Document:

BNC Bancorp Omnibus Stock Ownership and Long Term Incentive Plan

 Exhibit (10)(vii) 
  
 BNC BANCORP 
  
 OMNIBUS STOCK OWNERSHIP AND 
 LONG
TERM INCENTIVE PLAN 
  
 THIS IS THE OMNIBUS STOCK OWNERSHIP
AND LONG TERM INCENTIVE PLAN (“Plan”) of BNC Bancorp (the “Company”), a North Carolina corporation with its principal office in 831 Julian Avenue, Thomasville, Davidson County, North Carolina, under which Incentive Stock Options
and Non-Qualified Options to acquire shares of the Stock, Restricted Stock, Stock Appreciation Rights and/or Units may be granted from time to time to Eligible Directors and Eligible Employees of the Company and of any of its Subsidiaries (the
“Subsidiaries”), subject to the following provisions: 
  
 ARTICLE I 
 DEFINITIONS 
  
 The following terms shall have the meanings set forth below. Additional terms defined in this Plan shall have the meanings ascribed to them when first
used herein. 
  
 Bank. Bank of North Carolina,
Thomasville, North Carolina. 
  
 Board. The Board of
Directors of BNC Bancorp. 
  
 Change In Control
Transaction. A transaction in which (i) any “person” (as such term is defined in Section 3(a)(9) and 13(d)(3) of the 1934 Act), directly or indirectly, acquires beneficial ownership of voting stock, or acquires irrevocable proxies
or any combination of voting stock and irrevocable proxies, representing twenty-five percent (25%) or more of any class of voting securities of either the Company or the Bank, or acquires in any manner control of the election of a majority of the
directors of either the Company or the Bank, (ii) either the Company or the Bank consolidates or merges with or into another corporation, association or entity, or is otherwise reorganized, where neither the Company nor the Bank is the surviving
corporation in such transaction, or (iii) all or substantially all of the assets of either the Company or the Bank are sold or otherwise transferred to, or are acquired by, any other entity or group. 
  
 Code. The Internal Revenue Code of 1986, as amended.

  
 Committee. The Compensation Committee of the
Board, which shall be composed solely of two or more members of the Board who are “non-employee directors” as described in Rule 16(b)(3) of the Rules and Regulations under the Securities Exchange Act of 1934, as amended. 
  
 Common Stock. The Common Stock, no par value, of the Company.

  
 Death. The date and time of death of an Eligible
Director or Eligible Employee who has received Rights, as established by the relevant death certificate. 

 Disability. The date on which (A) an Eligible Employee who has received Rights becomes
totally and permanently disabled as determined (i) by the Company’s disability insurance carrier (if the Eligible Employee is covered by a Company-owned disability policy) or by his or her disability insurance carrier (if the Eligible Employee
is not covered by a Company-owned disability policy), (ii) under federal Social Security laws and regulations, or (iii) by a physician acceptable to the Company; and (B) an Eligible Director who has received Rights becomes totally and permanently
disabled as determined (i) under federal Social Security laws or (ii) by a physician acceptable to the Company. 
  
 Effective Date. Pursuant to the action of the Board adopting the Plan, the date as of which this Plan is effective shall be the date it is
approved by the Company’s shareholders. 
  
 Eligible
Directors. Those individuals who are duly elected directors of the Company or any of its subsidiaries who are serving in such capacity and who have been selected by the Committee as a person to whom a Right or Rights shall be granted under
the Plan. 
  
 Eligible Employees. Those individuals
who meet the following eligibility requirements: 
  
 (i) Such individual must be a full time employee of the Company or a Subsidiary. For this purpose, an individual shall be considered to be an “employee” only if there exists between the Company or a Subsidiary and the individual
the legal and bona fide relationship of employer and employee. In determining whether such relationship exists, the regulations of the United States Treasury Department relating to the determination of such relationship for the purpose of collection
of income tax at the source on wages shall be applied. 
  
 (ii) If the Registration shall not have occurred, such individual must have such knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and risks of the investment involved in the
receipt and/or exercise of a Right. 
  
 (iii)
Such individual, being otherwise an Eligible Employee under the foregoing items, shall have been selected by the Committee as a person to whom a Right or Rights shall be granted under the Plan. 
  
 Fair Market Value. With respect to the Company’s Common
Stock, the market price per share of such Common Stock determined by the Committee, consistent with the requirements of Section 422 of the Code and to the extent consistent therewith, as follows, as of the date specified in the context within which
such term is used: (i) if the Common Stock was traded on a stock exchange on the date in question, then the Fair Market Value will be equal to the closing price reported by the applicable composite-transactions report for such date; (ii) if
transactions in the Common Stock were quoted on the Nasdaq National Market on the date in question, then the Fair Market Value will be equal to the last-transaction price quoted by the Nasdaq National Market; (iii) if transactions in the Common
Stock were quoted on a system of The Nasdaq Stock Market, Inc., but not the Nasdaq National Market, then the Fair Market Value will be equal to the average of the last reported representative bid and asked prices quoted by The National Stock Market,
Inc. for such date; and (iv) if none of the foregoing provisions is applicable, then the Fair Market Value will be determined by the Committee in good faith on such basis as it deems appropriate. The Committee shall maintain a written record of its
method of determining Fair Market Value. 

 ISO. An “incentive stock option” as defined in Section 422 of the Code.

  
 Non-Qualified Option. Any Option granted under
Article III whether designated by the Committee as a Non-Qualified Option or otherwise, other than an Option designated by the Committee as an ISO, or any Option so designated but which, for any reason, fails to qualify as an ISO pursuant to Section
422 of the Code and the rules and regulations thereunder. 
  
 Option Agreement. The agreement between the Company and an Optionee with respect to Options granted to such Optionee, including such terms and provisions as are necessary or appropriate under Article III. 
  
 Options. ISOs and Non-Qualified Options are collectively
referred to herein as “Options;” provided, however, whenever reference is specifically made only to ISOs or Non-Qualified Options, such reference shall be deemed to be made to the exclusion of the other. 
  
 Plan Pool. A total of 150,000 shares of authorized, but
unissued, Common Stock and as adjusted pursuant to Section 2.3(b), which shall be available as Stock under this Plan. 
  
 Registration. The registration by the Company under the 1933 Act and applicable state “Blue Sky” and securities laws of this Plan,
the offering of Rights under this Plan, the offering of Stock under this Plan, and/or the Stock acquirable under this Plan. 
  
 Restricted Stock. The Stock which a Holder (as defined in Section 4.1(a)) shall be entitled to receive when, as and in the amounts described
in Article IV. 
  
 Restricted Stock Agreement. The
agreement between the Company and a Holder with respect to Rights to receive Restricted Stock, including such terms and provisions as are necessary or appropriate under Article IV. 
  
 Rights. The rights to exercise, purchase or receive the Options, Restricted Stock, Units, and SARs described
herein. 
  
 Rights Agreement. An Option Agreement, a
Restricted Stock Agreement, a Unit Agreement, a SAR Agreement or a Book Value Share Agreement. 
  
 SAR. The Right of a SAR Recipient (as defined in Section 5.1(a)) to receive cash when, as and in the amounts described in Article V. 
  
 SAR Agreement. The agreement between the Company and a SAR Recipient with respect to the SAR awarded to the
SAR Recipient, including such terms and conditions as are necessary or appropriate under Article V. 
  
 SEC. The Securities and Exchange Commission. 

 Stock. The shares of Common Stock in the Plan Pool available for issuance pursuant to the
valid exercise of a Right or on which the cash value of a Right is to be based. 
  
 Tax Withholding Liability. All federal and state income taxes, social security tax, and any other taxes applicable to the compensation income arising from the transaction required by applicable law to be
withheld by the Company. 
  
 Transfer. The sale,
assignment, transfer, conveyance, pledge, hypothecation, encumbrance, loan, gift, attachment, levy upon, assignment for the benefit of creditors, by operation of law (by will or descent and distribution), transfer by a qualified domestic relations
order, a property settlement or maintenance agreement, transfer by result of the bankruptcy laws or otherwise of a share of Stock or of a Right. 
  
 Unit Agreement. The agreement between the Company and Unit Recipient with respect to the award of Units to the Unit Recipient, including
such terms and conditions as are necessary or appropriate under Article V. 
  
 1933 Act. The Securities Act of 1933, as amended. 
  
 1934 Act. The Securities Exchange Act of 1934, as amended. 
  
 ARTICLE II 
 GENERAL 
  
 Section 2.1.
Purpose. The purposes of this Plan are to encourage and motivate directors and key employees to contribute to the successful performance of the Company and its Subsidiaries and the growth of the market value of the Common Stock; to
achieve a unity of purpose among such directors, key employees and the Company’s shareholders by providing ownership opportunities, and a unity of interest among such parties in the achievement of the Company’s primary long term
performance objectives; and to retain key employees by rewarding them with potentially tax-advantageous future compensation. These objectives will be promoted through the granting of Rights to designated Eligible Directors and Eligible Employees
pursuant to the terms of this Plan. 
  
 Section 2.2.
Administration. 
  
 (a) The Plan shall
be administered by the Committee which meets, and shall continue to meet, the standards of Rule 16b-3(d)(1) promulgated by the SEC under the 1934 Act. Subject to the provisions of SEC Rule 16b-3(d)(1), the Committee may designate any officers or
employees of the Company or any Subsidiary to assist in the administration of the Plan, to execute documents on behalf of the Committee and to perform such other ministerial duties as may be delegated to them by the Committee. 
  
 (b) Subject to the provisions of the Plan, the determinations
and the interpretation and construction of any provision of the Plan by the Committee shall be final and conclusive upon all persons affected thereby. By way of illustration and not of limitation, the Committee shall have the discretion (a) to
construe and interpret the Plan and all Rights 

 
granted hereunder and to determine the terms and provisions (and amendments thereof) of the Rights granted under the Plan (which need not be identical); (b)
to define the terms used in the Plan and in the Rights granted hereunder; (c) to prescribe, amend and rescind the rules and regulations relating to the Plan; (d) to determine the Eligible Employees to whom and the time or times at which such Rights
shall be granted, the number of shares of Stock, as and when applicable, to be subject to each Right, the exercise, other relevant purchase price or value pertaining to a Right, and the determination of leaves of absence which may be granted to
Eligible Employees without constituting a termination of their employment for the purposes of the Plan; and (e) to make all other determinations necessary or advisable for the administration of the Plan. Only the full Board of Directors has the
discretion to determine the Eligible Directors to whom and the time or times at which such Rights shall be granted, the number of shares of Stock, as and when applicable, to be subject to each Right, the exercise, and other relevant purchase price
or value pertaining to a Right. References to the Committee contained in this Agreement will also mean the Board wherever Rights of Eligible Directors are addressed. 
  
 (c) It shall be in the discretion of the Committee to grant Options to purchase shares of Stock which
qualify as ISOs under the Code or which will be given tax treatment as Non-Qualified Options. Any Options granted which fail to satisfy the requirements for ISOs shall become Non-Qualified Options. 
  
 (d) The intent of the Company is to register the (i)
offering of shares of Stock pertaining to or underlying the Rights and the offering of Rights pursuant to this Plan, (ii) this Plan and (iii) the Rights, to the extent required, under the 1933 Act and applicable state securities and “Blue
Sky” laws (the “Registration”). In such event, the Company shall make available to Eligible Directors and Eligible Employees receiving Rights, and/or shares of Stock in connection therewith, all disclosure documents required under
such federal and state laws. If such Registration shall not occur, the Committee shall be responsible for supplying the recipient of a Right, and/or shares of Stock in connection therewith, with such information about the Company as is contemplated
by the federal and state securities laws in connection with exemptions from the registration requirements of such laws, as well as providing the recipient of a Right with the opportunity to ask questions and receive answers concerning the Company
and the terms and conditions of the Rights granted under this Plan. In addition, if such Registration shall not occur, the Committee shall be responsible for determining the maximum number of Eligible Directors and Eligible Employees and the
suitability of particular persons to be Eligible Directors and Eligible Employees in order to comply with applicable federal and state securities statutes and regulations governing such exemptions. 
  
 (e) In determining the Eligible Directors and Eligible
Employees to whom Rights shall be granted and the number of shares of stock to be covered by each Right, the Committee shall take into account the nature of the services rendered by such Eligible Directors and Eligible Employees, their present and
potential contributions to the success of the Company and/or the Subsidiaries and such other factors as the Committee shall deem relevant. An Eligible Director or Eligible Employee who has been granted a Right under the Plan may be granted
additional Rights under the Plan if the Committee shall so determine. 

 If, pursuant to the terms of the Plan, or otherwise in connection with the Plan, it is
necessary that the percentage of stock ownership of an Eligible Director or Eligible Employee be determined, the ownership attribution provisions set forth in Section 424(d) of the Code shall be controlling. 
  
 (f) The granting of Rights pursuant to this Plan is in the
exclusive discretion of the Committee, and until the Committee acts, no individual shall have any rights under this Plan. The terms of this Plan shall be interpreted in accordance with this intent. 
  
 Section 2.3. Stock Available For Rights. 
  
 (a) Shares of the Stock shall be subject to, or underlying,
grants of Options, Restricted Stock, SARs and Units under this Plan. The total number of shares of Stock for which, or with respect to which, Rights may be granted (including the number of shares of Stock in respect of which SARs and Units may be
granted) under this Plan shall be those designated in the Plan Pool. In the event that a Right granted under the Plan to any Eligible Director or Eligible Employee expires or is terminated unexercised as to any shares of Stock covered thereby, such
shares thereafter shall be deemed available in the Plan Pool for the granting of Rights under this Plan; provided, however, if the expiration or termination date of a Right is beyond the term of the Plan as described in Section 8.3, then any shares
of Stock covered by unexercised or terminated Rights shall not reactivate the existence of this Plan and therefore shall not be available for additional grants of Rights under this Plan. 
  
 (b) In the event the outstanding shares of Common Stock are increased, decreased, changed into or exchanged
for a different number or kind of securities as a result of a stock split, reverse stock split, stock dividend, recapitalization, merger, share exchange acquisition, combination or reclassification appropriate proportionate adjustments will be made
in: (i) the aggregate number and/or kind of shares of Stock in the Plan Pool that may be issued pursuant to the exercise of, or that are underlying, Rights granted hereunder; (ii) the exercise or other purchase price and the number and/or kind of
shares of Stock called for with respect to, or underlying, each outstanding Right granted hereunder; and (iii) other rights and matters determined on a per share basis under this Plan or any Rights Agreement. Any such adjustments will be made only
by the Committee, subject to ratification by the Board, and when so made will be effective, conclusive and binding for all purposes with respect to this Plan and all Rights then outstanding. Except as provided in Section 5.2(g), no such adjustments
will be required by reason of (i) the issuance or sale by the Company for cash of additional shares of its Common Stock or securities convertible into or exchangeable for shares of its Common Stock, or (ii) the issuance of shares of Common Stock in
exchange for shares of the capital stock of any corporation, financial institution or other organization acquired by the Company or any subsidiary in connection therewith. 
  
 (c) The grant of a Right pursuant to this Plan shall not affect in any way the right or power of the Company
to make adjustments, reclassification, reorganizations or changes of its capital or business structure or to merge or to consolidate or to dissolve, liquidate or sell, or transfer all or any part of its business or assets. 

 (d) No fractional shares of Stock shall be issued under this Plan for any adjustment
under Section 2.3(b). 
  
 ARTICLE III 
 OPTIONS 
  
 Section 3.1. Grant of Options. 
  
 (a) The Company may grant Options to Eligible Directors and Eligible Employees as provided in this Article III. Options will be deemed
granted pursuant to this Article III only upon (i) authorization by the Committee, and (ii) the execution and delivery of an Option Agreement by the Eligible Director or Eligible Employee optionee (the “Optionee”) and a duly authorized
officer of the Company. Options will not be deemed granted hereunder merely upon authorization of such grant by the Committee. The aggregate number of shares of Stock potentially acquirable under all Options granted shall not exceed the total number
of shares of Stock in the Plan Pool, less all shares of Stock potentially acquired under, or underlying, all other Rights outstanding under this Plan. 
  
 (b) The Committee shall designate Options at the time a grant is authorized as either ISOs or Non-Qualified Options. The aggregate Fair
Market Value (determined as of the time an ISO is granted) of the shares of Stock as to which an ISO may first become exercisable by an Optionee in a particular calendar year (pursuant to Article III and all other plans of the Company and/or its
Subsidiaries) may not exceed $100,000 (the “$100,000 Limitation”). If an Optionee is granted Options in excess of the $100,000 Limitation, or if such Options otherwise become exercisable with respect to the number of shares of Stock which
would exceed the $100,000 Limitation, such excess Options shall be Non-Qualified Options. 
  
 Section 3.2. Exercise Price. The exercise price of each Option granted under the Plan (the “Exercise Price”) shall be not less than one hundred percent (100%) of the Fair Market Value of
the Common Stock on the date of grant of the Option. In the case of ISOs granted to a shareholder who owns capital stock of the Company possessing more than ten percent (10%) of the total combined voting power of all classes of the capital stock of
the Company (a “10% Shareholder”), the Exercise Price of each Option granted under the Plan to such 10% Shareholder shall not be less than one hundred and ten percent (110%) of the Fair Market Value of the Common Stock on the date of grant
of the Option. 
  
 Section 3.3. Terms and Conditions
of Options. 
  
 (a) All Options must be
granted within ten (10) years of the Effective Date. 
  
 (b) The Committee may grant ISOs and Non-Qualified Options, either separately or jointly, to an Eligible Employee. 
  
 (c) The grant of Options shall be evidenced by an Option Agreement in form and substance satisfactory to the Committee in its discretion,
consistent with the provisions of this Article III. 

 (d) At the discretion of the Committee, an Optionee, as a condition to the granting of
the Option, must execute and deliver to the Company a confidential information agreement approved by the Committee. 
  
 (e) Nothing contained in Article III, any Option Agreement or in any other agreement executed in connection with the granting of an Option
under this Article III will confer upon any Optionee any right with respect to the continuation of his or her status as an employee or director of the Company or any of its Subsidiaries. 
  
 (f) Except as otherwise provided herein, each Option Agreement may specify the period or periods of time
within which each Option or portion thereof will first become exercisable (the “Vesting Period”) with respect to the total number of shares of Stock acquirable thereunder. Such Vesting Periods will be fixed by the Committee in its
discretion, and may be accelerated or shortened by the Committee in its discretion; provided that the Committee may, at the time of grant of an Option, designate that, notwithstanding any otherwise applicable Vesting Period, such Option shall vest
immediately prior and subject to the consummation of a Change In Control Transaction (which may cause an Option granted as an ISO to be deemed a Non-Qualified Option). 
  
 (g) Not less than one hundred (100) shares of Stock may be purchased at any one time through the exercise of
an Option unless the number purchased is the total number at that time purchasable under all Options granted to the Optionee. 
  
 (h) An Optionee shall have no rights as a shareholder of the Company with respect to any shares of Stock underlying such Option until
payment in full of the Exercise Price by such Optionee for the stock being purchased. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions or other rights for which the
record date is prior to the date such Stock is fully paid for, except as provided in Section 2.3(b). 
  
 (i) All shares of Stock obtained pursuant to an Option which qualifies as an ISO shall be held in escrow for a period which ends on the
later of (i) two (2) years from the date of the granting of the ISO or (ii) one (1) year after the issuance of such shares pursuant to the exercise of the ISO. Such shares of Stock shall be held by the Company or its designee. The Optionee who has
exercised the ISO shall have all rights of a shareholder, including, but not limited, to the rights to vote, receive dividends and sell such shares. The sole purpose of the escrow is to inform the Company of a disqualifying disposition of the shares
of Stock acquired within the meaning of Section 422 of the Code, and it shall be administered solely for this purpose. 
  
 Section 3.4. Exercise of Options. 
  
 (a) An Optionee must at all times be an Eligible Employee from the date of grant until the exercise of the Options granted, except as
provided in Section 3.5(b). 

 (b) An Option may be exercised to the extent exercisable (i) by giving written notice of
exercise to the Company, specifying the number of shares of Stock to be purchased and, if applicable, accompanied by full payment of the Exercise Price thereof and the amount of withholding taxes pursuant to Section 3.4(c) below; and (ii) by giving
assurances satisfactory to the Company that the shares of Stock to be purchased upon such exercise are being purchased for investment and not with a view to resale in connection with any distribution of such shares in violation of the 1933 Act;
provided, however, that in the event of the prior occurrence of the Registration or in the event resale of such Stock without such Registration would otherwise be permissible, the second condition will be inoperative if, in the opinion of counsel
for the Company, such condition is not required under the 1933 Act or any other applicable law, regulation or rule of any governmental agency. 
  
 (c) As a condition to the issuance of the Stock upon full or partial exercise of a Non-Qualified Option, the Optionee will pay to the
Company in cash, or in such other form as the Committee may determine in its discretion, the amount of the Company’s Tax Withholding Liability required in connection with such exercise. 
  
 (d) The Exercise Price of an Option shall be payable to the
Company either (i) in United States dollars, in cash or by check, bank draft or money order payable to the order of the Company, or (ii) at the discretion of the Committee, through the delivery of outstanding shares of the Common Stock owned by the
Optionee with a Fair Market Value at the date of delivery equal to the Exercise Price, or (iii) at the discretion of the Committee by a combination of (i) and (ii) above. No shares of Stock shall be delivered until full payment has been made.

  
 Section 3.5. Term and Termination of Option.

  
 (a) The Committee shall determine, and
each Option Agreement shall state, the expiration date or dates of each Option, but such expiration date shall be not later than ten (10) years after the date such Option is granted (the “Option Period”). In the event an ISO is granted to
a 10% Shareholder, the expiration date or dates of each Option Period shall be not later than five (5) years after the date such Option is granted. The Committee, in its discretion, may extend the expiration date or dates of an Option Period after
such date was originally set; provided, however, such expiration date may not exceed the maximum expiration date described in this Section 3.5(a). 
  
 (b) To the extent not previously exercised, each Option will terminate upon the expiration of the Option Period specified in the Option
Agreement; provided, however, that each such Option will terminate upon the earlier of: (i) twelve (12) months after the date that the Optionee ceases to be an Eligible Employee by reason of Death or Disability; or (ii) immediately as of the date
that the Optionee ceases to be an Eligible Director or Eligible Employee for any reason other than Death or Disability. Any portions of Options not exercised within the foregoing periods shall terminate. 
  
 Section 3.6. Change in Control Transaction. All or any
part of the Options theretofore granted under this Article III shall become immediately exercisable in full and may thereafter be exercised on the date of consummation of the Change in Control Transaction. Any Option that has not been fully
exercised on or before the date of consummation of the Change in Control 

 
Transaction shall terminate on such date, unless a provision has been made in writing in connection with such transaction for the assumption of all Options
theretofore granted, or the substitution for such Options of options to acquire the voting stock of a successor employer corporation, or a parent or a subsidiary thereof, with appropriate adjustments in the number and kind of shares and prices, in
which event the Options theretofore granted shall continue in the manner and under the terms so provided. 
  
 Section 3.7. Restrictions On Transfer. An Option granted under Article III may not be Transferred except by will or the laws of
descent and distribution and, during the lifetime of the Optionee to whom it was granted, may be exercised only by such Optionee. 
  
 Section 3.8. Stock Certificates. Certificates representing the Stock issued pursuant to the exercise of Options will bear all legends
required by law and necessary to effectuate the provisions hereof. The Company may place a “stop transfer” order against such shares of Stock until all restrictions and conditions set forth in this Article III, the applicable Option
Agreement, and in the legends referred to in this Section 3.8 have been complied with. 
  
 Section 3.9. Amendment and Discontinuance. The Board may at any time alter, suspend, terminate or discontinue the Plan, subject to any applicable regulatory requirements and any required
shareholder approval or any shareholder approval which the Board may deem advisable for any reason, such as for the purpose of obtaining or retaining any statutory or regulatory benefits under tax, securities or other laws or satisfying applicable
stock exchange or quotation system listing requirements. The Board may not, without the consent of the holder of an Option previously granted, make any alteration which would deprive the optionee of his rights with respect thereto. 
  
 Section 3.10. Compliance with Rule 16b-3. With respect
to persons subject to Section 16 of the 1934 Act, transactions under this Article III are intended to comply with all applicable conditions of Rule 16b-3 or its successors under the 1934 Act. To the extent any provision of this Article III or action
by the Board or the Committee fails so to comply, it shall be deemed null and void, to the extent permitted by law and deemed advisable by the Committee. 
  
 ARTICLE IV 
 RESTRICTED STOCK GRANTS

  
 Section 4.1. Grants of Restricted Stock.

  
 (a) The Company may grant Restricted
Stock or Rights to receive Restricted Stock to Eligible Directors and Eligible Employees as provided in this Article IV. Shares of Restricted Stock, or Rights thereto, will be deemed granted only upon (i) authorization by the Committee and (ii) the
execution and delivery of a Restricted Stock Agreement by the Eligible Director or Eligible Employee to whom such Restricted Stock is to be issued (the “Holder”) and a duly authorized officer of the Company. Restricted Stock will not be
deemed to have been granted merely upon authorization by the Committee. The aggregate number of shares of Restricted Stock potentially acquirable under all Rights to acquire Restricted Stock shall not exceed the total number of shares of Stock in
the Plan Pool, less all shares of Stock potentially acquirable under, or underlying, all other Rights outstanding under this Plan. 

 (b) Each grant of Restricted Stock, or Rights thereto, pursuant to this Article IV will
be evidenced by a Restricted Stock Agreement between the Company and the Holder in form and substance satisfactory to the Committee in its sole discretion, consistent with this Article IV. Each Restricted Stock Agreement will specify the purchase
price per share (the “Purchase Price”), if any, with respect to the Restricted Stock to be issued to the Holder thereunder. The purchase price will be fixed by the Committee in its discretion. The Purchase Price will be payable to the
Company in United States dollars in cash or by check or such other legal consideration as may be approved by the Committee, in its discretion. 
  
 (c) Without limiting the foregoing, each Restricted Stock Agreement shall include the following terms and conditions: 
  
 (i) Nothing contained in this Article IV, any Restricted Stock Agreement or
in any other agreement executed in connection with the issuance of Restricted Stock under this Article IV will confer upon any Holder any right with respect to the continuation of his or her status as an employee or director of the Company or any of
its Subsidiaries. 
  
 (ii) Except as otherwise provided herein,
each Restricted Stock Agreement may specify the period or periods of time within which each Right to receive Restricted Stock or portion thereof will first become exercisable (the “Vesting Period”) with respect to the total number of
shares of Restricted Stock acquirable thereunder. Such Vesting Periods will be fixed by the Committee in its discretion, and may be accelerated or shortened by the Committee in its discretion; provided that the Committee may, at the time of grant of
a Restricted Stock, designate that, notwithstanding any otherwise applicable Vesting Period, such Restricted Stock shall vest immediately prior and subject to the consummation of a Change In Control Transaction.  
  
 Section 4.2. Restrictions on Transfer of Restricted Stock.

  
 (a) Rights to acquire Restricted Stock
may not be Transferred, and shares of Restricted Stock acquired by a Holder may be Transferred only in accordance with the specific limitations on the Transfer of Restricted Stock imposed by applicable state or federal securities laws and set forth
below, and subject to certain undertakings of the transferee set forth in Section 4.2(c). All Transfers of Restricted Stock not meeting the conditions set forth in this Section 4.2(a) are expressly prohibited. 
  
 (b) Any Transfer of Rights to acquire Restricted Stock and
any prohibited Transfer of Restricted Stock is void and of no effect. Should such a Transfer purport to occur, the Company may refuse to carry out the Transfer on its books, attempt to set aside the Transfer, enforce any undertaking or right under
this Section 4.2(b), or exercise any other legal or equitable remedy. 

 (c) Any Transfer of Restricted Stock that would otherwise be permitted under the terms of
this Plan is prohibited unless the transferee executes such documents as the Company may reasonably require to ensure the Company’s rights under a Restricted Stock Agreement and this Article IV are adequately protected with respect to the
Restricted Stock so Transferred. Such documents may include, without limitation, an agreement by the transferee to be bound by all of the terms of this Plan applicable to Restricted Stock, and of the applicable Restricted Stock Agreement, as if the
transferee were the original Holder of such Restricted Stock. 
  
 (d) To facilitate the enforcement of the restrictions on Transfer set forth in this Article IV, the Committee may, at its discretion, require the Holder of shares of Restricted Stock to deliver the certificate(s) for
such shares with a stock power executed in blank by Holder and Holder’s spouse, to the Secretary of the Company or his or her designee, to hold said certificate(s) and stock power(s) in escrow and to take all such actions and to effectuate all
such Transfers and/or releases as are in accordance with the terms of this Plan. The certificates may be held in escrow so long as the shares of Restricted Stock whose ownership they evidence are subject to any restriction on Transfer under this
Article IV or under a Restricted Stock Agreement. Each Holder acknowledges that the Secretary of the Company (or his or her designee) is so appointed as the escrow holder with the foregoing authorities as a material inducement to the issuance of
shares of Restricted Stock under this Article IV, that the appointment is coupled with an interest, and that it accordingly will be irrevocable. The escrow holder will not be liable to any party to a Restricted Stock Agreement (or to any other
party) for any actions or omissions unless the escrow holder is grossly negligent relative thereto. The escrow holder may rely upon any letter, notice or other document executed by any signature purported to be genuine. 
  
 Section 4.3. Termination. 
  
 (a) The Committee shall determine, and each Restricted Stock
Agreement shall state, the expiration date or dates of each Right to receive Restricted Stock, but such expiration date shall not be later than ten (10) years after the date such Rights are granted (the “Restricted Stock Period”). The
Committee, in its discretion, may extend the expiration date or dates of a Restricted Stock Period after such date was originally set; provided, however, such expiration date may not exceed the maximum expiration date described in this Section
4.3(a). 
  
 (b) To the extent not previously
exercised, each grant of Rights to receive Restricted Stock will terminate upon the expiration of the Restricted Stock Period specified in the Restricted Stock Agreement; provided, however, that each such grant of Rights to receive Restricted Stock
will terminate upon the earlier of: (i) twelve (12) months after the date that the Holder ceases to be an Eligible Director or Eligible Employee by reason of Death or Disability; or (ii) immediately as of the date that the Holder ceases to be an
Eligible Employee for any reason other than death or disability. Any portions of the grant of Rights to acquire Restricted Stock to a Holder not exercised within the foregoing periods shall terminate. 

 Section 4.4. Change in Control Transaction. All or any part of the grants of Rights
to receive Restricted Stock theretofore made under the Plan shall become immediately exercisable in full and may thereafter be exercised on the date of consummation of the Change in Control Transaction. Any grant of a Right to receive Restricted
Stock that has not been fully exercised on or before the date of consummation of the Change in Control Transaction shall terminate on such date, unless a provision has been made in writing in connection with such transaction for the assumption of
all grants of Restricted Stock, or Rights thereto, theretofore made, or the substitution for such grants of Restricted Stock, or Rights thereto, of grants of Restricted Stock to acquire the voting stock of a successor employer corporation, or a
parent or a subsidiary thereof, with appropriate adjustments as to the number and kind of shares and prices, in which event the grants of Restricted Stock, or Rights thereto, theretofore made shall continue in the manner and under the terms so
provided. 
  
 Section 4.5. Compliance with
Law. Notwithstanding any other provision of this Article IV, Restricted Stock may be issued pursuant to this Article IV only after there has been compliance with all applicable federal and state securities laws, and such issuance will be
subject to this overriding condition. The Company may include shares of Restricted Stock in a Registration, but will not be required to register or qualify Restricted Stock with the SEC or any state agency, except that the Company will register
with, or as required by local law, file for and secure an exemption from such registration requirements from, the applicable securities administrator and other officials of each jurisdiction in which an Eligible Director or Eligible Employee would
be issued Restricted Stock hereunder prior to such issuance. 
  
 Section 4.6. Stock Certificates. Certificates representing the Restricted Stock issued pursuant to this Article IV will bear all legends required by law and necessary to effectuate the provisions hereof. The Company may
place a “stop transfer” order against shares of Restricted Stock until all restrictions and conditions set forth in this Article IV, the applicable Restricted Stock Agreement and in the legends referred to in this Section 4.6, have been
complied with. 
  
 Section 4.7. Market
Standoff. To the extent requested by the Company and any underwriter of securities of the Company in connection with a firm commitment underwriting, no Holder of any shares of Restricted Stock will sell or otherwise Transfer any such shares
not included in such underwriting, or not previously registered in a Registration, during the one hundred twenty (120) day period following the effective date of the registration statement filed with the SEC in connection with such offering.

  
 Section 4.8. Amendment and
Discontinuance. The Board may at any time alter, suspend, terminate or discontinue the Plan, subject to any applicable regulatory requirements and any required shareholder approval or any shareholder approval which the Board may deem
advisable for any reason, such as for the purpose of obtaining or retaining any statutory or regulatory benefits under tax, securities or other laws or satisfying applicable stock exchange or quotation system listing requirements. The Board may not,
without the consent of the Holder of a Restricted Share previously granted, make any alteration which would deprive the Holder of his rights with respect thereto. 
  
 Section 4.9. Compliance with Rule 16b-3. With respect to persons subject to Section 16 of the 1934 Act,
transactions under this Article IV are intended to comply with all applicable conditions of Rule 16b-3 or its successors under the 1934 Act. To the extent any provision of this Article IV or action by the Board or the Committee fails so to comply,
it shall be deemed null and void, to the extent permitted by law and deemed advisable by the Committee. 

 ARTICLE V 
 STOCK APPRECIATION RIGHTS 
  
 Section 5.1. Grants of SARs. 
  
 (a) The Company may grant SARs to Eligible Directors and Eligible Employees under this Article V. SARs will be deemed granted only upon (i) authorization by the Committee and (ii) the execution and delivery of a SAR
Agreement by the Eligible Director or Eligible Employee to whom the SARs are to be granted (the “SAR Recipient”) and a duly authorized officer of the Company. SARs will not be deemed granted merely upon authorization by the Committee. The
aggregate number of shares of Stock which shall underlie SARs granted hereunder shall not exceed the total number of shares of Stock in the Plan Pool, less all shares of Stock potentially acquirable under, or underlying, all other Rights outstanding
under this Plan. 
  
 (b) Each grant of SARs
pursuant to this Article V shall be evidenced by a SAR Agreement between the Company and the SAR Recipient, in form and substance satisfactory to the Committee in its sole discretion, consistent with this Article V. 
  
 Section 5.2. Terms and Conditions of SARs. 

 
 (a) All SARs must be granted within ten (10) years of the
Effective Date. 
  
 (b) Each SAR issued pursuant
to this Article V shall have an initial base value (the “Base Value”) equal to the Fair Market Value of a share of Common Stock on the date of issuance of the SAR (the “SAR Issuance Date”). 
  
 (c) In its discretion and subject to the provisions of
Section 5.2(b) (as to the establishment of the Base Value of a SAR), the Committee may establish that the Base Value of a SAR shall be adjusted, upward or downward, on a quarterly basis, based upon the market value performance of the Common Stock in
comparison with the aggregate market value performance of a selected index or at a stated annual percentage rate. 
  
 (d) Nothing contained in this Article V, any SAR Agreement or in any other agreement executed in connection with the granting of a SAR
under this Article V will confer upon any SAR Recipient any right with respect to the continuation of his or her status as an employee or director of the Company or any of its Subsidiaries. 
  
 (e) Except as otherwise provided herein, each SAR Agreement
may specify the period or periods of time within which each SAR or portion thereof will first become exercisable (the “SAR Vesting Period”) with respect to the total Cash Payment (as defined in Section 5.4(b)) receivable thereunder. Such
SAR Vesting Periods will be fixed by the Committee in its discretion, and may be accelerated or shortened by the Committee in its discretion. 

 (f) SARs relating to no less than one hundred (100) shares of Stock may be exercised at
any one time unless the number exercised is the total number at that time exercisable under all SARs granted to the SAR Recipient. 
  
 (g) A SAR Recipient shall have no rights as a shareholder of the Company with respect to any shares of Stock covered by such SAR. However,
adjustment shall be made to each SAR granted for dividends (ordinary or extraordinary, whether in cash, securities or other property), and upon the sale by the Company for cash of additional shares of its Common Stock. 
  
 Section 5.3. Restrictions on Transfer of SARs.
Each SAR granted under this Article V may not be Transferred except by will or the laws of descent and distribution and, during the lifetime of the SAR Recipient to whom it was granted, may be exercised only by such SAR Recipient. 
  
 Section 5.4. Exercise of SARs. 
  
 (a) A SAR Recipient, or his or her executors or
administrators, or heirs or legatees, shall exercise a SAR of the SAR Recipient by giving written notice of such exercise to the Company. SARs may be exercised only upon the completion of the SAR Vesting Period applicable to such SAR. 
  
 (b) Within ten (10) days of the SAR Exercise Date applicable
to a SAR exercised in accordance with Section 5.4(a), the SAR Recipient shall be paid in cash the difference between the Base Value of such SAR (as adjusted, if applicable, under Section 5.2(f) as of the most recently preceding quarterly period) and
the Fair Market Value of the Common Stock as of the SAR Exercise Date, reduced by the Tax Withholding Liability arising from such exercise. 
  
 Section 5.5. Termination of SARs. 
  
 (a) The Committee shall determine in its sole discretion, and each SAR Agreement shall state, the expiration date or dates of each SAR,
but such expiration date shall not be later than ten (10) years after the date such SAR is granted (the “SAR Period”). The Committee, in its discretion, may extend the expiration date or dates of a SAR Period after such date was originally
set; provided, however, such expiration date may not exceed the maximum expiration date described in this Section 5.5(a). 
  
 (b) To the extent not previously exercised, each SAR will terminate upon the expiration of the SAR Period specified in the SAR Agreement;
provided, however, that each such SAR will terminate upon the earlier of: (i) twelve (12) months after the date that the SAR Recipient ceases to be an Eligible Director or Eligible Employee by reason of Death or Disability; or (ii) immediately as of
the date that the SAR Recipient ceases to be an Eligible Director or Eligible Employee for any reason other than by Death or Disability. Any SARs not exercised within the foregoing periods shall terminate. 

 Section 5.6. Change in Control Transaction. All or any part of the SARs theretofore
granted under this Article V shall become immediately exercisable in full and may thereafter be exercised on the date of consummation of the Change in Control Transaction. Any SAR that has not been fully exercised on or before the date of
consummation of the Change in Control Transaction shall terminate on such date, unless a provision has been made in writing in connection with such transaction for the assumption of all SARs theretofore granted, or the substitution for such SARs of
grants of stock appreciation rights having comparable characteristics under a stock appreciation rights plan of a successor employer corporation, or a parent or a subsidiary thereof, with appropriate adjustments, in which event the SARs theretofore
granted shall continue in the manner and under the terms so provided. 
  
 Section 5.7. Designation of Beneficiaries. A SAR Recipient may designate a beneficiary or beneficiaries to receive all or part of the cash to be paid to the SAR Recipient under this Article V in case of Death. A
designation of beneficiary may be replaced by a new designation or may be revoked by the SAR Recipient at any time. A designation or revocation shall be on a form to be provided for that purpose and shall be signed by the SAR Recipient and delivered
to the Company prior to the SAR Recipient’s Death. In case of the SAR Recipient’s Death, the amounts to be distributed to the SAR Recipient under this Article V with respect to which a designation of beneficiary has been made (to the
extent it is valid and enforceable under applicable law) shall be distributed in accordance with this Article V to the designated beneficiary or beneficiaries. The amount distributable to a SAR Recipient upon Death and not subject to such a
designation shall be distributed to the SAR Recipient’s estate. If there shall be any question as to the legal right of any beneficiary to receive a distribution under this Article V, the amount in question may be paid to the estate of the SAR
Recipient, in which event the Company shall have no further liability to anyone with respect to such amount. 
  
 Section 5.8. Amendment and Discontinuance. The Board may at any time alter, suspend, terminate or discontinue the Plan,
subject to any applicable regulatory requirements and any required shareholder approval or any shareholder approval which the Board may deem advisable for any reason, such as for the purpose of obtaining or retaining any statutory or regulatory
benefits under tax, securities or other laws or satisfying applicable stock exchange or quotation system listing requirements. The Board may not, without the consent of the SAR Recipient, make any alteration which would deprive the SAR Recipient of
his rights with respect thereto. 
  
 Section 5.9.
Compliance With Rule 16b-3. With respect to persons subject to Section 16 of the 1934 Act, transactions under this Article V are intended to comply with all applicable conditions of Rule 16b-3 or its successors under the 1934 Act. To
the extent any provision of this Article V or action by the Board or the Committee fails so to comply, it shall be deemed null and void, to the extent permitted by law and deemed advisable by the Committee. 
  
 ARTICLE VI 
 MISCELLANEOUS 
  
 Section 6.1. Application of Funds. The proceeds received by the Company from the sale of Stock pursuant to the exercise of Rights will be used for general corporate purposes. 

 Section 6.2. No Obligation to Exercise Right. The granting of a Right shall impose
no obligation upon the recipient to exercise such Right. 
  
 Section 6.3. Term of Plan. Except as otherwise specifically provided herein, Rights may be granted pursuant to this Plan from time to time within ten (10) years from the Effective Date. 
  
 Section 6.4. Captions and Headings; Gender and Number.
Captions and paragraph headings used herein are for convenience only, do not modify or affect the meaning of any provision herein, are not a part, and shall not serve as a basis for interpretation or construction of this Plan. As used herein, the
masculine gender shall include the feminine and neuter, and the singular number shall include the plural, and vice versa, whenever such meanings are appropriate. 
  
 Section 6.5. Expenses of Administration of Plan. All costs and expenses incurred in the operation and
administration of this Plan shall be borne by the Company or by one or more Subsidiaries. The Company shall indemnify, defend and hold each member of the Committee harmless against all claims, expenses and liabilities arising out of or related to
the exercise of the Committee’s powers and the discharge of the Committee’s duties hereunder. 
  
 Section 6.6. Governing Law. Without regard to the principles of conflicts of laws, the laws of the State of North Carolina shall
govern and control the validity, interpretation, performance, and enforcement of this Plan. 
  
 Section 6.7. Inspection of Plan. A copy of this Plan, and any amendments thereto, shall be maintained by the Secretary of the Company and shall be shown to any proper person making inquiry about
it. 
  
 Section 6.8. Severable Provisions.
The Company intends that the provisions of Articles III, IV and V, in each case together with Articles I, II and VI, shall each be deemed to be effective on an independent basis, and that if one or more of such Articles, or the operative provisions
thereof, shall be deemed invalid, void or voidable, the remainder of such Articles shall continue in full force and effect.Stock Option Plan 2004 (English translation)

 Exhibit 4.22 
  
 GPC Biotech AG 
 Martinsried/Planegg, Germany

  
 “2004 Stock Option Plan” 
 (Option Terms) 
  
 Preamble 
  
 The Annual Shareholders’
Meeting of GPC Biotech AG (hereinafter the “Company” or “GPC”) adopted a resolution on August 31, 2004, implementing the 2004 Stock Option Plan for members of the Management Board, as well as for employees of both the Company and
affiliated companies at home and abroad (hereinafter the “Optionees”). 
  
 The
terms of the 2004 Stock Option Plan are as follows: 
  
 § 1

 Form and Classification of the Option Right; Option Ledger 
  

	(1)	Optionees receive registered option rights that constitute the right to acquire the number of no-par value shares of the Company specified in the option offer or in the warrant.

  

	(2)	The option rights may be certificated by several registered global warrants. There is no entitlement to (individual) certification. 

  

	(3)	A stock ledger with an “option rights” column (hereinafter the “Option Ledger”) is kept at the exercise agent (cf. § 17) on behalf of the Company, in which the option
rights are recorded along with the subscription price (cf. § 7 para 1), the series and number, as well as the holder of the option rights identified by name, date of birth, domicile, and occupation. In particular, the Option Ledger also
contains the information necessary for determining the period pursuant to § 13 para 1 (“Vesting Period”). 

  

	(4)	The only persons deemed Optionees relative to the company are those who are recorded as such in the Option Ledger. 

  
 § 2 
 Structure of the
Option Right 
  

	(1)	Under the present terms and subject to the adjustments pursuant to § 7 and § 8, the option rights may be exercised at a ratio of 1:1 for no-par value registered shares of the
Company as the options issuer in return for payment of the base price to be established pursuant to § 7 (option right). 

  

	(2)	 The Company’s Annual Shareholders’ Meeting created contingent capital as of August 31, 2004, to secure the option rights to be granted to the Optionees. The
Company’s Management Board may decide — subject to agreement with the Supervisory Board, the latter acting alone insofar as the Management Board itself is affected — whether the no-par value shares needed 

	 	 
to discharge the exercised option rights shall be provided from the available contingent capital or from a program for the acquisition of treasury stock that has been
adopted or may be adopted by the Annual Shareholders’ Meeting. 

  
 § 3 
 Acquisition Periods; Term 
  

	(1)	The subscription rights may be offered to the beneficiaries within the last ten weekdays of each calendar month (acquisition period pursuant to Section 193 para 2 no 4 AktG
(Aktiengesetz - German Stock Corporation Act). The effective date of the option issue is the date on which the Management Board — or, insofar as that body itself is a beneficiary, the Supervisory Board — has made an offer to the
Optionee for subscription to the option rights, if said offer was accepted within the subscription period. 

  

	(2)	The term of the subscription rights to be issued is ten years from the date the subscription rights were issued. The subscription rights shall expire without compensation at maturity.

  
 § 4 
 Waiting Period 
  
 Pursuant to § 193 para 2 no 4 German Stock Corporation Act, the beneficiaries may exercise the subscription rights no sooner than two years after the subscription rights were granted. Moreover, the subscription rights may
be exercised only if the notice periods established by the Company in the offer letter or in the (global) warrants pursuant to § 13 para 1 have expired after such two-year waiting period. 
  
 § 5 
 Exercise Period 
  

	(1)	Subscription rights may not be exercised from the day on which the Company announces an offer to its shareholders to subscribe to new shares or bonds with conversion or option rights by means
of a notice sent to all shareholders or by publishing such offer in the Official Gazette [Bundesanzeiger] of the Federal Republic of Germany until the day on which the new Company shares are first quoted “ex rights” on the
Frankfurt/Main Stock Exchange. 

  

	(2)	In addition, the subscription rights may be exercised in each instance only for a period of six weeks beginning with the publication of the quarterly reports or the annual financial
statements (exercise period pursuant to Section 193 para 2 no 4 [German] Stock Corporation Act ). Subscription rights may not be exercised under any circumstances from December 24 through 31 of a calendar year. 

  

	(3)	The Management Board — or the Supervisory Board, insofar as the Management Board is affected — is authorized to impose further restrictions on the exercise period.

  
 § 6 
 Performance Targets 
  

	(1)	Notwithstanding § 4 and § 5, the subscription rights may be exercised only if the closing price of the stock outperforms a benchmark index (performance target pursuant to Section
193 para 2 no 4 German Stock Corporation Act ). 

  

 2 

	(2)	The benchmark index shall be a mixed index (the “Price Index”) — one half of which shall be composed of the IG Biotech Index of the Frankfurt/Main Stock Exchange and the other
half of which shall be composed of the NASDAQ Biotech Index — formed by adding the weighted values of the respective indices. 

  

	(3)	The Price Index, as well as the stock’s closing price on the day the subscription rights are issued, shall be the starting benchmark for measuring performance. The subscription rights
may be exercised only if the closing price outperforms the Price Index. The date four weeks prior to the exercise of the subscription rights shall be the governing date for purposes of comparison. 

  

	(4)	The price of the GPCB stock in the XETRA closing auction of the Frankfurt/Main Stock Exchange for one no-par value share of the Company shall be considered the closing price.

  
 § 7 
 Subscription Price 
  

	(1)	Under the option terms, each subscription right carries the right to subscribe to one no-par value registered share of the Company. The subscription price to be paid upon exercise of the
subscription right for subscription to one no-par value share shall correspond to the average of the closing prices of the Company’s no-par value shares in the XETRA closing auction on the Frankfurt/Main Stock Exchange during the last five
trading days prior to the granting of the subscription rights, but, at a minimum, to the pro rata amount of the capital stock represented by one share of GPC Biotech AG. 

  

	(2)	In the event of a capital increase from Company assets, any existing contingent capital pursuant to Section 218 German Stock Corporation Act shall be increased at the same ratio as the
capital stock. The subscription ratio pursuant to § 2 para 1 shall increase by the same ratio. Fractional shares that arise as a result of such capital increase from Company assets shall not be considered at the time the option right is
exercised. 

  
 § 8 
 Adjustment of the Option Rights 
  

	(1)	In the event of a merger of the Company into another company, a change in the Company’s corporate form, a change in the nominal value of the shares, or any comparable measures that
impair the Optionees’ rights through a loss of or a change in the shares underlying the option rights in accordance with the present option terms, the option right shall be replaced by the right to acquire, in each case, at the base price, that
number of shares of stock, capital shares, or other ownership interests in the Company or its legal successor (which take the place of the Company’s stock) whose value corresponds to the market value of the Company’s stock at the time such
measure is executed. For the rest, the provisions of the present option terms shall remain applicable without limitations. 

  

	(2)	In the event of a capital reduction through a reverse split (Section 222 para 4 German Stock Corporation Act) or through the redemption of shares (Section 237 German Stock Corporation Act),
the subscription ratio shall be adjusted by multiplying it by the factor obtained by dividing the number of shares subsequent to the capital reduction by the number of shares prior to the capital reduction. Fractional shares that arise as a result
of a capital reduction shall not be made available at the time the subscription right is exercised. 

  

 3 

	(3)	The Optionees are not entitled to any rights to dividends or other distributions in connection with the shares underlying the option rights until the option right is exercised.

  
 § 9 
 Exercise Procedure; Issuance of New Shares 
  

	(1)	In order to exercise the option right, the Optionee shall 

  

	 	a)	enter the number of options to be exercised and the exercise date in the original warrant. In addition, the Optionee shall sign such exercise in the original warrant and obtain the
Company’s countersignature; 

  

	 	b)	submit a written notice of exercise, in duplicate, to the exercise agent or to a fiduciary agent engaged for that purpose (cf. § 17) using the form available from such exercise agent or
fiduciary agent; and 

  

	 	c)	pay the full subscription price in euros, free of costs and charges to the Company, to the bank account of the Company as indicated on the exercise notice form. 

  

	(2)	Notices received by the exercise agent during the periods indicated in § 4 and § 5 shall be considered to have been submitted and received as of the following banking day on which
exercise of the option right is again permitted. The Optionee may retract his or her exercise notice only as long as such notice is not yet deemed to have been received. 

  

	(3)	New shares shall be printed and delivered in the form provided for by the Company’s applicable Articles of Incorporation, as amended. Issuance shall be effected — to the extent
possible and subject to full payment of the subscription price — within ten banking days after the exercise notice has taken effect. 

  

	(4)	In the event that the Optionee intends to sell the new shares acquired through exercise of the option immediately after receiving them, the Company, in the interest of placing the shares in a
manner not disruptive to the market, shall be entitled to offer the new shares arising from multiple exercises on behalf of the Optionees and in a manner that safeguards their interests, for example, to institutional investors as blocks of shares.
At the request of the Company, the Optionees shall cooperate in such placement in a suitable and appropriate manner designed not to disrupt the market. 

  

	(5)	New shares may be issued only in accordance with the provisions of the present option terms and not prior to full payment of the subscription price pursuant to § 7 (cf. Section 199 para
1 German Stock Corporation Act). 

  
 § 10

 Participation Rights of the New Shares 
  
 The shares resulting from the exercise of the option right participate in profits from the beginning of the previous fiscal year — if they result from such exercise prior to
the onset of the Company’s Annual Shareholders’ Meeting — otherwise, from the beginning of the fiscal year in which they are created through the exercise of the option right. 
  

 4 

 § 11 
 Disposition of Option Rights 
  

	(1)	The option rights may not be transferred under any circumstances. 

  

	(2)	Other dispositions of the option rights, the granting of subinterests, the establishment of a trust, or entering into short positions by conceding the option rights granted to the Optionee to
third parties, as well as comparable closing transactions which, economically, result in a disposal of the option rights, are equally impermissible. 

  

	(3)	Breaches of paras 1 and/or 2 shall result in forfeiture of the option rights. The Management Board, subject to agreement with the Supervisory Board, may approve dispositions pursuant to para
1 or 2, insofar as they are reported to the Management Board in advance, if the Company or the Optionee have a justified interest therein. 

  

	(4)	Notwithstanding paras 1 and 2, Optionees shall be authorized to sell their option rights after the expiration of the two-year waiting period (Section 193 para 2 no 4 German Stock Corporation
Act ) or after the expiration of the vesting period specified in the warrants to a bank to be designated by the Company. 

  
 § 12 
 Devolution of Inheritance 
  

	(1)	The option rights shall be freely inheritable, insofar as they have not been terminated pursuant to § 13. The heirs shall be subject to the provisions of the present option terms.

  

	(2)	The heirs shall be required to report their inheritance status to the Company and to prove their identity in accordance with Section 35 GBO (Grundbuchordnung - German Land Registry
Act). 

  
 § 13 
 Vesting Period; Termination of the Option Rights 
  

	(1)	As a rule, option rights may be terminated over a period not to exceed four (4) years (“Vesting Period”), where the expiration of the Vesting Period of all option rights granted to
the Optionee need not be uniformly distributed across the Vesting Period but may be staggered instead (e.g. 50% after two years and the remainder after four years, or one quarter annually across four years). The Vesting Period begins with the
issuance of the warrant. In each individual case, the Vesting Period shall be established by the Management Board or the Supervisory Board — depending on which body is responsible therefor — in accordance with internal guidelines, if any,
to be jointly formulated by these bodies and communicated to the Optionee in the option offer. Insofar as warrants certificating the option right are issued, the expiration of the Vesting Period is also set forth in the respective warrant.

  

	(2)	The Company or companies affiliated with it, now or in the future, may terminate an option right that is still subject to a Vesting Period pursuant to para 1 without prior notice and
compensation if the Optionee’s employment is terminated prior to the expiration of the Vesting Period established for the option right. The termination of option rights takes effect upon receipt of a separate written termination notice, but at
the earliest, 

  

	 	a)	in case the Optionee gives notice, upon receipt of such notice; 

  

 5 

	 	b)	in case the Optionee is terminated, as of the effective date of such termination (end of the employment contract) or, in case the Optionee is laid off, at the time of such layoff;

  

	 	c)	in case the Optionee gives notice for cause, at the time the Optionee’s termination would have taken effect — assuming that a termination notice from the Company or a company
affiliated with it, now or in the future, exists at the time the Optionee gives notice; or 

  

	 	d)	in all other cases, at the time the employment contract actually ends (e.g. through termination agreement, death, early retirement, family leave, and so forth). 

  

	(3)	The Company or the companies affiliated with it, now or in the future, may terminate an option right that is no longer subject to a Vesting Period pursuant to para 1 without prior notice and
compensation, 

  

	 	a)	if the Optionee has not exercised his or her option right within three (3) months [in case of death, within six (6) months] of the effective date of the termination pursuant to para 2 or

  

	 	b)	if the Optionee has not exercised his or her option right within three (3) months (in case of death, within six (6) months) of the withdrawal of the affiliate employing the Optionee from the
Group (interest of less than 50% in the capital stock or nominal capital), 

  
 where the exercise of such option right would have been possible, taking the waiting period pursuant to § 4 and the exercise periods pursuant to § 5 into account. If an option right cannot be exercised pursuant to the
provisions of § 4 and § 5 at the time the termination takes effect, the period begins when the exercise requirements set forth in § 4 and § 5 are satisfied. 
  

	(4)	In exceptional cases, the Management Board — or, if that body itself is affected, the Supervisory Board — may forgo termination of some or all of the option rights if such
termination of the option rights would seem inequitable in the specific case (suspension of employment owing to family leave, permanent disability, early retirement, and so forth). The same applies if the option rights are intended as a substitute
for a severance payment, if any, owed at the expiration of the employment contract or board appointment. In individual cases, the decision to forgo termination of the option right may be made conditional upon the requirement that the Vesting Period
be extended by a period commensurate with the suspension of the employment relationship (e.g. owing to family leave or unpaid vacation). 

  

	(5)	If the Optionee’s employment contract and/or board appointment with the Company or a company affiliated with it, now or in the future, ends — for whatever reason — and if it is
replaced by a new employment contract or board appointment (e.g. switch from the Management Board to the Supervisory Board) with the Company or a company affiliated with it, now or in the future, the aforementioned termination rights shall not apply
to such expiration but rather only to the expiration of the new employment contract or the new board appointment. 

  

	(6)	The Company is authorized to terminate the option right without prior notice effective immediately if and as soon as bankruptcy proceedings are instituted with regard to the Optionee’s
assets, the institution of bankruptcy proceedings is denied for lack of assets, or execution is levied upon option rights or warrants by a creditor and such execution is not lifted within six (6) months (upon expiration of the six-month period).

  

	(7)	The Company may require the Optionee or any other possessor to return any previously issued warrants that have been terminated. 

  

 6 

 § 14 
 Taxes 
  
 The Optionee shall be liable for paying all taxes due in
connection with the granting or exercise of the option rights, including church taxes and the solidarity surcharge, and the Company shall deduct such taxes and duties, to the extent prescribed by law, from the Optionee’s salary and, if
applicable, pay them to the respective corporate revenue service by way of withholding. Moreover, the Company may require the Optionee to prove that the respective taxes have been paid or provide adequate security before it issues any shares to the
Optionee. The Company shall report any failure or inability on the part of the Optionee to satisfy his or her duties under this provision to the corporate revenue service. 
  
 § 15 
 Insider Trading
Rules 
  

	(1)	The Company hereby advises Optionees that they may be subject to insider trading rules and could be held criminally liable if they fail to comply with such rules. Insiders are prohibited, in
particular, from using their knowledge of insider information (Section 14 para 1 German Securities Trading Act - Wertpapierhandelsgesetz) to sell the shares they subscribed through the exercise of their option rights.

  

	(2)	The Optionee undertakes hereby to acknowledge and comply with the internal guidelines on avoiding insider trading violations that the Company has issued or will issue in the future. Any
breach of these guidelines constitutes a violation of collateral duties under labor law, which might give the Company the right to terminate the Optionee effective immediately. 

  
 § 16 
 Non-Obligation Clause 
  
 Option rights
are granted with the proviso that such granting is voluntary and does not give rise to any legal claim to the granting of option rights in the future, even if option rights are granted repeatedly. 
  
 § 17 
 Exercise Agent 
  
 The Company’s
Management Board — or, insofar as that body itself is a beneficiary, the Supervisory Board — shall serve as the exercise agent. The Company authorizes its legal department to accept subscription notices and to execute the exercise
procedure. The Company is authorized to engage a fiduciary agent (e.g. a bank) to take over these duties from the Management or Supervisory Board and serve as the exercise agent. 
  
 § 18 
 Notifications

  
 Notices, communications, changes, or modifications pertaining to the option rights
shall be made known to the Optionee in writing. Legally binding written notifications (e.g. termination notices, adjustment of the base price, and so forth) shall be delivered to the Optionee in person against receipt 

  

 7 

 
or by registered mail or courier to the last address provided by the Optionee to the Company or its affiliate(s). 
  
 § 19 
 Concluding Provisions 
  

	(1)	If individual provisions of the present option terms are or become fully or partially ineffective or unenforceable, the effectiveness of the remaining provisions thereof shall not be affected
thereby. The ineffective or unenforceable provisions shall be replaced by provisions that come as close as possible to the economic purpose of the unenforceable provisions in a legally permissible manner. The same shall apply analogously to any
lacunae requiring amendment that become evident in the implementation of the present option terms. 

  

	(2)	Modifications of and amendments to the present terms shall be made in writing, to the extent that they need not be notarized. The preceding clause shall also apply to modifications of the
written form clause. 

  

	(3)	The Company’s domicile shall be the place of performance and jurisdiction. 

  

	(4)	The form and content of both the option rights and the rights and duties of the Optionee and the Company are subject to the laws of the Federal Republic of Germany. 

 
 Martinsried/Planegg, Germany,
                     
  
 The Management Board of 
 GPC Biotech AG 
  

	
	 Acknowledged:

	
	 
	 (                                      
  )

  

 8

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