Document:

FS Credit Real Estate Income Trust, Inc. 8-K

 

  Exhibit
10.1

MORTGAGE
LOAN PURCHASE AND SALE AGREEMENT

 

THIS
MORTGAGE LOAN PURCHASE AND SALE AGREEMENT (the “Agreement”) is dated as of September 13, 2017, between RIALTO
MORTGAGE FINANCE, LLC, a Delaware limited liability company, as seller (in such capacity, together with its successors and
permitted assigns hereunder, “Seller”), and FS CREIT Originator LLC, a Delaware limited liability company,
as buyer (in such capacity, together with its successors and permitted assigns hereunder, “Buyer”).

 

RECITALS

 

The
following recitals are a material part of this Agreement.

 

A.            Seller
owns that certain commercial mortgage loan (the “Mortgage Loan”) in the original principal amount of $9,500,000.00
between Mortgagor (hereinafter defined) and Seller, as lender, as evidenced by that certain Promissory Note dated as of February
23, 2016.

 

B.            Buyer
desires to purchase the Mortgage Loan, and Seller desires to sell, assign, transfer, set over, and otherwise convey the Mortgage
Loan to Buyer, or its assignee, without recourse, except as otherwise provided herein, subject to the terms and conditions set
forth in this Agreement.

 

C.            Buyer
and Seller desire that the closing of the above-referenced purchase and sale of the Mortgage Loan occur promptly following the
execution of this Agreement by Buyer and Seller.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth in this Agreement, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties to this Agreement, intending to be legally bound, hereby
agree as follows:

 

SECTION
1. Defined Terms.

 

For
the purposes of this Agreement, the following capitalized terms, unless the context otherwise requires, have the respective meanings
set forth below:

 

“Agreement”
means this Mortgage Loan Purchase and Sale Agreement, as it may be amended, modified, supplemented, or restated from time to time.

 

“Assignment
of Leases” is as defined on Schedule I attached hereto, together with all amendments and modifications thereto.

 

    

     

    

 

“Business
Day” means any day other than a Saturday, a Sunday, or a day on which banking institutions in the state of New York
are authorized or obligated by law or executive order to remain closed.

 

“Buyer
Related Parties” has the meaning set forth in Section 6(f) of this Agreement

 

“Closing”
has the meaning set forth in Section 4 of this Agreement.

 

“Closing
Date” means September 13, 2017.

 

“Effective
Date” means the date of this Agreement.

 

“Governmental
Authority” means any federal, state, county, or municipal governmental body, political subdivision, agency, authority,
board, bureau, commission, department, instrumentality, or other public body, or any court or administrative tribunal.

 

“Loan-Related
Subjects” has the meaning set forth in Section 6(d)(i) of this Agreement.

 

“Mortgage”
is as defined on Schedule I attached hereto, together with all amendments and modifications thereto.

 

“Mortgage
File” means, with respect to the Mortgage Loan, the items described in Section 3(b) of this Agreement, all Mortgage
Loan Documents, and all leases, lease guaranties, management agreements, third party contracts, third party reports, appraisals,
title insurance policies, title exceptions, surveys, lien searches, insurance policies, applications, organizational and authority
documents related to Mortgagor, financial statements, and credit reports received by Seller prior to the Closing Date.

 

“Mortgage
Loan Documents” means, with respect to the Mortgage Loan, the Mortgage Note, the Mortgage, and any and all documents
executed and/or delivered in connection with the origination of the Mortgage Loan, including the documents described on Schedule
I attached hereto.

 

“Mortgage
Note” is as defined on Schedule I attached hereto, evidencing the indebtedness of Mortgagor under the Mortgage Loan,
together with any rider, addendum, or amendment thereto, or any renewal, substitution, or replacement of such promissory note.

 

“Mortgaged
Property” means the real property (together with all improvements and fixtures thereon) and personal property subject
to the lien of the Mortgage and the other Mortgage Loan Documents and constituting the collateral for the Mortgage Loan.

 

“Mortgagor”
means the “Borrower” defined on Schedule I attached hereto, together with its successors and assigns.

 

    2

     

    

 

“Person”
means any individual, corporation, partnership, joint venture, association, limited liability company, joint-stock company, trust,
unincorporated organization, or government or any agency or political subdivision thereof.

 

“Purchase
Price” means the sum of NINE MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($9,500,000.00), as may be adjusted by
the amount of any reserves not transferred to Buyer at Closing.

 

“Related
Persons” means the respective officers, directors, shareholders, partners, members, managers, attorneys, agents, representatives,
employees, affiliates, servicers, heirs, successors, and assigns of Mortgagor, Seller, or Buyer (as applicable in a particular
reference), and the respective heirs, successors, and assigns of all such Persons.

 

“Reserves”
means all tax, insurance, or other escrow deposits, impounds, or reserves held by Seller or any of its agents on the Closing Date
and not previously applied to pay any of Mortgagor’s obligations under the Mortgage Loan Documents.

 

“Seller
Related Parties” has the meaning set forth in Section 6(e) of this Agreement

 

SECTION
2. Agreement to Purchase. 

 

(a)    
      Subject to the provisions of this Agreement, Seller hereby agrees to sell, and Buyer agrees to purchase,
the Mortgage Loan, the Mortgage Loan Documents, and the Mortgage File on the Closing Date for a non-negotiable purchase price
equal to the Purchase Price.

 

(b)           No
later than 11:00 A.M. (New York City time) on the Closing Date, Buyer shall pay to Seller, via wire transfer of immediately available
funds to the account specified on Schedule II attached hereto, the Purchase Price.

 

(c)           Buyer
agrees to assume and to perform all of Seller’s duties, obligations, and liabilities accruing on or after the Closing Date
with respect to the Mortgage Loan, including (i) compliance with all legal requirements relating to the Mortgage Loan, including
those arising under (A) the Fair Debt Collection Practices Act, (B) the Fair Credit Reporting Act, (C) the Depository Institutions
Deregulation and Monetary Control Act of 1980, as amended, (D) the Equal Credit Opportunity Act, (E) any state statutes similar
to the foregoing federal acts, (F) requirements relating to any guaranty of the Mortgage Loan by any Governmental Authority or
to private mortgage insurance, and (G) federal and state usury laws, and (ii) all other obligations and responsibilities of the
lender, holder, mortgagee, assignee, judgment holder, or other similarly designated party under the Mortgage Loan Documents.

 

SECTION
3. Conveyance of Mortgage Loan.

 

(a)           Effective
as of the Closing, upon receipt of the Purchase Price, Seller does hereby transfer, assign, set over, and otherwise convey to
Buyer, without recourse except as expressly set forth herein, the Mortgage Loan, including, without limitation, all of the right,
title, and interest of the Seller in and to the proceeds of any related title, hazard, or other insurance policies.

 

    3

     

    

 

(b)           No
later than 3:00 P.M. (New York City time) on the Closing Date, Seller shall deposit or cause to be delivered to Buyer the following
documents and instruments (collectively, the “Closing Documents”):

 

(i)              an
original of the Mortgage, with (unless the particular item has not been returned from the applicable recording office) evidence
of recording indicated thereon;

 

(ii)             an
original assignment of the Mortgage from Seller to Buyer or in blank, in the form attached hereto as Exhibit A;

 

(iii)            an
original of the Assignment of Leases, with (unless the particular item has not been returned from the applicable recording office)
evidence of recording indicated thereon;

 

(iv)            an
original assignment of the Assignment of Leases from Seller to Buyer or in blank, in the form attached hereto as Exhibit
B;

 

(v)             a
copy of the filed UCC financing statements filed with respect to the Mortgage Loan with the Delaware Secretary of State and the
County Clerk of Harrison County, Mississippi;

 

(vi)            the
assignments of UCC financing statements to be filed with respect to the Mortgage Loan with the Delaware Secretary of State and
the County Clerk of Harrison County, Mississippi, each from Seller to Buyer or in blank, in the applicable form attached hereto
as Exhibit C;

 

(vii)           the
original executed Mortgage Note, endorsed (either on the face thereof or pursuant to a separate allonge) “Pay to the order
of FS CREIT ORIGINATOR LLC, without recourse” or in blank in the form attached hereto as Exhibit D;

 

(viii)
         an original of the Guaranty Agreement from MATTHEW A. SHARP and J. DAVID KELSEY (individually and collectively, “Guarantor”),
to Seller;

 

(ix)             an
original of the Environmental Indemnity Agreement from Mortgagor and Guarantor to Seller;

 

(x)              an
original of the Assignment of Management Agreement and Subordination of Management Agreement from Mortgagor to Seller, and acknowledged
and consented to by HAMILTON POINT PROPERTY MANAGEMENT LLC, a Delaware limited liability company, as the property manager; and

 

(xi)             an
original executed General Assignment and Assumption from Seller to Buyer, in the form attached hereto as Exhibit E.

 

(c)           All
accrued interest on the Mortgage Note due and owing through the day prior to the Closing Date shall be paid and payable to Seller
and shall be the sole and exclusive property of Seller, and Buyer shall have no right, title, or interest thereto or therein and
shall not be entitled to any credits therefor. All interest on the Mortgage Note accruing on and after the Closing Date shall
be paid and payable to Buyer and shall be the sole and exclusive property of Buyer, and Seller shall have no right, title, or
interest thereto or therein and shall not be entitled to any credits therefor. Notwithstanding anything to the contrary set forth
herein or in the Mortgage Loan Documents, the origination Fee (as defined in the Mortgage Loan Documents) is earned by and retained
by Seller.

 

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(d)           Upon
the sale of the Mortgage Loan, the Mortgage Loan Documents, and the Mortgage File to Buyer, the ownership of the Mortgage Note,
Mortgage Loan, the Mortgage Loan Documents, and the contents of the Mortgage File shall be vested in Buyer and its successors
and assigns. Seller’s records will reflect the transfer of the Mortgage Loan, the Mortgage Loan Documents, and the Mortgage
File to Buyer as a sale.

 

(e)           Any
and all payments received by a party from or on behalf of Mortgagor which belong to the other party shall be held by such receiving
party for the benefit of the other party and shall be delivered to such other party within five (5) Business Days after the receipt
thereof. The obligations of the parties under this Section 3(e) shall survive the Closing.

 

(f)            From
and after the Closing Date, Seller shall promptly forward to Buyer any and all correspondence received by Seller with respect
to the Mortgage Loan and shall reasonably cooperate with Buyer in taking any further actions as may be necessary to notify Mortgagor
or any other party of the transfer of the Mortgage Loan or to effect such transfer. The obligations of Seller under this Section
3(f) shall survive the Closing.

 

SECTION
4. Closing. The closing of the purchase and sale of the Mortgage Loan (the “Closing”) shall occur
not later than 4:00 P.M. (New York City time) on the Closing Date. On the Closing Date, subject to the satisfaction of the conditions
precedent set forth in Section 7 of this Agreement, Buyer shall pay by wire transfer to Seller the Purchase Price, in accordance
with wire transfer instructions delivered by Seller. Seller shall immediately deliver the Closing Documents to Buyer in such manner
as Buyer may direct.

 

SECTION
5. Intentionally Omitted. 

 

SECTION
6. Representations, Warranties, Covenants, Acknowledgements, and Disclaimers.

 

(a)           Seller
hereby represents and warrants to Buyer, as of the date of this Agreement, and shall be deemed to restate as of the Closing Date,
as follows:

 

(i)               Seller
is a Delaware limited liability company organized and validly existing under the laws of the State of Delaware and is in compliance
with the laws of the States of Mississippi and New York to the extent necessary to ensure the enforceability of the Mortgage Loan
Documents and to perform its obligations under this Agreement;

 

(ii)              Seller
has full power and authority and has taken all action necessary to authorize it to enter into and perform its obligations under
this Agreement and all other documents or instruments contemplated hereby, and this Agreement has been duly authorized, executed,
and delivered by Seller, and constitutes the legal, valid, and binding obligation of Seller, enforceable in accordance with its
terms;

 

    5

     

    

 

(iii)             The
execution, delivery, and performance of this Agreement by Seller does not conflict with the organizational documents of Seller,
or with any law, statute, or regulation applicable to Seller, or any mortgage, indenture, or other contract or agreement to which
Seller is a party;

 

(iv)            Neither
Seller nor any of its affiliates has dealt or negotiated with, or engaged on its own behalf or for its benefit, any Person as
an agent, broker, dealer, or otherwise who is entitled to a commission or fee in connection with the sale of the Mortgage Loan
and the Mortgage Loan Documents by Seller;

 

(v)             As
of the Closing Date, Seller is the sole owner of the Mortgage Loan and the Mortgage Loan Documents, free and clear of any pledge
or encumbrance;

 

(vi)            The
outstanding principal balance of the Mortgage Loan as of the date of this Agreement is as set forth on Schedule III attached
hereto, and Seller is under no obligation to advance any further principal amounts with respect to the Mortgage Loan;

 

(vii)           The
balances of all Reserves contemplated or required under the Mortgage Loan Documents are as set forth on Schedule III attached
hereto, and neither Seller nor any servicer of the Mortgage Loan engaged by Seller is holding any other amounts for the account
of Mortgagor or with respect to the Mortgage Loan;

 

(viii)          No
claims have been made by Seller under the American Land Title Association (ALTA) lender’s title insurance policy (the “Title
Insurance Policy”) issued in connection with the Mortgage Loan and Seller has not done, by act or omission, anything
that would, and Seller has no knowledge of any other circumstance that would, impair the coverage under the Title Insurance Policy;

 

(ix)             A
complete and accurate list of all documents evidencing, securing, or executed in connection with the Mortgage Loan, including,
without limitation, any side letters (exclusive of typical correspondence between Seller’s servicer and Mortgagor, loan
applications, term sheets, commitment letters, and similar ancillary documents) or any intercreditor or other similar agreements
applicable to the Mortgage Loan is set forth on Schedule I attached hereto, true and correct copies of which have been
previously delivered to Buyer by Seller, and the terms of such documents have not been amended, replaced, restated, supplemented,
or modified in any respect;

 

(x)              The
Mortgage File, as made available for review by Buyer prior to the date of this Agreement, contains true and correct copies of
all leases, lease guaranties, management agreements, third party contracts, third party reports, appraisals, title insurance policies,
and title exceptions in Seller’s possession or under Seller’s control with respect to the Mortgaged Property and all
organizational documents, financial statements, and third party reports in Seller’s possession or under Seller’s control
with respect to Mortgagor, Mortgagor’s principals, and the guarantors of the Mortgage Loan;

 

    6

     

    

 

(xi)             Seller
has not received any written notice that the Mortgage Loan or any of the Mortgage Loan Documents is subject to any right of rescission,
set-off, abatement, diminution, counterclaim, or defense, including the defense of usury;

 

(xii)            Seller
has complied with all of Seller’s obligations under the Mortgage Loan Documents in all material respects, and Seller has
not received any written notice alleging a default by Seller with respect to the Mortgage Loan or the Mortgage Loan Documents;

 

(xiii)           Except
as may be set forth in the loan file, Seller has not received any written notice of condemnation (pending or threatened) for all
or any portion of the Mortgaged Property;

 

(xiv)           There
is no default in the payment obligations of Mortgagor under the Mortgage Loan Documents, and, to Seller’s knowledge, there
is no other default by Mortgagor under any of the Mortgage Loan Documents; no default or breach by Mortgagor under the Mortgage
Loan Documents has been waived by written instrument signed by Seller; and to Seller’s knowledge, no event has occurred
which, with the passing of time or giving of notice, or both, would constitute a default or breach by Mortgagor under the Mortgage
Loan Documents; and

 

(xv)           There
are no actions or proceedings against, or investigations of, Seller pending or, to Seller’s knowledge, threatened in writing
against Seller before any court, administrative agency or other tribunal, the outcome of which could reasonably be expected to
materially and adversely affect the transfer of the Mortgage Loan to Purchaser or the execution or delivery by, or enforceability
against, Seller of this Agreement or have an effect on the financial condition of Seller that would materially and adversely affect
the ability of Seller to perform its obligations under this Agreement.

 

Notwithstanding
the foregoing, if any of the representations or warranties of Seller contained in this Agreement are false or inaccurate, and
Buyer nonetheless closes the transactions hereunder and purchases the Mortgage Loan on the Closing Date, then Seller shall have
no liability or obligation respecting such false or inaccurate representations or warranties in the event that prior to the Closing
Date, Seller shall have notified Buyer in writing of the false or inaccurate representations or warranties. The foregoing representations
and warranties shall survive the Closing.

 

(b)           Buyer
hereby represents and warrants to and covenants with Seller, as of the date of this Agreement, and shall be deemed to restate
as of the Closing Date, as follows:

 

(i)              Buyer
is a Delaware limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware;

 

(ii)             Buyer
has full power and authority and has taken all action necessary to authorize it to enter into and perform its obligations under
this Agreement and all other documents or instruments contemplated hereby, and this Agreement has been duly authorized, executed,
and delivered by Buyer, and constitutes the legal, valid, and binding obligation of Buyer, enforceable in accordance with its
terms;

 

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(iii)            The
execution, delivery, and performance of this Agreement by Buyer does not conflict with the organizational documents of Buyer,
or with any law, statute, or regulation applicable to Buyer, or any mortgage, indenture, or other contract or agreement to which
Buyer is a party;

 

(iv)            Neither
Buyer nor any of its affiliates has dealt or negotiated with, or engaged on its own behalf or for its benefit, any Person as an
agent, broker, dealer, or otherwise who is entitled to a commission or fee in connection with the sale of the Mortgage Loan and
the Mortgage Loan Documents by Buyer; and

 

(v)             There
are no actions or proceedings against, or investigations of, Buyer pending or, to Buyer’s knowledge, threatened against
Buyer before any court, administrative agency or other tribunal, the outcome of which could reasonably be expected to adversely
affect the transfer of the Mortgage Loan, the execution, delivery or enforceability of this Agreement or have an effect on the
financial condition of Buyer that would materially and adversely affect the ability of Buyer to perform its obligations under
this Agreement.

 

(c)           Buyer
acknowledges that Seller has not authorized any employee, agent, representative, broker, third party, or other Person to give
any assurance or make any warranty, representation, or promise to Buyer on Seller’s behalf for any purpose, other than those
specifically stated in this Agreement.

 

(d)           The
parties unconditionally and irrevocably agree that, except with respect to the representations, warranties, and covenants of Seller
as set forth above in the General Assignment and Assumption, this Section 6 and as otherwise expressly set forth in this
Agreement:

 

(i)               Seller
has made no warranties and representations and has given no assurances whatsoever to Buyer or any other Person with respect to
the Mortgage Loan, the Mortgage Loan Documents, the Mortgage File, the Mortgagor, the Mortgaged Property, or any other matter
relating to any of such matters or this Agreement (collectively, the “Loan-Related Subjects”);

 

(ii)              Seller
hereby absolutely, unconditionally, and irrevocably DISCLAIMS all warranties, representations, promises, covenants, agreements,
or guaranties of any kind or character whatsoever, whether express or implied, oral or written, past, present, or future with
respect to the Loan-Related Subjects, including all warranties of merchantability and all warranties of fitness for a particular
purpose;

 

(iii)             The
sale and purchase of documents and interests relating to the Mortgage Loan as contemplated in this Agreement is being made strictly
on an “AS IS, WHERE IS” BASIS, WITH ALL FAULTS, AND WITHOUT RECOURSE of any kind or nature against Seller, express
or implied;

 

(iv)            Buyer
unconditionally and irrevocably acknowledges and agrees that Buyer (A) has not received or relied on warranties, representations,
or assurances from Seller or any other Person on Seller’s behalf with respect to the Loan-Related Subjects, (B) has not
received any documents or information concerning the Loan-Related Subjects from Seller or any other Person on Seller’s behalf
other than the contents of this Agreement, other documents required under this Agreement, and the Mortgage File, and (C) is relying
solely on its own investigations and its own knowledge of or experience in commercial real estate lending and business transactions
similar to the sale and purchase contemplated in this Agreement in determining whether to complete the Closing; and

 

    8

     

    

 

(v)             Buyer
acknowledges and agrees that in entering into this Agreement, it has assumed (and if it completes the purchase of the Mortgage
Loan, it will have assumed) all risks with respect to the completeness, accuracy, sufficiency, value, enforceability, or effect
of, and all other matters relating to, the Mortgage Loan, the Mortgage Loan Documents, the Mortgage File, the Mortgagor, and the
Mortgaged Property, including possible full or partial loss that may result from the credit, collateral, collection, and recovery
risks associated with commercial real estate lending generally and the quality, character, and attributes of the Mortgage Loan
in particular.

 

(e)           In
addition to any other obligations of Buyer hereunder, Buyer hereby agrees to indemnify and hold Seller and any agent, advisor,
representative, affiliate, employee, director, partner, member, beneficiary, investor, servant, shareholder, trustee, or other
Person acting on Seller’s behalf or otherwise related to or affiliated with Seller (collectively, “Seller Related
Parties”) and hold harmless Seller and Seller Related Parties from and against any and all liabilities, claims, losses,
damages, and expenses (including, without limitation, reasonable attorneys’ fees actually incurred) resulting from or in
any way arising out of the breach of any representation, warranty, or covenant of Buyer set forth herein, or the obligations of
Buyer under the Mortgage Loan Documents as arising from and after the Closing Date.

 

(f)         
  In addition to any other obligations of Seller hereunder, Seller hereby agrees to indemnify and hold Buyer and
any agent, advisor, representative, affiliate, employee, director, partner, member, beneficiary, investor, servant,
shareholder, trustee, or other Person acting on Buyer’s behalf or otherwise related to or affiliated with Buyer
(collectively, “Buyer Related Parties”) and hold harmless Buyer and Buyer Related Parties from and against
any and all liabilities, claims, losses, damages, and expenses (including, without limitation, reasonable attorneys’
fees actually incurred) resulting from or in any way arising out of the failure of Seller to comply with the covenants set
forth herein, the inaccuracy of any representations and warranties made by Seller herein, or the ownership of the Mortgage
Loan and the Mortgage Loan Documents prior to the Closing.

 

(g)           Each
indemnification under this Agreement and/or under any agreement or document executed and delivered pursuant to this Agreement
shall be subject to the following provisions: (i) the indemnitee shall notify the indemnitor of any such claim against the indemnitee
within forty-five (45) days after it has notice of such claim, but failure to notify the indemnitor shall in no case prejudice
the rights of the indemnitee under this Agreement unless the indemnitor shall be prejudiced by such failure and then only to the
extent of such prejudice; (ii) the indemnitor shall not enter into any settlement which (A) requires an admission of guilt by
the indemnitee, (B) exposes the indemnitee to any criminal or civil liability, or (C) does not include a full release of the indemnitee,
and (iii) should the indemnitor fail to discharge or undertake to defend the indemnitee against such liability within ten (10)
days after the indemnitee gives the indemnitor written notice of the same, then the indemnitee may settle such liability, and
the indemnitor’s liability to the indemnitee shall be conclusively established by such settlement, the amount of such liability
to include both the settlement consideration and the reasonable costs and expenses (including, without limitation, attorneys’
fees and disbursements) incurred by the indemnitee in effecting such settlement. The indemnification obligations under this Agreement
shall survive the Closing or a termination of this Agreement.

 

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SECTION
7. Conditions Precedent. The Closing of the sale of the Mortgage Loan, the Mortgage Loan Documents, and the Mortgage
File shall be subject to each of the following conditions:

 

(a)           All
of the respective representations and warranties of Seller made pursuant to Section 6 of this Agreement shall be true and
correct in all material respects as of the Closing Date;

 

(b)           All
of the respective representations and warranties of Buyer made pursuant to Section 6 of this Agreement shall be true and
correct in all material respects as of the Closing Date; and

 

(c)          
All other terms and conditions of this Agreement required to be complied with on or before the Closing Date shall have been complied
with in all material respects.

 

SECTION
8. Costs and Attorney Fees.

 

(a)           Except
as otherwise specified in this Agreement, each party to this Agreement shall pay all of its own costs and expenses incurred in
connection with the transaction contemplated under this Agreement, including all legal costs and expenses for preparing, negotiating,
executing, and delivering this Agreement and any related documents and consummating the transaction.

 

(b)           If
any dispute arises between the parties with respect to the matters covered by this Agreement that leads to a proceeding to resolve
such dispute, the prevailing party in such proceeding shall be entitled to receive, as determined by a court of competent jurisdiction
in a final non-appealable decision, such prevailing party’s reasonable attorneys’ fees, expert witness fees, and other
out-of-pocket litigation expenses incurred in connection with such proceeding, in addition to any other relief to which such prevailing
party may be entitled.

 

SECTION
9. Intentionally Deleted.

 

SECTION
10. Notices. All demands, notices, and communications under this Agreement shall be in writing and shall be deemed
to have been duly given when mailed, by registered or certified mail, return receipt requested, or, if sent by other means, when
received by the other party. Notices to Seller shall be directed to Rialto Mortgage Finance, LLC, 600 Madison Avenue, 12th Floor,
New York, New York 10022, Attn: Kenneth Gorsuch, or such other address as may be designated by Seller to Buyer in writing, and
notices to Buyer shall be directed to FS CREIT Finance WF-1 LLC, 201 Rouse Boulevard, Philadelphia, Pennsylvania 19112, Attn:
General Counsel, or such other address as may be designated by Buyer to Seller in writing.

 

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SECTION
11. Brokers. Each party represents and warrants to the other that neither of them has contracted with any broker in
connection with the negotiations of the terms of this Agreement or the execution thereof.

 

SECTION
12. Severability of Provisions. Any part, provision, representation, warranty, or covenant of this Agreement that is
prohibited or unenforceable or is held to be void or unenforceable in any particular jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Agreement,
and any such prohibition or unenforceability in any particular jurisdiction shall not invalidate or render unenforceable such
provision in any other jurisdiction. To the extent permitted by applicable law, the parties to this Agreement waive any provision
of law that prohibits or renders void or unenforceable any provision of this Agreement.

 

SECTION
13. Rights Cumulative; Waivers. The rights of each of the parties under this Agreement are cumulative and may be exercised
as often as any party considers appropriate. The right of each of the parties hereunder shall not be capable of being waived or
varied otherwise than by an express waiver or variation in writing. Any failure to exercise or any delay in exercising any of
such rights shall not operate as a waiver or variation of that or any other such right. Any defective or partial exercise of any
of such rights shall not preclude any other or further exercise of that or any other such right. No act or course of conduct or
negotiation on the part of any party shall in any way preclude such party from exercising any such right or constitute suspension
or any variation of any such right.

 

SECTION
14. Headings. The headings of the Sections contained in this Agreement are inserted for convenience only and shall
not affect the meaning or interpretation of this Agreement or any provision of this Agreement.

 

SECTION
15. Survival. The agreements that are stated herein to survive the Closing shall not merge into the documents executed
and delivered at Closing, but instead shall be independently enforceable. Buyer expressly acknowledges and agrees that Seller
has no obligation with respect to the Mortgage Loan that survives Closing, except as specifically set forth herein. The provisions
of this Section 15 shall survive the Closing.

 

SECTION
16. Assignment. Other than with respect to assignments to entities affiliated with Buyer or acting under a common or
related financial advisory arrangement with Buyer, this Agreement may not be assigned by Buyer without the prior written consent
of Seller, which consent Seller may grant or withhold in its sole and absolute discretion. Any attempted assignment by Buyer (other
than as referenced in the preceding sentence) without the prior consent of Seller shall be voidable by Seller. Subject to the
foregoing, this Agreement and the terms, covenants, conditions, provisions, obligations, undertakings, rights, and benefits of
this Agreement, including the Exhibits hereto, shall be binding upon and shall inure to the benefit of, the undersigned parties
and their respective heirs, executors, administrators, representatives, successors, and assigns.

 

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SECTION
17. Counterparts; Entire Agreement; Construction. This Agreement may be executed in any number of counterparts, each
of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument; signature
pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are
physically attached to the same document. A signature of a party to this Agreement sent by facsimile, e-mail, or other electronic
transmission shall be deemed to constitute an original and fully effective signature of such party. This Agreement represents
the entire agreement between Seller and Buyer with respect to the transaction described in this Agreement, notwithstanding any
prior negotiations, understandings, or agreements, all of which are hereby superseded in their entirety. The terms “include”,
“including”, and similar terms shall be construed as if followed by the phrase “without being limited to.”
The term “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase “and/or.”
The words “hereof”, “herein”, “hereby”, “hereunder”, and similar terms in this
Agreement refer to this Agreement as a whole and not to any particular provision or section of this Agreement. Words of masculine,
feminine, or neuter gender mean and include the correlative words of the other genders, and words importing the singular number
mean and include the plural number, and vice versa.

 

SECTION
18. Governing Law. The terms and provisions of this Agreement shall be governed by, and construed in accordance with,
the substantive laws of the State of New York without regard to conflict of law principles.

 

SECTION
19. Jurisdiction and Service of Process. Buyer and Seller agree to submit to personal jurisdiction in the State of
New York in any action or proceeding arising out of this Agreement and, in furtherance of such agreement, Buyer and Seller hereby
agree and consent that, without limiting other methods of obtaining jurisdiction, personal jurisdiction over the parties in any
such action or proceeding may be obtained within or without the jurisdiction of any court located in the Borough of Manhattan,
New York, and that any process or notice of motion or other application to any such court in connection with any such action or
proceeding may be served upon the parties by registered or certified mail to or by personal service at the last known address
of the parties, whether such address be within or without the jurisdiction of any such court. Each party hereto hereby expressly
waives any and all rights that it may have to make any objections based on jurisdiction or venue to any action brought to enforce
this Agreement in any court in accordance with the above provisions.

 

SECTION
20. Further Assurances; Continued Access. Seller and Buyer agree to promptly execute and deliver such instruments and
take such further actions as the other party may, from time to time, reasonably request in order to effectuate the purposes and
intent and to carry out the terms of this Agreement. After the transfer of the Mortgage Loan Documents and Mortgage File to Buyer
under this Agreement, Buyer agrees that Seller shall have the continuing right to use, inspect, and make extracts from or copies
of any of the Mortgage Loan Documents or the Mortgage File in connection with any dispute or litigation related to the Mortgaged
Property or the Mortgage Loan to which Seller is a party, upon Seller’s reasonable notice to Buyer. Buyer further agrees
to allow Seller the temporary possession, custody, and use of original documents in the Mortgage File for any lawful purpose and
upon reasonable terms and conditions. Before destruction or disposition of the Mortgage File or any Mortgage Loan Documents transferred
hereunder, Buyer agrees to give reasonable notice to Seller and to allow Seller, at its own delivery expense, to recover the same
from Buyer.

 

    12

     

    

 

SECTION
21. Intentionally Omitted.

 

SECTION
22. Time of the Essence. Time is of the essence of all the terms and provisions of this Agreement.

 

SECTION
23. Independent Review; Joint Authorship. Each of the parties has actively participated in the negotiation and drafting
of this Agreement and the documents required hereunder and each has received independent legal advice from attorneys of its choice
with respect to the advisability of making and executing this Agreement and such other documents or waived its right to do so.
In the event of any dispute or controversy regarding authorship of this Agreement or any related documents, Seller and Buyer shall
be conclusively deemed to be the joint authors of this Agreement and all such other documents and no provision of this Agreement
or any such other document shall be interpreted against a party by reason of authorship.

 

SECTION
24. No Third Party Beneficiaries. Other than provisions of this Agreement dealing with the respective Related Persons
of Seller and Buyer, the provisions of this Agreement are not intended to benefit any Person not a party hereto.

 

SECTION
25. Waiver of Trial by Jury. EACH PARTY HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVES (TO THE EXTENT PERMITTED
BY APPLICABLE LAW) ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY OF ANY DISPUTE ARISING UNDER OR RELATING TO THIS AGREEMENT AND AGREES
THAT ANY SUCH DISPUTE SHALL, AT THE OPTION OF SELLER, BE TRIED BEFORE A JUDGE SITTING WITHOUT A JURY.

 

[NO
FURTHER TEXT - SIGNATURES APPEAR ON NEXT PAGE]

 

    13

     

    

 

IN
WITNESS WHEREOF, Seller and Buyer have caused this Mortgage Loan Purchase and Sale Agreement to be executed and delivered by their
respective undersigned duly authorized representatives as of the date first above written.

 

	 	“SELLER”:
	 	 	 
	 	RIALTO MORTGAGE FINANCE, LLC,
a Delaware limited liability company
	 	 	 
	 	By:	/s/ Kenneth M. Gorsuch
	 	Name:	Kenneth M. Gorsuch
	 	Title:	Authorized Signatory

 

	 	“BUYER”:
	 	 
	 	FS
    CREIT ORIGINATOR LLC, a Delaware limited liability company

 

	 	By:	FS CREIT FINANCE HOLDINGS
    LLC, a Delaware limited liability company, its sole member

 

	 	By:	FS CREDIT REAL ESTATE
    INCOME TRUST, INC., a Maryland corporation, its sole member

 

	 	By:	/s/ William Goebel
	 	Name:	William Goebel
	 	Title:	Chief Financial Officer

 

    

     

    

 

Schedule
I

 

Mortgage
Loan Documents

 

All
of the following documents are dated as of February 23, 2016, unless otherwise indiciated:

 

		a.	Loan
                                         Agreement (the “Loan Agreement”) between HPI CAMBRIDGE LLC, a Delaware
                                         limited liability company (“Borrower”), and RIALTO MORTGAGE FINANCE, LLC,
                                         a Delaware limited liability company (“Lender”);

 

		b.	First
                                         Amendment to Loan Agreement between RMF SUB 3, LLC, a Delaware limited liability
                                         company, and Borrower, dated as of May 5, 2016

 

		c.	Deed
                                         of Trust, Assignment of Leases and Rents, Fixture Filing and Security Agreement, made
                                         by Borrower in favor of Mark C. Orgler for the benefits of and Lender;

 

		d.	Assignment
                                         of Leases and Rents, made by Borrower to Lender;

 

		e.	Promissory
                                         Note made by Borrower to Lender;

 

		f.	Guaranty
                                         of Recourse Obligations by MATTHEW A. SHARP, an individual and J. DAVID KELSEY,
                                         an individual (collectively “Guarantor”) in favor of Lender;

 

		g.	First
                                         Amendment to Guaranty of Recourse Obligations by Guarantor in favor of RMF SUB 3,
                                         LLC, dated May 5, 2016.

 

		h.	Assignment
                                         of Management Agreement and Subordination of Management Fees made by and among Borrower,
                                         Lender, HAMILTON POINT PROPERTY MANAGEMENT LLC, a Delaware limited liability company;

 

		i.	Cash
                                         Management Agreement by Lender and Borrower;

 

		j.	Environmental
                                         Indemnity Agreement, made by Guarantor and Borrower in favor of Lender;

 

		k.	Restricted
                                         Account Agreement by and between Borrower, Lender, and Wells Fargo Bank, National Association;

 

		l.	Deposit
                                         Account Control Agreement by and between Lender, Borrower and Wells Fargo Bank, National
                                         Association;

 

		m.	Collateral
                                         Assignment of Interest Rate Protection Agreement by Borrower in favor of Lender;

 

		n.	UCC-1
                                         Financing Statement naming Lender as secured party and Borrower as debtor, filed with
                                         the Delaware Secretary of State on October 18, 2016 as U.C.C. Initial Filing No: 2016
                                         6404998;

 

		o.	UCC-1
                                         Financing Statement naming Lender as Secured Party and Borrower as Debtor, filed in the
                                         land records of Harrison County, Mississippi on November 11, 2016 as File No.: CFS16000056;

 

    Schedule I-1

     

    

 

		p.	Title
                                         Policy;

 

		q.	Title
                                         Commitment, including exception documents;

 

		r.	Closing
                                         Escrow Agreement;

 

		s.	Borrower’s
                                         Form W-9;

 

		t.	Borrower’s
                                         Certification;

 

		u.	Zoning
                                         Conformance Report, prepared by Howard Zoning Associates, LLC, dated February 23, 2016;

 

		v.	Survey
                                         prepared by Gary A. Durbin, PLS, dated January 21, 2016;

 

		w.	New
                                         York Enforceability and Delaware Due Formation, Authority and Execution Opinion, issued
                                         by O’ Halloran Ryan LLP, dated February 23, 2016;

 

		x.	Mississippi
                                         Enforceability Opinion, issued by Watkins & Eager PLLC, dated February 23, 2016;

 

		y.	Rate
                                         Cap Opinion Letter, issued by Commonwealth Bank of Australia, dated February 23, 2016;

 

		z.	Borrower’s
                                         Organizational Documents; and

 

		aa.	Sole
                                         Member’s Organizational Documents.

 

    Schedule I-2

     

    

 

Schedule
II

Wire
Instructions

 

[OMITTED] 

 

    

     

    

 

Schedule
III

Mortgage
Loan and Reserve Balances

 

	ACCOUNT	RESERVE
    BALANCE
	Tax
    Account	$156,262.59
	Insurance
    Account	$0.00
	Required
    Repair Account	$0.08
	Capital
    Expenditure Account	$12,700.48
	Excess
    Cash Flow Account	$0.00

 

	Outstanding
    Principal Balance	$9,500,000.00

 

    

     

    

 

EXHIBIT
A

 

PREPARED
BY AND

UPON RECORDATION RETURN TO:

 

Cassin
& Cassin LLP

711
Third Avenue, 20th Floor

New
York, New York 10017

Attention:
Recording Department

	 

 

ASSIGNMENT
OF SECURITY INSTRUMENT

 

by

 

RIALTO
MORTGAGE FINANCE, LLC, a

Delaware limited liability company

 

to

 

FS
CREIT ORIGINATOR LLC, a

Delaware limited liability company

 

	Dated:	As
    of September___, 2017
	 	 
	Property
    Address:	Cambridge
    Apartments
	 	10900
    East Taylor Road
	 	Gulfport,
    Mississippi 39503
	 	 
	County:	Harrison

 

    	 	 	 

     

    

 

ASSIGNMENT
OF SECURITY INSTRUMENT

 

THIS
ASSIGNMENT OF SECURITY INSTRUMENT (this “Assignment”), made and entered into as of the _______ day of September,
2017, is made by RIALTO MORTGAGE FINANCE, LLC, a Delaware limited liability company, having an address at 600 Madison Avenue,
12th Floor, New York, New York 10022 (“Assignor”), in favor of FS CREIT ORIGINATOR LLC, a
Delaware limited liability company, having an address at 600 Madison Avenue, 12th Floor, New York, New York 10022 (“Assignee”).

 

W
I T N E S S E T H

 

WHEREAS,
Assignor is the present legal and equitable owner and holder of that certain Promissory Note dated as of February 23, 2016, executed
by HPI CAMBRIDGE LLC, a Delaware limited liability company (“Borrower”) and made payable to the order
of Assignor, as such was assigned to RMF SUB 3, LLC, a Delaware limited liability company pursuant to that certain Note Allonge
dated as of February 23, 2016, as such was further assigned to Assignor pursuant to that certain Note Allonge dated as of September
__, 2017 in the maximum principal amount of NINE MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($9,500,000.00) (the
“Note”) in connection with certain real property and improvements located thereon situated in the County of
Harrison, State of Mississippi, and more particularly described on Exhibit A annexed hereto and made a part hereof (the
“Premises”); and

 

WHEREAS,
the Note is secured, inter alia, by the Security Instrument (as hereinafter defined); and

 

WHEREAS,
the parties hereto desire that Assignor assign to Assignee, its successors and assigns, all of Assignor’s right, title and
interest in and to the Deed of Trust, Assignment of Leases and Rents, Fixture Filing and Security Agreement (the “Security
Instrument”).

 

NOW,
THEREFORE, in consideration of the premises above set forth and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged and agreed, Assignor and Assignee hereby covenant and agree as follows:

 

1.       Assignment.
Assignor does hereby transfer, assign, grant and convey to Assignee, its successors and assigns, all of the right, title and interest
of Assignor in and to the following described instrument, and does hereby grant and delegate to Assignee, its successors and assigns,
any and all of the duties and obligations of Assignor thereunder from and after the date hereof:

 

(See
Schedule A attached hereto and made a part hereof)

 

2.       Assumption.
From and after the date hereof, Assignee hereby accepts this Assignment and assumes and agrees to observe, perform and be bound
by all of the terms, covenants, agreements, conditions and obligations of the Security Instrument required to be observed or performed
by Assignor thereunder.

 

    	 	 	 

     

    

 

3.       Representations
and Warranties of Assignor. This Assignment is an absolute assignment. This Assignment is without recourse, representation
or warranty, express or implied, upon Assignor, except Assignor hereby warrants and represents to Assignee that:

 

 (a)       Prior
to the execution hereof, Assignor has not sold, transferred, assigned, conveyed, pledged or endorsed any right, title or interest
in the Security Instrument to any person or entity other than Assignee; and

 

 (b)       Assignor
has full right and power to sell and assign the same to Assignee subject to no interest or participation of, or agreement with,
any party other than Assignee.

 

4.       Governing
Law. This Assignment shall be governed by and construed in accordance with the laws of the State in which the Premises are
located.

 

5.       Successors
and Assigns. This Assignment shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and assigns.

 

6.       Headings.
The headings of the paragraphs of this Assignment have been included only for convenience, and shall not be deemed in any manner
to modify or limit any of the provisions of this Assignment or be used in any manner in the interpretation of this Assignment.

 

7.       Interpretation.
Whenever the context so requires in this Assignment, all words used in the singular shall be construed to have been used in the
plural (and vice versa), each gender shall be construed to include any other genders, and the word “person” shall
be construed to include a natural person, a corporation, a firm, a partnership, a joint venture, a trust, an estate or any other
entity.

 

8.       Partial
Invalidity. Each provision of this Assignment shall be valid and enforceable to the fullest extent permitted by law. If any
provision of this Assignment or the application of such provision to any person or circumstance shall, to any extent, be invalid
or unenforceable, then the remainder of this Assignment, or the application of such provision to persons or circumstances other
than those as to which it is held invalid or unenforceable, shall not be affected by such invalidity or unenforceability.

 

[NO
FURTHER TEXT ON THIS PAGE]

 

    	 	 	 

     

    

 

IN
WITNESS WHEREOF, Assignor has executed this Assignment of Security Instrument as of the day and year first above written.

 

	 	ASSIGNOR:
	 	 
	 	RIALTO
                    MORTGAGE FINANCE, LLC, a

                    Delaware
                    limited liability company

	 	 
	 	By: 	 
	 	Name:      Marshall Van Smith
	 	Title:        Authorized Signatory

 

ACKNOWLEDGMENT

 

	STATE OF FLORIDA	)
	 	) ss.:
	COUNTY OF MIAMI-DADE	)

 

PERSONALLY
appeared before me, the undersigned authority in and for the said county and state, on this _______ day of ______________, 2017
within my jurisdiction, the within named MARSHALL VAN SMITH, who proved to me on the basis of satisfactory evidence to
be the person whose name is subscribed in the above and foregoing instrument and acknowledged that he/she executed the same in
his/her representative capacity, and that by his/her signature on the instrument, and as the act and deed of the person or entity
upon behalf of which he/she acted, executed the above and foregoing instrument, after first having been duly authorized so to
do.

 

__________________________________    (NOTARY
PUBLIC)

 

My
commission expires:

_____________________

 

(Affix
official seal, if applicable)

 

    	 	 	 

     

    

 

EXHIBIT
A

 

(Premises
Description)

 

The
Property referred to in the foregoing instrument is located in Harrison County, Mississippi and is more particularly
described as follows:

 

 

 

    	 	 	 

     

    

 

SCHEDULE
A

 

(Description
of Security Instrument)

 

		1.	Deed
                                         of Trust, Assignment of Leases and Rents, Fixture Filing and Security Agreement made
                                         by HPI CAMBRIDGE LLC, a Delaware limited liability company to Rialto
                                         Mortgage Finance, LLC, a Delaware limited liability company in the principal
                                         amount of $9,500,000.00 dated as of February 23, 2016, recorded as ___________
                                         on ________ in the real property records of Harrison County, Mississippi, as assigned
                                         by that certain Assignment of Security Instrument, dated as of February 23, 2016, by
                                         RIALTO MORTGAGE FINANCE, LLC, a Delaware limited liability company, as assignor,
                                         to RMF SUB 3, LLC, a Delaware limited liability company, as assignee, recorded
                                         as _________________ on ___________ in the real property records of Harrison County,
                                         Mississippi, as further assigned by that certain Assignment of Security Instrument, dated
                                         as of September __, 2017, by RMF SUB 3, LLC, a Delaware limited liability company,
                                         as assignee, to RIALTO MORTGAGE FINANCE, LLC, a Delaware limited liability company,
                                         as assignee, recorded as __________ on __________ in the real property records of Harrison
                                         County, Mississippi.

 

    	 	 	 

     

    

 

EXHIBIT
B

 

PREPARED BY AND

UPON RECORDATION RETURN TO:

 

Cassin & Cassin LLP

711 Third Avenue, 20th Floor

New York, New York 10017

Attention: Recording Department

	 

 

ASSIGNMENT OF ASSIGNMENT

OF LEASES AND RENTS

 

by

 

RIALTO MORTGAGE FINANCE, LLC, a

Delaware limited liability company

 

to

 

FS CREIT ORIGINATOR LLC, a

Delaware limited liability company

 

	Dated:	As
    of September___, 2017
	 	 
	Property
    Address:	Cambridge
    Apartments
	 	10900
    East Taylor Road
	 	Gulfport,
    Mississippi 39503
	 	 
	County:	Harrison

 

    	 

    	 

    

 

ASSIGNMENT
OF ASSIGNMENT OF LEASES and RENTS

 

THIS ASSIGNMENT OF
ASSIGNMENT OF LEASES AND RENTS (this “Assignment”), made and entered into as of the _______ day of September,
2017, is by RIALTO MORTGAGE FINANCE, LLC, a Delaware limited liability company, having an address at 600 Madison Avenue,
12th Floor, New York, New York 10022 (“Assignor”), in favor of FS CREIT ORIGINATOR LLC, a
Delaware limited liability company, having an address at 600 Madison Avenue, 12th Floor, New York, New York 10022 (“Assignee”).

 

W
I T N E S S E T H

 

WHEREAS, Assignor is
the present legal and equitable owner and holder of that certain Promissory Note dated as of February 23, 2016, executed by HPI
CAMBRIDGE LLC, a Delaware limited liability company (“Borrower”) and made payable to the order of Assignor,
as such was assigned to RMF SUB 3, LLC, a Delaware limited liability company pursuant to that certain Note Allonge dated
as of February 23, 2016, as such was further assigned to Assignor pursuant to that certain Note Allonge dated as of September ___,
2017 in the maximum principal amount of NINE MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($9,500,000.00) (the “Note”)
in connection with certain real property and improvements located thereon situated in the County of Harrison, State of Mississippi,
and more particularly described on Exhibit A annexed hereto and made a part hereof (the “Premises”);
and

 

WHEREAS, the Note is
secured, inter alia, by the Assignment of Leases (as hereinafter defined); and

 

WHEREAS, the parties
hereto desire that Assignor assign to Assignee, its successors and assigns, all of Assignor’s right, title and interest in
and to the Assignment of Leases.

 

NOW, THEREFORE, in consideration
of the premises above set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged and agreed, Assignor and Assignee hereby covenant and agree as follows:

 

1.       Assignment.
Assignor does hereby transfer, assign, grant and convey to Assignee, its successors and assigns, all of the right, title and interest
of Assignor in and to the following described instrument, and does hereby grant and delegate to Assignee, its successors and assigns,
any and all of the duties and obligations of Assignor thereunder from and after the date hereof:

 

That certain Assignment of Leases
and Rents dated as of February 23, 2016 from Borrower, as assignor, to Assignor, as assignee, and recorded at _______________________
in the real property records of Harrison County, Mississippi as _____________________, as assigned by that certain Assignment of
Assignment of Leases and Rents, dated as of February 23, 2016 by Assignor, as assignor, to RMF SUB 3, LLC, a Delaware limited liability
company, as assignee, recorded as ______________ on ____________ in the real property records of Harrison County, Mississippi,
as further assigned by that certain Assignment of Assignment of Leases and Rents, dated as of September __, 2017 by RMF SUB 3,
LLC, a Delaware limited liability company, as assignor, to Assignee, as assignee, recorded as ____________ on ____________ in the
real property records of Harrison County, Mississippi (the “Assignment of Leases”), in respect of the Premises,
together with the notes and bonds secured thereby.

 

    	 	 	 

     

    

 

2.       Assumption.
From and after the date hereof, Assignee hereby accepts this Assignment and assumes and agrees to observe, perform and be bound
by all of the terms, covenants, agreements, conditions and obligations of the Assignment of Leases required to be observed or performed
by Assignor thereunder.

 

3.       Representations
and Warranties of Assignor. This Assignment is an absolute assignment. This Assignment is made without recourse, representation
or warranty, express or implied, upon Assignor, except Assignor hereby warrants and represents to Assignee that:

 

(a)       Prior
to the execution hereof, Assignor has not sold, transferred, assigned, conveyed, pledged or endorsed any right, title or interest
in the Assignment of Leases to any person or entity other than Assignee; and

 

(b)       Assignor
has full right and power to sell and assign the same to Assignee subject to no interest or participation of, or agreement with,
any party other than Assignee.

 

4.       Governing
Law. This Assignment shall be governed by and construed in accordance with the laws of the State in which the Premises are
located.

 

5.       Successors
and Assigns. This Assignment shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and assigns.

 

6.       Headings.
The headings of the paragraphs of this Assignment have been included only for convenience, and shall not be deemed in any manner
to modify or limit any of the provisions of this Assignment or be used in any manner in the interpretation of this Assignment.

 

7.       Interpretation.
Whenever the context so requires in this Assignment, all words used in the singular shall be construed to have been used in the
plural (and vice versa), each gender shall be construed to include any other genders, and the word “person” shall be
construed to include a natural person, a corporation, a firm, a partnership, a joint venture, a trust, an estate or any other entity.

 

8.       Partial
Invalidity. Each provision of this Assignment shall be valid and enforceable to the fullest extent permitted by law. If any
provision of this Assignment or the application of such provision to any person or circumstance shall, to any extent, be invalid
or unenforceable, then the remainder of this Assignment, or the application of such provision to persons or circumstances other
than those as to which it is held invalid or unenforceable, shall not be affected by such invalidity or unenforceability.

 

    	2 

     

    

 

[SIGNATURE PAGE FOLLOWS]

 

    	3 

     

    

 

IN WITNESS WHEREOF, Assignor
has executed this Assignment of Assignment of Leases and Rents as of the day and year first above written.

 

	 	ASSIGNOR:
	 	 
	 	RIALTO
                    MORTGAGE FINANCE, LLC, a

                    Delaware
                    limited liability company

	 	 
	 	By:	 
	 	Name:      Marshall Van Smith
	 	Title:        Authorized Signatory

  

ACKNOWLEDGMENT

 

	STATE OF FLORIDA	)
	 	) ss.:
	COUNTY OF MIAMI-DADE	)

 

PERSONALLY appeared before me, the undersigned
authority in and for the said county and state, on this _______ day of ______________, 2017 within my jurisdiction, the within
named MARSHALL VAN SMITH, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed
in the above and foregoing instrument and acknowledged that he/she executed the same in his/her representative capacity, and that
by his/her signature on the instrument, and as the act and deed of the person or entity upon behalf of which he/she acted, executed
the above and foregoing instrument, after first having been duly authorized so to do.

 

__________________________________    (NOTARY PUBLIC)

 

My commission expires:

_____________________

 

(Affix official seal, if applicable)

 

    	 

     

    

 

EXHIBIT A 

Premises
DESCRIPTION

 

The
Property referred to in the foregoing instrument is located in Harrison County, Mississippi and is more particularly
described as follows:

 

 

    	 

     

    

 

EXHIBIT
C

 

FORM
OF ASSIGNMENT OF UCC FINANCING STATEMENTS

 

(See
Attached)

 

    

     

    

    	 

    	 

    

    	 

    	 

    

    	 

    	 

    

     

     

    
 

EXHIBIT
D

 

NOTE ALLONGE

 

ENDORSEMENT to that certain
Promissory Note, dated as of February 23, 2016, in the stated principal amount of NINE MILLION FIVE HUNDRED THOUSAND AND NO/100
DOLLARS ($9,500,000.00), made by HPI CAMBRIDGE LLC, a Delaware limited liability company in favor of RIALTO MORTGAGE
FINANCE, LLC, a Delaware limited liability company, as such was assigned to RMF SUB 3, LLC, a Delaware limited liability
company pursuant to that certain Note Allonge dated as of February 23, 2016, as such was further assigned to RIALTO MORTGAGE
FINANCE, LLC, a Delaware limited liability company pursuant to that certain Note Allonge dated as of September ___, 2017.

 

Pay to the order of FS
CREIT ORIGINATOR LLC, a Delaware limited liability company, without recourse, representation or warranty, express or implied.

 

[NO FURTHER TEXT ON
THIS PAGE]

 

    	 	 	 

     

    

 

DATE: As of September _____, 2017

 

	 	
        RIALTO MORTGAGE FINANCE, LLC, a

        Delaware limited liability company

         

        By:___________________________________

        Name: Marshall Van Smith

        Title:   Authorized Signatory

        

 

    	 	 	 

     

    

 

EXHIBIT
E

 

GENERAL ASSIGNMENT AND ASSUMPTION

 

KNOW RIALTO MORTGAGE
FINANCE, LLC, a Delaware limited liability company, having an address at 600 Madison Avenue, 12th Floor, New York,
New York 10022, (“Assignor”), for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, hereby grants, sells, transfers, delivers, sets-over and conveys to FS CREIT ORIGINATOR LLC, a Delaware
limited liability company, having an address at 600 Madison Avenue, 12th Floor, New York, New York 10022 (“Assignee”),
all right, title and interest of Assignor in, to and under, or arising out of that certain mortgage loan in the original principal
amount of NINE MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($9,500,000.00) (the “Loan”), which Loan
is evidenced, secured by and more particularly described in those documents set forth in Exhibit A attached hereto and made
a part hereof (collectively, the “Loan Documents”), TOGETHER WITH all right, title and interest of Assignor
in, to and under or arising out of:

 

(a)          the
Loan Documents;

 

(b)          the
outstanding principal balance of the Loan is $_______________ and the most payment was received on August 9, 2017;

 

(c)          to
Assignor’s knowledge, no Event of Default shall have occurred and be continuing nor shall any event have occurred or failed
to occur which, with the passage of time or service of notice, or both, would constitute an Event of Default;

 

(d)         all
guaranties, insurance policies, indemnifications, releases, affidavits, certificates, title insurance policies, certificates of
deposit, performance bonds, letters of credit and other documents, reports, opinions, agreements, and instruments executed and/or
delivered in connection with the Loan;

 

(e)          all
assignments and/or pledges, whether direct or collateral, of leases, rents, beneficial or equitable interests, proceeds, royalties,
contracts, plans, specifications, permits, licenses, reserves, holdbacks, escrows, stocks, bonds and securities made to Assignor
in connection with the Loan and other such assignments of collateral, whether direct or collateral, made to Assignor in connection
with the Loan;

 

(f)          all
modifications, amendments, consolidations, renewals, extensions or restatements of any of the foregoing; and

 

(g)         all
demands, claims, causes of action and judgments relating to any of the foregoing and all rights accrued or to accrue thereunder.

 

Assignee hereby accepts
the foregoing assignment and assumes all of the rights and obligations of Assignor arising after the date hereof out of the Loan,
the Loan Documents and other interests so assigned.

 

TO HAVE AND TO HOLD the
same unto Assignee, its successors and assigns, forever.

 

     

     

    

 

It is expressly understood
that, except as expressly set forth herein, this Assignment is made by Assignor and assumed and accepted by Assignee without any
guarantee, representation or warranty of any kind on the part of Assignor and without recourse to Assignor in any event or for
any cause. Assignor hereby warrants and represents to Assignee that:

 

(a)          Prior
to the execution hereof, Assignor has not sold, transferred, assigned, conveyed, pledged or endorsed any right, title or interest
in the Loan Documents to any person or entity other than Assignee; and

 

(b)    
    Assignor has full right and power to sell and assign the same to Assignee subject to no interest or
participation of, or agreement with, any party other than Assignee.

 

This Assignment shall
be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

Whenever the context
so requires in this Assignment, all words used in the singular shall be construed to have been used in the plural (and vice versa),
each gender shall be construed to include any other genders, and the word “person” shall be construed to include a
natural person, a corporation, a firm, a partnership, a joint venture, a trust, an estate or any other entity.

 

Each provision of this
Assignment shall be valid and enforceable to the fullest extent permitted by law. If any provision of this Assignment or the application
of such provision to any person or circumstance shall, to any extent, be invalid or unenforceable, then the remainder of this Assignment,
or the application of such provision to persons or circumstances other than those as to which it is held invalid or unenforceable,
shall not be affected by such invalidity or unenforceability.

 

Assignor hereby agrees
to execute such other assignments, instruments and other documents as Assignee may reasonably request in confirmation of, and/or
in furtherance of, the assignment made hereunder.

 

THIS ASSIGNMENT SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK.

 

[THE REMAINDER OF THIS PAGE INTENTIONALLY
LEFT BLANK]

 

     

     

    

 

IN WITNESS WHEREOF, Assignor
has duly executed this Assignment as of the ______ day of September, 2017.

 

		ASSIGNOR:	 
	 	 	 	 
	 	RIALTO MORTGAGE FINANCE, LLC, a	 
	 	 Delaware limited liability company	 
	 	 	 	 
	 	By: 		 
	 	Name:     Marshall Van Smith	 
	 	Title:       Authorized Signatory	 

  

ACKNOWLEDGMENT

 

	STATE OF FLORIDA	)
	 	) ss.:
	COUNTY OF MIAMI-DADE	)

 

PERSONALLY appeared before me, the undersigned
authority in and for the said county and state, on this _______ day of ______________, 2017 within my jurisdiction, the within
named MARSHALL VAN SMITH, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed
in the above and foregoing instrument and acknowledged that he/she executed the same in his/her representative capacity, and that
by his/her signature on the instrument, and as the act and deed of the person or entity upon behalf of which he/she acted, executed
the above and foregoing instrument, after first having been duly authorized so to do. 

 

__________________________________   (NOTARY PUBLIC)

 

My commission expires:

_____________________

 

(Affix
official seal, if applicable)

 

     

     

    

 

EXHIBIT
A

 

DESCRIPTION
OF LOAN DOCUMENTS

 

All of the following documents are dated as of February 23,
2016, unless otherwise indicated:

 

		a.	Loan Agreement between HPI CAMBRIDGE LLC, a Delaware limited liability company (“Borrower”) and RIALTO
MORTGAGE FINANCE, LLC, a Delaware limited liability company (“Lender”), as assigned to RMF SUB 3, LLC, a
Delaware limited liability company (“SUB 3”), by that certain General Assignment and Assumption, dated as of
February 23, 2016; as further assigned to Lender, by that certain General Assignment and Assumption, dated as of September
___, 2017;

 

		b.	First Amendment to Loan Agreement between Borrower and SUB 3, dated May 5, 2016, as assigned to Lender by that certain General
Assignment and Assumption, dated as of September ____, 2017;

 

		c.	Deed of Trust, Assignment of Leases and Rents, Fixture Filing and Security Agreement, made by Borrower in favor of Mark C.
Orgler for the benefit of Lender, as assigned to SUB 3, by that certain Assignment of Security Instrument, dated as of February
23, 2016; as further assigned to Lender by that certain Assignment of Security Instrument, dated as of September ___, 2017;

 

		d.	Assignment of Leases and Rents, made by Borrower to Lender, as assigned to SUB 3 by that certain Assignment of Assignment of
Leases and Rents, dated as of February 23, 2016; as further assigned to Lender by that certain Assignment of Leases and Rents,
dated as of September ___, 2017;

 

		e.	Promissory Note made by Borrower to Lender, as assigned to SUB 3 by that certain Note Allonge, dated as of February 23, 2016;
as further assigned to Lender by that certain Note Allonge, dated as of September ___, 2017;

 

		f.	Guaranty of Recourse Obligations by MATTHEW A. SHARP, an individual and J. DAVID KELSEY, an individual (collectively
“Guarantor”) in favor of Lender, as assigned to SUB 3 by that certain General Assignment and Assumption, dated as of
February 23, 2016; as further assigned to Lender by that certain General Assignment and Assumption, dated as of September ___,
2017;

 

		g.	First Amendment to Guaranty of Recourse Obligations by Guarantor in favor of Lender, as assigned to SUB 3, by that certain
General Assignment and Assumption, dated as of February 23, 2016; as further assigned to Lender by that certain General Assignment
and Assumption, dated as of September ___, 2017;

 

		h.	Assignment of Management Agreement and Subordination of Management Fees by Borrower to Lender, and acknowledged and consented
to by HAMILTON POINT PROPERTY MANAGEMENT LLC, a Delaware limited liability company, as assigned to SUB 3 by that certain
General Assignment and Assumption, dated as of February 23, 2016; as further assigned to Lender by that certain General Assignment
and Assumption, dated as of September ___, 2017;

 

		i.	Cash Management Agreement by Lender and Borrower, as assigned to SUB 3 by that certain General Assignment and Assumption, dated
as of February 23, 2016; as further assigned to Lender by that certain General Assignment and Assumption, dated as of September
___, 2017;

 

		j.	Environmental Indemnity Agreement, made by Guarantor and Borrower in favor of Lender, as assigned to SUB 3 by that certain
General Assignment and Assumption, dated as of February 23, 2016; as further assigned to Lender by that certain General Assignment
and Assumption, dated as of September ___, 2017;

 

     

     

    

 

		k.	Restricted Account Agreement by and between Borrower, Lender, and Wells Fargo Bank, National Association, as assigned to SUB
3 by that certain General Assignment and Assumption, dated as of February 23, 2016; as further assigned to Lender by that certain
General Assignment and Assumption, dated as of September ___, 2017;

 

		l.	Deposit Account Control Agreement by and between Borrower, Lender and Wells Fargo Bank, National Association, as assigned to
SUB 3 by that certain General Assignment and Assumption dated as of February 23, 2016; as further assigned to Lender by that certain
General Assignment and Assumption, dated as of September ___, 2017;

 

		m.	Collateral Assignment of Interest Rate Protection Agreement by Borrower in favor of Lender, as assigned to SUB 3 by that certain
General Assignment and Assumption, dated as of February 23, 2016; as further assigned to Lender by that certain General Assignment
and Assumption, dated as of September ___, 2017;

 

		n.	UCC-1 Financing Statement naming Lender as secured party and Borrower as debtor, filed with the Delaware Secretary of State
on October 18, 2016 as U.C.C. Initial Filing No: 2016 6404998, as assigned to SUB 3 by that certain UCC-3 financing statement amendment,
filed with the Delaware Secretary of State on ______________ as ______________________________; as further assigned to Lender by
that certain UCC-3 financing statement amendment, filed with the Delaware Secretary of State on ______________ as ______________________________;

 

		o.	UCC-1 Financing Statement naming Lender as Secured Party and Borrower as Debtor, filed in the land records of Harrison County,
Mississippi on November 11, 2016 as File No.: CFS16000056, as assigned to SUB 3 by that certain UCC-3 Financing Statement amendment,
filed in the land records of Harrison County, Mississippi on _________________ as _____________________, as further assigned to
Lender by that certain UCC-3 Financing Statement amendment, filed in the land records of Harrison County, Mississippi on _________________
as _____________________;

 

		p.	Title Policy;

 

		q.	Title Commitment, including exception documents;

 

		r.	Closing Escrow Agreement;

 

		s.	Borrower’s Form W-9;

 

		t.	Borrower’s Certification;

 

		u.	Zoning Conformance Report, prepared by Howard Zoning Associates, LLC, dated February 23, 2016;

 

		v.	Survey prepared by Gary A. Durbin, PLS, dated January 21, 2016;

 

		w.	New York Enforceability and Delaware Due Formation, Authority and Execution Opinion, issued by O’ Halloran Ryan LLP,
dated February 23, 2016;

 

		x.	Mississippi Enforceability Opinion, issued by Watkins & Eager PLLC, dated February 23, 2016;

 

     

     

    

 

		y.	Rate Cap Opinion Letter, issued by Commonwealth Bank of Australia, dated February 23, 2016;

 

		z.	Borrower’s Organizational Documents; and

 

		aa.	Sole’s Member Organizational Documents.Exhibit
4.1

 

HER
IMPORTS 2017 EQUITY INCENTIVE PLAN

 

1.
Purpose; Eligibility.

 

1.1
General Purpose. The name of this plan
is the Her Imports 2017 Equity Incentive Plan (the “Plan”). The purposes of the Plan are to (a) enable Her
Imports (the “Company”), and any Affiliate to attract and retain the types of Employees, Consultants and Directors
who will contribute to the Company’s long range success; (b) provide incentives that align the interests of Employees, Consultants
and Directors with those of the shareholders of the Company; and (c) promote the success of the Company’s business.

 

1.2
Eligible Award Recipients. The persons
eligible to receive Awards are the Employees, Consultants and Directors of the Company and its Affiliates and such other individuals
designated by the Committee who are reasonably expected to become Employees, Consultants and Directors after the receipt of Awards.

 

1.3
Available Awards. Awards that may be granted
under the Plan include: (a) Incentive Stock Options, (b) Non-qualified Stock Options, (c) Stock Appreciation Rights, (d) Restricted
Awards, (e) Performance Share Awards, and (f) Performance Compensation Awards.

 

2.
Definitions.

 

“Affiliate”
means a corporation or other entity that, directly or through one or more intermediaries, controls, is controlled by or is under
common control with, the Company.

 

“Applicable
Laws” means the requirements related to or implicated by the administration of the Plan under applicable state corporate
law, United States federal and state securities laws, the Code, any stock exchange or quotation system on which the shares of
Common Stock are listed or quoted, and the applicable laws of any foreign country or jurisdiction where Awards are granted under
the Plan.

 

“Award”
means any right granted under the Plan, including an Incentive Stock Option, a Non-qualified Stock Option, a Stock Appreciation
Right, a Restricted Award, a Performance Share Award or a Performance Compensation Award.

 

“Award
Agreement” means a written agreement, contract, certificate or other instrument or document evidencing the terms and
conditions of an individual Award granted under the Plan which may, in the discretion of the Company, be transmitted electronically
to any Participant. Each Award Agreement shall be subject to the terms and conditions of the Plan.

 

“Beneficial
Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating
the beneficial ownership of any particular “person” (as that term is used in Section 13(d)(3) of the Exchange Act),
such “person” shall be deemed to have beneficial ownership of all securities that such “person” has the
right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable
only after the passage of time. The terms “Beneficially Owns” and “Beneficially Owned” have a corresponding
meaning.

 

“Board”
means the Board of Directors of the Company, as constituted at any time.

 

    	 

    	 

    

 

“Cause”
means with respect to any Employee or Consultant: (a) If the Employee or Consultant is a party to an employment or service agreement
with the Company or its Affiliates and such agreement provides for a definition of Cause, the definition contained therein; or
(b) If no such agreement exists, or if such agreement does not define Cause: (i) the commission of, or plea of guilty or no contest
to, a felony or a crime involving moral turpitude or the commission of any other act involving willful malfeasance or material
fiduciary breach with respect to the Company or an Affiliate; (ii) conduct that results in or is reasonably likely to result in
harm to the reputation or business of the Company or any of its Affiliates; (iii) gross negligence or willful misconduct with
respect to the Company or an Affiliate; or (iv) material violation of state or federal securities laws.

 

With
respect to any Director, a determination by a majority of the disinterested Board members that the Director has engaged in any
of the following: (a) malfeasance in office; (b) gross misconduct or neglect; (c) false or fraudulent misrepresentation inducing
the director’s appointment; (d) willful conversion of corporate funds; or (e) repeated failure to participate in Board meetings
on a regular basis despite having received proper notice of the meetings in advance.

 

The
Committee, in its absolute discretion, shall determine the effect of all matters and questions relating to whether a Participant
has been discharged for Cause.

 

“Change
in Control” means (a) the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger
or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the
Company and its subsidiaries, taken as a whole, to any Person that is not a subsidiary of the Company; (b) the Incumbent Directors
cease for any reason to constitute at least a majority of the Board; (c) the date which is 10 business days prior to the consummation
of a complete liquidation or dissolution of the Company; (d) the acquisition (after the Effective Date of this Plan) by any Person
of Beneficial Ownership of 50% or more (on a fully diluted basis) of either (i) the then outstanding shares of Common Stock of
the Company, taking into account as outstanding for this purpose such Common Stock issuable upon the exercise of options or warrants,
the conversion of convertible stock or debt, and the exercise of any similar right to acquire such Common Stock (the “Outstanding
Company Common Stock”) or (ii) the combined voting power of the then outstanding voting securities of the Company entitled
to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however,
that for purposes of this Plan, the following acquisitions shall not constitute a Change in Control: (A) any acquisition by the
Company or any Affiliate, (B) any acquisition by any employee benefit plan sponsored or maintained by the Company or any subsidiary,
(C) any acquisition which complies with clauses, (i), (ii) and (iii) of subsection (e) of this definition or (D) in respect of
an Award held by a particular Participant, any acquisition by the Participant or any group of persons including the Participant
(or any entity controlled by the Participant or any group of persons including the Participant); or (e) the consummation of a
reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company
that requires the approval of the Company’s shareholders, whether for such transaction or the issuance of securities in
the transaction (a “Business Combination”), unless immediately following such Business Combination: (i) more
than 50% of the total voting power of (A) the entity resulting from such Business Combination (the “Surviving Company”),
or (B) if applicable, the ultimate parent entity that directly or indirectly has beneficial ownership of sufficient voting securities
eligible to elect a majority of the members of the board of directors (or the analogous governing body) of the Surviving Company
(the “Parent Company”), is represented by the Outstanding Company Voting Securities that were outstanding immediately
prior to such Business Combination (or, if applicable, is represented by shares into which the Outstanding Company Voting Securities
were converted pursuant to such Business Combination), and such voting power among the holders thereof is in substantially the
same proportion as the voting power of the Outstanding Company Voting Securities among the holders thereof immediately prior to
the Business Combination; (ii) no Person (other than any employee benefit plan sponsored or maintained by the Surviving Company
or the Parent Company) is or becomes the Beneficial Owner, directly or indirectly, of 50% or more of the total voting power of
the outstanding voting securities eligible to elect members of the board of directors of the Parent Company (or the analogous
governing body) (or, if there is no Parent Company, the Surviving Company); and (iii) at least a majority of the members of the
board of directors (or the analogous governing body) of the Parent Company (or, if there is no Parent Company, the Surviving Company)
following the consummation of the Business Combination were Board members at the time of the Board’s approval of the execution
of the initial agreement providing for such Business Combination. For the avoidance of doubt, no acquisition(s) by a current Affiliate
who holds in excess of 50% Beneficial Ownership will be deemed a Change in Control.

 

    	2 

    	 

    

 

“Code”
means the Internal Revenue Code of 1986, as it may be amended from time to time. Any reference to a section of the Code shall
be deemed to include a reference to any regulations promulgated thereunder.

 

“Committee”
means a committee of one or more members of the Board appointed by the Board to administer the Plan in accordance with Section
3.3 and Section 3.4.

 

“Common
Stock” means the common stock, $0.001 par value per share, of the Company, or such other securities of the Company as
may be designated by the Committee from time to time in substitution thereof.

 

“Consultant”
means any individual who is engaged by the Company or any Affiliate to render consulting or advisory services.

 

“Continuous
Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee, Consultant
or Director, is not interrupted or terminated. The Participant’s Continuous Service shall not be deemed to have terminated
merely because of a change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee,
Consultant or Director or a change in the entity for which the Participant renders such service, provided that there is no interruption
or termination of the Participant’s Continuous Service; provided further that if any Award is subject to Section 409A of
the Code, this sentence shall only be given effect to the extent consistent with Section 409A of the Code. For example, a change
in status from an Employee of the Company to a Director of an Affiliate will not constitute an interruption of Continuous Service.
The Committee or its delegate, in its sole discretion, may determine whether Continuous Service shall be considered interrupted
in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal or family
leave of absence.

 

“Covered
Employee” has the same meaning as set forth in Section 162(m)(3) of the Code, as interpreted by IRS Notice 2007-49.

 

“Deferred
Stock Units (DSUs)” has the meaning set forth in Section 7.2 hereof.

 

“Director”
means a member of the Board.

 

“Disability”
means that the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical
or mental impairment; provided, however, for purposes of determining the term of an Incentive Stock Option pursuant to Section
6.10 hereof, the term Disability shall have the meaning ascribed to it under Section 22(e)(3) of the Code. The determination of
whether an individual has a Disability shall be determined under procedures established by the Committee. Except in situations
where the Committee is determining Disability for purposes of the term of an Incentive Stock Option pursuant to Section 6.10 hereof
within the meaning of Section 22(e)(3) of the Code, the Committee may rely on any determination that a Participant is disabled
for purposes of benefits under any long-term disability plan maintained by the Company or any Affiliate in which a Participant
participates.

 

    	3 

    	 

    

 

“Disqualifying
Disposition” has the meaning set forth in Section 14.12.

 

“Effective
Date” shall mean the date as of which this Plan is adopted by the Board.

 

“Employee”
means any person, including an Officer or Director, employed by the Company or an Affiliate; provided, that, for purposes of determining
eligibility to receive Incentive Stock Options, an Employee shall mean an employee of the Company or a parent or subsidiary corporation
within the meaning of Section 424 of the Code. Mere service as a Director or payment of a director’s fee by the Company
or an Affiliate shall not be sufficient to constitute “employment” by the Company or an Affiliate.

 

“Exchange
Act” means the Securities Exchange Act of 1934.

 

“Fair
Market Value” means, as of the last trading day before the grant of the Award, the value of the Common Stock as determined
below. If the Common Stock is listed on any established stock exchange or a national market system, including without limitation,
the New York Stock Exchange, the NASDAQ Stock Market or the OTC Markets, the Fair Market Value shall be the closing price of a
share of Common Stock as quoted on such exchange or system. In the absence of an established market for the Common Stock, the
Fair Market Value shall be determined in good faith by the Committee and such determination shall be conclusive and binding on
all persons.

 

“Free
Standing Rights” has the meaning set forth in Section 7.1(a).

 

“Grant
Date” means the date on which the Committee adopts a resolution, or takes other appropriate action, expressly granting
an Award to a Participant that specifies the key terms and conditions of the Award or, if a later date is set forth in such resolution,
then such date as is set forth in such resolution.

 

“Incentive
Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of
the Code.

 

“Incumbent
Directors” means individuals who, on the Effective Date, constitute the Board, provided that any individual becoming
a Director subsequent to the Effective Date whose election or nomination for election to the Board was approved by a vote of at
least two-thirds of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement
of the Company in which such person is named as a nominee for Director without objection to such nomination) shall be an Incumbent
Director. No individual initially elected or nominated as a director of the Company as a result of an actual or threatened election
contest with respect to Directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of
any person other than the Board shall be an Incumbent Director.

 

“Negative
Discretion” means the discretion authorized by the Plan to be applied by the Committee to eliminate or reduce the size
of a Performance Compensation Award in accordance with Section 7.4(d)(iv) of the Plan; provided, that, the exercise of such discretion
would not cause the Performance Compensation Award to fail to qualify as “performance-based compensation” under Section
162(m) of the Code.

 

“Non-Employee
Director” means a Director who is a “non-employee director” within the meaning of Rule 16b-3.

 

    	4 

    	 

    

 

“Non-qualified
Stock Option” means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock
Option.

 

“Officer”
means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

 

“Option”
means an Incentive Stock Option or a Non-qualified Stock Option granted pursuant to the Plan.

 

“Optionholder”
means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding
Option.

 

“Option
Exercise Price” means the price at which a share of Common Stock may be purchased upon the exercise of an Option.

 

“Outside
Director” means a Director who is an “outside director” within the meaning of Section 162(m) of the Code
and Treasury Regulations Section 1.162-27(e)(3) or any successor to such statute and regulation.

 

“Participant”
means an eligible person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding
Award.

 

“Performance
Compensation Award” means any Award designated by the Committee as a Performance Compensation Award pursuant to Section
7.4 of the Plan.

 

“Performance
Criteria” means the criterion or criteria that the Committee shall select for purposes of establishing the Performance
Goal(s) for a Performance Period with respect to any Performance Compensation Award under the Plan. The Performance Criteria that
will be used to establish the Performance Goal(s) shall be based on the attainment of specific levels of performance of the Company
(or Affiliate, division, business unit or operational unit of the Company) and shall be limited to the following: (a) net earnings
or net income (before or after taxes); (b) basic or diluted earnings per share (before or after taxes); (c) net revenue or net
revenue growth; (d) gross revenue; (e) gross profit or gross profit growth; (f) net operating profit (before or after taxes);
(g) return on assets, capital, invested capital, equity, or sales; (h) cash flow (including, but not limited to, operating cash
flow, free cash flow, and cash flow return on capital); (i) earnings before or after taxes, interest, depreciation and/or amortization;
(j) gross or operating margins; (k) improvements in capital structure; (l) budget and expense management; (m) productivity ratios;
(n) economic value added or other value added measurements; (o) share price (including, but not limited to, growth measures and
total shareholder return); (p) expense targets; (q) margins; (r) operating efficiency; (s) working capital targets; (t) enterprise
value; (u) safety record; and (v) completion of acquisitions or business expansion.

 

Any
one or more of the Performance Criteria may be used on an absolute or relative basis to measure the performance of the Company
and/or an Affiliate as a whole or any division, business unit or operational unit of the Company and/or an Affiliate or any combination
thereof, as the Committee may deem appropriate, or as compared to the performance of a group of comparable companies, or published
or special index that the Committee, in its sole discretion, deems appropriate, or the Committee may select Performance Criterion
(o) above as compared to various stock market indices. The Committee also has the authority to provide for accelerated vesting
of any Award based on the achievement of Performance Goals pursuant to the Performance Criteria specified in this paragraph. To
the extent required under Section 162(m) of the Code, the Committee shall, within the first 90 days of a Performance Period (or,
if longer or shorter, within the maximum period allowed under Section 162(m) of the Code), define in an objective fashion the
manner of calculating the Performance Criteria it selects to use for such Performance Period. In the event that applicable tax
and/or securities laws change to permit the Committee discretion to alter the governing Performance Criteria without obtaining
shareholder approval of such changes, the Committee shall have sole discretion to make such changes without obtaining shareholder
approval.

 

    	5 

    	 

    

 

“Performance
Formula” means, for a Performance Period, the one or more objective formulas applied against the relevant Performance
Goal to determine, with regard to the Performance Compensation Award of a particular Participant, whether all, some portion but
less than all, or none of the Performance Compensation Award has been earned for the Performance Period.

 

“Performance
Goals” means, for a Performance Period, the one or more goals established by the Committee for the Performance Period
based upon the Performance Criteria. The Committee is authorized at any time during the first 90 days of a Performance Period
(or, if longer or shorter, within the maximum period allowed under Section 162(m) of the Code), or at any time thereafter (but
only to the extent the exercise of such authority after such period would not cause the Performance Compensation Awards granted
to any Participant for the Performance Period to fail to qualify as “performance-based compensation” under Section
162(m) of the Code), in its sole and absolute discretion, to adjust or modify the calculation of a Performance Goal for such Performance
Period to the extent permitted under Section 162(m) of the Code in order to prevent the dilution or enlargement of the rights
of Participants based on the following events: (a) asset write-downs; (b) litigation or claim judgments or settlements; (c) the
effect of changes in tax laws, accounting principles, or other laws or regulatory rules affecting reported results; (d) any reorganization
and restructuring programs; (e) extraordinary, unusual or infrequently occurring items as described 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 year; (f) acquisitions or divestitures; (g) any other specific unusual or nonrecurring events, or objectively determinable
category thereof; (h) foreign exchange gains and losses; and (i) a change in the Company’s fiscal year.

 

“Performance
Period” means the one or more periods of time not less than one fiscal quarter in duration, as the Committee may select,
over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Participant’s
right to and the payment of a Performance Compensation Award.

 

“Performance
Share Award” means any Award granted pursuant to Section 7.3 hereof.

 

“Performance
Share” means the grant of a right to receive a number of actual shares of Common Stock or share units based upon the
performance of the Company during a Performance Period, as determined by the Committee.

 

“Permitted
Transferee” means: (a) a member of the Optionholder’s immediate family (child, stepchild, grandchild, parent,
stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law, including adoptive relationships), any person sharing the Optionholder’s household (other
than a tenant or employee), a trust in which these persons have more than 50% of the beneficial interest, a foundation in which
these persons (or the Optionholder) control the management of assets, and any other entity in which these persons (or the Optionholder)
own more than 50% of the voting interests; (b) third parties designated by the Committee in connection with a program established
and approved by the Committee pursuant to which Participants may receive a cash payment or other consideration in consideration
for the transfer of a Non-qualified Stock Option; and (c) such other transferees as may be permitted by the Committee in its sole
discretion.

 

    	6 

    	 

    

 

“Plan”
means this 2017 Equity Incentive Plan, as amended and/or amended and restated from time to time.

 

“Related
Rights” has the meaning set forth in Section 7.1(a).

 

“Restricted
Award” means any Award granted pursuant to Section 7.2(a).

 

“Restricted
Period” has the meaning set forth in Section 7.2(a).

 

“Rule
16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time to
time.

 

“Securities
Act” means the Securities Act of 1933.

 

“Stock
Appreciation Right” means the right pursuant to an Award granted under Section 7.1 to receive, upon exercise, an amount
payable in cash or shares equal to the number of shares subject to the Stock Appreciation Right that is being exercised multiplied
by the excess of (a) the Fair Market Value of a share of Common Stock, over (b) the exercise price specified in the Stock Appreciation
Right Award Agreement.

 

“Stock
for Stock Exchange” has the meaning set forth in Section 6.4.

 

“Ten
Percent Shareholder” means a person who owns (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing
more than 10% of the total combined voting power of all classes of stock of the Company or of any of its Affiliates.

 

3.
Administration.

 

3.1
Authority of Committee. The Plan shall
be administered by the Committee or, in the Board’s sole discretion, by the Board. Subject to the terms of the Plan, the
Committee’s charter and Applicable Laws, and in addition to other express powers and authorization conferred by the Plan,
the Committee shall have the authority:

 

(a)
to construe and interpret the Plan and apply its provisions;

 

(b)
to promulgate, amend, and rescind rules and regulations relating to the administration of the Plan;

 

(c)
to authorize any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan;

 

(d)
to delegate its authority to one or more Officers of the Company with respect to Awards that do not involve Covered Employees
or “insiders” within the meaning of Section 16 of the Exchange Act;

 

(e)
to determine when Awards are to be granted under the Plan and the applicable Grant Date;

 

(f)
from time to time to select, subject to the limitations set forth in this Plan, those Participants to whom Awards shall be granted;

 

    	7 

    	 

    

 

(g)
to determine the number of shares of Common Stock to be made subject to each Award;

 

(h)
to determine whether each Option is to be an Incentive Stock Option or a Non-qualified Stock Option;

 

(i)
to prescribe the terms and conditions of each Award, including, without limitation, the exercise price and medium of payment and
vesting provisions, and to specify the provisions of the Award Agreement relating to such grant;

 

(j)
to determine the target number of Performance Shares to be granted pursuant to a Performance Share Award, the performance measures
that will be used to establish the performance goals, the performance period(s) and the number of Performance Shares earned by
a Participant;

 

(k)
to designate an Award (including a cash bonus) as a Performance Compensation Award and to select the Performance Criteria that
will be used to establish the Performance Goals;

 

(l)
to amend any outstanding Awards, including for the purpose of modifying the time or manner of vesting, or the term of any outstanding
Award; provided, however, that if any such amendment impairs a Participant’s rights or increases a Participant’s obligations
under his or her Award or creates or increases a Participant’s federal income tax liability with respect to an Award, such
amendment shall also be subject to the Participant’s consent;

 

(m)
to determine the duration and purpose of leaves of absences which may be granted to a Participant without constituting termination
of their employment for purposes of the Plan, which periods shall be no shorter than the periods generally applicable to Employees
under the Company’s employment policies;

 

(n)
to make decisions with respect to outstanding Awards that may become necessary upon a change in corporate control or an event
that triggers anti-dilution adjustments;

 

(o)
to interpret, administer, reconcile any inconsistency in, correct any defect in and/or supply any omission in the Plan and any
instrument or agreement relating to, or Award granted under, the Plan; and

 

(p)
to exercise discretion to make any and all other determinations which it determines to be necessary or advisable for the administration
of the Plan.

 

The
Committee also may modify the purchase price or the exercise price of any outstanding Award, provided that if the modification
effects a repricing, shareholder approval shall be required before the repricing is effective.

 

3.2
Committee Decisions Final. All decisions
made by the Committee pursuant to the provisions of the Plan shall be final and binding on the Company and the Participants, unless
such decisions are determined by a court having jurisdiction to be arbitrary and capricious.

 

    	8 

    	 

    

 

3.3
Delegation. The Committee or, if no Committee
has been appointed, the Board may delegate administration of the Plan to a committee or committees of one or more members of the
Board, and the term “Committee” shall apply to any person or persons to whom such authority has been delegated.
The Committee shall have the power to delegate to a subcommittee any of the administrative powers the Committee is authorized
to exercise (and references in this Plan to the Board or the Committee shall thereafter be to the committee or subcommittee),
subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by
the Board. The Board may abolish the Committee at any time and revest in the Board the administration of the Plan. The members
of the Committee shall be appointed by and serve at the pleasure of the Board. From time to time, the Board may increase or decrease
the size of the Committee, add additional members to, remove members (with or without cause) from, appoint new members in substitution
therefor, and fill vacancies, however caused, in the Committee. The Committee shall act pursuant to a vote of the majority of
its members or, in the case of a Committee comprised of only two members, the unanimous consent of its members, whether present
or not, or by the written consent of the majority of its members and minutes shall be kept of all of its meetings and copies thereof
shall be provided to the Board. Subject to the limitations prescribed by the Plan and the Board, the Committee may establish and
follow such rules and regulations for the conduct of its business as it may determine to be advisable.

 

3.4
Committee Composition. Except as otherwise
determined by the Board, the Committee shall consist solely of two or more Non-Employee Directors who are also Outside Directors.
The Board shall have discretion to determine whether or not it intends to comply with the exemption requirements of Rule 16b-3
and/or Section 162(m) of the Code. However, if the Board intends to satisfy such exemption requirements, with respect to Awards
to any Covered Employee and with respect to any insider subject to Section 16 of the Exchange Act, the Committee shall be a compensation
committee of the Board that at all times consists solely of two or more Non-Employee Directors who are also Outside Directors.
Within the scope of such authority, the Board or the Committee may (a) delegate to a committee of one or more members of the Board
who are not Outside Directors the authority to grant Awards to eligible persons who are either (i) not then Covered Employees
and are not expected to be Covered Employees at the time of recognition of income resulting from such Award or (ii) not persons
with respect to whom the Company wishes to comply with Section 162(m) of the Code or (b) delegate to a committee of one or more
members of the Board who are not Non-Employee Directors the authority to grant Awards to eligible persons who are not then subject
to Section 16 of the Exchange Act. Nothing herein shall create an inference that an Award is not validly granted under the Plan
in the event Awards are granted under the Plan by a compensation committee of the Board that does not at all times consist solely
of two or more Non-Employee Directors who are also Outside Directors.

 

3.5
Indemnification. In addition to such other
rights of indemnification as they may have as Directors or members of the Committee, and to the extent allowed by Applicable Laws,
the Committee shall be indemnified by the Company against the reasonable expenses, including attorney’s fees, actually incurred
in connection with any action, suit or proceeding or in connection with any appeal therein, to which the Committee may be party
by reason of any action taken or failure to act under or in connection with the Plan or any Award granted under the Plan, and
against all amounts paid by the Committee in settlement thereof (provided, however, that the settlement has been approved by the
Company, which approval shall not be unreasonably withheld) or paid by the Committee in satisfaction of a judgment in any such
action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding
that such Committee did not act in good faith and in a manner which such person reasonably believed to be in the best interests
of the Company, or in the case of a criminal proceeding, had no reason to believe that the conduct complained of was unlawful;
provided, however, that within 60 days after institution of any such action, suit or proceeding, such Committee shall, in writing,
offer the Company the opportunity at its own expense to handle and defend such action, suit or proceeding.

 

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4.
Shares Subject to the Plan.

 

4.1
Subject to adjustment in accordance with Section 11, a total of 2,400,000 shares of Common Stock shall be available for the grant
of Awards under the Plan; provided that, no more than 500,000 shares of Common Stock may be granted as Incentive Stock Options.
Any shares of Common Stock granted in connection with Options and Stock Appreciation Rights shall be counted against this limit
as one share for every one Option or Stock Appreciation Right awarded. Any shares of Common Stock granted in connection with Awards
other than Options and Stock Appreciation Rights shall be counted against this limit as two shares of Common Stock for every one
share of Common Stock granted in connection with such Award. During the terms of the Awards, the Company shall keep available
at all times the number of shares of Common Stock required to satisfy such Awards. Shares of Common Stock available for distribution
under the Plan may consist, in whole or in part, of authorized and unissued shares, treasury shares or shares reacquired by the
Company in any manner.

 

4.2
Any shares of Common Stock subject to an Award that is canceled, forfeited or expires prior to exercise or realization, either
in full or in part, shall again become available for issuance under the Plan. Any shares of Common Stock that again become available
for future grants pursuant to this Section 4.2 shall be added back as one share if such shares were subject to Options or Stock
Appreciation Rights and as two shares if such shares were subject to other Awards. Notwithstanding anything to the contrary contained
herein: shares subject to an Award under the Plan shall not again be made available for issuance or delivery under the Plan if
such shares are (a) shares tendered in payment of an Option, (b) shares delivered or withheld by the Company to satisfy any tax
withholding obligation, or (c) shares covered by a stock-settled Stock Appreciation Right or other Awards that were not issued
upon the settlement of the Award.

 

5.
Eligibility.

 

5.1
Eligibility for Specific Awards. Incentive
Stock Options may be granted only to Employees. Awards other than Incentive Stock Options may be granted to Employees, Consultants
and Directors and those individuals whom the Committee determines are reasonably expected to become Employees, Consultants and
Directors following the Grant Date.

 

5.2
Ten Percent Shareholders. A Ten Percent
Shareholder shall not be granted an Incentive Stock Option unless the Option Exercise Price is at least 110% of the Fair Market
Value of the Common Stock at the Grant Date and the Option is not exercisable after the expiration of five years from the Grant
Date.

 

6.
Option Provisions.
Each Option granted under the Plan shall be evidenced by an Award Agreement. Each Option so granted shall be subject to the conditions
set forth in this Section 6, and to such other conditions not inconsistent with the Plan as may be reflected in the applicable
Award Agreement. All Options shall be separately designated Incentive Stock Options or Non-Qualified Stock Options at the time
of grant, and, if certificates are issued, a separate certificate or certificates will be issued for shares of Common Stock purchased
on exercise of each type of Option. Notwithstanding the foregoing, the Company shall have no liability to any Participant or any
other person if an Option designated as an Incentive Stock Option fails to qualify as such at any time or if an Option is determined
to constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code and the terms of
such Option do not satisfy the requirements of Section 409A of the Code. The provisions of separate Options need not be identical,
but each Option shall include (through incorporation of provisions hereof by reference in the Option or otherwise) the substance
of each of the following provisions:

 

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6.1
Term. Subject to the provisions of Section
5.2 regarding Ten Percent Shareholders, no Incentive Stock Option shall be exercisable after the expiration of 10 years from the
Grant Date. The term of a Non-qualified Stock Option granted under the Plan shall be determined by the Committee; provided, however,
no Non-qualified Stock Option shall be exercisable after the expiration of 10 years from the Grant Date.

 

6.2
Exercise Price of an Incentive Stock Option.
Subject to the provisions of Section 5.2 regarding Ten Percent Shareholders, the Option Exercise Price of each Incentive Stock
Option shall be not less than 100% of the prior days closing bid price of the Common Stock subject to the Option on the Grant
Date. Notwithstanding the foregoing, an Incentive Stock Option may be granted with an Option Exercise Price lower than that set
forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner
satisfying the provisions of Section 424(a) of the Code.

 

6.3
Exercise Price of a Non-qualified Stock Option.
The Option Exercise Price of each Non-qualified Stock Option shall be not less than 100% of the prior days closing bid price of
the Common Stock subject to the Option on the Grant Date. Notwithstanding the foregoing, a Non-qualified Stock Option may be granted
with an Option Exercise Price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption
or substitution for another option in a manner satisfying the provisions of Section 409A of the Code.

 

6.4
Consideration. The Option Exercise Price
of Common Stock acquired pursuant to an Option shall be paid, to the extent permitted by applicable statutes and regulations,
either (a) in cash or by certified or bank check at the time the Option is exercised or (b) in the discretion of the Committee,
upon such terms as the Committee shall approve, the Option Exercise Price may be paid: (i) by delivery to the Company of other
Common Stock, duly endorsed for transfer to the Company, with a Fair Market Value on the date of delivery equal to the Option
Exercise Price (or portion thereof) due for the number of shares being acquired, or by means of attestation whereby the Participant
identifies for delivery specific shares of Common Stock that have an aggregate Fair Market Value on the date of attestation equal
to the Option Exercise Price (or portion thereof) and receives a number of shares of Common Stock equal to the difference between
the number of shares thereby purchased and the number of identified attestation shares of Common Stock (a “Stock for
Stock Exchange”); (ii) a “cashless” exercise program established with a broker; (iii) by reduction in the
number of shares of Common Stock otherwise deliverable upon exercise of such Option with a Fair Market Value equal to the aggregate
Option Exercise Price at the time of exercise; (iv) any combination of the foregoing methods; or (v) in any other form of legal
consideration that may be acceptable to the Committee. Unless otherwise specifically provided in the Option, the exercise price
of Common Stock acquired pursuant to an Option that is paid by delivery (or attestation) to the Company of other Common Stock
acquired, directly or indirectly from the Company, shall be paid only by shares of the Common Stock of the Company that have been
held for more than six months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting
purposes). Notwithstanding the foregoing, during any period for which the Common Stock is publicly traded (i.e., the Common Stock
is listed on any established stock exchange or a national market system) an exercise by a Director or Officer that involves or
may involve a direct or indirect extension of credit or arrangement of an extension of credit by the Company, directly or indirectly,
in violation of Section 402(a) of the Sarbanes-Oxley Act of 2002 shall be prohibited with respect to any Award under this Plan.

 

6.5
Transferability of an Incentive Stock Option.
An Incentive Stock Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable
during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing, the Optionholder may, by delivering
written notice to the Company, in a form satisfactory to the Company, designate a third party who, in the event of the death of
the Optionholder, shall thereafter be entitled to exercise the Option.

 

    	11 

    	 

    

 

6.6
Transferability of a Non-qualified Stock Option.
A Non-qualified Stock Option may, in the sole discretion of the Committee, be transferable to a Permitted Transferee, upon written
approval by the Committee to the extent provided in the Award Agreement. If the Non-qualified Stock Option does not provide for
transferability, then the Non-qualified Stock Option shall not be transferable except by will or by the laws of descent and distribution
and shall be exercisable during the lifetime of the Optionholder only by the Optionholder. Notwithstanding the foregoing, the
Optionholder may, by delivering written notice to the Company, in a form satisfactory to the Company, designate a third party
who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option.

 

6.7
Vesting of Options. Each Option may, but
need not, vest and therefore become exercisable in periodic installments that may, but need not, be equal. The Option may be subject
to such other terms and conditions on the time or times when it may be exercised (which may be based on performance or other criteria)
as the Committee may deem appropriate. The vesting provisions of individual Options may vary. No Option may be exercised for a
fraction of a share of Common Stock. The Committee may, but shall not be required to, provide for an acceleration of vesting and
exercisability in the terms of any Award Agreement upon the occurrence of a specified event.

 

6.8
Termination of Continuous Service. Unless
otherwise provided in an Award Agreement or in an employment agreement the terms of which have been approved by the Committee,
in the event an Optionholder’s Continuous Service terminates (other than upon the Optionholder’s death or Disability),
the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of
the date of termination) but only within such period of time ending on the earlier of (a) the date three months (except for Non-qualified
Stock Options which shall be 12 months) following the termination of the Optionholder’s Continuous Service or (b) the expiration
of the term of the Option as set forth in the Award Agreement; provided that, if the termination of Continuous Service is by the
Company for Cause, all outstanding Options (whether or not vested) shall immediately terminate and cease to be exercisable. If,
after termination, the Optionholder does not exercise his or her Option within the time specified in the Award Agreement, the
Option shall terminate.

 

6.9
Extension of Termination Date. An Optionholder’s
Award Agreement may also provide that if the exercise of the Option following the termination of the Optionholder’s Continuous
Service for any reason would be prohibited at any time because the issuance of shares of Common Stock would violate the registration
requirements under the Securities Act or any other state or federal securities law or the rules of any securities exchange or
interdealer quotation system, then the Option shall terminate on the earlier of (a) the expiration of the term of the Option in
accordance with Section 6.1 or (b) the expiration of a period after termination of the Participant’s Continuous Service
that is three months after the end of the period during which the exercise of the Option would be in violation of such registration
or other securities law requirements.

 

6.10
Disability of Optionholder. Unless otherwise
provided in an Award Agreement, in the event that an Optionholder’s Continuous Service terminates as a result of the Optionholder’s
Disability, the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such
Option as of the date of termination), but only within such period of time ending on the expiration of the term of the Option
as set forth in the Award Agreement. If, after termination, the Optionholder does not exercise his or her Option within the time
specified herein or in the Award Agreement, the Option shall terminate.

 

    	12 

    	 

    

 

6.11
Death of Optionholder. Unless otherwise
provided in an Award Agreement, in the event an Optionholder’s Continuous Service terminates as a result of the Optionholder’s
death, then the Option may be exercised (to the extent the Optionholder was entitled to exercise such Option as of the date of
death) by the Optionholder’s estate, by a person who acquired the right to exercise the Option by bequest or inheritance
or by a person designated to exercise the Option upon the Optionholder’s death, but only within the period ending on the
expiration of the term of such Option as set forth in the Award Agreement. If, after the Optionholder’s death, the Option
is not exercised within the time specified herein or in the Award Agreement, the Option shall terminate.

 

6.12
Incentive Stock Option $100,000 Limitation.
To the extent that the aggregate Fair Market Value (determined at the time of grant) of Common Stock with respect to which Incentive
Stock Options are exercisable for the first time by any Optionholder during any calendar year (under all plans of the Company
and its Affiliates) exceeds $100,000, the Options or portions thereof which exceed such limit (according to the order in which
they were granted) shall be treated as Non-qualified Stock Options.

 

7.
Provisions of Awards Other
Than Options.

 

7.1
Stock Appreciation Rights.

 

(a)
General. Each Stock Appreciation Right granted under the Plan shall be evidenced by an Award Agreement. Each Stock Appreciation
Right so granted shall be subject to the conditions set forth in this Section 7.1, and to such other conditions not inconsistent
with the Plan as may be reflected in the applicable Award Agreement. Stock Appreciation Rights may be granted alone (“Free
Standing Rights”) or in tandem with an Option (“Related Rights”) granted under the Plan.

 

(b)
Grant Requirements. Any Related Right that relates to a Non-qualified Stock Option may be granted at the same time the
Option is granted or at any time thereafter but before the exercise or expiration of the Option. Any Related Right that relates
to an Incentive Stock Option must be granted at the same time the Incentive Stock Option is granted.

 

(c)
Term of Stock Appreciation Rights. The term of a Stock Appreciation Right granted under the Plan shall be determined by
the Committee; provided, however, no Stock Appreciation Right shall be exercisable later than the tenth anniversary of the Grant
Date.

 

(d)
Vesting of Stock Appreciation Rights. Each Stock Appreciation Right may, but need not, vest and therefore become exercisable
in periodic installments that may, but need not, be equal. The Stock Appreciation Right may be subject to such other terms and
conditions on the time or times when it may be exercised as the Committee may deem appropriate. The vesting provisions of individual
Stock Appreciation Rights may vary. No Stock Appreciation Right may be exercised for a fraction of a share of Common Stock. The
Committee may, but shall not be required to, provide for an acceleration of vesting and exercisability in the terms of any Stock
Appreciation Right upon the occurrence of a specified event.

 

(e)
Exercise and Payment. Upon exercise of a Stock Appreciation Right, the holder shall be entitled to receive from the Company
an amount equal to the number of shares of Common Stock subject to the Stock Appreciation Right that is being exercised multiplied
by the excess of (i) the Fair Market Value of a share of Common Stock, over (ii) the exercise price specified in the Stock Appreciation
Right or related Option. Payment with respect to the exercise of a Stock Appreciation Right shall be made on the date of exercise.
Payment shall be made in the form of shares of Common Stock (with or without restrictions as to substantial risk of forfeiture
and transferability, as determined by the Committee in its sole discretion), cash or a combination thereof, as determined by the
Committee.

 

    	13 

    	 

    

 

(f)
Exercise Price. The exercise price of a Free Standing Stock Appreciation Right shall be determined by the Committee, but
shall not be less than 100% of the Fair Market Value of one share of Common Stock on the Grant Date of such Stock Appreciation
Right. A Related Right granted simultaneously with or subsequent to the grant of an Option and in conjunction therewith or in
the alternative thereto shall have the same exercise price as the related Option, shall be transferable only upon the same terms
and conditions as the related Option, and shall be exercisable only to the same extent as the related Option; provided, however,
that a Stock Appreciation Right, by its terms, shall be exercisable only when the Fair Market Value per share of Common Stock
subject to the Stock Appreciation Right and related Option exceeds the exercise price per share thereof and no Stock Appreciation
Rights may be granted in tandem with an Option unless the Committee determines that the requirements of Section 7.1(b) are satisfied.

 

(g)
Reduction in the Underlying Option Shares. Upon any exercise of a Related Right, the number of shares of Common Stock for
which any related Option shall be exercisable shall be reduced by the number of shares for which the Stock Appreciation Right
has been exercised. The number of shares of Common Stock for which a Related Right shall be exercisable shall be reduced upon
any exercise of any related Option by the number of shares of Common Stock for which such Option has been exercised.

 

7.2
Restricted Awards.

 

(a)
General. A Restricted Award is an Award of actual shares of Common Stock (“Restricted Stock”) or hypothetical
Common Stock units (“Restricted Stock Units”) having a value equal to the Fair Market Value of an identical
number of shares of Common Stock, which may, but need not, provide that such Restricted Award may not be sold, assigned, transferred
or otherwise disposed of, pledged or hypothecated as collateral for a loan or as security for the performance of any obligation
or for any other purpose for such period (the “Restricted Period”) as the Committee shall determine. Each Restricted
Award granted under the Plan shall be evidenced by an Award Agreement. Each Restricted Award so granted shall be subject to the
conditions set forth in this Section 7.2, and to such other conditions not inconsistent with the Plan as may be reflected in the
applicable Award Agreement.

 

(b)
Restricted Stock and Restricted Stock Units. Each Participant granted Restricted Stock shall execute and deliver to the
Company an Award Agreement with respect to the Restricted Stock setting forth the restrictions and other terms and conditions
applicable to such Restricted Stock. If the Committee determines that the Restricted Stock shall be held by the Company or in
escrow rather than delivered to the Participant pending the release of the applicable restrictions, the Committee may require
the Participant to additionally execute and deliver to the Company (A) an escrow agreement satisfactory to the Committee, if applicable
and (B) the appropriate blank stock power with respect to the Restricted Stock covered by such agreement. If a Participant fails
to execute an agreement evidencing an Award of Restricted Stock and, if applicable, an escrow agreement and stock power, the Award
shall be null and void. Subject to the restrictions set forth in the Award, the Participant generally shall have the rights and
privileges of a shareholder as to such Restricted Stock, including the right to vote such Restricted Stock and the right to receive
dividends; provided that, any cash dividends and stock dividends with respect to the Restricted Stock shall be withheld by the
Company for the Participant’s account, and interest may be credited on the amount of the cash dividends withheld at a rate
and subject to such terms as determined by the Committee. The cash dividends or stock dividends so withheld by the Committee and
attributable to any particular share of Restricted Stock (and earnings thereon, if applicable) shall be distributed to the Participant
in cash or, at the discretion of the Committee, in shares of Common Stock having a Fair Market Value equal to the amount of such
dividends, if applicable, upon the release of restrictions on such share and, if such share is forfeited, the Participant shall
have no right to such dividends.

 

    	14 

    	 

    

 

(i)
The terms and conditions of a grant of Restricted Stock Units shall be reflected in an Award Agreement. No shares of Common Stock
shall be issued at the time a Restricted Stock Unit is granted, and the Company will not be required to set aside a fund for the
payment of any such Award. A Participant shall have no voting rights with respect to any Restricted Stock Units granted hereunder.
The Committee may also grant Restricted Stock Units with a deferral feature, whereby settlement is deferred beyond the vesting
date until the occurrence of a future payment date or event set forth in an Award Agreement (“Deferred Stock Units”).
At the discretion of the Committee, each Restricted Stock Unit or Deferred Stock Unit (representing one share of Common Stock)
may be credited with cash and stock dividends paid by the Company in respect of one share of Common Stock (“Dividend
Equivalents”). Dividend Equivalents shall be paid currently (and in no case later than the end of the calendar year
in which the dividend is paid to the holders of the Common Stock or, if later, the 15th day of the third month following the date
the dividend is paid to holders of the Common Stock). Dividend Equivalents shall be withheld by the Company and credited to the
Participant’s account, and interest may be credited on the amount of cash Dividend Equivalents credited to the Participant’s
account at a rate and subject to such terms as determined by the Committee. Dividend Equivalents credited to a Participant’s
account and attributable to any particular Restricted Stock Unit or Deferred Stock Unit (and earnings thereon, if applicable)
shall be distributed in cash or, at the discretion of the Committee, in shares of Common Stock having a Fair Market Value equal
to the amount of such Dividend Equivalents and earnings, if applicable, to the Participant upon settlement of such Restricted
Stock Unit or Deferred Stock Unit and, if such Restricted Stock Unit or Deferred Stock Unit is forfeited, the Participant shall
have no right to such Dividend Equivalents. Dividend Equivalents will be deemed re-invested in additional Restricted Stock Units
or Deferred Stock Units based on the Fair Market Value of a share of Common Stock on the applicable dividend payment date and
rounded down to the nearest whole share.

 

(c)
Restrictions.

 

(i)
Restricted Stock awarded to a Participant shall be subject to the following restrictions until the expiration of the Restricted
Period, and to such other terms and conditions as may be set forth in the applicable Award Agreement: (A) if an escrow arrangement
is used, the Participant shall not be entitled to delivery of the stock certificate; (B) the shares shall be subject to the restrictions
on transferability set forth in the Award Agreement; (C) the shares shall be subject to forfeiture to the extent provided in the
applicable Award Agreement; and (D) to the extent such shares are forfeited, the stock certificates shall be returned to the Company,
and all rights of the Participant to such shares and as a shareholder with respect to such shares shall terminate without further
obligation on the part of the Company.

 

(ii)
Restricted Stock Units and Deferred Stock Units awarded to any Participant shall be subject to (A) forfeiture until the expiration
of the Restricted Period, and satisfaction of any applicable Performance Goals during such period, to the extent provided in the
applicable Award Agreement, and to the extent such Restricted Stock Units or Deferred Stock Units are forfeited, all rights of
the Participant to such Restricted Stock Units or Deferred Stock Units shall terminate without further obligation on the part
of the Company and (B) such other terms and conditions as may be set forth in the applicable Award Agreement.

 

(iii)
The Committee shall have the authority to remove any or all of the restrictions on the Restricted Stock, Restricted Stock Units
and Deferred Stock Units whenever it may determine that, by reason of changes in Applicable Laws or other changes in circumstances
arising after the date the Restricted Stock or Restricted Stock Units or Deferred Stock Units are granted, such action is appropriate.

 

    	15 

    	 

    

 

(d)
Restricted Period. With respect to Restricted Awards, the Restricted Period shall commence on the Grant Date and end at
the time or times set forth on a schedule established by the Committee in the applicable Award Agreement.

 

No
Restricted Award may be granted or settled for a fraction of a share of Common Stock. The Committee may, but shall not be required
to, provide for an acceleration of vesting in the terms of any Award Agreement upon the occurrence of a specified event.

 

(e)
Delivery of Restricted Stock and Settlement of Restricted Stock Units. Upon the expiration of the Restricted Period with
respect to any shares of Restricted Stock, the restrictions set forth in Section 7.2(c) and the applicable Award Agreement shall
be of no further force or effect with respect to such shares, except as set forth in the applicable Award Agreement. If an escrow
arrangement is used, upon such expiration, the Company shall deliver to the Participant, or his or her beneficiary, without charge,
the stock certificate evidencing the shares of Restricted Stock which have not then been forfeited and with respect to which the
Restricted Period has expired (to the nearest full share) and any cash dividends or stock dividends credited to the Participant’s
account with respect to such Restricted Stock and the interest thereon, if any. Upon the expiration of the Restricted Period with
respect to any outstanding Restricted Stock Units, or at the expiration of the deferral period with respect to any outstanding
Deferred Stock Units, the Company shall deliver to the Participant, or his or her beneficiary, without charge, one share of Common
Stock for each such outstanding vested Restricted Stock Unit or Deferred Stock Unit (“Vested Unit”) and cash
equal to any Dividend Equivalents credited with respect to each such Vested Unit in accordance with Section 7.2(b)(i) hereof and
the interest thereon or, at the discretion of the Committee, in shares of Common Stock having a Fair Market Value equal to such
Dividend Equivalents and the interest thereon, if any; provided, however, that, if explicitly provided in the applicable Award
Agreement, the Committee may, in its sole discretion, elect to pay cash or part cash and part Common Stock in lieu of delivering
only shares of Common Stock for Vested Units. If a cash payment is made in lieu of delivering shares of Common Stock, the amount
of such payment shall be equal to the Fair Market Value of the Common Stock as of the date on which the Restricted Period lapsed
in the case of Restricted Stock Units, or the delivery date in the case of Deferred Stock Units, with respect to each Vested Unit.

 

(f)
Stock Restrictions. Each certificate representing Restricted Stock awarded under the Plan shall bear a legend in such form
as the Company deems appropriate.

 

7.3
Performance Share Awards.

 

(a)
Grant of Performance Share Awards. Each Performance Share Award granted under the Plan shall be evidenced by an Award Agreement.
Each Performance Share Award so granted shall be subject to the conditions set forth in this Section 7.3, and to such other conditions
not inconsistent with the Plan as may be reflected in the applicable Award Agreement. The Committee shall have the discretion
to determine: (i) the number of shares of Common Stock or stock-denominated units subject to a Performance Share Award granted
to any Participant; (ii) the performance period applicable to any Award; (iii) the conditions that must be satisfied for a Participant
to earn an Award; and (iv) the other terms, conditions and restrictions of the Award.

 

(b)
Earning Performance Share Awards. The number of Performance Shares earned by a Participant will depend on the extent to
which the performance goals established by the Committee are attained within the applicable Performance Period, as determined
by the Committee. No payout shall be made with respect to any Performance Share Award except upon written certification by the
Committee that the minimum threshold performance goal(s) have been achieved.

 

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7.4
Performance Compensation Awards.

 

(a)
General. The Committee shall have the authority, at the time of grant of any Award described in this Plan (other than Options
and Stock Appreciation Rights granted with an exercise price equal to or greater than the Fair Market Value per share of Common
Stock on the Grant Date), to designate such Award as a Performance Compensation Award in order to qualify such Award as “performance-based
compensation” under Section 162(m) of the Code. In addition, the Committee shall have the authority to make an Award of
a cash bonus to any Participant and designate such Award as a Performance Compensation Award in order to qualify such Award as
“performance-based compensation” under Section 162(m) of the Code.

 

(b)
Eligibility. The Committee will, in its sole discretion, designate within the first 90 days of a Performance Period (or,
if longer or shorter, within the maximum period allowed under Section 162(m) of the Code) which Participants will be eligible
to receive Performance Compensation Awards in respect of such Performance Period. However, designation of a Participant eligible
to receive an Award hereunder for a Performance Period shall not in any manner entitle the Participant to receive payment in respect
of any Performance Compensation Award for such Performance Period. The determination as to whether or not such Participant becomes
entitled to payment in respect of any Performance Compensation Award shall be decided solely in accordance with the provisions
of this Section 7.4. Moreover, designation of a Participant eligible to receive an Award hereunder for a particular Performance
Period shall not require designation of such Participant eligible to receive an Award hereunder in any subsequent Performance
Period and designation of one person as a Participant eligible to receive an Award hereunder shall not require designation of
any other person as a Participant eligible to receive an Award hereunder in such period or in any other period.

 

(c)
Discretion of Committee with Respect to Performance Compensation Awards. With regard to a particular Performance Period,
the Committee shall have full discretion to select the length of such Performance Period (provided any such Performance Period
shall be not less than one fiscal quarter in duration), the type(s) of Performance Compensation Awards to be issued, the Performance
Criteria that will be used to establish the Performance Goal(s), the kind(s) and/or level(s) of the Performance Goal(s) that is
(are) to apply to the Company and the Performance Formula. Within the first 90 days of a Performance Period (or, if longer or
shorter, within the maximum period allowed under Section 162(m) of the Code), the Committee shall, with regard to the Performance
Compensation Awards to be issued for such Performance Period, exercise its discretion with respect to each of the matters enumerated
in the immediately preceding sentence of this Section 7.4(c) and record the same in writing.

 

(d)
Payment of Performance Compensation Awards.

 

(i)
Condition to Receipt of Payment. Unless otherwise provided in the applicable Award Agreement, a Participant must be employed
by the Company on the last day of a Performance Period to be eligible for payment in respect of a Performance Compensation Award
for such Performance Period.

 

(ii)
Limitation. A Participant shall be eligible to receive payment in respect of a Performance Compensation Award only to the
extent that: (A) the Performance Goals for such period are achieved; and (B) the Performance Formula as applied against such Performance
Goals determines that all or some portion of such Participant’s Performance Compensation Award has been earned for the Performance
Period.

 

    	17 

    	 

    

 

(iii)
Certification. Following the completion of a Performance Period, the Committee shall review and certify in writing whether,
and to what extent, the Performance Goals for the Performance Period have been achieved and, if so, calculate and certify in writing
the amount of the Performance Compensation Awards earned for the period based upon the Performance Formula. The Committee shall
then determine the actual size of each Participant’s Performance Compensation Award for the Performance Period and, in so
doing, may apply Negative Discretion in accordance with Section 7.4(d)(iv) hereof, if and when it deems appropriate.

 

(iv)
Use of Discretion. In determining the actual size of an individual Performance Compensation Award for a Performance Period,
the Committee may reduce or eliminate the amount of the Performance Compensation Award earned under the Performance Formula in
the Performance Period through the use of Negative Discretion if, in its sole judgment, such reduction or elimination is appropriate.
The Committee shall not have the discretion to (A) grant or provide payment in respect of Performance Compensation Awards for
a Performance Period if the Performance Goals for such Performance Period have not been attained or (B) increase a Performance
Compensation Award above the maximum amount payable under Section 7.4(d)(vi) of the Plan.

 

(v)
Timing of Award Payments. Performance Compensation Awards granted for a Performance Period shall be paid to Participants
as soon as administratively practicable following completion of the certifications required by this Section 7.4 but in no event
later than 2 1/2 months following the end of the fiscal year during which the Performance Period is completed.

 

8.
Securities Law Compliance.
Each Award Agreement shall provide that no shares of Common Stock shall be purchased or sold thereunder unless and until (a) any
then applicable requirements of state or federal laws and regulatory agencies have been fully complied with to the satisfaction
of the Company and its counsel and (b) if required to do so by the Company, the Participant has executed and delivered to the
Company a letter of investment intent in such form and containing such provisions as the Committee may require. The Company shall
use reasonable efforts to seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such authority
as may be required to grant Awards and to issue and sell shares of Common Stock upon exercise of the Awards; provided, however,
that this undertaking shall not require the Company to register under the Securities Act the Plan, any Award or any Common Stock
issued or issuable pursuant to any such Award. If, after reasonable efforts, the Company is unable to obtain from any such regulatory
commission or agency the authority which counsel for the Company deems necessary for the lawful issuance and sale of Common Stock
under the Plan, the Company shall be relieved from any liability for failure to issue and sell Common Stock upon exercise of such
Awards unless and until such authority is obtained.

 

9.
Use of Proceeds from Stock.
Proceeds from the sale of Common Stock pursuant to Awards, or upon exercise thereof, shall constitute general funds of the Company.

 

10.
Miscellaneous.

 

10.1
Acceleration of Exercisability and Vesting.
The Committee shall have the power to accelerate the time at which an Award may first be exercised or the time during which an
Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Award stating the time
at which it may first be exercised or the time during which it will vest.

 

    	18 

    	 

    

 

10.2
Shareholder Rights. Except as provided
in the Plan or an Award Agreement, no Participant shall be deemed to be the holder of, or to have any of the rights of a holder
with respect to, any shares of Common Stock subject to such Award unless and until such Participant has satisfied all requirements
for exercise of the Award pursuant to its terms and no adjustment shall be made for dividends (ordinary or extraordinary, whether
in cash, securities or other property) or distributions of other rights for which the record date is prior to the date such Common
Stock certificate is issued, except as provided in Section 11 hereof.

 

10.3
No Employment or Other Service Rights.
Nothing in the Plan or any instrument executed or Award granted pursuant thereto shall confer upon any Participant any right to
continue to serve the Company or an Affiliate in the capacity in effect at the time the Award was granted or shall affect the
right of the Company or an Affiliate to terminate (a) the employment of an Employee with or without notice and with or without
Cause or (b) the service of a Director pursuant to the By-laws of the Company or an Affiliate, and any applicable provisions of
the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be.

 

10.4
Transfer; Approved Leave of Absence. For
purposes of the Plan, no termination of employment by an Employee shall be deemed to result from either (a) a transfer of employment
to the Company from an Affiliate or from the Company to an Affiliate, or from one Affiliate to another, or (b) an approved leave
of absence for military service or sickness, or for any other purpose approved by the Company, if the Employee’s right to
reemployment is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence was granted
or if the Committee otherwise so provides in writing, in either case, except to the extent inconsistent with Section 409A of the
Code if the applicable Award is subject thereto.

 

10.5
Withholding Obligations. To the extent
provided by the terms of an Award Agreement and subject to the discretion of the Committee, the Participant may satisfy any federal,
state or local tax withholding obligation relating to the exercise or acquisition of Common Stock under an Award by any of the
following means (in addition to the Company’s right to withhold from any compensation paid to the Participant by the Company)
or by a combination of such means: (a) tendering a cash payment; (b) authorizing the Company to withhold shares of Common Stock
from the shares of Common Stock otherwise issuable to the Participant as a result of the exercise or acquisition of Common Stock
under the Award, provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum amount of tax
required to be withheld by law; or (c) delivering to the Company previously owned and unencumbered shares of Common Stock of the
Company.

 

11.
Adjustments Upon Changes
in Stock. In the event of changes in the outstanding Common Stock or in the capital structure of the Company by reason
of any stock or extraordinary cash dividend, stock split, reverse stock split, an extraordinary corporate transaction such as
any recapitalization, reorganization, merger, consolidation, combination, exchange, or other relevant change in capitalization
occurring after the Grant Date of any Award, Awards granted under the Plan and any Award Agreements, the exercise price of Options
and Stock Appreciation Rights, the maximum number of shares of Common Stock subject to all Awards stated in Section 4 and the
maximum number of shares of Common Stock with respect to which any one person may be granted Awards during any period stated in
Section 4 and Section 7.4(d)(vi) will be equitably adjusted or substituted, as to the number, price or kind of a share of Common
Stock or other consideration subject to such Awards to the extent necessary to preserve the economic intent of such Award. In
the case of adjustments made pursuant to this Section 11, unless the Committee specifically determines that such adjustment is
in the best interests of the Company or its Affiliates, the Committee shall, in the case of Incentive Stock Options, ensure that
any adjustments under this Section 11 will not constitute a modification, extension or renewal of the Incentive Stock Options
within the meaning of Section 424(h)(3) of the Code and in the case of Non-qualified Stock Options, ensure that any adjustments
under this Section 11 will not constitute a modification of such Non-qualified Stock Options within the meaning of Section 409A
of the Code. Any adjustments made under this Section 11 shall be made in a manner which does not adversely affect the exemption
provided pursuant to Rule 16b-3 under the Exchange Act. Further, with respect to Awards intended to qualify as “performance-based
compensation” under Section 162(m) of the Code, any adjustments or substitutions will not cause the Company to be denied
a tax deduction on account of Section 162(m) of the Code. The Company shall give each Participant notice of an adjustment hereunder
and, upon notice, such adjustment shall be conclusive and binding for all purposes.

 

    	19 

    	 

    

 

12.
Effect of Change in Control.

 

12.1
Unless otherwise provided in an Award Agreement, notwithstanding any provision of the Plan to the contrary:

 

(a)
In the event of a Change in Control, all Options and Stock Appreciation Rights shall become immediately exercisable with respect
to 100% of the shares subject to such Options or Stock Appreciation Rights, and the Restricted Period shall expire immediately
with respect to 100% of the shares of Restricted Stock or Restricted Stock Units.

 

(b)
With respect to Performance Compensation Awards, in the event of a Change in Control, all incomplete Performance Periods in respect
of such Award in effect on the date the Change in Control occurs shall end on the date of such change and the Committee shall
(i) determine the extent to which Performance Goals with respect to each such Performance Period have been met based upon such
audited or unaudited financial information then available as it deems relevant and (ii) cause to be paid to the applicable Participant
partial or full Awards with respect to Performance Goals for each such Performance Period based upon the Committee’s determination
of the degree of attainment of Performance Goals or, if not determinable, assuming that the applicable “target” levels
of performance have been attained, or on such other basis determined by the Committee.

 

To
the extent practicable, any actions taken by the Committee under the immediately preceding clauses (a) and (b) shall occur in
a manner and at a time which allows affected Participants the ability to participate in the Change in Control with respect to
the shares of Common Stock subject to their Awards.

 

12.2
In addition, in the event of a Change in Control, the Committee may in its discretion and upon at least 10 days’ advance
notice to the affected persons, cancel any outstanding Awards and pay to the holders thereof, in cash or stock, or any combination
thereof, the value of such Awards based upon the price per share of Common Stock received or to be received by other shareholders
of the Company in the event. In the case of any Option or Stock Appreciation Right with an exercise price (or SAR Exercise Price
in the case of a Stock Appreciation Right) that equals or exceeds the price paid for a share of Common Stock in connection with
the Change in Control, the Committee may cancel the Option or Stock Appreciation Right without the payment of consideration therefor.

 

12.3
The obligations of the Company under the Plan shall be binding upon any successor corporation or organization resulting from the
merger, consolidation or other reorganization of the Company, or upon any successor corporation or organization succeeding to
all or substantially all of the assets and business of the Company and its Affiliates, taken as a whole.

 

    	20 

    	 

    

 

13.
Amendment of the Plan and
Awards.

 

13.1
Amendment of Plan. The Board at any time,
and from time to time, may amend or terminate the Plan. However, except as provided in Section 11 relating to adjustments upon
changes in Common Stock and Section 13.3, no amendment shall be effective unless approved by the shareholders of the Company to
the extent shareholder approval is necessary to satisfy any Applicable Laws. At the time of such amendment, the Board shall determine,
upon advice from counsel, whether such amendment will be contingent on shareholder approval.

 

13.2
Shareholder Approval. The Board may, in
its sole discretion, submit any other amendment to the Plan for shareholder approval, including, but not limited to, amendments
to the Plan intended to satisfy the requirements of Section 162(m) of the Code and the regulations thereunder regarding the exclusion
of performance-based compensation from the limit on corporate deductibility of compensation paid to certain executive officers.

 

13.3
Contemplated Amendments. It is expressly
contemplated that the Board may amend the Plan in any respect the Board deems necessary or advisable to provide eligible Employees,
Consultants and Directors with the maximum benefits provided or to be provided under the provisions of the Code and the regulations
promulgated thereunder relating to Incentive Stock Options or to the nonqualified deferred compensation provisions of Section
409A of the Code and/or to bring the Plan and/or Awards granted under it into compliance therewith.

 

13.4
No Impairment of Rights. Rights under
any Award granted before amendment of the Plan shall not be impaired by any amendment of the Plan unless (a) the Company requests
the consent of the Participant and (b) the Participant consents in writing.

 

13.5
Amendment of Awards. The Committee at
any time, and from time to time, may amend the terms of any one or more Awards; provided, however, that the Committee may not
affect any amendment which would otherwise constitute an impairment of the rights under any Award unless (a) the Company requests
the consent of the Participant and (b) the Participant consents in writing.

 

14.
General Provisions.

 

14.1
Forfeiture Events. Each Award and the
Participant’s rights, payments and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture
or recoupment upon the occurrence of the events described below, in addition to applicable vesting conditions of an Award. Such
events include a breach of a duty of confidentiality, competing with the Company, soliciting Company personnel after employment
is terminated, failure to assign any invention or technology to the Company if such assignment is a condition of employment or
any other agreements between the Company and the Participant, a termination of the Participant’s Continuous Service for
Cause, violation of the Company’s insider trading policy, or other conduct by the Participant that is detrimental to the
business or reputation of the Company and/or its Affiliates as determined by the Board.

 

14.2
Clawback. Notwithstanding any other provisions
in this Plan, any Award which is subject to recovery under any law, government regulation or stock exchange listing requirement,
will be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation or stock
exchange listing requirement (or any policy adopted by the Company pursuant to any such law, government regulation or stock exchange
listing requirement).

 

14.3
Other Compensation Arrangements. Nothing
contained in this Plan shall prevent the Board from adopting other or additional compensation arrangements, subject to shareholder
approval if such approval is required; and such arrangements may be either generally applicable or applicable only in specific
cases.

 

    	21 

    	 

    

 

14.4
Sub-plans. The Committee may from time
to time establish sub-plans under the Plan for purposes of satisfying blue sky, securities, tax or other laws of various jurisdictions
in which the Company intends to grant Awards. Any sub-plans shall contain such limitations and other terms and conditions as the
Committee determines are necessary or desirable. All sub-plans shall be deemed a part of the Plan, but each sub-plan shall apply
only to the Participants in the jurisdiction for which the sub-plan was designed.

 

14.5
Deferral of Awards. The Committee may
establish one or more programs under the Plan to permit selected Participants the opportunity to elect to defer receipt of consideration
upon exercise of an Award, satisfaction of performance criteria, or other event that absent the election would entitle the Participant
to payment or receipt of shares of Common Stock or other consideration under an Award. The Committee may establish the election
procedures, the timing of such elections, the mechanisms for payments of, and accrual of interest or other earnings, if any, on
amounts, shares or other consideration so deferred, and such other terms, conditions, rules and procedures that the Committee
deems advisable for the administration of any such deferral program.

 

14.6
Unfunded Plan. The Plan shall be unfunded.
Neither the Company, the Board nor the Committee shall be required to establish any special or separate fund or to segregate any
assets to assure the performance of its obligations under the Plan.

 

14.7
Recapitalizations. Each Award Agreement
shall contain provisions required to reflect the provisions of Section 11.

 

14.8
Delivery. Upon exercise of a right granted
under this Plan, the Company shall issue Common Stock or pay any amounts due within a reasonable period of time thereafter. Subject
to any statutory or regulatory obligations the Company may otherwise have, for purposes of this Plan, 30 days shall be considered
a reasonable period of time.

 

14.9
No Fractional Shares. No fractional shares
of Common Stock shall be issued or delivered pursuant to the Plan. The Committee shall determine whether cash, additional Awards
or other securities or property shall be issued or paid in lieu of fractional shares of Common Stock or whether any fractional
shares should be rounded, forfeited or otherwise eliminated.

 

14.10
Other Provisions. The Award Agreements
authorized under the Plan may contain such other provisions not inconsistent with this Plan, including, without limitation, restrictions
upon the exercise of the Awards, as the Committee may deem advisable.

 

14.11
Section 409A. The Plan is intended to
comply with Section 409A of the Code to the extent subject thereto, and, accordingly, to the maximum extent permitted, the Plan
shall be interpreted and administered to be in compliance therewith. Any payments described in the Plan that are due within the
“short-term deferral period” as defined in Section 409A of the Code shall not be treated as deferred compensation
unless Applicable Laws require otherwise. Notwithstanding anything to the contrary in the Plan, to the extent required to avoid
accelerated taxation and tax penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits that
would otherwise be provided pursuant to the Plan during the six (6) month period immediately following the Participant’s
termination of Continuous Service shall instead be paid on the first payroll date after the six-month anniversary of the Participant’s
separation from service (or the Participant’s death, if earlier). Notwithstanding the foregoing, neither the Company nor
the Committee shall have any obligation to take any action to prevent the assessment of any excise tax or penalty on any Participant
under Section 409A of the Code and neither the Company nor the Committee will have any liability to any Participant for such tax
or penalty.

 

    	22 

    	 

    

 

14.12
Disqualifying Dispositions. Any Participant
who shall make a “disposition” (as defined in Section 424 of the Code) of all or any portion of shares of Common Stock
acquired upon exercise of an Incentive Stock Option within two years from the Grant Date of such Incentive Stock Option or within
one year after the issuance of the shares of Common Stock acquired upon exercise of such Incentive Stock Option (a “Disqualifying
Disposition”) shall be required to immediately advise the Company in writing as to the occurrence of the sale and the
price realized upon the sale of such shares of Common Stock.

 

14.13
Section 16. It is the intent of the Company
that the Plan satisfy, and be interpreted in a manner that satisfies, the applicable requirements of Rule 16b-3 as promulgated
under Section 16 of the Exchange Act so that Participants will be entitled to the benefit of Rule 16b-3, or any other rule promulgated
under Section 16 of the Exchange Act, and will not be subject to short-swing liability under Section 16 of the Exchange Act. Accordingly,
if the operation of any provision of the Plan would conflict with the intent expressed in this Section 14.13, such provision to
the extent possible shall be interpreted and/or deemed amended so as to avoid such conflict.

 

14.14
Section 162(m). To the extent the Committee
issues any Award that is intended to be exempt from the deduction limitation of Section 162(m) of the Code, the Committee may,
without shareholder or grantee approval, amend the Plan or the relevant Award Agreement retroactively or prospectively to the
extent it determines necessary in order to comply with any subsequent clarification of Section 162(m) of the Code required to
preserve the Company’s federal income tax deduction for compensation paid pursuant to any such Award.

 

14.15
Beneficiary Designation. Each Participant
under the Plan may from time to time name any beneficiary or beneficiaries by whom any right under the Plan is to be exercised
in case of such Participant’s death. Each designation will revoke all prior designations by the same Participant, shall
be in a form reasonably prescribed by the Committee and shall be effective only when filed by the Participant in writing with
the Company during the Participant’s lifetime.

 

14.16
Expenses. The costs of administering the
Plan shall be paid by the Company.

 

14.17
Severability. If any of the provisions
of the Plan or any Award Agreement is held to be invalid, illegal or unenforceable, whether in whole or in part, such provision
shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or unenforceability and the remaining
provisions shall not be affected thereby.

 

14.18
Plan Headings. The headings in the Plan
are for purposes of convenience only and are not intended to define or limit the construction of the provisions hereof.

 

14.19
Non-Uniform Treatment. The Committee’s
determinations under the Plan need not be uniform and may be made by it selectively among persons who are eligible to receive,
or actually receive, Awards. Without limiting the generality of the foregoing, the Committee shall be entitled to make non-uniform
and selective determinations, amendments and adjustments, and to enter into non-uniform and selective Award Agreements.

 

    	23 

    	 

    

 

15.
Termination or Suspension
of the Plan. The Plan shall terminate automatically 10 years from the Effective Date. No Award shall be granted pursuant
to the Plan after such date, but Awards theretofore granted may extend beyond that date. The Board may suspend or terminate the
Plan at any earlier date pursuant to Section 13.1 hereof. No Awards may be granted under the Plan while the Plan is suspended
or after it is terminated. Unless the Company determines to submit Section 7.4 of the Plan and the definition of “Performance
Goal” and “Performance Criteria” to the Company’s shareholders at the first shareholder meeting that occurs
in the fifth year following the year in which the Plan was last approved by shareholders (or any earlier meeting designated by
the Board), in accordance with the requirements of Section 162(m) of the Code, and such shareholder approval is obtained, then
no further Performance Compensation Awards shall be made to Covered Employees under Section 7.4 after the date of such annual
meeting, but the Plan may continue in effect for Awards to Participants not in accordance with Section 162(m) of the Code.

 

16.
Choice of Law.
The law of the State of Nevada shall govern all questions concerning the construction, validity and interpretation of this Plan,
without regard to such state’s conflict of law rules.

 

As
adopted by the Board of Directors on September 5, 2017.

 

    	24

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