Document:

klxe_ex_1010

		
			Exhibit 10.10
		

		
			 
		

		
			KLX Energy Services Holdings, Inc.
		

		
			1300 Corporate Center Way
		

		
			Wellington, FL 33414
		

		
			 
		

		
			September 14, 2018
		

		
			 
		

		
			Mr. Thomas P. McCaffrey
		

		
			Senior Vice President and Chief Financial Officer
		

		
			1300 Corporate Center Way
		

		
			Wellington, FL 33414
		

		
			 
		

		
			Re:         Terms of Employment
		

		
			 
		

		
			Dear Mr. McCaffrey:
		

		
			 
		

		
			This letter agreement confirms the terms and conditions of your employment with KLX Energy Services Holdings, Inc. (the Company) as set forth below:
		

		
			 
		

		
			Start Date:  September 14, 2018.
		

		
			 
		

		
			Title and Reporting:  During the term of your employment with the Company, you will serve as Senior Vice President and Chief Financial Officer of the Company and its subsidiaries, and you will report directly to the Company’s Chief Executive Officer.
		

		
			 
		

		
			Duties and Responsibilities:  You will have the duties and responsibilities that are normally associated with the position described above.  In addition, you are hereby expressly permitted to continue to serve as an employee, executive officer, director or consultant of KLX Inc.
		

		
			 
		

		
			Cash Compensation:  During the period of your employment with the Company, the Company will pay you a cash base salary at the annual rate of one dollar ($1) in accordance with the usual payroll practices of the Company and subject to any applicable withholdings and deductions.  In addition, during the period of your employment with the Company, you may receive cash incentive compensation in the discretion of the Compensation Committee of the Company’s Board of Directors (the Committee), but you will not have any contractual entitlement to receive any such cash incentive compensation.
		

		
			 
		

		
			Incentive Equity:  Promptly following completion of the Company’s spin-off from KLX Inc., the Company will grant you a restricted stock award on the common stock of the Company pursuant to the Company’s Long-Term Incentive Plan (the LTIP) (i) representing three percent (3%) of the Company’s common stock on a fully diluted basis as of the effective date of the Company’s spin-off from KLX Inc., (ii) to become vested in four (4) equal annual installments on each of the first four (4) anniversaries of the effective date of the Company’s spin-off from KLX Inc., subject to your continued employment or other service with the Company on each applicable vesting date (and subject to the following clause (iii)), (iii) to become fully vested (A) upon an involuntary termination of your employment by the Company, (B) upon your death or “Disability” (as defined in the LTIP), (C) upon your voluntary retirement from the Company, subject to the consent of the Committee, or (D) upon the occurrence of a “Change in Control” (as defined in the LTIP) of the Company, and (iv) to be subject to such other terms and conditions as are set forth in the form of restricted stock award agreement as set forth on Exhibit A hereto.  You will also be considered to receive additional equity or other long-term incentive awards from the Company in the future.  The level of such participation, if any, will be determined in the sole discretion of the Company’s Board of Directors (or the Committee) from time to time.
		

		
			 
		

		
			
		

		
			

		 

 

		

		
			 
		

		
			Monthly Automobile Allowance:  During the period of your employment with the Company, you will receive either an automobile owned or leased by the Company or a monthly automobile allowance, as reasonably determined by the Company, which automobile or allowance will be at least equivalent (i.e., the same make and model, or equivalent value thereof) to that which KLX Inc. is currently providing to you.  To the extent that the Company elects to provide a monthly automobile allowance, such allowance will be paid in accordance with Company policy, but in any event, no later than on a monthly basis in arrears.
		

		
			 
		

		
			Employee Benefits, Vacation and Business Expenses:  Except to the extent equivalent benefits are provided by KLX Inc. or its successors or affiliates, during the period of your employment with the Company:  (i) you will be eligible to participate in all health, welfare, life insurance and retirement plans of the Company, and reimbursement of financial and estate planning costs and expenses, and (ii) you will be entitled to all rights and benefits pursuant to the Company’s travel policy, including, without limitation, personal and business use of the Company’s corporate aircraft.  You also will be entitled to annual paid time off in accordance with the Company’s policy on accrual and use generally applicable to employees of the Company from time to time; provided that your prior employment and service with each of B/E Aerospace, Inc. and KLX Inc. will be taken into account with respect to your annual paid time off entitlement.  Finally, upon presentation of reasonable substantiation and documentation, you will be reimbursed for all out-of-pocket business expenses incurred and paid by you during your employment with the Company and in connection with the performance of your duties hereunder in accordance with Company policy.
		

		
			 
		

		
			Indemnification; Directors’ and Officers’ Liability Insurance:  Both during and after the period of your service with the Company, regardless of the reason for termination, the Company hereby agrees to indemnify you and hold you harmless to the maximum extent permitted by applicable law against and in respect of any and all actions, suits, proceedings, investigations, claims, demands, judgments, costs, expenses (including reasonable attorney’s fees), losses, and damages resulting from your performance of your duties and obligations with the Company hereunder.  The Company will advance to you as incurred any costs and expenses (including attorney’s fees) incurred in the defense of any such action, suit, proceeding or investigation, subject to any limitation pursuant to applicable law.  The Company will cover you under directors’ and officers’ liability insurance both during and, while potential liability exists, after the term of your service with the Company in the same amount and to the same extent as the Company covers its other active officers and directors.  The foregoing obligations will survive the termination of your service with the Company.
		

		
			 
		

		
			Proprietary Rights Agreement; Code of Conduct:  Contemporaneously with the execution of this letter agreement, you will enter into the Proprietary Rights Agreement regarding certain obligations relating to business, confidential and/or proprietary information of the Company in the form attached as Exhibit B hereto.  You also acknowledge and agree that, during the period of your employment with the Company and thereafter, as applicable, you will be subject to the Company’s Code of Conduct and other employment policies, as may be amended from time to time.
		

		
			 
		

		
			At-Will Employment:  Your employment with the Company will be “at-will.”  You may resign at any time with or without notice for any (or no) reason.  The Company may terminate your employment at any time, upon at least twelve (12) months’ prior written notice, for any (or no) reason.  You will not have any contractual right to severance benefits in connection with any termination of your employment with the Company, except for the accelerated vesting of the incentive equity award contemplated in this letter agreement, or except as may be otherwise provided in any severance plan or policy generally applying to employees of the Company, or as may be otherwise determined by the Committee in its sole discretion.
		

		
			 
		

		
			
		

		
			

		 

		

			2

		

 

		

		
			 
		

		
			Governing Law:  This letter agreement will be governed by, and construed under and in accordance with, the internal laws of the State of Florida, without regard to the choice of law principles thereof, except that all matters related to the LTIP and any equity awards granted thereunder, will be governed by the internal laws of the State of Delaware, without regard to the choice of law principles thereof.
		

		
			 
		

		
			Entire Agreement:  This letter agreement constitutes the entire agreement between you and the Company with respect to the subject matter hereof and supersedes any and all prior agreements or understandings between you and the Company with respect to the subject matter hereof, whether written or oral.  This letter agreement may be amended or modified only by a written instrument executed by you and the Company.
		

		
			 
		

		
			 
		

		
			[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
		

		
			 
		

		
			 
		

		
			

		 

		

			3

		

 

		

		
			 
		

			
					
						 

					
					
						Very truly yours,

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						KLX ENERGY SERVICES HOLDINGS, INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Amin J. Khoury

				
	
					
						 

					
					
						 

					
					
						Name: Amin J. Khoury

				
	
					
						 

					
					
						 

					
					
						Title: Chairman, CEO and President

				

		
			 
		

		
			The above terms and conditions accurately reflect our understanding regarding the terms and conditions of my employment with the Company, and I hereby confirm my agreement to the same.
		

		
			 
		

		
			 
		

			
					
						Dated:  September 14, 2018

					
					
						/s/ Thomas P. McCaffrey

				
	
					
						 

					
					
						Thomas P. McCaffrey

				

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

		

		
			EXHIBIT A
		

		
			 
		

		
			RESTRICTED STOCK AWARD AGREEMENT
		

		
			 
		

		
			 
		

		
			

		 

		

			A-1

		

 

		

		
			 
		

		
			KLX ENERGY SERVICES HOLDINGS, INC. LONG‐TERM INCENTIVE PLAN
		

		
			RESTRICTED STOCK AWARD AGREEMENT
		

		
			THIS RESTRICTED STOCK AWARD AGREEMENT (the “Award Agreement”) is made effective as of [], 2018 (the “Date of Grant”) by KLX Energy Services Holdings, Inc., a Delaware corporation (the “Company”), for the benefit of Thomas P. McCaffrey (the “Participant”).  Capitalized terms not otherwise defined herein shall have the same meanings as in the KLX Energy Services Holdings, Inc. Long‐Term Incentive Plan (the “Plan”).
		

		
			WHEREAS, the Company desires to grant the Restricted Stock provided for herein to the Participant pursuant to the Plan and the terms and conditions set forth herein;
		

		
			NOW THEREFORE, the Restricted Stock is hereby granted, subject to the following terms and conditions:
		

		
			1.            Grant of the Award.  Subject to the provisions of this Award Agreement and the Plan, the Company hereby grants to the Participant, an aggregate of <# Shares>1 restricted shares of Common Stock (the “Restricted Stock”), subject to adjustment as set forth in the Plan.
		

		
			2.            Incorporation of Plan.  The Company has previously provided the Participant with a copy of the Plan.  This Award Agreement and the Restricted Stock shall be subject to the Plan, the terms of which are incorporated herein by reference, and in the event of any conflict or inconsistency between the Plan and this Award Agreement, the Plan shall govern.  Defined terms used herein without definition shall have the meanings ascribed thereto in the Plan.
		

		
			3.            Vesting Schedule.  Unless previously vested or canceled in accordance with the provisions of the Plan or this Award Agreement, subject to the Participant’s continued employment or other service with the Company or its subsidiaries on each applicable vesting date (except as otherwise provided herein), one fourth (1/4th) of the shares of Restricted Stock shall vest on each of the first, second, third and fourth anniversaries of the Date of Grant and shall no longer be subject to cancellation pursuant to Section 4 or the transfer restrictions set forth in Section 5.
		

		
			4.            Accelerated Vesting.  Subject to the following sentence and consistent with the terms and conditions set forth in the Incentive Equity provision of that certain employment letter, by and between the Participant and the Company, dated as of [], 2018 (the “Employment Letter”), if, prior to the vesting of all shares of Restricted Stock hereunder, (A) the Participant’s service with the Company is:  (i) involuntarily terminated by the Company for any reason, (ii) voluntarily terminated by the Participant due to the Participant’s retirement from the Company, with the express consent of the Committee, (iii) terminated due to death or Disability or (B) a Change in Control occurs while the Participant remains in the continued service of the Company, then, in each case, all of the unvested shares of Restricted Stock shall vest immediately as of the date of such termination or Change in Control, as applicable, and shall no longer be subject to cancellation or the transfer restrictions set forth in Section 5.  The Participant and the Company agree to sign a mutual waiver and release of claims agreement, effective as of the date of termination, as a condition to the accelerated vesting of all then-unvested shares of the Participant’s Restricted Stock described in Section 4(A), substantially in the form attached hereto as Exhibit A (the “Mutual Waiver and Separation Agreement”).  For the avoidance of doubt, in the event that the Participant becomes a consultant or director of the Company following termination of the Participant’s employment with the Company, no termination of service shall be deemed to occur for purposes of the continued vesting of the Restricted Stock hereunder until such time as the Participant is no longer an employee, a consultant or a director of the Company.
		

		

		
			1          Number of restricted shares to represent three percent (3%) of the Company’s common stock on a fully diluted basis as of the effective date of the Company’s spin-off from KLX Inc.
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			 
		

		
			5.            Nontransferability of Restricted Stock.  Unless otherwise determined by the Committee, the Restricted Stock may not be transferred, pledged, alienated, assigned or otherwise attorned other than by last will and testament or by the laws of descent and distribution or pursuant to a domestic relations order, as the case may be; provided, however, that the Committee may, subject to such terms and conditions as it shall specify, permit the transfer of the Restricted Stock, including, without limitation, for no consideration to a charitable institution or a Permitted Transferee.  Any shares of Restricted Stock transferred to a charitable institution may not be further transferable without the Committee’s approval and any shares of Restricted Stock transferred to a Permitted Transferee shall be further transferable only by last will and testament or the laws of descent and distribution or, for no consideration, to another Permitted Transferee of the Participant.
		

		
			6.            Rights as a Stockholder.  The Participant shall have, with respect to the Restricted Stock, all the rights of a stockholder of the Company, including, if applicable, the right to vote the Restricted Stock and to receive any dividends or other distributions, subject to the restrictions set forth in the Plan and this Award Agreement.
		

		
			7.            Dividends and Distributions.  Any cash, Common Stock or other securities of the Company or other consideration received by the Participant as a result of a distribution to holders of Restricted Stock or as a dividend on the Restricted Stock shall be subject to the same restrictions as the Restricted Stock, and all references to Restricted Stock hereunder shall be deemed to include such cash, Common Stock or other securities or consideration.
		

		
			8.            Legend on Certificates.  The Committee may cause a legend or legends to be put on certificates representing the Common Stock underlying the Restricted Stock to make appropriate reference to such restrictions as the Committee may deem advisable under the Plan or as may be required by the rules, regulations, and other requirements of the Securities and Exchange Commission, any exchange that lists the Common Stock, and any applicable federal or state laws.
		

		
			9.            Conditions to Delivery of Common Stock Certificates.  The Company shall not be required to deliver any certificate or certificates for shares of Common Stock pursuant to this Agreement prior to fulfillment of all of the following conditions:
		

		
			(a)          The obtaining of any approval or other clearance from any state or federal governmental agency which the Committee determines to be necessary or advisable; and
		

		
			(b)          The lapse of such reasonable period of time as the Committee may from time to time establish for reasons of administrative convenience.
		

		
			10.          Physical Custody.  The Restricted Stock may be issued in certificate form or electronically in “book entry”.  The Secretary of the Company or such other representative as the Committee may appoint shall retain physical custody of each certificate representing Restricted Stock until all of the restrictions imposed under this Award Agreement with respect to the shares evidenced by such certificate expire or are removed.  In no event shall the Participant retain physical custody of any certificates representing unvested Restricted Stock assigned to the Participant.
		

		
			11.          No Entitlements.
		

		
			(a)          No Right to Continued Service.  This award is not an employment or other service agreement, and nothing in this Award Agreement or the Plan shall (i) alter the Participant’s status as an “at‐will” employee of the Company, (ii) be construed as guaranteeing the Participant’s service with the Company or as giving the Participant any right to continue in the service of the Company during any period
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			 
		

		
			or (iii) be construed as giving the Participant any right to be reemployed by the Company following any termination of service.
		

		
			(b)          No Right to Future Awards.  This award of Restricted Stock and all other equity‐based awards under the Plan are discretionary.  This award does not confer on the Participant any right or entitlement to receive another award of Restricted Stock or any other equity‐based award at any time in the future or in respect of any future period, except as otherwise may be provided in the discretion of the Committee.
		

		
			(c)          No Effect on Future Compensation.  The Company has made this award of Restricted Stock to the Participant in its sole discretion.  This award does not confer on the Participant any right or entitlement to receive compensation in any specific amount for any future fiscal year, and does not diminish in any way the Company’s discretion to determine the amount, if any, of the Participant’s compensation.  In addition, this award of Restricted Stock will not be taken into account in determining any other service‐related rights the Participant may have, such as rights to any pension pay.
		

		
			12.          Taxes and Withholding.  No later than the date as of which an amount with respect to the Restricted Stock first becomes includable in the gross income of the Participant for applicable income tax purposes, appropriate arrangements satisfactory to the Committee must be made regarding payment of any federal, state or local taxes of any kind required by law to be withheld with respect to such amount.  Unless otherwise determined by the Committee, in accordance with rules and procedures established by the Committee, the minimum required withholding obligations may be settled in Common Stock, including Common Stock that is part of the award that gives rise to the withholding requirement.  The obligations of the Company to deliver the certificates for shares of Common Stock under this Award Agreement shall be conditional upon such payment or arrangements and the Company shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the Participant, including, without limitation, by withholding shares of Common Stock to be delivered upon vesting.
		

		
			13.          Section 83(b) Election.  If, within 30 days following the Date of Grant, the Participant makes an election under Section 83(b) of the Code, or any successor section thereto, to be taxed with respect to all or any portion of the Restricted Stock as of the date of transfer of the Restricted Stock rather than as of the date or dates upon which the Participant would otherwise be taxable under Section 83(a) of the Code, the Committee may require the Participant to deliver a copy of such election to the Company immediately after filing such election with the Internal Revenue Service.
		

		
			14.          Securities Laws.  In connection with the grant or vesting of the Restricted Stock, the Committee may require such written representations, warranties and agreements as the Committee may reasonably request in order to comply with applicable securities laws or with this Award Agreement.
		

		
			15.          General Provisions.
		

		
			(a)          Notices.  Any notice necessary under this Award Agreement shall be addressed to the Company in care of its Secretary at the principal executive office of the Company and to the Participant at the address appearing in the records of the Company for the Participant or to either party at such other address as either party hereto may hereafter designate in writing to the other.  Notwithstanding the foregoing, the Company may deliver notices to the Participant by means of email or other electronic means that are generally used for employee communications.  Any such notice shall be deemed effective upon receipt thereof by the addressee.
		

		
			(b)          Headings.  The headings of sections and subsections are included solely for convenience of reference and shall not affect the meaning of the provisions of this Award Agreement.
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			 
		

		
			(c)          Entire Agreement.  This Award Agreement, the Employment Letter, the Mutual Waiver and Separation Agreement and the Plan constitute the entire agreement with regard to the subject matter hereof.  They supersede all other agreements, representations or understandings (whether oral or written and whether express or implied) that relate to the subject matter hereof.
		

		
			(d)          Amendments.  The Board or the Committee shall have the power to alter, amend, modify or terminate the Plan or this Award Agreement at any time; provided,  however, that no such termination, amendment or modification may adversely affect the Participant’s rights under this Award Agreement without the Participant’s consent.  Any amendment, modification or termination shall, upon adoption, become and be binding on all persons affected thereby without requirement for consent or other action with respect thereto by any such person.
		

		
			(e)          Successor.  Except as otherwise provided herein, this Award Agreement shall be binding upon and shall inure to the benefit of any successor or successors of the Company, and to any Permitted Transferee pursuant to Section 5.
		

		
			(f)           Choice of Law.  Except as to matters of federal law, this Award Agreement and all actions taken thereunder shall be governed by and construed in accordance with the laws of the State of Delaware (other than its conflict of law rules).
		

		
			[Remainder of Page Intentionally Left Blank]
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			 
		

		
			IN WITNESS WHEREOF, the Company has executed this Award Agreement as of the date first written above.
		

			
					
						 

					
					
						KLX ENERGY SERVICES HOLDINGS, INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						PARTICIPANT

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Thomas P. McCaffrey

				

		
			 
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			 
		

		
			EXHIBIT A
		

		
			Form of Mutual Waiver Agreement
		

		
			SEPARATION AGREEMENT AND MUTUAL RELEASE
		

		
			This Separation Agreement and Mutual Release (the “Agreement”), is made as of ______ __, 20___, by and between KLX Energy Services Holdings, Inc., a Delaware corporation (the “Company”) and Thomas P. McCaffrey (“Employee”), for the purpose of memorializing the terms and conditions of the Employee’s departure from the Company’s employment.
		

		
			Now, therefore, in consideration of the sum of one dollar ($1.00) and the mutual promises, agreements and covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, (the “Settlement Consideration”), the parties hereto, intending to be legally bound, hereby agree as follows:
		

		
			1.            Termination; Employment Letter.  Effective _________, 20__, Employee’s employment with the Company was terminated.  Upon Employee’s termination, Employee and the Company shall each have those respective surviving rights, obligations and liabilities described in that certain Employment Letter, dated as of [], by and between Employee and the Company (the “Employment Letter”) and that certain Restricted Stock Award Agreement, dated as of [], by and between Employee and the Company (the “Restricted Stock Agreement”).
		

		
			 
		

		
			2.            Non-Released Claims.
		

		
			 
		

		
			(a)          Employee Non-Released Claims.  It is explicitly agreed, understood and intended that the general release of claims provided for in this Agreement shall not include or constitute a waiver of the Company’s, its agent, representative or designee’s obligations to Employee (i) that are specified in the Employment Letter as surviving the termination of Employee’s employment, (ii) that arise out of or from respondeat superior principles, (iii) for claims for indemnification and defense under any organizational documents, agreement, insurance policy, or at law or in equity concerning either the Company, its subsidiaries, affiliates, directors, officers or employees, (iii) concerning any deferred compensation plan, 401(k) plan, equity plan or retirement plan and (iv) any claims not waivable under applicable law, collectively, the “Employee Non-Released Company Claims”.
		

		
			 
		

		
			(b)          Company Non-Released Claims.  It is explicitly agreed, understood and intended that the general release of claims provided for in this Agreement shall not include or constitute a waiver of (i) the Employee’s obligations to the Company concerning the Company’s confidential information and proprietary rights that survive Employee’s termination of employment, including those specified in that certain Proprietary Rights Agreement, dated as of [], 2018, by and between Employee and the Company (the “Proprietary Rights Agreement”) (ii) any claim of the Company for fraud based on willful and intentional acts or omissions of Employee, other than those taken in good faith and in a manner that Employee believed to be in or not opposed to the interests of the Company, proximately causing a financial restatement by the Company and (iii) any claims not waivable by the Company under applicable law, collectively, the “Company Non-Released Employee Claims”.
		

		
			 
		

		
			3.            General Release in Favor of the Company:  Employee, for himself and for his heirs, executors, administrators, trustees, legal representatives and assigns (collectively, the “Releasers”), hereby forever releases and discharges the Company, its Board of Directors, and any of its past, present, or future parent corporations, subsidiaries, divisions, affiliates, officers, directors, agents, trustees, administrators, attorneys, employees, employee benefit and/or pension plans or funds (including qualified and non-qualified plans or funds), successors and/or assigns and any of its or their past, present or future parent corporations, subsidiaries, divisions, affiliates, officers, directors, agents, trustees, administrators, attorneys, employees, employee benefit and/or pension plans or funds (including qualified and non-qualified plans or funds), successors and/or assigns (whether acting as agents for the Company or in their individual capacities) (collectively, the “Releasees”) from any and all claims, demands, causes of action, and liabilities of any kind whatsoever (upon any legal or equitable theory, whether contractual, common-law, statutory, federal, state, local, or otherwise), whether known or unknown, by reason of any act, omission, transaction or occurrence which Releasers ever had, now have or hereafter can, shall or may have against Releasees up to and including the date of the execution of this Agreement, except for the Employee Non-Released Company Claims.  Without limiting the generality of the foregoing, Releasers hereby release and discharge Releasees from:
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			 
		

		
			(a)          any and all claims for backpay, frontpay, minimum wages, overtime compensation, bonus payments, benefits, reimbursement for expenses, or compensation of any kind (or the value thereof), and/or for liquidated damages or punitive damages (under any applicable statute or at common law);
		

		
			(b)          any and all claims, relating to Employee’s employment by the Company, the terms and conditions of such employment, employee benefits related to Employee’s employment, the termination of Employee’s employment, and/or any of the events relating directly or indirectly to or surrounding such termination;
		

		
			(c)          any and all claims of discrimination, harassment, whistle blowing or retaliation in employment (whether based on federal, state or local law, statutory or decisional), including without limitation, all claims under the Age Discrimination in Employment Act of 1967, as amended, Title VII of the Civil Rights Act of 1964, as amended, the Americans with Disabilities Act, the Civil Rights Act of 1991, the Civil Rights Act of 1866, 42 USC §§ 1981-86, as amended, the Equal Pay Act, the Fair Labor Standards Act, the Family and Medical Leave Act, the Employee Retirement Income Security Act, the Florida Civil Rights Act of 1992, the Florida Whistle-Blower Law (Fla. Stat. § 448.101 et seq.), the Florida Equal Pay Act, and waivable rights under the Florida Constitution;
		

		
			(d)          any and all claims under any contract, whether express or implied;
		

		
			(e)          any and all claims for unintentional or intentional torts, for emotional distress and for pain and suffering;
		

		
			(f)           any and all claims for violation of any statutory or administrative rules, regulations or codes;
		

		
			(g)          any and all claims for attorneys’ fees, costs, disbursements, wages, bonuses, benefits, vacation and/or the like;
		

		
			which Releasers ever had, now have or hereafter can, shall or may have against Releasees for, upon or by reason of any act, omission, transaction or occurrence up to and including the date of the execution of this Agreement, except for the Employee Non-Released Company Claims.
		

		
			4.            General Release in Favor of Employee.  The Releasees, and each of them, hereby release Releasers, and each of them, from all claims or causes of action whatsoever, known or unknown, including any and all claims of the common law of the State of Florida, including but not limited to breach of contract (whether written or oral), promissory estoppel, defamation, unjust enrichment, or claims for attorneys’ fees and costs and all claims which were alleged or could have been alleged against the Employee which arose from the beginning of the world to the date of this Agreement, except for the Company Non-Released Employee Claims.
		

		
			5.            Reserved.
		

		
			6.            Covenants not to Sue.
		

		
			(a)          Employee Covenant not to Sue.  Employee represents and warrants that to date, he has not filed any lawsuit, action, complaint or charge of any kind with any federal, state, or county court or administrative or public agency against the Company or any other Releasee.  Without in any way limiting the generality of the foregoing, Employee hereby covenants not to sue or to assert, prosecute, or maintain, directly or indirectly, in any form, any claim or cause of action against any person or entity being released pursuant to this Agreement with respect to any matter, cause, omission, act, or thing whatsoever, occurring in whole or in part on or at any time prior to the date of this Agreement, except for the Employee Non-Released Company Claims.  Employee agrees that he will not seek or accept any award or settlement from any source or proceeding with respect to any claim or right waived in this Agreement.
		

		
			(b)          Company Covenant not to Sue.  The Company represents and warrants that to date, it has not filed any lawsuit, action, complaint or charge of any kind with any federal, state, or county court or administrative or public agency against Employee or any other Releaser.  Without in any way limiting the generality of the foregoing, the Company hereby covenants not to sue or to assert, prosecute, or maintain, directly or indirectly, in any form, any claim or cause of action against any person or entity being released pursuant to this Agreement with respect to any matter, cause, omission, act, or thing whatsoever, occurring in whole or in part on or at any time
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			 
		

		
			prior to the date of this Agreement, except for the Company Non-Released Employee Claims.  The Company agrees that it will not seek or accept any award or settlement from any source or proceeding with respect to any claim or right waived in this Agreement.
		

		
			7.            No Admission.  The making of this Agreement is not intended, and shall not be construed, as an admission that the Company or any of the Releasees, has violated any federal, state or local law (statutory or decisional), ordinance or regulation, breached any contract or committed any wrongdoing whatsoever.
		

		
			8.            Effectiveness.  This Agreement shall not become effective until the eighth day following Employee’s signing of this Agreement (“Effective Date”) and Employee may at any time prior to the Effective Date revoke this Agreement by giving notice in writing of such revocation to:
		

		
			KLX Energy Services Holdings, Inc.
		

		
			1300 Corporate Center Way,
		

		
			Wellington, FL 33414
		

		
			Attn: General Counsel
		

		
			 
		

		
			In the event that Employee revokes this Agreement prior to the eighth day after his execution thereof, this Agreement, and the promises contained herein, shall automatically be deemed null and void.
		

		
			9.            Employee Acknowledgement.  Employee acknowledges that he has been advised in writing to consult with an attorney before signing this Agreement, and that Employee has been afforded the opportunity to consider the terms of this Agreement for twenty-one (21) days prior to its execution.  Employee further acknowledges that he has read this Agreement in its entirety, that he fully understands all of its terms and their significance, that he has signed it voluntarily and of Employee’s own free will, and that Employee intends to abide by its provisions without exception.
		

		
			10.          Severability.  If any provision of this Agreement is held by a court of competent jurisdiction to be illegal, void or unenforceable, such provision shall have no effect, however, the remaining provisions shall be enforced to the maximum extent possible.
		

		
			11.          Entire Agreement.  This Agreement, the Restricted Stock Agreement, the Proprietary Rights Agreement and the Employment Letter, taken together, constitute the complete understanding between the parties and supersedes all such prior agreements between the parties and may not be changed orally.  Employee acknowledges that neither the Company nor any representative of the Company has made any representation or promises to Employee other than as set forth herein or therein.  No other promises or agreements shall be binding unless in writing and signed by the parties.
		

		
			12.          General Provisions.
		

		
			(a)          Governing Law; Jurisdiction; Venue.  This Agreement shall be enforced, governed and interpreted by the laws of the State of Florida without regard to Florida’s conflict of laws principles. Any controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be settled in a court of competent jurisdiction in the State of Florida in Palm Beach County.  Each party consents to the jurisdiction of such Florida court in any such civil action or legal proceeding and waives any objection to the laying of venue in such Florida court.
		

		
			(b)          Prevailing Party.  In the event of any litigation, dispute or contest arising from a breach of this Agreement, the prevailing party shall be entitled to recover from the non-prevailing party all reasonable costs incurred in connection with such litigation, dispute or contest, including without limitation, reasonable attorneys’ fees, disbursement and costs, and experts’ fees and costs.
		

		
			(c)          Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed as an original, but all of which together shall constitute one and the same instrument.
		

		
			(d)          Binding Effect.  This Agreement is binding upon, and shall inure to the benefit of, the parties, the Releasers and the Releasees and their respective heirs, executors, administrators, successors and assigns.
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			 
		

		
			(e)          Interpretation.  Should any provision of this Agreement require interpretation or construction, it is agreed by the parties that the entity interpreting or construing this Agreement shall not apply a presumption that the provisions hereof shall be more strictly construed against one party who prepared the Agreement, it being agreed that all parties have participated in the preparation of all provisions of this Agreement.
		

		
			(f)           Defense of Trade Secrets Act.  Notwithstanding anything to the contrary in this Agreement or otherwise, Employee understands and acknowledges that the Company has informed Employee that an individual shall not be held criminally or civilly liable under any federal or state trade secret law for (i) the disclosure of a trade secret that is made in confidence to a federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law or (ii) the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding if such filing is made under seal.  Additionally, notwithstanding anything to the contrary in this Agreement or otherwise, Employee understands and acknowledges that the Company has informed Employee that an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to a court order.
		

		
			(g)          Whistleblowing.  Nothing in this Agreement or any other agreement between Employee and the Company shall be interpreted to limit or interfere with Employee’s right to report good faith suspected violations of law to applicable government agencies, including the Equal Employment Opportunity Commission, National Labor Relation Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other applicable federal, state or local governmental agency, in accordance with the provisions of any “whistleblower” or similar provisions of local, state or federal law.  Employee may report such suspected violations of law, even if such action would require Employee to share the Company’s proprietary information or trade secrets with the government agency, provided that any such information is protected to the maximum extent permissible and any such information constituting trade secrets is filed only under seal in connection with any court proceeding.  Lastly, nothing in this Agreement or any other agreement between Employee and the Company will be interpreted to prohibit Employee from collecting any financial incentives in connection with making such reports or require Employee to notify or obtain approval by the Company prior to making such reports to a government agency.
		

		
			 
		

		
			[Signature Page Follows]
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			 
		

		
			IN WITNESS WHEREOF, the parties hereto have executed and delivered this Separation Agreement and Mutual Release as of the date first written above.
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						    

					
					
						KLX ENERGY SERVICES HOLDINGS, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:

					
					
						 

				
	
					
						Thomas P. McCaffrey

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						PRINT NAME:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						TITLE:

				
	
					
						STATE OF FLORIDA

					
					
						)

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						) ss.

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						COUNTY OF ___________

					
					
						)

					
					
						 

				

		
			 
		

		
			 
		

		
			I HEREBY CERTIFY, that on this day, before me, an officer duly authorized in the State and County aforesaid to take acknowledgments, personally appeared Thomas P. McCaffrey, to me known to be the person described in and who executed the foregoing instrument, and acknowledged to and before me that he/she executed the same.  This individual is personally known to me or has produced a ______________________ as identification and did take an oath.
		

		
			 
		

		
			 
		

		
			SWORN TO AND SUBSCRIBED before me this _____ day of _________, 20__.
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						 

					
					
						Notary Public

				

		
			 
		

		
			 
		

		
			My Commission Expires:
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			 
		

		
			EXHIBIT B
		

		
			 
		

		
			PROPRIETARY RIGHTS AGREEMENT
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			 
		

		
			KLX ENERGY SERVICES HOLDINGS, INC. PROPRIETARY RIGHTS AGREEMENT
		

		
			This Proprietary Rights Agreement (“Agreement”) is intended to set forth in writing my responsibility to KLX Energy Services Holdings, Inc. and/or any of its subsidiaries or affiliated businesses (collectively, the “Company”) during my employment, consultancy, and/or tenure as an independent contractor with the Company and thereafter.  I recognize that the Company is engaged in a continuous program of research, development and production respecting its business, present and future.  As part of my employment, consultancy, and/or tenure as an independent contractor with the Company, I have certain obligations relating to business, confidential and/or proprietary information of the Company.
		

		
			I acknowledge and agree that:
		

		
			1.            Agreement and Effective Date
		

		
			This Agreement shall be effective on, the first day of my employment, consultancy, and/or tenure as an independent contractor with the Company and shall continue in effect throughout my employment, consultancy, and/or tenure as an independent contractor (the “Agreement Period”).  As an inducement to, and in consideration of, my acceptance and/or continuation of employment, consultancy, and/or tenure as an independent contractor with the Company, and the Company’s compensating me for services and extending to me certain other benefits of a compensatory nature, but without any obligation on the Company’s part to continue such employment, compensation or benefits for any specified period whatsoever, I agree to protect, safeguard and maintain the integrity and confidentiality of the Company’s valuable assets and legitimate business interests in accordance with the terms and conditions set forth in this Agreement.
		

		
			2.           Confidentiality
		

		
			2.1.         Permitted Use.  I will maintain in confidence and will not disclose or use, either during or after the Agreement Period, any “Proprietary Information”, whether or not in written form, except to the extent required to perform my duties on behalf of the Company.
		

		
			2.2.         Definition of Proprietary Information.  As used in this Agreement, Proprietary Information means all of the following materials and information that I use, receive, have access to, conceive or develop or have used, received, conceived or developed, in whole or in part, in connection with my employment, consultancy and/or tenure as an independent contractor with the Company:
		

		
			(i)           Written materials of the Company;
		

		
			The names and information relating to customers and prospective customers of the Company and/or persons, firms, corporations or other entities with whom the Company has provided goods or
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			 
		

		
			services at any time, including contact persons, addresses and phone numbers, their characteristics and preferences and types of services provided to or received from those customers and prospective customers;
		

		
			(ii)          The terms of various agreements between the Company and any third parties, including without limitation, the terms of customer agreements, vendor or supplier agreements, lease agreements, advertising agreements, fee arrangements, terms of dealing and the like;
		

		
			(iii)         Any data or database, trading algorithms or processes, or other information compiled by the Company, including, but not limited to, customer lists, customer information, information concerning the Company, or any business in which the Company is engaged or contemplates becoming engaged, any company with which the Company engages in business, any customer, prospective customer or other person, firm or corporation to whom or which the Company has provided goods or services or to whom or which any employee of the Company has provided goods or services on behalf of the Company, or any compilation, analysis, evaluation or report concerning or deriving from any data or database, or any other information;
		

		
			(iv)         All policies, procedures, strategies and techniques regarding the services performed by the Company or regarding the training, marketing and sales of the Company, either oral or written.  The Company’s internal corporate policies and practices related to its services, price lists, fee arrangements and terms of dealings with customers or potential customers or vendors.  Information relating to formulas, records, research and development data, trade secrets, processes, other methods of doing business, forecasts and business and marketing plans;
		

		
			(v)          Any other information, data, know-how or knowledge of a confidential or proprietary nature observed, used, received, conceived or developed by me in connection with my employment, consultancy, and/or tenure as an independent contractor by the Company, including and not limited to the Company’s methodologies, price strategies, price lists, costs and quantities sold, financial and sales information, including, but not limited to, the Company’s financial condition, business interests, initiatives, objectives, plans or strategies; internal information regarding personnel identity, skills, compensation, organizational charts, budgets or costs of individual departments, and the compensation paid to those working for or who provide services to the Company; and performance of investments, funds or portfolio companies,
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			 
		

		
			including any “track record” or other financial performance information or results;
		

		
			(vi)         All other non-public information regarding the amount and nature of the capital and assets owned or controlled by, or net worth of, the Company and/or any of the Company’s shareholders, members, partners, employees or investors; the investments made, directly or indirectly, by the Company (including, but not limited to, any partnerships, corporations or other entities in which the Company may invest and the assets which any of those entities acquires); the expected or actual rates of return or holding periods of any investment by the Company; the respective interest in any investment of any of its shareholders, members, partners or investors or the manner in which those interests are held; the identities of the other persons or entities who participate in any investment made by the Company; and financial statements, projections, budgets and market information;
		

		
			(vii)        All discoveries, software (including, without limitation, both source code and object code), models, drawings, photographs, specifications, trademarks, formulas, patterns, devices, compilations and all other proprietary know-how and technology, whether or not patentable or copyrightable, and all copies and tangible embodiments of any of the foregoing, and that have been or will be created for the Company by me, whether alone or with others;
		

		
			(viii)       The Company’s inventions, products, research and development, production processes, manufacturing and engineering processes, machines and equipment, finances, customers, marketing, and production and future business plans, information belonging to customers or suppliers of the Company disclosed incidental to my employment, consultancy, and/or tenure as an independent contractor and any other information which is identified as confidential by the Company; and
		

		
			(ix)         “Trade Secrets”, which shall include, but not be limited to, information regarding formulas, processes or methods that: (a) derive independent economic value, actual or potential, from not being generally known to or readily ascertainable by proper means, by other persons who can obtain economic value from its disclosure or use; and (b) is the subject of reasonable efforts by the Company to maintain its secrecy.  “Trade Secrets” shall also include all other information or data that qualifies as a trade secret under applicable law.
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			 
		

		
			3.           Trade Secrets
		

		
			 
		

		
			3.1.         Use and Return of Proprietary Information and Trade Secrets:
		

		
			(i)           I agree that, upon termination of my employment (if applicable) and/or tenure as an independent contractor with the Company for any reason (regardless of whether or not the Company retains me as a consultant) or at any other time upon the Company’s request, I shall return to Company, without retaining any copies, all Proprietary Information and Trade Secrets, as well as all other Company’s documents and other materials, which are in my possession regardless of the form in which any such materials are kept;
		

		
			(ii)          I acknowledge that all documents, in hard copy or electronic form, received, created or used by me in connection with my employment, consultancy, and/or tenure as an independent contractor with the Company are and will remain the property of the Company.  I agree to return all such documents (including all copies) promptly upon the termination of my employment, consultancy, and/or tenure as an independent contractor, certify that no other documents remain, and agree that, during or after my employment, consultancy, and/or tenure as an independent contractor, I will not, under any circumstances, without the written consent of the Company, disclose those documents to anyone outside the Company or use those documents for any purpose other than the advancement of the Company’s interests;
		

		
			3.2.         Defense of Trade Secrets Act.  Notwithstanding anything to the contrary, I understand and acknowledge that the Company has informed me that an individual shall not be held criminally or civilly liable under any federal or state trade secret law for (i) the disclosure of a trade secret that is made in confidence to a federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (ii) the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding if such filing is made under seal. Additionally, notwithstanding anything to the contrary, I understand and acknowledge that the Company has informed me that an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to a court order.
		

		
			4.           No Conflicting Obligations
		

		
			Except as otherwise set forth in the Employment Letter, my performance of this Agreement does not and will not breach any agreement to keep in confidence proprietary information, knowledge or data acquired by me prior to my employment, consultancy, and/or tenure as an independent contractor with the Company.  I will not disclose, induce, or permit the Company to, either directly or indirectly, use, any confidential or
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			 
		

		
			proprietary information or material belonging to any previous employer or other person or entity.  Except as otherwise set forth in the Employment Letter, I am not a party to any other agreement that will interfere with my full compliance with this Agreement.  I will not enter into any agreement, whether written or oral, conflicting with the provisions of this Agreement.
		

		
			5.           Whistleblowing
		

		
			Nothing in this Agreement or any other agreement between you and the Company shall be interpreted to limit or interfere with your right to report good faith suspected violations of law to applicable government agencies, including the Equal Employment Opportunity Commission, National Labor Relation Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission or any other applicable federal, state or local governmental agency, in accordance with the provisions of any “whistleblower” or similar provisions of local, state or federal law.  You may report such suspected violations of law, even if such action would require you to share the Company’s Proprietary Information or Trade Secrets with the government agency, provided that any such Proprietary Information is protected to the maximum extent permissible and any such information constituting Trade Secrets is filed only under seal in connection with any court proceeding.  Lastly, nothing in this Agreement or any other agreement between you and the Company will be interpreted to prohibit you from collecting any financial incentives in connection with making such reports nor to require you to notify or obtain approval by the Company prior to making such reports to a government agency.
		

		
			6.            Survival
		

		
			Notwithstanding the termination of the Agreement Period, this Agreement shall survive such termination and continue in accordance with its terms and conditions.  Unless provided otherwise in a written contract with the Company, this Agreement does not in any way restrict my right or the right of the Company to terminate my employment, consultancy, and/or tenure as an independent contractor at any time, for any reason or for no reason.
		

		
			7.            Specific Performance
		

		
			A breach of any of the promises or agreements contained herein will result in irreparable and continuing damage to the Company for which there will be no adequate remedy at law, and the Company shall be entitled to injunctive relief and/or a decree for specific performance, and such other relief as may be proper (including monetary damages, if appropriate).
		

		
			8.           Waiver
		

		
			The waiver by the Company of a breach of any provision of this Agreement by me will not operate or be construed as a waiver of any other or subsequent breach by me.
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			 
		

		
			9.           Severability
		

		
			If any part of this Agreement is found invalid or unenforceable, that part will be amended to achieve as nearly as possible the same economic effect as the original provision and the remainder of this Agreement will remain in full force.
		

		
			10.         Governing Law
		

		
			This Agreement will be governed by and construed in accordance with the laws (other than the conflict of laws rules) of the state of Florida.
		

		
			11.         Entire Agreement
		

		
			Except for the Employment Letter (and the exhibits thereto), this Agreement constitutes the entire agreement between the parties relating to this subject matter and supersede all prior or simultaneous representations, discussions, negotiations and agreements, whether written or oral, except for prior proprietary rights agreements which shall for the period prior to the effective date of this Agreement be deemed to be in addition to, and not in lieu of, this Agreement for such prior period.  This Agreement may be amended or modified only with the written consent of both me and the Company.  No oral waiver, amendment or modification will be effective under any circumstances whatsoever.
		

		
			12.          Assignment
		

		
			This Agreement may be assigned by the Company.  I may not assign or delegate my duties under this Agreement without the Company’s prior written approval.  This Agreement shall be binding upon my hairs, successors and permitted assignees.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

 

		

		
			 
		

			
					
						Date:

					
					
						 

					
					
						    

					
					
						 

				
	
					
						 

					
					
						 

					
					
						EMPLOYEE

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						(Name)

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						(Printed Name)

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						KLX ENERGY SERVICES HOLDINGS, INC.

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						Title:Exhibit 4.1

  

  

  

  
     

    FORM OF SUBORDINATED NOTE

     

    HOWARD BANCORP, INC.

      

    

    Fixed-to-Floating Rate Subordinated Note

    due December 6, 02028

     

    

    

    Certificate No.:

     

    QIB (CUSIP / ISIN):     442496AA3

     

    THE INDEBTEDNESS EVIDENCED BY THIS SUBORDINATED NOTE (THIS “NOTE”) IS NOT A SAVINGS ACCOUNT, DEPOSIT, OR OTHER OBLIGATION OF ANY BANK OR SAVINGS ASSOCIATION, AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (THE “FDIC”) OR ANY OTHER GOVERNMENT AGENCY OR FUND.

     

    THE INDEBTEDNESS EVIDENCED BY THIS NOTE IS SUBORDINATED AND JUNIOR IN  RIGHT OF PAYMENT TO THE CLAIMS
        OF CREDITORS (OTHER THAN CREDITORS HOLDING EXISTING SUBORDINATED DEBT OR DEBT THAT BY ITS TERMS EXPRESSLY IS JUNIOR TO, OR RANKS EQUALLY IN RIGHT OF PAYMENT WITH, THIS NOTE) OF HOWARD BANCORP, INC., A MARYLAND CORPORATION (THE “ISSUER”), INCLUDING OBLIGATIONS OF THE ISSUER TO ITS GENERAL AND SECURED CREDITORS, AND IS UNSECURED. IT IS INELIGIBLE AS COLLATERAL FOR ANY EXTENSION OF CREDIT
        BY THE ISSUER OR ANY OF ITS SUBSIDIARIES. IN THE EVENT OF LIQUIDATION OF THE ISSUER, ALL CREDITORS OF THE ISSUER (OTHER THAN CREDITORS HOLDING EXISTING SUBORDINATED DEBT OR DEBT THAT BY ITS TERMS EXPRESSLY IS JUNIOR TO, OR RANKS EQUALLY IN RIGHT OF
        PAYMENT WITH, THIS NOTE) SHALL BE ENTITLED TO BE PAID IN FULL WITH SUCH INTEREST AS MAY BE PROVIDED BY LAW BEFORE ANY PAYMENT SHALL BE MADE ON ACCOUNT OF PRINCIPAL OF OR INTEREST ON THIS NOTE. AFTER PAYMENT IN FULL OF ALL SUMS OWING TO SUCH
        CREDITORS OF THE ISSUER, THE HOLDER OF THIS NOTE SHALL BE ENTITLED TO BE PAID FROM THE REMAINING ASSETS OF THE ISSUER THE UNPAID PRINCIPAL AMOUNT OF THIS NOTE PLUS ACCRUED AND UNPAID INTEREST THEREON BEFORE ANY PAYMENT OR OTHER DISTRIBUTION,
        WHETHER IN CASH, PROPERTY, OR OTHERWISE, SHALL BE MADE ON ACCOUNT OF ANY SHARES OF CAPITAL STOCK OF THE ISSUER OR ANY OBLIGATION THAT BY ITS TERMS EXPRESSLY IS JUNIOR TO THIS NOTE. THIS NOTE IS NOT GUARANTEED BY THE ISSUER’S SUBSIDIARIES, INCLUDING
        HOWARD BANK, A MARYLAND-CHARTERED TRUST COMPANY WITH COMMERCIAL BANKING POWERS UNDER TITLE 3 OF THE FINANCIAL INSTITUTIONS ARTICLE OF THE ANNOTATED CODE OF MARYLAND (THE “BANK”)

        AND, THEREFORE, THE NOTE IS STRUCTURALLY SUBORDINATE TO THE EXISTING AND FUTURE INDEBTEDNESS OF SUCH SUBSIDIARIES, INCLUDING WITHOUT LIMITATION THE BANK’S DEPOSITORS, LIABILITIES TO GENERAL CREDITORS, AND LIABILITIES ARISING DURING THE ORDINARY
        COURSE OF BUSINESS OR OTHERWISE.

     

    THIS NOTE WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN MINIMUM DENOMINATIONS OF $1,000 AND MULTIPLES
        OF $1,000 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF THIS NOTE IN A DENOMINATION OF LESS THAN $1,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF THIS NOTE FOR
        ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF PAYMENTS ON THIS NOTE, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN THIS NOTE.

    

    

    
      1

      
        

    

     

      

    THIS IS A GLOBAL NOTE WITHIN THE MEANING OF SECTION 8 HEREOF.

    

    

    UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW
        YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATED NOTE ISSUED IN EXCHANGE FOR
        THIS NOTE OR ANY PORTION HEREOF IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
        AUTHORIZED REPRESENTATIVE OF DTC) PURSUANT TO AND IN ACCORDANCE WITH THE PROVISIONS HEREOF, ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON OTHER THAN DTC OR A NOMINEE THEREOF IS WRONGFUL INASMUCH AS THE
        REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     

    THIS NOTE MAY BE SOLD ONLY IN COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS. THE OFFER
        AND SALE OF THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS OR ANY OTHER
        APPLICABLE SECURITIES LAWS. NEITHER THIS NOTE NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED, OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
        EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE LAW.  THE NOTE REPRESENTED BY THIS INSTRUMENT MAY NOT BE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE TERMS OF THIS NOTE, AND ANY SALE OR OTHER
        TRANSFER NOT IN COMPLIANCE WITH THIS NOTE WILL BE VOID.

    

    

    CERTAIN ERISA
          CONSIDERATIONS:

     

    EACH PURCHASER AND HOLDER OF THIS NOTE, OR ANY INTEREST HEREIN, BY ITS ACCEPTANCE HEREOF OR THEREOF
        ALSO AGREES, REPRESENTS, AND WARRANTS THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN, OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”)

        (EACH A  “PLAN”), A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF ANY SUCH PLAN, OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY
        PLAN’S INVESTMENT IN THE ENTITY, OR (ii) SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE
        EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS NOTE, OR ANY INTEREST HEREIN, ARE NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE. ANY
          FIDUCIARY OF ANY PLAN WHO IS CONSIDERING THE ACQUISITION OF THIS NOTE OR ANY INTEREST HEREIN SHOULD CONSULT WITH HIS OR HER LEGAL COUNSEL PRIOR TO ACQUIRING THIS NOTE OR ANY INTEREST HEREIN.

    

    

    
      2

      
        

    

     

    Principal Amount: $25,000,000

    

    

    

    

    HOWARD BANCORP, INC.

    Fixed-to-Floating Rate Subordinated Note

    due December 6,  2028

     

    

    

    1.            Payment. Howard Bancorp, Inc., a Maryland
        corporation (the “Issuer”), for value received, hereby promises to pay to the order of Cede & Co., or its registered assigns, as nominee of The
        Depository Trust Company (“DTC”), the principal sum of twenty five million dollars (U.S.) ($25,000,000) plus accrued but unpaid interest on December 6, 2028
        (the “Maturity Date”), unless redeemed prior to such date as permitted pursuant to the terms of this Note, and to pay interest on the outstanding principal
        amount of this Note (as defined herein): (i) from and including December 6, 2018, or from and including the most recent Fixed Interest Payment Date (as defined below) to which interest has been paid or duly provided, as the case may be, to but
        excluding December 6, 2023, at the rate of 6.00% per annum (computed on the basis of a 360-day year of twelve 30-day months), payable semi-annually in arrears on June 6 and December 6 of each year (each, a “Fixed Interest Payment Date”), commencing June 6, 2019; and (ii) from and including December 6, 2023, or from and including the most recent Floating Interest Payment Date (as defined
        below) to which interest has been paid or duly provided, as the case may be, to but excluding the Maturity Date, at a rate per annum, reset quarterly, equal to Three-Month LIBOR (as defined below) determined on the Interest Rate Determination Date
        (as defined below) of the applicable Floating Rate Interest Period (as defined below) plus 302 basis points (computed on the basis of a 360-day year and the number of days actually elapsed), payable quarterly in arrears on March 6, June 6,
        September 6, and December 6 of each year (each, a “Floating Interest Payment Date,” and each Fixed Interest Payment Date or Floating Interest  Payment  Date,
        an “Interest Payment Date”), commencing December 6, 2023, until the principal hereof is paid or a sum sufficient to pay such principal has been made
        available for payment. For purposes of this Note, (x) “Floating Rate Interest Period” means each three-month period beginning on a scheduled Floating
        Interest Payment Date and (y) “Three-Month LIBOR” shall mean that rate for deposits in United States dollars for a three-month period as published by Reuters
        on Reuters Screen LIBOR03 (or such other page that may replace that page on that service or a successor service) as of 11:00 a.m., London, England, time on the date (the “Interest

            Rate Determination Date”) that is two LIBOR Business Days (as defined below) preceding the first day of such Floating Rate Interest Period (or if not so reported, then as determined by the Issuer from another recognized source or
        interbank quotation, and disclosed to the Holders (as defined herein)). Notwithstanding the foregoing, if the Three-Month LIBOR rate cannot be so determined as of an Interest Rate Determination Date for any reason, the Issuer shall select (with
        notice to each Holder) an alternative rate, including any spread adjustments thereto (the “Alternative Rate”). Issuer shall use its commercially reasonable
        judgment in determining the Alternative Rate based on that rate determined by the U.K. Financial Conduct Authority (the “FCA”) and generally being used as
        the successor to 3-month USD LIBOR; if no such successor rate has been determined by the FCA, Issuer shall use its commercially reasonable judgment in determining the Alternative Rate generally being used as the successor to 3-month USD LIBOR;
        provided, however, that, in either case, if the Issuer is notified by Holders holding a majority in principal amount of the outstanding Subordinated Notes (as defined herein) within five Business Days after the receipt by all Holders of notice of
        such Alternative Rate selection that such Holders reasonably believe that such Alternative Rate is not consistent with the successor for LIBOR, including any spread adjustments, generally used in quarterly pay floating rate obligations, then the
        Alternative Rate shall be the rate selected by the Issuer and consented to by the Holders holding a majority in principal amount of the outstanding Subordinated Notes. All references herein to “LIBOR” shall mean such Alternative Rate selected by
        the Issuer. A “LIBOR Business Day” shall mean a day on which the office of the Issuer is open for business and on which dealings in United States dollar
        deposits are carried out on the London interbank market.

     

    
      3

      
        

    

     

    

    Any payment of principal of or interest on this Fixed-to-Floating Rate
        Subordinated Note due December 6, 2028 (this “Note”) that would otherwise become due and payable on a day that is not a Business Day shall become due and
        payable on the next succeeding Business Day, with the same force and effect as if made on the date for payment of such principal or interest, and no interest shall accrue in respect of such payment for the period after such day.  The term “Business Day” means any day that is not a Saturday or Sunday and that is not a day on which banks in the State of New York or the State of Maryland are generally
        authorized or required by law or executive order to be closed.

    

    

    2.            Subordinated Notes. This Note is one of a duly
        authorized issue of notes of the Issuer designated as “Fixed-to-Floating Rate Subordinated Notes due December 6, 2028” (the “Subordinated Notes”), initially
        limited in aggregate principal amount to $25,000,000 and issued in accordance with the Issuing and Paying Agent Agreement dated as of December 6, 2018 and attached hereto as Exhibit A (the “Paying Agent Agreement”), by and between the Issuer and U.S. Bank National Association, as issuing and paying agent
        (herein called the “Paying Agent,” which term includes any successor issuing and paying agent under the Paying Agent Agreement), and reference is hereby made
        to the Paying Agent Agreement for a statement of the respective rights, limitations of rights, duties, and immunities thereunder of the Issuer and the Paying Agent and of the terms upon which the Subordinated Notes are, and are to be, authenticated
        and delivered. The holder in whose name any Subordinated Notes are registered on the Security Register (as defined herein) is referred to as a “Holder,” and
        all such Holders collectively are referred to as the “Holders.”

    

    

    3.            Subordination. The indebtedness of the Issuer
        evidenced by the Subordinated Notes, including the principal and interest on this Note, shall be subordinate and junior in right of payment to the prior payment in full of all existing claims of creditors of the Issuer, whether now outstanding or
        subsequently created, assumed, or incurred (collectively, “Senior Indebtedness”), which shall consist of: (a) the principal of (and premium, if any) and
        interest, if any, on all indebtedness of the Issuer for money borrowed, whether or not evidenced by bonds, debentures, securities, notes, or other written instruments, and including, but not limited to, all obligations to the Issuer’s general and
        secured creditors; (b) any deferred obligations of the Issuer for the payment of the purchase price of property or assets acquired other than in the ordinary course of business; (c) all obligations, contingent or otherwise, of the Issuer arising
        from off-balance sheet guarantees and direct credit substitutes, including obligations in respect of any letters of credit, bankers’ acceptances, security purchase facilities, and similar credit transactions; (d) any capital lease obligations of
        the Issuer; (e) all obligations of the Issuer associated with derivative products, including in respect of interest rate swap, cap, or other similar agreements, interest rate future or option contracts, currency swap agreements, currency future or
        option contracts, commodity contracts, and other similar arrangements; (f) all obligations of the type referred to in clauses (a) through (e) of other persons for the payment of which the Issuer is responsible or liable as obligor, guarantor, or
        otherwise; (g) all obligations of the types referred to in clauses (a) through (f) of other persons secured by a lien on any property or asset of the Issuer; and (h) any and all amendments, renewals, extensions, modifications, and deferrals of the
        indebtedness and obligations of the type referred to in clauses (a) through (g); except “Senior Indebtedness” does not include (i) the
        Subordinated Notes, (ii) any obligation that by its terms expressly is junior to, or ranks equally in right of payment with, the Subordinated Notes, or (iii) any indebtedness between the Issuer and any of its subsidiaries or Affiliates (as defined
        below). This Note is not secured by any assets of the Issuer and is not covered by a guarantee of the Issuer or any Affiliate of the Issuer. This Note is also not guaranteed by the Issuer’s subsidiaries, including the Issuer’s wholly owned
        subsidiary, Howard Bank, a Maryland-chartered trust company with commercial banking powers under Title 3 of the Financial Institutions Article of the Annotated Code of Maryland (the “Bank”) and, therefore, this Note is structurally subordinate to the existing and future indebtedness of such subsidiaries, including without limitation the Bank’s depositors, liabilities to general creditors, and
        liabilities arising during the ordinary course of business or otherwise. The term “Affiliates” means, with respect to any Person, such Person’s immediate
        family members, partners, members, or parent and subsidiary corporations, and any other Person directly or indirectly controlling, controlled by, or under common control with said Person and their respective Affiliates. “Person” means an individual, a corporation (whether or not for profit), a partnership, a limited liability company, a joint venture, an association, a trust, an unincorporated
        organization, a government or any department or agency thereof, or any other entity or organization.

     

    
      4

      
        

    

     

    

    Each Holder by accepting a Subordinated Note authorizes and directs the Paying
        Agent on its behalf to take such action as may be necessary or appropriate to acknowledge or effectuate the subordination between the Holders and the holders of Senior Indebtedness of the Issuer as provided in this Section 3 and appoints the Paying Agent as attorney-in-fact for any and all such purposes.

    

    

    In the event of any bankruptcy, insolvency, dissolution, assignment for the
        benefit of creditors, reorganization, restructuring of debt, marshaling of assets and liabilities, or similar proceedings or any liquidation or winding up of or relating to the Issuer, whether voluntary or involuntary, holders of Senior
        Indebtedness shall be entitled to be paid in full (including such interest as may be provided by law) before any payment shall be made on account of the principal of or interest on the Subordinated Notes, including this Note. In the event of any
        such proceeding, after payment in full of all sums owing with respect to the Senior Indebtedness, the Holders, together with the holders of any obligations of the Issuer ranking on a parity with the Subordinated Notes, shall be entitled to be paid
        pro rata from the remaining assets of the Issuer the unpaid principal thereof (and premium, if any) and the unpaid interest thereon before any payment or other distribution, whether in cash, property, or otherwise, shall be made on account of any
        capital stock of the Issuer or any obligation of the Issuer that, by its terms, expressly is junior to the Subordinated Notes.

     

    If there shall have occurred and be continuing (a) a default in any payment with
        respect to any Senior Indebtedness or indebtedness that ranks equally in right of payment with the Subordinated Notes  or (b) an event of default with respect to any Senior Indebtedness or indebtedness that ranks equally in right of payment with
        the Subordinated Notes, as a result of which the maturity thereof is accelerated, unless and until such payment default or event of default shall have been cured or waived or shall have ceased to exist, no payments shall be made by the Issuer with
        respect to the Subordinated Notes. The provisions of this paragraph shall not apply to any payment with respect to which the immediately preceding paragraph of this Section

            3 would be applicable.

     

    Nothing herein shall act to prohibit, limit, or impede the Issuer from issuing
        additional debt of the Issuer having the same rank as the Subordinated Notes or that may be junior or senior in rank to the Subordinated Notes.

     

    4.            Merger and Sale of Assets. The Issuer shall not consolidate with or merge with or into
        another entity, except for consolidations and mergers in which the Issuer continues as the surviving entity, or convey, transfer, or lease substantially all of its properties and assets to any Person, unless:

     

    (a)            the entity formed by such consolidation or into which the Issuer is merged or the Person that acquires by conveyance or transfer or that leases substantially all of the
        properties and assets of the Issuer shall be a corporation, limited liability company, partnership, trust, association, or other legal entity organized and existing under the laws of the United States of America, any State thereof, or the District
        of Columbia and expressly assumes the due and punctual payment of the principal of and any premium and interest on the Subordinated Notes according to their terms, and the due and punctual performance of all covenants and conditions on the part of
        the Issuer to be performed or observed contained herein and in the Paying Agent Agreement; and

     

    
      5

      
        

    

    

    

    (b)            immediately after giving effect to such transaction, no Event of Default (as defined below), and no event that, after notice or lapse of time or both, would become an Event of
        Default,  shall have happened and be continuing.

    

    

    5.          Negative Covenant(s). The Issuer shall not declare or pay any dividend or make any
        distribution on the capital stock or other equity securities of the Issuer (except for (a) dividends or distributions in shares of, or options, warrants or rights to subscribe for or purchase shares of, any class of the Issuer’s capital stock; (b)
        the declaration of dividends in connection with the implementation of a shareholders’ rights plan, or the issuance of stock under any such plan in the future, or the redemption or repurchase of any such rights pursuant thereto; (c) as a result of a
        reclassification of the Issuer’s capital stock or the exchange or conversion of one class or series of the Issuer’s capital stock for another class or series of the Issuer’s capital stock; (d) the purchase of fractional interests in shares of the
        Issuer’s capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged; and (e) purchases of shares of any class of the Issuer’s capital stock related to the issuance of common
        stock or rights under any benefit plans for the Issuer’s directors, officers or employees or any of the Issuer’s dividend reinvestment plans), if either of the Issuer or the Bank is not “well capitalized” for regulatory capital purposes both
        immediately prior to the declaration of such dividend or distribution and after giving effect to the payment of such dividend or distribution.

     

    6.            Events of Default; Acceleration. Each of the following events shall constitute an “Event of Default”:

     

    (a)            the Issuer’s failure to pay any interest on any Subordinated Notes as and when such interest becomes due and payable, which failure continues
        for a period of 30 days;

     

    (b)            the Issuer’s failure to pay the principal of any Subordinated Notes as and when the same shall become due and payable, whether at the Maturity
        Date or otherwise;

     

    (c)            the Issuer materially fails to keep or perform any of its other material agreements, undertakings, obligations, or covenants under the
        Subordinated Note Purchase Agreement pursuant to which this Note was issued (the “Purchase Agreement”) or under this Note (other than as specifically
        addressed elsewhere in this Note) and such failure continues (without such default or breach having been waived in accordance with the provisions of this Note) for a period of 30 days after the Issuer has received written notice from any Holder(s)
        specifying such default or breach and requiring it to be remedied, in the event of any failure other than a failure addressed by Sections 6(a) or 6(b);

     

    (d)            a court or other governmental agency or body having jurisdiction on the premises shall enter a decree or order for the appointment of a receiver, liquidator, trustee, or other
        similar official in any bankruptcy, liquidation, insolvency, or similar proceeding with respect to the Issuer or all or substantially all of the property of
        the Issuer or for the winding up of the affairs or business of the Issuer and such decree or order shall have remained in effect for 90 days; 

     

    (e)            if, pursuant to any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution, or liquidation law or statute of
        the federal government or any state government that, by its express terms, is applicable to the Issuer, (i) any proceedings involving the Issuer are commenced by or against the Issuer, or (ii) a trustee of any substantial part of the assets of the
        Issuer is applied for or appointed, and the Issuer by any action or failure to act indicates its approval of, consent to, or acquiescence in any of the foregoing, or an order shall be entered approving the petition in such proceedings, or approving
        the application for or appointment of such trustee, and within 60 days after the entry of such order or such appointment such order or appointment is not vacated or stayed on appeal or otherwise, or shall not otherwise have ceased to continue in
        effect. Notwithstanding any cure periods provided for above, the Issuer shall, promptly upon becoming aware of any Event of Default, deliver or cause to be delivered to each Holder, at the Holder’s address shown on the Security Register (as defined
        in Section 13 below), written notice of such Event of Default, unless such Event of Default shall have been cured or waived before the giving of such notice
        as certified by the Issuer in writing; or

    

    

    
      6

      
        

    

    

    

    (f)            any certification made by the Issuer to the Holder pursuant to the Purchase Agreement or otherwise made in writing by the Issuer to the Holders
        in connection with or as contemplated by the Purchase Agreement or the Subordinated Notes shall be materially incorrect or false as of the delivery date of such certification, or any representation by the Issuer to the Holders as to the financial
        condition or credit standing of the Issuer is or proves to be materially false or misleading as of the date such representation was made; provided that no such Event of Default shall be deemed to be continuing after such time as Issuer has notified
        the Holders thereof.

     

    Unless the principal of this Note already shall have become due and payable, if
        an Event of Default set forth in subsections (d) or (e) above shall have occurred and be continuing, the Holder of this Note, by notice in writing to the Issuer, may declare the principal amount of this Note to be due and payable immediately and,
        upon any such declaration, the same shall become and shall be immediately due and payable. In such case, the Issuer hereby waives demand, presentment for payment, notice of nonpayment, notice of protest, and all other notices.

    

    

    Any time after a declaration of acceleration with respect to this Note has been
        made by the Holder thereof, such Holder, by written notice to the Issuer, may rescind and annul such declaration and its consequences (but only with respect to such Holder’s Note or portion of the Note) if: (a) the Issuer has paid (i) all overdue
        interest on all Subordinated Notes that has become due other than by such declaration of acceleration, and (ii) the principal of all Subordinated Notes that has become due other than by such declaration of acceleration and any interest thereon; and
        (b) all Events of Default with respect to the Subordinated Notes, have been cured or waived as provided in Section 7 below.

     

    7.            Waiver of Past Defaults.

     

    (a)            A Holder may, on behalf of such Holder only, waive any past default hereunder.

     

    (b)            Upon any such waiver, such default shall cease to exist, and any Event of Default arising from such default shall be deemed to have been cured
        for every purpose in respect of the Subordinated Notes held by such Holder; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon.

     

    8.            Global Notes.

     

    (a)            This Note is issued in fully registered book-entry form in global form (each, a “Global Note”) in the name of DTC as depositary (the “Depositary”).

     

    (b)            No Global Note shall be transferred except as a whole by a nominee of the Depositary to the Depositary or to another nominee of the Depositary
        or by the Depositary or such nominee to a successor to the Depositary or a nominee of such successor. A Global Note may be exchanged for a note in fully registered certificated form (each, a “Certificated Note”) in the event that (i) the Depositary has notified the Issuer that it is unwilling or unable to continue as Depositary for the Global Notes or the Depositary has ceased to be a “clearing
        agency” registered under the Securities Exchange Act of 1934, as amended, and a successor depositary is not appointed by the Issuer within 60 days thereafter, (ii) an Event of Default has occurred and is continuing with respect to the Subordinated
        Notes, or (iii) the Issuer, in its sole discretion, determines that all of the Subordinated Notes shall no longer be represented by Global Notes. Any Global Note exchanged pursuant to clause (i) or (iii) above shall be so exchanged in whole but not
        in part, while any Global Note exchanged pursuant to clause (ii) above may be exchanged in whole or from time to time in part as directed by the Depositary.

     

    
      7

      
        

    

     

    (c)            Subordinated Notes issued in exchange for a Global Note or any portion thereof shall be issued as Certificated Notes, without interest coupons,
        shall have an aggregate principal amount equal to that of such Global Note or portion thereof to be so exchanged, and shall be registered in such names and be in such authorized denominations as the Depositary or an authorized representative
        thereof shall designate. If a Global Note to be exchanged in whole is not then held by the Paying Agent as custodian for the Depositary or its nominee, such Global Note shall be surrendered by the Depositary to the office of the Paying Agent
        located at U.S. Bank National Association, Corporate Trust Services, 333 Commerce Street, Suite 800, Nashville, Tennessee 37201, Attention: Wally Jones (the “Payment
            Office”), to be so exchanged. With regard to any Global Note to be exchanged in part, either such Global Note shall be so surrendered for exchange by the Depositary or, if the Paying Agent is acting as custodian for the Depositary or
        its nominee with respect to such Global Note, the principal amount thereof shall be reduced, by an amount equal to the portion thereof to be so exchanged, by means of an appropriate adjustment made on the records of the Paying Agent.

     

    (d)            The provisions of Sections 12(b), 12(c), and 13 of the Paying Agent Agreement shall apply with respect
        to the exchange, transfer, or replacement of any Certificated Notes and are incorporated herein by reference.

     

    9.            Failure to Make Payment. Notwithstanding any cure period provided for in Section 6, in the event of failure by the Issuer to make any required payment of principal or interest on this Note (and, in the case of payment of interest,
        such failure to pay shall have continued for 30 calendar days), the Issuer will, upon demand of the Holder, pay to the Holder the amount then due and payable on this Note for principal and interest (without acceleration of this Note in any manner),
        with interest on the overdue principal and interest at the rate borne by this Note, to the extent permitted by applicable law.  If the  Issuer fails to pay such amount upon such demand, the Holder may, among other things, institute a judicial
        proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree, and may enforce the same against the Issuer and collect the amounts adjudged or decreed to be payable in the manner provided by
        law out of the property of the Issuer.

    

    

    During the continuance of an Event of Default, except as required by any
        federal or state governmental agency, the Issuer shall not (a) declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of the Issuer’s capital stock, (b) make any payment of
        principal or interest or premium, if any, on or repay, repurchase, or redeem any debt securities of the Issuer that rank equal with or junior to the Subordinated Notes, or (c) make any payments under any guarantee that ranks equal with or junior to
        the Subordinated Notes, in each case other than: (i) any dividends or distributions in shares of, or options, warrants, or rights to subscribe for or purchase shares of, any class of the Issuer’s capital stock; (ii) any declaration of a dividend in
        connection with the implementation of a shareholders’ rights plan, or the issuance of stock under any such plan in the future, or the redemption or repurchase of any such rights pursuant thereto; (iii) as a result of a reclassification of the
        Issuer’s capital stock or the exchange or conversion of one class or series of the Issuer’s capital stock for another class or series of the Issuer’s capital stock or of any class or series of the Issuer’s indebtedness for any class or series of
        the Issuer’s capital stock; (iv) the purchase of fractional interests in shares of the Issuer’s capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged; or (v) purchases of
        shares of any class of the Issuer’s capital stock related to the issuance of capital stock or rights under any benefit plans for the Issuer’s directors, officers, or employees or any of the Issuer’s dividend reinvestment plans.

    
      8

      
        

    

     

      10.  Redemption.

     

    (a)            Special Event Redemption. In the event (i) this Note (to the extent that this Note was
        previously treated as Tier 2 Capital) ceases to be deemed, or there is a material risk that this Note will, within 120 days, cease to be deemed, to be “Tier 2” capital (as defined by the Board of Governors of the Federal Reserve System (the “Federal Reserve”) (“Tier 2 Capital”)) as a result of a change in law or
        regulation by any judicial, legislative, or regulatory authority that becomes effective after the date of issuance of this Note, other than due to the limitation imposed on the capital treatment of subordinated debt during the five years
        immediately preceding the Maturity Date, (ii) of a Tax Event (as defined below), or (iii) the Issuer becomes required, or there is a material risk that the Issuer will be required, within 120 days, to register as an investment company pursuant to
        the Investment Company Act of 1940, as amended, the Issuer may redeem this Note in whole, but not in part, at any time upon giving not less than 10 days’ notice to the Holder of this Note at an amount equal to 100% of the principal amount
        outstanding plus accrued but unpaid interest thereon to but excluding the redemption date, which notice may be conditional. “Tax Event” means the receipt by
        the Issuer of an opinion of counsel to the Issuer that as a result of any amendment to, or change (including any final and adopted (or enacted) prospective change) in, the laws (or any regulations thereunder) of the United States or any political
        subdivision or taxing authority thereof or therein, or as a result of any official administrative pronouncement or judicial action or decision interpreting or applying such laws or regulations, there exists a material risk that interest payable by
        the Issuer on the Subordinated Notes is not, or within 120 days after the receipt of such opinion will not be, deductible by the Issuer, in whole or in part, for United States federal income tax purposes.

     

    (b)            Redemption on or after December 6, 2023. On or after the Interest Payment Date of
        December 6, 2023, this Note shall be redeemable by the Issuer on any Interest Payment Date, in whole at any time, or in part from time to time, at an amount equal to 100% of the outstanding principal amount to be redeemed, plus accrued but unpaid
        interest thereon to but excluding the redemption date.

     

    (c)            No Repayment at Option of Holder.  This Note shall
        not be subject to repayment at the option of the Holder, in whole or in part, prior to the Maturity Date.

     

    (d)            Regulatory Approvals. Any such redemption or prepayment shall be subject to receipt of
        any and all required federal and state regulatory approvals, including, but not limited to, the consent of the Federal Reserve. In the case of any redemption or prepayment of this Note, the Issuer will give the Holder notice not less than 30 nor
        more than 60 calendar days prior to the redemption or prepayment date as to the aggregate principal amount to be redeemed or prepaid, which notice may be conditional. Any partial redemption of the Subordinated Notes shall be made pro rata among the
        Holders based on the aggregate principal amount of Subordinated Notes held by each Holder.

     

    (e)            Effectiveness of Redemption. If notice of redemption has been duly given, and
        notwithstanding that this Note has been called for redemption but has not yet been surrendered for cancellation, on and after the date fixed for redemption, interest shall cease to accrue on the portion of this Note called for redemption, the
        portion of this Note called for redemption shall no longer be deemed outstanding, and all rights with respect to the portion of this Note called for redemption shall forthwith on such date fixed for redemption cease and terminate unless the Issuer
        shall default in the payment of the redemption price, except only the right of the Holder to receive the amount payable on such redemption, without interest.

     

    (f)            Purchase and Resale of the Subordinated Notes. Subject to any required federal and
        state regulatory approvals and the provisions of this Note, the Issuer shall have the right to purchase any of the Subordinated Notes at any time in the open market, in private transactions, or otherwise. If the Issuer purchases any Subordinated
        Notes, it may, in its discretion, hold, resell, or cancel any of the purchased Subordinated Notes.

     

    
      9

      
        

    

     

    11.            Payment Procedures. Payment of the principal and interest payable on the Maturity Date
        will be made by check, or by wire transfer in immediately available funds to a bank account in the United States designated by the Holder of this Note if such Holder shall have previously provided wire instructions to the Paying Agent, upon
        presentation and surrender of this Note at the Payment Office or at such other place or places as the Issuer shall designate by notice to the Holders as the payment office, provided that this Note is presented to the Paying Agent in time for the
        Paying Agent to make such payments in such funds in accordance with its normal procedures. Payments of interest (other than interest payable on the Maturity Date) shall be made by wire transfer in immediately available funds or check mailed to the
        Holder of this Note, as such Person’s address appears on the Security Register (as defined below) maintained by the Paying Agent. Interest payable on any Interest Payment Date shall be payable to the Holder in whose name this Note is registered at
        the close of business on the February 15, May 15, August 15, or November 15, as the case may be (whether or not a Business Day), immediately preceding such Interest Payment Date (such date being referred to herein as the “Regular Record Date”), except that interest not paid on the Interest Payment Date, if any, will be paid to the Holder in whose name this Note is registered at the close of
        business on a special record date fixed by the Issuer (a “Special Record Date”), notice of which shall be given to the Holder not less than 10 calendar days
        prior to such Special Record Date. The Regular Record Date and Special Record Date are referred to herein collectively as the “Record Dates.”  To the extent
        permitted by applicable law, interest shall accrue, at the rate at which interest accrues on the principal of this Note, on any amount of principal or interest on this Note not paid when due. All payments on this Note shall be applied first against
        interest due hereunder and then against principal due hereunder. Holder acknowledges and agrees that the payment of all or any portion of the outstanding principal amount of this Note and all interest hereon shall be pari passu in right of payment and in all other respects to the other Subordinated Notes. In the event Holder receives payments in excess of its pro rata share of the
        Issuer’s payments to the Holders, then Holder shall hold in trust all such excess payments for the benefit of the other Holders and shall pay such amounts held in trust to such other Holders upon demand by such Holders.

    

    

    12.            Form of Payment; Unclaimed Payments. Payments of principal and interest on this Note
        shall be made in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts. Any money that the Issuer pays to the Paying Agent for the purpose of making
        payments on this Note and that remains unclaimed two years after the payments were due will, at the Issuer’s request, be returned to it. After that time, the Holder of this Note can only look to the Issuer for payment on this Note.

     

    13.            Registration of Transfer; Security Register. Except as otherwise provided herein, this
        Note is transferable in whole or in part, and may be exchanged for a like aggregate principal amount of Subordinated Notes of other authorized denominations, by the Holder in person, or by his, her, or its attorney duly authorized in writing, at
        the Payment Office or at such other place or places as the Issuer shall designate by notice to the Holders of this Note as the payment office. The Paying Agent will maintain a register providing for the registration of the Subordinated Notes and
        any exchange or transfer thereof (the “Security Register”). Upon surrender or presentation of this Note for exchange or registration of transfer, the Issuer
        shall execute and deliver in exchange therefor a Subordinated Note or Subordinated Notes of like aggregate principal amount, each in a minimum denomination of $1,000 or any amount in excess thereof which is an integral multiple of $1,000 (and, in
        the absence of an opinion of counsel satisfactory to the Issuer to the contrary, bearing the restrictive legend(s) set forth hereinabove) and that is or are registered in such name or names requested by the Holder thereof. If this Note is presented
        or surrendered for registration of transfer or for exchange it shall be duly endorsed and accompanied by a written instrument of transfer in such form as is attached hereto and incorporated herein, duly executed by the Holder of this Note or his,
        her, or its attorney duly authorized in writing, with such tax identification number or other information for each Person in whose name a Subordinated Note is to be issued, and accompanied by evidence of compliance with any restrictive legend(s)
        appearing on such Subordinated Note or Subordinated Notes as the Issuer may reasonably request to comply with applicable law. No exchange or registration of transfer of this Note shall be made on or after the 15th day immediately preceding the
        Maturity Date.

    

    

    
      10

      
        

    

    

    

    14.            Charges and Transfer Taxes. No service charge (other than any cost of delivery) shall
        be imposed for any exchange or registration of transfer of this Note, but the Paying Agent or the Issuer may require the payment from the Holder of this Note of a sum sufficient to cover any stamp or other tax or governmental fee or charge that may
        be imposed in connection therewith (other than exchanges pursuant to the Paying Agent Agreement not involving any transfer) or presentation of evidence that such tax, charge, or fee has been paid.

     

    15.            Ownership. Prior to due presentment of this Note for registration of transfer, the
        Issuer may treat the Holder in whose name this Note is registered in the Security Register as the absolute owner of this Note for receiving payments of principal and interest on this Note and for all other purposes whatsoever, whether or not this
        Note be overdue, and the Issuer shall not be affected by any notice to the contrary.

     

    16.            Notices. All notices to the Issuer under this Note shall be in writing and addressed
        to the Issuer at 3301 Boston Street, Baltimore, Maryland 21224, Attention: General Counsel, or to such other address or to the attention of such other Person(s) as may be designated by the Issuer by notice to the Holder. All notices to the Holders
        shall be in writing and sent by first-class mail to each Holder at his or its address as set forth in the Security Register. Any such notice shall be effective upon receipt if received during normal business hours or, if not received during normal
        business hours, on the next Business Day. For so long as the Subordinated Notes are represented by a Global Note, any notices to Holders will be delivered to DTC as the sole Holder in accordance with its applicable policies as in effect from time
        to time.

     

    17.            Denominations. The Subordinated Notes are issuable only as fully registered notes
        without interest coupons in minimum denominations of $1,000 or any amount in excess thereof which is an integral multiple of $1,000.

    

    

    18.            Absolute and Unconditional Obligation of the Issuer. No provisions of this Note shall
        alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal and interest on this Note at the times, places, and rate, and in the coin or currency, herein prescribed.

     

      19.  Waiver and Consent; Amendment; Modification.

     

    (a)            Any consent or waiver given by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Subordinated Note
        issued upon the registration of transfer hereof or in exchange therefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.

     

    (b)            If all or any portion of the Subordinated Notes, to the extent that the Subordinated Notes are treated as Tier 2 Capital, ceases to be deemed, or there is a material risk that
        all or any portion of the Subordinated Notes will, within 120 days, cease to be deemed, to be Tier 2 Capital as a result of a change in law or regulation by any judicial, legislative, or regulatory authority that becomes effective after the
        date of issuance of the Subordinated Notes, other than due to the limitation imposed on the capital treatment of subordinated debt during the five years immediately preceding the Maturity Date, the Issuer will immediately notify the Holder of this
        Note, and thereafter the Issuer shall have the option to redeem the Subordinated Notes, in whole but not in part, in accordance with the terms of Section 10
        hereof.  If the Issuer elects to restructure the Note to qualify as Tier 2 Capital (which the Issuer shall have the right to do), the Issuer and the Holder shall work together in good faith to execute and deliver all agreements as reasonably
        necessary in order to restructure the applicable portions of the obligations evidenced by this Note to qualify as Tier 2 Capital.

     

    
      11

      
        

    

    

    

    (c)            No delay or omission of the Holder to exercise any right or remedy accruing upon any Event of Default shall impair such right or remedy or constitute a waiver of any such Event
        of Default or an acquiescence therein.

     

    (d)            Any insured depository institution that shall be a Holder of this Note or that otherwise shall have any beneficial ownership interest in this Note shall, by its acceptance of
        such Note (or beneficial interest therein), be deemed to have waived any right of offset with respect to the indebtedness evidenced thereby.

     

    (e)            Notwithstanding any other portion of this Section 19, without the consent of any
        Holders, the Issuer and the Paying Agent may make or enter into one or more amendments to or modifications of the Paying Agent Agreement or the Subordinated Notes, in form reasonably satisfactory to both the Issuer and the Paying Agent, to (i)
        evidence the succession of another entity to the Issuer and the assumption by any such successor of the obligations of the Issuer contained in the Paying Agent Agreement and in the Subordinated Notes, (ii) change or eliminate any of the provisions
        of the Paying Agent Agreement, provided that any such change or elimination shall become effective only when there is no outstanding Subordinated Note created prior to the execution of such change or elimination that is entitled to the benefit of
        such change or elimination, (iii) establish other forms or terms of the Subordinated Notes as permitted in the Paying Agent Agreement, (iv) evidence and provide for the acceptance of appointment under the Paying Agent Agreement by a successor
        Paying Agent, (v) cure any ambiguity or correct or supplement any provisions in the Paying Agent Agreement or in this Note that may be inconsistent with any other provisions herein or in the Paying Agent Agreement, or make any other provisions with
        respect to matters or questions arising herein or in the Paying Agent Agreement, provided that such action shall not adversely affect the interests of any Holder in any material respect as determined in good faith by the board of directors of the
        Issuer, (vi) modify the restrictions on and procedures for resales and other transfers of the Subordinated Notes to reflect any change in applicable law or regulation (or the interpretation thereof) or in practices relating to the resale or other
        transfer of restricted securities generally, or (vii) modify, eliminate, or add to the provisions of the Paying Agent Agreement to such extent as shall be necessary to qualify the Paying Agent Agreement (including any supplemental agreement
        thereto) under the Trust Indenture Act of 1939, as amended, or under any similar statute hereafter enacted.

     

    (f)            No waiver or amendment of any term, provision, condition, covenant or agreement herein or in the Subordinated Notes shall be effective except with the prior written consent of
        the holders of more than fifty percent (50%) in aggregate principal amount (excluding any Subordinated Notes held by Company or any of its Affiliates) of the Subordinated Notes at the time outstanding; provided, however, that without the consent of each holder of an affected
        Subordinated Note, no such amendment or waiver may:  (i) reduce the principal amount of the Subordinated Note; (ii) reduce the rate of or change the time for payment of interest on any Subordinated Note; (iii) extend the maturity of any
        Subordinated Note; (iv) change the currency in which payments of the obligations of Company under the Subordinated Notes are to be made; (v) lower the percentage of aggregate principal amount of outstanding Subordinated Notes required to approve
        any amendment of the Subordinated Notes; (vi) make any changes to Section 9 (Failure to Make Payment) of the Subordinated Notes that adversely affects the
        rights of any holder of a Subordinated Note; (vii) disproportionately and adversely affect any of the holders of the then outstanding Subordinated Notes; or (viii) amend or modify the immediately preceding subsections (i)-(vii).

     

    
      12

      
        

    

    

    

    20.            Further Issues. The Issuer may, without the consent of the Holders, create and issue
        additional notes having the same terms and conditions as the Subordinated Notes (except for the issue date and issue price) so that such additional notes shall be consolidated and form a single series with the Subordinated Notes.

     

    21.            Governing Law; Interpretation. This Note shall be governed by and construed in
        accordance with applicable federal law and the laws of the State of Maryland, without regard to conflict of laws principles of said state. This Note is intended to meet the criteria for qualification of the outstanding principal as Tier 2 Capital,
        and the terms hereof shall be interpreted in a manner to satisfy such intent.

    

    

    22.            Priority. The Subordinated Notes rank pari passu among themselves and pari passu, in the event of any insolvency,
        bankruptcy, dissolution, assignment for the benefit of creditors, reorganization, restructuring of debt, marshaling of assets and liabilities, or similar proceedings or any liquidation or winding up of the Issuer, with all other present or future
        unsecured subordinated debt obligations of the Issuer, except any unsecured subordinated debt that, pursuant to its express terms, is senior or subordinate in right of payment to the Subordinated Notes.

     

    23.            No Sinking Fund; Convertibility. This Note is not entitled to the benefit of any
        sinking fund or any compensating balance or any other funds or assets subject to a legal right of offset, as defined by applicable state law. This Note is not convertible into or exchangeable for any of the equity or other securities or assets of
        the Issuer or any of its subsidiaries.

    

    

    24.            No Recourse Against Others. This Note shall be binding upon the Issuer and its
        successors and permitted assigns. Other than the obligations, covenants and agreements to be performed hereunder by the Issuer and its successors and permitted assigns, no recourse under or upon any obligation, covenant, or agreement contained in
        this Note, or for any claim based thereon or otherwise in respect thereof, will be had against any past, present, or future stockholder, employee, officer, or director, as such, of the Issuer or of any predecessor or successor (other than any
        successor to the Issuer), either directly or through the Issuer or any predecessor or successor (other than any successor to the Issuer), under any rule of law, statute, or constitutional provision or by the enforcement of any assessment or by any
        legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance of this Note by the Holder of this Note and as part of the consideration for the issuance of this Note.

    

    

    
      13

      
        

    

    

    

    IN WITNESS WHEREOF, the undersigned has caused this Note to be duly executed and attested and its
        corporate seal to be hereunto affixed.

     

    
      	
               

            	
               

            	HOWARD BANCORP, INC.
	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	By:

            	
               

            
	
               

            	
               

            	
               

            	Mary Ann Scully
	
               

            	
               

            	
               

            	Chief Executive Officer
	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	ATTEST:	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	
               

            	
               

            	
               

            	
               

            
	 	 	 	 
	George Coffman	 	 	 
	Chief Financial Officer	 	 	 

    

     

    

    

    

    

    

    

    

    

    

     

    [Signature Page to Subordinated Note]

    

    

    
      14

      
        

    

     

    ISSUING AND PAYING AGENT
            CERTIFICATE OF AUTHENTICATION

     

    

    

    This is one of the Notes of Howard Bancorp, Inc. issued under the
        within-referenced Paying Agent Agreement:

    

    

    
      	
               

            	U.S. BANK NATIONAL ASSOCIATION,

              
	
               

            	as Issuing and Paying Agent
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	By:

            
	 	 
	
               

            	
               

            
	
               

            	Name:

            
	 	 
	
               

            	
               

            
	
               

            	Title:

            
	 	 
	
               

            	
               

            
	
               

            	Dated:

            
	 	 

    

    

    

  

  
    15

    
      

  

   
    ASSIGNMENT FORM

     

    

    

    To assign this Note, fill in the form below:

    

    

    I or we assign and transfer this Note to:

    

    

    
      

     (Print or type assignee’s name, address and zip code)

    

    

    

    

     

    
      

    (Insert assignee’s social security or tax I.D. No.)

    

    

     

    and irrevocably appoint 
        ___________________________________________  agent to transfer this Note on the books of Howard Bancorp, Inc. (the “Issuer”).  The agent may substitute another to act for him.

     

    Date:                                                                                        Your Signature:  

    __________________________

    

     

    

    

    Signature
            Guarantee:                                                            (Signature must be guaranteed)

    

    

    
      

    Sign exactly as your name appears on the other side of this Note.

     

    The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
        savings and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to Rule 17Ad-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

     

    The signatory hereto hereby certifies that it  is /  is not an Affiliate of the Issuer and that, to
        its knowledge, proposed transferee  is /  is not an Affiliate of the Issuer.

    

    

    In connection with any transfer or exchange of any of the Note(s) evidenced by this certificate
        occurring prior to the date that is one year after the later of the date of original issuance of such Note(s) and the last date, if any, on which such Note(s) were owned by the Issuer or any Affiliate of the Issuer, the undersigned confirms that
        such Note(s) are being:

     

    
      	
               

            	(1)

            	☐	acquired for the undersigned’s own account, without transfer; or
	
               

            	
               

            	
               

            	
               

            
	
               

            	(2)

            	☐	transferred to the Issuer; or
	
               

            	
               

            	
               

            	
               

            
	
               

            	(3)

            	☐	transferred pursuant to and in compliance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”); or
	
               

            	
               

            	
               

            	
               

            
	
               

            	(4)

            	☐	 transferred pursuant to an effective registration statement under the Securities Act; or
	
               

            	
               

            	
               

            	
               

            
	
               

            	(5)

            	☐	transferred pursuant to and in compliance with Regulation S under the Securities Act; or
	
               

            	
               

            	
               

            	
               

            
	
               

            	(6)

            	☐	transferred to an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act) or an
                “accredited investor” (as defined in Rule 501(a)(4) under the Securities Act), that has furnished a signed letter containing certain representations and agreements; or
	 	 	 	 
	 	(7)

            	☐	transferred pursuant to another available exemption from the registration requirements of the Securities Act.

    

     

    

    
      16

      
        

    

  

   

    

  Unless one of the above boxes is checked, the Issuer will refuse to register any of the Notes evidenced by this certificate in the name of any person other than the
      registered holder thereof; provided, however,
      that if box (5), (6) or (7) is checked, the Issuer may require, prior to registering any such transfer of the Notes, in its sole discretion, such legal opinions, certifications and other information as the Issuer may  reasonably request to confirm
      that such transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, such as the exemption provided by Rule 144 under the Securities Act.
    

    

    
      	 	 	 
	
               

            	
               

            	Signature
	 	 	 
	 	 	 
	Signature Guarantee:	 	 
	 	 	 
	Signature (must be guaranteed)

              	 	Signature

    

     

    

    The signature(s) should be guaranteed by an eligible guarantor institution (banks, stockbrokers,
        savings and loan associations and credit unions with membership in an approved signature guarantee medallion program), pursuant to Exchange Act Rule 17Ad-15.

    

    

    TO BE COMPLETED BY PURCHASER IF BOX (1) OR (3) ABOVE IS CHECKED.

     

    The undersigned represents and warrants that it is purchasing this Note for its own account or an
        account with respect to which it exercises sole investment discretion and that it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act of 1933, as amended, and is aware that the sale to
        it is being made in reliance on Rule 144A and acknowledges that it has received such information regarding the Issuer as the undersigned has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that
        the transferor is relying upon the undersigned’s foregoing representations in order to claim the exemption from registration provided by Rule 144A.

    

    

    
      

      

      
        	 	 	 
	
                 

              	
                 

              	Signature
	 	 	Date:

              
	 	 	 

      

    

    

    

    

    
      17

      
        

    

     

          

    EXHIBIT A

    ISSUING AND PAYING AGENT
            AGREEMENT

     

     

    

    [See attached]

     

    

    

    

    

     

    

    

     A-1

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"}]]