Document:

Westfield Financial, Inc. 8-K

Exhibit 10.1

 

 

 

WESTFIELD
FINANCIAL, INC.

2014
OMNIBUS INCENTIVE PLAN

 

    	 

    	 

    

  

Table
of Contents

 

Page

 

	1.	PURPOSE	1
	2.	DEFINITIONS	1
	3.	ADMINISTRATION OF THE PLAN	9
	 	3.1 Committee.	9
	 	3.1.1 Powers and Authorities.	9
	 	3.1.2 Composition of Committee.	9
	 	3.1.3 Other Committees.	10
	 	3.2 Board.	10
	 	3.3 Terms of Awards.	10
	 	3.3.1 Committee Authority.	10
	 	3.3.2 Forfeiture; Recoupment.	11
	 	3.4 No Repricing.	12
	 	3.5 Deferral Arrangement.	12
	 	3.6 No Liability.	12
	 	3.7 Registration; Share Certificates.	12
	4.	STOCK SUBJECT TO THE PLAN	13
	 	4.1 Number of Shares of Stock Available for Awards.	13
	 	4.2 Adjustments in Authorized Shares of Stock.	13
	 	4.3 Share Usage.	13
	5.	EFFECTIVE DATE; TERM; AMENDMENT AND TERMINATION	14
	 	5.1 Effective Date.	14
	 	5.2 Term.	14
	 	5.3 Amendment and Termination.	14
	6.	AWARD ELIGIBILITY AND LIMITATIONS	14
	 	6.1 Eligible Grantees.	14
	 	6.2 Limitation on Shares of Stock Subject to Awards and Cash Awards.	14
	 	6.3 Stand-Alone, Additional, Tandem, and Substitute Awards.	15
	7.	AWARD AGREEMENT	15
	8.	TERMS AND CONDITIONS OF OPTIONS	16
	 	8.1 Option Price.	16
	 	8.2 Vesting.	16
	 	8.3 Term.	16
	 	8.4 Termination of Service.	16
	 	8.5 Limitations on Exercise of Option.	17
	 	8.6 Method of Exercise.	17
	 	8.7 Rights of Holders of Options.	17
	 	8.8 Delivery of Stock.	17
	 	8.9 Transferability of Options.	17
	 	8.10 Family Transfers.	18
	 	8.11 Limitations on Incentive Stock Options.	18
	 	8.12 Notice of Disqualifying Disposition.	18

 

    	i

    	 

    

 

	9.	TERMS AND CONDITIONS OF RESTRICTED STOCK AND STOCK UNITS	18
	 	9.1 Grant of Restricted Stock or Stock Units.	18
	 	9.2 Restrictions.	19
	 	9.3 Registration; Restricted Share Certificates.	19
	 	9.4 Rights of Holders of Restricted Stock.	19
	 	9.5 Rights of Holders of Stock Units.	20
	 	9.5.1 Voting and Dividend Rights.	20
	 	9.5.2 Creditor’s Rights.	20
	 	9.6 Termination of Service.	20
	 	9.7 Purchase of Restricted Stock and Shares of Stock Subject to Stock Units.	20
	 	9.8 Delivery of Shares of Stock.	21
	10.	TERMS AND CONDITIONS OF UNRESTRICTED STOCK AWARDS AND OTHER EQUITY-BASED AWARDS	21
	 	10.1.
    Unrestricted Stock Awards.	21
	 	10.2.
    Other Equity-Based Awards.	21
	11.	FORM OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK	22
	 	11.1 General Rule.	22
	 	11.2 Surrender of Shares of Stock.	22
	 	11.3 Cashless Exercise.	22
	 	11.4 Other Forms of Payment.	22
	12.	TERMS AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS	23
	 	12.1.
    Dividend Equivalent Rights.	23
	 	12.2.
    Termination of Service.	23
	13.	TERMS AND CONDITIONS OF PERFORMANCE-BASED AWARDS	23
	 	13.1 Grant of Performance-Based Awards.	23
	 	13.2 Value of Performance-Based Awards.	24
	 	13.3 Earning of Performance-Based Awards.	24
	 	13.4 Form and Timing of Payment of Performance-Based Awards.	24
	 	13.5 Performance Conditions.	24
	 	13.6 Performance-Based Awards Granted to Designated Covered Employees.	24
	 	13.6.1 Performance Goals Generally.	25
	 	13.6.2 Timing for Establishing Performance Goals.	25
	 	13.6.3 Payment of Awards; Other Terms.	25
	 	13.6.4 Performance Measures.	25
	 	13.6.5 Evaluation of Performance.	27
	 	13.6.6 Adjustment of Performance-Based Compensation.	28
	 	13.6.7 Committee Discretion.	28
	 	13.7 Status of Awards Under Code Section 162(m).	28
	14.	PARACHUTE LIMITATIONS	28
	15.	REQUIREMENTS OF LAW	29
	 	15.1 General.	29
	 	15.2 Rule 16b-3.	30
	16.	EFFECT OF CHANGES IN CAPITALIZATION	30
	 	16.1 Changes in Stock.	30

 

    	ii

    	 

    

 

	 	16.2 Reorganization in Which the Company Is the Surviving Entity Which Does Not Constitute a Change in Control.	31
	 	16.3 Change in Control in which Awards are not Assumed.	31
	 	16.4 Change in Control in which Awards are Assumed.	32
	 	16.5 Adjustments	33
	 	16.6 No Limitations on Company.	33
	17.	GENERAL PROVISIONS	34
	 	17.1 Disclaimer of Rights.	34
	 	17.2 Nonexclusivity of the Plan.	34
	 	17.3 Withholding Taxes.	34
	 	17.4 Captions.	35
	 	17.5 Construction.	35
	 	17.6 Other Provisions.	35
	 	17.7 Number and Gender.	35
	 	17.8 Severability.	36
	 	17.9 Governing Law.	36
	 	17.10 Section 409A of the Code.	36

 

    	iii

    	 

    

 

WESTFIELD
FINANCIAL, INC.

 

2014
OMNIBUS INCENTIVE PLAN

 

Westfield
Financial, Inc. (the “Company”) sets forth herein the terms of its 2014 Omnibus Incentive Plan (the “Plan”),
as follows:

 

1.                 
PURPOSE

 

The
Plan is intended to (a) provide eligible persons with an incentive to contribute to the success of the Company and to operate
and manage the Company’s business in a manner that will provide for the Company’s long-term growth and profitability
to benefit its stockholders and other important stakeholders, including its employees and customers, and (b) provide a means
of obtaining, rewarding, and retaining key personnel. To this end, the Plan provides for the grant of awards of stock options,
restricted stock, stock units, unrestricted stock, dividend equivalent rights, performance shares and other performance-based
awards, other equity-based awards, and cash bonus awards. Any of these awards may, but need not, be made as performance incentives
to reward the holders of such awards for the achievement of performance goals in accordance with the terms of the Plan. Stock
options granted under the Plan may be non-qualified stock options or incentive stock options, as provided herein.

 

2.                 
DEFINITIONS

 

For
purposes of interpreting the Plan documents (including the Plan and Award Agreements), the following definitions shall apply:

 

2.1“Affiliate”
means any company or other entity that controls, is controlled by, or is under common control with the Company within the meaning
of Rule 405 of Regulation C under the Securities Act, including any Subsidiary. For purposes of grants of Options, an
entity may not be considered an Affiliate unless the Company holds a “controlling interest” in such entity within
the meaning of Treasury Regulations Section 1.414(c)-2(b)(2)(i); provided, that (a) except as specified in clause
(b) below, an interest of “at least 50 percent” shall be used instead of an interest of “at least 80 percent”
in each case where “at least 80 percent” appears in Treasury Regulations Section 1.414(c)-2(b)(2)(i) and (b) where
the grant of Options is based upon a legitimate business criterion, an interest of “at least 20 percent” shall be
used instead of an interest of “at least 80 percent” in each case where “at least 80 percent” appears
in Treasury Regulations Section 1.414(c)-2(b)(2)(i).

 

2.2“Applicable
Laws” means the legal requirements relating to the Plan and the Awards under (a) applicable provisions of the corporate,
securities, tax and other laws, rules, regulations and government orders of any jurisdiction applicable to Awards granted to residents
therein and (b) the rules of any Stock Exchange on which the Stock is listed.

 

2.3“Award”
means a grant under the Plan of an Option, Restricted Stock, a Stock Unit, Unrestricted Stock, a Dividend Equivalent Right, a
Performance Share or other Performance-Based Award, an Other Equity-Based Award, or cash.

 

    	1

    	 

    

 

2.4“Award
Agreement” means the agreement between the Company and a Grantee that evidences and sets out the terms and conditions
of an Award.

 

2.5“Award
Stock” shall have the meaning set forth in Section 16.3(a)(ii).

 

2.6“Bank”
means Westfield Bank.

 

2.7“Benefit
Arrangement” shall have the meaning set forth in Section 14.

 

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

 

2.9“Cause” means,
as determined by the Committee and unless otherwise provided in an applicable agreement with the Company, the Bank, or an Affiliate,
the Grantee’s (a) personal dishonesty, (b) incompetence, (c) willful misconduct, (d) breach of fiduciary duties involving
personal profit, (e) intentional failure to perform stated duties, or (f) willful violation of any law, rule, or regulation (other
than traffic violations or similar offenses) or final cease-and-desist order. Any determination by the Committee whether an event
constituting Cause shall have occurred shall be final, binding, and conclusive.

 

2.10“Capital
Stock” means, with respect to any Person, any and all shares, interests, participations, or other equivalents (however
designated, whether voting or non-voting) in equity of such Person, whether outstanding on the Effective Date or issued thereafter,
including, without limitation, all common stock, no par value, of the Company.

 

2.11“Change
in Control” means the occurrence of any of the following:

 

		(a)	The
                                         consummation of a reorganization, merger, or consolidation of the Company, respectively,
                                         with one (1) or more other Persons, other than a transaction following which:

		(1)	At
                                         least fifty-one percent (51%) of the equity ownership interests of the entity resulting
                                         from such transaction are beneficially owned (within the meaning of Rule 13d-3 promulgated
                                         under the Exchange Act) in substantially the same relative proportions by Persons who,
                                         immediately prior to such transaction, beneficially owned (within the meaning of Rule
                                         13d-3 promulgated under the Exchange Act) at least fifty-one percent (51%) of the outstanding
                                         equity ownership interests in the Company; and

		(2)	At
                                         least fifty-one percent (51%) of the securities entitled to vote generally in the election
                                         of directors of the entity resulting from such transaction are beneficially owned (within
                                         the meaning of Rule 13d-3 promulgated under the Exchange Act) in substantially the same
                                         relative proportions by Persons who, immediately prior to such transaction, beneficially
                                         owned (within the meaning of Rule 13d-3 promulgated under the Exchange Act) at least
                                         fifty-one percent (51%) of the securities entitled to vote generally in the election
                                         of directors of the Company;

    	2

    	 

    
 

		(b)	The
                                         acquisition of all or substantially all of the assets of the Company or beneficial ownership
                                         (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty-five
                                         percent (25%) or more of the outstanding securities of the Company entitled to vote generally
                                         in the election of directors by any Person or by any Persons acting in concert, or approval
                                         by the stockholders of the Company of any transaction which would result in such an acquisition;

		(c)	A
                                         complete liquidation or dissolution of the Company;

		(d)	The
                                         occurrence of any event if, immediately following such event, at least fifty percent
                                         (50%) of the members of the Board of the Company do not belong to any of the following
                                         groups:

		(1)	Individuals
                                         who were members of the Board of the Company on the Effective Date; or

		(2)	Individuals
                                         who first became members of the Board of the Company after the Effective Date either:

		(A)	Upon
                                         election to serve as a member of the Board of the Company by affirmative vote of three-quarters
                                         (3/4) of the members of such Board, or of a nominating committee thereof, in office at
                                         the time of such first election; or

		(B)	Upon
                                         election by the stockholders of the Company to serve as a member of the Board of the
                                         Company, but only if nominated for election by affirmative vote of three-quarters (3/4)
                                         of the members of the Board of the Company, or of a nominating committee thereof, in
                                         office at the time of such first nomination;

provided,
however, that such individual's election or nomination did not result from an actual or threatened election contest or other
actual or threatened solicitation of proxies or consents other than by or on behalf of the Board of the Company; or

 

		(e)	Approval
                                         by the stockholders of the Company of any agreement, plan, or arrangement for the consummation
                                         of a transaction which, if consummated, would result in the occurrence of an event described
                                         in paragraphs (a), (b), (c), or (d) above.

    	3

    	 

    

  

		(f)	Any
                                         event which would be described in paragraphs (a), (b), (c), (d), or (e) above if the
                                         term “Bank” were substituted for the term “Company” therein.

In
no event, however, shall a Change in Control be deemed to have occurred as a result of any acquisition of securities or assets
of the Company, the Bank, or any Subsidiary of either of them, by the Company, the Bank, or any subsidiary of either of them,
or by any employee benefit plan maintained by any of them.

 

2.12“Code”
means the Internal Revenue Code of 1986, as amended, as now in effect or as hereafter amended, and any successor thereto. References
in the Plan to any Code section shall be deemed to include, as applicable, regulations and guidance promulgated under such Code
section.

 

2.13“Committee”
means a committee of, and designated from time to time by resolution of, the Board, which shall be constituted as provided in
Section 3.1.2 and Section 3.1.3 (or, if no Committee has been so designated, the Board).

 

2.14“Company”
means Westfield Financial, Inc. and its successors.

 

2.15“Covered
Employee” means a Grantee who is a “covered employee” within the meaning of Code Section 162(m)(3).

 

2.16“Disability”
means, as determined by the Committee and unless otherwise provided in an applicable agreement with the Company, the Bank, or
an Affiliate, the inability of a Grantee to perform each of the essential duties of such Grantee’s position by reason of
a medically determinable physical or mental impairment which is potentially permanent in character or which can be expected to
last for a continuous period of not less than twelve (12) months; provided, that, with respect to rules regarding expiration
of an Incentive Stock Option following termination of a Grantee’s Service, Disability shall mean the inability of such Grantee
to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can
be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve
(12) months.

 

2.17“Dividend
Equivalent Right” means a right, granted to a Grantee pursuant to Section 12.1, to receive cash, Stock, other
Awards, or other property equal in value to dividends or other periodic payments paid or made with respect to a specified number
of shares of Stock.

 

2.18“Effective
Date” means May 15, 2014, the date on which the Plan is approved by the Company’s stockholders.

 

2.19“Employee”
means, as of any date of determination, an employee (including an officer) of the Company, the Bank, or an Affiliate.

 

2.20“Exchange
Act” means the Securities Exchange Act of 1934, as amended, as now in effect or as hereafter amended.

    	4

    	 

    

2.21“Fair
Market Value” means the fair market value of a share of Stock for purposes of the Plan, which shall be determined as
of any Grant Date as follows:

 

		(a)	If
                                         on such Grant Date the shares of Stock are listed on a Stock Exchange, or are publicly
                                         traded on another established securities market (a “Securities Market”
                                         ), the Fair Market Value of a share of Stock shall be the closing price of the Stock
                                         as reported on such Stock Exchange or such Securities Market (provided that, if
                                         there is more than one such Stock Exchange or Securities Market, the Committee shall
                                         designate the appropriate Stock Exchange or Securities Market for purposes of the Fair
                                         Market Value determination). If there is no such reported closing price on such Grant
                                         Date, the Fair Market Value of a share of Stock shall be the closing price of the Stock
                                         on the next preceding day on which any sale of Stock shall have been reported on such
                                         Stock Exchange or such Securities Market.

		(b)	If
                                         on such Grant Date the shares of Stock are not listed on a Stock Exchange or publicly
                                         traded on a Securities Market, the Fair Market Value of a share of Stock shall be the
                                         value of the Stock as determined by the Committee by the reasonable application of a
                                         reasonable valuation method, in a manner consistent with Code Section 409A.

Notwithstanding
this Section 2.20 or Section 17.3, for purposes of determining taxable income and the amount of the related
tax withholding obligation pursuant to Section 17.3, the Fair Market Value will be determined by the Company using
any reasonable method; provided, further, that for any shares of Stock subject to an Award that are sold by or on behalf
of a Grantee on the same date on which such shares may first be sold pursuant to the terms of the related Award Agreement, the
Fair Market Value of such shares shall be the sale price of such shares on such date (or if sales of such shares are effectuated
at more than one sale price, the weighted average sale price of such shares on such date).

 

2.22“Family
Member” means, with respect to any Grantee as of any date of determination, (a) a person who is a spouse, former
spouse, child, stepchild, grandchild, parent, stepparent, grandparent, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother, sister, brother-in-law, or sister-in-law, including adoptive relationships, of such Grantee, (b) any
person sharing such Grantee’s household (other than a tenant or employee), (c) a trust in which any one or more of
the persons specified in clauses (a) and (b) above (and such Grantee) own more than fifty percent (50%) of the
beneficial interest, (d) a foundation in which any one or more of the persons specified in clauses (a) and (b) above
(and such Grantee) control the management of assets, and (e) any other entity in which one or more of the persons specified
in clauses (a) and (b) above (and such Grantee) own more than fifty percent (50%) of the voting interests.

 

2.23“Fully
Diluted Basis” means, as of any date of determination, the sum of (x) the number of shares of Voting Stock outstanding
as of such date of determination plus (y) the number of shares of Voting Stock issuable upon the exercise, conversion, or
exchange of all then-outstanding warrants, options, convertible Capital Stock or indebtedness, exchangeable Capital Stock or indebtedness,
or other rights exercisable for or convertible or exchangeable into, directly or indirectly, shares of Voting Stock, whether at
the time of issue or upon the passage of time or upon the occurrence of some future event, and whether or not in the money as
of such date of determination.

    	5

    	 

    

 

2.24“Grant
Date” means, as determined by the Committee, the latest to occur of (a) the date as of which the Committee approves
the Award, (b) the date on which the recipient of an Award first becomes eligible to receive an Award under Section 6
hereof (e.g., in the case of a new hire, the first date on which such new hire performs any Service), or (c) such subsequent
date specified by the Committee in the corporate action approving the Award.

 

2.25“Grantee”
means a person who receives or holds an Award under the Plan.

 

2.26“Incentive
Stock Option” means an “incentive stock option” within the meaning of Code Section 422, or the corresponding
provision of any subsequently enacted tax statute, as amended from time to time.

 

2.27“Non-qualified
Stock Option” means an Option that is not an Incentive Stock Option.

 

2.28“Option”
means an option to purchase one or more shares of Stock pursuant to the Plan.

 

2.29“Option
Price” means the exercise price for each share of Stock subject to an Option.

 

2.30“Other
Agreement” shall have the meaning set forth in Section 14.

 

2.31“Other
Equity-Based Award” means an Award representing a right or other interest that may be denominated or payable in, valued
in whole or in part by reference to, or otherwise based on, or related to, Stock, other than an Option, Restricted Stock, a Stock
Unit, Unrestricted Stock, a Dividend Equivalent Right, or a Performance Share.

 

2.32“Outside
Director” means a member of the Board who is not an Employee.

 

2.33“Parachute
Payment” shall have the meaning set forth in Section 14(a).

 

2.34“Performance-Based
Award” means an Award of Options, Restricted Stock, Stock Units, Performance Shares, Other Equity-Based Awards, or cash
made subject to the achievement of performance goals (as provided in Section 13) over a Performance Period specified
by the Committee.

 

2.35“Performance-Based
Compensation” means compensation under an Award that is intended to satisfy the requirements of Code Section 162(m)
for “qualified performance-based compensation” paid to Covered Employees. Notwithstanding the foregoing, nothing in
the Plan shall be construed to mean that an Award which does not satisfy the requirements for “qualified performance-based
compensation” within the meaning of and pursuant to Code Section 162(m) does not constitute performance-based compensation
for other purposes, including the purposes of Code Section 409A.

    	6

    	 

    

2.36“Performance
Measures” means measures as specified in Section 13.6.4 on which the performance goals under Performance-Based
Awards are based and which are approved by the Company’s stockholders pursuant to, and to the extent required by, the Plan
in order to qualify such Performance-Based Awards as Performance-Based Compensation.

 

2.37“Performance
Period” means the period of time during which the performance goals under Performance-Based Awards must be met
in order to determine the degree of payout and/or vesting with respect to any such Performance-Based Awards.

 

2.38“Performance
Shares” means a Performance-Based Award representing a right or other interest that may be denominated or payable in,
valued in whole or in part by reference to, or otherwise based on, or related to, Stock, made subject to the achievement of performance
goals (as provided in Section 13) over a Performance Period of up to ten (10) years.

 

2.39“Person”
means an individual, a corporation, a partnership, a limited liability company, an association, a trust, or any other entity or
organization, including a government or political subdivision or an agency or instrumentality thereof.

 

2.40“Plan”
means the Company’s 2014 Omnibus Incentive Plan, as amended from time to time.

 

2.41“Prior
Plans” means the Company’s 2007 Stock Option Plan and the Company’s 2007 Recognition and Retention Plan.

 

2.42“Reporting
Person” means a person who is required to file reports under Section 16(a) of the Exchange Act, or any successor
provision.

  

2.43“Restricted
Period” shall have the meaning set forth in Section 9.2.

 

2.44“Restricted
Stock” means shares of Stock awarded to a Grantee pursuant to Section 10.

 

2.45“Securities
Act” means the Securities Act of 1933, as amended, as now in effect or as hereafter amended.

 

2.46“Service”
means service qualifying a Grantee as a Service Provider to the Company, the Bank, or an Affiliate. Unless otherwise provided
in the applicable Award Agreement, a Grantee’s change in position or duties shall not result in interrupted or terminated
Service, so long as such Grantee continues to be a Service Provider to the Company, the Bank, or an Affiliate. Subject to the
preceding sentence, any determination by the Committee whether a termination of Service shall have occurred for purposes of the
Plan shall be final, binding, and conclusive. If a Service Provider’s employment or other service relationship is with an
Affiliate and the applicable entity ceases to be an Affiliate, a termination of Service shall be deemed to have occurred when
such entity ceases to be an Affiliate unless the Service Provider transfers his or her employment or other service relationship
to the Company or any other Affiliate.

    	7

    	 

    

2.47“Service
Provider” means an Employee, officer, or director of the Company, the Bank, or an Affiliate, or a consultant or adviser
(who is a natural person) to the Company, the Bank, or an Affiliate currently providing services to the Company, the Bank, or
an Affiliate.

 

2.48“Stock”
means the common stock, $0.01 par value, of the Company, or any security which shares of Stock may be changed into or for which
shares of Stock may be exchanged as provided in Section 16.1.

 

2.49“Stock
Exchange” means the National Association of Securities Dealers Automated Quotations (NASDAQ) or another established
national or regional stock exchange.

 

2.50“Stock
Unit” means a bookkeeping entry representing the equivalent of one (1) share of Stock awarded to a Grantee
pursuant to Section 9 that (a) is not subject to vesting or (b) is subject to time-based vesting, but not
to performance-based vesting. A Stock Unit may also be referred to as a restricted stock unit.

 

2.51“Subsidiary”
means any corporation (other than the Company) or non-corporate entity with respect to which the Company owns, directly or indirectly,
fifty percent (50%) or more of the total combined voting power of all classes of stock, membership interests, or other ownership
interests of any class or kind ordinarily having the power to vote for the directors, managers, or other voting members of the
governing body of such corporation or non-corporate entity. In addition, any other entity may be designated by the Committee as
a Subsidiary; provided, that (a) such entity could be considered as a subsidiary according to generally accepted accounting
principles in the United States of America, and (b) in the case of an Award of Options, such Award would be considered to
be granted in respect of “service recipient stock” under Code Section 409A.

 

2.52“Substitute
Award” means an Award granted upon assumption of, or in substitution for, outstanding awards previously granted under
a compensatory plan by a business entity acquired or to be acquired by the Company, the Bank, or an Affiliate or with which the
Company, the Bank, or an Affiliate has combined or will combine.

 

2.53“Ten
Percent Stockholder” means a natural person who owns more than ten percent (10%) of the total combined voting power
of all classes of outstanding voting securities of the Company, the Company’s parent (if any), or any of the Company’s
Subsidiaries. In determining stock ownership, the attribution rules of Code Section 424(d) shall be applied.

 

2.54“Unrestricted
Stock” shall have the meaning set forth in Section 10.1.

 

2.55“Voting
Stock” means, with respect to any Person, Capital Stock of any class or kind ordinarily having the power to vote
for the election of directors, managers, or other voting members of the governing body of such Person.

    	8

    	 

    

3.             ADMINISTRATION OF THE PLAN

  

		3.1	Committee.

		3.1.1	Powers
                                         and Authorities.

 

The
Committee shall administer the Plan and shall have such powers and authorities related to the administration of the Plan as are
consistent with the Company’s certificate of incorporation and bylaws and Applicable Laws. Without limiting the generality
of the foregoing, the Committee shall have full power and authority to take all actions and to make all determinations required
or provided for under the Plan, any Award, or any Award Agreement, and shall have full power and authority to take all such other
actions and make all such other determinations not inconsistent with the specific terms and provisions of the Plan which the Committee
deems to be necessary or appropriate to the administration of the Plan, any Award, or any Award Agreement. All such actions and
determinations shall be made by (a) the affirmative vote of a majority of the members of the Committee present at a meeting
at which a quorum is present or (b) the unanimous consent of the members of the Committee executed in writing in accordance
with the Company’s certificate of incorporation and bylaws and Applicable Laws. Unless otherwise expressly determined by
the Board, the Committee shall have the authority to interpret and construe all provisions of the Plan, any Award, and any Award
Agreement, and any such interpretation or construction, and any other determination contemplated to be made under the Plan or
any Award Agreement, by the Committee shall be final, binding, and conclusive whether or not expressly provided for in any provision
of the Plan, such Award, or such Award Agreement.

 

In
the event that the Plan, any Award, or any Award Agreement provides for any action to be taken by the Board or any determination
to be made by the Board, such action may be taken or such determination may be made by the Committee constituted in accordance
with this Section 3.1 if the Board has delegated the power and authority to do so to such Committee.

 

		3.1.2	Composition
                                         of Committee.

 

The
Committee shall be a committee composed of not fewer than two (2) directors of the Company designated by the Board to administer
the Plan. Each member of the Committee shall be a “Non-Employee Director” within the meaning of Rule 16b-3 under
the Exchange Act, an “outside director” within the meaning of Code Section 162(m)(4)(C)(i), and for so long as
the Stock is listed on the NASDAQ Stock Market, an “independent director” within the meaning of Section 5605(a)(2)
of the NASDAQ Listing Rules; provided, that any action taken by the Committee shall be valid and effective whether or not
members of the Committee at the time of such action are later determined not to have satisfied the requirements for membership
set forth in this Section 3.1.2 or otherwise provided in any charter of the Committee. Without limiting the generality
of the foregoing, the Committee may be the Compensation Committee of the Board or a subcommittee thereof if the Compensation Committee
of the Board or such subcommittee satisfies the foregoing requirements.

    	9

    	 

    

		3.1.3	Other
                                         Committees.

 

The
Board also may appoint one or more committees of the Board, each composed of one (1) or more directors of the Company who
need not be Outside Directors, which may administer the Plan with respect to Grantees who are not “officers” as defined
in Rule 16a-1(f) under the Exchange Act or directors of the Company, may grant Awards under the Plan to such Grantees, and
may determine all terms of such Awards, subject to the requirements of Rule 16b-3 under the Exchange Act, Code Section 162(m),
and for so long as the Stock is listed on the NASDAQ Stock Market, the rules of such Stock Exchange.

 

		3.2	Board.

 

The
Board from time to time may exercise any or all of the powers and authorities related to the administration and implementation
of the Plan, as set forth in Section 3.1 and other applicable provisions of the Plan, as the Board shall determine,
consistent with the Company’s certificate of incorporation and bylaws and Applicable Laws.

 

		3.3	Terms
                                         of Awards.

		3.3.1	Committee
                                         Authority.

 

Subject
to the other terms and conditions of the Plan, the Committee shall have full and final authority to:

 

	 	(a)	designate
Grantees;
	 	 	 
	 	(b)	determine
the type or types of Awards to be made to a Grantee;
	 	 	 
	 	(c)	determine
the number of shares of Stock to be subject to an Award;
	 	 	 
		(d)	establish
                                         the terms and conditions of each Award (including the Option Price of any Option or the
                                         purchase price for Restricted Stock), the nature and duration of any restriction or condition
                                         (or provision for lapse thereof) relating to the vesting, exercise, transfer, or forfeiture
                                         of an Award or the shares of Stock subject thereto, the treatment of an Award in the
                                         event of a Change in Control (subject to applicable agreements), and any terms or conditions
                                         that may be necessary to qualify Options as Incentive Stock Options;
	 	 	 
	 	(e)	prescribe
the form of each Award Agreement evidencing an Award; and

 

		(f)	subject
                                         to the limitation on repricing in Section 3.4, amend, modify, or supplement
                                         the terms of any outstanding Award, which authority shall include the authority, in order
                                         to effectuate the purposes of the Plan but without amending the Plan, to make Awards
                                         or to modify outstanding Awards made to eligible natural persons who are foreign nationals
                                         or are natural persons who are employed outside the United States to reflect differences
                                         in local law, tax policy, or custom; provided, that, notwithstanding the foregoing,
                                         no amendment, modification, or supplement of the terms of any outstanding Award shall,
                                         without the consent of the Grantee thereof, impair such Grantee’s rights under
                                         such Award.

    	10

    	 

    

The
Committee shall have the right, in its discretion, to make Awards in substitution or exchange for any award granted under another
compensatory plan of the Company, the Bank, an Affiliate, or any business entity acquired or to be acquired by the Company, the
Bank, or an Affiliate or with which the Company, the Bank, or an Affiliate has combined or will combine.

 

		3.3.2	Forfeiture;
                                         Recoupment.

 

If
any time within one (1) year after the date on which a Grantee exercises an Option, or receives payment of a Performance-Based
Award, or on which Restricted Stock or Stock Units vest, or on which income is realized by a Grantee in connection with any other
Award (each of which events shall be a “realization event”), the Board determines in its discretion that the Company
has been materially harmed by the Grantee, whether such harm (a) results in the Grantee’s termination or deemed termination
of employment for Cause or (b) results from any activity of the Grantee determined by the Board to be in competition with any
activity of the Company, the Bank, or an Affiliate, or otherwise prejudicial, contrary, or harmful to the interests of the Company,
the Bank, or an Affiliate (including, but not limited to, accepting employment with or serving as a consultant, adviser, or in
any other capacity to an entity that is in competition with or acting against the interests of the Company, the Bank, or an Affiliate),
then any gain realized by the Grantee from the realization event shall be paid by the Grantee to the Company upon notice from
the Company. Such gain shall be determined as of the date of the realization event, without regard to any subsequent change in
the Fair Market Value of the Stock. The Company shall have the right to offset such gain against any amounts otherwise owed to
the Grantee by the Company, the Bank, or an Affiliate (whether as wages, vacation pay, or pursuant to any benefit plan or other
compensatory arrangement).

 

In
addition, the Committee may reserve the right in an Award Agreement to cause a forfeiture of the gain realized by a Grantee with
respect to an Award thereunder on account of actions taken by, or failed to be taken by, such Grantee in violation or breach of
or in conflict with any (a) employment agreement, (b) non-competition agreement, (c) agreement prohibiting solicitation
of Employees or clients of the Company, the Bank, or an Affiliate, (d) confidentiality obligation with respect to the Company,
the Bank, or an Affiliate, (e) Company or Bank policy or procedure, (f) other agreement, or (g) any other obligation
of such Grantee to the Company, the Bank, or an Affiliate, as and to the extent specified in such Award Agreement. The Committee
may annul an outstanding Award if the Grantee thereof is an Employee of the Company, the Bank, or an Affiliate and is terminated
for Cause as defined in the Plan or the applicable Award Agreement or for “cause” as defined in any other agreement
between the Company, the Bank, or an Affiliate and such Grantee, as applicable.

    	11

    	 

    

Any
Award granted pursuant to the Plan shall be subject to mandatory repayment by the Grantee to the Company to the extent the Grantee
is, or in the future becomes, subject to (a) any Company or Bank “clawback” or recoupment policy that is adopted
to comply with the requirements of any Applicable Law, rule, regulation, or otherwise, or (b) any law, rule, or regulation
which imposes mandatory recoupment, under circumstances set forth in such law, rule, or regulation.

 

		3.4	No
                                         Repricing.

 

Except
in connection with a corporate transaction involving the Company (including, without limitation, any stock dividend, distribution
(whether in the form of cash, shares of Stock, other securities or other property), stock split, extraordinary cash dividend,
recapitalization, Change in Control, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange
of shares of Stock or other securities or similar transaction), the Company may not, without obtaining stockholder approval: (a) amend
the terms of outstanding Options to reduce the exercise price of such outstanding Options; (b) cancel outstanding Options
in exchange for, or substitution of, Options with an exercise price that is less than the exercise price of the original Options;
or (c) cancel outstanding Options with an exercise price above the current stock price in exchange for cash or other securities.

 

		3.5	Deferral
                                         Arrangement.

 

The
Committee may permit or require the deferral of any payment pursuant to any Award into a deferred compensation arrangement, subject
to such rules and procedures as it may establish, which may include provisions for the payment or crediting of interest or Dividend
Equivalent Rights and, in connection therewith, provisions for converting such credits into Stock Units and for restricting deferrals
to comply with hardship distribution rules affecting tax-qualified retirement plans subject to Code Section 401(k)(2)(B)(IV);
provided, that no Dividend Equivalent Rights may be granted in connection with, or related to, an Award of Options. Any
such deferrals shall be made in a manner that complies with Code Section 409A, including, if applicable, with respect to
when a “separation from service” occurs (as defined under Code Section 409A).

 

		3.6	No
                                         Liability.

 

No
member of the Board or the Committee shall be liable for any action or determination made in good faith with respect to the Plan
or any Award or Award Agreement.

 

		3.7	Registration;
                                         Share Certificates.

 

Notwithstanding
any provision of the Plan to the contrary, the ownership of the shares of Stock issued under the Plan may be evidenced in such
a manner as the Committee, in its sole discretion, deems appropriate, including by book-entry or direct registration (including
transaction advices) or the issuance of one or more share certificates.

    	12

    	 

    

		4.	STOCK
                                         SUBJECT TO THE PLAN

		4.1	Number
                                         of Shares of Stock Available for Awards.

 

Subject
to such additional shares of Stock as shall be available for Awards under the Plan pursuant to Section 4.2, and subject
to adjustment pursuant to Section 17.1, the maximum number of shares of Stock available for Awards under the Plan
shall be equal to five hundred sixteen thousand (516,000) shares of Stock. Such shares of Stock may be authorized and unissued
shares of Stock or treasury shares of Stock or any combination of the foregoing, as may be determined from time to time by the
Board or by the Committee. Any of the shares of Stock available for Awards under the Plan may be used for any type of Award under
the Plan, and any or all of the shares of Stock available for Awards under the Plan shall be available for Awards pursuant to
Incentive Stock Options.

 

		4.2	Adjustments
                                         in Authorized Shares of Stock.

 

In
connection with mergers, reorganizations, separations, or other transactions to which Code Section 424(a) applies, the Committee
shall have the right to cause the Company to assume awards previously granted under a compensatory plan by another business entity
that is a party to such transaction and to substitute Awards under the Plan for such awards. The number of shares of Stock available
for Awards under the Plan pursuant to Section 4.1 shall be increased by the number of shares of Stock subject to any
such assumed awards and substitute Awards. Shares available for awards under a shareholder-approved plan of a business entity
that is a party to such transaction (as appropriately adjusted, if necessary, to reflect such transaction) may be used for Awards
under the Plan and shall not reduce the number of shares of Stock otherwise available for Awards under the Plan, subject to applicable
rules of any Stock Exchange on which the Stock is listed.

 

		4.3	Share
                                         Usage.

 

Shares
of Stock subject to an Award shall be counted as used as of the Grant Date. Any shares of
Stock that are subject to Awards shall be counted against the limit set forth in Section 4.1 as one (1) share of Stock
for every one (1) share of Stock subject to an Award. If any shares of Stock covered by an Award granted under the Plan are not
purchased or are forfeited or expire, or if an Award otherwise terminates without delivery of any shares of Stock subject thereto
or is settled in cash in lieu of shares of Stock, then the number of shares of Stock counted against the aggregate number of shares
of Stock available under the Plan with respect to such Award shall, to the extent of any such forfeiture, termination, or expiration,
again be available for making Awards under the Plan in the same amount as such shares of Stock were counted against the limit
set forth in Section 4.1. 

 

The
number of shares of Stock available for Awards under the Plan shall not be increased by the number of shares of Stock (i) tendered
or withheld or subject to an Award surrendered in connection with the purchase of shares of Stock upon exercise of an Option as
provided in Section 11.2, (ii) deducted or delivered from payment of an Award of an Option in connection with
the Company’s tax withholding obligations as provided in Section 17.3, or (iii) purchased by the
Company with proceeds from Option exercises.

    	13

    	 

    

5.                 
EFFECTIVE DATE; TERM; AMENDMENT AND TERMINATION

 

		5.1	Effective
                                         Date.

 

The
Plan shall become effective as of the Effective Date. Following the Effective Date, no awards shall be made under the Prior Plans.
Notwithstanding the foregoing, shares of Stock reserved under the Prior Plans to settle awards, including performance-based awards,
which are made under the Prior Plans prior to the Effective Date may be issued and delivered following the Effective Date to settle
such awards.

 

		5.2	Term.

 

The
Plan shall terminate automatically ten (10) years after the Effective Date and may be terminated on any earlier date as provided
in Section 5.3.

 

		5.3	Amendment
                                         and Termination.

 

The
Board may, at any time and from time to time, amend, suspend, or terminate the Plan as to any shares of Stock as to which Awards
have not been made. The effectiveness of any amendment to the Plan shall be contingent on approval of such amendment by the Company’s
stockholders to the extent provided by the Board or required by Applicable Laws (including the rules of any Stock Exchange on
which the Stock is then listed); provided, that no amendment shall be made to the no-repricing provisions of Section 3.4
or the Option pricing provisions of Section 8.1 without the approval of the Company’s stockholders. No amendment,
suspension, or termination of the Plan shall impair rights or obligations under any Award theretofore made under the Plan without
the consent of the Grantee thereof.

 

6.                 
AWARD ELIGIBILITY AND LIMITATIONS

 

		6.1	Eligible
                                         Grantees.

 

Subject
to this Section 6, Awards may be made under the Plan to (i) any Service Provider, as the Committee shall determine
and designate from time to time, and (ii) any other individual whose participation in the Plan is determined to be in the
best interests of the Company by the Committee.

 

		6.2	Limitation
                                         on Shares of Stock Subject to Awards and Cash Awards.

 

During
any time when the Company has a class of equity security registered under Section 12 of the Exchange Act:

 

		(a)	The
                                         maximum number of shares of Stock subject to Options that may be granted under the Plan
                                         in a calendar year to any person eligible for an Award under Section 6 is
                                         one hundred fifty thousand (150,000) shares;

    	14

    	 

    

 

		(b)	The
                                         maximum number of shares of Stock that may be granted under the Plan pursuant to Awards
                                         that are intended to qualify as performance-based compensation under Code Section 162(m),
                                         other than pursuant to Options, in a calendar year to any person eligible for an Award
                                         under Section 6 is one hundred fifty thousand (150,000) shares; and

		(c)	The
                                         maximum amount that may be paid as a cash-settled Performance-Based Award for a Performance
                                         Period of twelve (12) months or less to any person eligible for an Award shall be
                                         one million dollars ($1,000,000.00) and the maximum amount that may be paid as a cash-settled
                                         Performance-Based Award for a Performance Period of greater than twelve (12) months to
                                         any person eligible for an Award shall be one million dollars ($1,000,000.00).

The
preceding limitations in this Section 6.2 are subject to adjustment as provided in Section 16.

 

		6.3	Stand-Alone,
                                         Additional, Tandem, and Substitute Awards.

 

Subject
to Section 3.4, Awards granted under the Plan may, in the discretion of the Committee, be granted either alone or
in addition to, in tandem with, or in substitution or exchange for, (a) any other Award, (b) any award granted under
another plan of the Company, the Bank, an Affiliate, or any business entity that has been a party to a transaction with the Company,
the Bank, or an Affiliate, or (c) any other right of a Grantee to receive payment from the Company, the Bank, or an Affiliate.
Such additional, tandem, substitute, or exchange Awards may be granted at any time. If an Award is granted in substitution or
exchange for another Award, or for an award granted under another plan of the Company, the Bank, an Affiliate, or any business
entity that has been a party to a transaction with the Company, the Bank, or an Affiliate, the Committee shall require the surrender
of such other Award or award under such other plan in consideration for the grant of such substitute or exchange Award. In addition,
Awards may be granted in lieu of cash compensation, including in lieu of cash payments under other plans of the Company or an
Affiliate. Notwithstanding Section 8.1, the Option Price of an Option that is a Substitute Award may be less than
one hundred percent (100%) of the Fair Market Value of a share of Stock on the original Grant Date; provided, that
such Option Price is determined in accordance with the principles of Code Section 424 for any Incentive Stock Option and
consistent with Code Section 409A for any other Option.

 

		7.	AWARD
                                         AGREEMENT

 

Each
Award granted pursuant to the Plan shall be evidenced by an Award Agreement, which shall be in such form or forms as the Committee
shall from time to time determine. Award Agreements employed under the Plan from time to time or at the same time need not contain
similar provisions but shall be consistent with the terms of the Plan. Each Award Agreement evidencing an Award of Options shall
specify whether such Options are intended to be Non-qualified Stock Options or Incentive Stock Options, and in the absence of
such specification, such Options shall be deemed to constitute Non-qualified Stock Options.

    	15

    	 

    

		8.	TERMS
                                         AND CONDITIONS OF OPTIONS

		8.1	Option
                                         Price.

 

The
Option Price of each Option shall be fixed by the Committee and stated in the Award Agreement evidencing such Option. Except in
the case of Substitute Awards, the Option Price of each Option shall be at least the Fair Market Value of one (1) share of
Stock on the Grant Date; provided, that in the event that a Grantee is a Ten Percent Stockholder, the Option Price
of an Option granted to such Grantee that is intended to be an Incentive Stock Option shall be not less than one hundred ten percent
(110%) of the Fair Market Value of one (1) share of Stock on the Grant Date. In no case shall the Option Price of any Option be
less than the par value of a share of Stock.

 

		8.2	Vesting.

 

Subject
to Sections 8.3 and 16.3, each Option granted under the Plan shall become exercisable at such times and under
such conditions as shall be determined by the Committee and stated in the Award Agreement, in another agreement with the Grantee,
or otherwise in writing; provided, that no Option shall be granted to persons who are entitled to overtime under applicable
state or federal laws that will vest or become exercisable within a six (6)-month period starting on the Grant Date.

 

		8.3	Term.

 

Each
Option granted under the Plan shall terminate, and all rights to purchase shares of Stock thereunder shall cease, upon the expiration
of ten (10) years from the Grant Date of such Option, or under such circumstances and on such date prior thereto as is set forth
in the Plan or as may be fixed by the Committee and stated in the Award Agreement relating to such Option; provided, that
in the event that the Grantee is a Ten Percent Stockholder, an Option granted to such Grantee that is intended to be an Incentive
Stock Option shall not be exercisable after the expiration of five (5) years from its Grant Date; and provided, further,
that, to the extent deemed necessary or appropriate by the Committee to reflect differences in local law, tax policy, or custom
with respect to any Option granted to a Grantee who is a foreign national or is a natural person who is employed outside the United
States, such Option may terminate, and all rights to purchase shares of Stock thereunder may cease, upon the expiration of such
period longer than ten (10) years from the Grant Date of such Option as the Committee shall determine.

 

		8.4	Termination
                                         of Service.

 

Each
Award Agreement with respect to the grant of an Option shall set forth the extent to which the Grantee thereof, if at all, shall
have the right to exercise such Option following termination of such Grantee’s Service. Such provisions shall be determined
in the sole discretion of the Committee, need not be uniform among all Options issued pursuant to the Plan, and may reflect distinctions
based on the reasons for termination of Service.

    	16

    	 

    

		8.5	Limitations
                                         on Exercise of Option.

 

Notwithstanding
any other provision of the Plan, in no event may any Option be exercised, in whole or in part, after the occurrence of an event
referred to in Section 16 which results in the termination of such Option.

 

		8.6	Method
                                         of Exercise.

 

Subject
to the terms of Section 10 and Section 17.3, an Option that is exercisable may be exercised by the Grantee’s
delivery to the Company or its designee or agent of notice of exercise on any business day, at the Company’s principal office
or the office of such designee or agent, on the form specified by the Company and in accordance with any additional procedures
specified by the Committee. Such notice shall specify the number of shares of Stock with respect to which such Option is being
exercised and shall be accompanied by payment in full of the Option Price of the shares of Stock for which such Option is being
exercised plus the amount (if any) of federal and/or other taxes which the Company may, in its judgment, be required to withhold
with respect to the exercise of such Option.

 

		8.7	Rights
                                         of Holders of Options.

 

Unless
otherwise stated in the applicable Award Agreement, a Grantee or other person holding or exercising an Option shall have none
of the rights of a stockholder of the Company (for example, the right to receive cash or dividend payments or distributions attributable
to the shares of Stock subject to such Option, to direct the voting of the shares of Stock subject to such Option, or to receive
notice of any meeting of the Company’s stockholders) until the shares of Stock subject thereto are fully paid and issued
to such Grantee or other person. Except as provided in Section 16, no adjustment shall be made for dividends, distributions,
or other rights with respect to any shares of Stock subject to an Option for which the record date is prior to the date of issuance
of such shares of Stock.

 

		8.8	Delivery
                                         of Stock.

 

Promptly
after the exercise of an Option by a Grantee and the payment in full of the Option Price with respect thereto, such Grantee shall
be entitled to receive such evidence of such Grantee’s ownership of the shares of Stock subject to such Option as shall
be consistent with Section 3.7.

 

		8.9	Transferability
                                         of Options.

 

Except
as provided in Section 8.10, during the lifetime of a Grantee of an Option, only such Grantee (or, in the event of
such Grantee’s legal incapacity or incompetency, such Grantee’s guardian or legal representative) may exercise such
Option. Except as provided in Section 8.10, no Option shall be assignable or transferable by the Grantee to whom it
is granted, other than by will or the laws of descent and distribution.

    	17

    	 

    

		8.10	Family
                                         Transfers.

 

If
authorized in the applicable Award Agreement and by the Committee, in its sole discretion, a Grantee may transfer, not for value,
all or part of an Option which is not an Incentive Stock Option to any Family Member. For the purpose of this Section 8.10,
a transfer “not for value” is a transfer which is (a) a gift, (b) a transfer under a domestic relations
order in settlement of marital property rights, or (c) unless Applicable Laws do not permit such transfer, a transfer to
an entity in which more than fifty percent (50%) of the voting interests are owned by Family Members (and/or the Grantee)
in exchange for an interest in such entity. Following a transfer under this Section 8.10, any such Option shall continue
to be subject to the same terms and conditions as were applicable immediately prior to such transfer, and the shares of Stock
acquired pursuant to such Option shall be subject to the same restrictions with respect to transfers of such shares of Stock as
would have applied to the Grantee thereof. Subsequent transfers of transferred Options shall be prohibited except to Family Members
of the original Grantee in accordance with this Section 8.10 or by will or the laws of descent and distribution. The
provisions of Section 8.4 relating to termination of Service shall continue to be applied with respect to the original
Grantee of the Option, following which such Option shall be exercisable by the transferee only to the extent, and for the periods
specified, in Section 8.4.

 

		8.11	Limitations
                                         on Incentive Stock Options.

 

An
Option shall constitute an Incentive Stock Option only (a) if the Grantee of such Option is an Employee of the Company or
any corporate Subsidiary, (b) to the extent specifically provided in the related Award Agreement, and (c) to the extent
that the aggregate Fair Market Value (determined at the time such Option is granted) of the shares of Stock with respect to which
all Incentive Stock Options held by such Grantee become exercisable for the first time during any calendar year (under the Plan
and all other plans of the Company, the Bank, and its Affiliates) does not exceed one hundred thousand dollars ($100,000). Except
to the extent provided in the regulations under Code Section 422, this limitation shall be applied by taking Options into
account in the order in which they were granted.

 

		8.12	Notice
                                         of Disqualifying Disposition.

 

If
any Grantee shall make any disposition of shares of Stock issued pursuant to the exercise of an Incentive Stock Option under the
circumstances provided in Code Section 421(b) (relating to certain disqualifying dispositions), such Grantee shall notify
the Company of such disposition within ten (10) days thereof.

 

		9.	TERMS
                                         AND CONDITIONS OF RESTRICTED STOCK AND STOCK UNITS

		9.1	Grant
                                         of Restricted Stock or Stock Units.

 

Awards
of Restricted Stock and Stock Units may be made for consideration or for no consideration, other than the par value of the shares
of Stock, which shall be deemed paid by past Service or, if so provided in the related Award Agreement or a separate agreement,
the promise by the Grantee to perform future Service to the Company, the Bank, or an Affiliate.

    	18

    	 

    

		9.2	Restrictions.

 

At
the time a grant of Restricted Stock or Stock Units is made, the Committee may, in its sole discretion, (a) establish a period
of time (a “Restricted Period”) applicable to such Restricted Stock or Stock Units and (b) prescribe restrictions
in addition to or other than the expiration of the Restricted Period, including the achievement of corporate or individual performance
goals, which may be applicable to all or any portion of such Restricted Stock or Stock Units as provided in Section 12.
Awards of Restricted Stock and Stock Units may not be sold, transferred, assigned, pledged, or otherwise encumbered or disposed
of during the Restricted Period or prior to the satisfaction of any other restrictions prescribed by the Committee with respect
to such Awards.

 

		9.3	Registration;
                                         Restricted Share Certificates.

 

Pursuant
to Section 3.7, to the extent that ownership of Restricted Stock is evidenced by a book-entry registration or direct
registration (including transaction advices), such registration shall be notated to evidence the restrictions imposed on such
Award of Restricted Stock under the Plan and the applicable Award Agreement. Subject to Section 3.7 and the immediately
following sentence, the Company may issue, in the name of each Grantee to whom Restricted Stock has been granted, share certificates
representing the total number of shares of Restricted Stock granted to the Grantee, as soon as reasonably practicable after the
Grant Date of such Restricted Stock. The Committee may provide in an Award Agreement with respect to an Award of Restricted Stock
that either (a) the Secretary of the Company shall hold such share certificates for such Grantee’s benefit until such
time as such shares of Restricted Stock are forfeited to the Company or the restrictions applicable thereto lapse and such Grantee
shall deliver a stock power to the Company with respect to each share certificate, or (b) such share certificates shall be
delivered to such Grantee; provided, that such share certificates shall bear legends that comply with applicable
securities laws and regulations and make appropriate reference to the restrictions imposed on such Award of Restricted Stock under
the Plan and such Award Agreement.

 

		9.4	Rights
                                         of Holders of Restricted Stock.

 

Unless
the Committee otherwise provides in an Award Agreement, holders of Restricted Stock shall have the right to vote such shares of
Restricted Stock and the right to receive any dividends declared or paid with respect to such shares of Restricted Stock. The
Committee may provide that any dividends paid on Restricted Stock must be reinvested in shares of Stock, which may or may not
be subject to the same vesting conditions and restrictions as the vesting conditions and restrictions applicable to such Restricted
Stock. Dividends paid on Restricted Stock which vests or is earned based upon the achievement of performance goals shall not vest
unless such performance goals for such Restricted Stock are achieved, and if such performance goals are not achieved, the Grantee
of such Restricted Stock shall promptly forfeit and repay to the Company such dividend payments. All stock distributions, if any,
received by a Grantee with respect to Restricted Stock as a result of any stock split, stock dividend, combination of stock, or
other similar transaction shall be subject to the vesting conditions and restrictions applicable to such Restricted Stock.

    	19

    	 

    

 

		9.5	Rights
                                         of Holders of Stock Units.

		9.5.1	Voting
                                         and Dividend Rights.

 

Holders
of Stock Units shall have no rights as stockholders of the Company (for example, the right to receive cash or dividend payments
or distributions attributable to the shares of Stock subject to such Stock Units, to direct the voting of the shares of Stock
subject to such Stock Units, or to receive notice of any meeting of the Company’s stockholders). The Committee may provide
in an Award Agreement evidencing a grant of Stock Units that the holder of such Stock Units shall be entitled to receive, upon
the Company’s payment of a cash dividend on its outstanding shares of Stock, a cash payment for each such Stock Unit which
is equal to the per-share dividend paid on such shares of Stock. Dividends paid on Stock Units which vest or are earned based
upon the achievement of performance goals shall not vest unless such performance goals for such Stock Units are achieved, and
if such performance goals are not achieved, the Grantee of such Stock Units shall promptly forfeit and repay to the Company such
dividend payments. Such Award Agreement also may provide that such cash payment shall be deemed reinvested in additional Stock
Units at a price per unit equal to the Fair Market Value of a share of Stock on the date on which such cash dividend is paid.
Such cash payments paid in connection with Stock Units which vest or are earned based upon the achievement of performance goals
shall not vest unless such performance goals for such Stock Units are achieved, and if such performance goals are not achieved,
the Grantee of such Stock Units shall promptly forfeit and repay to the Company such cash payments.

 

		9.5.2	Creditor’s
                                         Rights.

 

A
holder of Stock Units shall have no rights other than those of a general unsecured creditor of the Company. Stock Units represent
unfunded and unsecured obligations of the Company, subject to the terms and conditions of the applicable Award Agreement.

 

		9.6	Termination
                                         of Service.

 

Unless
the Committee otherwise provides in an Award Agreement, in another agreement with the Grantee, or otherwise in writing after such
Award Agreement is entered into, but prior to termination of Grantee’s Service, upon the termination of such Grantee’s
Service, any Restricted Stock or Stock Units held by such Grantee that have not vested, or with respect to which all applicable
restrictions and conditions have not lapsed, shall immediately be deemed forfeited. Upon forfeiture of such Restricted Stock or
Stock Units, the Grantee thereof shall have no further rights with respect thereto, including any right to vote such Restricted
Stock or any right to receive dividends with respect to such Restricted Stock or Stock Units.

 

		9.7	Purchase
                                         of Restricted Stock and Shares of Stock Subject to Stock Units.

 

The
Grantee of an Award of Restricted Stock or vested Stock Units shall be required, to the extent required by Applicable Laws, to
purchase such Restricted Stock or the shares of Stock subject to such vested Stock Units from the Company at a purchase price
equal to the greater of (x) the aggregate par value of the shares of Stock represented by such Restricted Stock or such vested
Stock Units or (y) the purchase price, if any, specified in the Award Agreement relating to such Restricted Stock or such
vested Stock Units. Such purchase price shall be payable in a form provided in Section 10 or, in the sole discretion
of the Committee, in consideration for Service rendered or to be rendered to the Company, the Bank, or an Affiliate.

    	20

    	 

    

		9.8	Delivery
                                         of Shares of Stock.

 

Upon
the expiration or termination of any Restricted Period and the satisfaction of any other conditions prescribed by the Committee,
including, but not limited to, any delayed delivery period, the restrictions applicable to Restricted Stock or Stock Units settled
in shares of Stock shall lapse, and, unless otherwise provided in the applicable Award Agreement, a book-entry or direct registration
(including transaction advices) or a share certificate evidencing ownership of such shares of Stock shall, consistent with Section 3.7,
be issued, free of all such restrictions, to the Grantee thereof or such Grantee’s beneficiary or estate, as the case may
be. Neither the Grantee, nor the Grantee’s beneficiary or estate, shall have any further rights with regard to a Stock Unit
once the shares of Stock represented by such Stock Unit have been delivered in accordance with this Section 9.8.

 

		10.	TERMS
                                         AND CONDITIONS OF UNRESTRICTED STOCK AWARDS AND OTHER EQUITY-BASED AWARDS

 

10.1.       
Unrestricted Stock Awards.

 

The
Committee may, in its sole discretion, grant (or sell at the par value of a share of Stock or at such other higher purchase price
as shall be determined by the Committee) an Award to any Grantee pursuant to which such Grantee may receive shares of Stock free
of any restrictions (“Unrestricted Stock”) under the Plan. Unrestricted Stock Awards may be granted or sold
to any Grantee as provided in the immediately preceding sentence in respect of past Service or, if so provided in the related
Award Agreement or a separate agreement, the promise by the Grantee to perform future Service, to the Company, the Bank, or an
Affiliate or other valid consideration, or in lieu of, or in addition to, any cash compensation due to such Grantee.

10.2.       
Other Equity-Based Awards.

 

The
Committee may, in its sole discretion, grant Awards in the form of Other Equity-Based Awards, as deemed by the Committee to be
consistent with the purposes of the Plan. Awards granted pursuant to this Section 10.2 may be granted with vesting, value,
and/or payment contingent upon the achievement of one or more performance goals. The Committee shall determine the terms and conditions
of Other Equity-Based Awards at the Grant Date or thereafter. Any dividends paid on Other Equity-Based Awards which vest or are
earned based upon the achievement of performance goals shall not vest unless such performance goals for such Other Equity-Based
Awards are achieved, and if such performance goals are not achieved, the Grantee of such Other Equity-Based Award shall promptly
forfeit and repay to the Company such dividend payments. Unless the Committee otherwise provides in an Award Agreement, in another
agreement with the Grantee, or otherwise in writing after such Award Agreement is issued, upon the termination of a Grantee’s
Service, any Other Equity-Based Awards held by such Grantee that have not vested, or with respect to which all applicable restrictions
and conditions have not lapsed, shall immediately be deemed forfeited. Upon forfeiture of any Other Equity-Based Award, the Grantee
thereof shall have no further rights with respect to such Other Equity-Based Award.

 

    	21

    	 

    

 

		11.	FORM
                                         OF PAYMENT FOR OPTIONS AND RESTRICTED STOCK

		11.1	General
                                         Rule.

 

Payment
of the Option Price for the shares of Stock purchased pursuant to the exercise of an Option or the purchase price, if any, for
Restricted Stock shall be made in cash or in cash equivalents acceptable to the Company.

 

		11.2	Surrender
                                         of Shares of Stock.

 

To
the extent that the applicable Award Agreement so provides, payment of the Option Price for shares of Stock purchased pursuant
to the exercise of an Option or the purchase price, if any, for Restricted Stock may be made all or in part through the tender
or attestation to the Company of shares of Stock, which shall be valued, for purposes of determining the extent to which such
Option Price or purchase price has been paid thereby, at their Fair Market Value on the date of such tender or attestation.

 

		11.3	Cashless
                                         Exercise.

 

To
the extent permitted by Applicable Laws and to the extent the Award Agreement so provides, payment of the Option Price for shares
of Stock purchased pursuant to the exercise of an Option may be made all or in part by delivery (on a form acceptable to the Committee)
of an irrevocable direction to a licensed securities broker acceptable to the Company to sell shares of Stock and to deliver all
or part of the proceeds of such sale to the Company in payment of such Option Price and any withholding taxes described in Section 17.3,
or, with the consent of the Company, by issuing the number of shares of Stock equal in value to the difference between such Option
Price and the Fair Market Value of the shares of Stock subject to the portion of such Option being exercised.

 

		11.4	Other
                                         Forms of Payment.

 

To
the extent the Award Agreement so provides and/or unless otherwise specified in an Award Agreement, payment of the Option Price
for shares of Stock purchased pursuant to exercise of an Option or the purchase price, if any, for Restricted Stock may be made
in any other form that is consistent with Applicable Laws, including (a) Service by the Grantee thereof to the Company, the
Bank, or an Affiliate and (b) by withholding shares of Stock that would otherwise vest or be issuable in an amount equal
to the Option Price or purchase price and the required tax withholding amount.

    	22

    	 

    

		12.	TERMS
                                         AND CONDITIONS OF DIVIDEND EQUIVALENT RIGHTS

12.1.       
Dividend Equivalent Rights.

 

A
Dividend Equivalent Right is an Award entitling the recipient thereof to receive credits based on cash distributions that would
have been paid on the shares of Stock specified in such Dividend Equivalent Right (or other Award to which such Dividend Equivalent
Right relates) if such shares of Stock had been issued to and held by the recipient of such Dividend Equivalent Right as of the
record date. A Dividend Equivalent Right may be granted hereunder to any Grantee; provided, that no Dividend Equivalent
Rights may be granted in connection with, or related to, an Award of Options. The terms and conditions of Dividend Equivalent
Rights shall be specified in the Award Agreement therefor. Dividend equivalents credited to the holder of a Dividend Equivalent
Right may be paid currently (with or without being subject to forfeiture or a repayment obligation) or may be deemed to be reinvested
in additional shares of Stock, which may thereafter accrue additional Dividend Equivalent Rights (with or without being subject
to forfeiture or a repayment obligation). Any such reinvestment shall be at the Fair Market Value thereof on the date of such
reinvestment. Dividend Equivalent Rights may be settled in cash or shares of Stock or a combination thereof, in a single installment
or in multiple installments, all as determined in the sole discretion of the Committee. A Dividend Equivalent Right granted as
a component of another Award may provide that such Dividend Equivalent Right shall be settled upon exercise, settlement, or payment
of, or lapse of restrictions on, such other Award, and that such Dividend Equivalent Right shall expire or be forfeited or annulled
under the same conditions as such other Award. A Dividend Equivalent Right granted as a component of another Award also may contain
terms and conditions which are different from the terms and conditions of such other Award; provided, that, Dividend
Equivalent Rights credited pursuant to a Dividend Equivalent Right granted as a component of another Award which vests or is earned
based upon the achievement of performance goals shall not vest unless such performance goals for such underlying Award are achieved,
and if such performance goals are not achieved, the Grantee of such Dividend Equivalent Rights shall promptly forfeit and repay
to the Company payments made in connection with such Dividend Equivalent Rights.

12.2.       
Termination of Service.

 

Unless
the Committee otherwise provides in an Award Agreement, in another agreement with the Grantee, or otherwise in writing after such
Award Agreement is issued, a Grantee’s rights in all Dividend Equivalent Rights shall automatically terminate upon such
Grantee’s termination of Service for any reason.

 

		13.	TERMS
                                         AND CONDITIONS OF PERFORMANCE-BASED AWARDS

		13.1	Grant
                                         of Performance-Based Awards.

 

Subject
to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant Performance-Based Awards
in such amounts and upon such terms as the Committee shall determine.

    	23

    	 

    

		13.2	Value
                                         of Performance-Based Awards.

 

Each
grant of a Performance-Based Award shall have an actual or target number of shares of Stock or initial value that is established
by the Committee at the time of grant. The Committee shall set performance goals in its discretion which, depending on the extent
to which they are achieved, shall determine the value and/or number of shares of Stock subject to a Performance-Based Award that
will be paid out to the Grantee thereof.

 

		13.3	Earning
                                         of Performance-Based Awards.

 

Subject
to the terms of the Plan, in particular Section 13.6.3, after the applicable Performance Period has ended,
the Grantee of Performance-Based Awards shall be entitled to receive a payout on the number of the Performance-Based Awards or
value earned by such Grantee over such Performance Period.

 

		13.4	Form
                                         and Timing of Payment of Performance-Based Awards.

 

Payment
of earned Performance-Based Awards shall be made in the manner described in the applicable Award Agreement as determined by the
Committee. Subject to the terms of the Plan, the Committee, in its sole discretion, may pay earned Performance-Based Awards in
the form of cash or shares of Stock (or a combination thereof) equal to the value of such earned Performance-Based Awards and
shall pay the Awards that have been earned at the close of the applicable Performance Period, or as soon as reasonably practicable
after the Committee has determined that the performance goal or goals relating thereto have been achieved; provided, that,
unless specifically provided in the Award Agreement for such Awards and to the extent necessary to comply with Section 409A of
the Code, such payment shall occur no later than the fifteenth (15th) day of the third (3rd) month following
the end of the calendar year in which such Performance Period ends. Any shares of Stock paid out under such Performance-Based
Awards may be granted subject to any restrictions deemed appropriate by the Committee. The determination of the Committee with
respect to the form of payout of such Performance-Based Awards shall be set forth in the Award Agreement therefor.

 

		13.5	Performance
                                         Conditions.

 

The
right of a Grantee to exercise or receive a grant or settlement of any Performance-Based Award, and the timing thereof, may be
subject to such performance conditions as may be specified by the Committee. The Committee may use such business criteria and
other measures of performance as it may deem appropriate in establishing any performance conditions. If and to the extent required
under Code Section 162(m), any power or authority relating to an Award intended to qualify under Code Section 162(m)
shall be exercised by the Committee and not by the Board.

 

		13.6	Performance-Based
                                         Awards Granted to Designated Covered Employees.

 

If
and to the extent that the Committee determines that a Performance-Based Award to be granted to a Grantee should constitute “qualified
performance-based compensation” for purposes of Code Section 162(m), the grant, exercise, and/or settlement of such
Award shall be contingent upon achievement of pre-established performance goals and other terms set forth in this Section 13.6.

    	24

    	 

    

		13.6.1	Performance
                                         Goals Generally.

 

The
performance goals for Performance-Based Awards shall consist of one (1) or more business criteria and a targeted level or levels
of performance with respect to each of such criteria, as specified by the Committee consistent with this Section 13.6.
Performance goals shall be objective and shall otherwise meet the requirements of Code Section 162(m), including the requirement
that the level or levels of performance targeted by the Committee result in the achievement of performance goals being “substantially
uncertain.” The Committee may determine that such Awards shall be granted, exercised, and/or settled upon achievement of
any single performance goal or of two (2) or more performance goals. Performance goals may differ for Awards granted to any
one Grantee or to different Grantees.

 

		13.6.2	Timing
                                         for Establishing Performance Goals.

 

Performance
goals for any Performance-Based Award shall be established not later than the earlier of (a) ninety (90) days after the beginning
of any Performance Period applicable to such Award, and (b) the date on which twenty-five percent (25%) of any Performance
Period applicable to such Award has expired, or at such other date as may be required or permitted for compensation payable to
a Covered Employee to constitute Performance-Based Compensation.

 

		13.6.3	Payment
                                         of Awards; Other Terms.

 

Payment
of Performance-Based Awards shall be in cash, shares of Stock, or other Awards, including an Award that is subject to additional
Service-based vesting, as determined in the sole discretion of the Committee. The Committee may, in its sole discretion, reduce
the amount of a payment otherwise to be made in connection with such Awards. The Committee shall specify the circumstances in
which such Performance-Based Awards shall be paid or forfeited in the event of termination of Service by the Grantee prior to
the end of a Performance Period or settlement of such Awards. In the event payment of the Performance-Based Award is made in the
form of another Award subject to Service-based vesting, the Committee shall specify the circumstances in which the payment Award
will be paid or forfeited in the event of a termination of Service.

 

		13.6.4	Performance
                                         Measures.

 

The
performance goals upon which the payment or vesting of a Performance-Based Award to a Covered Employee that is intended to qualify
as Performance-Based Compensation may be conditioned shall be limited to the following Performance Measures, with or without adjustment:

 

	 	(a)	net earnings or net income; 
	 	 	 
	 	(b)	operating earnings; 

 

    	25

    	 

    

 

	 	(c)	pretax earnings; 
	 	 	 
	 	(d)	earnings per share; 
	 	 	 
	 	(e)	share price, including growth measures and total stockholder return; 
	 	 	 
	 	(f)	earnings before interest and taxes; 
	 	 	 
	 	(g)	earnings before interest, taxes, depreciation and/or amortization; 
	 	 	 
	 	(h)	earnings before interest, taxes, depreciation and/or amortization, as adjusted to exclude any one or more of the following: 
	 	 	 
	 	 	•	stock-based compensation expense; 
	 	 	 	 
	 	 	•	income from discontinued operations; 
	 	 	 	 
	 	 	•	gain on cancellation of debt; 
	 	 	 	 
	 	 	• 	debt extinguishment and related costs; 
	 	 	 	 
	 	 	•	restructuring, separation, and/or integration charges and costs; 
	 	 	 	 
	 	 	• 	reorganization and/or recapitalization charges and costs; 
	 	 	 	 
	 	 	•	impairment charges; 
	 	 	 	 
	 	 	• 	gain or loss related to investments; 
	 	 	 	 
	 	 	•	sales and use tax settlement; and 
	 	 	 	 
	 	 	• 	gain on non-monetary transactions; 
	 	 	 	 
	 	(i)	sales or revenue growth, whether in general, by type of product or service, or by type of customer; 
	 	 	 
	 	(j)	gross or operating margins; 
	 	 	 
	 	(k)	return measures, including return on assets, capital, investment, equity, sales, or revenue; 
	 	 	 
	 	(l)	cash flow, including: 
	 	 	 
	 	 	•	operating cash flow; 
	 	 	 	 
	 

                                     
	 	• 	free cash flow, defined as earnings before interest, taxes, depreciation, and/or amortization (as adjusted to exclude any one or more of the items that may be excluded pursuant to the Performance Measure specified in clause (h) above) less capital expenditures; 
	 	 	 	 
	 	 	•	levered free cash flow, defined as free cash flow less interest expense; 
	 	 	 	 
	 	 	• 	cash flow return on equity; and 
	 	 	 	 
	 	 	•	cash flow return on investment; 

 

    	26

    	 

    

 

	 	(m)	productivity ratios; 
	 	 	 
	 	(n)	expense targets; 
	 	 	 
	 	(o)	market share; 
	 	 	 
	 	(p) 	financial ratios as provided in credit agreements of the Company and its subsidiaries; 
	 	 	 
	 	(q)	working capital targets; 
	 	 	 
	 	(r)	completion of acquisitions of businesses or companies; 
	 	 	 
	 	(s)	completion of divestitures and asset sales; 
	 	 	 
	 	(t)	customer satisfaction; or 
	 	 	 
	 	(u)	any combination of the foregoing business criteria. 

 

Performance
under any of the foregoing Performance Measures (a) may be used to measure the performance of (i) the Company, the Bank,
Subsidiaries of the Company and the Bank, and other Affiliates as a whole, (ii) the Company, the Bank, any Subsidiary, and/or
any other Affiliate, or any combination thereof, or (iii) any one or more business units of the Company, the Bank, any Subsidiary,
and/or any other Affiliate, as the Committee, in its sole discretion, deems appropriate and (b) may be compared to the performance
of one or more other companies or one or more published or special indices designated or approved by the Committee for such comparison,
as the Committee, in its sole discretion, deems appropriate. In addition, the Committee, in its sole discretion, may select performance
under the Performance Measure specified in clause (e) above for comparison to performance under one or more stock market
indices designated or approved by the Committee. The Committee also shall have the authority to provide for accelerated vesting
of any Performance-Based Award based on the achievement of performance goals pursuant to the Performance Measures specified in
this Section 13.

 

		13.6.5	Evaluation
                                         of Performance.

 

The
Committee may provide in any Performance-Based Award that any evaluation of performance may include or exclude any of the following
events that occur during a Performance Period: (a) asset write-downs; (b) litigation or claims, judgments, or settlements;
(c) the effect of changes in tax laws, accounting principles, or other laws or provisions affecting reported results; (d) any
reorganization or restructuring events or programs; (e) extraordinary, non-core, non-operating, or non-recurring items; (f) acquisitions
or divestitures; (g) foreign exchange gains and losses; (h) tax valuation allowance reversals; (i) impairment expense; and
(j) environmental expense. To the extent such inclusions or exclusions affect Awards to Covered Employees that are intended to
qualify as Performance-Based Compensation, such inclusions or exclusions shall be prescribed in a form that meets the requirements
of Code Section 162(m) for deductibility.

 

    	27

    	 

    

		13.6.6	Adjustment
                                         of Performance-Based Compensation.

 

The
Committee shall have the sole discretion to adjust Awards that are intended to qualify as Performance-Based Compensation, either
on a formula or discretionary basis, or on any combination thereof, as the Committee determines consistent with the requirements
of Code Section 162(m) for deductibility.

 

		13.6.7	Committee
                                         Discretion.

 

In
the event that Applicable Laws change to permit Committee discretion to alter the governing Performance Measures without obtaining
stockholder approval of such changes, the Committee shall have sole discretion to make such changes without obtaining stockholder
approval; provided, that the exercise of such discretion shall not be inconsistent with the requirements of Code Section 162(m).
In addition, in the event that the Committee determines that it is advisable to grant Awards that shall not qualify as Performance-Based
Compensation, the Committee may make such grants without satisfying the requirements of Code Section 162(m) and base vesting
on Performance Measures other than those set forth in Section 13.6.4.

 

		13.7	Status
                                         of Awards Under Code Section 162(m).

 

It
is the intent of the Company that Performance-Based Awards under Section 13.6 granted to persons who are designated
by the Committee as likely to be Covered Employees within the meaning of Code Section 162(m) and the regulations promulgated
thereunder shall, if so designated by the Committee, constitute “qualified performance-based compensation” within
the meaning of Code Section 162(m). Accordingly, the terms of Section 13.6, including the definitions of Covered
Employee and other terms used therein, shall be interpreted in a manner consistent with Code Section 162(m). If any provision
of the Plan or any agreement relating to any such Performance-Based Award does not comply or is inconsistent with the requirements
of Code Section 162(m), such provision shall be construed or deemed amended to the extent necessary to conform to such requirements.

 

		14.	PARACHUTE
                                         LIMITATIONS

 

If
any Grantee is a “disqualified individual,” as defined in Code Section 280G(c), then, notwithstanding any other
provision of the Plan or of any other agreement, contract, or understanding heretofore or hereafter entered into by such Grantee
with the Company, the Bank, or an Affiliate, except an agreement, contract, or understanding that expressly addresses Code Section 280G
or Code Section 4999 (an “Other Agreement”), and notwithstanding any formal or informal plan or other
arrangement for the direct or indirect provision of compensation to the Grantee (including groups or classes of Grantees or beneficiaries
of which the Grantee is a member), whether or not such compensation is deferred, is in cash, or is in the form of a benefit to
or for the Grantee (a “Benefit Arrangement”), any right of the Grantee to any exercise, vesting, payment, or
benefit under the Plan shall be reduced or eliminated:

    	28

    	 

    

		(a)	to
                                         the extent that such right to exercise, vesting, payment, or benefit, taking into account
                                         all other rights, payments, or benefits to or for the Grantee under the Plan, all Other
                                         Agreements, and all Benefit Arrangements, would cause any exercise, vesting, payment,
                                         or benefit to the Grantee under the Plan to be considered a “parachute payment”
                                         within the meaning of Code Section 280G(b)(2) as then in effect (a “Parachute
                                         Payment”); and

		(b)	if,
                                         as a result of receiving such Parachute Payment, the aggregate after-tax amounts received
                                         by the Grantee from the Company under the Plan, all Other Agreements, and all Benefit
                                         Arrangements would be less than the maximum after-tax amount that could be received by
                                         the Grantee without causing any such payment or benefit to be considered a Parachute
                                         Payment.

The
Company shall accomplish such reduction by first reducing or eliminating any cash payments (with the payments to be made furthest
in the future being reduced first), then by reducing or eliminating any accelerated vesting of Performance-Based Awards, then
by reducing or eliminating any accelerated vesting of Options, then by reducing or eliminating any accelerated vesting of Restricted
Stock or Stock Units, then by reducing or eliminating any other remaining Parachute Payments.

 

		15.	REQUIREMENTS
                                         OF LAW

		15.1	General.

 

The
Company shall not be required to offer, sell, or issue any shares of Stock under any Award, whether pursuant to the exercise of
an Option or otherwise, if the offer, sale, or issuance of such shares of Stock would constitute a violation by the Grantee, the
Company, the Bank, or an Affiliate, or any other person, of any provision of Applicable Laws, including any federal or state securities
laws or regulations. If at any time the Company shall determine, in its discretion, that the listing, registration, or qualification
of any shares of Stock subject to an Award upon any securities exchange or under any governmental regulatory body is necessary
or desirable as a condition of, or in connection with, the offering, issuance, sale, or purchase of shares of Stock in connection
with any Award, no shares of Stock may be offered, issued, or sold to the Grantee or any other person under such Award, whether
pursuant to the exercise of an Option or otherwise, unless such listing, registration, or qualification shall have been effected
or obtained free of any conditions not acceptable to the Company, and any delay caused thereby shall in no way affect the date
of termination of such Award. Without limiting the generality of the foregoing, upon the exercise of any Option that may be settled
in shares of Stock or the delivery of any shares of Stock underlying an Award, unless a registration statement under the Securities
Act is in effect with respect to the shares of Stock subject to such Award, the Company shall not be required to offer, sell,
or issue such shares of Stock unless the Committee shall have received evidence satisfactory to it that the Grantee or any other
person exercising such Option or accepting delivery of such shares may acquire such shares of Stock pursuant to an exemption from
registration under the Securities Act. Any determination in this connection by the Committee shall be final, binding, and conclusive.
The Company may register, but shall in no event be obligated to register, any shares of Stock or other securities issuable pursuant
to the Plan pursuant to the Securities Act. The Company shall not be obligated to take any affirmative action in order to cause
the exercise of an Option or the issuance of shares of Stock or other securities issuable pursuant to the Plan or any Award to
comply with any Applicable Laws. As to any jurisdiction that expressly imposes the requirement that an Option that may be settled
in shares of Stock shall not be exercisable until the shares of Stock subject to such Option are registered under the securities
laws thereof or are exempt from such registration, the exercise of such Option under circumstances in which the laws of such jurisdiction
apply shall be deemed conditioned upon the effectiveness of such registration or the availability of such an exemption.

    	29

    	 

    

		15.2	Rule
                                         16b-3.

 

During
any time when the Company has a class of equity security registered under Section 12 of the Exchange Act, it is the intention
of the Company that Awards pursuant to the Plan and the exercise of Options granted hereunder that would otherwise be subject
to Section 16(b) of the Exchange Act shall qualify for the exemption provided by Rule 16b-3 under the Exchange Act.
To the extent that any provision of the Plan or action by the Committee does not comply with the requirements of such Rule 16b-3,
such provision or action shall be deemed inoperative with respect to such Awards to the extent permitted by Applicable Laws and
deemed advisable by the Committee and shall not affect the validity of the Plan. In the event that such Rule 16b-3 is revised
or replaced, the Board may exercise its discretion to modify the Plan in any respect necessary or advisable in its judgment to
satisfy the requirements of, or to permit the Company to avail itself of the benefits of, the revised exemption or its replacement.

 

		16.	EFFECT
                                         OF CHANGES IN CAPITALIZATION

		16.1	Changes
                                         in Stock.

 

If
the number of outstanding shares of Stock is increased or decreased or the shares of Stock are changed into or exchanged for a
different number of shares or kind of Capital Stock or other securities of the Company on account of any recapitalization, reclassification,
stock split, reverse stock split, spin-off, combination of stock, exchange of stock, stock dividend, or other distribution payable
in Capital Stock, or other increase or decrease in shares of Stock effected without receipt of consideration by the Company occurring
after the Effective Date, the number and kinds of shares of stock for which grants of Options and other Awards may be made under
the Plan, including the share limits set forth in Section 6.2, shall be adjusted proportionately and accordingly by
the Committee. In addition, the number and kind of shares of Stock for which Awards are outstanding shall be adjusted proportionately
and accordingly by the Committee so that the proportionate interest of the Grantee therein immediately following such event shall,
to the extent practicable, be the same as immediately before such event. Any such adjustment in outstanding Options shall not
change the aggregate Option Price payable with respect to shares that are subject to the unexercised portion of such outstanding
Options but shall include a corresponding proportionate adjustment in the per share Option Price. The conversion of any convertible
securities of the Company shall not be treated as an increase in shares effected without receipt of consideration. Notwithstanding
the foregoing, in the event of any distribution to the Company’s stockholders of securities of any other entity or other
assets (including an extraordinary dividend, but excluding a non-extraordinary dividend, declared and paid by the Company) without
receipt of consideration by the Company, the Board, or the Committee constituted pursuant to Section 3.1.2 shall,
in such manner as the Board or the Committee deems appropriate, adjust (a) the number and kind of shares of Stock subject
to outstanding Awards and/or (b) the aggregate and per share Option Price of outstanding Options as required to reflect such
distribution.

    	30

    	 

    

		16.2	Reorganization
                                         in Which the Company Is the Surviving Entity Which Does Not Constitute a Change in Control.

 

Subject
to Section 16.3, if the Company shall be the surviving entity in any reorganization, merger, or consolidation of the
Company with one or more other entities which does not constitute a Change in Control, any Option theretofore granted pursuant
to the Plan shall pertain to and apply to the securities to which a holder of the number of shares of Stock subject to such Option
would have been entitled immediately following such reorganization, merger, or consolidation, with a corresponding proportionate
adjustment of the per share Option Price so that the aggregate Option Price thereafter shall be the same as the aggregate Option
Price of the shares of Stock remaining subject to the Option as in effect immediately prior to such reorganization, merger, or
consolidation. Subject to any contrary language in an Award Agreement or in another agreement with the Grantee, or otherwise set
forth in writing, any restrictions applicable to such Award shall apply, as well to any replacement shares received by the Grantee
as a result of such reorganization, merger, or consolidation. In the event of any reorganization, merger, or consolidation of
the Company referred to in this Section 16.2, Performance-Based Awards shall be adjusted (including any adjustment
to the Performance Measures applicable to such Awards deemed appropriate by the Committee) so as to apply to the securities that
a holder of the number of shares of Stock subject to the Performance-Based Awards would have been entitled to receive immediately
following such reorganization, merger, or consolidation.

 

		16.3	Change
                                         in Control in which Awards are not Assumed.

 

Except
as otherwise provided in the applicable Award Agreement, in another agreement with the Grantee, or as otherwise set forth in writing,
upon the occurrence of a Change in Control in which outstanding Options, Restricted Stock, Stock Units, Dividend Equivalent Rights,
or Other Equity-Based Awards are not being assumed or continued, the following provisions shall apply to such Award, to the extent
not assumed or continued:

 

		(a)	in
                                         each case with the exception of Performance-Based Awards, all outstanding Restricted
                                         Stock shall be deemed to have vested, all Stock Units shall be deemed to have vested,
                                         and the shares of Stock subject thereto shall be delivered, and all Dividend Equivalent
                                         Rights shall be deemed to have vested, and the shares of Stock (if any) subject thereto
                                         shall be delivered, immediately prior to the occurrence of such Change in Control, and
                                         either or both of the following two (2) actions shall be taken:

    	31

    	 

    

  

		(i)	fifteen
                                         (15) days prior to the scheduled consummation of such Change in Control, all Options
                                         outstanding hereunder shall become immediately exercisable and shall remain exercisable
                                         for a period of fifteen (15) days, which exercise shall be effective upon such consummation;
                                         or

		(ii)	the
                                         Committee may elect, in its sole discretion, to cancel any outstanding Awards of Options,
                                         Restricted Stock, Stock Units, and/or Dividend Equivalent Rights and pay or deliver,
                                         or cause to be paid or delivered, to the holder thereof an amount in cash or securities
                                         having a value (as determined by the Committee acting in good faith), in the case of
                                         Restricted Stock or Stock Units and Dividend Equivalent Rights (for shares of Stock subject
                                         thereto), equal to the formula or fixed price per share paid to holders of shares of
                                         Stock pursuant to such Change in Control and, in the case of Options, equal to the product
                                         of the number of shares of Stock subject to such Options (the “Award Stock”)
                                         multiplied by the amount, if any, by which (x) the formula or fixed price per share
                                         paid to holders of shares of Stock pursuant to such transaction exceeds (y) the
                                         Option Price applicable to such Award Stock.

		(b)	Performance-Based
                                         Awards shall be treated as though target performance has been achieved and will be paid
                                         in cash or converted into Unrestricted Stock. After application of this Section 16.3(b),
                                         if any Awards arise from application of this Section 16, such Awards shall
                                         be settled under the applicable provision of Section 16.3(a).

		(c)	Other
                                         Equity-Based Awards shall be governed by the terms of the applicable Award Agreement.

 

With
respect to the Company’s establishment of an exercise window, (A) any exercise of an Option during the fifteen (15)-day
period referred to above shall be conditioned upon the consummation of the applicable Change in Control and shall be effective
only immediately before the consummation thereof, and (B) upon consummation of any Change in Control, the Plan and all outstanding
but unexercised Options shall terminate. The Committee shall send notice of an event that shall result in such a termination to
all natural persons and entities who hold Options not later than the time at which the Company gives notice thereof to its stockholders. 

 

		16.4	Change
                                         in Control in which Awards are Assumed.

 

Except
as otherwise provided in the applicable Award Agreement, in another agreement with the Grantee, or as otherwise set forth in writing,
upon the occurrence of a Change in Control in which outstanding Options, Restricted Stock, Stock Units, Dividend Equivalent Rights,
or Other Equity-Based Awards are being assumed or continued, the following provisions shall apply to such Award, to the extent
assumed or continued:

 

    	32

    	 

    

The
Plan and the Options, Restricted Stock, Stock Units, Dividend Equivalent Rights, and Other Equity-Based Awards granted under the
Plan shall continue in the manner and under the terms so provided in the event of any Change in Control to the extent that provision
is made in writing in connection with such Change in Control for the assumption or continuation of such Options, Restricted Stock,
Stock Units, Dividend Equivalent Rights, and Other Equity-Based Awards, or for the substitution for such Options, Restricted Stock,
Stock Units, Dividend Equivalent Rights, and Other Equity-Based Awards of new common stock options, stock appreciation rights,
restricted stock, common stock units, dividend equivalent rights, and other equity-based awards relating to the stock of a successor
entity, or a parent or subsidiary thereof, with appropriate adjustments as to the number of shares (disregarding any consideration
that is not common stock) and option and stock appreciation rights exercise prices. In the event an Award is assumed, continued,
or substituted upon the consummation of any Change in Control and the employment of such Grantee with the Company or an Affiliate
is terminated without Cause within one (1) year following the consummation of such Change in Control, such Award shall be fully
vested and may be exercised in full, to the extent applicable, beginning on the date of such termination and for the one (1)-year
period immediately following such termination or for such longer period as the Committee shall determine.

 

		16.5	Adjustments

 

Adjustments
under this Section 16 related to shares of Stock or other securities of the Company shall be made by the Committee,
whose determination in that respect shall be final, binding, and conclusive. No fractional shares or other securities shall be
issued pursuant to any such adjustment, and any fractions resulting from any such adjustment shall be eliminated in each case
by rounding downward to the nearest whole share. The Committee may provide in the applicable Award Agreement at the time of grant,
in another agreement with the Grantee, or otherwise in writing at any time thereafter with the consent of the Grantee, for different
provisions to apply to an Award in place of those provided in Sections 16.1, 16.2, 16.3, and
16.4. This Section 16 shall not limit the Committee’s ability to provide for alternative treatment of
Awards outstanding under the Plan in the event of a change in control event involving the Company, the Bank, or an Affiliate that
is not a Change in Control.

 

		16.6	No
                                         Limitations on Company.

 

The
making of Awards pursuant to the Plan shall not affect or limit in any way the right or power of the Company to make adjustments,
reclassifications, reorganizations, or changes of its capital or business structure or to merge, consolidate, dissolve, or liquidate,
or to sell or transfer all or any part of its business or assets (including all or any part of the business or assets of any Subsidiary
or other Affiliate) or engage in any other transaction or activity.

    	33

    	 

    

		17.	GENERAL
                                         PROVISIONS

		17.1	Disclaimer
                                         of Rights.

 

No
provision in the Plan or in any Award or Award Agreement shall be construed to confer upon any individual the right to remain
in the employ or Service of the Company, the Bank, or an Affiliate, or to interfere in any way with any contractual or other right
or authority of the Company, the Bank, or an Affiliate either to increase or decrease the compensation or other payments to any
natural person or entity at any time, or to terminate any employment or other relationship between any natural person or entity
and the Company, the Bank, or an Affiliate. In addition, notwithstanding anything contained in the Plan to the contrary, unless
otherwise stated in the applicable Award Agreement, in another agreement with the Grantee, or otherwise in writing, no Award granted
under the Plan shall be affected by any change of duties or position of the Grantee thereof, so long as such Grantee continues
to provide Service. The obligation of the Company to pay any benefits pursuant to the Plan shall be interpreted as a contractual
obligation to pay only those amounts provided herein, in the manner and under the conditions prescribed herein. The Plan and Awards
shall in no way be interpreted to require the Company to transfer any amounts to a third-party trustee or otherwise hold any amounts
in trust or escrow for payment to any Grantee or beneficiary under the terms of the Plan.

 

		17.2	Nonexclusivity
                                         of the Plan.

 

 Neither
the adoption of the Plan nor the submission of the Plan to the stockholders of the Company for approval shall be construed as
creating any limitations upon the right and authority of the Board to adopt such other incentive compensation arrangements (which
arrangements may be applicable either generally to a class or classes of individuals or specifically to a particular individual
or particular individuals) as the Board in its discretion determines desirable.

 

		17.3	Withholding
                                         Taxes.

 

The
Company, the Bank, or an Affiliate, as the case may be, shall have the right to deduct from payments of any kind otherwise due
to a Grantee any federal, state, or local taxes of any kind required by law to be withheld with respect to the vesting of or other
lapse of restrictions applicable to an Award or upon the issuance of any shares of Stock upon the exercise of an Option or pursuant
to any other Award. At the time of such vesting, lapse, or exercise, the Grantee shall pay in cash to the Company, the Bank, or
an Affiliate, as the case may be, any amount that the Company, the Bank, or such Affiliate may reasonably determine to be necessary
to satisfy such withholding obligation; provided, that if there is a same-day sale of shares of Stock subject to
an Award, the Grantee shall pay such withholding obligation on the day on which such same-day sale is completed. Subject to the
prior approval of the Company, the Bank, or an Affiliate, which may be withheld by the Company, the Bank, or such Affiliate, as
the case may be, in its sole discretion, the Grantee may elect to satisfy such withholding obligation, in whole or in part, (a) by
causing the Company, the Bank, or such Affiliate to withhold shares of Stock otherwise issuable to the Grantee or (b) by
delivering to the Company, the Bank, or such Affiliate shares of Stock already owned by the Grantee. The shares of Stock so withheld
or delivered shall have an aggregate Fair Market Value equal to such withholding obligation. The Fair Market Value of the shares
of Stock used to satisfy such withholding obligation shall be determined by the Company, the Bank, or such Affiliate as of the
date on which the amount of tax to be withheld is to be determined. A Grantee who has made an election pursuant to this Section 17.3
may satisfy such Grantee’s withholding obligation only with shares of Stock that are not subject to any repurchase,
forfeiture, unfulfilled vesting, or other similar requirements. The maximum number of shares of Stock that may be withheld from
any Award to satisfy any federal, state, or local tax withholding requirements upon the exercise, vesting, or lapse of restrictions
applicable to any Award or payment of shares of Stock pursuant to such Award, as applicable, may not exceed such number of shares
of Stock having a Fair Market Value equal to the minimum statutory amount required by the Company, the Bank, or the applicable
Affiliate to be withheld and paid to any such federal, state, or local taxing authority with respect to such exercise, vesting,
lapse of restrictions, or payment of shares of Stock. Notwithstanding Section 2.22 or this Section 17.3,
for purposes of determining taxable income and the amount of the related tax withholding obligation pursuant to this Section 17.3,
for any shares of Stock subject to an Award that are sold by or on behalf of a Grantee on the same date on which such shares may
first be sold pursuant to the terms of the related Award Agreement, the Fair Market Value of such shares shall be the sale price
of such shares on such date (or if sales of such shares are effectuated at more than one sale price, the weighted average sale
price of such shares on such date), so long as such Grantee has provided the Company, or its designee or agent, with advance written
notice of such sale. In such case, the percentage of shares of Stock withheld shall equal the applicable minimum withholding rate.

 

    	34

    	 

    

		17.4	Captions.

 

The
use of captions in the Plan or any Award Agreement is for convenience of reference only and shall not affect the meaning of any
provision of the Plan or such Award Agreement.

 

		17.5	Construction.

 

Unless
the context otherwise requires, all references in the Plan to “including” shall mean “including without limitation.”

 

		17.6	Other
                                         Provisions.

 

Each
Award granted under the Plan may contain such other terms and conditions not inconsistent with the Plan as may be determined by
the Committee, in its sole discretion.

 

		17.7	Number
                                         and Gender.

 

With
respect to words used in the Plan, the singular form shall include the plural form, and the masculine gender shall include the
feminine gender, as the context requires.

    	35

    	 

    

		17.8	Severability.

If
any provision of the Plan or any Award Agreement shall be determined to be illegal or unenforceable by any court of law in any
jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and
all provisions shall remain enforceable in any other jurisdiction.

 

		17.9	Governing
                                         Law.

The
validity and construction of the Plan and the instruments evidencing the Awards hereunder shall be governed by, and construed
and interpreted in accordance with, the laws of the Commonwealth of Massachusetts other than any conflicts or choice of law rule
or principle that might otherwise refer construction or interpretation of the Plan and the instruments evidencing the Awards granted
hereunder to the substantive laws of any other jurisdiction.

 

		17.10	Section 409A
                                         of the Code.

The
Plan is intended to comply with Code Section 409A to the extent subject thereto, and, accordingly, to the maximum extent permitted,
the Plan will be interpreted and administered to be in compliance with Code Section 409A. Any payments described in the Plan that
are due within the “short-term deferral period” as defined in Code Section 409A will 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 Code Section 409A, 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 Grantee’s termination
of “separation from service” (as defined for purposes of Code Section 409A) will instead be paid on the first payroll
date after the six (6)-month anniversary of the Grantee’s separation from service (or the Grantee’s death, if earlier).

Further,
notwithstanding anything to the contrary in the Plan, in the case of an Award that is characterized as deferred compensation under
Code Section 409A, and pursuant to which settlement and delivery of the cash or Common Shares subject to the Award is triggered
based on a Change in Control, in no event will a Change in Control be deemed to have occurred for purposes of such settlement
and delivery of cash or Stock if the transaction is not also a “change in the ownership or effective control of” the
Company or “a change in the ownership of a substantial portion of the assets of” the Company as determined under Treasury
Regulation Section 1.409A-3(i)(5) (without regard to any alternative definition thereunder). If an Award characterized as deferred
compensation under Code Section 409A is not settled and delivered on account of the provision of the preceding sentence,
the settlement and delivery will occur on the next succeeding settlement and delivery triggering event that is a permissible triggering
event under Code Section 409A. No provision of this paragraph will in any way affect the determination of a Change in Control
for purposes of vesting in an Award that is characterized as deferred compensation under Code Section 409A.

Notwithstanding
the foregoing, neither the Company, the Bank, any Affiliate nor the Committee will have any obligation to take any action to prevent
the assessment of any excise tax or penalty on any Grantee under Section 409A of the Code and neither the Company, the Bank, any
Affiliate nor the Committee will have any liability to any Grantee for such tax or penalty. 

 

*    *    *

 

    	36

    	 

    

To
record adoption of the Plan by the Board as of February 26, 2014,
and approval of the Plan by the stockholders on May 15, 2014, the Company has caused its authorized officer to execute
the Plan.

 

	 	WESTFIELD FINANCIAL,
    INC.
	 	 	 
	 	By:	/s/
    Gerald P. Ciejka
	 	Name:	Gerald P. Ciejka
	 	Title: 	Vice President and General Counsel

 

    	37ex101.htm

Exhibit 10.1

$91,000.00 (U.S.)                                                                                              

 Dated:  April 1, 2014

PROMISSORY NOTE

FOR VALUE RECEIVED, PMI Construction Group, Inc. (“Maker” or the "Company"), promises to pay to Banyan Investment Company, LLC (“Holder”), or order, Forty Six Thousand Dollars ($91,000.00).

Premises

The Holder and the Company are entering into this note to consolidate the prior loans set forth below.  The consolidation would include both principal and accrued interests.  The notes being consolidated are:

	
Date of Note

	
Original Principal

	
Accrued Interest

	
December 31, 2008

	
$55,000

	
$30,688

	
March 12, 2014

	
$31,000

	
$2,338

	
April 17, 2014

	
$5,000

	
$0

AGREEMENT

NOW, THEREFORE, in consideration of the mutual covenants of the parties, and for other good and valuable consideration, the receipt and sufficiency

1.           Note Consolidation. The above listed notes, which are incorporated herein by this reference, and their principal and accrued interest are hereby consolidated into this one master note on the terms and conditions set forth herein.

2.           Payments.  The principal on the obligation represented hereby shall be repaid in full on demand or the merger, reorganization or acquisition between the Company and another corporation or entity that has operations, through a lump sum payment of interest and principal.  All payments shall first be made to interest and then to a reduction of principal.

3.           Interest.  The obligation shall bear simple interest at the rate of seven and one half percent (7 1/2 %) per annum.

4.           Type and place of Payments.  Payment of principal and interest shall be made in lawful money of the United States of America to the above named holder at its offices in Salt Lake City, Utah, or order.

5.           Prepayment.  Advance payment or payments may be made on the principal and interest, without penalty or forfeiture.  There shall be no penalty for any prepayment.

6.           Default.  Upon the occurrence or during the continuance of any one or more of the events hereinafter enumerated, Holder or the holder of this Note may forthwith or at any time thereafter during the continuance of any such event, by notice in writing to the Maker, declare the unpaid balance of the principal and interest on the Note to be immediately due and payable, and the principal and interest shall become and shall be immediately due and payable without presentation, demand, protest, notice of protest, or other notice of dishonor, all of which are hereby expressly waived by Maker, such events being as follows:

 

 

  

1

  

(a)           Default in the payment of the principal and interest of this Note or any portion thereof when the same shall become due and payable, whether at maturity as herein expressed, by acceleration, or otherwise, unless cured within five (5) days after notice thereof by Holder or the holder of such Note to Maker;

(b)           Maker shall file a voluntary petition in bankruptcy or a voluntary petition seeking reorganization, or shall file an answer admitting the jurisdiction of the court and any material allegations of an involuntary petition filed pursuant to any act of Congress relating to bankruptcy or to any act purporting to be amendatory thereof, or shall be adjudicated bankrupt, or shall make an assignment for the benefit of creditors, or shall apply for or consent to the appointment of any receiver or trustee for Maker, or of all or any substantial portion of its property, or Maker shall make an assignment to any agent authorized to liquidate any substantial part of its assets; or

(c)           An order shall be entered pursuant to any act of Congress relating to bankruptcy or to any act purporting to be amendatory thereof approving an involuntary petition seeking reorganization of the Maker, or an order of any court shall be entered appointing any receiver or trustee of or for Maker, or any receiver or trustee of all or any substantial portion of the property of Maker, or a writ or warrant of attachment or any similar process shall be issued by any court against all or any substantial portion of the property of Maker, and such order approving a petition seeking reorganization or appointing a receiver or trustee is not vacated or stayed, or such writ, warrant of attachment, or similar process is not released  or bonded within 60 days after its entry or levy.

7.           Conversion.  Subject to, and in compliance with, the provisions contained herein, the Holder of the Notes, or its assigns is entitled, at its or his option, at any time prior to maturity of the Note, or in case this Note or some portion hereof shall have been called for prepayment or considered in default as defined in the Note, then, in respect of this Note or such portion hereof, to convert this Note (or any portion of the principal amount hereof), into validly issued, fully paid and nonassessable shares (calculated as to each conversion to the nearest share) of common stock, par value $0.001 per share, of the Company, (the “Common Stock” or “Shares”) at the rate of one Share for each one cent ($0.01) of principal and accrued but unpaid interest of the Note (“Conversion Price”), subject to such adjustment in such conversion price, if any, as may be required by the provisions of this Note, by surrender of this Note, duly endorsed (if so required by the Company) or assigned to the Company or in blank, to the Company at its offices, accompanied by written notice to the Company, that the Holder hereof elects to convert this Note or, if less than the entire principal amount hereof is to be converted, the portion hereof to be converted.  On conversion, no adjustment for interest is to be made, but if any Holder surrenders this Note for conversion between the record date for the payment of any installment of interest and the next interest payment date, the holder of such Note when surrendered for conversion shall be entitled to payment of the interest thereon from the last preceding record date for interest through the date of conversion which the registered holder is entitled to receive on such conversion date.  No fraction of Shares will be issued on conversion, but instead of any fractional interest, the Company will pay cash adjustments as provided herein. Following receipt of the written notice of intention to convert the Note, the Company shall take such steps as it deems appropriate to permit conversion of the Note as specified herein without registration or qualification under applicable federal and state securities laws.  The Company shall reserve for issuance that number of shares necessary to permit the conversion of this Note.  All shares of Common Stock that shall be issuable on conversion shall, upon issue, be duly authorized, validly issued, fully paid and nonassessable.  The issuance of certificates for shares of the Common Stock on conversion of this Note shall be made without charge to the Holder hereof for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such certificates, provided that the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such certificate upon conversion in a name other than that of the Holder of this Note and the Company shall not be required to issue or deliver such certificates unless or until the person or persons requesting the issuance thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid.

 

 

  

2

  

8)   Holder's Restriction on Conversion.

a)            The Company shall not affect any conversion of this Note, and a Holder shall not have the right to convert any portion of this Note, to the extent that after giving effect to the conversion set forth on the applicable notice of conversion, such Holder (together with such Holder's Affiliates, and any other person or entity acting as a group together with such Holder or any of such Holder's Affiliates) would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by such Holder and its Affiliates shall include the number of shares of Common Stock issuable upon conversion of this Note with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which are issuable upon (A) conversion of the remaining, unconverted principal amount of this Note beneficially owned by such Holder or any of its Affiliates and (B) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein (including, without  limitation, any other notes or the warrants) beneficially owned by such Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this section, beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. To the extent that the limitation contained in this section applies, the determination of whether this Note is convertible (in relation to other securities owned by the Holder together with any Affiliates) and of which principal amount of this Note is convertible shall be in the sole discretion of the Holder, and the submission of a notice of conversion shall be deemed to be the Holder's determination of whether this Note may be converted (in relation to other securities owned by such Holder together with any Affiliates) and which principal amount of this Note is convertible, in each case subject to the Beneficial Ownership Limitation. To ensure compliance with this restriction, the Holder will be deemed to represent to the Company each time it delivers a notice of conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this section, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as stated in the most recent of the following: (A) the Company's most recent Form 10-Q or Form 10- K, as the case may be; (B) a more recent public announcement by the Company; or (C) a more recent notice by the Company or the Company's transfer agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within two business days confirm orally and in writing to such Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Note, by such Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The "Beneficial Ownership Limitation" shall be 4.9% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion of this Note held by the Holder. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Amendment to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to openly give-effect to such limitation. The limitations contained in this section shall apply to a successor holder of both Notes set forth above.

 

 

  

3

  

 

b)           Forced Conversion. Notwithstanding anything herein to the contrary, if a Change of Control or a Fundamental Transaction, as herein defined occur, the Company shall within three (3) business days of such event or notice of such event deliver a written notice to the Holder (a "Forced Conversion Notice" and the date such notice is delivered to the Holder, the "Forced Conversion Notice Date") to cause the Holder to convert, up to a principal amount of this Note equal to all or part of such Holder's pro-rata portion of the Forced Conversion Amount, it being understood that the "Conversion Date" for purposes of this Section 2 shall be deemed to occur on the record date for such event (the "Forced  Conversion Date"). As to each Holder, a Forced Conversion Notice shall contain the aggregate Forced Conversion Amount, such Holder's pro-rata portion of such amount, confirmation of the satisfaction of the conditions set forth above, and the portion of such Holder's pro-rata portion of the Forced Conversion Amount to be converted on each Forced Conversion Date. Although Holder will be deemed to own the Shares as of the Record Date of such action, Holder will have no voting rights related to such Shares on such date and shall not vote the Shares on the transaction triggering the forced conversion, but instead, for voting purposes, the Shares shall be deemed unissued or if required by statute be voted by the board of director of the Company in the same manor (i.e. for or against) as the majority of the Company’s shares are voted; provided that, any transaction requiring a supermajority vote must receive a supermajority vote of the outstanding common shares of the Company along with other voting shares as if the Shares of Holder were not outstanding prior to voting the Shares of Holder in favor of a triggering transaction. "Change of Control Transaction" means the occurrence after the date hereof of any of (i) an acquisition after the date hereof by an individual or legal entity or "group" (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of effective control (whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of in excess of 51% of the voting securities of the Company, or (ii) the Company merges into or consolidates with any other Person, or any Person merges into or consolidates with the Company and, after giving effect to such transaction, the stockholders of the Company immediately prior to such transaction own less than 66% of the aggregate voting power of the Company or the successor entity of such transaction, or (iii) the Company sells or transfers all or substantially all of its assets to another Person and the stockholders of the Company immediately prior to such transaction own less than 66% of the aggregate voting power of the acquiring entity immediately after the transaction, or (iv) a replacement at one time or within a three year period of more than one-half of the members of the Company's board of directors which is not approved by a majority of those individuals who are members of the board of directors on the date hereof (or by those individuals who are serving as members of the board of directors on any date whose nomination to the board of directors was approved by a majority of the members of the board of directors who are members on the date hereof), or (v) the execution by the Company of an agreement to which the Company is a party or by which it is bound, providing for any of the events set forth in clauses (i) through (iv) above. Fundamental Transaction shall include (A) the Company effects any merger or consolidation of the Company with or into another Person, (B) the Company effects any sale of all or substantially all of its assets in one transaction or a series of related transactions, (C) any tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (D) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (in any such case, a "Fundamental Transaction"), then, upon any subsequent conversion of this Note, the Holder shall have the right to receive, for each conversion Share that would have been issuable upon such conversion immediately prior to the occurrence of such Fundamental Transaction, the same kind and amount of securities, cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of one (1) share of Common Stock (the "Alternate Consideration"). For purposes of any such conversion, the determination of the Conversion Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one (1) share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Conversion Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any conversion of this Note following such Fundamental Transaction. To the extent necessary to effectuate the foregoing provisions, any successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new Note consistent with the foregoing provisions and evidencing the Holder's right to convert such Note into Alternate Consideration. The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this Section 2 and insuring that this Note (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction. For purpose of this provision the term “Person” shall mean an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

 

  

4

  

9.           Attorneys’ Fees.  If this Note is placed with an attorney for collection, or if suit be instituted for collection, herein, then in such event, the undersigned agrees to pay reasonable attorneys’ fees, costs, and other expenses incurred by holder in so doing.

10.           Construction.  This Note shall be governed by and construed in accordance with the laws of the State of Utah.

PMI Construction Group, Inc.

a Nevada Corporation

By: /s/ Jeffrey Peterson

     A Duly authorized Officer

  

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00231-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00231-of-00352.parquet"}]]