensation. The Company has granted the Executive the following, subject to commencing employment: 70,000 stock options (exercisable at $4.90 per share) which shall vest in three approximately equal increments (with fractional shares rounded up for the first period and rounded down for the remaining periods) on May 13, 2018, 2019 and 2020; and 30,000 options (exercisable at $6.28 per share) which shall vest quarterly over a three-year period in twelve equal quarterly increments with the first vesting date being on September 11, 2017, subject to continued service as an employee of the Company on each applicable vesting date.

All of the options shall be subject to the terms of the Company’s 2012 Equity Incentive Plan (the “Incentive Plan”) and will be exercisable for a period of five years from the date of this Agreement provided that they are vested at time of exercise. The exercisability of the options shall be subject to the execution of the Company’s standard option agreement which is attached as Exhibit A.

(d)

Expenses. The Company will pay expenses related to a house or apartment in the San Diego, California area not to exceed $8,000 per month without the consent of the Company Chief Executive Officer and reimburse her for her additional automobile expenses during the course of her temporary assignment during the months of July – September, 2017. In addition to any compensation received pursuant to this Section 4, the Company will reimburse or advance funds to the Executive for all reasonable documented travel, meals and lodging (including travel expenses incurred by the Executive related to her travel between Arizona and California, to the Company’s other offices and on business missions for the Company), entertainment and miscellaneous expenses incurred in connection with the performance of her duties under this Agreement, provided that the Executive properly provides a written accounting of such expenses to the Company in accordance with the Company’s practices. Such reimbursement or advances will be made in accordance with policies and procedures of the Company in effect from time to time relating to reimbursement of, or advances to, its executive officers, except that no policy shall change the terms of this Agreement.

(e)

Discretionary Bonus. During the term of the Agreement, the Compensation Committee shall have the discretion to award the Executive a bonus, in cash or the Company’s common stock, based upon the Executive’s job performance, the Company’s revenue growth or any other factors as determined by the Compensation Committee.

5.

Benefits.

(a)

Paid Time Off. For each 12-month period during the Term, the Executive shall be entitled to three weeks of Paid Time Off without loss of compensation or other benefits to which she is entitled under this Agreement, to be taken at such times as the Executive may select and the affairs of the Company may permit. Any unused days will be carried over to the next 12-month period.

 

(b)

Employee Benefit Programs. The Executive is entitled to participate in any pension, 401(k), insurance or other employee benefit plan that is maintained by the Company for its executives, including programs of life insurance and reimbursement of membership fees in professional organizations. The Company will also provide health insurance covering the Executive and family dependents. The benefits provided to the Executive may not be less than the Company provides to any of its executive employees.

 

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6.

Termination.

(a)

Death or Disability. Except as otherwise provided in this Agreement, this Agreement shall automatically terminate upon the death or disability of the Executive. For purposes of this Section 6(a), “disability” shall mean (i) the Executive is unable to engage in her customary duties by reason of any medically determinable physical or mental impairment that can be expected to result in death, or last for a continuous period of not less than 12 months; (ii) the Executive is, by reason of any medically determinable physical or mental impairment that can be expected to result in death, or last for continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Company; or (iii) the Executive is determined to be totally disabled by the Social Security Administration. Any question as to the existence of a disability shall be determined by the written opinion of the Executive’s regularly attending physician (or her guardian) (or the Social Security Administration, where applicable). In the event that the Executive’s employment is terminated by reason of Executive’s death or disability, the Company shall pay the following to the Executive or her personal representative: (i) any accrued but unpaid Base Salary for services rendered to the date of termination, (ii) any accrued but unpaid expenses required to be reimbursed under this Agreement, (iii) any earned but unpaid bonuses, and (iv) all equity awards previously granted to the Executive under the Incentive Plan or similar plan shall thereupon become fully vested, and the Executive or her legally appointed guardian, as the case may be, shall have up to three months from the date of termination (or one year from the date of death) to exercise all such previously granted options, provided that in no event shall any option be exercisable beyond its term.

(b)

Termination by the Company for Cause or by the Executive Without Good Reason. The Company may terminate the Executive’s employment pursuant to the terms of this Agreement at any time for Cause (as defined below) by giving the Executive written notice of termination. Such termination shall become effective upon the giving of such notice. Upon any such termination for Cause, or in the event the Executive terminates her employment with the Company without Good Reason (as defined in Section 6(c)), then the Executive shall have no right to compensation, or reimbursement under Section 4, or to participate in any Executive benefit programs under Section 5, except for payments and benefits accrued up to the time of the termination and except as may otherwise be provided for by law, for any period subsequent to the effective date of termination. For purposes of this Agreement, “Cause” shall mean: (i) the Executive is convicted of, or pleads guilty or nolo contendere to, a felony related to the business of the Company; (ii) the Executive, in carrying out her duties hereunder, has acted with gross negligence or intentional misconduct resulting, in any case, in harm to the Company; (iii) the Executive misappropriates Company funds or otherwise defrauds the Company; (iv) the Executive breaches her fiduciary duty to the Company resulting in profit to her, directly or indirectly; (v) the Executive materially breaches any written agreement with the Company and fails to cure such breach within 10 days of receipt of notice, unless the act is incapable of being cured; (vi) the Executive breaches any provision of Section 8 or Section 9; (vii) the Executive becomes subject to a preliminary or permanent injunction issued by a United States District Court enjoining the Executive from violating any securities law administered or regulated by the Securities and Exchange Commission; (viii) the Executive becomes subject to a cease and desist order or other order issued by the Securities and Exchange Commission after an opportunity for a hearing; (ix) the Executive refuses to carry out a resolution adopted by the Company’s Board at a meeting in which the Executive was offered a reasonable opportunity to argue that the resolution should not be adopted, provided that the resolution did not direct the Executive to act or refrain from acting in a manner which is contrary to this Agreement, is unlawful or would expose the Executive to regulatory, civil or criminal liability; or (x) the Executive abuses alcohol or drugs in a manner that interferes with the successful performance of her duties. Any termination made by the Company under this Agreement shall be approved by the Board.

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(c)

Other Termination. 

(1) 

This Agreement may be terminated: (i) by the Executive for Good Reason (as defined below), (ii) by the Company without Cause, (iii) upon any Change of Control event as defined in Treasury Regulation Section 1.409A-3(i)(5) provided, that, within 12 months of the Change of Control event (A) the Company terminates the Executives employment or changes her title as Chief Academic Officer, or (B) the Executive terminate her employment or (iv) at the end of a Term after the Company provides the Executive with notice of non-renewal.

(2) 

In the event this Agreement is terminated by the Executive for Good Reason or by the Company “without Cause”, the Executive shall be entitled to the following:

(A)

any accrued but unpaid Base Salary for services rendered to the date of termination;

(B)

any accrued but unpaid expenses required to be reimbursed under this Agreement;

(C)

a payment equal to six months of the then Base Salary (“Severance Amount”);

(D)

the Executive or her legally appointed guardian, as the case may be, shall have up to three months from the date of termination to exercise all such previously granted options, provided that in no event shall any option be exercisable beyond its Term;

(E)

any benefits (except perquisites) to which the Executive was entitled pursuant to Section 5(b) hereof shall continue to be paid or provided by the Company, as the case may be, for three months, subject to the terms of any applicable plan or insurance contract and applicable law provided that such benefits are exempt from Section 409A of the Code by reason of Treasury Regulation 1.409A-1(a)(5) or otherwise. In the event all or a portion of the benefits to which the Executive was entitled pursuant to Section 5(b) hereof are subject to 409A of the Code, the Executive shall not be entitled to the benefits that are subject to Section 409A of the Code subsequent to the “applicable 2 1⁄2 month period” (as such term is defined under Treasury Regulation Section 1.409A-1(b)(4)(i)(A)).

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(3) 

In the event of a Change of Control during the Term subject to the termination of employment as outlined in section 6(c)91), the Executive shall be entitled to receive each of the provisions of Section 6(c)(2)(A) – (E) above except the Severance Amount shall be equal to three months of the then Base Salary and the benefits under Section 6(c)(2)(E) shall continue for a three month period provided that such benefits are exempt from Section 409A of the Code by reason of Treasury Regulation 1.409A-1(a)(5) or otherwise. In the event all or a portion of the benefits under Section 6(c)(2)(E) are subject to 409A of the Code, the Executive shall not be entitled to the benefits that are subject to Section 409A of the Code subsequent to the “applicable 2 1⁄2 month period” (as such term is defined under Treasury Regulation Section 1.409A-1(b)(4)(i)(A)). 

(4) 

In the event this Agreement is terminated at the end of a Term after the Company provides the Executive with notice of non-renewal and the Executive remains employed until the end of the Term, the Executive shall be entitled to the following:

(A) 

any accrued but unpaid Base Salary for services rendered to the date of termination;

(B) 

any accrued but unpaid expenses required to be reimbursed under this Agreement;

(C) 

the Executive or her legally appointed guardian, as the case may be, shall have up to three months from the date of termination to exercise all such previously granted options, provided that in no event shall any option be exercisable beyond its Term; and

(5)

In the event of a termination for Good Reason or without Cause, the payment of the Severance Amount shall be made at the same times as the Company pays compensation to its employees over the applicable monthly period and any other payments owed under Section 6(c) shall be promptly paid. Provided, however, that any balance of the Severance Amount remaining due on the “applicable 2 1⁄2 month period” (as such term is defined under Treasury Regulation Section 1.409A-1(b)(4)(i)(A)) after the end of the tax year in which the Executive’s employment is terminated or the Term ends shall be paid on the last day of the applicable 2 1⁄2 month period. The payment of the Severance Amount shall be conditioned on the Executive signing an Agreement and General Release (in the form which is attached as Exhibit B) which releases the Company or any of its affiliates (including its officers, directors and their affiliates) from any liability under this Agreement or related to the Executive’s employment with the Company provided that (x) the payment of the Severance Amount is made on or before the 90th day following the Executive’s termination of employment; (y) such Agreement and General Release is executed by the Executive, submitted to the Company, and the statutory period during which the Executive is entitled to revoke the Agreement and General Release under applicable law has expired on or before that 90th day; and (z) in the event that the 90 day period begins in one taxable year and ends in a second taxable year, then the payment of the Severance Amount shall be made in the second taxable year. Upon any Change of Control event, all payments owed under Section 6(c)(3) shall be paid immediately.

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The term “Good Reason” shall mean: (i) a material diminution in the Executive’s authority, duties or responsibilities due to no fault of the Executive other than temporarily while the Executive is physically or mentally incapacitated or as required by applicable law (unless the Executive has agreed to such diminution); (ii) the Company no longer maintains an office in the metropolitan Phoenix, Arizona area or (iii) any other action or inaction that constitutes a material breach by the Company under this Agreement. Prior to the Executive terminating her employment with the Company for Good Reason, the Executive must provide written notice to the Company, within 30 days following the Executive’s initial awareness of the existence of such condition, that such Good Reason exists and setting forth in detail the grounds the Executive believes constitutes Good Reason. If the Company does not cure the condition(s) constituting Good Reason within 30 days following receipt of such notice, then the Executive’s employment shall be deemed terminated for Good Reason.

(d)

Upon (1) voluntary or involuntary termination of the Executive’s employment or (2) at the Company’s request at any time during the Executive’s employment, the Executive shall (i) provide or return to the Company any and all Company property, including keys, key cards, access cards, security devices, employer credit cards, network access devices, computers, cell phones, smartphones, manuals, work product, thumb drives or other removable information storage devices, and hard drives, and all Company documents and materials belonging to the Company and stored in any fashion, including but not limited to those that constitute or contain any Confidential Information or work product, that are in the possession or control of the Executive, whether they were provided to the Executive by the Company or any of its business associates or created by the Executive in connection with her employment by the Company; and (ii) delete or destroy all copies of any such documents and materials not returned to the Company that remain in the Executive’s possession or control, including those stored on any non-Company devices, networks, storage locations and media in the Executive’s possession or control.

7.

Indemnification. The Company shall indemnify the Executive, to the maximum extent permitted by applicable law against all costs, charges and expenses incurred or sustained by her in connection with any action, suit or proceeding to which he may be made a party by reason of her being an officer, director or employee of the Company or of any subsidiary or affiliate of the Company. This indemnification shall be pursuant to an Indemnification Agreement, a copy of which is annexed as Exhibit C.

8.

Non-Competition Agreement.

(a)

Competition with the Company. Until termination of her employment, unless she is terminated by the Company without Cause or if the Company breaches this Agreement and the Company fails to cure the breach within 10 days after receipt of notice, and for a period of one year commencing on the date of any other termination, the Executive (individually or in association with, or as a shareholder, director, officer, consultant, employee, partner, joint venturer, member, or otherwise, of or through any person, firm, corporation, partnership, association or other entity) shall not, directly or indirectly, compete with the Company (which for the purpose of this Agreement also includes any of its subsidiaries or affiliates) by acting as an employee or officer (or comparable position) of, owning an interest in, or providing services substantially similar to those services the Executive provided to the Company to any entity within any metropolitan area in the United States or other country in which the Company was actually engaged in business as of the time of termination of employment or where the Company reasonably expected to engage in business within three months of the date of termination of employment. For purposes of this Agreement, the term “compete with the Company” shall refer to any business activity in which the Company was engaged as of the termination of the Executive’s employment or reasonably expected to engage in within three months of termination of employment; provided, however, the foregoing shall not prevent the Executive from (i) accepting employment with an enterprise engaged in two or more lines of business, one of which is the same or similar to the Company’s business (the “Prohibited Business”) if the Executive’s employment is totally unrelated to the Prohibited Business, (ii) competing in a country where as of the time of the alleged violation the Company has ceased engaging in business, or (iii) competing in a line of business which as of the time of the alleged violation the Company has either ceased engaging in or publicly announced or disclosed that it intends to cease engaging in; provided, further, the foregoing shall not prohibit the Executive from owning up to 5% of the securities of any publicly-traded enterprise provided that the Executive is not a director, officer, consultant, employee, partner, joint venturer, manager, or member of, or to such enterprise, or otherwise compensated for services rendered thereby.

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(b)

Solicitation of Students. During the periods in which the provisions of Section 8(a) shall be in effect, the Executive, directly or indirectly, will not seek nor accept Prohibited Business from any Students (as defined below) on behalf of herself or any enterprise or business other than the Company, refer Prohibited Business from any Student to any enterprise or business other than the Company or receive commissions based on sales or otherwise relating to the Prohibited Business from any Student, or any enterprise or business other than the Company. For purposes of this Agreement, the term “Student” means any person who enrolled in an online university or school which is a subsidiary of the Company as a student during the 24-month period prior to the time at which any determination is required to be made as to whether any such person is a Student.

(c)

Solicitation of Employees. During the period in which the provisions of Section 8(a) and (b) shall be in effect, the Executive agrees that she shall not, directly or indirectly, request, recommend or advise any employee of the Company to terminate his or her employment with the Company, for the purposes of providing services for a Prohibited Business, or solicit for employment or recommend to any third party the solicitation for employment of any individual who was employed by the Company or any of its subsidiaries and affiliates at any time during the one year period preceding the Executive’s termination of employment.

(d) 

Non-disparagement. The Executive agrees that, after the end of her employment, she will refrain from making, directly or indirectly, in writing or orally, any unfavorable comments about the Company, its operations, policies, or procedures that would be likely to injure the Company’s reputation or business prospects; provided, however, that nothing herein shall preclude the Executive from responding truthfully to a lawful subpoena or other compulsory legal process or from providing truthful information otherwise required by law.

(e)

No Payment. The Executive acknowledges and agrees that no separate or additional payment will be required to be made to her in consideration of her undertakings in this Section 8, and confirms she has received adequate consideration for such undertakings, provided the Company has not breached this Agreement.

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(f)

References. References to the Company in this Section 8 shall include the Company’s subsidiaries and affiliates.

9.

Non-Disclosure of Confidential Information.

(a)

For purposes of this Agreement, “Confidential Information” excludes the skills, experience, education and abilities the Executive brings to this employment with her, but includes, but is not limited to, trade secrets, processes, policies, procedures, techniques, designs, drawings, show-how, technical information, specifications, computer software and source code, information and data relating to the development, research, testing, costs, marketing, and uses of the Services (as defined herein), the Company’s budgets and strategic plans, and the identity and special needs of Students, vendors, and suppliers, subjects and databases, data, and all technology relating to the Company’s businesses, systems, methods of operation, and Student lists, Student information, solicitation leads, marketing and advertising materials, methods and manuals and forms, all of which pertain to the activities or operations of the Company, the names, home addresses and all telephone numbers and e-mail addresses of the Company’s directors, employees, officers, executives, former executives, Students and former Students. Confidential Information also includes, without limitation, Confidential Information received from the Company’s subsidiaries and affiliates. For purposes of this Agreement, the following will not constitute Confidential Information (i) information which is or subsequently becomes generally available to the public through no act or fault of the Executive, (ii) information set forth in the written records of the Executive prior to disclosure to the Executive by or on behalf of the Company which information is given to the Company in writing as of or prior to the date of this Agreement, and (iii) information which is lawfully obtained by the Executive in writing from a third party (excluding any affiliates of the Executive) who lawfully acquired the confidential information and who did not acquire such confidential information or trade secret, directly or indirectly, from the Executive or the Company or its subsidiaries or affiliates and who has not breached any duty of confidentiality. As used herein, the term “Services” shall include all services offered for sale and marketed by the Company during the Term, which as of the Effective Date consist of operating an online university in compliance with all applicable regulatory requirements.

(b)

Legitimate Business Interests. The Executive recognizes that the Company has legitimate business interests to protect and as a consequence, the Executive agrees to the restrictions contained in this Agreement because they further the Company’s legitimate business interests. These legitimate business interests include, but are not limited to (i) trade secrets; (ii) valuable confidential business, technical, and/or professional information that otherwise may not qualify as trade secrets, including, but not limited to, all Confidential Information; (iii) substantial, significant, or key relationships with specific prospective or existing Students, vendors or suppliers; (iv) Student goodwill associated with the Company’s business; and (v) specialized training relating to the Company’s technology, Services, methods, operations and procedures. Notwithstanding the foregoing, nothing in this Section 9(b) shall be construed to impose restrictions greater than those imposed by other provisions of this Agreement.

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(c) 

Confidentiality. During the Term of this Agreement and following termination of employment, for any reason, the Confidential Information shall be held by the Executive in the strictest confidence and shall not, without the prior express written consent of the Company, be disclosed to any person other than in connection with the Executive’s employment by the Company. The Executive further acknowledges that such Confidential Information as is acquired and used by the Company or its subsidiaries or affiliates is a special, valuable and unique asset. The Executive shall exercise all due and diligent precautions to protect the integrity of the Company’s Confidential Information and to keep it confidential whether it is in written form, on electronic media, oral, or otherwise. The Executive shall not copy any Confidential Information except to the extent necessary to her employment nor remove any Confidential Information or copies thereof from the Company’s premises except to the extent necessary to her employment. All records, files, materials and other Confidential Information obtained by the Executive in the course of her employment with the Company are confidential and proprietary and shall remain the exclusive property of the Company, its Students. The Executive shall not, except in connection with and as required by her performance of her duties under this Agreement, for any reason use for her own benefit or the benefit of any person or entity other than the Company or disclose any such Confidential Information to any person, firm, corporation, association or other entity for any reason or purpose whatsoever without the prior express written consent of an executive officer of the Company (excluding the Executive).

(d)

References. References to the Company in this Section 9 shall include the Company’s subsidiaries and affiliates.

(e)

Whistleblowing. Nothing contained in this Agreement shall be construed to prevent the Executive from reporting any act or failure to act to the SEC or other governmental body or prevent the Executive from obtaining a fee as a “whistleblower” under Rule 21F-17(a) under the Securities and Exchange Act of 1934 or other rules or regulations implemented under the Dodd-Frank Wall Street Reform Act and Consumer Protection Act.

10.

Equitable Relief.

(a)

The Company and the Executive recognize that the services to be rendered under this Agreement by the Executive are special, unique and of extraordinary character, and that in the event of the breach by the Executive of the terms and conditions of this Agreement or if the Executive, without the prior express consent of the Board, shall leave her employment for any reason and/or take any action in violation of Section 8 and/or Section 9, the Company shall be entitled to institute and prosecute proceedings in any court of competent jurisdiction referred to in Section 10(b) below, to enjoin the Executive from breaching the provisions of Section 8 and/or Section 9.

(b)

Any action must be commenced only in the appropriate state or federal court located in Phoenix, Arizona. The Executive and the Company irrevocably and unconditionally submit to the exclusive jurisdiction of such courts and agree to take any and all future action necessary to submit to the jurisdiction of such courts. The Executive and the Company irrevocably waive any objection that they now have or hereafter may have to the laying of venue of any suit, action or proceeding brought in any such court and further irrevocably waive any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. Final judgment against the Executive or the Company in any such suit shall be conclusive and may be enforced in other jurisdictions by suit on the judgment, a certified or true copy of which shall be conclusive evidence of the fact and the amount of any liability of the Executive or the Company therein described, or by appropriate proceedings under any applicable treaty or otherwise.

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11.

Conflicts of Interest. While employed by the Company, the Executive shall not, unless approved by the Compensation Committee, directly or indirectly:(a)  participate as an individual in any way in the benefits of transactions with any of the Company’s vendors or Students, including, without limitation, having a financial interest in the Company’s vendors or Students, or making loans to, or receiving loans, from, the Company’s vendors or Students, or subjects;

(b)

realize a personal gain or advantage from a transaction in which the Company has an interest or use information obtained in connection with the Executive’s employment with the Company for the Executive’s personal advantage or gain; or

(c)

accept any offer to serve as an officer, director, partner, consultant, manager with, or to be employed in a professional, technical, or managerial capacity by, a person or entity which does business with the Company.

12.

Inventions, Ideas, Processes, and Designs. Except for the scope of pre-existing knowledge which the Executive has prior to commencement of employment with the Company, all inventions, ideas, processes, programs, software, and designs (including all improvements) (i) conceived or made by the Executive during the course of her employment with the Company (whether or not actually conceived during regular business hours) and for a period of six months subsequent to the termination (whether by expiration of the Term or otherwise) of such employment with the Company, and (ii) related to the business of the Company, shall be disclosed in writing promptly to the Company and shall be the sole and exclusive property of the Company, and the Executive hereby assigns any such inventions to the Company. An invention, idea, process, program, software, or design (including an improvement) shall be deemed related to the business of the Company if (a) it was made with the Company’s funds, personnel, equipment, supplies, facilities, or Confidential Information, (b) results from work performed by the Executive for the Company, or (c) pertains to the current business or demonstrably anticipated research or development work of the Company. The Executive shall cooperate with the Company and its attorneys in the preparation of patent and copyright applications for such developments and, upon request, shall promptly assign all such inventions, ideas, processes, and designs to the Company. The decision to file for patent or copyright protection or to maintain such development as a trade secret, or otherwise, shall be in the sole discretion of the Company, and the Executive shall be bound by such decision. The Executive hereby irrevocably assigns to the Company, for no additional consideration, the Executive’s entire right, title and interest in and to all work product and intellectual property rights, including the right to sue, counterclaim and recover for all past, present and future infringement, misappropriation or dilution thereof, and all rights corresponding thereto throughout the world. Nothing contained in this Agreement shall be construed to reduce or limit the Company's rights, title or interest in any work product or intellectual property rights so as to be less in any respect than the Company would have had in the absence of this Agreement. If applicable, the Executive shall provide as a schedule to this Agreement, a complete list of all inventions, ideas, processes, and designs, if any, patented or unpatented, copyrighted or otherwise, or non-copyrighted, including a brief description, which she made or conceived prior to her employment with the Company and which therefore are excluded from the scope of this Agreement. References to the Company in this Section 12 shall include the Company, its subsidiaries and affiliates.

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13.

Indebtedness. If, during the course of the Executive’s employment under this Agreement, the Executive becomes indebted to the Company for any reason, the Company may, if it so elects, and if permitted by applicable law, set off any sum due to the Company from the Executive and collect any remaining balance from the Executive unless the Executive has entered into a written agreement with the Company.

14.

Assignability. With written notice to the Executive, the rights and obligations of the Company under this Agreement shall inure to the benefit of and be binding upon the successors and assigns of the Company, provided that such successor or assign shall acquire all or substantially all of the securities or assets and business of the Company. The Executive’s obligations hereunder may not be assigned or alienated and any attempt to do so by the Executive will be void.

15.

Severability.

(a)

The Executive expressly agrees that the character, duration and geographical scope of the non-competition provisions set forth in this Agreement are reasonable in light of the circumstances as they exist on the date hereof. Should a decision, however, be made at a later date by a court of competent jurisdiction that the character, duration or geographical scope of such provisions is unreasonable, then it is the intention and the agreement of the Executive and the Company that this Agreement shall be construed by the court in such a manner as to impose only those restrictions on the Executive’s conduct that are reasonable in the light of the circumstances and as are necessary to assure to the Company the benefits of this Agreement. If, in any judicial proceeding, a court shall refuse to enforce all of the separate covenants deemed included herein because taken together they are more extensive than necessary to assure to the Company the intended benefits of this Agreement, it is expressly understood and agreed by the parties hereto that the provisions of this Agreement that, if eliminated, would permit the remaining separate provisions to be enforced in such proceeding shall be deemed eliminated, for the purposes of such proceeding, from this Agreement.

(b)

If any provision of this Agreement otherwise is deemed to be invalid or unenforceable or is prohibited by the laws of the state or jurisdiction where it is to be performed, this Agreement shall be considered divisible as to such provision and such provision shall be inoperative in such state or jurisdiction and shall not be part of the consideration moving from either of the parties to the other. The remaining provisions of this Agreement shall be valid and binding and of like effect as though such provisions were not included.

16.

Notices and Addresses. All notices, offers, acceptance and any other acts under this Agreement (except payment) shall be in writing, and shall be sufficiently given if delivered to the addressees in person, by FedEx or similar receipted delivery, or next business day delivery to the addresses detailed below (or to such other address, as either of them, by notice to the other may designate from time to time), or by e-mail delivery (in which event a copy shall immediately be sent by FedEx or similar receipted delivery), as follows:

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To the Company:

Michael Mathews

Chief Executive Officer

Aspen Group, Inc.

46 East 21st Street, 3rd Floor

New York, NY 10010

Email: michael.mathews@aspen.edu

 

With a copy to:

Nason, Yeager, Gerson White & Lioce, P.A.

Attn: Michael D. Harris, Esq.

3001 PGA Blvd., Suite 305

Palm Beach Gardens, Florida 33410

Email: mharris@nasonyeager.com

 

To the Executive:

Cheri St. Arnauld

11811 N Tatum Blvd. #4000

Phoenix, AZ 85028

Email: carnauld@cox.net

 

17. 

Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. The execution of this Agreement may be by actual or facsimile signature.

18. 

Attorneys’ Fees. In the event that there is any controversy or claim arising out of or relating to this Agreement, or to the interpretation, breach or enforcement thereof, and any action or proceeding is commenced to enforce the provisions of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and expenses (including such fees and costs on appeal).

19. 

Governing Law. This Agreement shall be governed or interpreted according to the internal laws of the State of Delaware without regard to choice of law considerations and all claims relating to or arising out of this Agreement, or the breach thereof, whether sounding in contract, tort, or otherwise, shall also be governed by the laws of the State of Arizona without regard to choice of law considerations.

20. 

Entire Agreement. This Agreement constitutes the entire Agreement between the parties and supersedes all prior oral and written agreements between the parties hereto with respect to the subject matter hereof. Neither this Agreement nor any provision hereof may be changed, waived, discharged or terminated orally, except by a statement in writing signed by the party or parties against which enforcement or the change, waiver discharge or termination is sought.

21. 

Section and Paragraph Headings. The section and paragraph headings in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

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22. 

Section 409A Compliance.

(a)

This Agreement is intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), or an exemption thereunder. This Agreement shall be construed and administered in accordance with Section 409A. Notwithstanding any other provision of this Agreement to the contrary, payments provided under this Agreement may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service (including a voluntary separation from service for good reason that is considered an involuntary separation for purposes of the separation pay exception under Treasury Regulation 1.409A-1(n)(2)) or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each installment payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this Agreement upon a termination of employment shall only be made if such termination of employment constitutes a “separation from service” under Section 409A. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest, or other expenses that may be incurred by the Executive on account of non-compliance with Section 409A.

 

(b) 

Notwithstanding any other provision of this Agreement, if at the time of the Executive's termination of employment, the Executive is a “specified employee”, determined in accordance with Section 409A, any payments and benefits provided under this Agreement that constitute “nonqualified deferred compensation” subject to Section 409A (e.g., payments and benefits that do not qualify as a short-term deferral or as a separation pay exception) that are provided to the Executive on account of the Executive’s separation from service shall not be paid until the first payroll date to occur following the six-month anniversary of the Executive's termination date (“Specified Employee Payment Date”). The aggregate amount of any payments that would otherwise have been made during such six-month period shall be paid in a lump sum on the Specified Employee Payment Date without interest and thereafter, any remaining payments shall be paid without delay in accordance with their original schedule. If the Executive dies during the six-month period, any delayed payments shall be paid to the Executive’s estate in a lump sum upon the Executive’s death.

 

(c)

To the extent required by Section 409A, each reimbursement or in-kind benefit provided under this Agreement shall be provided in accordance with the following:

 

(i)

the amount of expenses eligible for reimbursement, or in-kind benefits provided, during each calendar year cannot affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year;

 

(ii)

any reimbursement of an eligible expense shall be paid to the Executive on or before the last day of the calendar year following the calendar year in which the expense was incurred; and

 

(iii) 

any right to reimbursements or in-kind benefits under this Agreement shall not be subject to liquidation or exchange for another benefit.

 

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(d)

In the event the Company determines that the Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code at the time of the Executive’s separation from service, then to the extent any payment or benefit that the Executive becomes entitled to under this Agreement on account of the Executive’s separation from service would be considered deferred compensation subject to Section 409A as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not be provided until the date that is the earlier of (i) six months and one day after the Executive’s separation from service, or (ii) the Executive’s death (the “Six Month Delay Rule”).

 

(i)

For purposes of this subparagraph, amounts payable under the Agreement should not provide for a deferral of compensation subject to Section 409A to the extent provided in Treasury Regulation Section 1.409A-1(b)(4) (e.g., short-term deferrals), Treasury Regulation Section 1.409A-1(b)(9) (e.g., separation pay plans, including the exception under subparagraph (iii)), and other applicable provisions of the Treasury Regulations.

 

(ii)

To the extent that the Six Month Delay Rule applies to payments otherwise payable on an installment basis, the first payment shall include a catch-up payment covering amounts that would otherwise have been paid during the six-month period but for the application of the Six Month Delay Rule, and the balance of the installments shall be payable in accordance with their original schedule.

 

(iii)

To the extent that the Six Month Delay Rule applies to the provision of benefits (including, but not limited to, life insurance and medical insurance), such benefit coverage shall nonetheless be provided to the Executive during the first six months following her separation from service (the “Six Month Period”), provided that, during such Six-Month Period, the Executive pays to the Company, on a monthly basis in advance, an amount equal to the Monthly Cost (as defined below) of such benefit coverage. The Company shall reimburse the Executive for any such payments made by the Executive in a lump sum not later than 30 days following the six-month anniversary of the Executive’s separation from service. For purposes of this subparagraph, “Monthly Cost” means the minimum dollar amount which, if paid by the Executive on a monthly basis in advance, results in the Executive not being required to recognize any federal income tax on receipt of the benefit coverage during the Six Month Period.

 

(e)

The parties intend that this Agreement will be administered in accordance with Section 409A. To the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A, the provision shall be read in such a manner so that all payments hereunder comply with Section 409A. The parties agree that this Agreement may be amended, as reasonably requested by either party, and as may be necessary to fully comply with Section 409A and all related rules and regulations in order to preserve the payments and benefits provided hereunder without additional cost to either party.

 

(f)

The Company makes no representation or warranty and shall have no liability to the Executive or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A but do not satisfy an exemption from, or the conditions of, such Section.

 

[Signature Page To Follow]

 

 

17

 

IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of the date and year first above written.

			
	 
	 

	Aspen Group, Inc.

 

	 
	 
	

By:______________________________

      Michael Mathews,

      Chief Executive Officer

			
	 

	 
	Executive:

 

	 
	 
	

__________________________________

Cheri St. Arnauld

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