Document:

Exhibit 10.1 

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT
(the “Agreement”) between Synthetic Biologics, Inc., a Nevada corporation, (the “Company”),
and Steven A. Shallcross (the “Executive”) is effective as of December 6, 2018 (the “Effective
Date”).

 

WITNESSETH:

 

WHEREAS, the
Executive has been employed by the Company as its Interim Chief Executive Officer and Chief Financial Officer pursuant to the terms
of an Employment Agreement dated April 28, 2015, as amended December 1, 2016, May 31, 2017 and December 20, 2017 (the “Prior
Employment Agreement”);

 

WHEREAS, the
Company desires to employ the Executive as its President and Chief Executive Officer and continue to employ Executive as its Chief
Financial Officer and the Executive desires to accept such employment, on the terms and conditions set forth in this Agreement;
and

 

WHEREAS, the
Company and the Executive have mutually agreed that, as of the Effective Date, this Agreement shall replace the Prior Employment
Agreement in its entirety.

 

NOW, THEREFORE,
in consideration of the promises and the mutual covenants and agreements contained herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as
follows:

 

1.            EMPLOYMENT.

 

(a)       TERMINATION
OF PRIOR EMPLOYMENT AGREEMENT. Effective as of 11:59 p.m. on the day immediately prior to the Effective Date, the Prior Employment
Agreement shall automatically terminate and be of no further force and effect.

 

(b)       EMPLOYMENT
TERM. The Company hereby offers to continue to employ the Executive, and the Executive hereby accepts continued employment
by the Company, upon the terms and conditions set forth in this Agreement, until the termination of the Executive’s employment
in accordance with Section 10 below, as applicable (the “Employment Term”). The Executive shall be employed
for three years unless there is an earlier termination in accordance with Section 10 below.

 

2.            POSITION
& DUTIES. During the Employment Term, the Executive shall serve as the Company’s President, Chief Executive Officer
and Chief Financial Officer. As President, Chief Executive Officer and Chief Financial Officer, the Executive shall have such duties,
authorities and responsibilities commensurate with the duties, authorities and responsibilities of persons in similar capacities
in similarly sized companies and such other duties and responsibilities as the Company’s Board of Directors (the “Board”)
shall designate that are consistent with the Executive’s position as President, Chief Executive Officer and Chief Financial
Officer, including directing, supervising and having responsibility for all aspects of the operations and general affairs of the
Company as directed by the Board. The Executive shall report to, and be subject to, the lawful direction of the Board. During the
Employment Term, the Executive shall use his best efforts to perform faithfully and efficiently the duties and responsibilities
assigned to the Executive hereunder and devote all of the Executive’s business time (excluding periods of vacation and other
approved leaves of absence) to the performance of the Executive’s duties with the Company. During the Term, the Executive
shall also serve, without additional compensation, as a member of the Board and the board of directors of the Company’s subsidiaries
and in such other executive-level positions or capacities as may, from time to time, be reasonably requested by the Board.

 

    1

     

    

 

3.            LOCATION.
Unless the parties otherwise agree in writing, at all times during the Employment Term, the Executive’s principal place of
business for performance of the services under this Agreement shall be in Rockville, Maryland.

 

4.            BASE
SALARY. The Company agrees to pay the Executive a base salary (the “Base Salary”) at an annual
rate of $550,000, payable semi-monthly in accordance with the regular payroll practices of the Company. The Executive’s Base
Salary shall be subject to review and adjustment from time to time by the Board (or a committee thereof) in its sole discretion,
but may not be decreased. The base salary as determined herein from time to time shall constitute “Base Salary” for
purposes of this Agreement.

 

5.            ANNUAL
BONUS. With respect to each calendar year during the Employment Term (beginning in the year of the Effective Date), the
Executive will be eligible to earn an annual performance bonus (the “Annual Bonus”). Beginning in the
2019 calendar year and for each full calendar year thereafter, the Executive will be eligible for an Annual Bonus of up to seventy
five percent (75%) of the Base Salary. The Annual Bonus will be based upon the Board’s assessment of the Executive’s
performance  and set by the Board in its sole discretion. The Annual Bonus,
if any, will be subject to applicable payroll deductions and withholdings. Following the close of each calendar year, the Board
will determine whether the Executive has earned the Annual Bonus, and the amount of any Annual Bonus, based on the set criteria.
No amount of the Annual Bonus is guaranteed, and the Executive must be an employee in good standing through the end of the applicable
calendar year to be eligible to receive an Annual Bonus; no partial or prorated bonuses will be provided. The Annual Bonus, if
earned, will be paid on or about December 1, but no later than December 31, of the applicable calendar year for which the Annual
Bonus is being measured. The Executive’s eligibility for an Annual Bonus is subject to change in the discretion of the Board
(or any authorized committee thereof).

 

6.            EQUITY.
In accordance with the terms of the various Option Grant Agreements entered into between the Executive and the Company prior
to December 6, 2018 (collectively, the “Grant Agreements”), the Executive has been granted options
to purchase an aggregate of Fifty Eight Thousand Five Hundred Seventy Five (58,575) post reverse stock split shares of
the Company’s publicly traded common stock (the “Grant”) subject to the terms of
the Company’s 2007 and 2010 Stock Incentive Plan (as amended) (the “Plans”) and the related
Grant Agreements between the parties. Except as specifically provided herein, the provisions of the Grant Agreements and
the Executive’s rights with respect to the grants thereunder shall continue.

 

    2

     

    

 

7.            EMPLOYEE
BENEFITS.

 

(a)       BENEFIT
PLANS. The Executive shall, in accordance with Company policy and the terms of the applicable Company benefit plan documents,
be eligible to participate in any benefit plan or arrangement, including health, life and disability insurance, retirement plans
and the like, that may be in effect from time to time and made available to the Company’s senior management. All matters
of eligibility for coverage or benefits under any benefit plan shall be determined in accordance with the provisions of such plan.
The Company reserves the right to change, alter, or terminate any benefit plan in its sole discretion. Notwithstanding the foregoing,
in the event that the terms of this Agreement differ from or are in conflict with the Company’s general employment policies
or practices, this Agreement shall control.

 

(b)       VACATION.
The Executive shall be entitled to twenty-two (22) days paid vacation and sick leave per year in accordance with the Company’s
policies and shall be entitled to accrue ten (10) days of vacation time during the Employment Term in accordance with the Company’s
vacation policy. Vacation is to be taken at such intervals as shall be appropriate and consistent with the proper performance of
the Executive’s duties hereunder. The existing vacation accrued for the past four (4) years to date not to exceed sixty (60)
days will rollover into this Agreement.

 

(c)       SUPPLEMENTAL
DISABILITY BENEFITS. During the Employment Term, the Company will pay for the applicable premiums for the Executive’s
coverage under its existing supplemental disability policy.

 

(d)       GENERAL
EXPENSE REIMBURSEMENTS. The Company will reimburse the Executive for all reasonable business expenses, including travel, computer
and cellular phone costs that the Executive incurs in performing the services hereunder pursuant to the Company’s usual expense
reimbursement policies and practices, following submission by the Executive of reasonable documentation thereof. All reimbursements
provided under this Agreement shall be made in accordance with the requirements of Section 409A (as defined below) to the extent
that such reimbursements are subject to Section 409A, including, as applicable, the requirements that (i) any reimbursement is
for expenses incurred during the Employment Term, (ii) the amount of expenses eligible for reimbursement during a calendar year
may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of an eligible expense
shall be made on or before the last day of the calendar year following the calendar year in which the expense was incurred, and
(iv) the right to reimbursement is not subject to liquidation or exchange for any other benefit.

 

(e)       INDEMNIFICATION.
The Company shall provide the Executive with full advance indemnification to the extent permitted by Nevada law, including indemnification
for activities at all subsidiaries.

 

8.            CONFIDENTIALITY
AND POST-EMPLOYMENT OBLIGATIONS. Executive agrees that the Company’s form of Proprietary Information, Inventions,
Non-Solicitation and Non-Competition Agreement dated February 27, 2017(the “Confidentiality Agreement”),
which Executive had executed remains in full force and effect. The Confidentiality Agreement may be amended by the parties from
time to time without regard to this Agreement. The Confidentiality Agreement contains provisions that are intended by the parties
to survive and do survive termination of this Agreement.

 

    3

     

    

 

9.            OUTSIDE
ACTIVITIES DURING EMPLOYMENT.

 

(a)       NO
ADVERSE INTERESTS. The Executive agrees not to acquire, assume or participate in, directly or indirectly, any position, investment
or interest known by him to be adverse or antagonistic to the Company, its business or prospects, financial or otherwise during
the Employment Term without the consent of the Board. Except with the prior written consent of the Board, during the Employment
Term the Executive will not undertake or engage in any other employment, occupation or business enterprise. Notwithstanding the
foregoing, nothing shall not prevent the Executive from participating in charitable, civic, educational, professional, community
or industry affairs or, with prior approval of the Board, serving on the board of directors or advisory boards of other companies;
provided that such activities or services do not (i) create a conflict with his employment hereunder; (ii) materially interfere
with the performance of his duties; or (iii) violate the terms of the Confidentiality Agreement.

 

(b)       NONCOMPETITION.
Other than as permitted by Section 9(a), during the Employment Term and for the one year period thereafter (the “Non-Competition
Period”), except on behalf of the Company, the Executive will not directly or indirectly, whether as an officer,
director, stockholder, partner, proprietor, associate, representative, consultant, or in any capacity whatsoever engage in, become
financially interested in, participate in, be employed by or have any business connection with any other person, corporation, firm,
partnership or other entity whatsoever which competes with the Company, anywhere throughout the world, in any line of business
engaged in (or planned to be engaged in) by the Company other than de minimis stock holdings in public companies; provided,
however, that anything above to the contrary notwithstanding, he may own, as a passive investor, securities of any competitor
corporation, so long as his direct holdings in any one such corporation shall not in the aggregate constitute more than one percent
(1%) of the voting stock of such corporation, and provided that the Executive promptly discloses to the Board any such participation,
other than such de minimis stock holdings.

 

(c)       NONSOLICITATION.
During the Non-Competition Period, Executive shall not, directly or indirectly, (i) induce or attempt to induce or aid others in
inducing anyone working at or for the Company to cease working at or for the Company, or in any way interfere with the relationship
between the Company and anyone working at or for the Company except in the proper exercise of Executive’s authority or (ii)
in any way interfere with the relationship between the Company and any customer, supplier, licensee or other business relation
of the Company.

 

(d)       SCOPE.  If,
at the time of enforcement of this Section 9, a court shall hold that the duration, scope, area or other restrictions stated herein
are unreasonable under circumstances then existing, the parties agree that the maximum duration, scope, area or other restrictions
reasonable under such circumstances shall be substituted for the stated duration, scope, area or other restrictions.

 

    4

     

    

 

(e)      INDEPENDENT AGREEMENT.  The
covenants made in this Section 9 shall be construed as an agreement independent of any other provisions of this Agreement, and
shall survive the termination of this Agreement.  Moreover, the existence of any claim or cause of action of Executive
against the Company or any of its affiliates, whether or not predicated upon the terms of this Agreement, shall not constitute
a defense to the enforcement of these covenants.

 

10.          TERMINATION.
The Executive’s employment and the Employment Term shall terminate on the first of the following to occur:

 

(a)       DISABILITY.
Upon the 30th day following the Executive’s receipt of notice of the Company’s termination due to Disability
(as defined in this Section); provided that, the Executive has not returned to full-time performance of his duties within
thirty (30) days after receipt of such notice. If the Company determines in good faith that the Executive’s Disability
has occurred during the term of this Agreement, it will give the Executive written notice of its intention to terminate his employment. 
For purposes of this Agreement, “Disability” shall occur when the Board determines that the Executive
has become physically or mentally incapable of performing the essential functions of his job duties under this Agreement with or
without reasonable accommodation, for ninety (90) consecutive days or one hundred twenty (120) nonconsecutive days in any twelve
(12) month period, subject to any applicable law. For purposes of this Section, at the Company’s request, the Executive agrees
to make himself available and to cooperate in a reasonable examination by an independent qualified physician selected by the Board.

 

(b)       DEATH.
Automatically on the date of death of the Executive.

 

(c)       CAUSE.
Immediately upon written notice by the Company to the Executive of a termination for Cause. For purposes of this Agreement, “Cause”
shall mean the occurrence of any of the following events, as determined by the Board in its sole and absolute discretion: (i) gross
insubordination, acts of embezzlement or misappropriation of funds, fraud, dereliction of fiduciary obligations; (ii) conviction
of a felony or other crime involving moral turpitude, dishonesty or theft (including entry of a nolo contendere plea); (iii)
willful unauthorized disclosure of confidential information belonging to the Company or entrusted to the Company by a client; (iv)
material violation of any provision of this Agreement, of any Company policy, and/or of the Confidentiality Agreement, which, to
the extent it is curable by the Executive, is not cured by the Executive within thirty (30) days of receiving written notice of
such violation by the Company; (v) being under the influence of drugs (other than prescription medicine or other medically-related
drugs to the extent that they are taken in accordance with their directions) during the performance of the Executive’s duties
under this Agreement; (vi) engages in conduct that violates the Company’s non-discrimination/harassment policy and warrants
termination; (vii) willful failure to perform his written assigned tasks, where such failure is attributable to the fault of the
Executive which, to the extent it is curable by the Executive, is not cured by Executive within thirty (30) days of receiving written
notice of such violation by the Company.

 

(d)       WITHOUT
CAUSE. Upon written notice by the Company to the Executive of an involuntary termination without Cause and other than due to
death or Disability.

 

    5

     

    

 

(e)       WITH
GOOD REASON. Upon the Executive’s notice following the end of the Cure Period (as defined in this Section). For purposes
of this Agreement, “Good Reason” for the Executive to terminate his employment hereunder shall mean the
occurrence of any of the following events without the Executive’s consent: (i) a material reduction in the Executive’s
Base Salary (other than an across-the-board decrease in base salary applicable to all executive officers of the Company); (ii)
a material breach of this Agreement by the Company; (iii) a material reduction in the Executive’s duties, authority and responsibilities
relative to the Executive’s duties, authority, and responsibilities in effect immediately prior to such reduction; or (iv)
the relocation of the Executive’s principal place of employment, without the Executive’s consent, in a manner that
lengthens his one-way commute distance by fifty (50) or more miles from his then-current principal place of employment immediately
prior to such relocation; provided, however, that, any such termination by the Executive shall only be deemed for Good Reason
pursuant to this definition if: (1) the Executive gives the Company written notice of his intent to terminate for Good Reason within
thirty (30) days following the first occurrence of the condition(s) that he believes constitute(s) Good Reason, which notice shall
describe such condition(s); (2) the Company fails to remedy such condition(s) within thirty (30) days following receipt of the
written notice (the “Cure Period”); and (3) the Executive voluntarily terminates his employment within
thirty (30) days following the end of the Cure Period.

 

(f)       WITHOUT
GOOD REASON. Upon the expiration of the Transition Period (as defined in this Section) unless otherwise provided by the Company
as provided herein, the Executive shall provide thirty (30) days’ prior written notice (the “Transition Period”)
to the Company of the Executive’s intended termination of employment without Good Reason (“Voluntary Termination”).
During the Transition Period, the Executive shall assist and advise the Company in any transition of business, customers, prospects,
projects and strategic planning, and the Company shall continue to pay Executive’s Base Salary and benefits through the end
of the Transition Period. The Company may, in its sole discretion, upon five (5) days prior written notice to the Executive, make
such termination of employment effective earlier than the expiration of the Transition Period (“Early Termination Right”),
but it shall pay the Executive’s Base Salary and benefits through the earlier of: the end of the Transition Period, or the
date that the Executive accepts full-time employment or a full-time consulting engagement from a third party.

 

11.          CONSEQUENCES
OF TERMINATION. Any termination payments made and benefits provided under this Agreement to the Executive shall be in lieu
of any termination or severance payments or benefits for which the Executive may be eligible under any of the plans, policies or
programs of the Company or its affiliates as may be in effect from time to time. Subject to satisfaction of each of the conditions
set forth in Section 12, the following amounts and benefits shall be due to the Executive. Any Accrued Amounts (as defined in Section
11(a)) shall be payable on the next regularly scheduled Company payroll date following the date of termination or earlier if required
by applicable law.

 

(a)       DISABILITY.
Upon employment termination due to Disability, the Company shall pay or provide the Executive: (i) any unpaid Base Salary through
the date of termination and any accrued vacation; (ii) any unpaid Annual Bonus earned with respect to any calendar year ending
on or preceding the date of termination; (iii) reimbursement for any unreimbursed expenses incurred through the date of termination;
and (iv) all other payments and benefits to which the Executive may be entitled under the terms of any applicable compensation
arrangement or benefit, equity or perquisite plan or program or grant or this Agreement, including but not limited to any applicable
insurance benefits (collectively, “Accrued Amounts”). In addition, upon the Executive’s termination
due to Disability, the Executive shall be entitled to exercise any vested equity award(s) granted to the Executive for a period
equal to the shorter of: (i) six (6) months after termination, or (ii) the remaining term of the award(s).

 

    6

     

    

 

(b)       DEATH.
In the event the Employment Term ends on account of the Executive’s death, the Executive’s estate (or to the extent
a beneficiary has been designated in accordance with a program, the beneficiary under such program) shall be entitled to any Accrued
Amounts, including but not limited to proceeds from any Company sponsored life insurance programs. In addition, upon the Executive’s
death, the Company will extend the time period that the Executive’s estate (or to the extent a beneficiary has been designated
in accordance with a program, the beneficiary under such program) shall be entitled to exercise any vested equity award(s) granted
to the Executive for a period equal to the shorter of: (i) six (6) months after termination, or (ii) the remaining term of the
award(s).

 

(c)       TERMINATION
FOR CAUSE OR WITHOUT GOOD REASON. If the Executive’s employment should be terminated (i) by the Company for Cause, or
(ii) by the Executive without Good Reason, the Company shall pay to the Executive any Accrued Amounts only, and shall not be obligated
to make any additional payments to the Executive. In addition, upon the Executive’s termination by the Company for Cause,
or by the Executive for Good Reason, all options not exercised shall terminate.

 

(d)       TERMINATION
WITHOUT CAUSE OR FOR GOOD REASON. If the Executive’s employment by the Company is terminated by the Company without Cause
(and not due to Disability or death) or by the Executive for Good Reason, then the Company shall pay or provide the Executive with
the Accrued Amounts and subject to compliance with Section 12:

 

i.       continue
payment of the Executive’s Base Salary as in effect immediately preceding the last day of the Employment Term (ignoring any
decrease in Base Salary that forms the basis for Good Reason), for a period of twelve (12) months following the termination date
(the “Severance Period”) on the Company’s regular payroll dates; provided, however, that
any payments otherwise scheduled to be made prior to the effective date of the General Release (namely, the date it can no longer
be revoked) shall accrue and be paid in the first payroll date that follows such effective date with subsequent payments occurring
on each subsequent Company payroll date;

 

ii.       if
the Executive timely elects continued coverage under COBRA for himself and his covered dependents under the Company’s group
health plans following such termination, then the Company shall pay the COBRA premiums necessary to continue the Executive’s
and his covered dependents’ health insurance coverage in effect for himself (and his covered dependents) on the termination
date until the earliest of (i) twelve (12) months following the termination date; (ii) the date when the Executive becomes eligible
for substantially equivalent health insurance coverage in connection with new employment or self-employment; or (iii) the date
the Executive ceases to be eligible for COBRA continuation coverage for any reason, including plan termination (such period from
the termination date through the earlier of (i)-(iii), the “COBRA Payment Period”). Notwithstanding the
foregoing, if at any time the Company determines that its payment of COBRA premiums on the Executive’s behalf would result
in a violation of applicable law (including but not limited to the 2010 Patient Protection and Affordable Care Act, as amended
by the 2010 Health Care and Education Reconciliation Act), then in lieu of paying COBRA premiums pursuant to this Section, the
Company shall pay the Executive on the last day of each remaining month of the COBRA Payment Period, a fully taxable cash payment
equal to the COBRA premium for such month, subject to applicable tax withholding (such amount, the “Special Severance
Payment”), such Special Severance Payment to be made without regard to the Executive’s payment of COBRA premiums
and without regard to the expiration of the COBRA period prior to the end of the COBRA Payment Period. Nothing in this Agreement
shall deprive the Executive of his rights under COBRA or ERISA for benefits under plans and policies arising under his employment
by the Company; and

 

    7

     

    

 

iii.       
Executive shall be entitled to exercise any vested equity award(s) granted to the Executive for a period equal to the shorter of:
(i) six (6) months after termination, or (ii) the remaining term of the award(s).

 

If the Executive’s
employment by the Company is terminated by the Company without Cause (and not due to Disability or death) or by the Executive for
Good Reason, then the Executive will be eligible to receive additional severance benefits including, but not limited to, a pro-rata
portion of the Executive’s Annual Bonus, as determined by the Board of Directors, for the performance year in which the Executive’s
termination occur.

 

12.          CONDITIONS.
Any payments or benefits made or provided pursuant to Section 11 (other than Accrued Amounts) are subject to the Executive’s
(or, in the event of the Executive’s death, the beneficiary’s or estate’s, or in the event of the Executive’s
Disability, the guardian’s):

 

(a)       compliance
with the provisions of Section 8 hereof;

 

(b)       delivery
to the Company of an executed waiver and general release of any and all known and unknown claims, and other provisions and covenants,
in the form acceptable to the Company (which shall be delivered to the Executive within five (5) business days following the termination
date) (the “General Release”) within 21 days of presentation thereof by the Company to the Executive
(or a longer period of time if required by law), and permitting the General Release to become effective in accordance with its
terms; and

 

(c)       delivery
to the Company of a resignation from all offices, directorships and fiduciary positions with the Company, its affiliates and employee
benefit plans effective as of the termination date.

 

    8

     

    

  

Notwithstanding the
due date of any post-employment payments, any amounts due following a termination under this Agreement (other than Accrued Amounts)
shall not be due until after the expiration of any revocation period applicable to the General Release without the Executive having
revoked such General Release, and any such amounts shall be paid or commence being paid to the Executive within fifteen (15) days
of the expiration of such revocation period without the occurrence of a revocation by the Executive (or such later date as may
be required under Section 19 of this Agreement). Nevertheless (and regardless of whether the General Release has been executed
by the Executive), upon any termination of the Executive’s employment, the Executive shall be entitled to receive any Accrued
Amounts, payable after the date of termination in accordance with the Company’s applicable plan, program, policy or payroll
procedures. Notwithstanding anything to the contrary in this Agreement, if any severance pay or benefits are deferred compensation
under Section 409A (as defined below), and the period during which the Executive may sign the General Release begins in one calendar
year and the first payroll date following the period during which the Executive may sign the General Release occurs in the following
calendar year, then the severance pay or benefit shall not be paid or the first payment shall not occur until the later calendar
year.

 

13.          CONSEQUENCES
OF A CHANGE IN CONTROL.

 

(a)       Upon
the closing of a Change in Control (as defined below), all unvested stock options shall immediately vest and the time period that
the Executive shall have to exercise all vested stock options and other awards that the Executive may have under the Plan (including
the Initial Grant) or any successor equity compensation plan as may be in place from time to time shall be equal to the shorter
of: (i) six (6) months days after termination, or (ii) the remaining term of the award(s).

 

    9

     

    

 

(b)       If
within one year after the occurrence of a Change in Control, the Executive terminates his employment with the Company for Good
Reason or the Company terminates the Executive's employment for any reason other than death, Disability or Cause, the Company (or
the then former Company subsidiary employing the Executive), or the consolidated, surviving or transferee person in the event of
a Change in Control pursuant to a consolidation, merger or sale of assets, the Executive shall be entitled to receive from the
Company (i) the portion of the Base Salary for periods prior to the effective date of termination accrued but unpaid (if any);
(ii) all unreimbursed expenses (if any), subject to Section 7(b); (iii) an aggregate amount (the “Change in Control Severance
Amount”) equal to two times the sum of the Base Salary plus an amount equal to the bonus that would be payable if the “target”
level performance were achieved under the Company's annual bonus plan (if any) in respect of the fiscal year during which the termination
occurs (or the prior fiscal year if bonus levels have not yet been established for the year of termination); and (iv) the payment
or provision of any Other Benefits. The Change in Control Severance Amount shall be paid in a lump sum, if the Change in Control
event constitutes a “change in the ownership” or a “change in the effective control” of the Company or
a “change in the ownership of a substantial portion of a corporation's assets” (each within the meaning of Section
409A), or in 48 substantially equal payments, if the Change in Control event does not so comply with Section 409A. The lump sum
amount shall be paid, or the installment payments shall commence, as applicable, on the first scheduled payroll date (in accordance
with the Company's payroll schedule in effect for the Executive immediately prior to such termination) that occurs on or following
the date that is 30 days after the Executive's termination of employment; provided, however, that the payment of such severance
amount is subject to the Executive's compliance with the requirement to deliver the General Release contemplated pursuant to Section
12(b). Any such installment payment shall be treated as a separate payment as defined under Treasury Regulation §1.409A-2
(b)(2). If the Executive is a “specified employee” (as determined under the Company's policy for identifying specified
employees) on the date of his “separation from service” (within the meaning of Section 409A) and if any portion of
the severance amount described in clause (iii) would be considered “deferred compensation” under Section 409A, such
severance amount shall not be paid or commence to be paid on any date prior to the first business day after the date that is six
months following the Executive's separation from service (unless any such payment(s) shall satisfy the short-term deferral rule,
as defined in Treasury Regulation §1.409A-1(b)(4), or shall be treated as separation pay under Treasury Regulation §1.409A-1(b)(9)(iii)
or §1.409A-1(b)(9)(v)). If paid in installments, the first payment that can be made shall include the cumulative amount of
any amounts that could not be paid during such six-month period. In addition, interest will accrue at the 10-year T-bill rate (as
in effect as of the first business day of the calendar year in which the separation from service occurs) on such lump sum amount
or installment payments, as applicable, not paid to the Executive prior to the first business day after the sixth month anniversary
of his separation from service that otherwise would have been paid during such six-month period had this delay provision not applied
to the Executive and shall be paid at the same time at which the lump sum payment or the first installment payment, as applicable,
is made after such six-month period. Notwithstanding the foregoing, a payment delayed pursuant to the preceding three sentences
shall commence earlier in the event of the Executive's death prior to the end of the six-month period. Upon the termination of
employment with the Company for Good Reason by the Executive or upon the involuntary termination of employment with the Company
of the Executive for any reason other than death, Disability or Cause, in either case within two years after the occurrence of
a Change in Control, the Company (or the then former Company subsidiary employing the Executive), or the consolidated, surviving
or transferee person in the event of a Change in Control pursuant to a consolidation, merger or sale of assets, shall also provide,
for the period of two consecutive years commencing on the date of such termination of employment, medical, dental, life and disability
insurance coverage for the Executive and the members of his family which is not less favorable to the Executive than the group
medical, dental, life and disability insurance coverage carried by the Company for the Executive and the members of his family
at the time of termination.

 

(c)        For
purposes of this Agreement, “Change in Control” means:

 

(i) any person or entity
becoming the beneficial owner, directly or indirectly, of securities of the Company representing fifty percent (50%) of the total
voting power of all its then outstanding voting securities;

 

(ii) a merger or consolidation
of the Company in which its voting securities immediately prior to the merger or consolidation do not represent, or are not converted
into securities that represent, a majority of the voting power of all voting securities of the surviving entity immediately after
the merger or consolidation; or

 

(iii) a sale of substantially
all of the assets of the Company or a liquidation or dissolution of the Company.

 

    10

     

    

  

14.          ASSIGNMENT.
This Agreement shall be binding upon and inure to the benefit of the Executive and the Executive’s heirs, executors, personal
representatives, assigns, administrators and legal representatives. Because of the unique and personal nature of the Executive’s
duties under this Agreement, neither this Agreement nor any rights or obligations under this Agreement shall be assignable by the
Executive. This Agreement shall be binding upon and inure to the benefit of the Company and its successors, assigns and legal representatives.
Any such successor or assign of the Company will be deemed substituted for the Company under the terms of this Agreement for all
purposes. For this purpose, “successor” means any person, firm, corporation or other business entity which at any time,
whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of
the Company.

 

15.          NOTICE.
For the purpose of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given (a) on the date of delivery if delivered by hand, (b) on the date of transmission, if delivered
by confirmed facsimile, (c) on the first business day following the date of deposit if delivered by guaranteed overnight delivery
service, or (d) on the fourth business day following the date delivered or mailed by United States registered or certified mail,
return receipt requested, postage prepaid, addressed as follows:

 

If to the
Company:

 

Synthetic
Biologics, Inc.

9605 Medical
Center Drive, Suite 270

Rockville,
Maryland 20850

Attention:
Board of Directors

Facsimile:
(734) 332-7878

 

and a copy
(which shall not constitute notice) shall also be sent to:

 

Gracin &
Marlow, LLP

405 Lexington
Avenue, 26th Floor

New York,
New York 10174

Attention:
Leslie Marlow, Esq.

Facsimile:
(212) 208-4657

 

If to the
Executive:

 

To the most
recent address of the Executive set forth in the personnel records of the Company.

 

or to such other address as either party
may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective
only upon receipt.

 

16.          SECTION
HEADINGS; INCONSISTENCY. The section headings used in this Agreement are included solely for convenience and shall not
affect, or be used in connection with, the interpretation of this Agreement. If there is any inconsistency between this Agreement
and any other agreement (including but not limited to any option, stock, long-term incentive or other equity award agreement),
plan, program, policy or practice (collectively, “Other Provision”) of the Company the terms of this
Agreement shall control over such Other Provision.

 

    11

     

    

 

17.          SEVERABILITY.
The provisions of this Agreement shall be deemed severable and the invalidity of unenforceability of any provision shall not affect
the validity or enforceability of the other provisions hereof.

 

18.          COUNTERPARTS.
This Agreement may be executed in counterparts, each of which shall be deemed to be an original but all of which together will
constitute one and the same instruments. One or more counterparts of this Agreement may be delivered by facsimile, with the intention
that delivery by such means shall have the same effect as delivery of an original counterpart thereof.

 

19.           SECTION
409A.

 

(a)       Notwithstanding
anything to the contrary herein, the following provisions apply to the extent severance benefits provided herein are subject to
Section 409A of the Internal Revenue Code (the “Code”) and the regulations and other guidance thereunder
and any state law of similar effect (collectively “Section 409A”). Severance benefits shall not commence
until the Executive has a “separation from service” (as defined under Treasury Regulation Section 1.409A-1(h), without
regard to any alternative definition thereunder, a “separation from service”). Each installment of severance benefits
is a separate “payment” for purposes of Treas. Reg. Section 1.409A-2(b)(2)(i), and the severance benefits are intended
to satisfy the exemptions from application of Section 409A provided under Treasury Regulations Sections 1.409A-1(b)(4) and 1.409A-1(b)(9).
However, if such exemptions are not available and the Executive is, upon separation from service, a “specified employee”
for purposes of Section 409A, then, solely to the extent necessary to avoid adverse personal tax consequences under Section 409A,
the timing of the severance benefits payments shall be delayed until the earlier of (i) six (6) months and one day after the Executive’s
separation from service, or (ii) the Executive’s death. The parties acknowledge that the exemptions from application of Section
409A to severance benefits are fact specific, and any later amendment of this Agreement to alter the timing, amount or conditions
that will trigger payment of severance benefits may preclude the ability of severance benefits provided under this Agreement to
qualify for an exemption.

 

(b)       It
is intended that this Agreement shall comply with the requirements of Section 409A, and any ambiguity contained herein shall be
interpreted in such manner so as to avoid adverse personal tax consequences under Section 409A. Notwithstanding the foregoing,
the Company shall in no event be obligated to indemnify the Executive for any taxes or interest that may be assessed by the Internal
Revenue Service pursuant to Section 409A of the Code to payments made pursuant to this Agreement.

 

20.          SECTION
4999 EXCISE TAX.

 

(a)       If
any payments, rights or benefits (whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement of
the Executive with the Company or any person affiliated with the Company) (the “Payments”) received or
to be received by the Executive will be subject to the tax (the “Excise Tax”) imposed by Section 4999
of the Code (or any similar tax that may hereafter be imposed), then, except as set forth in Section 20(b) below, the Company shall
pay to the Executive an amount in addition to the Payments (the “Gross-Up Payment”) as calculated below.
The Gross Up Payment shall be in an amount such that, after deduction of any Excise Tax on the Payments and any federal, state
and local income and employment tax and Excise Tax on the Gross Up Payment, but before deduction for any federal, state or local
income and employment tax on the Payments, the net amount retained by the Executive shall be equal to the Payments.

 

    12

     

    

 

(b)       The
process for calculating the Excise Tax, determining the amount of any Gross-Up Payment and other procedures relating to this Section
20, including the time period for making the Gross-Up Payment, are set forth in Appendix A attached hereto. For purposes
of making the determinations and calculations required herein, the Accounting Firm (as defined in Appendix A) may
rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code, provided that
the Accounting Firm shall make such determinations and calculations on the basis of “substantial authority” (within
the meaning of Section 6662 of the Code) and the Company shall use reasonable efforts to cause the Accounting Firm to provide opinions
to that effect to both the Company and Executive.

 

21.          REPRESENTATIONS.
The Executive represents and warrants to the Company that the Executive has the legal right to enter into this Agreement and to
perform all of the obligations on the Executive’s part to be performed hereunder in accordance with its terms and that the
Executive is not a party to any agreement or understanding, written or oral, which could prevent the Executive from entering into
this Agreement or performing all of the Executive’s obligations hereunder. The Executive further represents and warrants
that he has been advised to consult with an attorney and that he has been represented by the attorney of his choosing during the
negotiation of this Agreement, that he has consulted with his attorney before executing this Agreement, that he has carefully read
and fully understand all of the provisions of this Agreement and that he is voluntarily entering into this Agreement.

 

22.          WITHHOLDING.
The Company may withhold from any and all amounts payable under this Agreement such federal, state and local taxes as may be required
to be withheld pursuant to any applicable law or regulation.

 

23.          SURVIVAL.
The respective obligations of, and benefits afforded to, the Company and the Executive which by their express terms or clear intent
survive termination of the Executive’s employment with the Company, including, without limitation, the provisions of Section
8 and Sections 10 through 29, inclusive of this Agreement, will survive termination of the Executive’s employment with the
Company, and will remain in full force and effect according to their terms.

 

24.          AGREEMENT
OF THE PARTIES. The language used in this Agreement will be deemed to be the language chosen by the parties hereto to express
their mutual intent, and no rule of strict construction will be applied against any party hereto. No agreements or representations,
oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly
set forth in this Agreement. Neither the Executive nor the Company shall be entitled to any presumption in connection with any
determination made hereunder in connection with any arbitration, judicial or administrative proceeding relating to or arising under
this Agreement.

 

    13

     

    

 

25.          INTEGRATION.
This Agreement, together with the Confidentiality Agreement and the Grant Agreements, contains the complete, final and exclusive
agreement of the parties relating to the terms and conditions of the Executive’s employment and the termination of the Executive’s
employment, and supersedes all prior and contemporaneous oral and written employment agreements or arrangements between the parties,
including but not limited to the Prior Employment Agreement. The Executive acknowledges and agrees that the Company has fully satisfied,
and has no further obligations to the Executive arising under, or relating to, the Prior Employment Agreement or any other employment
or consulting arrangement or understanding or otherwise.

 

26.          AMENDMENT.
This Agreement cannot be amended or modified except by a written agreement signed by the Executive and a duly authorized officer
of the Company.

 

27.          WAIVER.
No term, covenant or condition of this Agreement or any breach thereof shall be deemed waived, except with the written consent
of the party against whom the wavier is claimed, and any waiver or any such term, covenant, condition or breach shall not be deemed
to be a waiver of any preceding or succeeding breach of the same or any other term, covenant, condition or breach.

 

28.          CHOICE
OF LAW. This Agreement shall be construed and interpreted in accordance with the internal laws of the State of Delaware
without regard to its conflict of laws principles.

 

29.           DISPUTE
RESOLUTION. To ensure the rapid and economical resolution of disputes that may arise in connection with the Executive’s
employment with the Company, the Executive and the Company both agree that any and all disputes, claims, or causes of action,
in law or equity, including but not limited to statutory claims, arising from or relating to the enforcement, breach, performance,
or interpretation of this Agreement, the Executive’s employment with the Company, or the termination of the Executive’s
employment from the Company, will be resolved pursuant to the Federal Arbitration Act, 9 U.S.C. §1-16, and to the fullest
extent permitted by law, by final, binding and confidential arbitration conducted in Delaware by JAMS, Inc. (“JAMS”)
or its successors. Both the Executive and the Company acknowledge that by agreeing to this arbitration procedure, each waives
the right to resolve any such dispute through a trial by jury or judge or administrative proceeding.  Any such arbitration
proceeding will be governed by JAMS’ then applicable rules and procedures for employment disputes, which can be found at
http://www.jamsadr.com/rules-clauses/, and which will be provided
to the Executive upon request. In any such proceeding, the arbitrator shall: (i) have the authority to compel adequate discovery
for the resolution of the dispute and to award such relief as would otherwise be permitted by law; and (ii) issue a written arbitration
decision including the arbitrator’s essential findings and conclusions and a statement of the award. The Executive and the
Company each shall be entitled to all rights and remedies that either would be entitled to pursue in a court of law; provided,
however, that in no event shall the arbitrator be empowered to hear or determine any class or collective claim of any type.
Nothing in this Agreement is intended to prevent either the Company or the Executive from obtaining injunctive relief in court
to prevent irreparable harm pending the conclusion of any such arbitration pursuant to applicable law. The Company shall pay all
filing fees in excess of those which would be required if the dispute were decided in a court of law, and shall pay the arbitrator’s
fees and any other fees or costs unique to arbitration. Notwithstanding the foregoing, nothing in this Section 29 shall prevent
the Company from seeking and obtaining a judicial junction in a court of competent jurisdiction to enforce a violation of Section
8 (and the Agreement referenced in Section 8) or 9 of this Agreement. Executive hereby agrees to waive a jury and filing of a
bond for any such action by the Company.

    14

     

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement, effective as of the date first written above.

 

	 	SYNTHETIC BIOLOGICS, INC.
	 	 	 
	 	By:  	/s/ Jeffrey Kraws
	 	Name:	 Jeffrey Kraws
	 	Title: 	Chairman of the Board
	 	 	 
	 	Date:	December 6, 2018
	 	 	 
	 	/s/ Steven A. Shallcross
	 	Steven A. Shallcross
	 	 	 
	 	Date:	December 6, 2018

 

    15

     

    

 

APPENDIX A

 

TAX GROSS-UP PAYMENT RULES AND PROCEDURES

 

1.            Subject
to Paragraph 3 below, all determinations required to be made under Section 20 of this Agreement, including whether a Gross-Up Payment
is required and the amount of such Gross-Up Payment, shall be made by an accounting firm (the “Accounting Firm”)
selected in accordance with Paragraph 2 below. The Company shall use reasonable efforts to cause the Accounting Firm to provide
detailed supporting calculations both to the Company and Executive within 15 business days before the event that results in the
potential for an excise tax liability for the Executive, which could include but is not limited to a Change in Control and the
subsequent vesting of any cash payments or awards, or the Executive’s termination of employment, or such earlier time as
is required by the Company. The initial Gross-Up Payment, if any, as determined pursuant to this Paragraph 1, shall be paid on
the Executive’s behalf to the applicable taxing authorities by no later than the date the Executive is required to remit
the taxes to such taxing authority. If the Accounting Firm determines that no Excise Tax is payable to the Executive, the Company
shall use reasonable efforts to cause the Accounting Firm to furnish the Executive with a written report indicating that he has
substantial authority not to report any Excise Tax on his federal income tax return. Any determination by the Accounting Firm shall
be binding upon the Company and Executive. As a result of the uncertainty in the application of Section 4999 of the Code at the
time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been
made by the Company should have been made (“Underpayment”), consistent with the calculations required
to be made hereunder. In the event that the Company exhausts its remedies pursuant to Paragraph 3 below and the Executive thereafter
is required to make a payment or additional payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment
that has occurred and any such Underpayment, increased by all applicable interest and penalties associated with the Underpayment,
shall be promptly paid by the Company to or for the benefit of the Executive. For purposes of determining the amount of the Gross-Up
Payment, the Executive shall be deemed to pay federal income tax at the highest marginal rate of federal income taxation in the
calendar year in which the Gross-Up Payment is to be made and state and local income taxes on earned income at the highest marginal
rate of taxation in the state and locality of the Executive’s residence on the Effective Date of Termination, net of the
maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes.

 

2.            The
Accounting Firm shall be a public accounting firm proposed by the Company and agreed upon by the Executive. If the Executive and
the Company cannot agree on the firm to serve as the Accounting Firm within ten (10) days after the date on which the Company proposed
to the Executive a public accounting firm to serve in such capacity, then the Executive and the Company shall each select one accounting
firm and those two firms shall jointly select the accounting firm to serve as the Accounting Firm within ten (10) days after being
requested by the Company and the Executive to make such selection. The Company shall pay the fees of the Accounting Firm.

 

    16

     

    

 

3.           The
Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the
payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no later than fifteen
(15) business days after the Executive knows of such claim and shall apprise the Company of the nature of such claim and the date
on which such claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of the period ending
on the date that any payment of taxes with respect to such claim is due or the thirty (30) day period following the date on which
the Executive gives such notice to the Company, whichever period is shorter. If the Company notifies the Executive in writing prior
to the expiration of such period that it desires to contest such claim, the Executive shall (i) give the Company any information
reasonably requested by the Company relating to such claim, (ii) take such action in connection with contesting such claim as the
Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with
respect to such claim by an attorney reasonably selected by the Company, (iii) cooperate with the Company in good faith in order
effectively to contest such claim, and (iv) permit the Company to participate in any proceedings relating to such claim; provided,
however, that the Company shall bear and pay directly all costs and expenses (including attorneys’ fees and any additional
interest and penalties) incurred in connection with such contest and shall indemnify and hold the Executive harmless, on an after-tax
basis, for any Excise Tax or income tax, including interest and penalties with respect thereto, imposed as a result of such representation
and payment of costs and expenses. Without limitation of the foregoing provisions of this Paragraph 3, the Company shall control
all proceedings taken in connection with such contest and, at its sole option, may pursue or forego any and all administrative
appeals, proceedings, hearings and conferences with the taxing authority in respect to such claim and may, at its sole option,
either direct the Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and the
Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction
and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs the
Executive to pay such claim and sue for a refund, the Company shall advance the amount of such payment to Executive, on an interest-free
basis and shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax and income tax, including
interest or penalties with respect thereto, imposed with respect to such advance or with respect to any imputed income with respect
to such advance; and further provided that any extension of the statute of limitations relating to payment of taxes for
the taxable year of the Executive with respect to which such contested amount is claimed to be due is limited solely to such contested
amount. Furthermore, the Company’s control of the contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and the Executive shall be entitled to settle or contest, as the case may be, any other issue raised
by the Internal Revenue Service or any other authority.

 

4.            If,
after the receipt by the Executive of an amount advanced by the Company pursuant to Paragraph 3 above, the Executive becomes entitled
to receive any refund with respect to such claim, the Executive shall (subject to the Company’s complying with the requirements
of Paragraph 3), promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after
taxes applicable thereto).

 

    17Exhibit

[FORM OF RSU NON-BONUS AWARD NOTICE AND AGREEMENT – 2018 RETIREMENT - RESTRICTIVE COVENANTS – MR. PAUL C. REILLY]

RAYMOND JAMES FINANCIAL, INC. 
 
AMENDED AND RESTATED 2012 STOCK INCENTIVE PLAN 
 
NOTICE OF RESTRICTED STOCK UNIT AWARD
		
	Grantee’s Name and Address:
	 
 

You (the “Grantee” or “you”) have been granted an award of Restricted Stock Units (the “Award”), subject to the terms and conditions of this Notice of Restricted Stock Unit Award (the “Notice”), the Raymond James Financial, Inc. Amended and Restated 2012 Stock Incentive Plan, as amended from time to time (the “Plan”) and the Restricted Stock Unit Agreement (the “Agreement”) attached hereto, as follows.  Unless otherwise provided herein, the terms in this Notice shall have the same meaning as those defined in the Plan.
Date of Award    
Vesting Commencement Date    
Total Number of Restricted Stock 
Units Awarded (the “Units”)    
Restricted Period:
Provided that the Grantee does not incur a Separation from Service and subject to the other limitations set forth in this Notice, the Agreement and the Plan, the Units will vest in accordance with the following schedule (the “Restricted Period”):
60% of the Units subject to the Award shall vest on the third anniversary of the Date of Award.  An additional 20% of the Units subject to the Award shall vest on each of the fourth and fifth anniversaries of the Date of Award.
Notwithstanding the Plan definition of “Separation from Service,” the Grantee will also be deemed to incur a Separation from Service, and the then unvested Units shall be immediately forfeited, upon the Grantee’s change in status from Employee to Independent Contractor, or vice versa, for any reason.
In addition, the Award shall be subject to the following accelerated vesting provisions:
		
	•
	In the event of the Grantee’s death or Disability, 100% of the unvested Units subject to the Award shall vest immediately prior to the Grantee’s death or Disability.  

		
	•
	In the event of the Grantee’s Retirement, 100% of the unvested Units subject to the Award shall provisionally vest immediately prior to the Grantee’s Retirement, provided, however, that (i) no Shares shall be issuable for such accelerated Units (or any related dividend equivalents) until the date the applicable portion of the Restricted Period with respect to such Shares would have otherwise lapsed in accordance with the vesting schedule set forth above or, if later, the date provided by Section 3(c) of the Agreement (in each case, a “Retirement Settlement Date”), (ii) during the period from the Grantee’s Retirement until the applicable Retirement Settlement Date (such period, the “Restrictive Covenant Period”), the Grantee shall have satisfied the Covenant 

 

Conditions (defined below), and (iii) if the Grantee violates the Restrictive Covenants prior to the expiration of a Restrictive Covenant Period, any Shares that have not become issuable before expiration of such Restrictive Covenant Period, together with all other unissued Shares subject to the Award, shall be immediately forfeited.
For purposes of this Agreement, “Retirement” means the Grantee’s voluntary Separation from Service or involuntary Separation from Service other than for Cause from the Company or any Related Entity after attainment of age 65 or after attainment of age 60 after five (5) years of service with the Company or a Related Entity either as an Employee or Independent Contractor.
In the event of the Grantee’s Retirement, it shall be a condition to each issuance of Shares with respect to accelerated Units (the “Covenant Conditions”) that the Grantee shall have complied in full with each of the following covenants (collectively, the “Restrictive Covenants”) during the Restrictive Covenant Period preceding each such issuance:
		
	•
	Non-competition - You shall not, directly or indirectly, individually or in concert with any other person or entity, compete with the Company in the United States and in each state of the United States, whether as an employee, consultant or contractor, or as an owner, member or joint venturer in, or agent of, any business that competes with the Company.

		
	•
	Non-recruitment - You shall not, directly or indirectly, individually or in concert with any other person or entity (i) recruit, induce or attempt to recruit or induce any employee of the Company with whom you worked or otherwise had Material Contact (as defined below) during your employment to leave the employ of the Company or otherwise lessen that party’s affiliation with the Company. For purposes of this provision, you had “Material Contact” with an employee if (i) you had a supervisory relationship with the employee or (ii) you worked or communicated with the employee as part of your job duties.

		
	•
	Non-solicitation - You shall not, directly or indirectly, individually or in concert with any other person or entity, solicit, divert, take away or attempt to solicit, divert or take away any then-current or proposed client or customer of the Company with whom you had Material Contact during your employment. For purposes of this provision, you had “Material Contact” with a current or proposed client or customer if (i) you had business dealings with the current or proposed client or customer on behalf of the Company or (ii) you supervised or coordinated the dealings between the Company and the current or proposed client or customer.

		
	•
	Confidentiality - You shall not, directly or indirectly, use for yourself or any other business, or disclose to any person, any Confidential Information (as defined below), without the prior written consent of the Company, during the period that it remains confidential and nonpublic or a trade secret under applicable law (the “Confidentiality Covenant”). “Confidential Information” means all non-public information (whether a trade secret or not and whether proprietary or not) relating to the Company’s business and its customers, that the Company either treats as confidential or that is of value to the Company or important to the Company’s business and operations, including but not limited to the following specific items: trade secrets (as defined by applicable law); actual or prospective customers and customer lists; marketing strategies; sales; actual and prospective pricing and fees; products; know-how; research and development; intellectual property; information systems and software; business plans and projections; negotiations and contracts; financial or cost data; employment, compensation and personnel information; procedures and processes; and any other non-public business information regarding the Company. In addition, trade secrets will be entitled to all of the protections and benefits available under applicable law. For the avoidance of doubt, you acknowledge and agree that this Confidentiality Covenant shall in no event be interpreted to limit your general obligations of confidentiality to an employer or former employer under the Company’s Code of Business Conduct and Ethics, the common law, or 

2

pursuant to any agreement that you may otherwise enter into with the Company, all of which obligations shall remain in full force and effect.
For purposes of the Restrictive Covenants, references to the “Company” shall include the Company’s Affiliates and Related Entities.
		
	•
	In the event of a Corporate Transaction or Change in Control, the Units will be subject to the terms and conditions of Section 11 of the Plan.

For purposes of this Notice and the Agreement, the term “vest” shall mean, with respect to any Units, that the Restricted Period with respect to such Units shall expire, and that such Units shall no longer be subject to forfeiture to the Company.  If the Grantee would become vested in a fraction of a Unit, such Unit shall not vest until the Grantee becomes vested in the entire Unit.
In the event of the Grantee’s change in status from Employee or Independent Contractor to Director, Employee or Independent Contractor, as applicable, the determination of whether such change in status results in a Separation from Service for purposes of Section 409A will be determined in accordance with Section 409A.
During any authorized leave of absence, the vesting of the Units as provided in the schedule set forth above shall be suspended (to the extent permitted under Section 409A) and the duration of such suspension will parallel the duration of the leave of absence under the Company’s then effective leave of absence policy.  The Restricted Period applicable to the Units shall be extended by the length of the suspension.  Vesting of the Units shall resume upon the Grantee’s termination of the leave of absence and return to service to the Company or a Related Entity; provided, however, that if the leave of absence exceeds six (6) months, and a return to service upon expiration of such leave is not guaranteed by statute or contract, then (a) the Grantee shall be deemed to have incurred a Separation from Service on the first date following such six-month period and (b) the Grantee will forfeit the Units that are unvested on the date of such separation.  An authorized leave of absence shall include sick leave, military leave, or other bona fide leave of absence (such as temporary employment by the government).  Notwithstanding the foregoing, with respect to a leave of absence due to any medically determinable physical or mental impairment of the Grantee that can be expected to result in death or can be expected to last for a continuous period of not less than six (6) months, where such impairment causes the Grantee to be unable to perform the duties of the Grantee’s position of employment or substantially similar position of employment, a twenty-nine (29) month period of absence shall be substituted for such six (6) month period above. 
Except as otherwise provided above or in Section 11 of the Plan, vesting shall cease upon the date the Grantee incurs a Separation from Service for any reason, any unvested Units held by the Grantee (and any dividend equivalents credited in respect of such Units) immediately upon such Separation from Service shall be forfeited and deemed reconveyed to the Company and the Company shall thereafter be the legal and beneficial owner of such reconveyed Units and shall have all rights and interest in or related thereto without further action by the Grantee.
IN WITNESS WHEREOF, the Company and the Grantee have executed this Notice and agree that the Award is to be governed by the terms and conditions of this Notice, the Plan, and the Agreement.
RAYMOND JAMES FINANCIAL, INC. 

By:       
Its:      
THE GRANTEE ACKNOWLEDGES AND AGREES THAT THE UNITS SHALL VEST, IF AT ALL, ONLY DURING THE PERIOD THAT THE GRANTEE IS PROVIDING SERVICES TO THE COMPANY OR A RELATED ENTITY AND HAS NOT OTHERWISE INCURRED A SEPARATION FROM SERVICE OR AS 

3

OTHERWISE SPECIFICALLY PROVIDED HEREIN (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS AWARD OR ACQUIRING SHARES HEREUNDER).  THE GRANTEE FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS NOTICE, THE AGREEMENT, NOR IN THE PLAN, SHALL CONFER UPON THE GRANTEE ANY RIGHT WITH RESPECT TO CONTINUATION OF THE GRANTEE’S SERVICE, NOR SHALL IT INTERFERE IN ANY WAY WITH THE GRANTEE’S RIGHT TO TERMINATE THE GRANTEE’S EMPLOYMENT OR SERVICE, OR THE COMPANY’S RIGHT TO TERMINATE THE GRANTEE’S EMPLOYMENT OR SERVICE AT ANY TIME, WITH OR WITHOUT CAUSE, AND WITH OR WITHOUT NOTICE.  THE GRANTEE FURTHER ACKNOWLEDGES THAT UNLESS THE GRANTEE HAS A WRITTEN EMPLOYMENT AGREEMENT WITH THE COMPANY TO THE CONTRARY, THE GRANTEE’S EMPLOYMENT STATUS IS “AT WILL.”
Grantee Acknowledges and Agrees:
The Grantee acknowledges receipt of a copy of the Plan and the Agreement and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts the Award subject to all of the terms and provisions hereof and thereof.  The Grantee has reviewed this Notice, the Agreement and the Plan in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Notice and fully understands all provisions of this Notice, the Agreement and the Plan.  The Grantee further agrees and acknowledges that this Award is a non-elective arrangement pursuant to Section 409A.
The Grantee further acknowledges that, from time to time, the Company may be in a “blackout period” and/or subject to applicable federal securities laws that could subject the Grantee to liability for engaging in any transaction involving the sale of the Company’s Shares.  The Grantee further acknowledges and agrees that, prior to the sale of any Shares acquired under this Award, it is the Grantee’s responsibility to determine whether or not such sale of Shares will comply with the Company’s Insider Trading Policy and/or subject the Grantee to liability under insider trading rules or other applicable federal securities laws.
The Grantee understands that the Award is subject to the Grantee’s consent to access this Notice, the Agreement, the Plan and the Plan prospectus (collectively, the “Plan Documents”) in electronic form on the Company’s intranet or such other website designated by the Company and communicated to the Grantee.  By signing below and accepting the grant of the Award, the Grantee: (i) consents to access electronic copies (instead of receiving paper copies) of the Plan Documents via the Company’s intranet or such other website designated by the Company and communicated to the Grantee if and when the Company begins providing the Plan Documents electronically; (ii) represents that the Grantee has access to paper copies of the Plan Documents; and (iii) acknowledges that the Grantee is familiar with and accepts the Award subject to the terms and provisions of the Plan Documents.
The Grantee agrees that this Notice is entered into and is reasonably necessary to protect the Company’s investment in Grantee’s advancement opportunity, training and development and to protect the goodwill and other legitimate business interests of the Company. Grantee also agrees that, in consideration of the confidential information, trade secrets and training and development provided to Grantee, Grantee will abide by the restrictions set forth in this Notice, and Grantee further agrees and acknowledges that the restrictions set forth in this Notice are reasonably necessary to protect the confidential and trade secret information provided to Grantee.
The Grantee acknowledges that Grantee’s agreement to comply with the Restrictive Covenants is a material inducement to the Company to enter into the Notice and to grant the Units referenced herein. The Grantee further acknowledges that the term and scope (including the geographic scope) of the Restrictive Covenants set forth herein are fair and reasonable, and are reasonably required for the protection of the interests of the Company. The Grantee further agrees that Grantee will not, in any proceeding, assert the unreasonableness of the premises, consideration or scope of the Restrictive Covenants set forth herein. The Grantee and the Company agree that if any portion of the foregoing covenants is deemed to be unenforceable because any of the restrictions contained in this Notice are deemed too broad, the court or arbitration panel shall be authorized to provide partial enforcement of such covenants, substitute an enforceable term or otherwise modify the Notice in a manner that will enable the enforcement of the covenants to the maximum extent possible under applicable law. 

4

During your employment with the Company, you shall be required to give to the Company [insert number] days’ advance written notice of the intent to terminate your employment relationship (the “Termination Notice Period”). Your employment with the Company shall not terminate until the expiration of the Termination Notice Period, provided, however, the Company shall have the right, in its sole discretion, to relieve you of any or all of your duties and responsibilities by placing you on paid administrative leave during the Termination Notice Period and shall not be required to provide you with work or access to the Company's offices during such leave. You shall be entitled to continue to receive your salary and certain other employee benefits for the entire Termination Notice Period, regardless of whether the Company exercises its right to place you on paid administrative leave. You are prohibited from working in any capacity for yourself or any other business during the Termination Notice Period without the prior written consent of the Company. Notwithstanding the foregoing, your employment status with the Company shall at all times remain “at will.” 
The Company may, in its sole discretion, decide to deliver any Plan Documents by electronic means or request the Grantee’s consent to participate in the Plan by electronic means.  The Grantee hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system if and when such system is established and maintained by the Company or a third party designated by the Company.
The Grantee hereby agrees that all questions of interpretation and administration relating to this Notice, the Plan and the Agreement shall be resolved by the Committee in accordance with Section 10 of the Agreement.  The Grantee further agrees that, in accordance with Section 11 of the Agreement, any claim, suit, action, or proceeding arising out of or relating to the Notice, the Plan or this Agreement shall be governed by and subject to the terms and conditions of the Arbitration Agreement entered into by and between the Grantee and the Company.  The Grantee further agrees to notify the Company upon any change in his or her residence address indicated in this Notice.
IMPORTANT NOTICE:
This Award is conditioned upon the Grantee's acceptance of the provisions set forth in this Agreement within 60 days after the Agreement is presented to the Grantee for review. If the Grantee fails to accept the Award within such 60-day period, the Award shall be null and void, and the Grantee's rights in the Award shall immediately terminate without any payment of consideration by the Company.
Date:         
 Grantee’s Signature
Grant Date:             
 Grantee’s Printed Name
            
 Address
            
 City, State & Zip

5

[FORM OF RSU NON-BONUS AWARD NOTICE AND AGREEMENT – 2018 RETIREMENT - RESTRICTIVE COVENANTS – MR. PAUL C. REILLY]
RAYMOND JAMES FINANCIAL, INC. 
 
AMENDED AND RESTATED 2012 STOCK INCENTIVE PLAN 
 
RESTRICTED STOCK UNIT AGREEMENT
1.    Issuance of Units.  Raymond James Financial, Inc., a Florida corporation (the “Company”), hereby issues to the Grantee (the “Grantee”) named in the Notice of Restricted Stock Unit Award (the “Notice”) an award (the “Award”) of the Total Number of Restricted Stock Units Awarded set forth in the Notice (the “Units”), subject to the Notice, this Restricted Stock Unit Agreement (the “Agreement”) and the terms and provisions of the Raymond James Financial, Inc. Amended and Restated 2012 Stock Incentive Plan, as amended from time to time (the “Plan”), which is incorporated herein by reference.  Unless otherwise provided herein, the terms in this Agreement shall have the same meaning as those defined in the Plan.
2.    Transfer Restrictions.  The Units (and any dividend equivalents credited in respect of such Units) may not be transferred in any manner other than by will or by the laws of descent and distribution.
3.    Conversion of Units and Issuance of Shares.
(a)    General.  Subject to Sections 3(b) and 3(c), one share of Common Stock shall be issuable for each Unit subject to the Award (the “Shares”) upon vesting.  Immediately thereafter, or as soon as administratively feasible, the Company will transfer the appropriate number of Shares to the Grantee after satisfaction of any required tax or other withholding obligations.  Any fractional Unit remaining after the Award is fully vested shall be discarded and shall not be converted into a fractional Share.  Notwithstanding the foregoing, if the Award is subject to Section 409A, the relevant number of Shares shall be issued in accordance with Treasury Regulation Section 1.409A-3(d), as may be amended from time to time.
(b)    Delay of Conversion.  The conversion of the Units into the Shares under Section 3(a) above, shall be delayed in the event the Company reasonably anticipates that the issuance of the Shares would constitute a violation of federal securities laws or other Applicable Law.  If the conversion of the Units into the Shares is delayed by the provisions of this Section 3(b), the conversion of the Units into the Shares shall occur at the earliest date at which the Company reasonably anticipates issuing the Shares will not cause a violation of federal securities laws or other Applicable Law.  For purposes of this Section 3(b), the issuance of Shares that would cause inclusion in gross income or the application of any penalty provision or other provision of the Code is not considered a violation of Applicable Law.
(c)    Delay of Issuance of Shares.  To the extent necessary to comply with Section 409A(a)(2)(B)(i) of the Code (relating to payments made to certain “specified employees” of certain publicly traded companies), any Shares to which the Grantee would otherwise be entitled during the six (6) month period following the date of the Grantee’s Separation from Service will be issuable on the first business day following the expiration of such six (6) month period, unless the Grantee dies during such six (6) month period, in which case, the Shares will be issued to the Grantee’s estate as soon as practicable following his or her death. For purposes of clarity, this Section 3(c) shall not otherwise supersede the Retirement provision set forth in the Notice and, to the extent the Retirement provision applies, any Shares to which the Grantee is entitled following the expiration of the six (6) month period in the foregoing sentence will be settled in accordance therewith, provided that during the period following the date of the Grantee’s Retirement until the Retirement Settlement Date, the Grantee has satisfied the Restrictive Covenants set forth in the Notice.

4.    Dividend Equivalents.  In the event the Company declares a cash or stock dividend on its Common Stock prior to the earlier of the date the Award is settled in full or terminates, dividend equivalents will be credited in respect of any outstanding Units.  Such dividend equivalents may be paid in cash or converted as of the date the Restricted Period expires and lapses (the “Conversion Date”) into Shares, the number of which shall be determined as follows: (1) if the Company declares and pays a cash dividend, the number of additional Shares that will be issuable upon the Conversion Date shall be equal to the quotient obtained by dividing (i) the aggregate amount or value of the dividends paid with respect to that number of Shares equal to the number of Units subject to the Award as of the date or dates the dividends were paid by the Company to the Company’s shareholders by (ii) the Fair Market Value per Share on the Conversion Date, rounded down to the nearest whole Share; or (2) if the Company declares and pays a stock dividend, the number of additional Shares that will be issuable upon the Conversion Date shall be equal to the number of Shares distributed with respect to the Shares underlying the Units as of the date or dates the dividends were paid by the Company to the Company’s shareholders, rounded down to the nearest whole Share.  The dividend equivalents will be subject to all of the terms and conditions of the Award, including that the dividend equivalents will vest and become payable upon the same terms and at the same time as the Units to which they relate.
5.    Right to Shares.  Except as provided in Section 4, the Grantee shall not have any right in, to or with respect to any of the Shares (including any voting rights) issuable under the Award until the Award is settled by the issuance of such Shares to the Grantee.
6.    Recoupment Policy.  Without limiting the generality of any other provision herein regarding the Grantee’s understanding of and agreement to the terms and conditions of the Notice, the Agreement and the Plan, by signing the Notice, the Grantee specifically acknowledges that he or she has read and understands the Raymond James Financial, Inc. Compensation Recoupment Policy, as may be amended from time to time (the “Policy”), and agrees to the terms and conditions of the Policy, including but not limited to the forfeiture and recoupment provisions of Sections 2 and 3 of the Policy.
7.    Taxes.
(a)    Tax Liability.  The Grantee is ultimately liable and responsible for all taxes owed by the Grantee in connection with the Award, regardless of any action the Company or any Related Entity takes with respect to any tax withholding obligations that arise in connection with the Award.  Neither the Company nor any Related Entity makes any representation or undertaking regarding the treatment of any tax withholding in connection with any aspect of the Award, including the grant, vesting, assignment, release or cancellation of the Units, the delivery of Shares, the subsequent sale of any Shares acquired upon vesting and the receipt of any dividends or dividend equivalents.  The Company does not commit and is under no obligation to structure the Award to reduce or eliminate the Grantee’s tax liability.
(b)    Payment of Withholding Taxes.  Prior to any event in connection with the Award (e.g., vesting) that the Company determines may result in any tax withholding obligation, whether United States federal, state, local or non-U.S., including any social insurance, employment tax, payment on account or other tax-related obligation (the “Tax Withholding Obligation”), the Grantee must arrange for the satisfaction of the minimum amount of such Tax Withholding Obligation through:
(i)    Share Withholding. If permissible under Applicable Law, the Company will, at the Grantee’s election, withhold from those Shares otherwise issuable to the Grantee the whole number of Shares sufficient to satisfy the minimum applicable Tax Withholding Obligation.  The Grantee acknowledges that the withheld Shares may not be sufficient to satisfy the Grantee’s minimum Tax Withholding Obligation.  Accordingly, the Grantee agrees that, prior to any event in connection with the Award that the Company determines may result in any Tax Withholding Obligation, the Grantee must arrange for the satisfaction of any amount of the Tax Withholding Obligation that is not satisfied by the withholding of Shares described above through his or her Raymond James brokerage account. Said brokerage account shall contain sufficient funds or margin availability to satisfy the portion of the Grantee’s Tax Withholding Obligation that is not satisfied by the withholding of Shares, and the Grantee 

2

hereby authorizes and directs the Company or any Related Entity to debit his or her Raymond James brokerage account by such amount.
(ii)    By Other Means.  If the Grantee does not elect to satisfy the Tax Withholding Obligation pursuant to Section 7(b)(i) above or Share withholding is not permissible under Applicable Law, the Grantee will arrange for the satisfaction of the Tax Withholding Obligation through his or her Raymond James brokerage account. Said brokerage account shall contain sufficient funds or margin availability to satisfy the Grantee’s Tax Withholding Obligation, and the Grantee hereby authorizes and directs the Company or any Related Entity to debit his or her Raymond James brokerage account by such amount.
8.    Entire Agreement; Governing Law.  The Notice, the Plan and this Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Grantee with respect to the subject matter hereof, and, subject to Section 16, may not be modified adversely to the Grantee’s interest except by means of a writing signed by the Company and the Grantee.  These agreements are to be construed in accordance with and governed by the internal laws of the State of Florida without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of Florida to the rights and duties of the parties.  Should any provision of the Notice or this Agreement be determined to be illegal or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable.
9.    Construction.  The captions used in the Notice and this Agreement are inserted for convenience and shall not be deemed a part of the Award for construction or interpretation.  Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular.  Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise.
10.    Administration and Interpretation.  Any question or dispute regarding the administration or interpretation of the Notice, the Plan or this Agreement shall be submitted by the Grantee or by the Company to the Committee.  The resolution of such question or dispute by the Committee shall be final and binding on all persons.
11.    Arbitration Agreement.  The Company, the Grantee, and the Grantee’s assignees pursuant to Section 2 (the “parties”) agree that any claim, suit, action, or proceeding arising out of or relating to the Notice, the Plan or this Agreement shall be governed by and subject to the terms and conditions of the Arbitration Agreement entered into by and between the Grantee and the Company.
12.    Notices.  Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery, upon deposit for delivery by an internationally recognized express mail courier service or upon deposit in the United States mail by certified mail (if the parties are within the United States), with postage and fees prepaid, addressed to the other party at its address as shown in these instruments, or to such other address as such party may designate in writing from time to time to the other party.
13.    Nature of Award.  In accepting the Award, the Grantee acknowledges and agrees that:
(a)    the Plan is established voluntarily by the Company, it is discretionary in nature, and it may be modified, amended, suspended or terminated by the Company at any time, unless otherwise provided in the Plan and this Agreement;
(b)    the Award is voluntary and occasional and does not create any contractual or other right to receive future awards of Units, or benefits in lieu of Units, even if Units have been awarded repeatedly in the past;
(c)    all decisions with respect to future awards, if any, will be at the sole discretion of the Company;

3

(d)    the Grantee’s participation in the Plan shall not create a right to any employment with the Grantee’s employer and shall not interfere with the ability of the Company or the employer to terminate the Grantee’s employment relationship, if any, at any time;
(e)    in the event that the Grantee is not an employee of the Company or any Related Entity, the Award and the Grantee’s participation in the Plan will not be interpreted to form an employment or service contract or relationship with the Company or any Related Entity;
(f)    the future value of the underlying Shares is unknown and cannot be predicted with certainty;
(g)    in consideration of the Award, no claim or entitlement to compensation or damages shall arise from termination of the Award or diminution in value of the Award or Shares acquired upon vesting of the Award, resulting from the Grantee’s termination by the Company or any Related Entity (for any reason whatsoever and whether or not in breach of local labor laws) and in consideration of the grant of the Award, the Grantee irrevocably releases the Company and any Related Entity from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by signing the Notice, the Grantee shall be deemed irrevocably to have waived his or her right to pursue or seek remedy for any such claim or entitlement;
(h)    in the event of the Grantee’s Separation from Service (whether or not in breach of local labor laws), the Grantee’s right to receive Awards under the Plan and to vest in such Awards, if any, will terminate effective as of the date that the Grantee is no longer providing services and will not be extended by any notice period mandated under local law (e.g., providing services would not include a period of “garden leave” or similar period pursuant to local law); furthermore, in the event of the Grantee’s Separation from Service (whether or not in breach of local labor laws), the Committee shall have the exclusive discretion to determine when the Grantee is no longer providing services for purposes of this Award;
(i)    the Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Grantee’s participation in the Plan or the Grantee’s acquisition or sale of the underlying Shares; and
(j)    the Grantee is hereby advised to consult with the Grantee’s own personal tax, legal and financial advisers regarding the Grantee’s participation in the Plan before taking any action related to the Plan.
14.    Data Privacy.
(a)    The Grantee hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of the Grantee’s personal data as described in the Notice and this Agreement by and among, as applicable, the Grantee’s employer, the Company and any Related Entity for the exclusive purpose of implementing, administering and managing the Grantee’s participation in the Plan.
(b)    The Grantee understands that the Company and the Grantee’s employer may hold certain personal information about the Grantee, including, but not limited to, the Grantee’s name, home address and telephone number, date of birth, social insurance or other identification number, salary, nationality, job title, any Shares or directorships held in the Company, details of all Units or any other entitlement to Shares awarded, canceled, vested, unvested or outstanding in the Grantee’s favor, for the exclusive purpose of implementing, administering and managing the Plan (“Data”).
(c)    The Grantee understands that Data will be transferred to any third party assisting the Company with the implementation, administration and management of the Plan.  The Grantee understands that the recipients of the Data may be located in the Grantee’s country, or elsewhere, and that the recipients’ country may have different data privacy laws and protections than the Grantee’s country.  The Grantee understands that the Grantee may request a list with the names and addresses of any potential recipients of the Data by contacting the 

4

Grantee’s local human resources representative.  The Grantee authorizes the Company and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing the Grantee’s participation in the Plan.  The Grantee understands that Data will be held only as long as is necessary to implement, administer and manage the Grantee’s participation in the Plan.  The Grantee understands that the Grantee may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing the Grantee’s local human resources representative.  The Grantee understands, however, that refusal or withdrawal of consent may affect the Grantee’s ability to participate in the Plan.  For more information on the consequences of the Grantee’s refusal to consent or withdrawal of consent, the Grantee understands that the Grantee may contact the Grantee’s local human resources representative.
15.    Language.  If the Grantee has received this Agreement or any other document related to the Plan translated into a language other than English and if the translated version is different than the English version, the English version will control, unless otherwise prescribed by Applicable Law.
16.    Amendment and Delay to Meet the Requirements of Section 409A.  The Grantee acknowledges that the Company, in the exercise of its sole discretion and without the consent of the Grantee, may amend or modify this Agreement in any manner and delay the issuance of any Shares issuable pursuant to this Agreement to the minimum extent necessary to meet the requirements of Section 409A as the Company deems appropriate or advisable.  In addition, the Company makes no representation that the Award will comply with Section 409A and makes no undertaking to prevent Section 409A from applying to the Award or to mitigate its effects on any deferrals or payments made in respect of the Units.  The Grantee is encouraged to consult a tax adviser regarding the potential impact of Section 409A.
END OF AGREEMENT

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00290-of-00352.parquet"}]]