Document:

Exhibit 4.2

 

ISSUING AND PAYING

AGENCY AGREEMENT

 

between

 

STERLING NATIONAL BANK,

as Issuer,

 

and

 

U.S. BANK NATIONAL ASSOCIATION,

as Issuing and Paying Agent and Note Registrar

 

March 29, 2016

 

THIS ISSUING AND PAYING AGENCY AGREEMENT,
made and dated as of March 29, 2016 (this “Agreement”), between Sterling National Bank, a national banking association,
as issuer (the “Issuer”), and U.S. Bank National Association, as the issuing and paying agent and note registrar (hereinafter
sometimes referred to, in each such capacity, the “Agent”).

 

WHEREAS, the Issuer proposes initially to
issue $110,000,000 aggregate principal amount of its 5.25% Fixed-to-Floating Rate Subordinated Notes Due 2026 (the “Notes”)
pursuant to the offering circular, dated March 23, 2016 (the “Offering Circular”), pursuant to Section 16.6 of the
regulations of the Office of the Comptroller of the Currency (the “OCC”) and in transactions that are exempt from registration
under the Securities Act of 1933, as amended (the “Securities Act”) pursuant to Section 3(a)(2) of the Securities Act.

 

NOW, THEREFORE, in consideration of the
covenants and agreements made herein, the parties hereto agree as follows:

 

Section 1.          Definitions.
The words and terms used herein unless otherwise defined herein shall have the respective meanings assigned to such terms in the
Notes.

 

Section 2.          Appointment
and Acceptance. The Issuer hereby appoints U.S. Bank National Association, as Issuing and Paying Agent and Note Registrar with
respect to the Notes, upon the terms and conditions set forth herein, and U.S. Bank National Association hereby accepts
such appointment and agrees to perform all of the duties of Issuing and Paying Agent and Note Registrar in accordance with the
terms of the Notes and this Agreement.

 

Section 3.          Form
of Note Certificates. The Issuer shall deliver to the Agent completed Notes executed by manual or facsimile signature of an
officer of the Issuer duly authorized to execute the Notes together with an order requesting the Agent to authenticate such Notes
(an “Authentication Order”). Such Notes will be in such form as the Issuer shall deliver to the Agent.

 

Any Note bearing the manual or facsimile
signature of a person who is duly authorized to execute such Note on the date such signature is affixed shall bind the Issuer after
the completion

 

     

     

    

  

thereof by the Agent notwithstanding that
such person shall have ceased to hold his or her office on the date such Note is authenticated and delivered by the Agent.

 

Unless the Issuer notifies the Agent to
the contrary, all Notes will be represented by one note certificate, hereinafter called the “Global Note.” The Global
Note shall be registered in the name of a nominee of The Depository Trust Company (“DTC”), as Depositary. Beneficial
interests in the Global Note will be shown on, and transfers thereof will be effected only through, records maintained by DTC and
its participants.

 

Section 4.            Certificate
of Authorized Representatives of the Issuer. The Issuer shall furnish the Agent with a certificate of the Issuer certifying
the incumbency and specimen signatures of representatives of the Issuer authorized to instruct the Agent regarding the completion
and delivery of the Notes (each, an “Authorized Representative”). The Agent shall have no responsibility to the Issuer
to determine whether a signature of an Authorized Representative is genuine if such signature resembles the specimen signature
of such Authorized Representative on such certificate.

 

Section 5.            Duties
of Issuing Agent: Completion, Authentication and Delivery.

 

(a)          The
Global Note shall be issued and delivered in accordance with the Blanket Letter of Representations from the Issuer to DTC, dated
as of March 18, 2016. All instructions regarding the completion and delivery of the Global Note shall be given by an Authorized
Representative by facsimile or other means acceptable to the Agent. All Authentication Orders with respect to the completed Global
Note delivered for authentication to the Agent shall be in writing and shall be executed by an Authorized Representative. Upon
receipt of instructions as described above, the Agent shall:

 

(1)         manually
authenticate the Global Note by any one of the officers or employees of the Agent duly authorized and designated by it for such
purpose; and

 

(2)         hold
the Global Note as custodian for DTC.

 

(b)          The
Agent shall incur no liability in acting hereunder upon any instructions or Authentication Order contemplated hereby which the
Agent believed in good faith to have been given by an Authorized Representative.

 

(c)          Each
instruction or Authentication Order given to the Agent in accordance with this Section 5 shall constitute a representation and
warranty to the Agent by the Issuer that the issuance and delivery of the Note or Notes to which the instruction or Authentication
Order relates has been duly and validly authorized by the Issuer, that such Note or Notes when completed, authenticated and delivered
pursuant hereto, will constitute the legal, valid and binding obligation of the Issuer, and that the Agent’s appointment
to act for the Issuer hereunder has been duly authorized by all necessary corporate action of the Issuer.

 

Section 6.            Duties
of Note Registrar: Registration, Registration of Transfer and Exchange. The Agent, in its capacity as Note Registrar, shall,
so long as any of the Notes remain

 

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outstanding, subject without limitation to
Section 3 above, maintain all records as may be customary or provided to it and shall:

 

(a)          keep
at its Paying Agent Office in St. Paul, Minnesota (the “Paying Agent Office”), a register (the “Note Register”)
in such form as the Agent may determine, in which, subject to reasonable regulations as it may prescribe, it shall provide for
the registration of Notes and of transfers of Notes;

 

(b)          maintain
records showing for each outstanding Note the principal amount and other terms thereof; all subsequent transfers and changes of
ownership thereof; and the name, address and tax identification number of the registered holder of such Note (each, a “Holder”);

 

(c)          record
any transfer of Notes the Issuer has approved, it being understood that such approval shall be based solely on matters relating
to compliance with federal and state securities laws;

 

(d)          prepare
all such lists of Holders as may be required by the Issuer or any person needing such information and so authorized in writing
by the Issuer; and

 

(e)          during
regular office hours and upon reasonable prior written notice, make the Note Register available to the Issuer or the Issuer’s
duly appointed employee or agent; provided that the Agent shall have no responsibility or liability for any aspect of the
records relating to or payments made on account of beneficial ownership interests in the Global Note or for maintaining, supervising
or reviewing any records relating to such beneficial ownership interests, and it shall be fully protected in acting or refraining
from acting on any such information provided by DTC.

 

The Issuer, the Agent and any agent of the
Issuer or the Agent may treat the person in whose name a Note is registered (which in the case of a Global Note, shall be DTC or
its nominee) as the absolute owner and Holder of such Note for all purposes whatsoever, and none of the Issuer, the Agent or any
agent of any of them shall be affected by notice to the contrary. Any reference herein and in any Note to the term “Holder”
of a Note or “registered holder” shall be to the person in whose name a Note is registered in the register maintained
for such purposes pursuant to Section 6 hereof. Neither any members of, or participants in, DTC (“Agent Members”) nor
any other persons on whose behalf Agent Members may act shall have any rights under this Agreement with respect to any Global Note
registered in the name of DTC or any nominee thereof, or under any such Global Note. Notwithstanding the foregoing, nothing herein
shall prevent the Issuer, the Agent or any agent of the Issuer or the Agent from giving effect to any written certification, proxy
or other authorization furnished by DTC or such nominee, as the case may be, or impair, as between DTC, its Agent Members and any
other person on whose behalf an Agent Member may act, the operation of customary practices of such persons governing the exercise
of the rights of a Holder of any Global Note. Neither the Agent nor the Issuer shall have any responsibility for any actions taken
or not taken by DTC.

 

Upon surrender for registration of transfer
of any Note at the Paying Agent Office, the Issuer shall execute, and the Agent shall authenticate and deliver, in the name of
the designated

 

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transferee or transferees, one or more new
Notes of authorized denominations (which in no case may be less than $250,000 and integral multiples of $1,000 in excess thereof)
and of a like tenor and aggregate principal amount; provided that, unless and until it is exchanged in whole or in part
for individual Notes represented thereby, the Global Note may not be transferred except as a whole by DTC to a nominee of DTC,
or by a nominee of DTC to DTC or another nominee of DTC, or by DTC or any such nominee to a successor depositary or a nominee of
such successor depositary.

 

If (i) DTC notifies the Issuer in writing
that it is unwilling or unable to act as Depositary or DTC ceases to be a clearing agency registered under the Securities Exchange
Act of 1934, as amended, and a successor depositary is not appointed by the Issuer within 90 days, (ii) the Issuer, at its option,
notifies the Agent, in writing that it elects to cause the issuance of Notes in definitive form or (iii) any event shall have happened
and be continuing that, after notice or lapse of time or both, would constitute an Event of Default with respect to the Notes,
then, upon surrender by DTC or a successor depositary of the Global Notes, the Agent shall authenticate and deliver Notes, upon
receipt of instructions from the Issuer, of like tenor and terms in definitive form in an aggregate principal amount equal to the
principal amount of the Global Note outstanding in exchange for such Global Note, to each person that DTC or a successor depositary
identifies as the beneficial owner of the related Notes.

 

Upon the exchange of the Global Note for
Notes in definitive form upon the occurrence of any of the events described above, the Global Note shall be cancelled by the Agent.
Notes issued in exchange for the Global Note shall be registered in such names and in such authorized denominations, and delivered
to such addresses, as DTC, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Agent
in writing. The Agent shall deliver such Notes to the persons in whose names such Notes are registered or to DTC, in fully registered
form without coupons in denominations of $250,000 or any amount in excess thereof that is an integral multiple of $1,000. Such
Notes may not subsequently be exchanged by a Holder for Notes in denominations of less than $250,000.

 

In case any Note shall at any time become
mutilated, destroyed, lost or stolen and such Note or evidence satisfactory to the Issuer of the loss, theft or destruction thereof
(together with indemnity satisfactory to the Agent and the Issuer and such other documents or proof as may be required by the Agent
and the Issuer) shall be delivered to the Agent and the Issuer, the Agent shall authenticate and deliver, upon receipt of instructions
from the Issuer, a new Note of like tenor in exchange for the Note so mutilated, or in lieu of the Note so destroyed or lost or
stolen.

 

Section 7.            Duties
of Paying Agent: Payment of Notes; Interest.

 

(a)         Payment
of principal (and premium, if any) and interest on the Notes shall be made by the Agent in the manner and on the dates specified
in the Notes from funds deposited by the Issuer with the Agent for such payments as provided in Section 10. The Agent shall have
no obligation to use its own funds for any such payment of principal, premium, if any, or interest on the Notes. Payments due at
the maturity or redemption of a Note shall be made only upon presentation and surrender of such Note. Any money that the Issuer
pays to the Agent for the purpose of making payments on the Notes and that remains unclaimed two years after the

 

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payments were due will, at the Issuer’s
written request, be returned to it. After that time, any Holders of such Notes can only look to the Issuer for payment on such
Notes.

 

(b)         The
Issuer may appoint a calculation agent (the “Calculation Agent”), which Calculation Agent will calculate the interest
payable for each Interest Payment Date that the Notes shall accrue interest at a floating rate in accordance with the terms of
the Notes. The Calculation Agent shall calculate the interest payable in accordance with the terms of the Notes and absent manifest
error, such interest calculation determination shall be binding and conclusive on the Holders of the Notes and the Issuer. Promptly
following each Regular Record Date (as defined in the Note), the Calculation Agent will advise the Issuer of the amount of interest
(to the extent then known) due on the next succeeding Interest Payment Date (as defined in the Note); provided, however, the Agent
shall have no responsibility to determine or calculate any premium due on the Notes or a make-whole amount due and owing on the
Notes, if any. On the date hereof and unless and until the Issuer appoints a new Calculation Agent, the Agent shall serve as Calculation
Agent, subject to the terms and conditions contained herein. If at any time the Agent is not acting as the Calculation Agent with
respect to the Notes, the Agent will give any appointed Calculation Agent, which may include the Issuer, written notice of each
Interest Payment Date with respect to such Note at least ten Business Days prior to such Interest Payment Date.

 

Section 8.            Optional
Redemption. In the event the Issuer elects to redeem any Notes in whole or in part, the Issuer shall give written notice to
the Agent of the principal amount of such Notes to be so redeemed in accordance with the terms set forth in the Notes. In any such
written notice, (a) if certificated notes are to be redeemed, the Issuer shall identify such notes by specifying the interest rate
or formula pursuant to which interest is calculated on such notes, the Interest Payment Dates, the stated maturity date and redemption
terms or (b) if book-entry notes are to be redeemed, the Issuer shall identify such notes by specifying the CUSIP number assigned
to the Global Note or notes representing such notes. The Agent shall cause any such notice of redemption to be forwarded to the
Holders of the Notes to be redeemed in accordance with the terms set forth in the Notes in the name and at the expense of the Issuer.
Whenever less than all of the Notes of like tenor and terms are to be redeemed, (a) if such Notes are Global Notes held by the
Agent as custodian for the Depositary or its nominee, the Agent shall reduce the principal amount of one or more Global Notes,
by the amount of such redemption, by means of an appropriate adjustment on the records of the Agent, subject to the rules and procedures
of the Depositary, or (b) in the case of all other Notes, the Agent shall select the Notes to be so redeemed ratably among Holders.
Any Note which is to be redeemed in part only pursuant to clause (b) of the preceding sentence shall be surrendered to the Paying
Agent Office, and the Issuer shall execute, and upon receipt of instructions from an Authorized Representative of the Issuer, the
Agent shall authenticate and deliver to the Holder of such Note, without service charge, a new Note of like tenor and terms, of
any authorized denomination as requested by such Holder, in an aggregate principal amount equal to and in exchange for the unredeemed
portion of the principal of such Note so surrendered.

 

Section 9.            Proceeds
of Sale of Notes. Proceeds received in payment for the Notes are to be in immediately available funds and shall be immediately
credited to an account designated in writing by the Issuer to the Issuing and Paying Agent and the Note Registrar and maintained
by the Issuer. Subject to the availability of funds, upon receipt of instructions from an

 

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Authorized Representative of the Issuer, proceeds
from the sale of Notes may, prior to the time such proceeds are received, be used in payment of the principal of, and premium,
if any, and interest on, other Notes of the Issuer presented for payment on the Maturity Date or any earlier date on which the
principal thereof is due and payable, or be transferred for credit to the account of the Issuer at another bank.

 

Section 10.          Deposit
of Funds. The Issuer shall deposit with the Agent by 9:30 a.m., New York time (i) on each Interest Payment Date (as such term
is defined in such Note) of a Note an amount in immediately available funds sufficient to pay the interest due on such date and
(ii) on the Maturity Date (as such term is defined in such Note) or earlier redemption date an amount in immediately available
funds sufficient to pay the principal of such Note, the premium due thereon, if any, and the interest accrued thereon to, but excluding,
such Maturity Date or redemption date, as the case may be. The Agent shall clearly identify in its books and records funds relating
to the Notes.

 

Section 11.          Fees
and Expenses of the Agent. The Issuer shall pay such fees and expenses of the Agent for the performance of its duties as Issuing
and Paying Agent and Note Registrar hereunder as may be mutually agreed upon from time to time in writing and the Issuer agrees
promptly to pay such compensation and to reimburse the Agent for the reasonable out-of-pocket documented expenses (including reasonable
counsel fees and expenses not to exceed $5,000) incurred by it in connection with or arising out of its services hereunder, except
any such expense, disbursement or advance as may be attributable to its negligence or willful misconduct, and the Agent shall provide
the Issuer with reasonable notice of any expenditure incurred that is not in the ordinary course of business.

 

Section 12.          Conditions.
The Agent accepts its obligations herein set forth upon the terms and conditions hereof, including the following, to all of which
the Issuer agrees:

 

(a)          Agency.
The Agent shall not be liable for any costs, expenses, damages, liabilities or claims hereunder, except to the extent directly
arising out of the Agent’s gross negligence or willful misconduct, as finally determined by a court of competent jurisdiction.
In acting under this Agreement and in connection with the Notes, the Agent is acting solely as agent of the Issuer and does not
assume any responsibility for the correctness of the recitals in the Notes (except for the correctness of the statement in its
certificate of authentication thereon) or any obligation or relationship of agency or trust, for or with any of the owners or Holders
of the Notes. Nothing in this Agreement shall create a fiduciary relationship between the Agent, any Holders of the Notes or any
other party.

 

(b)          Advice
of Counsel. The Agent may consult with Issuer’s counsel or other independent counsel satisfactory to them, and the advice
or opinion of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or
omitted by it hereunder in good faith and in reliance thereon.

 

(c)          Reliance.
The Agent may rely, and shall be protected in acting or refraining from acting, upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond debenture, note, other evidence of indebtedness or other paper
or document delivered to it or believed by it to be genuine and to have been signed or

 

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presented by the proper party or parties.
The Agent shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness
or other paper or document.

 

(d)          Interest
in the Notes, etc. The Agent, in its individual or any other capacity, may become the owner or pledgee of the Notes and may
otherwise deal with the Issuer with the same rights as it would have if it were not the Agent.

 

(e)          Non-Liability
for Interest. The Agent shall be under no liability for interest on any money received by it hereunder except as otherwise
agreed with the Issuer.

 

(f)          Certifications.
Whenever in the administration of this Agreement the Agent shall deem it desirable that a matter be proved or established prior
to taking, suffering or omitting any action hereunder, the Agent (unless other evidence be herein specifically prescribed) may,
in the absence of bad faith on its part, rely upon a certificate delivered to the Agent and signed by the President, the Chief
Executive Officer, the Chief Financial Officer, an Executive Vice President, the Treasurer, the Corporate Secretary, an Assistant
Secretary or any Attorney-in-Fact of the Issuer.

 

(g)          No
Implied Obligations. The duties and obligations of the Agent, with respect to matters governed by this Agreement, shall be
determined solely by the express provisions hereof, and the Agent shall not be liable except for the performance of such duties
and obligations as are specifically set forth in this Agreement and the Notes, as applicable, and no implied covenants or obligations
shall be read into this Agreement or the Notes against the Agent. No provision of this Agreement shall require the Agent to expend
or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise
of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity
against such risk or liability is not reasonably assured to it.

 

(h)          Enforceability
of Rights. The rights, privileges, protections, immunities and benefits given to the Agent, including, without limitation,
its right to be indemnified, are extended to, and shall be enforceable by, the Agent in each of its capacities hereunder, and to
each agent, custodian and other person employed to act hereunder.

 

(i)          Agents.
The Agent may execute any of the powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys
and the Agent shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due
care by it hereunder.

 

(j)          Occurrences
Beyond Reasonable Control. In no event shall the Agent be responsible or liable for any failure or delay in the performance
of its obligations hereunder, arising out of or caused by, directly or indirectly, forces beyond its control, including, without
limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes
or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services
(it being

 

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understood that the Agent shall maintain a
business continuity plan and otherwise use reasonable efforts which are consistent with accepted practices in the banking industry
to avoid and mitigate the effects of such occurrences and to resume performance as soon as practicable under the circumstances).

 

(k)          Damages.
In no event shall the Agent be responsible or liable for special, indirect, punitive or consequential loss or damage of any kind
whatsoever (including, but not limited to, loss of profit) irrespective of whether the Agent has been advised of the likelihood
of such loss or damage and regardless of the form of action.

 

(l)          Disclaimer.
The recitals contained herein and in the Notes, except the Agent’s certificates of authentication, shall be taken as the
statements of the Issuer, and the Agent (or any person authorized by the Agent to act on behalf of the Agent to authenticate the
Notes (an “Authenticating Agent”)) assumes no responsibility for their correctness. The Agent makes no representations
as to the validity or sufficiency of this Agreement or of the Notes. The Agent or any Authenticating Agent shall not be accountable
for the use or application by the Issuer of the Notes or the proceeds thereof.

 

(m)        Judicial
Orders. If at any time the Agent is served with any judicial or administrative order, judgment, decree, writ or other form
of judicial or administrative process which in any way affects this Agreement or the Notes (each, an “Order” and including,
but not limited to, orders of attachment or garnishment or other forms of levies or injunctions or stays relating to the transfer
of funds), the Agent shall use reasonable efforts to provide the Issuer with written notice of Agent’s receipt of service
as promptly as practicable under the circumstances (unless prohibited by applicable law or such Order), so that Issuer may, at
its option, decide whether to seek a modification of any such Order. The Agent agrees that it will reasonably cooperate in all
reasonable respects with Issuer’s efforts to obtain such modification. The Agent is authorized to comply with any such Order
(regardless of whether Issuer successfully obtains a modification of the Order should it seek to do so) in any manner as the Agent
or its legal counsel of its own choosing deems appropriate; provided, however, that the Agent shall delay compliance
with an Order until any proceedings instituted by Issuer seeking modification of the Order have been resolved or until (based on
the advice of Agent’s legal counsel) further delay in complying with the Order would expose Agent to penalties or sanctions
for its failure to comply or would adversely affect the Agent’s ability to comply. If the Agent complies with any Order in
accordance with the provisions of this paragraph, the Agent shall not be liable to any of the parties hereto or to any other person
or entity even though such Order may be subsequently modified or vacated or otherwise determined to have been without legal force
or effect.

 

(n)          Taxes.
In order to comply with applicable tax laws (inclusive of rules, regulations and interpretations promulgated by competent authorities)
related to this Agreement and the Notes in effect from time to time (“Applicable Law”) that a foreign financial institution,
issuer, trustee, paying agent or other party is or has agreed to be subject to, the Issuer agrees (i) to provide to the Agent sufficient
information about the parties and/or transactions (including any modification to the terms of such transactions) so the Agent can
determine whether it has tax related obligations under Applicable Law and (ii) that the Agent shall be entitled to make any withholding
or deduction from payments to the extent necessary to comply with Applicable Law

 

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for which the Agent shall not have any liability.
The terms of this Section 12(n) shall survive the termination of this Agreement.

 

(o)        Calculations.
Except as otherwise provided herein, the Agent shall not be responsible for and accepts no liability with respect to determining,
calculating or confirming any date, value or amount related to the Notes. It shall be the responsibility of the Issuer to notify
the Agent in writing of same in timely fashion to the extent the Issuer has such information and to the extent the Agent is required
to have such information to perform the duties and obligations of the Agent set forth herein or in the Notes.

 

Section 13.         Indemnification.
Notwithstanding any satisfaction or discharge of any Notes, the Issuer shall indemnify the Agent and its directors, officers, agents
and employees against any and all loss, liability, costs, damages, claims, actions, expenses or demands which it may incur or sustain
or which may be made against it in connection with its appointment or the exercise of its powers and duties hereunder as well as
the reasonable and documented costs, including the expenses and fees of counsel in defending any claim, action or demand, including
any claim under this Section 13 (regardless of whether such claim, action or demand is brought by the Issuer), except such
as may result from the Agent’s willful misconduct or gross negligence, as finally determined by a court of competent jurisdiction.
The Agent shall incur no liability and shall also be indemnified and held harmless by the Issuer for, or in respect of, any actions
taken or suffered to be taken in good faith by the Agent in accordance herewith and in reliance upon the written (i) opinion or
advice of counsel, (ii) instructions that are believed, in good faith, to be duly authorized by the Issuer, or (iii) that officers’
certificate, dated as of the date hereof, executed by officers of the Issuer and delivered to the Agent on the date hereof.

 

Section 14.         Resignation
or Removal of the Agent.

 

(a)        Except
as provided below, the Agent may, at any time, resign as Note Registrar, as Issuing Agent or as Paying Agent, by giving written
notice to the Issuer of its intention to resign from any or all such offices, specifying the date on which its desired resignation
shall become effective; provided that such notice shall be given not less than 45 days prior to the said effective date, unless
the Issuer otherwise agrees in writing. Except as provided below, the Agent may be removed from any or all of the offices
to which it is hereby appointed by the Issuer upon delivering to the Agent an instrument in writing signed by the Issuer specifying
such removal and the date when such removal shall become effective (such effective date being at least 20 days after said filing).

 

(b)        If
at any time the Agent shall resign or be removed from any or all of the offices to which it is hereby appointed, then a successor
Note Registrar, Issuing Agent or Paying Agent, as the case may be, shall be appointed by the Issuer by an instrument in writing
delivered to the successor Note Registrar, Issuing Agent or Paying Agent, as the case may be. Upon the appointment as aforesaid
of a successor Note Registrar, Issuing Agent or Paying Agent, as the case may be, and acceptance by the latter of such appointment,
the former Note Registrar, Issuing Agent or Paying Agent, as the case may be, shall cease to hold such office.

 

(c)        Any
successor Note Registrar, Issuing Agent or Paying Agent appointed hereunder shall execute and deliver to its predecessor and the
Issuer an instrument accepting 

 

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such appointment hereunder, and
thereupon such successor Note Registrar, Issuing Agent or Paying Agent, without any further act, deed or conveyance, shall
become vested with all the authority, rights, powers, immunities, duties and obligations of such predecessor with like effect
as if originally named as the Note Registrar, Issuing Agent or Paying Agent hereunder, and such predecessor shall thereupon
become obligated to transfer and deliver, and such successor shall be entitled to receive, copies of any relevant records
maintained by such predecessor Note Registrar, Issuing Agent or Paying Agent.

 

(d)          Any
corporation into which the Agent may be merged or converted or any corporation with which the Agent may be consolidated or any
corporation resulting from any merger, conversion or consolidation to which the Agent shall be a party shall, to the extent permitted
by applicable law, be the successor Note Registrar, Issuing Agent or Paying Agent under this Agreement without the execution or
filing of any paper or any further act on the part of any of the parties hereto. Notice of any such merger, conversion or consolidation
shall forthwith be given to the Issuer.

 

(e)          The
provisions of Sections 11 and 13 hereof shall survive any resignation or removal hereunder and the termination of this Agreement
with respect to matters occurring prior to any such resignation or removal and the termination of this Agreement.

 

Section 15.          Event
of Default Notification. The Issuer will promptly notify the Agent upon the occurrence of an Event of Default or of the curing
of an Event of Default, and the Issuer will provide copies of any such notice of the occurrence of an Event of Default or the curing
of an Event of Default to the Agent, whereupon the Agent will promptly mail by first-class mail, postage prepaid, copies of such
notice to the Holders of the Notes in the Note Register at their respective addresses appearing in the Agent’s records. The
Agent shall have no obligation to act as a fiduciary to the Holders of the Notes (or any other party) and shall have no duty to
enforce this Agreement or the Notes against the Issuer.

 

Section 16.          Notices.
All notices, instructions and communications between the parties hereto in connection with this Agreement shall be delivered in
person, sent by letter, facsimile or other method acceptable to the recipient, in the case of the Issuer, to it at 400 Rella Boulevard,
Montebello, New York 10901, Attention: Katharine B. Brown, with a copy to Squire Patton Boggs (US) LLP, 2550 M Street, NW, Washington,
DC 20037, Attention: Abby E. Brown, and in the case of the Agent, to it at 100 Wall Street – Suite 1600, New York, New York
10005, Attention: Global Corporate Trust Services.

 

The Agent shall have the right to rely upon
and comply with instructions and directions sent by e-mail, facsimile and other similar unsecured electronic methods by persons
believed by the Agent to be authorized to give instructions and directions on behalf of the Issuer. The Agent shall not have any
duty or obligation to verify or confirm that the person who sent such instructions or directions is, in fact, a person authorized
to give instructions or directions on behalf of the Issuer; and the Agent shall not have any liability for any losses, liabilities,
costs or expenses incurred or sustained by the Issuer as a result of such reliance upon or compliance with such instructions or
directions. The Issuer agrees to assume all risks arising out of the use of such electronic methods to submit instructions and
directions to the Agent, including without

 

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limitation the risk of the Agent acting on
unauthorized instructions, and the risk of interception and misuse by third-parties.

 

Section 17.         Successors
and Assigns. The rights, duties and obligations of the Issuer and the Agent hereunder shall inure, without further act, to
their respective successors and assigns.

 

Section 18.         Amendments.
This Agreement may be amended only by an instrument in writing signed by the Issuer and the Agent.

 

Section 19.         Counterparts.
This Agreement may be executed in one or more counterparts and, if executed in one or more counterparts, the executed counterparts
shall each be deemed to be an original but all such counterparts shall together constitute one and the same instrument.

 

Section 20.         Governing
Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

Section 21.         Severability.
In case any provision in this Agreement or in the Notes shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 22.         Waiver
of Jury Trial. EACH OF THE AGENT AND THE ISSUER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE NOTES OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

 

Section 23.         Jurisdiction.
Each of the Agent and the Issuer submits to the jurisdiction of the courts of the State of New York over any suit, action or proceeding
with respect to this Agreement or the transactions contemplated hereby. Each of the parties waives any objection that it may have
to the venue of any suit, action or proceeding with respect to this Agreement or the transactions contemplated hereby in any court
of the State of New York or that such suit, action or proceeding brought in a court of the State of New York was brought in an
inconvenient court and agrees not to plead or claim the same.

 

Section 24.         USA
Patriot Act. The parties hereto acknowledge that, in accordance with Section 326 of the USA Patriot Act (Title III of Pub.
L. 107-56 (signed into law October 26, 2001)) (as amended, modified or supplemented from time to time, the “USA Patriot Act”),
the Agent, like all financial institutions, is required to obtain, verify, and record information that identified each person or
legal entity that opens an account. The parties to this Agreement agree that they will provide the Agent with such information
as the Agent may request in order for the Agent to satisfy the requirements of the USA Patriot Act.

 

Section 25.         No
Subordination. The obligations of the Issuer under Sections 11 and 13 to compensate and indemnify the Agent and to pay or reimburse
the Agent for expenses, disbursements and advances shall not be subject to the subordination provisions of the Notes.

 

    	 	- 11 -	 

     

    

  

[signature page follows]

 

    	 	- 12 -	 

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be executed as of the day and year first above written.

 

	 	STERLING NATIONAL BANK,
	 	as Issuer
	 	 	 	 
	 	By:	/s/ Luis Massiani
	 	 	Name:	Luis Massiani
	 	 	Title:	Chief Financial Officer
	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,
	 	as Issuing and Paying Agent and Note Registrar
	 	 	 	 
	 	By:	/s/ K. Wendy Kumar
	 	 	Name:	K. Wendy Kumar
	 	 	Title:	Vice President

 

[Signature Page to Issuing and Paying Agency
Agreement]Exhibit 4.1

 

BIOHITECH GLOBAL, INC.

2015 EQUITY INCENTIVE PLAN

 

1.           Purpose.
The purpose of this Equity Incentive Plan (the “Plan”) is to advance the interests of BioHiTech Global, Inc.
(the “Company”) and its Affiliates (as defined below) by inducing eligible individuals of outstanding ability
and potential to join and remain with, or to provide consulting or advisory services to, the Company or its Affiliates, by encouraging
and enabling eligible employees, Outside Directors (as defined below), consultants, and advisors to acquire proprietary interests
in the Company, and by providing participating eligible employees, Outside Directors, consultants, and advisors with an additional
incentive to promote the success of the Company. These purposes are accomplished by providing for the granting of Incentive Stock
Options, Nonqualified Stock Options, Reload Options, Stock Appreciation Rights, and Restricted Stock (all as defined below) to
eligible employees, Outside Directors, consultants, and advisors.

 

2.           Definitions.
As used in the Plan, the following terms have the meanings indicated:

 

(a)        “Affiliate”
means a “parent corporation” or a “subsidiary corporation” (as set forth in Code Sections 424(e) and 424(f),
respectively) of the Company.

 

(b)        “Applicable
Withholding Taxes” means the aggregate minimum amount of federal, state, local, and foreign income, payroll, and other
taxes that an Employer is required to withhold in connection with the grant, vesting, or exercise of any Award.

 

(c)        “Award”
means an Incentive Stock Option, a Nonqualified Stock Option, a Reload Option, a Stock Appreciation Right, or Restricted Stock.

 

(d)        “Beneficiary”
means the person or entity designated by the Participant, in a form approved by the Company, to exercise the Participant’s
rights with respect to an Award after the Participant’s death. If the Participant does not validly designate a Beneficiary,
or if the designated person no longer exists, then the Participant’s Beneficiary shall be his or her estate.

 

(e)        “Board”
means the Board of Directors of the Company.

 

(f)        “Cause”
shall have the same meaning given to such term (or other term of similar meaning) in an Employment Agreement for purposes of termination
of employment under such agreement, and in the absence of any such agreement or if such agreement does not include a definition
of “Cause” (or other term of similar meaning), the term “Cause” shall mean (i) any material breach by the
Participant of any agreement to which the Participant and the Company or an Affiliate are parties, (ii) any continuing act or omission
to act by the Participant which may have a material and adverse effect on the Company’s business or on the Participant’s
ability to perform services for the Company or an Affiliate, including, without limitation, the commission of any crime (other
than minor traffic violations), or (iii) any material misconduct or material neglect of duties by the Participant in connection
with the business or affairs of the Company or an Affiliate.

 

(g)        “Change
in Control” means, unless such term or an equivalent term is otherwise defined with respect to an Award by the Participant’s
Award agreement, any Employment Agreement or in a written contract of service, the occurrence of any of the following:

 

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(i)        any “person”
(as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined
in Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of the Company representing more
than fifty percent (50%) of the total combined voting power of the Company’s then-outstanding securities entitled to vote
generally in the election of Directors; provided, however, that the following acquisitions shall not constitute a Change in Control:
(1) an acquisition by any such person who on the Effective Date is the beneficial owner of more than fifty percent (50%) of
such voting power, (2) any acquisition directly from the Company, including, without limitation, a public offering of securities,
(3) any acquisition by the Company, (4) any acquisition by a trustee or other fiduciary under an employee benefit plan
of a Participating Company or (5) any acquisition by an entity owned directly or indirectly by the stockholders of the Company
in substantially the same proportions as their ownership of the voting securities of the Company; or

 

(ii)        an Ownership
Change Event or series of related Ownership Change Events (collectively, a “Transaction”) in which the stockholders
of the Company immediately before the Transaction do not retain immediately after the Transaction direct or indirect beneficial
ownership of more than fifty percent (50%) of the total combined voting power of the outstanding securities entitled to vote generally
in the election of Directors or, in the case of an Ownership Change Event described in Section 2(x)(iii), the entity to which the
assets of the Company were transferred (the “Transferee”), as the case may be; or

 

(iii)        a liquidation
or dissolution of the Company.

 

provided, however, that a Change in Control
shall be deemed not to include a transaction described in subsections (i) or (ii) of this paragraph (g) in which a majority of
the members of the board of directors of the continuing, surviving or successor entity, or parent thereof, immediately after such
transaction is comprised of incumbent Directors. For purposes of the preceding sentence, indirect beneficial ownership shall include,
without limitation, an interest resulting from ownership of the voting securities of one or more corporations or other business
entities which own the Company or the Transferee, as the case may be, either directly or through one or more subsidiary corporations
or other business entities. The Committee shall have the right to determine whether multiple sales or exchanges of the voting securities
of the Company or multiple Ownership Change Events are related, and its determination shall be final, binding and conclusive.

 

(h)        “Code”
means the Internal Revenue Code of 1986, as amended from time to time, and any rulings or regulations promulgated thereunder.

 

(i)        “Committee”
means the Board, the Compensation Committee of the Board, or such other committee of the Board as the Board appoints to administer
the Plan; provided, however, that should Section 162(m) of the Code and Section 16 of the Securities Exchange Act of 1934 apply
to Awards under the Plan, if any member of the Committee does not qualify as both an “outside director” for purposes
of Code Section 162(m) and a “non-employee director” for purposes of Rule 16b-3, the remaining members of the Committee
(but not less than two members) shall be constituted as a subcommittee of the Committee to act as the Committee for purposes of
the Plan.

 

(j)        “Commission”
means the U.S. Securities and Exchange Commission.

 

    2 

     

    

 

(k)        “Company”
means BioHiTech Global, Inc., a Delaware corporation, and its subsidiaries.

 

(l)        “Company
Stock” means common stock, par value $.0001 per share, of the Company. In the event of a change in the capital structure
of the Company affecting the common stock (as provided in Section 14), the shares resulting from such a change in the common stock
shall be deemed to be Company Stock within the meaning of the Plan.

 

(m)        “Date of
Grant” means the date on which the Committee grants an Award, or such future date as may be determined by the Committee.

 

(n)        “Disability”
means a disability within the meaning of Code Section 22(e)(3).

 

(o)        “Employer”
means the Company and each Affiliate that employs one or more Participants.

 

(p)        “Employment
Agreement” means any written employment or other similar agreement between the Participant and the Company or an Affiliate.

 

(q)        “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

(r)        “Fair Market
Value” means on any given date the fair market value of Company Stock as of such date, as determined by the Committee.
If the Company Stock is listed on a national securities exchange or traded on the over-the-counter market, Fair Market Value means
the closing selling price or, if not available, the closing bid price or, if not available, the high bid price of the Company Stock
quoted on such exchange, or on the over-the-counter market as reported by the NASDAQ Stock Market (“NASDAQ”),
or if the Company Stock is not listed on NASDAQ, then by the National Quotation Bureau, Incorporated, on the day immediately preceding
the day on which the Award is granted or exercised, as the case may be, or, if there is no selling or bid price on that day, the
closing selling price, closing bid price, or high bid price on the most recent day which precedes that day and for which such prices
are available.

 

(s)        “Incentive
Stock Option” means an Option that qualifies for favorable income tax treatment under Code Section 422.

 

(t)        “Mature
Shares” means shares of Company Stock for which the shareholder has good title, free and clear of all liens and encumbrances.

 

(u)        “Nonqualified
Stock Option” means an Option that is not an Incentive Stock Option.

 

(v)        “Option”
means a right to purchase Company Stock granted under the Plan, at a price determined in accordance with the Plan.

 

(w)        “Outside
Director” means a member of the Board who is not an employee of, or a consultant or advisor to, the Company or an Affiliate
as of the Date of Grant. 

 

    3 

     

    

  

(x)        “Ownership
Change Event” means the occurrence of any of the following with respect to the Company: (i) the direct or indirect
sale or exchange in a single or series of related transactions by the stockholders of the Company of more than fifty percent (50%)
of the voting stock of the Company; (ii) a merger or consolidation in which the Company is a party; or (iii) the sale,
exchange, or transfer of all or substantially all of the assets of the Company (other than a sale, exchange or transfer to one
or more subsidiaries of the Company).

 

(y)        “Participant”
means any employee, Outside Director, consultant, or advisor (including independent contractors, professional advisors, and service
providers) of the Company or an Affiliate who receives an Award under the Plan.

 

(z)        “Restricted
Stock” means Company Stock awarded under Section 9 of the Plan.

 

(aa)      “Reload
Option” means a reload option grant made in accordance with Section 7 of the Plan.

 

(bb)     “Rule
16b-3” means Rule 16b-3 of the Commission promulgated under the Exchange Act. A reference in the Plan to Rule 16b-3 shall
include a reference to any corresponding rule (or number redesignation) of any amendments to Rule 16b-3 enacted after the effective
date of the Plan’s adoption.

 

(cc)      “Securities
Act” means the Securities Act of 1933, as amended.

 

(dd)     “Stock
Appreciation Right” means a right to receive amounts awarded under Section 8 of the Plan.

 

3.           Stock.
Subject to Section 14 of the Plan, there shall be reserved for issuance under the Plan an aggregate of 750,000 shares of Company
Stock, which may be authorized but unissued shares, or shares held in the Company’s treasury, or shares purchased from stockholders
expressly for use under the Plan. In addition, shares allocable to Awards granted under the Plan that expire, are forfeited, are
cancelled without the delivery of the shares, or otherwise terminate unexercised, may again be available for Awards under the Plan.
For purposes of determining the number of shares that are available for Awards under the Plan, the number shall also include the
number of shares surrendered by a Participant actually or by attestation or retained by the Company in payment of Applicable Withholding
Taxes, and any Mature Shares surrendered by a Participant upon exercise of an Option or in payment of Applicable Withholding Taxes.
Shares issued under the Plan through the settlement, assumption, or substitution of outstanding awards or obligations to grant
future awards as a condition of an Employer acquiring another entity shall not reduce the maximum number of shares available for
delivery under the Plan.

 

4.           Eligibility.
Subject to the terms of the Plan, the Committee shall have the power and complete discretion, as provided in Section 13, to select
eligible employees, Outside Directors, consultants, and advisors to receive an Award under the Plan; provided, however, that any
Award shall be subject to the following terms and conditions:

 

(a)        Only those individuals
who are employees (including officers) of the Company or an Affiliate at the Date of Grant shall be eligible to receive an Incentive
Stock Option under the Plan.

 

    4 

     

    

 

(b)        All employees (including
officers) and Outside Directors of, or consultants and advisors to, either the Company or an Affiliate at the Date of Grant shall
be eligible to receive Nonqualified Stock Options, Stock Appreciation Rights, and Restricted Stock; provided, however, that Nonqualified
Stock Options, Stock Appreciation Rights, and Restricted Stock may not be granted to any such consultants and advisors unless (i)
bona fide services have been or are to be rendered by such consultant or advisor and (ii) such services are not in connection with
the offer or sale of securities in a capital raising transaction.

 

(c)        Anything herein
to the contrary notwithstanding, any recipient of an Award under the Plan must be includable in the definition of “employee”
provided in the general instructions to Form S-8 Registration Statement under the Securities Act.

 

(d)        The grant of an
Award shall not obligate an Employer to pay any employee, Outside Director, consultant, or advisor any particular amount of remuneration,
to continue the employment of the employee or engagement of the Outside Director, consultant, or advisor after the grant, or to
make further grants to the employee, Outside Director, consultant, or advisor at any time thereafter.

 

5.           Stock Options.

 

(a)        The Committee may
make grants of Options to Participants. Except as otherwise provided herein, the Committee shall determine the number of shares
for which Options are granted, the Option exercise price per share, whether the Options are Incentive Stock Options or Nonqualified
Stock Options, and any other terms and conditions to which the Options are subject.

 

(b)        The exercise price
of shares of Company Stock covered by an Option shall be not less than 100 percent of the Fair Market Value of Company Stock on
the Date of Grant. Except as provided in Section 14, (i) the exercise price of an Option may not be decreased after the Date of
Grant and (ii) a Participant may not surrender an Option in consideration for the grant of a new Option with a lower exercise price
or another Award.

 

(c)        All Options granted
hereunder shall be subject to the following terms and conditions:

 

(i)            All Options shall
be evidenced by a written stock option agreement (the “Stock Option Agreement”) setting forth all the relevant
terms of the Award.

 

(ii)           No Option shall
be exercisable more than 10 years after the Date of Grant.

 

(iii)          The aggregate
Fair Market Value, determined at the Date of Grant, of shares for which Incentive Stock Options become exercisable by a Participant
during any calendar year shall not exceed $100,000 and any amount in excess of $100,000 shall be treated as a Non-Qualified Stock
Option.

 

(iv)          If an Incentive
Stock Option is granted to an employee who owns, at the Date of Grant, more than 10 percent of the total combined voting power
of all classes of stock of the Company or an Affiliate, then (A) the option price of the shares subject to the Incentive Stock
Option shall be at least 110% of the Fair Market Value of the Company Stock at the Date of Grant and (B) such Incentive Stock Option
shall not be exercisable after the expiration of 5 years from the Date of Grant.

 

    5 

     

    

  

(v)        Subject to earlier
termination of the Option as otherwise provided herein and unless otherwise provided in any Employment Agreement or as provided
by the Committee in the grant of an Option and set forth in or incorporated into the Stock Option Agreement: (A) if the employment
of an employee by, or the services of an Outside Director for, or consultant or advisor to, the Company or an Affiliate should
be terminated for Cause or terminated voluntarily by the grantee, then any outstanding Option shall terminate immediately, (B)
if such employment or services terminates for any other reason, any such Option exercisable as of the date of termination may be
exercised at any time within three months of termination. For purposes of this subsection, (y) the retirement of an individual
either pursuant to a pension or retirement plan maintained by the Company or an Affiliate or at the applicable normal retirement
date prescribed from time to time by the Company shall be deemed to be termination of the individual’s employment other than
voluntarily or for Cause, and (z) an individual who leaves the employ or services of the Company or an Affiliate to become an employee
or Outside Director of, or a consultant or advisor to, an entity that has assumed the Option as a result of a corporate reorganization
or the like shall not be considered to have terminated employment or services.

 

(vi)        Subject to earlier
termination of the Option as otherwise provided herein and unless otherwise provided in any Employment Agreement or as provided
by the Committee in the grant of an Option and set forth in or incorporated into the Stock Option Agreement, if the holder of an
Option under the Plan ceases employment or services because of Disability while employed by, or while serving as an Outside Director
for or a consultant or advisor to, the Company or an Affiliate, then such Option may, subject to the provisions of subsection (viii)
below, be exercised at any time within one year after the termination of employment or services due to the Disability.

 

(vii)        Subject to earlier
termination of the Option as otherwise provided herein and unless otherwise provided in any Employment Agreement or as provided
by the Committee in the grant of an Option and set forth in or incorporated into the Stock Option Agreement, if the holder of an
Option under the Plan dies (A) while employed by, or while serving as an Outside Director for or a consultant or advisor to, the
Company or an Affiliate, or (B) within three months after the termination of employment or services other than voluntarily by the
grantee or for Cause, then such Option may, subject to the provisions of subsection (viii) below, be exercised by the Participant’s
Beneficiary at any time within one year after the Participant’s death.

 

(viii)        An Option may
not be exercised after termination of employment, termination of directorship, termination of consulting or advisory services,
Disability or death except to the extent that the holder was entitled to exercise the Option at the time of such termination or
as otherwise provided in a currently effective written Employment Agreement, consulting agreement or other related agreement executed
between the Company and the employee, Outside Director or consultant or advisor, and in any event may not be exercised after the
expiration of the Option in accordance with the terms of the grant.

 

(ix)        The employment
relationship of an employee of the Company or an Affiliate shall be treated as continuing intact while the employee is on military
or sick leave or other bona fide leave of absence if such leave does not exceed 90 days or, if longer, so long as the employee’s
right to reemployment is guaranteed either by statute or by contract.

 

    6 

     

    

  

(d)        The holder of any
Option granted under the Plan shall have none of the rights of a stockholder with respect to the shares covered by the Option until
such stock shall be transferred to the holder upon the exercise of the Option.

 

6.           Grants
to Outside Directors. Awards, other than Incentive Stock Options, may be made to Outside Directors. The Committee shall
have the power and complete discretion to select Outside Directors to receive Awards. The Committee shall have the complete discretion,
under provisions consistent with Section 13, to determine the terms and conditions, the nature of the Award and the number of
shares to be allocated as part of each Award for each Outside Director. The grant of an Award shall not obligate the Company to
make further grants to the Outside Director at any time thereafter or to retain any person as a director for any period of time.

 

7.           Reload Options.
The Committee may grant Options with a reload feature. A reload feature shall only apply when the exercise price is paid by delivery
of Company Stock in accordance with Section 10. The Stock Option Agreement for the Option containing the reload feature shall provide
that the holder of the Option shall receive, contemporaneously with the payment of the exercise price in shares of Company Stock,
a Reload Option to purchase that number of shares of Company Stock equal to the sum of (i) the number of shares used to exercise
the Option, and (ii) with respect to Nonqualified Stock Options, the number of shares used to satisfy Applicable Withholding Taxes.
The terms of the Plan applicable to the Option shall be equally applicable to the Reload Option with the following exceptions:
the option price per share of Company Stock deliverable upon the exercise of the Reload Option (i) in the case of a Reload Option
that is an Incentive Stock Option being granted to a Participant who owns more than 10 percent of the total combined voting power
of all classes of stock of the Company or an Affiliate, shall be 110% of the Fair Market Value of a share of Company Stock on the
Date of Grant of the Reload Option, and (ii) in the case of a Reload Option which is an Incentive Stock Option being granted to
any other Participant, or which is a Nonqualified Stock Option, shall be the Fair Market Value of a share of Company Stock on the
Date of Grant of the Reload Option. The term of the Reload Option shall be the same as the Option which gave rise to the Reload
Option. If the exercise price of an Option containing a reload feature is paid in cash and not in shares of Company Stock, the
reload feature shall have no application with respect to such exercise.

 

8.           Stock Appreciation
Rights. Concurrently with the award of any Option to purchase one or more shares of Company Stock, the Committee may, in
its sole discretion, award to the optionee with respect to each share of Company Stock covered by an Option a related Stock Appreciation
Right, which permits the optionee to be paid the appreciation on the related Option in lieu of exercising the Option. The Committee
shall establish as to each award of Stock Appreciation Rights the terms and conditions to which the Stock Appreciation Rights are
subject; provided, however, that the following terms and conditions shall apply to all Stock Appreciation Rights:

 

(a)        A Stock Appreciation
Right granted with respect to an Incentive Stock Option must be granted together with the related Option. A Stock Appreciation
Right granted with respect to a Nonqualified Stock Option may be granted together with the grant of the related Option.

 

(b)        A Stock Appreciation
Right shall entitle the Participant, upon exercise of the Stock Appreciation Right, to receive in exchange an amount equal to the
excess of (i) the Fair Market Value on the date of exercise of Company Stock covered by the surrendered Stock Appreciation Right
over (ii) the Fair Market Value of Company Stock on the Date of Grant of the Stock Appreciation Right. The Committee may limit
the amount that the Participant will be entitled to receive upon exercise of a Stock Appreciation Right.

 

    7 

     

    

  

(c)        A Stock Appreciation
Right may be exercised only if and to the extent the underlying Option is exercisable, and a Stock Appreciation Right may not be
exercisable in any event more than 10 years after the Date of Grant.

 

(d)        A Stock Appreciation
Right may only be exercised at a time when the Fair Market Value of Company Stock covered by the Stock Appreciation Right exceeds
the Fair Market Value of Company Stock on the Date of Grant of the Stock Appreciation Right. The Stock Appreciation Right may provide
for payment in Company Stock or cash, or a fixed combination of Company Stock and cash, or the Committee may reserve the right
to determine the manner of payment at the time the Stock Appreciation Right is exercised.

 

(e)        To the extent a
Stock Appreciation Right is exercised, the underlying Option shall be cancelled, and the shares of Company Stock represented by
the Option shall no longer be available for Awards under the Plan.

 

9.           Restricted
Stock Awards.

 

(a)        The Committee may
make grants of Restricted Stock to a Participant. The Committee shall establish as to each award of Restricted Stock the terms
and conditions to which the Restricted Stock is subject, including the period of time before which all restrictions shall lapse
and the Participant shall have full ownership of the Company Stock. The Committee in its discretion may award Restricted Stock
without cash consideration. All Restricted Stock Awards shall be evidenced by a Restricted Stock Agreement setting forth all the
relevant terms of the Award.

 

(b)        Restricted Stock
may not be sold, assigned, transferred, pledged, hypothecated, or otherwise encumbered or disposed of until the restrictions have
lapsed or been removed. Certificates representing Restricted Stock shall be held by the Company until the restrictions lapse, and
the Participant shall provide the Company with appropriate stock powers endorsed in blank.

 

10.         Method of
Exercise of Options.

 

(a)        Options may be exercised
by the Participant (or his or her legal guardian or personal representative) by giving written notice of the exercise to the Company
at its principal office (attention of the Corporate Secretary) pursuant to procedures established by the Company. The notice shall
state the number of shares the Participant has elected to purchase under the Option. Such notice shall be accompanied, or followed
within 10 days of delivery thereof, by payment of the full exercise price of such shares. The exercise price may be paid in cash
by means of a check payable to the order of the Company or, if the terms of an Option permit, (i) by delivery or attestation of
Mature Shares (valued at their Fair Market Value) in satisfaction of all or any part of the exercise price, (ii) by delivery of
a properly executed exercise notice with irrevocable instructions to a broker to deliver to the Company the amount necessary to
pay the exercise price from the sale or proceeds of a loan from the broker with respect to the sale of Company Stock or a broker
loan secured by the Company Stock, (iii) by such other consideration as may be approved by the Committee from time to time
to the extent permitted by applicable law, or (iv) by any combination of (i) through (iii) hereof.

 

    8 

     

    

  

(b)        Unless prior to
the exercise of the Option the shares issuable upon such exercise have been registered with the Securities and Exchange Commission
pursuant to the Securities Act of 1933, the notice of exercise shall be accompanied by a representation or agreement of the individual
or entity exercising the Option to the Company to the effect that such shares are being acquired for investment purposes and not
with a view to the distribution thereof, and such other documentation as may be required by the Company, unless in the opinion
of counsel to the Company such representation, agreement or documentation is not necessary to comply with any such act.

 

(c)        The Company shall
not be obligated to deliver any Company Stock until the shares have been listed on each securities exchange or market on which
the Company Stock may then be listed or until there has been qualification under or compliance with such federal or state laws,
rules or regulations as the Company may deem applicable. The Company shall use reasonable efforts to obtain such listing, qualification
and compliance.

 

11.         Tax Withholding.
Each Participant shall agree as a condition of receiving an Award payable in the form of Company Stock to pay to the Employer,
or make arrangements satisfactory to the Employer regarding the payment to the Employer of, Applicable Withholding Taxes. Under
procedures established by the Committee or its delegate, a Participant may elect to satisfy Applicable Withholding Taxes by (i)
making a cash payment or authorizing additional withholding from cash compensation, (ii) delivering Mature Shares (valued at their
Fair Market Value), or (iii) if the applicable Stock Option Agreement or Restricted Stock Agreement permits, having the Company
retain that number of shares of Company Stock (valued at their Fair Market Value) that would satisfy all or a specified portion
of the Applicable Withholding Taxes.

 

12.         Transferability
of Awards. Awards shall not be transferable except by will or by the laws of descent and distribution.

 

13.         Administration
of the Plan.

 

(a)        The Committee shall
administer the Plan. Subject to the terms and conditions set forth in the Plan, the Committee shall have general authority to impose
any term, limitation, or condition upon an Award that the Committee deems appropriate to achieve the objectives of the Award and
of the Plan. The Committee may adopt rules and regulations for carrying out the Plan with respect to Participants and Beneficiaries.
The interpretation and construction of any provision of the Plan by the Committee shall be final and conclusive as to any Participant
or Beneficiary.

 

(b)        The Committee shall
have the power to amend the terms and conditions of previously granted Awards so long as the terms as amended are consistent with
the terms of the Plan and provided that the consent of the Participant is obtained with respect to any amendment that would be
detrimental to him or her, except that such consent will not be required if such amendment is for the purpose of complying with
Rule 16b-3 or any requirement of the Code or of other securities laws applicable to the Award.

 

(c)        The Committee shall
have the power and complete discretion (i) to delegate to any individual, or to any group of individuals employed by the Company
or any Affiliate, the authority to grant Awards under the Plan and (ii) to determine the terms and limitations of any delegation
of authority; provided, however, that the Committee may not delegate power and discretion to the extent such action would cause
noncompliance with, or the imposition of penalties, excise taxes, or other sanctions under, applicable corporate law, Rule 16b-3,
Code Section 162(m) or 409A, or any other applicable securities or tax law.

 

    9 

     

    

  

(d)        The
Committee shall have the power to include one or more provisions in the terms of Award grants to
provide for the cancellation of an outstanding Award in the event the Participant violates any agreement or other obligation dealing
with non-competition, non-solicitation or protection of the Company’s confidential information. 

 

14.         Change
in Capital Structure; Change of Control.

  

(a)        Change
in Capital Structure. In the event of a stock dividend, stock split, or combination of shares, share exchange, share
distribution, recapitalization or merger in which the Company is the surviving corporation, a spin-off or split-off of a subsidiary
or Affiliate, or other change in the Company’s capital stock (including, but not limited to, the creation or issuance
to shareholders generally of rights, options, or warrants for the purchase of common stock or preferred stock of the Company),
the aggregate number and kind of shares of stock or securities of the Company to be subject to the Plan and to Awards then outstanding
or to be granted, the maximum number of shares or securities which may be delivered under the Plan under Sections 3, 5(b), or
8, the per share exercise price of Options, the terms of Awards, and other relevant provisions shall be proportionately and appropriately
adjusted by the Committee in its discretion, and the determination of the Committee shall be binding on all persons. If the adjustment
would produce fractional shares with respect to any unexercised Option, the Committee may adjust appropriately and in a nondiscriminatory
manner the number of shares covered by the Option so as to eliminate the fractional shares.

 

(b)        Effect of Change
in Control on Options and Stock Appreciation Rights. Subject to the terms of any Employment Agreement, the Committee may provide
in an Award agreement for, or in the event of a Change in Control may take such actions as it deems appropriate to provide for,
any one or more of the following:

 

(i)           Accelerated
Vesting. The Committee may provide for the acceleration of the exercisability and vesting in connection with a Change in Control
of any or all outstanding Options and Stock Appreciation Rights and shares acquired upon the exercise thereof upon such conditions,
including termination of the Participant’s service prior to, upon, or following such Change in Control, and to such extent
as the Committee shall determine.

 

(ii)           Assumption
or Substitution. In the event of a Change in Control, the surviving, continuing, successor, or purchasing entity or parent
thereof, as the case may be (the “Acquiror”), may, without the consent of any Participant, either assume or
continue the Company’s rights and obligations under any or all outstanding Options and Stock Appreciation Rights or substitute
for any or all outstanding Options and Stock Appreciation Rights substantially equivalent options and stock appreciation rights
(as the case may be) for the Acquiror’s stock. Any Options or Stock Appreciation Rights which are neither assumed or continued
by the Acquiror in connection with the Change in Control nor exercised as of the time of consummation of the Change in Control
shall terminate and cease to be outstanding effective as of the time of consummation of the Change in Control.

 

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(iii)           Cash-Out.
The Committee may, in its sole discretion and without the consent of any Participant, determine that, upon the occurrence of a
Change in Control, each or any Option or Stock Appreciation Right outstanding immediately prior to the Change in Control shall
be canceled in exchange for a payment with respect to each vested share (and each unvested share, if so determined by the Committee)
of Company Stock subject to such canceled Option or Stock Appreciation Right in (A) cash, (B) stock of the Company or
of a corporation or other business entity a party to the Change in Control, or (C) other property which, in any such case,
shall be in an amount having a Fair Market Value equal to the excess of the Fair Market Value of the consideration to be paid per
share of Company Stock in the Change in Control over the exercise price per share under such Option or Stock Appreciation Right
(the “Spread”). In the event such determination is made by the Committee, the Spread (reduced by applicable
withholding taxes, if any) shall be paid to Participants in respect of the vested portion (and unvested portion, if so determined
by the Committee) of their canceled Options and Stock Appreciation Rights as soon as practicable following the date of the Change
in Control.

 

(iv)           Effect of
Change in Control on Restricted Stock Awards. The Committee may provide for the acceleration of the vesting of the shares subject
to the Restricted Stock Award upon such conditions, including termination of the Participant’s services to the Company prior
to, upon, or following such Change in Control, and to such extent as the Committee shall determine.

 

15.         Effective
Date. The effective date of the Plan is August 6, 2015. The Plan shall be submitted to the shareholders of the Company
for approval. Until (i) the Plan has been approved by the Company’s shareholders, and (ii) the requirements of any applicable
federal or state securities laws have been met, no Restricted Stock shall be awarded, and no Option shall be granted or exercisable,
that is not contingent on these events.

 

16.         Termination,
Modification. If not sooner terminated by the Board, this Plan shall terminate at the close of business on August 5, 2025.
No Awards shall be made under the Plan after its termination. The Board may amend or terminate the Plan as it shall deem advisable;
provided, however, that no change shall be made that increases the total number of shares of Company Stock reserved for issuance
pursuant to Awards granted under the Plan (except pursuant to Section 14), or reduces the minimum exercise price for Options, or
exchanges an Option for another Award, unless such change is authorized by the shareholders of the Company. Except as otherwise
specifically provided herein, a termination or amendment of the Plan shall not, without the consent of the Participant, adversely
affect a Participant’s rights under an Award previously granted to him or her.

 

17.         American
Jobs Creation Act of 2004.

 

(a)        It is intended that
the Plan comply in all applicable respects with Code Sections 409A(a)(2) through (4), as it may be amended from time to time, and
any rulings, regulations, or other guidelines promulgated under either or both statutes (such statutes, rulings, regulations and
other guidelines to be referred to collectively herein as “Section 409A”). This Plan, and any amendments thereto, shall
therefore be interpreted and implemented at all times so as to (i) ensure compliance with Section 409A and (ii) avoid any penalty
or early taxation of any payment or benefit under the Plan.

 

(b)        Anything herein
to the contrary notwithstanding, the Board shall approve and implement such amendments as it deems necessary or desirable to ensure
compliance with Section 409A and to avoid any penalty or early taxation of any payment or benefit under this Plan; provided, however,
that no change shall be made that increases the total number of shares of Company Stock reserved for issuance pursuant to Awards
granted under the Plan (except pursuant to Section 14), or reduces the minimum exercise price for Options, or exchanges an Option
for another Award, unless such change is authorized by the shareholders of the Company. No such amendment shall require the consent
of any Participant.

 

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18.        Interpretation
and Venue. Except to the extent preempted by applicable federal law, the terms of this Plan shall be governed by the laws
of the State of Delaware without regard to its conflict of laws rules.

 

    12

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