Document:

Exhibit 10.2

 

EMPLOYMENT
AGREEMENT

 

This EMPLOYMENT AGREEMENT by and between
BNC Bancorp, a North Carolina corporation (“BNC Bancorp”), and Bank of North Carolina (“Bank of North Carolina”),
a North Carolina-chartered bank and wholly owned subsidiary of BNC Bancorp. (BNC Bancorp and Bank of North Carolina, collectively,
the “Company”) and David B. Spencer (the “Executive”) is dated as of the 28 day of June, 2013 (the “Agreement”).

 

1.    
      Effective Date. The “Effective Date” shall be July 1, 2013.

 

2.    
      Employment Period. The Company hereby agrees to employ the Executive, and the
Executive hereby agrees to serve the Company, subject to the terms and conditions of this Agreement, for the period
commencing on the Effective Date and ending on the third anniversary thereof (the “Employment Period”); provided, however,
that, commencing on the date one year after the Effective Date, and on each annual anniversary of such date (such date and
each annual anniversary thereof, the “Renewal Date”), unless previously terminated, the Employment Period shall
automatically be extended so as to terminate three years from such Renewal Date, unless, at least 90 days prior to the
Renewal Date, the Company shall give notice to the Executive that the Employment Period shall not be so extended. Unless
sooner terminated, the Executive’s employment shall terminate when he reaches age 65.

 

3.    
      Terms of Employment. (a) Position and Duties. (i) During the Employment
Period , the Executive shall serve as Senior Executive Vice President and Chief Financial Officer of the Company, 
with such duties, authorities and responsibilities as are customarily assigned to such position. The Executive shall report
directly and exclusively to the Chief Executive Officer of the Company. During the Employment Period, the Executive shall be
provided with an office at the corporate headquarters in High Point, North Carolina. Notwithstanding any other provision of
this Agreement to the contrary, upon the termination of the Executive’s employment for any reason, the Executive shall
immediately resign from all positions that he holds with the Company, the Bank and any of their respective subsidiaries and
affiliates (and with any other entities with respect to which the Company has requested the Executive to perform services),
as applicable, including, without limitation, the Board of Directors of BNC Bancorp (the “Board”) (to the extent
applicable) and all boards of directors of any affiliates. The Executive hereby agrees to execute any and all
documentation to effectuate such resignations upon reasonable request by the Company, but he shall be treated for all
purposes as having so resigned from such positions upon termination of his employment, regardless of when or whether he
executes any such documentation.

 

(ii)         During
the Employment Period, and excluding any periods of vacation, sick leave or other approved leave of absence to which the Executive
is entitled, the Executive shall devote Executive’s reasonable best efforts and his full professional time and attention
to the business and affairs of the Company. During the Employment Period, it shall not be a violation of this Agreement for the
Executive to (A) serve on civic or charitable boards or committees and up to one corporate board or committee, (B) deliver lectures,
fulfill speaking engagements or teach at educational institutions, or (C) manage personal investments and investment companies,
without the prior consent of the Company, provided that doing so does not materially interfere with the performance of his duties
and responsibilities as Senior Executive Vice President and Chief Financial Officer.

 

    	 

    	 

    

 

(b)          Compensation
(i) Base Salary. The Executive shall receive an Annual Base Salary at a rate of not less than $400,000, payable in accordance
with the Company’s normal payroll policies (but no less frequently than monthly). After 2013, the Executive’s Annual
Base Salary shall be reviewed for increase at least annually by the Board pursuant to its normal performance review policies for
senior executives. The Annual Base Salary shall not be reduced after any increase and the term Annual Base Salary as utilized in
this Agreement shall refer to Annual Base Salary as so increased.

 

(ii)         Annual
Bonus. During the Employment Period, the Executive shall be eligible to receive an annual bonus opportunity (“Annual
Bonus”) with a target of 35% of the Executive’s Annual Base Salary (the “Target Bonus”). The actual Annual
Bonus, which could be higher or lower than the Target Bonus, shall be based on the attainment of performance objectives to be established
by the Board or the Compensation Committee of the Board. The Annual Bonus shall be paid in cash no later than March 15 of the year
following the year to which the Annual Bonus relates.

 

(iii)        Long
Term Incentives. During the Employment Period, the Executive shall be eligible to participate in the Company’s long term
incentive compensation plans as may be in effect from time to time on a basis no less favorable than that generally provided to
other senior executives of the Company.

 

(iv)        Other
Employee Benefit Plans. During the Employment Period, the Executive and/or the Executive’s family, as the case may be,
shall be eligible for participation in all other compensation, benefit, fringe benefit and perquisite plans, practices, policies
and programs provided by the Company on a basis that is no less favorable than those generally made available to other senior executives
of the Company. During the Employment Period, the Company shall pay or cause to be paid the Executive’s membership assessments
and dues in civic clubs. Without limiting the generality of the foregoing, the Executive shall be reimbursed for assessments, dues,
and expenses associated with his membership in and use of the Colonial Country Club located in Thomasville, North Carolina.

 

(v)         Reimbursement
of Business Expenses. During the Employment Period, the Executive shall be entitled to reimbursement for all reasonable business
expenses incurred in performing his obligations under this Agreement, including but not limited to all reasonable business travel
and entertainment expenses incurred while acting at the request of or in the service of the Company and reasonable expenses for
attendance at annual and other periodic meetings of trade associations.

 

(vi)        Use
of Automobile. During the Employment Period, the Executive shall have the use of an automobile titled in the Company’s
name for use by the Executive in carrying out his duties for the Company, the insurance and maintenance expenses of which shall
be paid by the Company. As additional compensation, the Executive may use such automobile for personal purposes, provided
that the Executive renders an accounting of his business and personal use to the Company in accordance with regulations under the
Internal Revenue Code of 1986, as amended (the “Code”).

 

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(vii)       Vacation.
During the Employment Period, the Executive shall be entitled to no less than five weeks of paid annual vacation and sick leave
in accordance with the policies established from time to time by the Company. During the Employment Period, the Executive shall
not be entitled to any additional compensation for failure to use allotted vacation or sick leave, nor shall the Executive be entitled
to accumulate unused sick leave from one year to the next unless authorized by the Board to do so. Vacation days not used in a
given year may not be carried over from one calendar year to the next.

 

4.      
    Termination of Employment. (a) Death or Disability. The Executive’s employment
shall terminate automatically upon the Executive’s death during the Employment Period. If the Company determines in
good faith that the Disability of the Executive has occurred during the Employment Period (pursuant to the definition of
Disability set forth below), it may provide the Executive with written notice in accordance with Section 13(c) of this
Agreement of its intention to terminate the Executive’s employment. In such event, the Executive’s employment
with the Company shall terminate effective on the 30th day after receipt of such notice by the Executive (the
“Disability Effective Date”), provided that, within the 30 days after such receipt, the Executive shall
not have returned to full-time performance of the Executive’s duties. For purposes of this Agreement,
“Disability” shall mean the absence of the Executive from the Executive’s duties with the Company on a
full-time basis for 120 consecutive days as a result of incapacity due to mental or physical illness which is determined to
be total and permanent by a physician selected by the Company or its insurers and acceptable to the Executive or the
Executive’s legal representative.

 

(b)          Cause.
The Company may terminate the Executive’s employment during the Employment Period either with or without Cause. For purposes
of this Agreement, “Cause” shall mean:

 

(i)          an
intentional act of fraud, embezzlement, or theft by the Executive in the course of his employment with BNC Bancorp or Bank of North
Carolina,

 

(ii)         intentional
violation of any law or significant policy of BNC Bancorp or Bank of North Carolina committed in connection with the Executive’s
employment, which has an adverse effect on BNC Bancorp or Bank of North Carolina,

 

(iii)        the
Executive’s gross negligence or gross neglect of duties in the performance of his duties to BNC Bancorp or Bank of North
Carolina,

 

(iv)        intentional
wrongful damage by the Executive to the business or property of BNC Bancorp or Bank of North Carolina, including without limitation
the reputation of BNC Bancorp or Bank of North Carolina, which causes material harm to BNC Bancorp or Bank of North Carolina,

 

(v)         a
material breach by the Executive of his fiduciary duties to BNC Bancorp and its stockholders or misconduct involving dishonesty,
in either case whether in his capacity as an officer of BNC Bancorp or Bank of North Carolina,

 

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(vi)        a
material breach by the Executive of this Agreement that is not corrected by the Executive within 30 days after receiving written
notice of the breach,

 

(vii)       removal
of the Executive from office or permanent prohibition of the Executive from participating in Bank of North Carolina’s affairs
by an order issued under section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. 1818(e)(4) or (g)(1), or

 

(viii)      conviction
of the Executive for or plea of nolo contendere to a felony or conviction of or plea of nolo contendere to a misdemeanor
involving moral turpitude, which, in the case of a misdemeanor results in the actual incarceration of the Executive for 45 consecutive
days or more.

 

For purposes of this provision,
no act or failure to act on the part of the Executive shall be deemed to have been intentional if it was due primarily to an error
in judgment or negligence. An act or failure to act on the Executive’s part shall be considered intentional if it is not
in good faith and if it is without a reasonable belief that the action or failure to act is in the best interests of the Company.
The Executive shall not be deemed to have been terminated for Cause under this Agreement unless and until there is delivered to
the Executive a copy of a resolution duly adopted at a meeting of the board of directors called and held for such purpose, which
resolution shall (1) contain findings that, in the good faith opinion of the board, the Executive has committed an act constituting
Cause, and (2) specify the particulars thereof. The resolution of the board of directors shall be deemed to have been duly adopted
if and only if it is adopted by the affirmative vote of at least 75% of the Board then in office or 75% of the directors of Bank
of North Carolina then in office, in either case excluding the Executive (if applicable), at a meeting duly called and held for
that purpose. Notice of the meeting and the proposed termination for Cause shall be given to the Executive a reasonable amount
of time before the board’s meeting. The Executive and his counsel (if the Executive chooses to have counsel present) shall
have a reasonable opportunity to be heard by the board at the meeting. Nothing in this Agreement limits the Executive’s or
his beneficiaries’ right to contest the validity or propriety of the board’s determination of Cause.

 

(c)          Good
Reason. The Executive’s employment may be terminated by the Executive with or without Good Reason. For purposes of this
Agreement, “Good Reason” shall mean, in the absence of a written consent of the Executive, any of the following:

 

(i)          the
assignment to the Executive of any duties materially inconsistent with the Executive’s position (including status, offices,
titles and reporting requirements), authority, duties or responsibilities as contemplated by Section 3(a) of this Agreement, or
any other action by the Company which results in a material diminution in the Executive’s position, authority, duties or
responsibilities including any requirement that the Executive report directly to anyone other than one of the Chief Executive Officer,
the Board of Directors of BNC Bancorp or the Board of Directors of Bank of North Carolina,

 

(ii)         any
reduction in the Executive’s Base Salary or Target Bonus other than a reduction of no more than ten percent (10%) in the
aggregate which is applied consistently to all senior executives of the Company,

 

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(iii)        any
material breach by the Company of this Agreement,

 

(iv)        any
requirement by the Company that the Executive’s services be rendered primarily at a location or locations more than 15 miles
from the location of BNC Bancorp’s principal executive offices on the Effective Date, or

 

(v)         any
failure by the Company to comply with Section 10(c) of this Agreement.

 

In order to invoke a termination for Good Reason, the Executive
shall provide written notice to the Company of the existence of one or more of the conditions described in clauses (i) through
(v) within 90 days following the Executive’s knowledge of the initial existence of such condition or conditions and the Company
shall have 30 days following receipt of such written notice (the “Cure Period”) during which it may remedy the condition
if such condition is reasonably subject to cure. In the event that the Company fails to remedy the condition constituting Good
Reason during the applicable Cure Period, the Executive’s “separation from service” (within the meaning of Section
409A of the Code ) must occur, if at all, within 60 days immediately following the expiration of such Cure Period in order for
such termination as a result of such condition to constitute a termination for Good Reason.

 

(d)          Notice
of Termination. Any termination by the Company for Cause, or by the Executive for Good Reason, shall be communicated by Notice
of Termination to the other party hereto given in accordance with Section 13(c) of this Agreement. For purposes of this Agreement,
a “Notice of Termination” means a written notice which (i) indicates the specific termination provision in this Agreement
relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis
for termination of the Executive’s employment under the provision so indicated and (iii) if the Date of Termination (as defined
below) is other than the date of receipt of such notice, specifies the termination date (which date shall be not more than 60 days
after the giving of such notice or the end of the Cure Period, as applicable). The failure by the Executive or the Company to set
forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive
any right of the Executive or the Company, respectively, hereunder or preclude the Executive or the Company, respectively, from
asserting such fact or circumstance in enforcing the Executive’s or the Company’s rights hereunder.

 

(e)          Date
of Termination. “Date of Termination” means (i) if the Executive’s employment is terminated by the Company
for Cause, or by the Executive with or without Good Reason, the date of receipt of the Notice of Termination or any later date
specified therein within 30 days of such notice (except as set forth above for any termination by the Executive for Good Reason),
as the case may be, (ii) if the Executive’s employment is terminated by the Company other than for Cause or Disability, the
Date of Termination shall be the date on which the Company notifies the Executive of such termination and (iii) if the Executive’s
employment is terminated by reason of death or Disability, the Date of Termination shall be the date of death of the Executive
or the Disability Effective Date, as the case may be.

 

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5.     
     Obligations of the Company upon Termination. (a) Good Reason; Other Than for Cause,
Death or Disability. If, during the Employment Period, the Company shall terminate the Executive’s employment other
than for Cause, death or Disability or the Executive shall terminate employment for Good Reason, subject for purposes of
clauses (i(B) and (C)) to the Executive executing and not revoking a waiver and release in substantially the form attached to
this Agreement as Appendix A (the “Waiver and Release”) within 60 days of the Date of Termination
and the Executive’s continued compliance with the covenants set forth in Section 9 of this Agreement:

 

(i)          the
Company shall pay to the Executive the following amounts:

 

A.           in
a lump sum in cash on the 30th day after the Date of Termination, the sum of (1) the Executive’s accrued Annual Base
Salary and any accrued vacation pay through the Date of Termination, (2) the Executive’s business expenses that have
not been reimbursed by the Company as of the Date of Termination that were incurred by the Executive prior to the Date of Termination
in accordance with the applicable Company policy, and (3) the Executive’s Annual Bonus earned for the fiscal year immediately
preceding the fiscal year in which the Date of Termination occurs if such bonus has been determined but not paid as of the Date
of Termination (the sum of the amounts described in clauses (1) through (3), shall be hereinafter referred to as the “Accrued
Obligations”); and

 

B.           in
a lump sum in cash no later than March 15 of the year following the year in which the Date of Termination occurs, subject to the
achievement of any applicable performance goals required in order for the bonus to be deductible by reason of qualifying for the
“performance-based” compensation exception of Section 162(m) of the Code, the product of (1) the Target Bonus and (2)
a fraction, the numerator of which is the number of days in the fiscal year in which the Date of Termination occurs through the
Date of Termination, and the denominator of which is 365 (the “Pro Rata Bonus”); and

 

C.           (i)
except as provided in clause (ii) below, in 18 equal monthly installments commencing on the first business day on or after the
60th day following the Date of Termination the amount equal to the product of (A) one and one-half and (B) the sum of (1) the Executive’s
Annual Base Salary and (2) the Target Bonus or (ii) if a termination of the Executive’s employment described in this Section
5(a) occurs within two years immediately following a Change of Control (as defined on Appendix B hereto) that constitutes
a “change in control” event within the meaning of Section 409A of the Code, in a lump sum in cash within 30 days after
the Date of Termination, the amount equal to the product of (A) three and (B) the sum of (1) the Executive’s Annual Base
Salary and (2) the Target Bonus (in the event such Change of Control does not constitute a “change in control” event
within the meaning of Section 409A of the Code, such amounts shall be paid in 18 equal monthly installments in a manner consistent
with clause (i) above); and

 

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(ii)         subject
to the achievement of any applicable performance goals required in order for the award to be deductible by reason of qualifying
for the “performance-based” compensation exception of Section 162(m) of the Code, any equity-based awards granted to
the Executive shall vest and become free of restrictions immediately, and any stock options or stock appreciation rights granted
to the Executive shall be exercisable for the remainder of their ten year term, without regard to any provisions relating to earlier
termination of the stock options or SARs based on termination of employment (the “Equity Benefits”); and

 

(iii)        for
either (A) the 18-month period following the Date of Termination or (B) if a termination of the Executive’s employment described
in this Section 5(a) occurs within two years immediately following a Change of Control, the three-year period following the Date
of Termination (the “Benefits Continuation Period”), the Company shall continue to provide medical, dental and life
insurance benefits to the Executive and his eligible dependents who are covered as of the Date of Termination as if the Executive
remained an active employee of the Company; provided, however, that if providing continuation of medical and dental
benefits in accordance with this Section 5(a)(iii) would result in the Bank or any of its affiliates breaching the terms of any
insurance policy with an applicable insurer, or incurring any penalty or additional tax for failing to comply with any applicable
law, instead of providing such continuation of medical and dental benefits, the Executive shall be entitled to continuation coverage
pursuant to Section 4980B(f) of the Code (“COBRA”), and, in lieu of providing such benefits for the Benefits Continuation
Period, the Bank shall pay to Executive a monthly cash amount equal to the monthly premium amount the Bank would have paid for
Executive's medical and dental benefits coverage had he remained actively employed, less any applicable tax withholdings (each
such payment, an “Employer Payment”). Any medical and dental benefits provided by the Bank in accordance with the preceding
sentences during the Benefits Continuation Period shall not count towards the medical and dental plan's obligation to provide continuation
coverage pursuant to COBRA or any applicable provision of the Bank’s health or dental plans that provide for continuing coverage
with respect to the Executive and the last day of the Benefits Continuation Period shall be deemed to be the date of the Executive’s
“qualifying event” for purposes of COBRA, provided that if application of this sentence would result in the Bank or
any of its affiliates incurring any penalty or additional tax for failing to comply with any applicable law, this Section shall
be applied without giving effect to this sentence (collectively “Welfare Benefits”); and

 

(iv)        to
the extent not theretofore paid or provided, the Company shall timely pay or provide to the Executive any other amounts or benefits
required to be paid or provided or which the Executive is eligible to receive under any plan, program, policy or practice or contract
or agreement of the Company and its affiliated companies through the Date of Termination (such other amounts and benefits shall
be hereinafter referred to as the “Other Benefits”). As used in this Agreement, the term “affiliated companies”
shall include any company controlled by, controlling or under common control with the Company; and

 

(v)         the
Company shall pay or cause to be paid to the Executive reasonable outplacement expenses in an amount up to $25,000, and for the
one year period after the Date of Termination, the Company shall provide the Executive with the use of office space and reasonable
office support facilities, including secretarial assistance.

 

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(b)          Death.
If the Executive’s employment is terminated by reason of the Executive’s death during the Employment Period, this Agreement
shall terminate without further obligations to the Executive’s legal representatives under this Agreement, other than for
(i) payment of Accrued Obligations, (ii) the timely payment or provision of Other Benefits, (iii) payment of the Pro Rata Bonus,
(iv) the Welfare Benefits and (v) the Equity Benefits. Accrued Obligations shall be paid to the Executive’s estate or beneficiary,
as applicable, in a lump sum in cash within 30 days of the Date of Termination and the Pro Rata Bonus shall be paid to the Executive’s
estate or beneficiary, as applicable, on the date specified in Section 5(a)(i). With respect to the provision of Other Benefits,
the term Other Benefits as utilized in this Section 5(b) shall include death benefits for which the Company pays as in effect on
the date of the Executive’s death and the continued provision of the Welfare Benefits.

 

(c)          Disability.
If the Executive’s employment is terminated by the Company by reason of the Executive’s Disability during the Employment
Period, this Agreement shall terminate without further obligations to the Executive, other than for (i) payment of Accrued Obligations,
(ii) the timely payment or provision of Other Benefits, (iii) payment of the Pro Rata Bonus, (iv) the Welfare Benefits and (v)
the Equity Benefits. Accrued Obligations shall be paid to the Executive or his estate or beneficiary, as applicable, in a lump
sum in cash within 30 days of the Date of Termination and the Pro Rata Bonus shall be paid to the Executive or his estate or beneficiary,
as applicable, on the date specified in Section 5(a)(i). With respect to the provision of Other Benefits, the term Other Benefits
as utilized in this Section 5(c) shall include, and the Executive shall be entitled after the Disability Effective Date to receive,
disability and the continued provision of Welfare Benefits.

 

(d)          Cause;
Other than for Good Reason. If the Executive’s employment shall be terminated by the Company for Cause or the Executive
terminates his employment without Good Reason during the Employment Period, this Agreement shall terminate without further obligations
to the Executive other than the obligation to pay to the Executive (i) the Accrued Obligations through the Date of Termination
and (ii) Other Benefits, in each case to the extent theretofore unpaid. Accrued Obligations shall be paid to the Executive in a
lump sum in cash within 30 days of the Date of Termination.

 

6.    
      Full Settlement; Certain Legal Fees. The Company’s obligation to make the
payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any
set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against the Executive
or others; provided, however, that if the Executive is to receive payments or benefits pursuant to Section 5,
he will not be eligible to receive any other severance payments or benefits from the Company. In no event shall the Executive
be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive
under any of the provisions of this Agreement and, such amounts shall not be reduced whether or not the Executive obtains
other employment. If after a Change of Control occurs it appears to the Executive that (a) the Company or any of its
affiliated companies has failed to comply with any of its obligations under this Agreement, or (b) the Company or any other
person has taken any action to declare this Agreement void or unenforceable, or instituted any litigation or other
legal action designed to deny, diminish, or to recover from the Executive the benefits intended to be provided to the
Executive hereunder, the Company irrevocably authorizes the Executive from time to time to retain counsel of his choice, at
the Company’s expense as provided in this Section 6, to represent the Executive in connection with the initiation or
defense of any litigation or other legal action, whether by or against the Company or any of its affiliated companies or any
director, officer, stockholder, or other person affiliated with the Company or any of its affiliated companies in any
jurisdiction. Notwithstanding any existing or previous attorney-client relationship between the Company and any of its
affiliated companies and any counsel chosen by the Executive under this Section 6, the Company irrevocably consents to the
Executive entering into an attorney-client relationship with that counsel, and the Company and the Executive agree that a
confidential relationship shall exist between the Executive and that counsel. The fees and expenses of counsel selected from
time to time by the Executive as provided in this Section 6 shall be paid or reimbursed to the Executive by the Company on a
regular, periodic basis (no less frequently than monthly) upon presentation by the Executive of a statement or statements
prepared by such counsel in accordance with such counsel’s customary practices, up to a maximum aggregate amount of
$500,000, whether suit be brought or not, and whether or not incurred in trial, bankruptcy, or appellate proceedings. The
Company’s obligation to pay the Executive’s legal fees provided by this Section 6 operates separately from and in
addition to any legal fee reimbursement obligation BNC Bancorp or Bank of North Carolina may have with the Executive under
any separate severance or other agreement.

 

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7.      
    Supplemental Retirement Plan. Bank of North Carolina and the Executive have entered into an
Amended Salary Continuation Agreement, dated as of December 18, 2007 (the “Salary Continuation Agreement”).
Unless the Salary Continuation Agreement explicitly provides otherwise, whether benefits are properly payable to the
Executive under the Salary Continuation Agreement shall be determined solely by reference to that Agreement. Notwithstanding
the foregoing and anything set forth in the Salary Continuation Agreement to the contrary, after the date hereof, Section
7.14 of the Salary Continuation Agreement shall be of no force and effect and Section 8 of this Agreement shall govern the
treatment of any Payments (as defined below) under Section 4999 and Section 280G of the Code.

 

8.       
   Section 280G.

 

(a)          Notwithstanding
anything in this Agreement to the contrary, in the event that the Accounting Firm shall determine that receipt of all Payments
would subject the Executive to tax under Section 4999 of the Code, the Accounting Firm shall determine whether some amount of Agreement
Payments meets the definition of “Reduced Amount.” If the Accounting Firm determines that there is a Reduced Amount,
then the aggregate Agreement Payments shall be reduced to such Reduced Amount.

 

(b)          If
the Accounting Firm determines that the aggregate Agreement Payments should be reduced to the Reduced Amount, the Company or one
of its subsidiaries shall promptly give the Executive notice to that effect and a copy of the detailed calculation thereof, and
the Company shall reduce the Agreement Payments in the following order: (A) by reducing benefits payable pursuant to Section 5(a)(i)(B)
of the Agreement, then (B) by reducing amounts payable pursuant to Section 5(a)(i)(C) of the Agreement, and then (C) by reducing
amounts payable pursuant to Section 5(a)(ii), beginning with payments that would be made last in time. All determinations made
by the Accounting Firm under this Section 8 shall be binding upon the Company and the Executive and shall be made within 60 days
of the Executive’s Date of Termination. In connection with making determinations under this Section 8, the Accounting Firm
shall take into account the value of any reasonable compensation for services to be rendered by the Executive before or after the
Change of Control, including without limitation, the Executive’s agreeing to refrain from performing services pursuant to
a covenant not to compete or similar covenant, and the Company shall cooperate in good faith in connection with any such valuations
and reasonable compensation positions. Without limiting the generality of the foregoing, for purposes of this provision, the Company
agrees to allocate as consideration for the covenants set forth in Section 9 the maximum amount of compensation and benefits payable
under Section 5(a) hereof reasonably allocable thereto so as to avoid, to the extent possible, subjecting any Payments to tax under
Section 4999 of the Code.

 

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(c)          As
a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting
Firm hereunder, it is possible that amounts will have been paid or distributed by the Company to or for the benefit of the Executive
pursuant to this Agreement which should not have been so paid or distributed (each, an “Overpayment”) or that additional
amounts which will have not been paid or distributed by the Company to or for the benefit of the Executive pursuant to this Agreement
could have been so paid or distributed (each, an “Underpayment”), in each case, consistent with the calculation of
the Reduced Amount hereunder. In the event that the Accounting Firm, based upon the assertion of a deficiency by the Internal Revenue
Service against the Company or the Executive which the Accounting Firm believes has a high probability of success determines that
an Overpayment has been made, any such Overpayment paid or distributed by the Company to or for the benefit of the Executive shall
be repaid by the Executive to the Company; provided, however, that no such repayment shall be required if and to
the extent such deemed repayment would not either reduce the amount on which the Executive is subject to tax under Section 1
and Section 4999 of the Code or generate a refund of such taxes. In the event that the Accounting Firm, based upon controlling
precedent or substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be promptly paid
by the Company to or for the benefit of the Executive together with interest at the applicable federal rate provided for in Section
7872(f)(2) of the Code.

 

(d)          All
fees and expenses of the Accounting Firm in implementing the provisions of this Section 8 shall be borne by the Company.

 

(e)          Definitions.
The following terms shall have the following meanings for purposes of this Section 8.

 

(i)          “Accounting
Firm” shall mean a nationally recognized certified public accounting firm that is mutually agreed to by the Company and the
Executive for purposes of making the applicable determinations hereunder, which firm shall not be a firm serving as accountant
or auditor for the individual, entity or group effecting the Change of Control;

 

(ii)         “Agreement
Payment” shall mean a Payment paid or payable pursuant to this Agreement (disregarding this Section 8);

 

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(iii)        “Net
After-Tax Receipt” shall mean the Present Value of a Payment net of all taxes imposed on the Executive with respect thereto
under Sections 1 and 4999 of the Code and under applicable state and local laws, determined by applying the highest marginal rate
under Section 1 of the Code and under state and local laws which applied to the Executive’s taxable income for the immediately
preceding taxable year, or such other rate(s) as the Executive shall certify, in the Executive’s sole discretion, as likely
to apply to the Executive in the relevant tax year(s);

 

(iv)        A
“Payment” shall mean any payment or distribution in the nature of compensation (within the meaning of Section 280G(b)(2)
of the Code) to or for the benefit of the Executive, whether paid or payable pursuant to this Agreement or otherwise;

 

(v)         “Present
Value” of a Payment shall mean the economic present value of a Payment as of the date of the change of control for purposes
of Section 280G of the Code, as determined by the Accounting Firm using the discount rate required by Section 280G(d)(4) of the
Code; or

 

(vi)        “Reduced
Amount” shall mean the amount of Agreement Payments that (x) has a Present Value that is less than the Present Value of all
Agreement Payments and (y) results in aggregate Net After-Tax Receipts for all Payments that are greater than the Net After-Tax
Receipts for all Payments that would result if the aggregate Present Value of Agreement Payments were any other amount that is
less than the Present Value of all Agreement Payments.

 

9.      
    Confidential Information; Non-Compete; Non-Solicit of Employees.

 

(a)          Confidential
Information. The Executive shall hold in a fiduciary capacity for the benefit of the Company all secret or confidential information,
knowledge or data relating to the Company or any of its affiliated companies, and their respective businesses, which shall have
been obtained by the Executive during the Executive’s employment by the Company or any of its affiliated companies and which
shall not be or become public knowledge (other than by acts by the Executive or representatives of the Executive in violation of
this Agreement). After termination of the Executive’s employment with the Company, the Executive shall not, without the prior
written consent of the Company or as may otherwise be required by law or legal process, communicate or divulge any such information,
knowledge or data to anyone other than the Company and those designated by it or as may be required by applicable law, court order,
a regulatory body or arbitrator or other mediator. For the purposes of this Section 9, “confidential information” means
all of the Company’s and its affiliates’ confidential and proprietary information and trade secrets, including, but
not limited to:

 

(i)          the
whole or any portion or phase of any business plans, financial information, purchasing data, supplier data, accounting data, or
other financial information,

 

(ii)         the
whole or any portion or phase of any research and development information, design procedures, algorithms, or processes, or other
technical information,

 

(iii)        the
whole or any portion or phase of any marketing or sales information, sales records, customer lists or client lists, prices, sales
projections, or other sales information, and

 

    	11

    	 

    

 

(iv)        trade
secrets, as defined from time to time by the laws of the State of North Carolina.

 

(b)          Non-Compete
and Non-Solicit. In consideration of the Company’s obligations under Section 5 hereof:

 

(i)          During
the 15-month period following the Executive’s termination of employment during the Employment Period for any reason (the
“Restricted Period”), the Executive will not, directly or indirectly, on behalf of the Executive or any other person,
firm, corporation, or other business organization (A) engage as an employee, officer, director, manager, salesperson, consultant,
independent contractor, representative, or other agent in providing Banking Services (as defined below) on behalf of any other
person, firm, corporation, or other business organization that is a competitor of the Company or any of its affiliates in Guilford
County, any counties contiguous thereto, any counties in which BNC Bancorp, Bank of North Carolina or any of their respective affiliates
has an office, or any counties from which BNC Bancorp, Bank of North Carolina or any of their respective affiliates derives revenue
that is significant, (B) provide Banking Services to any Client, or (C) make any statement or take any actions that interfere with
BNC Bancorp, Bank of North Carolina or any of their respective affiliates business relationships with any Client, including, but
not limited to, any statements that are harmful to the reputation of BNC Bancorp, Bank of North Carolina or any of their respective
affiliates or their standing in the communities they serve.

 

(ii)         During
the Restricted Period, the Executive shall not, directly or indirectly, (A) solicit or encourage any person to leave his or her
employment with the Company or assist in any way with the hiring of any Company employee by any other business or (B) except on
behalf of BNC Bancorp, Bank of North Carolina or any of their respective affiliates, make contact either directly or indirectly
with any Client, nor shall the Executive otherwise induce or encourage any Client to enter into any business relationship with
any person, firm, corporation, or other business organization other than BNC Bancorp, Bank of North Carolina or any of their respective
affiliates relating to Banking Services or banking business of any type.

 

(iii)        For
purposes of this Section 9(b):

 

A.           The
term “Banking Services” means retail or commercial banking business, asset and trust management, wealth management,
investment services, and all other services customarily provided by banks or otherwise provided by the BNC Bancorp, Bank of North
Carolina or any of their respective affiliates.

 

B.           The
term “Client” means all persons, firms, corporations, entities, or business organizations who are or were customers
or clients of the BNC Bancorp, Bank of North Carolina or any of their respective affiliates at any time during the two-year period
prior to the Date of Termination.

 

    	12

    	 

    

 

(c)          The
Executive acknowledges that the Company would be irreparably injured by a violation of this Section 9 and the Executive or the
Company, as applicable, agrees that the Company or the Executive, as applicable, in addition to any other remedies available to
it for such breach or threatened breach, shall be entitled, without posting a bond, to a preliminary injunction, temporary restraining
order, or other equivalent relief, restraining the Executive or the Company (including its executive officers and directors), as
applicable, from any actual or threatened breach of this Section 9. The Executive agrees not to urge in any action the claim or
defense that an adequate remedy at law exists.

 

10.         Successors.
(a) This Agreement is personal to the Executive and without the prior written consent of the Company shall not be assignable by
the Executive. This Agreement shall inure to the benefit of and be enforceable by the Executive’s legal representatives,
heirs or legatees.

 

(b)          This
Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.

 

(c)          The
Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially
all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and
to the same extent that the Company would be required to perform it if no such succession had taken place. As used in this Agreement,
“Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid
which assumes and agrees to perform this Agreement by operation of law, or otherwise.

 

11.         Indemnification.
BNC Bancorp shall indemnify the Executive or cause the Executive to be indemnified with respect to his activities as a director,
officer, employee, or agent of BNC Bancorp or Bank of North Carolina or as a person who is serving or has served at the request
of BNC Bancorp (a “Representative”) as a director, officer, employee, agent, or trustee of an affiliated corporation,
joint venture trust or other enterprise, domestic or foreign, in which BNC Bancorp has a direct or indirect ownership interest
against expenses (including, without limitation, attorneys’ fees, judgments, fines, and amounts paid in settlement) actually
and reasonably incurred by him (“Expenses”) in connection with any claim against the Executive that is the subject
of any threatened, pending, or completed action, suit, or other type of proceeding, whether civil, criminal, administrative, investigative,
or otherwise and whether formal or informal (a “Proceeding”), to which the Executive was, is, or is threatened to be
made a party by reason of the Executive being or having been such a director, officer, employee, agent, or Representative. The
indemnification provided herein shall not be exclusive of any other indemnification or right to which the Executive may be entitled
and shall continue after the Executive has ceased to occupy a position as an officer, director, employee, agent or Representative
with respect to Proceedings relating to or arising out of the Executive’s acts or omissions during his service in such position.
The benefits provided to the Executive under this Agreement for the Executive’s service as a Representative shall be payable
if and only if and only to the extent that reimbursement to the Executive by the affiliated entity with which the Executive has
served as a Representative, whether pursuant to agreement, applicable law, articles of incorporation or association, by-laws or
regulations of the entity, or insurance maintained by such affiliated entity, is insufficient to compensate the Executive for Expenses
actually incurred and otherwise payable by BNC under this Agreement. Any payments in fact made to or on behalf of the Executive
directly or indirectly by the affiliated entity with which the Executive served as a Representative shall reduce the obligation
of BNC hereunder. Anything herein to the contrary notwithstanding, however, nothing in this Section 11 requires indemnification,
reimbursement, or payment by BNC Bancorp or Bank of North Carolina, and the Executive shall not be entitled to demand indemnification,
reimbursement or payment hereunder –

 

    	13

    	 

    

 

(a)          if
and to the extent indemnification, reimbursement, or payment constitutes a “prohibited indemnification payment” within
the meaning of Federal Deposit Insurance Corporation Rule 359.1(l)(1) [12 CFR 359.1(l)(1)], or

 

(b)          for
any claim or any part thereof as to which the Executive shall have been determined by a court of competent jurisdiction, from which
no appeal is or can be taken, by clear and convincing evidence, to have acted with deliberate intent to cause injury to BNC Bancorp
or Bank of North Carolina or with reckless disregard for the best interests of BNC Bancorp, or

 

(c)          for
any claim or any part thereof arising under Section 16(b) of the Securities Exchange Act of 1934 as a result of which the Executive
is required to pay any penalty, fine, settlement, or judgment, or

 

(d)          for
any obligation of the Executive based upon or attributable to the Executive gaining in fact any personal gain, profit, or advantage
to which he was not entitled, or

 

(e)          any
proceeding initiated by the Executive without the consent or authorization of the Board, but this exclusion shall not apply with
respect to any claims brought by the Executive (i) to enforce his rights under this Agreement, or (ii) in any Proceeding initiated
by another person or entity whether or not such claims were brought by the Executive against a person or entity who was otherwise
a party to such proceeding.

 

12.         Insurance.
BNC Bancorp shall maintain or cause to be maintained liability insurance covering the Executive throughout the Employment Period
and thereafter as is sufficient to provide the indemnification set forth in Section 11 hereof.

 

13.         Miscellaneous.

 

(a)          This
Agreement shall be governed by and construed in accordance with the laws of the State of North Carolina, without reference to principles
of conflict of laws. If, under any such law, any portion of this Agreement is at any time deemed to be in conflict with any applicable
statute, rule, regulation or ordinance, such portion shall be deemed to be modified or altered to conform thereto. The captions
of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or
modified otherwise than by a written agreement executed by the parties hereto or their respective successors and legal representatives.

 

    	14

    	 

    

 

(b)          This
Agreement sets forth the entire agreement of the parties concerning the employment of the Executive by the Company, and any oral
or written statements, representations, agreements, or understandings made or entered into prior to or contemporaneously with the
execution of this Agreement, are hereby rescinded, revoked, and rendered null and void by the parties. The Salary Continuation
Agreement and the Split Dollar Agreement and Endorsement and the parties’ rights and obligations thereunder shall remain
in full force and effect according to the terms thereof, as the same may be amended and restated after the date of this Agreement.
Without limiting the generality of the foregoing, the parties hereto acknowledge and agree that this Agreement supersedes in its
entirety the employment agreement dated as of December 31, 2007, entered into by the Executive and Bank of North Carolina and BNC
Bancorp, as amended or supplemented.

 

(c)          All
notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other parties or by registered
or certified mail, return receipt requested, postage prepaid, addressed as follows:

 

	If to the Executive:	At the most recent address
	 	on file at the Company.
	 	 
	If to the Company:	BNC Bancorp,
	 	3980 Premier Drive,
	 	High Point, North Carolina  27265
	 	Attention:  Corporate Secretary

 

or to such other address as either party shall have furnished
to the other in writing in accordance herewith. Notice and communications shall be effective when actually received by the addressee.

 

(d)          The
invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

 

(e)          The
Company may withhold from any amounts payable under this Agreement such Federal, state, local or foreign taxes as shall be required
to be withheld pursuant to any applicable law or regulation.

 

(f)          The
Executive and the Company agree that neither the Company nor any of its affiliates shall make any payments or provide any benefits
otherwise due under this Agreement if such payments or benefits are prohibited by applicable legal and/or regulatory requirements
or guidance or any changes in applicable law, rules or regulations or in the formal and conclusive interpretation thereof by any
regulator or agency of competent jurisdiction, including, but not limited to, with respect to the “golden parachute rules”
pursuant to Part 359 of the Federal Deposit Insurance Corporation [12 CFR 359].

 

(g)          Any
provision of this Agreement that by its terms continues after the expiration of the Employment Period or the termination of the
Executive’s employment shall survive in accordance with its terms.

 

    	15

    	 

    

 

(h)          If
any compensation or benefits provided by this Agreement may result in the application of Section 409A of the Code, the Company
shall, in consultation with the Executive, modify the Agreement in the least restrictive manner necessary in order to exclude such
compensation from the definition of “deferred compensation” within the meaning of such Section 409A of the Code or
in order to comply with the provisions of Section 409A of the Code, other applicable provision(s) of the Code and/or any rules,
regulations or other regulatory guidance issued under such statutory provisions and without any diminution in the value of the
payments to the Executive. Any payments that qualify for the “short-term” deferral exception under Treasury Regulations
Section 1.409A-1(b)(4), the “separation pay” exception under Treasury Regulations Section 1.409A-1(b)(9)(iii) or any
other exception under Section 409A of the Code will be paid under the applicable exceptions to the greatest extent possible. Each
payment under this Agreement shall be treated as a separate payment for purposes of Section 409A of the Code. Anything in this
Agreement to the contrary notwithstanding, if at the time of the Executive’s separation from service within the meaning of
Section 409A of the Code, the Executive is considered a “specified employee” within the meaning of Section 409A(a)(2)(B)(i)
of the Code, and if any payment that the Executive becomes entitled to under this Agreement is considered deferred compensation
subject to interest, penalties and additional tax imposed pursuant to Section 409A of the Code as a result of the application of
Section 409A(a)(2)(B)(i) of the Code, then no such payment shall be payable prior to the date that is the earlier of (i) six months
and one day the Executive’s separation from service or (ii) the Executive’s death. In no event shall the date of termination
of the Executive’s employment be deemed to occur until the Executive experiences a “separation from service”
within the meaning of Section 409A of the Code, and notwithstanding anything contained herein to the contrary, the date on which
such separation from service takes place shall be the Date of Termination. All reimbursements provided under this Agreement shall
be provided in accordance with the requirements of Section 409A of the Code, including, where applicable, the requirement that
(A) the amount of expenses eligible for reimbursement during one calendar year will not affect the amount of expenses eligible
for reimbursement in any other calendar year; (B) the reimbursement of an eligible expense will be made no later than the last
day of the calendar year following the calendar year in which the expense is incurred; and (C) the right to any reimbursement will
not be subject to liquidation or exchange for another benefit.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK]

 

    	16

    	 

    

 

IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s
hand and, pursuant to the authorization from their respective board of directors, the BNC Bancorp and Bank of North Carolina have
caused these presents to be executed in its name on its behalf, all as of the day and year first above written.

 

	 	BNC BANCORP
	 	 	 
	 	By	/s/ Richard D. Callicutt
	 	Name: Richard D. Callicutt
	 	Title:  President and Chief Executive Officer
	 	 
	 	BANK OF NORTH CAROLINA
	 	 	 
	 	By	/s/ Richard D. Callicutt
	 	Name:  Richard D. Callicutt
	 	Title:  President and Chief Executive Officer
	 	 
	 	EXECUTIVE
	 	 	 
	 	/s/ David B. Spencer

 

    	17

    	 

    

 

Appendix A

 

WAIVER
AND RELEASE OF CLAIMS

 

In exchange for the
post-termination payments and benefits described in that certain employment agreement (the “Employment Agreement”)
by and among [NAME] (the “Employee”), BNC Bancorp (“Bancorp”) and
Bank of North Carolina (“BNC” and together with Bancorp, the “Company”) (sometimes collectively referred
to as the “Parties”), the Parties enter into this Waiver and Release of Claims (the “Agreement”) and agree
as follows:

 

1.      
    The Parties agree and acknowledge that Employee’s employment with the Company, which was at all
times strictly on an “at-will” basis, is terminated, with such termination effective as of and beginning on
[DATE] (the “Termination Date”).

 

2.      
    The Parties acknowledge and agree that as of the Termination Date, other than as explicitly set forth
in the Employment Agreement, no employment compensation, benefits (except as required by law), or other amounts were due and
owing to Employee in connection with Employee’s employment with the Company, including without limitation any vacation
pay, sick leave pay, holiday pay, wages, commissions, bonus, or other form of compensation or benefit, with the exception of
any final wage payments or payments for accrued but unused vacation time which Employee is otherwise eligible to receive,
which amounts shall be paid to Employee on or before the next regularly scheduled pay day after the Termination Date.

 

3.       
   Employee specifically acknowledges and agrees that:

 

		(a)	Employee has not suffered any injury within the course and scope of his employment at the Company,
or otherwise in connection with, arising from, or related to his employment at the Company, for which Employee has not already
filed a claim;

 

		(b)	The payments that the Company shall pay pursuant to the Employment Agreement are in addition to
any sum that Employee would otherwise be entitled to receive from the Company by reason of Employee’s employment with the
Company; and

 

		(c)	This Agreement has been individually negotiated between Employee and the Company.

 

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Appendix A

 

4.     
     Employee hereby unconditionally releases and forever discharges Bancorp, BNC and its current
and former owners, partners, directors, officers, shareholders, affiliates, agents, employee benefit plans, insurers,
employees, attorneys, subsidiaries, parents, successors, predecessors and assigns, and each of them (collectively, the
“Released Parties”), of and from, and agrees not to sue and not to assert against any of them, any causes of
action, claims or demands whatsoever (whether known or unknown, and whether at law, in equity, or before any agency or
commission of local, state, or federal governments) that Employee is permitted by law to release, known and unknown, arising,
alleged to have arisen, or which might have been alleged to have arisen out of Employee’s employment with or
termination of employment by the Company, and under any law applicable to such employment or termination (including
without limitation the Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Labor Management
Relations Act, the National Labor Relations Act, the Family and Medical Leave Act, the Employee Retirement and Income
Security Act, the Americans With Disabilities Act, the Federal Rehabilitation Act of 1973, 42 U.S.C. § 1981, the North
Carolina Retaliatory Employment Discrimination Act, the North Carolina Persons With Disabilities Protection Act, the Age
Discrimination in Employment Act of 1967, the Worker Adjustment and Retraining Notification Act, and any and all other
federal, state, and local laws and regulations related to employment, termination, employment discrimination or retaliation,
wages, hours, benefits, or compensation), any and all claims for attorneys’ fees and costs, and any and all other
claims and causes of actions, known and unknown, which Employee may have or claim to have against any of the Released Parties
from the beginning of time to the date hereof which can by applicable law be released. Employee hereby waives
Employee’s right to any monetary recovery should any agency or commission of any kind of local, state, or federal
governments pursue any claims on Employee’s behalf.

 

5.     
     If and to the extent that any claims, demands, or causes of action Employee released or
attempted to release in Paragraph 4 above exist and accrued prior to the execution of this Agreement by Employee, and the
approval of any court, agency, administrative body, commission, or other entity is necessary to fully effectuate any such
release, Employee agrees to participate in and cooperate fully with the Company in obtaining any such approval. Subject to
the foregoing and notwithstanding anything to the contrary herein, any claims, demands, or causes of action that Employee
cannot by law release, or which cannot be released by Employee by the execution of this Agreement under the circumstances
existing at the time of such execution, are excluded from the release set forth in Paragraph 4 above; and Employee does not
waive any rights, claims, demands, or causes of action that may arise after the date Employee executes this Agreement.

 

6.    
      As a further condition for the payment of funds pursuant to the Employment Agreement,
Employee agrees to fully cooperate with the Company in the orderly transition of his duties to Company personnel, and further
agrees to fully cooperate with the Company in providing any requested information related to any function of Employee’s
prior employment with the Company.

 

7.     
     Employee further acknowledges and agrees that following the execution of this Agreement,
Employee will not make any negative, derogatory, defamatory, slanderous, or disparaging comments, references, or
characterizations, either verbally or in writing, regarding the Company, including without limitation Bancorp or BNC’s
services, products or services provided by Bancorp or BNC, business models, personnel, officers, affiliates, management, and
financial status, to any of the following: former or existing employees of Bancorp or BNC, customers or business partners of
Bancorp or BNC, the media, the general public, on the Internet, or any other entity, for any purpose whatsoever, unless a
legal duty to do so is imposed.

 

    	2 of 7

    	 

    

 

Appendix A

 

		8.	Employee represents, warrants, promises, and covenants that:

 

		(a)	Employee has returned to the Company any and all materials and property of the Company in Employee’s
possession, custody, or control, including without limitation all documents, files, data, data disks, magnetic and other storage
media, drawings, manuals, reports, samples, presentations, customer lists, supplier lists, price lists, vendor lists, documents
equipment, data, and all other tangible material referencing, concerning, or containing any Confidential Information (as defined
in Subparagraph (b) immediately below) or any part thereof, and all copies thereof;

 

		(b)	From the date of execution of this Agreement, continuously, in perpetuity, and for all times, Employee
will not keep, use (for the benefit of Employee or any third party), disseminate, disclose, divulge, deliver, or otherwise make
available or by inaction allow to be made available to any person or entity other than an officer or director of Bancorp or BNC
any confidential information concerning the business or assets of Bancorp or BNC (all of which are collectively referred to herein
as “Confidential Information”) including without limitation the following: the methods and systems used by Bancorp
or BNC in conducting its business, information relating to, concerning or referencing existing and prospective
expansion plans, existing and potential financing sources and arrangements, existing and prospective marketing plans and activities,
existing and prospective business plans and strategies, existing and prospective pricing plans and strategies, budgets, financial
information, profit and loss information, research, know-how, lists of actual or potential customers, suppliers, dealers,
and distributors of Bancorp or BNC, any information regarding Bancorp or BNC’s marketing, sales, or other business networks,
and any and all other confidential information regarding the Company, its products or services, or any of the above items developed,
acquired or compiled by the Company, whether oral, written, physical, electronic, magnetic, graphic, encoded or in any other tangible
or intangible form; and

 

		(c)	For the purposes of this Agreement, “Confidential Information” shall not include: (i)
information that is generally known or is available to the general public through legitimate origins (and other than as the result
of unauthorized disclosure by or through Employee), as of the date such information becomes generally known or available to the
general public; (ii) information that is rightfully acquired by Employee after the date of this Agreement from a third party whose
disclosure of such information is not in violation of any obligation of confidentiality to the Company, as of the date such
information is actually acquired by Employee; and (iii) knowledge, skills or information which is common to the trade or profession
of Employee.

 

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Appendix A

 

9.      
    With respect to any and all Confidential Information, Employee acknowledges and agrees that:

 

		(a)	The Confidential Information and all copies thereof, as described above, is sensitive, valuable,
and proprietary information that is the sole and lawful property of the Company;

 

		(b)	The Confidential Information represents a material investment of Bancorp or BNC’s time, money,
and other resources;

 

		(c)	Bancorp and BNC has a legitimate need to protect such Confidential Information (including without
limitation a need to protect economic advantages from confidential data and connections); and

 

		(d)	The Confidential Information is the subject of reasonable efforts on Bancorp or BNC’s behalf
to keep it confidential.

 

10.         Employee
agrees that this Agreement and all of its terms are strictly confidential and have not and shall not be disclosed, discussed or
revealed by Employee to any other persons, entities, or organizations. Notwithstanding the foregoing, Employee is permitted to
make any disclosures required by court order or subpoena, and is further permitted to disclose the terms of this Agreement to Employee’s
personal tax and financial advisors, legal counsel, governmental tax agencies, and spouse (if applicable), provided that any such
entity agrees to abide by the confidentiality requirement set forth in this Paragraph.

 

11.         The
Parties agree that should any term, clause, portion, or provision of this Agreement be determined to be invalid or unenforceable
by a court, governmental agency, or arbitrator of competent jurisdiction, such term, clause, portion, or provision shall be deemed
severed from the Agreement, and such determination and severance shall not affect the enforceability of the remainder of the Agreement.
This Agreement shall be interpreted in accordance with the law of the State of North Carolina, without regard to the conflicts
of laws provisions thereof. The Parties agree that any rule of construction of contracts resolving any
ambiguities against the drafting party shall be inapplicable to this Agreement.

 

    	4 of 7

    	 

    

 

Appendix A

 

12.         This
Agreement shall be binding upon Employee and Employee’s executors, heirs, estate, legal representatives, beneficiaries and
other successors in interest, and shall inure to the benefit of the Company and its successors and assigns.

 

13.         This
Agreement supersedes any and all other agreements or understandings, whether oral, implied, or in writing, between the Parties
with respect to the subject matter hereof, and contains all of the covenants and agreements between the Parties with respect to
such matters in their entirety. No representations, inducements, promises or agreements, oral or otherwise, have been made to Employee,
or anyone acting on behalf of Employee, that are not embodied herein. No modification to this Agreement, including without limitation
this provision, will be effective unless it is in writing and signed by Employee and the Company.

 

14.         Employee
further specifically acknowledges the following:

 

		(a)	Employee received a copy of this Agreement on or before the Termination Date, has been given at
least twenty-one (21) days within which to consider this Agreement, and hereby waives any and all rights and claims to assert that
such twenty-one (21) day period has not been afforded to him/her; and if Employee has elected to sign this Agreement prior to the
expiration of said twenty-one (21) day period Employee has done so of Employee’s own volition and not as the result of any
requirement of or coercion by Bancorp, BNC or any of its agents;

 

		(b)	Employee has been and is hereby advised in writing through this Agreement, which Employee agrees
constitutes sufficient notice and which Employee has reviewed prior to signing, that Employee has the right to consult and could
consult with an attorney prior to executing this Agreement, and Employee acknowledges that Employee has had the opportunity to
consult an attorney;

 

		(c)	Employee has seven (7) days following the date of execution of this Agreement to revoke the Agreement,
and the Agreement will not become effective or enforceable until after this seven (7) day period has expired; and in order to revoke
this Agreement Employee must advise the Company in writing of Employee’s election to revoke it such that the notice is received
by the Company within the above seven (7) day period at the following address: Bank of North Carolina, attn: EVP/Director of Human
Resources, 3980 Premier Drive, Suite 120, High Point, NC 27265; and

 

		(d)	Employee recognizes that Employee is specifically releasing, among other claims, any claims under
the Age Discrimination in Employment Act of 1967 and all amendments thereto.

 

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Appendix A

 

15.         Employee
agrees to pay the costs, expenses, and fees, including reasonable attorney fees, incurred by Bancorp or BNC in any successful effort
by Bancorp or BNC to enforce or defend its rights under this Agreement.

 

16.         The
rights and remedies of Bancorp or BNC in this Agreement shall be deemed cumulative, and the exercise of one of such remedies shall
not operate to bar the exercise of any other rights and remedies reserved to Bancorp or BNC or available at law or in equity. The
waiver of a breach or provision hereof shall not be effective unless in writing and signed by Employee and the Company, and shall
not operate or be construed as a waiver of a breach of any other provision hereof or of any subsequent breach.

 

17.         Employee
understands and acknowledges that Employee’s obligations, duties, and liabilities set forth herein are continuing, absolute,
and unconditional, and that any alleged breach by Bancorp or BNC of any duty shall not release Employee from Employee’s obligations
herein, and shall not be a defense to any action or proceeding instituted by or on behalf of Bancorp or BNC to enforce any rights
in connection with any such obligation, duty, or liability. Employee agrees that Employee will at all times safeguard the value
and secrecy of all Confidential Information, and will not disclose, use to the benefit of Employee or any person or entity that
is not Bancorp or BNC, or use to the detriment of Bancorp or BNC, any Confidential Information.

 

18.         Employee
states and acknowledges that Employee has entered into this Agreement knowingly and voluntarily and of Employee’s own free
will free from any duress or coercion, that Employee understands fully all the terms of the Agreement, and that Employee knowingly
and voluntarily intends to be legally bound by this Agreement.

 

In testimony whereof,
the Parties hereto set their hands and seals.

 

	 	 	 	(SEAL)
	Witness	 	 	 

 

	 	Date:	 	 

 

	 	BANK OF NORTH CAROLINA

 

	 	By:	 	 

 

	 	Position:	 	 

 

	 	Date:	 	 

 

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Appendix A

 

	 	BNC Bancorp

 

	 	By:	 	 

 

	 	Position:	 	 

 

	 	Date:	 	 

 

    	7 of 7

    	 

    

 

Appendix B

 

Definition of Change of Control

 

(i)          Any
individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”)) (a “Person”) becomes the beneficial owner (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of 51% or more of either (a) the then-outstanding shares of common stock of the Company (the “Outstanding
Company Common Stock”) or (b) the combined voting power of the then-outstanding voting securities of the Company entitled
to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however,
that, for purposes of this definition, the following acquisitions shall not constitute a Change of Control: (w) any acquisition
directly from the Company, (x) any acquisition by the Company, (y) any acquisition by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any Affiliated Company or (z) any acquisition pursuant to a transaction that complies
with clauses (iii)(a), (iii)(b) and (iii)(c) below;

 

(ii)         Individuals
who, as of the Effective Date, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least
a majority of the Board; provided, however, that any individual becoming a director subsequent to the Effective Date
whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of
the directors then comprising the Incumbent Board shall be considered as though such individual was a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board;

 

(iii)        Consummation
of a reorganization, merger, statutory share exchange or consolidation or similar transaction involving the Company or any of its
subsidiaries, a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of assets
or stock of another entity by the Company or any of its subsidiaries (each, a “Business Combination”), in each case
unless, following such Business Combination, (a) all or substantially all of the individuals and entities that were the beneficial
owners of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to such Business
Combination beneficially own, directly or indirectly, greater than 50% of the then-outstanding shares of common stock (or, for
a non-corporate entity, equivalent securities) and the combined voting power of the then-outstanding voting securities entitled
to vote generally in the election of directors (or, for a non-corporate entity, equivalent governing body), as the case may be,
of the entity resulting from such Business Combination (including, without limitation, an entity that, as a result of such transaction,
owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries)
in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company
Common Stock and the Outstanding Company Voting Securities, as the case may be, (b) no Person (excluding any corporation resulting
from such Business Combination or any employee benefit plan (or related trust) of the Company or such corporation resulting from
such Business Combination) beneficially owns, directly or indirectly, 51% or more of, respectively, the then-outstanding shares
of common stock of the corporation resulting from such Business Combination or the combined voting power of the then-outstanding
voting securities of such corporation, except to the extent that such ownership existed prior to the Business Combination, and
(c) at least a majority of the members of the board of directors (or, for a non-corporate entity, equivalent governing body) of
the entity resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial
agreement or of the action of the Board providing for such Business Combination; or

 

    	B-1

    	 

    

 

(iv)        Approval
by the stockholders of the Company of a complete liquidation or dissolution of the Company.

 

    	B-2Execution Version

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (“Agreement”),
dated June 28, 2013, is made and entered into by and between XO Group Inc. (the “Company”) and Michael Steib
(“Executive”).

 

WITNESSETH:

 

WHEREAS, the Company desires to employ Executive
upon the terms and subject to the conditions hereinafter set forth, and Executive desires to accept such employment.

 

NOW, THEREFORE, for and in consideration
of the premises, the mutual promises, covenants and agreements contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.   
      Commencement Date; Term. Subject to the terms and conditions set
forth herein and Executive’s signed acceptance of the Employee Non-Disclosure, Non-Competition and Invention Assignment
Agreement (the “Non-Disclosure Agreement”) attached hereto as Exhibit A, Executive’s employment with the
Company shall commence on July 1, 2013 (the “Commencement Date”) and shall continue until terminated in
accordance with the terms and conditions hereinafter set forth (such period of employment hereunder, the
“Term”). Notwithstanding anything herein or elsewhere to the contrary, Executive agrees and
acknowledges that his employment with the Company shall be “at will” meaning that either Executive or the Company
may terminate Executive’s employment and this Agreement at any time, with or without cause or notice, subject to the
terms and conditions hereof. The Company reserves the right to revise, supplement, or rescind any of its policies, practices,
and procedures as it deems appropriate in its sole and absolute discretion. In order for Executive’s employment to
commence with the Company, Executive will be required to comply with the U.S. Citizenship and Immigration Services
regulations requiring the establishment of Executive’s identity and right to work in the United States in the time
period prescribed therein.

 

2.     
     Position; Duties.

 

a.           Position.
Executive shall serve as the Company’s President and shall report directly to the Chief Executive Officer (the “CEO”)
of the Company. Subject to the reporting structure set forth in or contemplated by this Agreement, Executive will have such duties,
authorities and responsibilities customarily associated with the position of President, together with such other duties and responsibilities,
that are not inconsistent with Executive’s position, as may be reasonably assigned to Executive from time to time by the
CEO. Executive shall have the general power and duties of supervision and management of those aspects of the Company’s business
as are presently conducted through a “pod” structure with each such pod reporting to Executive.

 

b.           Performance.
Executive shall devote substantially all of Executive’s business time and attention and Executive’s good faith best
efforts (excepting vacation time, holidays, sick days and periods of disability) to the business and affairs of the Company.

 

    	 

    	 

    

 

c.           Office.
Executive’s principal place of employment shall be the Company’s headquarters in New York City.

 

d.           No
Interference With Duties. Executive shall not devote time to other activities which would interfere with the proper performance
of Executive’s duties as set forth herein and shall not be directly or indirectly concerned or interested in any other business,
occupation, activity or interest other than by reason of holding a non-controlling interest as a shareholder, securities holder
or debenture holder in a corporation quoted on a nationally recognized exchange (subject to any limitations in the Company’s
Code of Business Conduct and Ethics). Subject to the policies applicable to other senior executives of the Company (including without
limitation such policies governing conflicts of interest), Executive may not serve as a member of a board of directors of a for-profit
company, other than the Company or any of its subsidiaries or affiliates, without the express approval of the Board of Directors
(the “Board”) of the Company; provided, however, it shall not be a violation of this Agreement
for Executive to manage personal business interests and investments and to engage in charitable and civic activities, so long as
such activities do not individually or in the aggregate interfere with the performance of Executive’s responsibilities under
this Agreement.

 

e.           Prior
Employer Information. Executive acknowledges that he has been advised that the Company’s policy is not to obtain or use
any confidential information, proprietary information or trade secrets of its competitors or others, unless properly obtained from
sources permitted to disclose such information, and that Executive agrees to abide by this policy. Executive further agrees that
he will not engage and has not engaged in any activity that is inconsistent with the foregoing policy.

 

3.    
      Compensation and Benefits.

 

a.           Base
Salary. Subject to the terms and conditions set forth in this Agreement, during the Term, the Company shall pay Executive an
annual base salary (“Base Salary”) in the amount of five hundred thousand dollars ($500,000). The Base Salary
shall be paid in accordance with the Company’s normal payroll practices and will be subject to adjustment from time to time
at the sole discretion of the Board (or an authorized committee thereof); provided, however, the Base Salary shall
only be decreased as part of an across the board reduction applicable to the Company’s other senior executive officers. Any
such adjustment shall thereafter be regarded as Executive’s “Base Salary” for all purposes under this Agreement
unless otherwise provided.

 

b.           Inducement
Cash Bonus. Within thirty (30) days after the Commencement Date, the Company shall make a cash bonus payment to Executive in
the amount of two hundred thousand dollars ($200,000) (the “Inducement Bonus”). Executive agrees to promptly
repay to the Company one hundred percent (100%) of the gross amount of the Inducement Bonus received by Executive (i.e., before
any reductions for federal, state, local or other taxes withheld on such amount) in the event Executive is either terminated for
Cause (as defined below) by the Company or Executive resigns his employment without Good Reason (as defined below) prior to the
first annual anniversary of the Commencement Date. If Executive is either terminated for Cause by the Company or Executive resigns
his employment without Good Reason on or following the first annual anniversary of the Commencement Date and prior to the second
annual anniversary of the Commencement Date, Executive agrees to promptly repay to the Company fifty percent (50%) of the gross
amount of the Inducement Bonus (i.e., before any reductions for federal, state, local or other taxes withheld on such amount).

 

    	-2-

    	 

    

 

c.           Inducement
Equity Grants. As soon as practicable following, but in no event more than thirty (30) days after the Commencement Date, Executive
shall receive the equity grants as described in this Section 3(c).

 

(i)          Time
Vested Restricted Stock. Executive shall receive a grant from the Company of one hundred and twenty-five thousand (125,000)
shares of time vested restricted common stock of the Company (the “Time Vested Restricted Stock”). During the
Term, the shares of Time Vested Restricted Stock shall vest at the rate of twenty-five percent (25%) per year, vesting on each
of the first four (4) anniversaries of the Commencement Date, subject to Executive’s continued employment with the Company
through each such date. All other terms and conditions of the Time Vested Restricted Stock shall be governed by the Company’s
2009 Stock Incentive Plan (the “Stock Incentive Plan”) and the form of restricted stock award agreement issued
thereunder.

 

(ii)         Performance
Vested Restricted Stock. Executive shall receive a grant from the Company of one hundred and twenty-five thousand (125,000)
shares of performance vested restricted common stock of the Company (the “Performance Vested Restricted Stock”).
During the Term, the shares of Performance Vested Restricted Stock shall vest based on (i) annual performance goals to be established
by the Compensation Committee of the Board (the “Compensation Committee”), in consultation with Executive within
thirty (30) days following the Commencement Date, and (ii) Executive’s continued employment with the Company through the
end of the performance period. All other terms and conditions of the Performance Vested Restricted Stock shall be governed by the
Stock Incentive Plan and the form of restricted stock award agreement issued thereunder.

 

(iii)        Stock
Options. Executive shall receive an award from the Company of stock options to purchase one hundred thousand (100,000) shares
of the Company’s common stock at an exercise price equal to the fair market value per share on the date of grant (the “Stock
Options”). During the Term, the Stock Options shall vest at the rate of twenty-five percent (25%) per year, vesting on
each of the first four (four) anniversaries of the Commencement Date, subject to Executive’s continued employment with the
Company through each such date. Unless earlier terminated pursuant to the Stock Incentive Plan and the form of the stock option
agreement issued thereunder, the Stock Options will remain exercisable for a period of no longer than five (5) years from the date
of grant, at which time such Stock Options shall expire. All other terms and conditions of the Stock Options shall be governed
by the Stock Incentive Plan and the form of stock option agreement issued thereunder.

 

d.           Long-Term
Incentive Awards. Executive shall be eligible to receive compensatory awards based on the achievement of specified performance
goals under the Company’s 2011 Long-Term Incentive Plan (the “LTIP”), subject to the terms and conditions
of the LTIP and the form of participation agreement issued thereunder.

 

    	-3-

    	 

    

 

(i)          With
respect to the 2013 performance year, Executive shall be eligible to earn an award with a maximum value equal to eighty-five percent
(85%) of his Base Salary on the Commencement Date, which amount shall be prorated from the Commencement Date (the “Maximum
Award”). The Company guarantees that the actual award payable to Executive for the 2013 performance year shall be equal
to no less than one-half (1/2) of the Maximum Award (the “Guaranteed Award”). The award with respect to the
2013 performance year shall be payable in fully vested shares of the Company’s common stock no later than March 15, 2014;
provided, however, that any portion of the Guaranteed Award above the amount of the award that otherwise would have
been earned, but for the guarantee, shall be payable in cash on the same date.

 

(ii)         With
respect to performance years 2014 through 2016, Executive shall be eligible to earn an award with a maximum value equal to one
hundred and fifty percent (150%) of his Base Salary under a program to be established by the Compensation Committee in consultation
with the Company’s senior executive officers (including Executive). The “Base Salary” used for each of the performance
years 2014 through 2016 will be the Base Salary described by the program that is adopted by the Compensation Committee in accordance
with the LTIP. Except as otherwise provided in the participation agreement to be established by the Compensation Committee, rewards
with respect to the 2014, 2015 and 2016 performance years shall be payable no later than March 15 of the year following the applicable
performance year in restricted common stock of the Company which shall become vested no later than March 15, 2017.

 

e.           Ongoing
Equity Grants. Executive shall be eligible for equity grants and other long-term incentives at the same time as equity grants
and other long-term incentive awards are granted to other senior executives of the Company generally, subject to approval of the
Compensation Committee in its discretion, and the amount of such equity grants or other long-term incentives, if any, shall be
commensurate with the awards granted to other senior executives of the Company and the terms and conditions of such grants or incentives
shall be no less favorable than those applicable to awards of a similar nature made to other senior executives of the Company.

 

f.            Other
Compensation. During the Term, Executive will be eligible to participate in such other incentive compensation programs for
executive officers, if and when such programs are established by the Compensation Committee of the Board, at a level commensurate
with Executive’s position at the time awards are granted and on the same general terms and conditions as apply to the other
executive officers of the Company.

 

g.           Welfare
Benefit Plans; Perquisites. During the Term, Executive and Executive’s eligible dependents shall be eligible for participation
in such welfare benefit plans, practices, policies and programs maintained by the Company from time to time (including, without
limitation, medical, dental, life and disability insurance plans and programs) generally for executive officers (“Welfare
Plans”), subject to the eligibility and other terms and conditions of such plans and programs. The Company reserves the
right to amend, change and terminate its policies, programs and employee benefit plans in accordance with their terms at any time
during the Term.

 

    	-4-

    	 

    

 

h.           Business
Expenses. Executive shall be reimbursed for all necessary and reasonable business expenses incurred by Executive in carrying
out his duties and responsibilities hereunder and will be covered by any supplemental travel and business expense reimbursement
policies in effect for executive officers of the Company. Executive shall comply with the Company’s expense procedures that
generally apply to other Company executive officers in accordance with the policies, practices and procedures of the Company as
in effect from time to time.

 

4.           Termination
for Cause. This Agreement and Executive’s employment hereunder may be terminated immediately at any time by the Company
for Cause without any liability owing to Executive or Executive’s beneficiaries under this Agreement, except for (i) Base
Salary through the date of termination, payable in accordance with the Company’s customary payroll practices, (ii) any unreimbursed
business expenses incurred in accordance with Company policy through the date of termination, and (iii) accrued and/or vested benefits
under any plan or agreement covering Executive which shall be governed by the terms of such plan or agreement (the “Accrued
Obligations”).

 

For purposes of this Agreement, “Cause” shall
mean:

 

a.           willful
failure to perform the principal elements of Executive’s duties to the Company or any of its subsidiaries, which failure
is not cured within twenty (20) days following written notice to Executive specifying the conduct to be cured;

 

b.           conviction
of or plea of nolo contendere to a felony (regardless of the nature of the felony) or any other crime involving dishonesty,
fraud or moral turpitude;

 

c.           gross
negligence or misconduct (including but not limited to acts of fraud, criminal activity or professional misconduct) in connection
with the performance of Executive’s duties and responsibilities to the Company or any of its subsidiaries;

 

d.           failure
to substantially comply with the rules and policies of the Company or any of its subsidiaries governing employee conduct or with
the lawful directives of the Board or the CEO, if Executive is required to report to the CEO; or

 

e.           material
breach by Executive of this Agreement or any breach of the Non-Disclosure Agreement, including any of the representations and warranties
contained herein or therein.

 

For purposes of the foregoing definition, no act, or failure
to act, on the part of Executive shall be considered “willful” unless it is done, or omitted to be done, by Executive
in bad faith or without reasonable belief that Executive’s action or omission was in the best interests of the Company and
its subsidiaries.

 

5.           Termination
Upon Death. Notwithstanding anything herein to the contrary, this Agreement and Executive’s employment hereunder
shall terminate immediately upon Executive’s death, and the Company shall have no further liability to Executive, his estate
or his beneficiaries under this Agreement, except for the Accrued Obligations.

 

    	-5-

    	 

    

 

6.           Disability.

 

a.           If
the Company determines in good faith that a Disability (as defined below) has occurred during the Term, the Company may give Executive
written notice of its intention to terminate Executive’s employment and this Agreement on account of such Disability. In
such event, Executive’s employment with the Company and this Agreement shall terminate effective on the date provided in
such notice (the “Disability Effective Date”). If Executive’s employment is terminated by reason of Disability,
this Agreement shall terminate without further obligations to Executive, except for the Accrued Obligations.

 

b.           For
purposes of this Agreement, “Disability” shall mean: (i) a long-term disability entitling Executive to receive
benefits under the Company’s long-term disability plan as then in effect or under Executive’s portable long-term disability
insurance policy; or (ii) if no such plan is then in effect or, in the case of the plan, the plan is in effect but does not apply
to Executive, then “Disability” shall be as defined pursuant to Section 409A of the Internal Revenue Code of 1986,
as amended (the “Code”). Under this Section 6, unless otherwise required by law, the existence of a Disability
shall be determined by the Company, only upon receipt of a written medical opinion from a qualified, independent physician selected
by or acceptable to the Company and Executive. In this circumstance, to the extent permitted by law, Executive shall, if reasonably
requested by the Company, submit to a physical examination by that qualified physician. All fees and expenses of any such physician
shall be borne solely by the Company.

 

7.           Termination
by the Company without Cause or by Executive for Good Reason. The Company may terminate Executive’s employment and
this Agreement without Cause by providing thirty (30) days’ prior written notice of such termination. If this Agreement and
Executive’s employment hereunder is terminated by the Company without Cause or by Executive for Good Reason (it being understood
by the parties that termination by death or Disability shall not constitute a termination without Cause), then Executive shall
be entitled to the Accrued Obligations, and, conditioned upon the execution and effectiveness of a release substantially in the
form attached hereto as Exhibit B (the “Release”), the benefits set forth in subsections (a) and (b) below (the
“Severance Benefits”). For all purposes under Section 6 and this Section 7, any payments due to Executive solely
as a result of a termination of his employment that is not a “separation from service” shall be postponed until the
occurrence of a “separation from service” (or such earlier permitted event) to the extent necessary to satisfy Section
409A of the Code. The Release shall not impose any other restrictive covenants on Executive other than any that are set forth in
the Non-Disclosure Agreement and shall not extend to: (i) those rights which as a matter of law cannot be waived; (ii) claims,
causes of action or demands of any kind that may arise after the date the Release is executed and that are based on acts or omissions
occurring after such date; (iii) claims for indemnification or contribution under any operative documents of the Company or its
subsidiaries, or claims for coverage under any directors and officers insurance policy applicable to Executive; (iv) claims under
the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”); (v) claims with respect to
accrued, vested benefits under any employee benefit plan; and (vi) claims to enforce the terms of the Release.

 

    	-6-

    	 

    

 

a.           On
the sixtieth (60th) day after Executive’s termination of employment, but contingent upon the execution and effectiveness
of the Release prior to such date, subject to Executive’s continued compliance with the Non-Disclosure Agreement and Section
10 of this Agreement, up to the date of any such payment or benefit, and subject to Section 11(p) below, Executive shall be entitled
to payment, in a lump sum, of an amount equal to the Base Salary that would have been payable over a twelve (12) month period;
provided, however, that such amount shall be equal to the Base Salary that would have been payable over a twenty-four
(24) month period if Executive terminates employment for Good Reason pursuant to Section 7(d)(v) or 7(d)(vi).

 

b.           In
the event Executive is entitled to the benefit under Section 7(a), then for a period of twelve (12) months following the date of
termination, Executive and his covered dependents shall continue to be eligible to participate in the Welfare Plans with the same
level of coverage, upon the same coverage limits, deductibles, co-insurance provisions and other terms and conditions as existed
immediately prior to termination of employment, with COBRA continuation coverage (and similar state law coverage) beginning after
the expiration of such twelve (12) month period. Notwithstanding this Section 7(b), in the event that the provision of the continued
coverage described herein is legally prohibited, or could subject either the Company or Executive to any material tax or penalty,
after consulting with Executive, the Company shall be permitted to modify such coverage so as to comply with applicable law and
avoid any such tax or penalty.

 

c.           In
the event that it is acknowledged by Executive in writing or determined by the Company that there has been a material breach by
Executive of any continuing obligations under Section 10 of this Agreement or a material provision of the Non-Disclosure Agreement,
Executive shall forfeit, or if already paid, pay back to the Company upon demand one hundred percent (100%) of the amount of the
Severance Benefits (i.e., before any reductions for federal, state, local or other taxes withheld on such amount); provided,
however, that Executive shall be given not less than twenty (20) business days’ written notice of the Company’s
intention to forfeit the Severance Benefits, such notice to state in detail the particular act or acts or failure or failures to
act that constitute the grounds on which the proposed forfeiture is based, and such forfeiture shall be effective at the expiration
of such twenty (20) business day notice period unless Executive has fully cured such act or acts or failure or failures to act
that give rise to such forfeiture during such period provided such acts or failures are subject to cure (as determined by the Company
in its reasonable discretion). Nothing in this Section 7(c) shall be construed as prohibiting the Company from pursuing any other
remedies available to it in the event of a breach of Section 10 of this Agreement or the Non-Disclosure Agreement.

 

d.           For
purposes of this Agreement, “Good Reason” shall mean, without Executive’s written consent:

 

(i)          a
material reduction in Executive’s then current Base Salary or annual bonus or LTIP opportunity;

 

(ii)         a
relocation of Executive’s principal place of business outside of New York City;

 

(iii)        a
material breach of this Agreement by the Company;

 

    	-7-

    	 

    

 

(iv)        any
diminution of Executive’s title;

 

(v)         a
material diminution in Executive’s duties, authorities or responsibilities as set forth in Section 2(a) of this Agreement
or any breach of the second sentence of Section 2(a);

 

(vi)        a
change in the reporting structure whereby (A) Executive is required to report to a Company officer other than the CEO or to a CEO
other than David Liu, or (B) after June 30, 2014, any one or more of the non-CEO executive officers do not report directly to Executive
or his designee; or

 

(vii)       at
any time after a Change in Control (as defined below), the material and repeated interference by the Board with the discharge of
Executive’s duties, authorities or responsibilities hereunder.

 

provided that Good Reason shall only be deemed
to have occurred if, no later than thirty (30) days following the time Executive learns of the circumstances constituting Good
Reason, Executive provides a written notice to the Company containing reasonable details of such circumstances and within thirty
(30) days following the delivery of such notice to the Company, the Company has failed to cure such circumstances. Additionally,
Executive must terminate his employment within six (6) months of Executive’s knowledge of the occurrence of the circumstances
constituting Good Reason for such termination to be Good Reason.

 

8.  
        Termination by Executive without Good Reason. 
Executive’s employment with the Company may be terminated by Executive at any time without Good Reason upon delivery of
thirty (30) days prior written notice by Executive to the Company. In the event Executive provides notice of his intent to
terminate his employment without Good Reason, the Company may thereafter terminate Executive’s employment or place
Executive on garden leave during all or a portion of the thirty (30) day notice period, which may entail, without limitation,
relieving Executive of his positions and/or duties with the Company or preventing Executive from performing his services at a
Company location. The Company’s exercise of its rights as set forth in the immediately preceding sentence shall not be
a breach of this Agreement or be considered to be a termination of Executive without Cause or constitute an event of Good
Reason. The Company shall continue to comply with its obligations under Section 3 during any period of garden leave. If
Executive’s employment is terminated by Executive without Good Reason, this Agreement shall terminate without further
obligations to Executive, except for the Accrued Obligations.

 

9.        
  Change of Control.

 

a.           In
the event this Agreement and Executive’s employment hereunder is terminated by the Company pursuant to Section 7 during the
ninety (90) day period prior to, or within one (1) year following, a Change of Control (as defined below), conditioned upon the
execution and effectiveness of the Release, Executive shall be entitled to the vesting of equity awards as set forth in Sections
9(a)(i)-(iii).

 

    	-8-

    	 

    

 

(i)          Time
Vested Restricted Stock granted under Section 3(c)(i) of this Agreement and the Stock Options awarded under Section 3(c)(iii) of
this Agreement shall vest in an amount equal to the greater of fifty percent (50%) of the amount unvested prior to such termination
or, if greater, the amount that would become vested on the first anniversary of the termination (assuming Executive had continued
employment with the Company through such date).

 

(ii)         Shares
of Performance Vested Restricted Stock granted under Section 3(c)(ii) of this Agreement that have not previously vested shall vest
upon the later of a Change of Control or the termination of employment based upon an assessment, to be made prior to such Change
of Control, that in the reasonable discretion of the Compensation Committee, the applicable objective performance goals have been
achieved for the then current or most recent performance period, as applicable. For the avoidance of doubt, any subjective performance
goals shall be disregarded.

 

(iii)        Awards
granted under the LTIP that are paid in the form of an equity award and that have not previously vested shall become vested according
to the terms of the LTIP.

 

b.           As
used in this Agreement, “Change in Control” shall be deemed to occur upon one or more of the following events:

 

(i)          the
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”) (a “Person”)) of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of fifty percent (50%) or more (on a fully diluted basis) of either
(A) the then outstanding shares of common stock of the Company, taking into account as outstanding for this purpose such stock
issuable upon the exercise of options or warrants, the conversion of convertible stock or debt, and the exercise of any similar
right to acquire such Stock (the “Outstanding Company Common Stock”) or (B) the combined voting power of
the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding
Company Voting Securities”); provided, however, that the following acquisitions shall not constitute a Change in Control:
(I) any acquisition by the Company or any of its affiliates, (II) any acquisition by any employee benefit plan sponsored
or maintained by the Company or any of its affiliates, (III) any acquisition which complies with clauses (A), (B) and (C)
of subsection (iii) of this definition, or (IV) in respect of an equity award held by a particular equity award holder,
any acquisition by the equity award holder or any group of persons including the equity award holder (or any entity controlled
by the equity award holder or any group of persons including the equity award holder);

 

(ii)         the
sale, transfer or other disposition of all or substantially all of the business or assets of the Company; or

 

    	-9-

    	 

    

 

(iii)        the
consummation of a reorganization, recapitalization, merger, consolidation, statutory share exchange or similar form of corporate
transaction involving the Company that requires the approval of the Company’s stockholders, whether for such transaction
or the issuance of securities in the transaction (a “Business Combination”), unless immediately following such
Business Combination: (A) more than fifty percent (50%) of the total voting power of (x) the entity resulting from such
Business Combination (the “Surviving Company”), or (y) if applicable, the ultimate parent entity that directly
or indirectly has beneficial ownership of sufficient voting securities eligible to elect a majority of the board of directors (or
the analogous governing body) of the Surviving Company (the “Parent Company”), is represented by the Outstanding
Company Voting Securities that were outstanding immediately prior to such Business Combination (or, if applicable, is represented
by shares into which the Outstanding Company Voting Securities were converted pursuant to such Business Combination), and such
voting power among the holders thereof is in substantially the same proportion as the voting power of the Outstanding Company Voting
Securities among the holders thereof immediately prior to the Business Combination; (B) no Person (other than any employee
benefit plan sponsored or maintained by the Surviving Company or the Parent Company), is or becomes the beneficial owner, directly
or indirectly, of fifty percent (50%) or more of the total voting power of the outstanding voting securities eligible to elect
members of the board of directors (or the analogous governing body) of the Parent Company (or, if there is no Parent Company, the
Surviving Company); and (C) at least a majority of the members of the board of directors (or the analogous governing body)
of the Parent Company (or, if there is no Parent Company, the Surviving Company) following the consummation of the Business Combination
were Board members at the time of the Board’s approval of the execution of the initial agreement providing for such Business
Combination.

 

c.           If
there is a change in ownership or control of the Company that would cause any payment or distribution by the Company or any other
Person or entity to Executive or for Executive’s benefit (whether paid or payable or distributed or distributable pursuant
to the terms of this Agreement or otherwise) (a “Payment”) to be subject to the excise tax imposed by Section
4999 of the Code (such excise tax, together with any interest or penalties incurred by Executive with respect to such excise tax,
the “Excise Tax”), then Executive will receive the greatest of the following, whichever gives Executive the
highest net after-tax amount (after taking into account federal, state, local and social security taxes): (a) the Payments or (b)
one dollar ($1) less than the amount of the Payments that would subject Executive to the Excise Tax (the “Safe Harbor
Amount”). If a reduction in the Payments is necessary so that the Payments equal the Safe Harbor Amount and none of the
Payments constitutes nonqualified deferred compensation (within the meaning of Section 409A of the Code), then the reduction shall
occur in the manner Executive elects in writing prior to the date of payment. If any Payment constitutes nonqualified deferred
compensation or if Executive fails to elect an order, then the Payments to be reduced will be determined in a manner which has
the least economic cost to Executive and, to the extent the economic cost is equivalent, will be reduced in the inverse order of
when payment would have been made to Executive, until the reduction is achieved. All determinations required to be made under this
Section 9(c), including whether and when the Safe Harbor Amount is required and the amount of the reduction of the Payments and
the assumptions to be utilized in arriving at such determination, shall be made by an independent certified public accounting firm
selected by or acceptable to the Company and Executive (the “Accounting Firm”). All fees and expenses of the
Accounting Firm shall be borne solely by the Company.

 

    	-10-

    	 

    

 

10.         No
Disparaging Statement. Executive covenants and agrees that he shall not during the Term and for twelve (12) months thereafter
(the “Non-disparagement Period”) make any communications with the intent to disparage the Company or interfere
with the Company’s existing or prospective business relationships that, in each case, is intended to, or can reasonably be
expected to, damage the Company in more than a de minimis manner. Notwithstanding the foregoing, nothing in this paragraph
shall prevent Executive from (a) responding to incorrect, disparaging or derogatory public statements to the extent necessary to
correct or refute such public statements, or (b) making any truthful statement (i) to the extent necessary in connection with any
litigation, arbitration or mediation involving this Agreement, including, but not limited to, the enforcement of this Agreement,
or the Non-Disclosure Agreement, (ii) to the extent required by law or by any court, arbitrator, mediator or administrative or
legislative body (including any committee thereof) with apparent jurisdiction or authority to order or require such person to disclose
or make accessible such information, (iii) making a normal comparative statement in the context of advertising, promotion or solicitation
of customers, without reference to Executive’s prior relationship with the Company, (iv) making any statements in the good
faith performance of Executive’s duties to the Company, or (v) rebutting any statements made by the Company or any of its
subsidiaries or their respective officers, directors, employees or other service providers. In addition, during the Non-disparagement
Period, the Company agrees that it will not, and it will instruct its senior executive officers and directors not to, make any
communications with the intent to disparage or encourage or induce others to disparage Executive, provided, that the foregoing
shall not prevent the Company or its officers, directors or employees from: (a) responding to incorrect, disparaging or derogatory
public statements to the extent necessary to correct or refute such public statements, or (b) making any truthful statement (i)
to the extent necessary in connection with any litigation, arbitration or mediation involving this Agreement, including, but not
limited to, the enforcement of this Agreement, or the Non-Disclosure Agreement, (ii) to the extent required by law or by any court,
arbitrator, mediator or administrative or legislative body (including any committee thereof) with apparent jurisdiction or authority
to order or require such person to disclose or make accessible such information, (iii) making a normal comparative statement in
the context of advertising, promotion or solicitation of customers, without reference to Executive’s prior relationship with
the Company, or (iv) rebutting any statements made by Executive. For purposes of this Section 10, the term “disparage”
includes, without limitation, comments or statements to the press or to any individual or entity with whom the Company or Executive
has a business relationship, or any public statement, that in each case is intended to, or can be reasonably expected to, damage
the Company or Executive in connection with Executive’s then current or future employment or business relationships.

 

11.         General
Provisions.

 

a.           Representations
and Warranties. Subject to this Section 11(a), to the best of his knowledge, Executive hereby represents and warrants to the
Company that Executive’s execution, delivery and performance of this Agreement does not and shall not conflict with, breach,
violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which Executive is a party or
by which Executive is bound. Executive represents that he has provided the Company with copies of any and all continuing covenants
between Executive and Executive’s prior employers relating to Executive’s conduct in connection with or following termination
of Executive’s employment with such employer. The Company acknowledges that it is entering into this Agreement with knowledge
of the terms of Executive’s former employment with Vente-Privee USA (including the non-competition terms) that have been
disclosed by Executive to the Company.

 

    	-11-

    	 

    

 

b.           Amendment.
This Agreement may be amended or modified only by a writing signed by the parties hereto.

 

c.           Binding
Agreement. This Agreement shall inure to the benefit of and be binding upon Executive, his heirs and personal representatives,
and the Company and its successors and assigns. In the event of Executive’s death prior to payment of all amounts due to
Executive under this Agreement, the remaining unpaid amounts shall be paid to Executive’s estate as and when such amounts
would have been paid to Executive had he survived.

 

d.           Waiver
of Breach. The waiver of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any other
breach.

 

e.           Indemnification.
Executive and the Company shall enter into the Indemnification Agreement for Directors and Officers as set forth in Exhibit C.
Executive shall also be covered by the Company’s insurance policy for directors and officers and the Company agrees to continue
and maintain, at the Company's sole expense, such insurance policy both during the Term and, while potential liability exists,
thereafter, on terms no less favorable than such coverage as provided to active directors and senior executive officers of the
Company.

 

f.            Unsecured
General Creditor. The Company shall neither reserve nor specifically set aside funds for the payment of its obligations under
this Agreement, and such obligations shall be paid solely from the general assets of the Company.

 

g.           Tax
Withholding. There shall be deducted from each payment under this Agreement the amount of any tax required by any governmental
authority to be withheld and paid over by the Company to such governmental authority for the account of Executive.

 

h.           Notices.

 

(i)          All
notices and all other communications provided for herein shall be in writing and delivered personally to the other designated party,
or mailed by certified or registered mail, return receipt requested, or delivered by a recognized national overnight courier service,
as follows:

 

	If to the Company to:	195 Broadway, 25th Floor
	 	New York, NY 10007
	 	Attention:  General Counsel
	 	 
	with a copy to:	Proskauer
	 	Eleven Times Square
	 	New York, New York 10036
	 	Attention: James E. Gregory, Esq.
	 	 
	If to Executive to:	(Last address of Executive on the payroll records of the Company unless otherwise directed in writing by Executive)

 

    	-12-

    	 

    

 

	with a copy to:	Willkie Farr & Gallagher LLP
	 	787 Seventh Avenue
	 	New York, New York 10019
	 	Attention: Michael A. Katz, Esq.

 

(ii)         All
notices sent under this Agreement shall be deemed given twenty-four (24) hours after sent by courier, seventy-two (72) hours after
sent by certified or registered mail and when delivered if by personal delivery.

 

(iii)        Any
party hereto may change the address to which notice is to be sent hereunder by written notice to the other parties in accordance
with the provisions of this Section.

 

i.            Governing
Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of New York (without
reference to the conflicts of laws provisions thereof). Any action, suit or other legal proceeding arising under or relating to
any provision of this Agreement shall be commenced only in a court of the State of New York located in New York City (or, if appropriate,
a federal court located within New York, New York), and the Company and Executive each consents to the jurisdiction of such a court.
The Company and Executive each hereby irrevocably waive any right to a trial by jury in any action, suit or other legal proceeding
arising under or relating to any provision of this Agreement.

 

j.            Entire
Agreement. This Agreement contains the full and complete understanding of the parties hereto with respect to the subject matter
contained herein and, unless specifically provided herein, this Agreement supersedes and replaces any prior agreement, either oral
or written, which Executive may have with the Company that relates generally to the same subject matter. In the event of any inconsistency
between this Agreement and any other plan, program, practice of or agreement with the Company, this Agreement shall control unless
such other plan, program, practice or agreement provides otherwise by specific reference to this Section 11(j).

 

k.          Assignment.
The Company may assign this Agreement to any of its affiliates or to any successor to all or substantially all of the business
and/or assets of the Company. This Agreement may not be assigned by Executive, and any attempted assignment shall be null and void
and of no force or effect. All amounts otherwise due and owing to Executive hereunder immediately prior to his death shall be paid
to his estate in the event that he dies before receipt thereof.

 

l.            Severability.
If any one or more of the terms, provisions, covenants or restrictions of this Agreement shall be determined by a court of competent
jurisdiction to be invalid, void or unenforceable, then the remainder of the terms, provisions, covenants and restrictions of this
Agreement shall remain in full force and effect, and to that end the provisions hereof shall be deemed severable.

 

    	-13-

    	 

    

 

m.           Survival.
The provisions of Sections 5, 6, 7, 8, 9, 10 and 11 of this Agreement and the Non-Disclosure Agreement shall survive any termination
of Executive’s employment and any termination of this Agreement. For the avoidance of doubt, any defined terms used in any
of such surviving provisions shall continue to have the meanings ascribed to such terms in this Agreement post termination of Executive’s
employment and termination of this Agreement.

 

n.           Section
Headings. The Section headings set forth herein are for convenience of reference only and shall not affect the meaning or interpretation
of this Agreement whatsoever.

 

o.           Voluntary
Agreement. Executive and the Company represent and agree that each has reviewed all aspects of this Agreement, has carefully
read and fully understands all provisions of this Agreement, and is voluntarily entering into this Agreement. Each party represents
and agrees that such party has had the opportunity to review any and all aspects of this Agreement with legal, tax or other adviser(s)
of such party’s choice before executing this Agreement.

 

p.           Nonqualified
Deferred Compensation Omnibus Provision. It is intended that any payment or benefit which is provided pursuant to or in connection
with this Agreement which is considered to be a deferral of compensation within the meaning of Section 409A of the Code shall be
paid and provided in a manner, and at such time and in such form, as complies with the applicable requirements of Section 409A
of the Code to avoid the unfavorable tax consequences provided therein for noncompliance and, accordingly, to the maximum extent
permitted, this Agreement shall be interpreted to be in accordance with such intent. The provisions of this Section 11(p) shall
qualify and supersede all other provisions of this Agreement as necessary to fulfill the foregoing intention while to the maximum
possible extent preserving the economic benefits otherwise intended hereunder. In connection with effecting such compliance with
Section 409A of the Code, the following shall apply:

 

(i)          Notwithstanding
any other provision of this Agreement, the Company is authorized, after consulting with Executive, to amend this Agreement, to
void or amend any election made by Executive under this Agreement and/or to delay the payment of any monies and/or provision of
any benefits in such manner as may be necessary to comply, or to evidence or further evidence required compliance, with Section
409A of the Code. Any such amendment shall be made in good faith and shall, to the maximum extent reasonably possible, maintain
the original intent and economic benefit to Executive of the applicable provision without violating the provisions of Section 409A
of the Code.

 

(ii)         Neither
Executive nor the Company shall take any action to accelerate or delay the payment of any monies and/or provision of any benefits
in any manner which would not be in compliance with Section 409A of the Code. Notwithstanding the foregoing:

 

(A)         Payment
may be delayed for a reasonable period in the event the payment is not administratively practical due to events beyond the recipient’s
control such as where the recipient is not competent to receive the benefit payment, there is a dispute as to the amount due or
the proper recipient of such benefit payment, additional time is needed to calculate the amount payable, or the payment would jeopardize
the solvency of the Company; and

 

    	-14-

    	 

    

 

(B)         Payments
shall be delayed in the following circumstances: (1) where the Company reasonably anticipates that the payment will violate
the terms of a loan agreement to which the Company is a party and that the violation would cause material harm to the Company;
or (2) where the Company reasonably anticipates that the payment will violate federal securities laws or other applicable
laws; provided that any payment delayed by operation of this clause (B) will be made at the earliest date at which the Company
reasonably anticipates that the payment will not be limited or cause the violations described;

 

Provided, such delay in payment shall occur only in
a manner that satisfies the requirements of Section 409A of the Code and regulations thereunder.

 

(iii)        If
at the time of any separation from service Executive is a specified employee at a time in which the Company (or successor) is a
publicly traded corporation, within the meaning of Section 409A(a)(2)(B)(i) of the Code and regulations thereunder, to the minimum
extent required to satisfy Section 409A(a)(2)(B)(i) of the Code and regulations thereunder, any payment or provision of benefits
to Executive in connection with his separation from service (as determined for purposes of Section 409A of the Code) shall be postponed
and paid in a lump sum on the first business day following the date that is six months after Executive’s separation from
service (the “409A Deferral Period”), and the remaining payments due to be made in installments or periodically
after the 409A Deferral Period shall be made as otherwise scheduled. In the event benefits are required to be so postponed, any
such benefit may be provided during the 409A Deferral Period at Executive’s expense, with Executive having a right to reimbursement
from the Company promptly after the 409A Deferral Period ends, and the balance of the benefits shall be provided as otherwise scheduled.

 

(iv)        If
a “change of ownership or effective control of the Company or of the ownership of a substantial portion of the assets of
the Company” under Section 280G of the Code (“280G CiC”) occurs which does not constitute a change in
ownership of the Company or in the ownership of a substantial portion of the assets of the Company as provided in Section 409A(a)(2)(A)(v)
of the Code, then payment of any amount or provision of any benefit payable pursuant to such 280G CiC under this Agreement which
is considered to be a deferral of compensation subject to Section 409A of the Code shall be postponed until another permissible
payment event contained in Section 409A of the Code occurs (e.g., death, disability, separation from service from the Company and
its affiliated companies as defined for purposes of Section 409A of the Code), including any deferral of payment or provision of
benefits for the 409A Deferral Period as provided above.  

 

    	-15-

    	 

    

 

(v)         References
under this Agreement to Executive’s termination of employment shall be deemed to refer to the date upon which Executive has
experienced a “separation from service” within the meaning of Section 409A of the Code. All payments made under this
Agreement shall constitute “separate payments” for purposes of Section 409A of the Code. To the extent any reimbursements
or in-kind benefits due to Executive under this Agreement constitute “deferred compensation” under Section 409A of
the Code, any such reimbursements or in-kind benefits shall be paid to Executive in a manner consistent with Treas. Reg. Section
1.409A-3(i)(1)(iv).

 

q.           No
Mitigation; Offset. Executive shall not be required to mitigate damages or the amount of any payment provided for under this
Agreement by seeking (and, without limiting the generality of this sentence, no payment otherwise required under this Agreement
shall be reduced on account of) other employment or otherwise. Subject to applicable law, payments under this Agreement shall be
subject to offset in respect of any claims which the Company may have against Executive.

 

[Signature Page Follows This Page]

 

    	-16-

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have
executed, or caused their duly authorized representatives to execute, this Agreement to be effective as of the date first written
above.

 

	 	“COMPANY”
	 	 	 
	 	By:	/s/ DAVID LIU
	 	 	Name: David Liu
	 	 	Title: Chief Executive Officer
	 	 	 
	 	“EXECUTIVE”
	 	 
	 	/s/ MICHAEL STEIB
	 	Michael Steib

 

    	-17-

    	 

    

 

Exhibit
A

 

EMPLOYEE NON-DISCLOSURE, NON-COMPETITION
AND INVENTION ASSIGNMENT AGREEMENT

 

    	-18-

    	 

    

 

Exhibit
B

 

RELEASE

 

    	-19-

    	 

    

 

Exhibit C

 

INDEMNIFICATION AGREEMENT

 

    	-20-

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