Document:

EX-10.1

 Exhibit 10.1 

WRIGHT MEDICAL GROUP N.V. 

AMENDED AND RESTATED EMPLOYEE STOCK PURCHASE PLAN 

(As amended and restated on June 28, 2016) 

1. Purpose. This Wright Medical Group N.V. Amended and Restated Employee Stock Purchase Plan (the “Plan”) is intended
to advance the interests Wright Medical Group N.V., a public limited liability company (naamloze vennootschap) organized under the laws of The Netherlands, or any successor thereto (the “Company”), and its shareholders by
providing Eligible Employees of the Company and each Designated Subsidiary with opportunities to acquire Shares on favorable terms through payroll deductions. The Plan amends and restates the Tornier N.V. 2010 Employee Stock Purchase Plan, as
amended. The Plan is intended to qualify as an “employee stock purchase plan” under Section 423 of the United States Internal Revenue Code of 1986, as amended (the “Code”), and will be construed so as to extend and
limit participation in a manner consistent with the requirements of Section 423 of the Code. Notwithstanding the foregoing, the Company may establish one or more sub-plans of the Plan which do not qualify as an employee stock purchase plan
under Section 423 of the Code for Eligible Employees of Designated Subsidiaries in countries outside of the United States in order to achieve tax, employment, securities law or other purposes and objectives, and to conform the terms of the Plan
with the laws and requirements of such countries in order to allow such Eligible Employees to purchase Shares in a manner similar to the Plan. 

2. Definitions. For purposes of the Plan, the following terms shall be defined as set forth below: 

(a) “Board” shall mean the Board of Directors of the Company. 

(b) “Committee” shall mean the Compensation Committee of the Board or a subcommittee thereof consisting solely of not less
than two members of the Board who are “non-employee directors” within the meaning of Rule 16b-3 under the Exchange Act. 
 (c)
“Company Group” shall mean the Company, together with each Designated Subsidiary. 
 (d) “Compensation”
shall mean regular straight-time earnings and commissions that are included in regular compensation, including amounts that would have constituted compensation but for a Participant’s election to defer or reduce compensation pursuant to any
deferred compensation, cafeteria, capital accumulation or any other similar plan of the Company and including overtime and shift premium, but excluding all other amounts such as amounts attributable to stock-based, cash-based and other incentive
compensation and bonuses (except to the extent that the inclusion of any such item is specifically directed by the Committee), determined in a manner consistent with the requirements of Section 423 of the Code. 

(e) “Designated Subsidiary” shall mean a Subsidiary that has been designated by the Board from time to time, in its sole
discretion, as eligible to participate in the Plan. 

 (f) “Eligible Employee” shall mean an Employee of the Company or a Designated
Subsidiary (i) who would not, immediately after an option is granted to such Employee hereunder, own Shares possessing five percent (5%) or more of the total combined voting power or value of all classes of shares of the Company or any
Subsidiary (as determined under Section 423(b)(3) of the Code); (ii) whose customary employment is for more than twenty (20) hours per week; and (iii) whose customary employment is for more than five (5) months in any
calendar year. For purposes of clause (i) of this subsection (f), the rules of Section 424(d) of the Code with regard to the attribution of share ownership shall apply in determining the share ownership of an individual, and Shares
which an Employee may purchase under outstanding options shall be treated as shares owned by the Employee. Notwithstanding anything herein to the contrary, Employees who are citizens or residents of a jurisdiction outside the United States (without
regard to whether they are citizens of the United States or resident aliens (within the meaning of Section 7701(b)(1)(A) of the Code)) shall not be considered Eligible Employees for purposes of the Plan if (x) the grant of an option
hereunder or any Offering to a citizen or non-U.S. resident of such non-U.S. jurisdiction is prohibited by the laws of such jurisdiction, or (y) compliance with the laws of such non-U.S. jurisdiction would cause the Plan or any Offering to
violate the requirements of Section 423 of the Code. 
 (g) “Employee” shall mean any person, including an officer,
who renders services to the Company or a Designated Subsidiary in the status of an employee within the meaning of Section 3401(c) of the Code. “Employee” shall not include any director of the Company or a Designated Subsidiary who
does not render services to the Company or a Designated Subsidiary in the status of an employee within the meaning of Section 3401(c) of the Code. For purposes of the Plan, the employment relationship shall be treated as continuing intact
while the individual is on sick leave or other leave of absence approved by the Company or Designated Subsidiary and meeting the requirements of Treasury Regulation Section 1.421-7(h)(2). Where the period of leave exceeds ninety (90) days
and the individual’s right to reemployment is not guaranteed either by statute or by contract, the employment relationship shall be deemed to have terminated on the ninety first
(91st) day of such leave. 
 (h) “Employer” shall mean, with
respect to a Participant, the member of the Company Group by which the Participant is principally employed. 
 (i) “Enrollment
Date” shall mean the first Trading Day of each Offering Period. 
 (j) “Exchange Act” shall mean the United States
Securities Exchange Act of 1934, as amended. 
 (k) “Exercise Date” shall mean the last Trading Day of each Offering
Period. 
 (l) “Fair Market Value” shall mean, with respect to the Shares, as of any date: (i) the closing sale price
of the Shares as of such date at the end of the regular trading session, as reported by the Nasdaq Stock Market, the New York Stock Exchange, the NYSE/MKT LLC or any national securities exchange on which the Shares are then listed or quoted (or, if
no shares were traded on such date, as of the next preceding date on which there was such a trade); (ii) if 

  
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the Shares are not so listed, admitted to unlisted trading privileges, or reported on any national securities exchange, the closing sale price as of such date at the end of the regular trading
session, as reported by the OTC Bulletin Board or the OTC Markets Group, Inc., or other comparable service (or, if no shares were traded or quoted on such date, as of the next preceding date on which there was such a trade or quote); or
(iii) if the Shares are not so listed or reported, such price as the Committee determines in its sole discretion in a manner acceptable under Section 423 of the Code. 

(m) “New Exercise Date” is defined in Section 19(b) below. 

(n) “Offering” means any of the offerings to Participants of options to purchase Shares under the Plan, as described in
Section 4 below. 
 (o) “Offering Period” is defined in Section 4 below. 

(p) “Participant” shall mean an Eligible Employee who participates in the Plan pursuant to Section 5 of the Plan. 

(q) “Purchase Price” shall mean eighty five percent (85%) of the Fair Market Value of one Share on the Enrollment Date
or on the Exercise Date, whichever is lower; provided, however, that the Purchase Price may be adjusted by the Committee pursuant to Section 19 of the Plan; provided, further, that the Purchase Price shall not be
less than the par value of one Share. 
 (r) “Securities Act” shall mean the United States Securities Act of 1933, as
amended. 
 (s) “Shares” shall mean the ordinary shares, par value €0.03 per share, of the Company, or the number
and kind of shares of stock or other securities into which such ordinary shares may be changed in accordance with Section 13 of the Plan. 

(t) “Subsidiary” shall mean any subsidiary corporation of the Company within the meaning of Section 424(f) of the Code.

 (u) “Trading Day” shall mean a day on which the principal exchange on which the Shares are traded is open for trading.

 3. Eligibility. 

(a) Any Employee who is an Eligible Employee on the Enrollment Date for an Offering Period (as defined in Section 4 below) shall be
eligible to participate in the Plan during such Offering Period, subject to the requirements of Section 3(b) of the Plan and the limitations imposed by Section 423(b) of the Code. 

(b) No Eligible Employee shall be granted an option under the Plan if the amount of payroll deductions that the Eligible Employee has elected
to have withheld under such option (pursuant to Section 5 below) would permit the Eligible Employee to purchase Shares 

  
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under all “employee stock purchase plans” (within the meaning of Section 423 of the Code) of the Company or any Subsidiary to accrue (i.e., become exercisable) at a rate
that exceeds twenty five thousand dollars (USD $25,000) of the Fair Market Value of such Shares (determined as of the Enrollment Date) for each calendar year in which such option is outstanding at any time. 

4. Offering Periods. Options to purchase Shares shall be offered to Participants under the Plan through a continuous series of
Offerings, each continuing for six months and each of which shall commence on January 1 and July 1 of each year, as the case may be, and shall terminate on June 30 and December 31 of such year, as the case may be (each such
period being, an “Offering Period”); provided, however, that (a) the Committee may suspend Offerings under the Plan or any Offering Period at any time and for any reason and (b) the first Offering
Period under the Plan and any subsequent Offering Period commenced immediately after a suspension of the Plan shall have an Enrollment Date and Exercise Date as determined by the Committee in its sole discretion. Offerings under the Plan shall
continue until either (i) the Committee decides, in its sole discretion, (x) to suspend Offerings under the Plan or (y) that no further Offerings shall be made because the number of Shares remaining available under the Plan is
insufficient to make an Offering to all Eligible Employees, or (ii) the Plan is terminated under Section 20 below. Notwithstanding the foregoing, and without limiting the authority of the Committee under Sections 14, 19 and 20 of the
Plan, the Committee, in its sole discretion, may (a) accelerate the Exercise Date of the then current Offering Period and provide for the exercise of options thereunder by Participants in accordance with Section 8 of the Plan, or
(b) accelerate the Exercise Date of the then current Offering Period and provide that all payroll deductions credited to the accounts of Participants will be paid to Participants as soon as practicable after such Exercise Date and that all
options for such Offering Period will automatically be canceled and will no longer be exercisable, if such change is announced at least five (5) days prior to the newly scheduled Exercise Date. 

5. Participation. 
 (a)
Each Eligible Employee may become a Participant with respect to any Offering Period by completing a subscription agreement authorizing payroll deductions in a form acceptable to the Committee and filing it with the Company (or its designated
third-party stock plan administrator) at least fifteen (15) calendar days (or a different number of days as may be determined by the Committee, in its sole discretion) prior to the first day of such Offering Period. A Participant’s
completion of a subscription agreement with respect to any Offering Period will enroll such Participant in the Plan for each subsequent Offering Period on the terms contained therein until the Participant either submits a new subscription agreement,
withdraws from participation under the Plan as provided in Section 10 of the Plan, or otherwise becomes ineligible to participate in the Plan. 

(b) Payroll deductions for a Participant shall commence on the first payday following the Enrollment Date and shall end on the last payday in
the Offering Period with respect to which such authorization is applicable, unless sooner terminated by the Participant as provided in Section 10 of the Plan. 

  
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 (c) During a Participant’s leave of absence approved by the Participant’s Employer and
meeting the requirements of Treasury Regulation Section 1.421-7(h)(2), such Participant may continue to participate in the Plan by making cash payments to the Company on each payday equal to the amount of the Participant’s payroll
deductions under the Plan for the payday immediately preceding the first day of such Participant’s leave of absence. If a leave of absence is unapproved or fails to meet the requirements of Treasury Regulation Section 1.421-7(h)(2), the
Participant will automatically cease to participate in the Plan and may not make any further contributions to the Plan hereunder. In such event, the Company will automatically cease to deduct the Participant’s payroll under the Plan. The
Company will pay to the Participant his or her total payroll deductions for the Offering Period, in cash in one lump sum (without interest), as soon as practicable after the Participant ceases to participate in the Plan. 

(d) The subscription agreement(s) used in connection with the Plan shall be in a form prescribed by the Committee, and the Committee may, in
its sole discretion, determine whether such agreement shall be submitted in written or electronic form. 
 6. Payroll Deductions.

 (a) At the time a Participant files a subscription agreement, such Participant shall elect to have payroll deductions made on each payday
(such amount to be deducted after any applicable deduction for tax and other withholding) during the Offering Period in an amount from one percent (1%) to twenty percent (20%) of the Compensation which the Participant receives on each pay
day during the Offering Period. 
 (b) All payroll deductions made for a Participant shall be credited to his or her account under the Plan
and shall be withheld in whole percentages only. Except as described in Section 5(c) of the Plan, a Participant may not make any additional payments into such account. 

(c) A Participant may discontinue his or her participation in the Plan as provided in Section 10 of the Plan. A Participant may not
increase or decrease the rate of his or her payroll deductions during the Offering Period. 
 (d) Notwithstanding the foregoing, to the
extent necessary to comply with Section 423(b)(8) of the Code and Section 3(b) of the Plan, a Participant’s payroll deductions may be decreased to zero percent (0%) at any time during an Offering Period. 

(e) At the time an option is exercised, in whole or in part, or at the time some or all of the Shares issued under the Plan are disposed of,
the Participant must make adequate provision for any foreign, U.S. federal, state, or other tax obligations, if any, which arise upon the exercise of the option or the disposition of the Shares. At any time, the Company may, but shall not be
obligated to, withhold from all of the Participant’s compensation the amount necessary for the Company to meet applicable withholding obligations, including any withholding required to make available to the Company any tax deductions or
benefits attributable to the sale or early disposition of Shares by the Participant. 
 7. Grant of Option. On the Enrollment Date of
each Offering Period, each Participant in such Offering Period shall be granted an option to purchase on the Exercise Date 

  
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with respect to such Offering Period (at the applicable Purchase Price) up to a number of the Shares determined by dividing such Participant’s payroll deductions accumulated prior to such
Exercise Date and retained in the Participant’s account as of the Exercise Date by the applicable Purchase Price; provided, however, that (i) such purchase shall be subject to the limitations set forth in Sections 3 and 13 of the
Plan, and (ii) in no event may more than one thousand (1,000) Shares be purchased by any Participant during any Offering Period. Exercise of the option shall occur as provided in Section 8 of the Plan, unless the Participant has
withdrawn from participation pursuant to Section 10 of the Plan or otherwise becomes ineligible to participate in the Plan. The option shall expire on the last day of the Offering Period. 

8. Exercise of Option. 

(a) Unless a Participant withdraws from the Plan as provided in Section 10 of the Plan or otherwise becomes ineligible to participate in
the Plan, such Participant’s option for the purchase of Shares shall be exercised automatically on the Exercise Date, and the maximum number of full Shares subject to the option shall be purchased for such Participant at the applicable Purchase
Price with the accumulated payroll deductions in his account. No fractional Shares shall be purchased, and any payroll deductions accumulated in a Participant’s account which are not sufficient to purchase a full Share shall be retained in such
Participant’s account for the subsequent Offering Period. During a Participant’s lifetime, a Participant’s option to purchase Shares hereunder is exercisable only by such Participant. 

(b) If the Committee determines that, on a given Exercise Date, the number of Shares with respect to which options are to be exercised may
exceed (i) the number of Shares that were available for sale under the Plan on the Enrollment Date of the applicable Offering Period (notwithstanding any authorization of additional Shares for issuance under the Plan by the Company’s
shareholders subsequent to such Enrollment Date); (ii) the number of Shares available for sale under the Plan on such Exercise Date; or (iii) the number of Shares available for sale on such Exercise Date, the Committee shall provide that
the Company (or its designated third-party stock plan administrator) shall make a pro rata allocation of the Shares available for purchase on such Enrollment Date or Exercise Date, as applicable, in as uniform a manner as shall be practicable and as
it shall determine in its sole discretion to be equitable among all Participants exercising options to purchase Shares on such Exercise Date, and shall decide, in its sole discretion, to either (x) continue all Offering Periods then in effect
or (y) terminate any or all Offering Periods then in effect pursuant to Section 20 of the Plan. In the event of such a pro rata allocation of Shares pursuant to this Section 8(b), the balance of the amount credited to the account of
each Participant that has not been applied to the purchase of Shares shall be paid to each such Participant in one lump sum in cash as soon as reasonably practicable after the Exercise Date, without any interest thereon. 

9. Deposit of Shares. As promptly as practicable after each Exercise Date on which a purchase of Shares occurs, the Company may arrange
for the deposit, into each Participant’s account with any broker designated by the Company to administer this Plan, of the number of Shares purchased upon exercise of each such Participant’s option. 

  
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 10. Withdrawal. 

(a) At any time prior to the Exercise Date, a Participant, by giving written notice to the Company (or its designated third-party stock plan
administrator) in a form acceptable to the Committee, may withdraw all but not less than all of the payroll deductions credited to such Participant’s account and not yet used to exercise an option under the Plan. All of the Participant’s
payroll deductions credited to his or her account during the Offering Period, plus any balance retained in his or her account from a prior Offering Period, if any, shall be paid to such Participant as soon as reasonably practicable after receipt of
notice of withdrawal, and such Participant’s option for the Offering Period shall be automatically terminated, and no further payroll deductions for the purchase of Shares shall be made for such Offering Period. If a Participant withdraws from
an Offering Period, payroll deductions shall not resume at the beginning of any subsequent Offering Period unless the Participant delivers to the Company (or its designated third-party stock plan administrator) a new subscription agreement in
accordance with the terms of Section 5(a) of the Plan. 
 (b) A Participant’s withdrawal from an Offering Period shall not have
any effect upon such Participant’s eligibility to participate in any similar plan which may hereafter be adopted by the Company or in Offering Periods which commence after the termination of the Offering Period from which the Participant
withdraws. 
 11. Termination of Employment. Upon a Participant’s ceasing to be an Eligible Employee, for any reason, such
Participant shall be deemed to have elected to withdraw from the Plan, and the payroll deductions credited to such Participant’s account during the Offering Period, plus any balance retained in his or her account from a prior Offering Period,
if any, shall be paid to the Participant, or in the case of his or her death, to the person or persons entitled thereto under Section 15 of the Plan, as soon as reasonably practicable, and such Participant’s option for the Offering Period
shall be automatically terminated. 
 12. Interest. No interest shall accrue on the payroll deductions or lump sum contributions of a
Participant in the Plan. 
 13. Shares Subject to Plan. 

(a) Subject to adjustment upon changes in capitalization of the Company as provided in Section 19 of the Plan, a maximum of five hundred
and fifty thousand (550,000) Shares shall be made available for sale under the Plan and no more than maximum of one hundred thousand (100,000) Shares may be issued on each Exercise Date. If any option granted under the Plan shall for any
reason terminate without having been exercised, the Shares not purchased under such option shall again become available for issuance under the Plan. The Shares subject to the Plan may be unissued shares or reacquired shares bought on the market or
otherwise. 
 (b) Except as otherwise provided herein, with respect to Shares subject to an option granted under the Plan, a Participant
shall not be deemed to be a shareholder of the Company, and the Participant shall not have any of the rights or privileges of a shareholder, until 

  
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such Shares have been issued to the Participant or his or her nominee following exercise of the Participant’s option. No adjustments shall be made for dividends (ordinary or extraordinary,
whether in cash securities, or other property) or distributions or other rights for which the record date occurs prior to the date of such issuance, except as otherwise expressly provided herein. 

14. Administration. 
 (a)
The Plan will be administered by the Committee. To the extent consistent with applicable corporate or other law, the Committee may delegate to any officers of the Company the duties, power and authority of the Committee under the Plan pursuant
to such conditions or limitations as the Committee may establish; provided, however, that only the Committee may exercise such duties, power and authority with respect to Participants who are subject to Section 16 of the Exchange Act.
The Committee may exercise its duties, power and authority under the Plan in its sole discretion without the consent of any Participant or other party, unless the Plan specifically provides otherwise. Each determination, interpretation or other
action made or taken by the Committee pursuant to the provisions of the Plan will be final, conclusive and binding for all purposes and on all persons, including, without limitation, the Company, the shareholders of the Company, the Participants and
their respective successors-in-interest. No member of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any option granted under the Plan. 

(b) Notwithstanding anything in the Plan to the contrary, the Committee, in its sole discretion, may establish one or more sub-plans of the
Plan which do not satisfy the requirements of Section 423 of the Code for purposes of effectuating the participation of Eligible Employees of Designated Subsidiaries incorporated in countries outside of the United States. For purposes of
the foregoing, the Committee may establish one or more sub-plans to: (a) amend or vary the terms of the Plan in order to conform such terms with the laws, rules and regulations of each country outside of the United States where a Designated
Subsidiary is located; (b) amend or vary the terms of the Plan in each country where a Designated Subsidiary is located as it considers necessary or desirable to take into account or to mitigate or reduce the burden of taxation and social
insurance contributions for Participants and/or the Designated Subsidiary; or (c) amend or vary the terms of the Plan in each country outside of the United States where a Designated Subsidiary is located as it considers necessary or desirable
to meet the goals and objectives of the Plan. All sub-plans of the Plan shall be reflected in a written Appendix to the Plan, and shall be treated as being separate and independent from the Plan; provided, the total number of Shares authorized
to be issued under the Plan shall include any Shares issued under any sub-plan established hereunder. To the extent permitted under applicable law, the Committee may delegate its authority and responsibilities hereunder to an appropriate
sub-committee consisting of one or more designated officers of the Company. 
 15. Designation of Beneficiary. 

(a) A Participant may file a written designation of a beneficiary who is to receive any Shares and cash, if any, from such Participant’s
account under the Plan in the event of such Participant’s death subsequent to an Exercise Date on which the option is exercised but prior to delivery to such Participant of such Shares and cash. In addition, a Participant may file a

  
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written designation of a beneficiary who is to receive any cash from the Participant’s account under the Plan in the event of such Participant’s death prior to exercise of the option.
To the extent required under applicable law, spousal consent shall be required for such designation to be effective if the Participant is married and the designated beneficiary is not the Participant’s spouse. 

(b) Such beneficiary designation may be changed by the Participant at any time by written notice to the Company. In the event of the death of
a Participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such Participant’s death, the Company shall deliver such Shares and/or cash to the executor or administrator of the estate of the
Participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company may, in its discretion, deliver such Shares and/or cash to the spouse or to any one or more dependents or relatives of the
Participant, or if no spouse, dependent, or relative is known to the Company, then to such other person as the Company may designate. 
 16.
Transferability. Neither payroll deductions credited to a Participant’s account nor any rights with regard to the exercise of an option or to receive Shares under the Plan may be assigned, transferred, pledged, or otherwise disposed of
in any way by the Participant (other than by will, the laws of descent and distribution, or as provided in Section 15 of the Plan). Any such attempt at assignment, transfer, pledge, or other disposition shall be without effect, except that the
Company may treat such act as an election to withdraw funds from an Offering Period in accordance with Section 10 of the Plan. 
 17.
Use of Funds. All payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions. 

18. Reports. Individual accounts shall be maintained for each Participant in the Plan. Statements of account shall be given to
Participants following each Offering Period, which statements shall set forth the amounts of payroll deductions, the Purchase Price, the number of Shares purchased, and the remaining cash balance, if any. 

19. Adjustments Upon Changes in Capitalization, Merger, Amalgamation, Asset Sale, Dissolution or Liquidation. 

(a) Changes in Capitalization. The number of Shares which have been authorized for issuance under the Plan but not yet placed under
option, the maximum number of Shares that may be issued on any Exercise Date (pursuant to Section 13 of the Plan), the maximum number of Shares each Participant may purchase in each Offering Period (pursuant to Section 7 of the Plan), as
well as the price per Share and the number of Shares covered by each option under the Plan which has not yet been exercised shall be proportionately adjusted for any increase or decrease in the number of issued Shares resulting from a stock split,
reverse stock split, stock dividend, combination, or reclassification of the Shares, or any other increase or decrease in the number of Shares effected without receipt of consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been 

  
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“effected without receipt of consideration.” Such adjustment shall be made by the Committee, whose determination in that respect shall be final, binding, and conclusive on all
Participants and the Company. Except as expressly provided herein, no issuance by the Company of shares of any class, or securities convertible into shares of any class, shall affect, and no adjustment by reason thereof shall be made with respect
to, the number or price of Shares subject to an option. 
 (b) Merger, Amalgamation, Asset Sale, Dissolution or Liquidation. In the
event of a proposed merger or amalgamation of the Company with or into another corporation or a proposed sale of all or substantially all of the assets of the Company, each outstanding option shall be assumed or an equivalent option substituted by
the successor corporation or a parent or subsidiary of the successor corporation. In the event that the successor corporation or a parent or subsidiary of the successor corporation refuses to assume or substitute for the option, or in the event of
the proposed dissolution, or liquidation of the Company, the Offering Period then in progress shall be shortened by the Committee by setting a new Exercise Date (the “New Exercise Date”), which shall occur no later than immediately
prior to the effective date of such proposed merger, amalgamation, sale, dissolution or liquidation, as applicable. The Company shall notify each Participant in writing, at least ten (10) business days prior to the New Exercise Date, that the
Exercise Date for the Participant’s option has been changed to the New Exercise Date and that the Participant’s option shall be exercised automatically on the New Exercise Date, unless prior to such New Exercise Date the Participant has
withdrawn from the Offering Period as provided in Section 10 of the Plan. 
 20. Amendment or Termination. 

(a) The Board may at any time and for any reason terminate or amend the Plan. Except as provided in Section 19 of the Plan, no such
termination shall affect options previously granted; provided, however, that an Offering Period may be terminated by the Board if the Board determines that the termination of the Offering Period or the Plan is in the best interests of the Company
and its shareholders. Except as provided in Section 19 of the Plan and this Section 20, no amendment may make any change in any option theretofore granted which adversely affects the rights of any Participant without the consent of such
Participant. To the extent necessary to comply with Section 423 of the Code (or any successor rule or provision or any other applicable law, regulation, or stock exchange rule), the Company shall obtain shareholder approval of any amendment in
such a manner and to such a degree as required. 
 (b) Without shareholder approval and without regard to whether any Participant’s
rights may be considered to have been “adversely affected,” the Committee shall be entitled to change the Offering Periods (but in no event may an Offering Period have a duration in excess of twenty seven (27) months), limit the
frequency and/or number of changes in the amount withheld during an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by
a Participant in order to adjust for delays or mistakes in the Company’s processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that
amounts applied toward the purchase of Shares for each Participant properly correspond with amounts withheld from the Participant’s Compensation, and establish such other limitations or procedures as the Committee determines in its sole
discretion advisable which are consistent with the Plan. 

  
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 (c) In the event the Board determines that the ongoing operation of the Plan may result in
unfavorable financial accounting consequences, the Board may, in its discretion and, to the extent necessary or desirable, modify, or amend the Plan to reduce or eliminate such financial accounting consequences, including, but not limited to: 

(i) altering the Purchase Price for any Offering Period including an Offering Period underway at the time of the change in Purchase Price;

 (ii) shortening any Offering Period so that the Offering Period ends on a new Exercise Date, including an Offering Period underway at
the time of the Committee action; and 
 (iii) allocating Shares. 

Such modifications or amendments shall not require shareholder approval or the consent of any Participants. 

21. Notices. All notices or other communications by a Participant to the Company under or in connection with the Plan shall be deemed
to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 

22. Conditions to Issuance of Shares. 

(a) The Company shall not be required to issue Shares purchased upon the exercise of options prior to fulfillment of all the following
conditions: 
 (i) The admission of such Shares to listing on all stock exchanges, if any, on which the Shares are then listed; 

(ii) The obtaining of any approval or other clearance from any governmental agency which the Committee shall, in its absolute discretion,
determine to be necessary or advisable; 
 (iii) Such Participant’s payment to the Company of all amounts which it is required to
withhold under foreign, U.S. federal, state or local law upon exercise of the option; and 
 (iv) The lapse of such reasonable period of
time following the exercise of the option as the Committee may from time to time establish for reasons of administrative convenience. 
 (b)
The obligation of the Company to issue Shares or otherwise shall be subject to all applicable laws, rules and regulations, and to such approvals by governmental 

  
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agencies as may be required. Notwithstanding any terms or conditions of any option to the contrary, the Company shall be under no obligation to offer to sell or to sell and shall be prohibited
from offering to sell or selling any Shares pursuant to an option unless such Shares has been properly registered for sale with the United States Securities and Exchange Commission pursuant to the Securities Act or unless the Company has received an
opinion of counsel, satisfactory to the Company, that such Shares may be offered or sold without such registration pursuant to an available exemption therefrom and the terms and conditions of such exemption have been fully complied with. The Company
shall be under no obligation to register for sale or resale under the Securities Act any of the Shares to be offered or sold under the Plan or any Shares issued upon exercise or settlement of options. If the Shares offered for sale or sold under the
Plan is offered or sold pursuant to an exemption from registration under the Securities Act, the Company may restrict the transfer of such Shares and may make a book-entry notation representing such Shares in such manner as it deems advisable to
ensure the availability of any such exemption. 
 23. Term of Plan. The Plan shall become effective as of the date the Plan is
approved by the Company’s shareholders (the “Effective Date”). Subject to approval by the shareholders of the Company in accordance with this Section 23, the Plan shall be in effect until the day before the tenth (10th) anniversary of the Effective Date, unless sooner terminated under Section 20 of the Plan. In the event the Company’s shareholders do not approve this Plan pursuant to this
Section 23, neither this Plan nor any elections made hereunder shall be of any force or effect, any outstanding option shall be cancelled for no consideration, and all amounts deducted from each Participant’s paycheck shall be repaid to
such Participant as soon as practicable without interest. 
 24. Equal Rights and Privileges. All Eligible Employees shall have equal
rights and privileges under this Plan so that this Plan qualifies as an “employee stock purchase plan” within the meaning of Section 423 of the Code. Any provision of this Plan that is inconsistent with this requirement to provide
equal rights and privileges shall, without further act or amendment by the Company, the Board or the Committee, be reformed to comply with the equal rights and privileges requirement of Section 423 of the Code. 

25. Code Section 409A. The options to purchase Shares under the Plan are not intended to constitute “nonqualified deferred
compensation” within the meaning of Section 409A of the Code. However, if at any time the Committee determines that the options may be subject to Section 409A of the Code, the Committee shall have the right, in its sole discretion, to
amend the Plan and any outstanding options as it may determine is necessary or desirable either to exempt the options from the application of Section 409A of the Code or to cause the options to comply with the requirements of Section 409A
of the Code. 
 26. No Employment Rights. Nothing in the Plan shall be construed to give any person (including any Eligible Employee
or Participant) the right to remain in the employ of the Company or a Subsidiary, or to affect the right of the Company or any Subsidiary to terminate the employment of any person (including any Eligible Employee or Participant) at any time, with or
without cause. 

  
 12 

 27. Notice of Disposition of Shares. If required by the Company, each Participant shall
give prompt notice to the Company (at its local Human Resources office), or cause a designated third-party stock administrator to give prompt notice to the Company, of any disposition or other transfer of any Shares purchased upon exercise of an
option hereunder if such disposition or transfer is made either (a) within two (2) years from the Enrollment Date of the Offering Period in which the Shares were purchased or (b) within one (1) year after the Exercise Date on
which such Shares were purchased. Such notice shall specify the date of such disposition or other transfer and the amount realized, in cash, other property, assumption of indebtedness, or other consideration, by the Participant in such disposition
or other transfer. 
 28. Tax Withholding Obligations. Regardless of any action the Company or any Designated Subsidiary takes with
respect to any or all income tax (including U.S. federal, state and local taxes and/or non-U.S. taxes), social insurance, payroll tax, payment on account or other tax-related withholding (“Tax-Related Items”), the ultimate liability
for all Tax-Related Items legally due by a Participant will be the Participant’s responsibility. If a Participant becomes subject to taxation in more than one country between the Enrollment Date and the date of any relevant taxable or tax
withholding event, as applicable, Company or any Designated Subsidiary may be required to withhold or account for Tax-Related Items in more than one country. 

29. Governing Law; Mandatory Jurisdiction. Subject to any applicable provisions of United States federal law (including, without
limitation, Section 423(b) of the Code), and except to the extent expressly provided herein or in connection with other matters of corporate governance and authority (all of which shall be governed by the laws of the Company’s jurisdiction
of incorporation), the validity, construction, interpretation, administration and effect of the Plan and any rules, regulations, and actions relating to the Plan shall be governed by and construed exclusively in accordance with the laws of the State
of Delaware in the United States of America, notwithstanding the conflicts of laws principles of any jurisdictions. Participants under the Plan are deemed to submit to the exclusive jurisdiction and venue of the federal or state courts of the State
of Delaware in the United States of America to resolve any and all issues that may arise out of or relate to the Plan or any related subscription agreement. 

*            *           
 * 

  
 13Exhibit 4(b)

 

COMMUNITY SHORES BANK CORPORATION

STOCK INCENTIVE PLAN OF 2016

 

SECTION
1

 

Establishment Of Plan; Purpose Of Plan

 

1.1         Establishment
of Plan. The Company hereby establishes the STOCK INCENTIVE PLAN OF 2016 for its Directors and certain of its Employees.
The Plan permits the grant and award of Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Stock
Awards and other stock-based awards and stock-related awards.

 

1.2         Purpose of Plan.
The purpose of the Plan is to provide Directors and Employees with an increased incentive to contribute to the long-term performance
and growth of the Company and its Subsidiaries, to join the interests of Directors and Employees with the interests of the Company’s
shareholders through the opportunity for increased stock ownership and to attract and retain Participants. The Plan is further
intended to provide flexibility to the Company in structuring long-term incentive compensation to best promote the foregoing objectives.

 

1.3         Approval of Plan
and Incentive Awards. The Plan will be effective upon approval by the Company’s shareholders. The Plan contemplates that
Directors may be Participants and that the Directors, as members of either the Board or of a committee of the Board, may approve
grants of Incentive Awards to Directors. Approval of the Plan by the Company’s shareholders shall constitute authorization
and approval of such grants.

 

SECTION 2

 

Definitions

 

The following words have
the following meanings unless a different meaning plainly is required by the context:

 

2.1         “Act”
means the Securities Exchange Act of 1934, as amended.

 

2.2         “Affiliate”
means any organization controlling, controlled by or under common control with the Company.

 

2.3         “Board”
means the Board of Directors of the Company.

 

     

     

    

 

2.4         “Cause”
means, with respect to termination of employment, (1) willful continued failure to perform or willful poor performance of duties
(other than due to Disability) after warning and reasonable opportunity to meet reasonable required performance standards; (2)
gross negligence causing or putting the Company or any Affiliate at risk of significant damage or harm; (3) misappropriation of
or intentional damage to the property of the Company or any Affiliate; (4) conviction of a felony (other than negligent vehicular
homicide); (5) intentional act or omission that the Participant knows or should know is significantly detrimental to the interests
of the Company or any Affiliate; (6) removal of an Employee by order of or at the direction of a regulatory agency having jurisdiction
over the Company or any of its Subsidiaries; or (7) material violation of any employment agreement between the Company (or any
Affiliate) and the Participant. Notwithstanding the foregoing, if a Participant's employment agreement defines "Cause,"
then that definition shall apply to that Participant in lieu of the definition in this Plan. The existence of Cause for termination
of employment shall in each case be determined by the Committee in its sole discretion and consistent with the definition set forth
in this Section 2.4, provided, that in the event of a Change in Control, "Cause" as defined in subsection (2)
shall be determined by the then Directors, if any, who were Directors prior to the Change in Control or if none exist, by the Committee
as in existence prior to the Change in Control. The Committee may make such determination before or after the termination
of employment.

 

A Director will be removed
for “Cause” for purposes of this Plan if and only if he or she has been removed for cause in compliance with the Company’s
Articles of Incorporation and applicable law.

 

2.5         “Change
in Control,” unless otherwise defined in an Incentive Award agreement, means (a) the failure of the Continuing
Directors at any time to constitute at least a majority of the members of the Board; (b) the acquisition by any Person other
than an Excluded Holder of beneficial ownership (within the meaning of Rule 13d-3 issued under the Act) of 50% or more of the
outstanding Common Stock or the combined voting power of the Company’s outstanding securities entitled to vote generally
in the election of directors; (c) a reorganization, merger or consolidation other than such a transaction (i) that is done
for the purpose of reincorporation or (ii) after which the Company’s shareholders immediately prior to the transaction continue
to beneficially own more than 50% of the total fair market value and total voting power of the outstanding capital stock of the
entity surviving the transaction; (d) a complete liquidation or dissolution of the Company or the sale or disposition of
all or substantially all of the assets of the Company; (e) the occurrence of a nature that would be required to be reported in
response to Item 6(e) of Schedule 14A of Regulation 14A issued under the Act.

 

2.6         “Code”
means the Internal Revenue Code of 1986, as amended. Each reference herein to a section or sections of the Code shall, unless otherwise
noted, be deemed to include a reference to the rules and regulations issued under such section or sections of the Code.

 

2.7         “Committee”
means the Compensation Committee of the Board or such other committee as the Board may designate from time to time. The Committee
shall consist of at least two Directors and all of its members shall be “non-employee directors” as defined in Rule
16b-3 issued under the Act and “outside directors” as defined in Section 162(m) of the Code.

 

    2 

     

    

 

2.8         “Common
Stock” means the Company’s common stock, no par value.

 

2.9         “Company”
means Community Shores Bank Corporation, a Michigan corporation, and its successors and assigns.

 

2.10       “Continuing
Directors” means the individuals constituting the Board as of the date this Plan was adopted and any subsequent directors
whose election or nomination for election by the Company’s shareholders was approved by a vote of a majority of the individuals
who are then Continuing Directors, but specifically excluding any individual whose initial assumption of office occurs as a result
of either an actual or threatened solicitation subject to Rule 14a-12(c) of Regulation 14A issued under the Act or other actual
or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board.

 

2.11       “Covered
Employee” means any Employee who is or may become a “Covered Employee,” as defined in Section 162(m) of the
Code, and who is designated, either as an individual Employee or class of Employees, by the Committee within the shorter of (i) 90
days after the beginning of the Performance Period, or (ii) the period of time after the beginning of the Performance Period
and before 25% of the Performance Period has elapsed, as a “Covered Employee” under this Plan for such applicable Performance
Period.

 

2.12       “Director”
means a member of the Board.

 

2.13       “Disability”
means a permanent disability as determined by the Committee in its discretion.

 

2.14       “Employee”
means an employee of the Company or one of its Subsidiaries.

 

2.15       “Employee
Benefit Plan” means any plan or program established by the Company or a Subsidiary for the compensation or benefit of
Employees.

 

2.16       “Excluded
Holder” means the Company, a Subsidiary or any Employee Benefit Plan of the Company or a Subsidiary or any trust holding
Common Stock or other securities pursuant to the terms of an Employee Benefit Plan.

 

2.17       "Good Reason"
means "Good Reason" as defined in an Employee's or Director's written employment or service contract with the Company
and, in the absence of such agreement or definition, means any of the following that occurs coincident with or following a Change
in Control, if not cured and corrected by the Company or its successor within ten (10) business days after written notice thereof
by the Employee or Director to the Company or its successor: (a) material diminution in the individual's authority, duties, or
responsibilities as compared to immediately prior to the occurrence of the Change in Control; (b) material reduction in the Employee's
annual base salary as in effect on the effective date of the Change in Control; or (c) any requirement that the Employee relocate,
by more than 50 miles, the principal location from which the Employee performs services for the Company as compared to such location
immediately prior to the occurrence of the Change in Control; provided, however, that notwithstanding subsection (a) above, the
Employee will not have "Good Reason" to terminate his or her employment merely because the Employee is no longer a senior
executive of a public company and/or has a change in title, duties, authority, responsibilities or reporting structure as a result
of the transaction (including having a reporting relationship within a larger company) provided that the Employee retains a substantially
similar level of responsibilities over the other portions and areas of the business for which he or she exercised responsibility
prior to the transaction.

 

    3 

     

    

 

2.18       “Incentive
Award” means the award or grant of a Stock Option, a Stock Appreciation Right, Restricted Stock, a Restricted Stock Unit,
a Stock Award, or another stock-based or stock-related award, to a Participant pursuant to the Plan.

 

2.19       “Market
Value” shall equal the closing price of Common Stock reported on Nasdaq on the date of grant, exercise or vesting, as
applicable, or if Nasdaq is closed on that date, the last preceding date on which Nasdaq was open for trading and on which shares
of Common Stock were traded. If the Common Stock is not listed on Nasdaq, the Market Value shall be determined by any means deemed
fair and reasonable by the Committee in a manner consistent with the valuation principles of Section 409A of the Code except when
the Committee expressly determines not to use Section 409A valuation principles, which determination shall be final and binding
on all parties.

 

2.20       “Mature
Shares” means shares of Common Stock that a Participant has owned for at least six months and that meet any other holding
requirements established by the Committee for the shares to be used for attestation.

 

2.21       “Nasdaq”
means the NASDAQ National Market, or if the Common Stock is not listed for trading on the NASDAQ National Market on the date in
question, then such other United States-based quotation system or stock exchange on which the Common Stock may be traded on the
date in question.

 

2.22       “Participant”
means a Director or Employee who is granted an Incentive Award under the Plan.

 

2.23       “Performance”
means the level of achievement of the performance goals established by the Committee pursuant to Section 10.1.

 

2.24       “Performance
Measures” means measures as described in Section 10 on which the performance goals are based.

 

2.25       “Performance
Period” means the period of time during which the performance goals must be met to determine the degree of payout, the
vesting, or both, with respect to an Incentive Award that is intended to qualify as Performance-Based Compensation.

 

    4 

     

    

 

2.26       “Performance-Based
Compensation” means compensation under an Incentive Award that satisfies the requirements of Section 162(m) of the Code
for certain “performance-based compensation” paid to Covered Employees. Notwithstanding the foregoing, nothing in this
Plan shall be construed to mean that an Incentive Award which does not satisfy the requirements for performance-based compensation
under Section 162(m) of the Code does not constitute performance-based compensation for other purposes, including Section 409A
of the Code.

 

2.27       “Person”
has the same meaning as set forth in Sections 13(d) and 14(d)(2) of the Act.

 

2.28       “Plan”
means the Community Shores Bank Corporation Stock Incentive Plan of 2016 as set forth herein, as it may be amended from time to
time.

 

2.29       “Restricted
Period” means the period of time during which Restricted Stock, Restricted Stock Units or other stock-based or stock-related
awards that are awarded under the Plan are subject to the risk of forfeiture, restrictions on transfer and other restrictions or
conditions pursuant to Sections 7 or 8. The Restricted Period may differ among Participants and may have different
expiration dates with respect to shares of Common Stock covered by the same Incentive Award.

 

2.30       “Restricted
Stock” means Common Stock awarded to a Participant pursuant to Section 7 of the Plan while such Common Stock remains
subject to the risk of forfeiture, restrictions on transfer and other restrictions or conditions pursuant to Section 7.

 

2.31       “Restricted
Stock Unit” means an award to a Participant pursuant to Section 7 of the Plan and described as a “Restricted
Stock Unit” in Section 7.

 

2.32       “Retirement”
means the voluntary termination of employment by a Participant after he or she has attained the age of 65 or such other age as
may be determined by the Committee in its sole discretion or as otherwise may be set forth in the Incentive Award agreement or
other grant document with respect to a Participant and a particular Incentive Award.

 

2.33       “Stock
Appreciation Right” or “SAR” means a right awarded to a Participant pursuant to Section 6
of the Plan, which shall entitle the Participant to receive cash, Common Stock, other property or a combination thereof, as determined
by the Committee, in an amount equal to or otherwise based on the excess of (a) the Market Value of a share of Common Stock
at the time of exercise over (b) the exercise price of the right, as established by the Committee on the date the award is
granted.

 

2.34       “Stock
Award” means an award of Common Stock awarded to a Participant pursuant to Section 8 of the Plan.

 

2.35       “Stock
Option” means the right to purchase Common Stock at a stated price for a specified period of time. For purposes of the
Plan, a Stock Option may be either an incentive stock option within the meaning of Section 422(b) of the Code or a nonqualified
stock option.

 

    5 

     

    

 

2.36       “Subsidiary”
means any corporation or other entity of which 50% or more of the outstanding voting stock or voting ownership interest is directly
or indirectly owned or controlled by the Company or by one or more Subsidiaries of the Company. The term “Subsidiary”
includes present and future Subsidiaries of the Company.

 

2.37       “Termination”
or “Cessation” of employment shall be considered to occur on the date on which the Employee is no longer
obligated to perform services for the Company or any of its Subsidiaries and the Employee’s right to re-employment is not
guaranteed by statute, contract or written policy of the Company, regardless of whether the Employee continues to receive compensation
from the Company or any of its Subsidiaries after such date. The following shall not be considered such a termination or cessation:
(i) a transfer of an employee among the Company and its Subsidiaries; (ii) a leave of absence, duly authorized in writing by the
Company, for military service or for any other purpose approved by the Company if the period of such leave does not exceed 90 days;
(iii) a leave of absence in excess of 90 days, duly authorized in writing by the Company, provided that the employee’s right
to re-employment is guaranteed by statute, contract or written policy of the Company; or (iv) a termination of employment
as an officer with continued service as an Employee or Director.

 

SECTION 3

 

Administration

 

3.1         Power and Authority.
The Committee shall administer the Plan, and subject to the express provisions of the Plan, the Committee shall be authorized and
empowered to do all things that it determines to be necessary or appropriate in connection with the administration of this Plan.
Any power or authority of the Committee may also be exercised by the Board, except to the extent that the grant or exercise of
such power or authority would cause any Incentive Award or transaction to become subject to (or lose an exemption under) the short-swing
profit recovery provisions of Section 16 of the Act or cause an Incentive Award intended to qualify for treatment as performance-based
compensation under Section 162(m) of the Code not to qualify for such treatment. To the extent that any permitted action taken
by the Board conflicts with action taken by the Committee, the Board action shall control.

 

The Committee may delegate
any, some or all of its record keeping, calculation, payment and other ministerial or administrative authority and responsibility
from time to time to and among one or more individuals, who are members of the Committee or Employees of the Company or its Subsidiaries
or Affiliates, but all actions taken pursuant to delegated authority and responsibility shall be subject to such review, change
and approval by the Committee as the Committee considers appropriate. Except as limited in the Plan, the Committee shall have all
of the express and implied powers and duties set forth in the Bylaws of the Company and the Plan, shall have full power and authority
to interpret the provisions of the Plan and Incentive Awards granted under the Plan and shall have full power and authority to
supervise the administration of the Plan and Incentive Awards granted under the Plan and to make all other determinations and do
all things considered necessary or advisable for the administration of the Plan. All determinations, interpretations and selections
made by the Committee regarding the Plan shall be final and conclusive. The Committee shall hold its meetings at such times and
places as it considers advisable. Action may be taken by a written instrument signed by all of the members of the Committee and
any action so taken shall be fully as effective as if it had been taken at a meeting duly called and held. The Committee shall
prescribe, amend and rescind rules and regulations for the conduct of its business and shall define terms not otherwise defined
herein, in each case as it considers advisable.

 

    6 

     

    

 

3.2         Grants or Awards
to Participants. In accordance with and subject to the provisions of the Plan, the Committee shall have the authority to determine
all provisions of Incentive Awards including, without limitation: (a) the persons who shall be selected as Participants; (b) the
nature and, subject to the limitations set forth in Sections 4.1 and 4.2 of the Plan, extent of the Incentive Awards
to be made to each Participant (including the number of shares of Common Stock to be subject to each Incentive Award, any exercise
or purchase price, the manner in which an Incentive Award will vest or become exercisable and the form of payment for the Incentive
Award); (c) the time or times when Incentive Awards will be granted; (d) the duration of each Incentive Award; and (e) the restrictions
and other conditions to which payment or vesting of Incentive Awards may be subject.

 

3.3         Amendments or
Modifications of Incentive Awards.  Subject to Section 12, the Committee shall have the authority to amend or
modify the terms of any outstanding Incentive Award in any manner, provided that the amended or modified terms are not prohibited
by the Plan as then in effect and provided that such actions do not cause an Incentive Award not otherwise subject to Section 409A
of the Code to become subject to Section 409A of the Code. The Committee shall without limitation, have the authority to: (a) modify
the number of shares or other terms and conditions of an Incentive Award; provided that any increase in the number of shares of
an Incentive Award other than pursuant to Section 4.3 will be considered to be a new grant with respect to such additional
shares for purposes of Section 409A of the Code and such new grant shall be made at Market Value on the date of the new grant;
(b) extend the term of an Incentive Award to a date that is no later than the earlier of the latest date upon which the Incentive
Award could have expired by its terms under any circumstances or the 10th anniversary of the date of grant (for purposes of clarity,
as permitted under Section 409A of the Code, if the term of a Stock Option is extended at a time when the Stock Option exercise
price equals or exceeds the Market Value, it will not be an extension of the term of the Stock Option, but instead will be treated
as a modification of the Stock Option and a new Stock Option will be treated as having been granted); (c) accelerate the exercisability
or vesting or otherwise terminate, waive or modify any restrictions relating to an Incentive Award; (d) accept the surrender of
any outstanding Incentive Award; and (e) to the extent not previously exercised or vested, authorize the grant of new Incentive
Awards in substitution for surrendered Incentive Awards (such grant of new Incentive Awards will be considered to be a new grant
for purposes of Section 409A of the Code and such new grant shall be made at Market Value on the date of the new grant); provided,
that Incentive Awards issued under the Plan may not be repriced, replaced, regranted through cancellation or modified without
shareholder approval if the effect of such repricing, replacement, regrant or modification would be to reduce the exercise price
or base price of such Incentive Awards to the same Participants.

 

    7 

     

    

 

3.4         Indemnification
of Committee Members. No member or former member of the Committee, or any individual or group to whom authority or responsibility
is or has been delegated, shall be personally responsible or liable for any act or omission in connection with the performance
of powers or duties or the exercise of discretion or judgment in the administration and implementation of the Plan. Each person
who is or was a member of the Committee, and any other individual or group exercising delegated authority or responsibility with
respect to the Plan, shall be indemnified and held harmless by the Company from and against any cost, liability or expense imposed
or incurred in connection with such person’s or the Committee’s taking or failing to take any action under the Plan
or the exercise of discretion or judgment in the administration and implementation of the Plan. This Section 3.4 shall not
be construed as limiting the Company’s or any Subsidiary’s ability to terminate or otherwise alter the terms and conditions
of the employment of an individual or group exercising delegated authority or responsibility with respect to the Plan, or to discipline
any such person. Each such person shall be justified in relying on information furnished in connection with the Plan’s administration
by any appropriate person or persons.

 

SECTION 4

 

Shares Subject to the Plan

 

4.1         Number of Shares.
Subject to adjustment as provided in Section 4.3 of the Plan, the total number of shares available for Incentive Awards
under the Plan shall be 500,000 shares of Common Stock, plus all shares subject to Incentive Awards that are canceled, surrendered,
modified, exchanged for substitute Incentive Awards or that expire or terminate prior to the exercise or vesting of the Incentive
Awards in full, whether previously owned or otherwise subject to such Incentive Awards. Notwithstanding the foregoing, in no event
shall any shares of Common Stock issued under this Plan which are used to pay in whole or in part of the option price under a Stock
Option (including but not limited to a net share settlement procedure) or tendered to the Company in satisfaction of any condition
to a Restricted Stock grant be available for issuance under this Plan. Further, the number of shares covered by a Stock Appreciation
Right, to the extent that it is exercised and settled in shares, and whether or not all the shares covered by the Incentive Award
are actually issued to the Employee or Director upon exercise of the Stock Appreciation Right, shall be considered issued or transferred
pursuant to the Plan. Such shares shall be authorized and may be unissued shares, shares issued and repurchased by the Company
(including shares purchased on the open market), shares issued and otherwise reacquired by the Company and shares otherwise held
by the Company.

 

4.2         Limitation Upon
Incentive Awards. No Participant shall be granted, during any calendar year, Incentive Awards with respect to more than 10%
of the total number of shares of Common Stock available for Incentive Awards under the Plan set forth in Section 4.1 of
the Plan, subject to adjustment as provided in Section 4.3 of the Plan, but only to the extent that such adjustment will
not affect the status of any Incentive Award previously issued or that may thereafter be issued as Performance-Based Compensation.
The purpose of this Section 4.2 is to ensure that the Plan provides Performance-Based Compensation, and this Section
4.2 shall be interpreted, administered and amended if necessary to achieve that purpose.

 

    8 

     

    

 

4.3         Adjustments.

 

(a)         Stock
Dividends and Distributions. If the number of shares of Common Stock outstanding changes by reason of a stock dividend, stock
split, recapitalization or other general distribution of Common Stock or other securities to holders of Common Stock, the number
and kind of securities subject to outstanding Incentive Awards and available for issuance under the Plan, and the limitation provided
in Section 4.2, together with applicable exercise prices and base prices, shall be adjusted in such manner and at such time
as shall be equitable under the circumstances. No fractional shares shall be issued pursuant to the Plan and any fractional shares
resulting from such adjustments shall be eliminated from the respective Incentive Awards.

 

(b)         Other
Actions Affecting Common Stock. If there occurs, other than as described in Section 4.3(a), any merger, business combination,
recapitalization, reclassification, subdivision or combination approved by the Board that would result in the persons who were
shareholders of the Company immediately prior to the effective time of any such transaction owning or holding, in lieu of or in
addition to shares of Common Stock, other securities, money and/or property (or the right to receive other securities, money and/or
property) immediately after the effective time of such transaction, then the outstanding Incentive Awards (including exercise prices
and base prices) and reserves for Incentive Awards under the Plan shall be adjusted in such manner and at such time as shall be
equitable under the circumstances. It is intended that in the event of any such transaction, Incentive Awards under the Plan shall
entitle the holder of each Incentive Award to receive (upon exercise in the case of Stock Options and SARs), in lieu of or in addition
to shares of Common Stock, any other securities, money and/or property receivable upon consummation of any such transaction by
holders of Common Stock with respect to each share of Common Stock outstanding immediately prior to the effective time of such
transaction; upon any such adjustment, holders of Incentive Awards under the Plan shall have only the right to receive in lieu
of or in addition to shares of Common Stock such other securities, money and/or other property as provided by the adjustment.

 

    9 

     

    

 

SECTION 5

 

Stock Options

 

5.1         Grant. A
Participant may be granted one or more Stock Options under the Plan. No Participant shall have any rights as a shareholder with
respect to any shares of stock subject to Stock Options granted hereunder until said shares have been issued. For purposes of determining
the number of shares available under the Plan, each Stock Option shall count as the number of shares of Common Stock subject to
the Stock Option. Stock Options shall be subject to such terms and conditions, consistent with the other provisions of the Plan,
as may be determined by the Committee in its sole discretion. The Committee, in its sole discretion, may establish vesting schedules
(i) based upon Company performance, or (ii) that extend over a period of time selected by the Committee. In addition, the Committee
may vary, among Participants and among Stock Options granted to the same Participant, any and all of the terms and conditions of
the Stock Options granted under the Plan. Subject to the limitation imposed by Section 4.2 of the Plan, the Committee shall
have complete discretion in determining the number of Stock Options granted to each Participant. The Committee may designate whether
or not a Stock Option is to be considered an incentive stock option as defined in Section 422(b) of the Code; provided,
that the number of shares of Common Stock that may be designated as subject to incentive stock options for any given Participant
shall be limited to that number of shares that become exercisable for the first time by the Participant during any calendar year
(under all plans of the Company and its Subsidiaries) and have an aggregate Market Value less than or equal to $100,000 (or such
other amount as may be set forth in relevant sections of the Code) and all shares subject to an Incentive Award that have a Market
Value in excess of such aggregate amount shall automatically be subject to Stock Options that are not incentive stock options.
No Stock Option granted to a Director who is not an Employee shall be considered an incentive stock option under Section 422(b)
of the Code. A Stock Option that is characterized as an incentive stock option will be treated as a non-incentive stock option
if and to the extent such Stock Option does not qualify as an incentive stock option.

 

5.2         Stock Option
Agreements. Stock Options shall be evidenced by stock option agreements, certificates of award, or both, containing the terms
and conditions applicable to such Stock Options. To the extent not covered by a stock option agreement or certificate of award,
the terms and conditions of this Section 5 shall govern.

 

5.3         Stock Option
Exercise Price. The per share Stock Option exercise price shall be determined by the Committee, but shall be a price that is
equal to or greater than 100% of the Market Value (or such higher amount as may be necessary under Section 5.5 below). The
date of grant of a Stock Option shall be the date the Stock Option is authorized by the Committee or a future date specified by
the Committee as the date for issuing the Stock Option.

 

5.4         Medium and Time
of Payment. The exercise price for each share purchased pursuant to a Stock Option granted under the Plan shall be payable
in cash or, if the Committee consents or provides in the applicable stock option agreement or grant, in Mature Shares or other
consideration substantially equivalent to cash. The time and terms of payment may be amended with the consent of a Participant
before or after exercise of a Stock Option, provided that such amendment would not cause a Stock Option to become subject to Section
409A of the Code. The Committee may implement a program for the broker-assisted cashless exercise of Stock Options.

 

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5.5         Stock Options
Granted to 10% Shareholders. No Stock Option granted to any Participant who at the time of such grant owns, together with stock
attributed to such Participant under Section 424(d) of the Code, more than 10% of the total combined voting power of all classes
of stock of the Company or any of its Subsidiaries may be designated as an incentive stock option, unless such Stock Option provides
an exercise price equal to at least 110% of the Market Value and the exercise of the Stock Option after the expiration of five
years from the date of grant of the Stock Option is prohibited by its terms.

 

5.6         Limits on Exercisability.
Except as set forth in Section 5.5, Stock Options shall be exercisable for such periods, not to exceed 10 years from
the date of grant, as may be fixed by the Committee. At the time of exercise of a Stock Option, the holder of the Stock Option,
if requested by the Committee, must represent to the Company that the shares are being acquired for investment and not with a view
to the distribution thereof. The Committee may in its discretion require a Participant to continue the Participant’s service
with the Company or its Subsidiaries for a certain length of time prior to a Stock Option becoming exercisable and may eliminate
such delayed vesting provisions. Notwithstanding the foregoing, each Stock Option grant shall provide for a minimum one-year vesting
condition.

 

5.7         Restrictions
on Transferability. 

 

(a)         General.
Unless the Committee otherwise consents or permits (before or after the stock option grant) or unless the stock option agreement
or grant provides otherwise, Stock Options granted under the Plan may not be sold, exchanged, transferred, pledged, assigned or
otherwise alienated or hypothecated except by will or the laws of descent and distribution, and, as a condition to any transfer
permitted by the Committee or the terms of the stock option agreement or grant, the transferee must execute a written agreement
permitting the Company to withhold from the shares subject to the Stock Option a number of shares having a Market Value at least
equal to the amount of any federal, state or local withholding or other taxes associated with or resulting from the exercise of
a Stock Option. All provisions of a Stock Option that are determined with reference to the Participant, including without limitation
those that refer to the Participant’s employment with the Company or its Subsidiaries, shall continue to be determined with
reference to the Participant after any transfer of a Stock Option.

 

(b)         Other
Restrictions. The Committee may impose other restrictions on any shares of Common Stock acquired pursuant to the exercise of
a Stock Option under the Plan as the Committee deems advisable, including, without limitation, holding periods or further transfer
restrictions, forfeiture or “claw-back” provisions, and restrictions under applicable federal or state securities laws.

 

5.8         Termination of
Employment or Directorship Status. Unless the Committee otherwise consents or permits (before or after the stock option
grant) or unless the stock option agreement or grant provides otherwise:

 

(a)         General.
If a Participant ceases to be a Director or an Employee for any reason other than the Participant’s death, Disability, Retirement
(in the case of Employees only) or termination for Cause, the Participant may exercise his or her Stock Options in accordance with
their terms for a period of three months after such termination of employment or directorship status, but only to the extent the
Participant was entitled to exercise the Stock Options on the date of termination.

 

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(b)         Death.
If a Participant dies either while an Employee or Director or after the termination of employment or directorship other than
for Cause but during the time when the Participant could have exercised a Stock Option, the Stock Option issued to such Participant
shall be exercisable in accordance with its terms by the personal representative of such Participant or other successor to the
interest of the Participant for one year after the Participant’s death, but only to the extent that the Participant was entitled
to exercise the Stock Option on the date of death or termination of employment or directorship, whichever first occurred, and not
beyond the original terms of the Stock Option.

 

(c)         Disability.
If a Participant ceases to be an Employee or Director of the Company or one of its Subsidiaries due to the Participant’s
Disability, the Participant may exercise his or her Stock Options in accordance with their terms for one year following such termination
of employment or directorship, but only to the extent that the Participant was entitled to exercise the Stock Options on the date
of such event and not beyond the original terms of the Stock Options.

 

(d)         Participant
Retirement. If a Participant Retires as an Employee, Stock Options granted under the Plan to that Participant may be
exercised in accordance with their terms during the remaining terms of the Stock Options.

 

(e)         Termination
for Cause. If a Participant’s employment is terminated for Cause or the Participant is removed as a Director for
Cause, the Participant shall have no further right to exercise any Stock Options previously granted (whether or not vested) and
all of the Participant’s outstanding Stock Options shall automatically be forfeited and returned to the Company. The Committee
or officers designated by the Committee shall have absolute discretion to determine whether a termination or removal is for Cause.

 

SECTION 6

 

Stock Appreciation Rights

 

6.1         Grant. A
Participant may be granted one or more Stock Appreciation Rights under the Plan and such SARs shall be subject to such terms and
conditions, consistent with the other provisions of the Plan, as shall be determined by the Committee in its sole discretion. A
SAR may relate to a particular Stock Option and may be granted simultaneously with or subsequent to the Stock Option to which it
relates. Except to the extent otherwise modified in the grant, (i) SARs not related to a Stock Option shall be granted subject
to the same terms and conditions applicable to Stock Options as set forth in Section 5, and (ii) all SARs related to Stock
Options granted under the Plan shall be granted subject to the same restrictions and conditions and shall have the same vesting,
exercisability, forfeiture and termination provisions as the Stock Options to which they relate. SARs may be subject to additional
restrictions and conditions. The per-share base price for exercise or settlement of SARs shall be determined by the Committee,
but shall be a price that is equal to or greater than the Market Value of such shares. Other than as adjusted pursuant to Section
4.3, the base price of SARs may not be reduced without shareholder approval (including canceling previously awarded SARs and
regranting them with a lower base price).

 

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6.2         Exercise; Payment.
To the extent a SAR relates to a Stock Option, the SAR may be exercised only when the related Stock Option could be exercised and
only when the Market Value of the shares subject to the Stock Option exceed the exercise price of the Stock Option. When a Participant
exercises such SARs, the Stock Options related to such SARs shall automatically be cancelled with respect to an equal number of
underlying shares. SARs shall only be paid in cash or in shares of Common Stock. For purposes of determining the number of shares
available under the Plan, each Stock Appreciation Right shall count as one share of Common Stock, without regard to the number
of shares, if any, that are issued upon the exercise of the Stock Appreciation Right and upon such payment. 

 

SECTION 7

 

Restricted Stock and Restricted Stock Units

 

7.1         Grant. Subject
to the limitations set forth in Sections 4.1 and 4.2 of the Plan, Restricted Stock and Restricted Stock Units may
be granted to Participants under the Plan. Shares of Restricted Stock are shares of Common Stock the retention, vesting and/or
transferability of which is subject, during specified periods of time, to such conditions (including continued employment and/or
achievement of one or more performance goals established by the Committee pursuant to Section 10) and terms as the Committee
deems appropriate, but in no case shall the Committee provide for any deferral of compensation after such conditions and terms
are satisfied. Restricted Stock Units are Incentive Awards denominated in units of Common Stock under which the issuance of shares
of Common Stock is subject to such conditions (including continued employment and/or achievement of one or more performance goals
established by the Committee pursuant to Section 10) and terms as the Committee deems appropriate. For purposes of determining
the number of shares available under the Plan, each Restricted Stock Unit shall count as the number of shares of Common Stock subject
to the Restricted Stock Unit. Unless determined otherwise by the Committee, each Restricted Stock Unit shall be equal to one share
of Common Stock and shall entitle a Participant to either shares of Common Stock or an amount of cash determined with reference
to the value of shares of Common Stock. To the extent determined by the Committee, Restricted Stock and Restricted Stock Units
may be satisfied or settled in cash, in shares of Common Stock or in a combination thereof. Restricted Stock Units shall be settled
no later than the 15th day of the third month after the Restricted Stock Units vest. Restricted Stock and Restricted Stock Units
granted pursuant to the Plan need not be identical but shall be consistent with the terms of the Plan. Subject to the requirements
of applicable law, the Committee shall determine the price, if any, at which awards of Restricted Stock or Restricted Stock Units,
or shares of Common Stock issuable pursuant to Restricted Stock Unit awards, shall be sold or awarded to a Participant, which may
vary from time to time and among Participants.

 

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7.2         Restricted Stock
Agreements. Awards of Restricted Stock and Restricted Stock Units shall be evidenced by restricted stock or restricted
stock unit agreements or certificates of award containing such terms and conditions, consistent with the provisions of the Plan,
as the Committee shall from time to time determine. Shares of Restricted Stock not evidenced by a certificate shall be recorded
in “book entry” form in the Company’s stock records. Unless the restricted stock or restricted stock unit agreement
or certificate of award provides otherwise, awards of Restricted Stock and Restricted Stock Units shall be subject to the terms
and conditions set forth in this Section 7.

 

7.3         Vesting.
The grant, issuance, retention and vesting of shares of Restricted Stock and Restricted Stock Units and the settlement of Restricted
Stock Units shall occur at such time and in such installments as determined by the Committee or under criteria established by the
Committee. The Committee shall have the right to make the timing of the grant and/or issuance of, the ability to retain and the
vesting and/or the settlement of Restricted Stock Units and shares of Restricted Stock subject to continued employment, passage
of time and/or Performance Measures as deemed appropriate by the Committee. In no event shall the grant, issuance, retention, vesting
or settlement of shares of Restricted Stock or Restricted Stock Units that is based on Performance Measures or a level of achievement
measured against Performance Measures be subject to a performance period of less than one year. No condition that is based upon
continued employment or the passage of time shall provide for vesting or settlement in full of Restricted Stock or Restricted Stock
Units over a period of less than one year from the date the Award is made, other than as a result of or upon the death, Disability
or Retirement of the Participant or a Change in Control.

 

7.4         Termination of
Employment or Directorship Status. Unless the Committee otherwise consents or permits (before or after the grant or
Restricted Stock or Restricted Stock Units) or unless the restricted stock or restricted stock unit agreement or grant provides
otherwise:

 

(a)         General.
 Except as set forth in Section 7.4(b) below, if a Participant ceases to be a Director or Employee during the Restricted
Period, the Participant shall have no further right to retain or receive any Restricted Stock or Restricted Stock Units and all
Restricted Stock and Restricted Stock Units still subject to restrictions at the date of such termination shall automatically be
forfeited and returned to the Company.

 

(b)         Death,
Retirement or Disability. If (i) a Participant’s employment or directorship with the Company is terminated because of
death, Disability or (in the case of Employees only) Retirement during the Restricted Period, or (ii) the Company terminates a
Participant’s employment other than for Cause, then all restrictions remaining on any or all shares of Restricted Stock and
Restricted Stock Units shall terminate automatically with respect to that respective number of such shares or Restricted Stock
Units (rounded to the nearest whole number) equal to the respective total number of such shares or Restricted Stock Units granted
to such Participant multiplied by the number of full months that have elapsed since the date of grant divided by the total number
of full months in the respective Restricted Period. All remaining shares of Restricted Stock and Restricted Stock Units shall be
forfeited and returned to the Company. The Committee may, in its sole discretion, waive the restrictions remaining on and forfeiture
of any or all such remaining shares of Restricted Stock and Restricted Stock Units either before or after the death, Disability
or Retirement of the Participant. Any termination of a Participant because of Disability shall be deemed a termination by the Participant.

 

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7.5         Restrictions
on Transferability.

 

(a)         General.
Unless the Committee otherwise consents or permits or unless the terms of the restricted stock or restricted stock unit agreement
or grant provide otherwise: (i) neither shares of Restricted Stock nor Restricted Stock Units may be sold, exchanged, transferred,
pledged, assigned or otherwise alienated or hypothecated during the Restricted Period except by will or the laws of descent and
distribution; and (ii) all rights with respect to Restricted Stock and Restricted Stock Units granted to a Participant under the
Plan shall be exercisable during the Participant’s lifetime only by such Participant or his or her guardian or legal representative.

 

(b)         Other
Restrictions. The Committee may impose other restrictions on any shares of Common Stock acquired pursuant to an award of Restricted
Stock or issuable pursuant to Restricted Stock Unit awards under the Plan as the Committee considers advisable, including, without
limitation, holding periods or further transfer restrictions, forfeiture or “claw-back” provisions, and restrictions
under applicable federal or state securities laws.

 

7.6         Legending of
Restricted Stock. In addition to any other legend that may be set forth on a Participant’s share certificate, any certificates
evidencing shares of Restricted Stock awarded pursuant to the Plan shall bear the following legend:

 

The shares represented by this certificate
were issued subject to certain restrictions under the Community Shores Bank Corporation Stock Incentive Plan of 2016 (the “Plan”).
This certificate is held subject to the terms and conditions contained in a restricted stock agreement that includes a prohibition
against the sale or transfer of the stock represented by this certificate except in compliance with that agreement and that provides
for forfeiture upon certain events. Copies of the Plan and the restricted stock agreement are on file in the office of the Secretary
of the Company.

 

The Committee may require that certificates
representing shares of Restricted Stock be retained and held in escrow by a designated employee or agent of the Company or any
Subsidiary until any restrictions applicable to shares of Restricted Stock so retained have been satisfied or lapsed.

 

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7.7         Rights as a Shareholder.
Unless the Committee otherwise determines or unless the terms of the applicable restricted stock agreement, restricted stock
unit agreement or grant provide otherwise, a Participant shall not have the right to receive dividends or other distributions with
respect to (a) Restricted Stock held by the Participant during the Restricted Period, or (b) shares of Common Stock underlying
unvested Restricted Stock Units held by the Participant.

 

7.8         Voting Rights.
Unless otherwise determined by the Committee, Participants holding shares of Restricted Stock granted hereunder may not exercise
voting rights with respect to those shares during the Restricted Period. Participants shall have no voting rights with respect
to shares of Common Stock underlying Restricted Stock Units unless and until such shares are issued and outstanding shares on the
Company’s stock ledger.

 

SECTION 8

 

Stock-Based Awards

 

8.1         Grant. Subject
to the limitations set forth in Sections 4.1 and 4.2 of the Plan, in addition to any Stock Options, Stock Appreciation
Rights, Restricted Stock, or Restricted Stock Units that a Participant may be granted under the Plan, a Participant may be granted
one or more other types of awards based on or related to shares of Common Stock (including the grant of Stock Awards). Such awards
shall be subject to such terms and conditions, consistent with the other provisions of the Plan, as may be determined by the Committee
in its sole discretion, but in no case shall the Committee provide for any deferral of compensation after such conditions and terms
are satisfied. Notwithstanding the previous sentence, Stock Awards shall be settled no later than the 15th day of the third month
after the awards vest. Such awards shall be expressed in terms of shares of Common Stock or denominated in units of Common Stock.
For purposes of determining the number of shares available under the Plan, each such unit shall count as the number of shares of
Common Stock to which it relates.

 

8.2         Rights as a Shareholder.

 

(a)         Stock
Awards. A Participant shall have all voting, dividend, liquidation and other rights with respect to shares of Common Stock
issued to the Participant as a Stock Award under this Section 8 upon the Participant becoming the holder of record of the
Common Stock granted pursuant to such Stock Award; provided, that the Committee may impose such restrictions on the assignment
or transfer of Common Stock awarded pursuant to a Stock Award as it considers appropriate. Any dividend payment with respect to
a Stock Award shall be made no later than the end of the calendar year in which the dividends are paid to shareholders, or, if
later, the 15th day of the third month following the date the dividends are paid to shareholders.

 

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(b)         General.
With respect to shares of Common Stock subject to awards granted under the Plan other than Stock Options, Stock Appreciation Rights,
Restricted Stock, Restricted Stock Units and Stock Awards, a Participant shall have such rights as determined by the Committee
and set forth in the respective award agreements; and the Committee may impose such restrictions on the assignment or transfer
of Common Stock awarded pursuant to such awards as it considers appropriate.

 

SECTION 9

 

Change in Control

 

If a Change in Control
occurs, the parties may agree that outstanding Incentive Awards shall be assumed by, or converted into a substitute award for or
with respect to shares of common stock of, the successor or acquiring company (or a parent company thereof) on an economically
equivalent basis. The vesting and other terms of any such assumed or substitute award shall be substantially the same as the vesting
and other terms and conditions of the original Incentive Award, provided that (a) if the assumed or substituted award is a Stock
Option or SAR, the number of shares and exercise or base price shall be adjusted in accordance with the principles set forth in
Sections 1.424-1(a)(5) and 1.409A-1(b)(5)(v)(D) of the Treasury regulations, and (b) if the assumed or substituted Incentive Award
is not a Stock Option or SAR, the number of shares covered by the assumed or substitute Award will be based upon the Change in
Control transaction value of the Company's outstanding shares. If the original Incentive Award is subject to the satisfaction of
any performance conditions, then, unless the Committee determines otherwise, such performance conditions shall be deemed to have
been satisfied at the target performance level for purposes of determining the extent to which the Incentive Award is earned. If
within one year following a Change in Control, a Participant's employment or other service terminates due to the death or Disability
or is terminated by the Company or a successor or acquiring company (or any of its or their affiliates) without Cause or by the
recipient for Good Reason, then any outstanding assumed or substitute awards held by such terminated Participant shall immediately
be fully vested, and any outstanding assumed or substitute Stock Options and SARs will remain outstanding for at least 180 days
after such termination of employment or service (or, if earlier, until the expiration of their original stated terms).

 

Unless the Committee, acting
in its discretion, prescribes an economically equivalent alternative approach, if a Change in Control occurs and if the parties
do not agree that an outstanding Incentive Award shall be assumed or substituted by the successor or acquiring company (or a parent
company thereof) pursuant to this Section, then such Incentive Award will be deemed fully vested and any performance conditions
applicable to such Incentive Award will be deemed satisfied at the target performance level for purposes of determining the extent
to which the Incentive Award is earned. Each such Incentive Award shall be cancelled immediately prior to the effective time of
the Change in Control in exchange for an amount equal to the per share consideration received by the holders of outstanding shares
in the Change in Control transaction, reduced in the case of a Stock Option or SAR by the exercise or base price for such shares.
No consideration will be payable in respect of the cancellation of a Stock Option or SAR with an exercise or base price per share
that is equal to or greater than the value of the Change in Control transaction consideration per share. The amount payable with
respect to the cancellation of an outstanding Award pursuant to this section will be paid in cash, unless the parties to the Change
in Control agree that some or all of such amount will be payable in the form of freely tradable shares of common stock of the successor
or acquiring company (or a parent company thereof).

 

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SECTION 10

 

Performance Measures

 

10.1       Performance
Measures. Unless and until the Committee proposes for shareholder vote and the shareholders approve a change in the general
Performance Measures set forth in this Section 10, the performance goals upon which the payment or vesting of an Incentive
Award to a Covered Employee that is intended to qualify as Performance-Based Compensation may be based shall be limited
to the following Performance Measures:

 

		(a)	Net income (before or after taxes, interest, depreciation, and/or amortization);

		(b)	Net income per share;

		(c)	Return on equity;

		(d)	Cash earnings;

		(e)	Cash earnings per share (reflecting dilution of the Common Stock as the Committee deems appropriate and, if the Committee so
determines, net of or including dividends);

		(f)	Cash earnings return on equity;

		(g)	Operating income;

		(h)	Operating income per share;

		(i)	Operating income return on equity;

		(j)	Return on assets;

		(k)	Cash flow;

		(l)	Cash flow return on capital;

		(m)	Return on capital;

		(n)	Productivity ratios;

		(o)	Share price (including without limitation growth measures, total shareholder return or comparison
to indices);

		(p)	Expense or cost levels;

		(q)	Margins;

		(r)	Customer satisfaction, satisfaction based on specified objective goals or a Company-sponsored customer
survey;

		(s)	Economic value added measurements;

		(t)	Market share or market penetration with respect to specific designated products or services, product
or service groups and/or specific geographic areas;

		(u)	Non-interest income;

		(v)	Net interest income;

 

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		(w)	Deposit growth; and

		(x)	Loan growth.

 

One or more Performance Measures may be used
to measure the performance of one or more of the Company, its Subsidiaries, its Affiliates or any combination of the foregoing,
compared to pre-determined levels, as the Committee may deem appropriate, or compared to the performance of a pre-established peer
group, or published or special index that the Committee, in its sole discretion, deems appropriate. The Committee also has the
authority to provide for accelerated vesting of any Incentive Award based on the achievement of performance goals pursuant to the
Performance Measures specified in this Section 10.

 

10.2       Evaluation of
Performance. The Committee may provide in any such Incentive Award that any evaluation of Performance may include or exclude
any of the following events or their effects that occurs during a Performance Period: (a) asset write-downs, (b) litigation
or claim judgments or settlements, (c) changes in tax laws, accounting principles, or other laws or provisions affecting reported
results, (d) any reorganization and restructuring programs, (e) extraordinary nonrecurring items as described in Financial
Accounting Standards Board Accounting Standards Codification Topic 225-20 and/or in management’s discussion and analysis
of financial condition and results of operations appearing in the Company’s annual report to shareholders for the applicable
fiscal year, (f) acquisitions, mergers, divestitures or accounting changes, (g) amortization of goodwill or other intangible
assets, (h) discontinued operations, and (i) other special charges or extraordinary items. To the extent such inclusions or exclusions
affect Incentive Awards to Covered Employees, they shall be prescribed in a form that meets the requirements of Section 162(m)
of the Code for deductibility.

 

10.3       Committee Discretion.
In the event that applicable tax laws, securities laws, or both, change to permit Committee discretion to alter the governing Performance
Measures without obtaining shareholder approval of such changes, the Committee shall have sole discretion to make such changes
without obtaining shareholder approval. In addition, in the event that the Committee determines that it is advisable to grant Incentive
Awards that shall not qualify as Performance-Based Compensation, the Committee may make such grants without satisfying the requirements
of Section 162(m) of the Code and may base vesting on Performance Measures other than those set forth in Section 10.1.

 

10.4       Adjustment of
Performance-Based Compensation. Incentive Awards that are designed to qualify as Performance-Based Compensation, and that are
held by Covered Employees, may not be increased or adjusted upward. The Committee shall retain the discretion to decrease or adjust
such Incentive Awards downward, and such Incentive Awards may be forfeited in whole or in part.

 

10.5       Performance-Based
Compensation Conditioned on Performance. Payment of Performance-Based Compensation to a Participant for a Performance
Period under this Plan shall be entirely contingent upon achievement of the performance goals established by the Committee pursuant
to this Section 10, the satisfaction of which must be substantially uncertain when established by the Committee for the
Performance Period.

 

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10.6       Time of Determination
of Performance Goals by Committee. All performance goals to be made by the Committee for a Performance Period pursuant to this
Section 10 shall be established in writing by the Committee during the first 90 days of such Performance Period and before
25% of the Performance Period has elapsed.

 

10.7       Section 162(m)
Purpose. It is intended that the Plan may provide performance-based compensation under Section 162(m) of the Code, and the
Plan shall be interpreted, administered and amended if necessary to achieve that purpose.

 

10.8       Objective Standards.
Performance-Based Compensation shall be based solely upon objective criteria, consistent with this Section 10, from which
an independent third party with knowledge of the facts could determine whether the performance goal or range of goals is met and
from that determination could calculate the Performance-Based Compensation to be paid. Although the Committee has authority to
exercise reasonable discretion to interpret this Plan and the criteria it shall specify pursuant to this Section 10 of the
Plan, it may not amend or waive such criteria after the 90th day of the respective Performance Period. The Committee shall have
no authority or discretion to increase any Performance-Based Compensation or to construct, modify or apply the measurement of a
Participant’s Performance in a manner that will directly or indirectly increase the Performance-Based Compensation for the
Participant for any Performance Period above the amount determined by the applicable objective standards established within the
time period set forth in Section 10.6.

 

Section 11

 

General Provisions

 

11.1       No Rights to
Incentive Awards. No Participant or other person shall have any claim to be granted any Incentive Award under
the Plan and there is no obligation of uniformity of treatment of Participants or holders or beneficiaries of Incentive Awards
under the Plan. The terms and conditions of Incentive Awards of the same type and the determination of the Committee to grant a
waiver or modification of any Incentive Award and the terms and conditions thereof need not be the same with respect to each Participant
or the same Participant.

 

11.2       Withholding.
The Company or a Subsidiary shall be entitled to: (a) withhold and deduct from future wages of a Participant (or from other
amounts that may be due and owing to a Participant from the Company or a Subsidiary), or make other arrangements for the collection
of, all legally required amounts necessary to satisfy any and all federal, state, local and other withholding and employment-related
tax requirements attributable to an Incentive Award, including, without limitation, taxes on income deemed to be recognized as
a result of grant, exercise or vesting of, or payment of dividends with respect to, an Incentive Award or a disqualifying disposition
of Common Stock received upon exercise of an incentive stock option; or (b) require a Participant promptly to remit the amount
of such withholding to the Company before taking any action with respect to an Incentive Award. Unless the Committee determines
otherwise, withholding may be satisfied by withholding Common Stock to be received upon exercise or vesting of an Incentive Award
or by delivery to the Company of previously owned Common Stock. The Company may establish such rules and procedures concerning
timing of any withholding election as it deems appropriate. In addition, the Company may reasonably delay the issuance or delivery
of shares of Common Stock pursuant to an Incentive Award as it determines appropriate to address tax withholding and other administrative
matters.

 

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11.3       Compliance with
Laws; Listing and Registration of Shares. All Incentive Awards granted under the Plan (and all issuances of Common Stock
or other securities under the Plan) shall be subject to all applicable laws, rules and regulations, and to the requirement that
if at any time the Committee shall determine, in its discretion, that the listing, registration or qualification of the shares
covered thereby upon any securities exchange or under any state or federal law, or the consent or approval of any governmental
regulatory body, is necessary or desirable as a condition of, or in connection with, the grant of such Incentive Award or the issuance
or purchase of shares thereunder, such Incentive Award may not be exercised in whole or in part, or the restrictions on such Incentive
Award shall not lapse, unless and until such listing, registration, qualification, consent or approval shall have been effected
or obtained free of any conditions not acceptable to the Committee.

 

11.4       No Limit on
Other Compensation Arrangements. Nothing contained in the Plan shall prevent the Company or any Subsidiary from adopting,
continuing in effect or discontinuing other or additional compensation arrangements, including the grant of Stock Options and other
stock-based and stock-related awards, and such arrangements may be either generally applicable or applicable only in specific cases.

 

11.5       No Right to
Employment. The grant of an Incentive Award shall not be construed as giving a Participant the right to be retained
as an Employee or Director of the Company or any Subsidiary. The Company or any Subsidiary may at any time dismiss a Participant
from employment, free from any liability or any claim under the Plan, unless otherwise expressly provided in the Plan or in any
written agreement with the Participant.

 

11.6       No Liability
of Company. The Company and any Subsidiary or Affiliate which is in existence or hereafter comes into existence shall not be
liable to a Participant or any other person as to: (a) the non-issuance or non-sale of Common Stock as to which the Company
has been unable to obtain from any regulatory body having jurisdiction the authority deemed by the Company’s counsel to be
necessary to the lawful issuance and sale of any shares hereunder; (b) any tax consequence to any Participant or other person
due to the receipt, exercise or settlement of any Incentive Award granted hereunder; and (c) any provision of law or legal
restriction that prohibits or restricts the transfer of shares of Common Stock issued pursuant to any Incentive Award.

 

11.7       Suspension of
Rights under Incentive Awards. The Company, by written notice to a Participant, may suspend a Participant’s and any transferee’s
rights under any Incentive Award for a period not to exceed 60 days while the termination for Cause of that Participant’s
employment with the Company and its Subsidiaries is under consideration or while the removal for Cause of the Participant as a
Director is under consideration.

 

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11.8       Governing Law.
The validity, construction and effect of the Plan and any rules and regulations relating to the Plan shall be determined in
accordance with the laws of the State of Michigan and applicable federal law.

 

11.9       Severability.
In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall
not affect the remaining provisions of the Plan and the Plan shall be construed and enforced as if the illegal or invalid provision
had not been included, unless such construction would cause the Plan to fail in its essential purposes.

 

11.10     Claw Back Conditions.
Notwithstanding anything to the contrary contained herein or in an agreement or certificate evidencing an Incentive Award,
Incentive Awards and benefits otherwise provided by Incentive Awards made under the Plan shall be subject to the Company’s
incentive compensation claw back policies as in effect from time to time, and, as applicable, the claw back requirements of Section
954 of the Dodd-Frank Act.

 

SECTION 12

 

Termination and Amendment

 

12.1       Board and Committee
Actions. The Board may terminate the Plan at any time or may from time to time amend or alter the Plan or any aspect of it;
provided, that no such amendment may be made, without the approval of shareholders of the Company, that would (i) except
as provided in Section 4.3, reduce the exercise price at which Stock Options, or the base price at which Stock Appreciation
Rights, may be granted below the prices provided for in Sections 5.3 and 6.1, respectively, (ii) except as provided
in Section 4.3, reduce the exercise price of outstanding Stock Options or the base price of outstanding Stock Appreciation
Rights, (iii) increase the individual maximum limits in Section 4.2, or (iv) otherwise amend the Plan in any manner
requiring shareholder approval by law or under Nasdaq listing requirements or other applicable Nasdaq rules.

 

12.2       No Impairment.
Notwithstanding anything to the contrary in Section 12.1, no such amendment or alteration to the Plan or to any previously
granted award agreement or Incentive Award shall be made which would impair the rights of the holder of the Incentive Award, without
such holder’s consent; provided, that no such consent shall be required if the Committee determines in its sole discretion
and prior to the date of any Change in Control that such amendment or alteration either is required or advisable in order for the
Company, the Plan or the Incentive Award to satisfy any law or regulation or to meet the requirements of or avoid adverse tax or
financial accounting consequences under any tax or accounting standard, law or regulation.

 

    22 

     

    

 

SECTION 13

 

Effective Date and Duration of the Plan

 

The Plan shall take effect
March 30, 2016, subject to approval by the shareholders at the 2016 Annual Meeting of Shareholders or any adjournment thereof or
at a Special Meeting of Shareholders. Unless earlier terminated by the Board of Directors, no Incentive Award shall be granted
under the Plan after March 29, 2026.

 

    23

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