Document:

Exhibit 10.9

 

AIRCRAFT MORTGAGE

AND SECURITY AGREEMENT

 

 

 

between

 

 

JGB COLLATERAL, LLC, as collateral agent

 

and

 

AULT AVIATION, LLC

 

 

Aircraft:

 

One (1) Gulfstream Aerospace model GV-SP (G550)

(described on the International Registry Manufacturer's
List as

GULFSTREAM model Gulfstream GV-SP (G550)) aircraft

bearing manufacturer's serial number 5094

and United States Registration Number N623MS

 

 

 

Engines:

 

Two (2) Rolls Royce model BR700-710C4-11

(described on the International Registry Manufacturer's
List as

ROLLS ROYCE model BR710 engines) aircraft engines

bearing manufacturer's serial numbers 15287
and 15286

 

    	 	 	 

    	 

    

 

AIRCRAFT MORTGAGE AND SECURITY AGREEMENT

 

 

THIS AIRCRAFT MORTGAGE
AND SECURITY AGREEMENT ("Mortgage") dated as of the ____ day of November, 2022, by and between AULT AVIATION, LLC,
a limited liability company formed under the laws of the State of Nevada having its headquarters at 11411 Southern Highlands Parkway,
Suite 240, Las Vegas, NV 89141 ("Mortgagor"), and JGB COLLATERAL, LLC ("Collateral Agent"), a limited liability
company formed under the laws of the State of Delaware, having its headquarters at 21 Charles Street, Westport CT 06880, as collateral
agent for the Lenders (as defined below).

 

 

W I T N E S S E T H :

 

 

WHEREAS, Mortgagor
is entering into that certain Loan and Guaranty Agreement, dated as November 7, 2022, by and among (i) Mortgagor, (ii) BitNile Holdings,
Inc., a Delaware corporation, (iii) BitNile, Inc., a Nevada corporation, (iv) Third Avenue Apartments LLC, a Delaware limited liability
company, (v) Alliance Cloud Services, LLC, Delaware limited liability company (the parties identified in (i) – (v), the "Borrowers"),
(vi) Ault Lending, LLC, a California limited liability company, (vii) Ault & Company, Inc., a Delaware corporation, and (viii) Milton
"Todd" Ault, III, a natural person (the parties identified in (vi) – (viii), the "Guarantors" and together with
the Borrowers, the "Loan Parties"), the lenders from time-to-time parties thereto (the "Lenders") and the Collateral
Agent (as amended, restated, supplemented, replaced, increased, refinanced or otherwise modified from time to time, the "Loan Agreement")

 

WHEREAS, Collateral
Agent and Mortgagor wish that the payment of all amounts due under said Loan Agreement and the Note (as defined below) be secured by a
security interest and an international interest as herein provided;

 

NOW, THEREFORE, the
parties hereto agree and declare as follows:

 

For and in consideration
of the premises hereof and to secure (i) the performance of all Secured Obligations (as defined below), and (ii) payment of all amounts
due under the Loan Agreement, including the Note taken in conjunction therewith, Mortgagor does hereby consent to the creation of an international
interest under the Cape Town Treaty (as defined below) and does hereby mortgage, hypothecate, pledge, confirm and grant a security interest
in, lien upon and right of set-off against, the property described in Granting Clauses I through IV, inclusive, whether now owned or hereafter
acquired (which property, including all property hereafter specifically subjected to this Mortgage and any other agreement supplemental
hereto, is referred to herein as the "Mortgaged Property"), with the power granted to Collateral Agent, its successors and assigns
to dispose of the Mortgaged Property:

 

    	 	 	 

    	 

    

 

GRANTING CLAUSE I

 

All right, title and interest
of Mortgagor in and to the Aircraft, the Parts, the Engines (all as defined below) and their components and attachments, and all manuals
and log books and other documentation relating thereto, it being the intent that separate rights shall attach to the Airframe separate
and apart from the Engines for purposes of the Cape Town Treaty.

 

GRANTING CLAUSE II

 

All proceeds of insurance
from any loss of, or damage to, any properties mentioned or referred to in Granting Clause I and any other proceeds of any kind resulting
from any Event of Loss (as defined below) with respect thereto up to the amount of the Secured Obligations.

 

GRANTING CLAUSE III

 

All estate, right, title,
interest and claims whatsoever, at law, as well as in equity, which Mortgagor has or possesses on the date of this Mortgage or to which
Mortgagor may hereafter become legally or equitably entitled, from, in or to the properties described in Granting Clauses I and II, inclusive,
including, without limitation, the Associated Rights (as defined below), the right to receive any rent from the lease of the Aircraft
or any charter or management fees derived from the use of the Aircraft, together with all accounts receivable, general intangibles, proceeds
and chattel paper evidencing any of the foregoing.

 

GRANTING CLAUSE IV

 

All right, title and interest
of Mortgagor in any engine, maintenance program contracts with respect to the Engines required to be maintained under the Loan Agreement,
including any reserve account (or other trust account) included thereunder, if any.

 

TO HAVE AND TO HOLD,
the Mortgaged Property under and subject to the terms and conditions set forth herein, for the benefit and security of all Secured Obligations
and of all and singular the present and future holders thereof and to secure the payment and performance of the Secured Obligations, ratably
and without any preference, distinction or priority as to lien or otherwise of any such Secured Obligations over any other Secured Obligation
by reason of the difference in time of the actual making, issue, delivery, incurrence or sale of the respective Secured Obligations or
for any other reason whatsoever, except as herein otherwise expressly provided or referred to, and so that each and every Secured Obligation,
whether outstanding on the date of this Mortgage or hereafter issued and delivered or incurred shall have the same lien and security,
and so that each and every such Secured Obligation shall be equally and proportionately secured hereby as if it had been made, issued,
delivered and incurred simultaneously with the execution and delivery of this Mortgage.

 

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PROVIDED, HOWEVER,
and these presents are upon the condition that, unless and until an Event of Default has occurred and is continuing, neither Collateral
Agent nor its successors or assigns shall disturb Mortgagor's possession and use of the Aircraft, Engines, Parts or other property constituting
all or part of the Mortgaged Property, subject to the further covenants, conditions, uses and trusts, and except as specifically set forth
herein; and

 

IT IS HEREBY COVENANTED
AND AGREED by and between the parties hereto that the Mortgaged Property is to be held and applied on the further covenants, conditions,
uses and trusts set forth herein:

 

ARTICLE I - DEFINITIONS

 

1.1       Defined
Terms. As used in this Mortgage, except as otherwise indicated herein, the following terms shall have the meanings set forth below
or in the location indicated:

 

(a)       "Aircraft"
shall mean that certain Gulfstream Aerospace model GV-SP (G550) (described on the International Registry Manufacturer's List as GULFSTREAM
model Gulfstream GV-SP (G550)) aircraft bearing manufacturer's serial number 5094 and United States Registration Number N623MS, together
with all Engines and all Parts.

 

(b)       "Airframe"
shall mean (i) the Aircraft, not including the Engines or any APU, it being the intent that separate rights shall attach to the Airframe
separate and apart from the Engines for purposes of the Cape Town Treaty, and (ii) any and all Parts from time to time incorporated in,
installed on or attached to the Aircraft and any and all Parts removed therefrom so long as Collateral Agent shall retain an interest
therein in accordance with the applicable terms of this Mortgage after removal from the Aircraft.

 

(c)       "Associated
Rights" means all rights to payment or other performance by Mortgagor under an agreement which is secured by or associated with the
Aircraft.

 

(d)       "Cape
Town Treaty" shall have the meaning provided in 49 U.S.C. §44113(1).

 

(e)       "Engine(s)"
shall mean those certain Rolls Royce model BR700-710C4-11 (described on the International Registry Manufacturer's List as ROLLS ROYCE
model BR710) aircraft engines bearing manufacturer's serial numbers 15287 and 15286, and any replacement Engine purchased in accordance
with Paragraph 3.3(b) of this Mortgage.

 

(f)       "Event
of Default" shall have the meaning given to it pursuant to Paragraph 4.1 of this Mortgage.

 

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(g)       "Event
of Loss" with respect to the Aircraft or any Engine shall mean any of the following events:

 

(i)       loss
of the Aircraft or any Engine or the use thereof due to destruction, damage beyond repair or rendition of such Aircraft or Engine permanently
unfit for normal use from any reason whatsoever;

 

(ii)   
  any damage to the Aircraft or Engine (including those requiring the completion of an FAA Form 337, "Major Repair
And Alteration Statement") which results in an insurance settlement with respect to such Aircraft or Engine on the basis of
total loss;

 

(iii)     the
theft, disappearance, condemnation, confiscation, attachment, sequestration, distraint or seizure of, or requisition of title to or use
or possession of, such Aircraft or Engine for a period of ninety (90) consecutive days; or

 

(iv)     the
operation or location of the Aircraft, while under condemnation, confiscation, seizure, requisition or otherwise in any area excluded
from coverage by any insurance policy in effect with respect to the Aircraft required by the provisions of this Mortgage or of the Loan
Agreement.

 

(h)       "FAA"
shall mean the United States Federal Aviation Administration, or the agency or official of the United States of America at the time administering
the functions of the Federal Aviation Administration with respect to the regulation of aircraft.

 

(i)       "Federal
Aviation Act" shall mean Subtitle VII of Title 49 of the United States Code, as amended from time to time, or any similar legislation
of the United States enacted to supersede, amend or supplement such Act.

 

(j)       "IDERA"
shall mean an Irrevocable De-Registration and Export Request Authorization substantially in the form of Annex I hereto.

 

(k)       "Insurance
Certificate" shall mean a certificate of a Qualified Insurance Broker.

 

(l)       "International
Registry" shall mean the international registry established under the Cape Town Treaty.

 

(m)       "International
Registry Procedures" shall mean the official English language text of the Procedures for the International Registry issued by the
supervisory authority thereof pursuant to the Cape Town Treaty.

 

(n)       "International
Registry Regulations" shall mean the official English language text of the Regulations of the International Registry issued by the
supervisory authority thereof pursuant to the Cape Town Treaty.

 

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(o)     "Liens"
shall mean all liens, charges, security interests, national interests, prospective international interests, international interests, leaseholds
and encumbrances of every nature and description whatever, whether consensual or nonconsensual, including, without limitation, any rights
of third parties under third party agreements and irrevocable de-registration and export request authorizations.

 

(p)       "Loan
Agreement" has the meaning set forth in the recitals.

 

(q)       "Mortgage"
shall mean this Aircraft Mortgage and Security Agreement, as it from time to time may be supplemented or amended by any other supplements
or amendments executed by and between Mortgagor and Collateral Agent.

 

(r)       "Mortgaged
Property" shall have the meaning specified in the paragraph of introduction immediately preceding the Granting Clauses of this Mortgage.

 

(s)       "Note"
shall mean the promissory notes evidencing the loans and other obligations of the Borrowers under the under the Loan Agreement delivered
by the Borrowers pursuant to Paragraph 2.6 thereof.

 

(t)       "Parts"
shall mean all appliances, parts, instruments, avionics (including, without limitation, radio, radar, navigation systems or other electronic
equipment), appurtenances, accessories, furnishings, auxiliary power units, if any, and other equipment of whatever nature (but excluding
any complete Engine), so long as the same shall be (i) incorporated or installed in or attached to the Aircraft or any Engine, at any
time, or (ii) otherwise subject to this Mortgage.

 

(u)       "Person"
shall mean an individual, a corporation, a limited liability company, a partnership, an unincorporated organization, an association, a
joint-stock company, a joint venture, a trust, an estate or a government or any agency or political subdivision thereof.

 

(v)     "Qualified
Insurance Broker" shall mean an aircraft insurance broker, designated by Mortgagor and reasonably satisfactory to Collateral Agent.

 

(w)       "Re-registration
POA" shall have the meaning specified in Paragraph 3.1(a).

 

(x)       "Secured
Obligations" shall mean (i) all obligations of the Loan Parties under the Loan Agreement and the Note and (ii) all obligations of
Mortgagor under this Mortgage.

 

Capitalized terms not otherwise
defined in this Mortgage shall have the meanings set forth in the Loan Agreement.

 

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ARTICLE II - REPRESENTATIONS AND WARRANTIES

 

2.1       Ownership;
Priority Lien; No Violation. Mortgagor represents and warrants that on the date of execution of the Note and this Mortgage and for
as long as the Note and this Mortgage shall remain in full force and effect:

 

(a)       The
Aircraft and Engines then being subjected to this Mortgage are free and clear of all Liens, except the lien of this Mortgage and the IDERA,
and except for mechanics, materialmen's or similar statutory liens that arise in the normal course of business and that do not exceed
$250,000 in the aggregate at any time. For the purposes of this Mortgage, Mortgagor shall be deemed to be the legal title holder of the
Aircraft and Engines;

 

(b)       This
Mortgage has been duly executed and delivered by Mortgagor. This Mortgage is enforceable in accordance with its terms against Mortgagor
and third parties subject, as to enforcement, to bankruptcy, insolvency, reorganization and other laws affecting creditors' rights generally
and to general equity principles; and

 

(c)       Neither
the execution and delivery by Mortgagor of this Mortgage nor compliance by Mortgagor with any of the terms and provisions of this Mortgage
will, in any way, conflict with, result in any breach of, or constitute a default under, or result in the creation of any Lien (other
than the Lien permitted under this Mortgage) upon any property of Mortgagor under:

 

(i)       any
statute, rule or regulation of the United States of America;

 

(ii)      any
treaties, conventions or international regulations, including, without limitation, the Cape Town Treaty, the International Registry Regulations
and the International Registry Procedures;

 

(iii)     any
indenture, mortgage, chattel mortgage, deed of trust, conditional sales contract, bank loan, credit agreement or other agreement or instrument
to which Mortgagor is a party or by which it or any of its properties may be bound or affected; or

 

(iv)     any
order, writ, injunction, decree, judgment, award, determination, direction or demand of any federal, state, municipal or other governmental
department, court, commission, board, bureau, agency or instrumentality, domestic or foreign, which is binding on Mortgagor.

 

    	 	6	 

    	 

    

 

ARTICLE III - COVENANTS OF MORTGAGOR

 

3.1       Registration,
Maintenance and Operation of Aircraft and Engines.

 

(a)       Registration
and IDERA.

 

(i)       At
or prior to the Closing Date (as defined in the Loan Agreement), at its own cost and expense, and at all times during the term of this
Mortgage, Mortgagor shall (A) cause the Aircraft to be duly registered in the name of Mortgagor in accordance with the Federal Aviation
Act, and the Aircraft shall not be registered under the laws of any other country without the prior written consent of Collateral Agent;
and (B) cause this Mortgage to be registered as an international interest on the International Registry. In furtherance thereof, Mortgagor
shall consent, through its professional user entity, to international registration upon issuance of the request for consent by the International
Registry. At least sixty (60) days prior to the date that any registration of the Aircraft shall expire, Mortgagor shall, at its expense,
furnish (or cause to be furnished) to Collateral Agent a new or renewed (as the case may be) certificate of registration for the Aircraft,
verifying that the Aircraft is properly registered with the FAA in accordance with the requirements of this Paragraph 3.1. Accordingly,
the parties acknowledge and agree that, as a condition precedent to the funding of the loan described in the Loan Agreement, Mortgagor
shall execute and deliver in favor of Collateral Agent an irrevocable power of attorney in form(s) reasonably acceptable to Collateral
Agent, providing Collateral Agent with the power, in Collateral Agent's sole discretion, to re-register or renew the registration of the
Aircraft ("Re-registration POA") should Mortgagor fail to timely complete such process. Collateral Agent shall not exercise
the Re-registration POA unless Mortgagor has failed to provide evidence of the re-registration (or renewal of the registration) of the
Aircraft at least sixty (60) days prior to the date that any registration shall expire as described above. It is understood that Collateral
Agent shall have the right to exercise its powers under the Re-registration POA, but shall not be obligated to do the same. In the event
this Mortgage is properly assigned by Collateral Agent, Mortgagor agrees to execute a new Re-registration POA in favor of such assignee
in a form substantially similar to the original Re-registration POA at Collateral Agent's (or such assignee's) sole expense. When the
Secured Obligations shall have been indefeasibly and fully paid, then the Re-registration POA shall automatically terminate and be deemed
to cease to exist.

 

(ii)      Mortgagor
shall not allow the name of any Person other than Collateral Agent to be placed on the Airframe and Engines as a designation that might
be interpreted as a lien thereon, provided, that Mortgagor may cause the Aircraft to be lettered and otherwise marked in an appropriate
manner for convenience of identification of the interest therein of Mortgagor.

 

(iii)     Mortgagor
shall not (A) consent to any Person other than Collateral Agent making any registrations in the International Registry in relation to
the Airframe and Engines, or (B) execute and deliver any irrevocable de-registration and export request authorization to any Person other
than the IDERA in favor of Collateral Agent.

 

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(iv)       Mortgagor
shall execute and deliver the IDERA, and cause the same to be filed in accordance with the Federal Aviation Act.

 

(b)       Maintenance.
After the Closing Date, and except as may otherwise be agreed in writing by Mortgagor and Collateral Agent, Mortgagor, at its own cost
and expense during the term of the Loan Agreement and until full and complete payment of the Note and of all amounts due or to become
due under the Loan Agreement, shall, or shall cause, the following to occur:

 

(i)       maintain
and keep the Aircraft in as good condition and repair as it is on the date of this Mortgage, ordinary wear and tear excepted and service,
repair, maintain, overhaul, test, or cause the same to be done to the Aircraft so as to keep the Aircraft in such operating condition
as is required by the maintenance service program required to be maintained under the Loan Agreement, and as may be necessary to enable
the Certificate of Airworthiness of the Aircraft to be maintained in good standing and at all times be in compliance with the regulations
of the FAA and Applicable Law.

 

(ii)       maintain
and keep the Aircraft in good order and repair and in airworthy condition in accordance with the requirements of each of the manufacturers'
manuals and mandatory service bulletins. In furtherance thereof, Mortgagor, at Mortgagor's expense, shall maintain the Engines under a
maintenance service program reasonably acceptable to Collateral Agent, and will make the monthly payments based upon hourly usage of the
Engines thereunder. Mortgagor shall also use its reasonable efforts to cause the provider of the maintenance service program to provide
Collateral Agent with an aircraft interest holder's agreement acknowledging (a) such provider's agreement to notify Collateral Agent of
Mortgagor's failure to make any payment, and failure to cure within the applicable notice and cure period, with respect to the maintenance
service program, (b) in the event Mortgagor fails to make such payments within such notice and cure period, Collateral Agent's right (but
not the obligation) to make such payments in order to keep the maintenance service program in continuous good standing and fully funded,
and (c) such provider's acknowledgement of and consent to Collateral Agent's interest in the maintenance service program. Mortgagor shall
also utilize a third-party computerized maintenance tracking program such as CMP, at Mortgagor's expense, and shall authorize the maintenance
tracking provider to provide read-only access to all maintenance reports to Collateral Agent.

 

(iii)     replace
in or on the Airframe, any and all Engines, parts, appliances, instruments or accessories which may be worn out, lost, destroyed or otherwise
rendered unfit for use unless such parts or systems are reasonably deemed by Mortgagor to be outdated or unnecessary and not worthy of
replacement.

 

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(iv)     cause
to be performed, on all parts of the Aircraft, all applicable mandatory Airworthiness Directives, and mandatory manufacturers' service
bulletins the compliance date of which shall occur while this Mortgage is in effect.

 

(v)       be
responsible for all required inspections of the Aircraft and licensing or re-licensing of the Aircraft in accordance with all applicable
FAA and other governmental requirements. Mortgagor shall at all times cause the Aircraft to have on board and in a conspicuous location
a current Certificate of Airworthiness issued by the FAA.

 

(vi)       ensure
that all inspections, maintenance modifications, repairs, and overhauls of the Aircraft (including those performed on the Airframe, the
Engines or any components, appliances, accessories, instruments or equipment) shall be performed by personnel authorized by the FAA to
perform such services.

 

(vii)       if
any Engine, component, appliance, accessory, instrument, equipment or part of the Aircraft shall reach such a condition as to require
overhaul, repair or replacement, for any cause whatever, and such part or system is not to be disabled or removed in accordance with Paragraph
3.1(b)(iii), in order to comply with the standards for maintenance and other provisions set forth in this Mortgage, Mortgagor may:

 

(1)       Install
on or in the Aircraft such items of substantially the same type in temporary replacement of those then installed on the Aircraft, pending
overhaul or repair of the unsatisfactory item; provided, however, that such replacement items must be in such a condition as to be permissible
for use upon the Aircraft in accordance with the standards for maintenance and other provisions set forth in this Mortgage; provided further,
however, that Mortgagor at all times must retain unencumbered title to any and all items temporarily removed; or

 

(2)       Install
on or in the Aircraft such items of substantially the same type and value in permanent replacement of those then installed on the Aircraft;
provided, however, that such replacement items must be in such condition as to be permissible for use upon the Aircraft in accordance
with the standards for maintenance and other provisions set forth in this Mortgage; provided further, however, that Mortgagor must first
comply with each of the requirements below.

 

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(viii)       in
the event Mortgagor shall be required or permitted to install upon the Airframe or any Engine, components, appliances, accessories, instruments,
engines, equipment or parts in permanent replacement of those then installed on the Airframe or such Engine, Mortgagor may do so provided
that, in addition to any other requirements of this Mortgage:

 

(a)       Collateral
Agent is not divested of its security interest in and lien upon any item removed from the Aircraft and that no such removed item shall
be or become subject to the lien or claim of any person, unless and until such item is replaced by an item of the type and condition required
by this Mortgage, title to which, upon its being installed or attached to the Airframe, is validly vested in Mortgagor, free and clear
of all liens and claims, of every kind or nature, of all persons other than Collateral Agent;

 

(b)       Mortgagor's
title to every substituted item shall immediately be and become subject to the security interests and liens of Collateral Agent and each
of the provisions of this Mortgage, and each such item shall remain so encumbered and so subject unless it is, in turn, replaced by a
substitute item in the manner permitted in this Mortgage; and

 

(c)       If
an item is removed from the Aircraft and replaced in accordance with the requirements of this Mortgage, and if the substituted item satisfies
the requirements of this Mortgage, including the terms and conditions above, then the item which is removed shall thereupon be free and
clear of the security interests and liens of Collateral Agent.

 

(ix)       in
the event that any Engine, component, appliance, accessory, instrument, equipment or part is permanently installed upon the Airframe,
and is not in substitution for or in replacement of an existing item, such additional item shall be considered as an accession to the
Airframe.

 

(x)       Mortgagor
shall not interchange any part or parts of the Aircraft with other aircraft as may be leased, owned, operated and maintained by Mortgagor.

 

(c)       Operations.
Mortgagor shall not permit the Aircraft and any Engine to be maintained, serviced, repaired, overhauled, tested, used or operated in violation
of any law or any rule, regulation or order of any governmental authority having jurisdiction thereover, or in violation of any airworthiness
certificate, license or registration relating to the Aircraft or any Engine issued by any such authority, or in violation or breach of
any representation or warranty made with respect to obtaining insurance on the Aircraft or any term or condition of such insurance policy.
Except as specified in the Loan Agreement, Mortgagor shall not sell, assign, mortgage, relinquish possession, or lease the Mortgaged Property
to any other Party, without Collateral Agent's prior written consent. The forgoing shall not preclude a temporary transfer of possession
of the Aircraft to a maintenance provider for purposes of complying with the requirements hereof in the normal course of business. Mortgagor
shall not operate the Aircraft (or cause the Aircraft to be operated) under a Part 135 Certificate or in a manner that would require a
Part 135 Certificate without the prior written consent of Collateral Agent, not to be unreasonably withheld or delayed. Collateral Agent
consents to the management and charter operations for the Aircraft by GREAT WESTERN AIR, LLC aka Cirrus Aviation.

 

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3.2       Alterations,
Modifications and Additions.

 

(a)       Alterations,
Modifications and Additions. Mortgagor, at its own cost and expense, shall make such alterations and modifications in and additions
to the Aircraft and Engines as may be required from time to time to meet all applicable standards of the Federal Aviation Administration
or other governmental authority having jurisdiction over the Aircraft and Engines.

 

So long as no Event of Default
shall have occurred and be continuing, Mortgagor, at its own cost and expense, and from time to time, may make such alterations and modifications
in, and additions to, the Aircraft and any Engine as Mortgagor may deem desirable in the proper conduct of its business; provided, that
no such alteration, modification or addition shall diminish the value or utility of the Aircraft or such Engine, or impair the condition
or airworthiness thereof, below the value, utility, condition or airworthiness thereof immediately prior to such alteration, modification
or addition assuming the Aircraft or such Engine were measured by the value, utility and airworthiness, and in the condition and state
of repair required to be maintained by the terms hereof. All Parts incorporated or installed in or attached to or added to the mortgaged
Aircraft or any mortgaged Engine as the result of any alteration, modification or addition shall conform to the requirements of Paragraph
3.2(a) hereof and, without further act or deed, shall become subject to the lien of this Mortgage and the international interest in favor
of Collateral Agent.

 

So long as no Event of Default
shall have occurred and be continuing, Mortgagor, at any time, may remove any Part from the Aircraft or Engines if:

 

(i)       such
Part is in addition to, and not in replacement of, or substitution for, any Part incorporated or installed in or attached to the Aircraft
or any Engine;

 

(ii)       such
Part is not required to be incorporated or installed in, or attached or added to, the Aircraft or such Engine pursuant to the terms of
Paragraph 3.1(b), 3.1(c) or Paragraph 3.2 hereof; and

 

(iii)       such
Part can be readily removed from the Aircraft or any Engine without diminishing or impairing the value, utility, condition and airworthiness
of the Aircraft or such Engine.

 

Upon any such removal, such Part shall cease to
be a "Part" within the meaning hereof.

 

(b)       Liability
of Collateral Agent. Collateral Agent shall not bear any liability or cost for any alteration, modification or addition, or for any
grounding or suspension of certification of the Aircraft or any Engine, or for loss to Mortgagor of any revenue in respect of the Aircraft
or any Engine, however arising pursuant to this Paragraph 3.2.

 

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3.3       Event
of Loss.

 

(a)       Event
of Loss with Respect to the Aircraft. Upon the occurrence of an Event of Loss with respect to the Aircraft, Mortgagor shall give Collateral
Agent prompt written notice thereof, stating the circumstances of such Event of Loss. No later than one hundred twenty (120) days after
the date of such Event of Loss (or ten (10) days after receipt of insurance proceeds, whichever is sooner), Mortgagor shall repay the
outstanding principal balance under the Loan Agreement and the Note and all other Secured Obligations in full with no Prepayment Premium.
In the event that the insurance proceeds have not been received within one hundred twenty (120) days, the time allowable for payment to
the Collateral Agent will extended for up to ninety (90) additional days if and such Event of Loss is a covered event under the applicable
insurance and Mortgagor is diligently pursuing coverage.

 

(b)       Event
of Loss with Respect to a Mortgaged Engine. Upon the occurrence of an Event of Loss with respect to any Engine, which Event of Loss
does not constitute an Event of Loss with respect to the Aircraft, Mortgagor shall give Collateral Agent prompt written notice thereof,
stating the circumstances of such Event of Loss. As soon as possible, but no later than ninety (90) days after the date of such Event
of Loss, Mortgagor shall:

 

(i)       repay
the outstanding principal balance under the Note and all other Secured Obligations in full with no Prepayment Premium, or

 

(ii)     enter
into, at the expense of Mortgagor, an agreement in all respects satisfactory to Collateral Agent for the purchase of a new Engine, through
the Maintenance Contract Program or otherwise, compatible with the Aircraft to replace the Engine which is the subject of such Event of
Loss.

 

Upon delivery of such new
Engine pursuant to such agreement, Mortgagor shall cause such new Engine to be installed on the Aircraft and specifically subject such
new Engine to the lien hereof and the international interest in favor of Collateral Agent, delivering to Collateral Agent all documents
required in connection therewith and consenting to the registration of an international interest with the International Registry with
respect to such new Engine. Collateral Agent shall execute and deliver all documents required or useful in connection with releasing the
replaced Engine from the lien of this Mortgage and shall discharge all registrations with the International Registry with respect to the
replaced Engine.

 

3.4       Insurance.
At or prior to the Closing Date, Mortgagor will carry, at the cost and expense of Mortgagor, public liability insurance (including, without
limitation, passenger legal liability), property damage insurance (including, without limitation, airport property damage liability and
contractual liability), and all-risk ground and flight aircraft hull insurance (including, without limitation, war risk, hijacking and
similar perils insurance), all as described more fully in an Agreement to Provide Insurance delivered by Mortgagor to Collateral Agent
of even date herewith. Mortgagor shall deliver to Collateral Agent an Insurer's Certificate as to the due compliance with the insurance
provisions of this Paragraph 3.4.

 

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3.5       Location
of Aircraft. Mortgagor shall at all times keep the Aircraft registered under the laws of the United States of America. Mortgagor shall
base the Aircraft in Las Vegas, Nevada, and Mortgagor shall not operate or locate the Aircraft or any Engine or permit the Aircraft or
any Engine to be operated or located in:

 

(a)       any
area or on any route excluded from coverage under the provisions of any insurance policy required by the terms of Paragraph 3.4 above;

 

(b)      any
recognized, or, in Collateral Agent's reasonable judgment, threatened area of hostilities unless fully covered to Collateral Agent's reasonably
satisfaction by war risk insurance; or

(c)      anywhere
(i) not permitted under the applicable insurance policies covering the Aircraft and (ii) outside of the United States of America (excluding
any U.S. territory, possession or offshore insular area), Canada, member states of the European Union, the United Kingdom, Switzerland,
Israel, Japan, Australia, New Zealand, Hong Kong, United Arab Emirates, Kuwait, South Korea, Costa Rica, the Cayman Islands or such other
country with the written consent of the Collateral Agent, which consent may be withheld in Collateral Agent’s discretion.

 

3.6       Application
of Insurance Proceeds.

 

(a)       Proceeds
of insurance received as a result of an Event of Loss with respect to the Aircraft shall be applied by Collateral Agent to payment of
the Secured Obligations in the manner provided in Paragraph 4.5 hereof.

 

(b)       Proceeds
of property damage insurance payable as a result of an Event of Loss of the Engine (but not the whole Aircraft) shall, if received, be
held by Collateral Agent until Mortgagor shall have decided whether or not to purchase a new engine as required by Paragraph 3.3(b). If
Mortgagor elects to replace the Engine, then, upon placing such an order, such proceeds, upon the request of Mortgagor, shall be applied
directly to payment (including any progress payment) for such repair or the purchase of a replacement Engine. Unless a Default or Event
of Default shall have occurred and be continuing, such proceeds (or balance thereof remaining after payment in full for such repair or
such replacement Engine) shall be paid to Mortgagor upon completion of such repair or installation of the replacement Engine on the Aircraft
and its subjection to the lien hereof and international interest in favor of Collateral Agent as required by Paragraph 3.3(b) above.

 

(c)       Unless
a Default or Event of Default shall have occurred and be continuing and except as provided in Paragraph 3.6(d), any proceeds of insurance
received as a result of any damage or loss not constituting an Event of Loss and in an amount of $1,000,000 or less (per occurrence) shall
be held adjusted by and paid to Mortgagor, not to Collateral Agent and Mortgagor jointly. Any proceeds of insurance in excess of $1,000,000
received by Collateral Agent as a result of any damage or loss not constituting an Event of Loss, shall be held by Collateral Agent or
upon the request of Mortgagor, applied by Collateral Agent directly to payment (including any progress payment) for any repair or replacement
required by the terms hereof. Unless a Default or Event of Default shall have occurred and be continuing, after completion of, and payment
for, such repair or replacement, such proceeds, or any excess over the cost of such repair or replacement if such proceeds shall have
been applied by Collateral Agent to payment for such repair or replacement, shall be forthwith paid over to Mortgagor by Collateral Agent.

 

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(d)       Unless
a Default or Event of Default shall have occurred and be continuing, any proceeds of insurance received as a result of any damage or loss
to Parts which Mortgagor is entitled to remove pursuant to Paragraph 3.2(a) above without replacement shall be paid to Mortgagor directly,
not to Mortgagor and Collateral Agent jointly.

 

3.7       Liens
on Mortgaged Property; Taxes.

 

(a)       Mortgagor
shall always maintain this Mortgage as a first priority security interest, international interest, and lien upon the Mortgaged Property
and Mortgagor shall not consent to any security interest, international interest or lien upon the Mortgaged Property other than the one
in favor of Collateral Agent with respect to the Airframe and Engines. Mortgagor shall not directly or indirectly create, assume or permit,
or suffer to be created and to exist, any Lien on or with respect to any Mortgaged Property, title thereto or any interest therein except
as permitted under Paragraph 2.1. Mortgagor shall promptly, at its own cost and expense, take such action as may be necessary to duly
discharge any Lien on or with respect to any Mortgaged Property, title thereto or any interest therein in violation hereof.

 

(b)       Mortgagor
shall pay and indemnify Collateral Agent for, and hold Collateral Agent harmless from and against, all income (other than Collateral Agent's
income), franchise, gross receipts, rental, sales, use, excise, personal property, ad valorem, value added, leasing, leasing use,
stamp, landing, airport use or other taxes, levies, imposts, duties, charges, fees or withholdings of any nature, together with any penalties,
fines or interest thereon (the "Tax(es)") arising out of transactions contemplated by this Mortgage and imposed against Collateral
Agent, Mortgagor or the Aircraft, or any part thereof, by the United States of America, any foreign government, any state, municipal or
local subdivision, any agency or instrumentality thereof or any taxing authority upon or with respect to the Aircraft, or any part thereof,
or upon the ownership, delivery, leasing, possession, use, operation, return, transfer or release thereof, or upon the rentals, receipts
or earnings arising therefrom, or upon or with respect to this Mortgage. If a claim is made against Collateral Agent for any Tax that
is subject to indemnification hereunder, Collateral Agent shall notify Mortgagor promptly within thirty (30) days after Collateral Agent's
receipt of such written notice, and Mortgagor will pay such Tax promptly and in no event later than thirty (30) days after such notice;
provided, however, that if Mortgagor elects to contest or assume the defense as therein described and provided that Mortgagor can testify
such Tax would not subject the Aircraft to risk of seizure, and Mortgagor so contests or defends in a timely manner and within the legal
delays allowed to do so, Mortgagor's obligation to pay or reimburse shall, if applicable laws allow, be postponed until a settlement of
the matter or a decision is rendered on the defense or contestation. Mortgagor's contestation or defense shall be at Mortgagor's sole
cost and expense. If the governmental authority or agency seeking to collect requires any payment to be made or any security assurance
or guarantee to be furnished as a condition of contestation or defense, Mortgagor shall pay or furnish same or cause the payment or furnishing
thereof. In case any report or return is required to be made with respect to any Taxes, Mortgagor will either (after notice to Collateral
Agent) make such report or return in such manner as will show the ownership of the Aircraft in Mortgagor and send a copy of such report
or return to Collateral Agent or will notify Collateral Agent of such requirement and make such report or return in such manner as shall
be satisfactory to Collateral Agent. Collateral Agent agrees to cooperate fully with Mortgagor in the preparation of any such report or
return. Notwithstanding the foregoing, Mortgagor shall not indemnify or be responsible for any Taxes related to the income of Collateral
Agent or Collateral Agent's franchise or other doing business taxes. Further, Mortgagor shall not be responsible for any Taxes associated
with any assignment of the Mortgage or any other Loan Document by Collateral Agent.

 

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(c)       Transfers.
The Mortgagor may not sell, transfer, assign or otherwise dispose of all or any portion of the Mortgaged Property unless the Borrowers
have made the repayments required under Paragraph 2.2(e) of the Loan Agreement.

 

3.8       Further
Assurances. Mortgagor, from time to time, shall perform or execute and deliver, or cause to be performed or executed and delivered,
all such further and other acts, conveyances, transfers, instruments and assurances as may be reasonably appropriate, or as may be requested
by Collateral Agent, for the better mortgaging, hypothecating, confirming, pledging, granting and perfecting of a lien and security interest
unto Collateral Agent or a registered international interest in favor of Collateral Agent, in all or in part, of the Mortgaged Property
or for facilitating the execution of the lien or international interest created by this Mortgage or for securing to Collateral Agent the
benefit hereof and of the rights and remedies created hereby. Mortgagor, at all times, shall defend and protect the lien of this Mortgage
on the Mortgaged Property against the enforcement of all Liens, claims, penalties and rights asserted by any and all Persons whatsoever
except for those permitted under Paragraph 2.1.

 

3.9       Recording
and Filing. Without limiting Paragraph 3.8 above, Collateral Agent, at the cost and expense of Mortgagor, shall cause this Mortgage
and any and all additional instruments which shall be executed pursuant to the terms hereof, so far as permitted by applicable laws and
regulations, on and at all times after the date of execution to be kept, and this Mortgage filed and recorded in such places as may be
required under applicable law, or as Collateral Agent, in its reasonably discretion, may reasonably request to perfect and preserve the
lien of this Mortgage on all of the Mortgaged Property and to protect the security and the rights and remedies of Collateral Agent hereunder.
Without limiting the foregoing, Mortgagor shall do, or cause to be done, any and all acts and things as may be reasonably requested by
Collateral Agent to (i) perfect the lien of this Mortgage pursuant to the Uniform Commercial Code as in effect in any jurisdiction with
respect to any portion of the Mortgaged Property subject to the provisions of such Code and (ii) consent to and maintain the registered
international interest in favor of Collateral Agent under the Cape Town Treaty. Mortgagor shall bear the entire cost and expense of all
actions required to be taken pursuant to Paragraph 3.8 and 3.9 hereof for the initial filings. In the event the Collateral Agent elects
to do additional filings for any reason, such filings shall be at Collateral Agent's sole expense.

 

    	 	15	 

    	 

    

 

3.10       Suits
to Protect the Mortgaged Property. Collateral Agent shall have power to institute and to maintain, at Mortgagor's cost and expense,
such suits and proceedings as Collateral Agent may deem expedient, in Collateral Agent's commercially reasonable discretion, to prevent
any impairment of the Mortgaged Property by any acts which may be unlawful or in violation of this Mortgage or to preserve or protect
the interests of Collateral Agent in the Mortgaged Property, including power to institute and maintain suits or proceedings to restrain
the enforcement of or compliance with any legislative or other governmental enactment, rule or order that may be unconstitutional or otherwise
invalid, if the enforcement of, or compliance with, such enactment, rule or order would impair the security hereunder or be prejudicial
to the interests of Collateral Agent. Notwithstanding the foregoing, Mortgagor shall not be responsible for the costs of any suit instituted
by Collateral Agent without Mortgagor's knowledge and without granting Mortgagor a reasonable opportunity to resolve the relevant issue
in another manner.

 

3.11       Inspection.
Mortgagor shall permit the Collateral Agent to inspect the Mortgaged Property no more than once per year (unless an Event of Default has
occurred and is continuing) upon advanced notice by Lender of at least forty-eight (48) hours, and during normal business hours; provided
that Lender shall make best efforts not to interfere with the operations of the Aircraft.  Collateral Agent shall have no duty to
make any such inspection and shall not incur any liability or obligations by reason of not making any such inspection. 

 

ARTICLE IV - DEFAULT AND REMEDIES

 

4.1       Events
of Default. If one (1) or more of the following events (each an "Event of Default") shall occur:

 

(a)       The
occurrence of an "Event of Default" under the Loan Agreement;

 

(b)      There
occurs an Event of Loss and (i) the Mortgagor fails to comply with applicable provisions of Section 3.3 or (ii) in the reasonable opinion
of the Collateral Agent the Aircraft cannot be returned to service within 120 days after such Event of Loss;

 

(c)       This
Mortgage, as a result of any act or omission of Mortgagor, shall cease to be in full force and effect or shall cease to give Collateral
Agent the rights and interests purported to be created hereunder, including, without limitation, the failure of the interests granted
hereunder to constitute a registered international interest in the Aircraft subject to the Cape Town Treaty;

 

(d)       The
failure by Mortgagor to maintain the insurance coverage on the Aircraft in accordance with Paragraph 3.4; or

 

(e)       Default
shall be made in the due observance or performance of any other term, covenant or agreement contained in any other agreement or mortgage
between Mortgagor and Collateral Agent, including, without limitation, the occurrence of an Event of Default in any other Loan Documents
(as defined in the Loan Agreement);

 

then, upon the happening of any of the foregoing
Events of Default, the Note and all amounts under the Loan Agreement shall become and be immediately due and payable upon Collateral Agent
having given Borrower notice of such acceleration, provided, however, that upon the occurrence of an Event of Default specified in Section
7.5 of the Loan Agreement, all Secured Obligations shall automatically become due and payable without notice or demand of any kind, with
Mortgagor hereby expressly waiving any presentment, demand, protest or other notice of any kind.

 

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4.2       Rights
Against Mortgaged Property.

 

(a)       If
an Event of Default shall have occurred and be continuing, then and in every such case, Collateral Agent, in addition to all other rights
and remedies available hereunder, shall have, at law or in equity or by statute, each of the following rights and remedies, none of which
is intended to be exclusive of any other right or remedy, and each of which may be exercised either singly or, to the extent permitted
by applicable law, concurrently with any one or more of the other rights or remedies:

 

(i)       To
the extent applicable, Collateral Agent shall have the rights and remedies of a secured party under the Cape Town Treaty and/or the Uniform
Commercial Code as enacted in any jurisdiction in which any of the Mortgaged Property may be located, including, without limitation, all
of the rights and remedies set forth in Articles 12, 13, 15 and 20 of the Cape Town Treaty, and Mortgagor hereby consents to the same.
In any case, Collateral Agent may immediately, directly or by such agent as it may appoint, without demand of performance and (to the
extent permitted by applicable law) without notice of its intention to sell or of time or place of sale or of redemption or other notice
or demand whatsoever to Mortgagor, all of which are hereby expressly waived, and without advertisement, sell at public or private sale
or otherwise realize upon, the whole or, from time to time, any part of the Mortgaged Property. If notice of any sale or other disposition
is required by law to be given, Mortgagor hereby agrees that a notice sent at least ten (10) days before the time of any intended de-registration
and export of the Mortgaged Property or intended public sale or after which any private sale or other disposition of the Mortgaged Property
is to be made shall be reasonable notice of such sale or other disposition. Whenever Collateral Agent shall demand possession of any of
the Mortgaged Property pursuant to this Article IV, Mortgagor, at its own cost and expense, shall deliver, or cause to be delivered, such
Mortgaged Property without risk or expense to Collateral Agent, to such airport or airports in the United States of America, as shall
be designated by Collateral Agent or such other place as may be mutually agreed upon by Mortgagor and Collateral Agent. In addition, Mortgagor
shall provide, without expense to Collateral Agent, storage facilities for such Mortgaged Property. At the request of Collateral Agent,
Mortgagor shall promptly execute and deliver to Collateral Agent such instruments or other documents as Collateral Agent may deem necessary
or advisable to enable Collateral Agent or an agent or representative designated by Collateral Agent, at such time or times and place
or places as Collateral Agent may specify, to obtain possession of all or any part of the Mortgaged Property;

 

(ii)       Collateral
Agent, either after entry or without entry, may proceed by suit or suits, at law or in equity, to foreclose this Mortgage and to sell
all or, from time to time, any part of the Mortgaged Property under the judgment or decree of a court of competent jurisdiction;

 

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(iii)       Collateral
Agent may procure the de-registration of the Mortgaged Property whether by utilizing the IDERA or otherwise;

 

(iv)       Collateral
Agent may procure the export and shipment transfer of the Mortgaged Property from the territory in which it is situated;

 

(v)       Collateral
Agent may take legal proceedings for the appointment of a receiver or receivers (to which Collateral Agent shall be entitled as a matter
of right) to take possession of the Mortgaged Property pending the sale thereof pursuant either to the power of sale given in this Paragraph
4.2 or to a judgment, order or decree made in any judicial proceeding or the foreclosure or involving the enforcement of this Mortgage;

 

(vi)       Collateral
Agent, either directly or by such agent as it may appoint or by means of a receiver appointed by a court therefor, may peacefully and
lawfully enter upon the premises of Mortgagor and any other premises where any of the Mortgaged Property may be located, take immediate
possession of the Mortgaged Property and exclude Mortgagor and all other Persons therefrom, using all necessary proper and legal force
so to do;

 

(vii)       Collateral
Agent may appoint a trustee to take title to all or part of the Mortgaged Property on behalf of Collateral Agent and to exercise on behalf
of Collateral Agent any or all of its remedies hereunder, and Mortgagor shall execute and deliver all such instruments and documents as
Collateral Agent may reasonably request in connection therewith; and

 

(viii)     Upon
every taking of possession pursuant to this Paragraph 4.2, Collateral Agent from time to time may make all such reasonable expenditures
for maintenance, insurance, repairs, replacements, alterations, additions and improvements to and of the Mortgaged Property as Collateral
Agent may deem proper. In each such case, Collateral Agent shall have the right to hold, use operate, store, lease, control or manage
the Mortgaged Property, and to exercise all rights and powers of Mortgagor relating to the Mortgaged Property, as Collateral Agent shall
deem appropriate, including the right to enter into any and all such agreements with respect to the use, operation, storage, leasing,
control or management of any of the Mortgaged Property as Collateral Agent may determine.

 

(b)       No
delay or omission of Collateral Agent in the exercise of any right, power, remedy or privilege conferred hereunder shall impair any such
right, power, remedy or privilege or be construed to be a waiver of any Default or Event of Default or acquiescence therein; and every
right, power and privilege given by this Mortgage to Collateral Agent may be exercised from time to time and as often as may be deemed
expedient by Collateral Agent. No remedy for the enforcement of the rights of Collateral Agent shall be exclusive of or dependent on any
other such remedy, but any one or more of such remedies from time to time may be exercised independently or in combination.

 

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4.3       Relief
Pending Final Determination. Without limiting the generality of Collateral Agent's other remedies set forth in this Paragraph 4, in
the event Collateral Agent adduces evidence of an Event of Default by Mortgagor, Collateral Agent may, pending final determination of
its claim, obtain from a court speedy (as defined in Article 20 of the Cape Town Treaty) relief in the form of such one or more of the
following orders as Collateral Agent requests:

 

(a)       preservation
of the Mortgaged Property and its value;

 

(b)       possession,
control or custody of the Mortgaged Property;

 

(c)       immobilization
of the Mortgaged Property;

 

(d)       lease
or, except where covered by sub-paragraphs (a) to (c), management of the Mortgaged Property and the income therefrom; and

 

(e)       if
at any time Mortgagor and Collateral Agent specifically agree, sale and application of proceeds therefrom.

 

Nothing in this Paragraph
4.3 shall limit the availability to Collateral Agent of other forms of interim relief.

 

4.4       Provisions
Regarding Sale. Upon any sale of any of the Mortgaged Property, in connection with the exercise of remedies upon and during the continuation
of an Event of Default, whether made under the power of sale hereby given or under judgment, order or decree in any judicial proceedings,
for the foreclosure or involving the enforcement of this Mortgage, to the extent permitted by applicable law:

 

(a)       Collateral
Agent or its representative may bid for and purchase the property being sold and, upon compliance with the terms of sale, may hold, retain
and possess and dispose of such property in its absolute right without further accountability, and, in paying the purchase money therefor,
may assign to Mortgagor in lieu of cash all or any part of the Note or other Secured Obligations then outstanding or claims for interest
thereon, at par, and the Note, in case the portion thereof as assigned shall be less than the amount due thereon, shall be returned to
Collateral Agent after being appropriately stamped to show partial payment;

 

(b)       Collateral
Agent or its representative may make and deliver to the purchaser or purchasers a good and sufficient deed, bill of sale and instrument
of assignment and transfer of the property sold;

 

(c)        Collateral
Agent or its representative is hereby irrevocably appointed the true and lawful attorney of Mortgagor, in its name and stead, to make
all necessary deeds, bills of sale and instruments of assignment and transfer of the property thus sold and to deregister and export the
property, and for that purpose it may execute and deliver all necessary deeds, bills of sale and instruments of assignment and transfer,
and may substitute one (1) or more Person with like power, Mortgagor hereby ratifying and confirming all that its said attorney, or such
substitute or substitutes, shall lawfully do by virtue hereof; but if so requested by Collateral Agent or by any purchaser, Mortgagor
shall ratify and confirm any such sale or transfer, deregistration or export, by execution and delivering to Collateral Agent or to such
purchaser all property deeds, bills of sale, instruments of assignment and transfer and releases as may be designated in any such request;

 

    	 	19	 

    	 

    

 

(d)       All
right, title, interest, claim and demand whatsoever, either at law or in equity or otherwise, of Mortgagor of, in and to the property
so sold shall be divested. Such sale shall be a perpetual bar both at law and in equity against Mortgagor, its successors and assigns,
and against any and all Persons claiming or who may claim the property sold or any part thereof from, through or under Mortgagor, its
successor or assigns; and

 

(e)       The
receipt of the proceeds of the sale of the Mortgaged Property by Collateral Agent shall be a
sufficient discharge to the purchaser or purchasers at such sale for its or their purchase money, and such purchaser or purchasers and
its or their assigns or personal representatives after paying such purchase money and receiving such receipt of Collateral Agent shall
not be obligated to see to the application of such purchase money or be in any way answerable for any loss, misapplication or non-application
thereof; and

 

(f)       To
the extent it may lawfully do so, Mortgagor agrees that it will not, at any time, insist upon or plead, or in any manner whatsoever claim
or take the benefit or advantage of, any appraisement, valuation, stay, extension or redemption laws, or any law permitting it to direct
the order in which the Mortgaged Property or any part thereof shall be sold, now or at any time hereafter in force, which may delay, prevent
or otherwise affect the performance or enforcement of this Mortgage or the Secured Obligations, and Mortgagor hereby expressly waives
all benefit or advantage of any such laws and covenants, and agrees that it will not hinder, delay or impede the execution of any power
granted and delegated to Collateral Agent in this Mortgage, but will suffer and permit the execution of every such power as though no
such laws were in force, except that Mortgagor, in any event, shall have the right, prior to the disposition of any Mortgaged Property
or the entering into of a binding commitment therefor, to obtain the release of such Mortgaged Property from the lien hereof and the return
to Mortgagor thereof upon payment of the Secured Obligations in full.

 

4.5       Application
of Monies Received by Collateral Agent. If an Event of Default shall have occurred and be continuing, any monies collected pursuant
to Article IV or otherwise constituting a part of the Mortgaged Property shall be applied to the payment of the Secured Obligations in
accordance with the terms and provisions of the Loan Agreement.

 

4.6       Waiver
of Defaults. By written notice to Mortgagor, Collateral Agent may waive any default hereunder and its consequences. Upon any such
waiver, such default shall cease to exist, and any Default or Event of Default arising therefrom shall be deemed to have been cured for
every purpose of this Mortgage; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon.

 

4.7       Right
of Setoff. In addition to the other remedies set forth in this Article IV, to the extent permitted by applicable law, Collateral Agent
reserves a right of setoff in all Mortgagor's accounts with Collateral Agent (whether checking, savings, or some other account). This
includes all accounts Mortgagor holds jointly with someone else and all accounts Mortgagor may open in the future. However, this does
not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Mortgagor authorizes Collateral
Agent, to the extent permitted by applicable law, to charge or setoff all sums owing with respect to the Secured Obligations against any
and all such accounts.

 

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ARTICLE V - SATISFACTION AND DISCHARGE

 

5.1       Discharge.
When all Secured Obligations shall have been finally and fully paid or otherwise in accordance with Section 2.2(e) of the Loan Agreement,
then this Mortgage shall terminate and cease to exist. Thereupon Collateral Agent shall discharge this Mortgage, release its lien on the
Mortgaged Property and discharge its registered international interest from the International Registry and Collateral Agent shall execute
and deliver to Mortgagor, at Mortgagor's cost and expense, such instruments in writing as may be requested by Mortgagor to evidence such
cancellation, discharge and release.

 

ARTICLE VI - MISCELLANEOUS

 

6.1       Severability.
If any part of this Mortgage is contrary to, prohibited by, or deemed invalid under any applicable law of any jurisdiction, such provision
shall, as to such jurisdiction, be inapplicable and deemed omitted to the extent so contrary, prohibited, or invalid, without invalidating
the remainder hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

 

6.2       Counterparts.
This Mortgage may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which
when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument, and all signatures
need not appear on any one counterpart. Facsimile signatures and electronic (including PDF format) signatures of the parties hereto shall
be binding. Notwithstanding the foregoing, in the event Collateral Agent requests that Mortgagor provide an originally executed copy of
a document, Mortgagor shall promptly provide the same.

 

6.3       Amendments.
Any amendment hereto shall be in writing and shall be signed by Mortgagor and Collateral Agent.

 

    	 	21	 

    	 

    

 

6.4       Indemnification
by Mortgagor; Expenses.

 

(a)       Mortgagor
shall indemnify, reimburse and hold Collateral Agent and its officers, directors, employees and agents harmless from and against any and
all claims, demands, causes of action, suits or judgments and any and all costs and expenses of any nature (including, without limitation,
reasonable fees and expenses of external legal counsel), for or on account of injury to or death of persons (including employees and agents
of Mortgagor or Collateral Agent), property damage and any other liability which may result from or arise in any manner out of:

 

(i)       the
ownership, possession, control, management, maintenance, condition, storage, use or operation of all or part of the Mortgaged Property
by Mortgagor or any bailee, transferee or lessee of Mortgagor, or

 

(ii)       any
failure on the part of Mortgagor to perform or comply with any of the terms hereof (including, without limitation, any failure by Mortgagor
to effect or maintain any insurance required to be effected or maintained pursuant to the provisions of Paragraph 3.4 hereof).

 

If Collateral Agent shall receive knowledge of
any claim or liability hereby indemnified against, Collateral Agent shall give prompt notice thereof to Mortgagor; provided, however,
Collateral Agent's failure to promptly provide any such notice shall not act as a waiver of any of Collateral Agent's rights hereunder,
unless such failure to provide prompt notice materially interferes in Mortgagor’s ability to defend such claim. The obligation contained
in this Paragraph 6.4 shall continue in full force and effect notwithstanding the full payment of the Note and all amounts due under the
Loan Agreement or hereunder and notwithstanding the discharge hereof pursuant to Paragraph 5.1 hereof or otherwise. Provided, however,
such indemnification obligations shall not apply to any act or omission involving a breach of this Mortgage by Collateral Agent and shall
not apply to any act or omission involving gross negligence or willful misconduct by Collateral Agent or its representatives.

 

(b)       Mortgagor
shall be responsible for, and shall pay, all fees and expenses incurred by Collateral Agent (including the reasonable fees and expenses
of its external legal counsel) in connection with the enforcement of, or the exercise of any right or remedy of Collateral Agent under,
this Mortgage or any amendment or supplement hereto after and during the continuation of an Event of Default.

 

6.5       Acknowledgment
of Receipt of Copy of Mortgage. Mortgagor hereby acknowledges and certifies that a full, complete, correct and exact copy of this
Mortgage has been delivered to and received by Mortgagor on the date of its execution.

 

6.6       Assignment.
This Mortgage may be freely assigned by Collateral Agent without the consent of Mortgagor, and Mortgagor shall duly execute an IDERA upon
the written request of any assignee. This Mortgage shall inure to the benefit of Collateral Agent, its successors in interest and assigns.
This Mortgage may not be assigned by Mortgagor without the written consent of Collateral Agent.

 

6.7       Notice.
Any notice or other communication required or permitted under this Mortgage or necessary or convenient in connection with this Mortgage
shall be sent in the manner set forth in the Loan Agreement.

 

6.8       APPLICABLE
LAW. THIS MORTGAGE AND THE NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REFERENCE TO ITS CONFLICTS OF LAW PROVISIONS; PROVIDED, THAT THE PARTIES HERETO SHALL BE ENTITLED TO ALL RIGHTS CONFERRED BY THE FEDERAL
AVIATION ACT. ALL OF THE PROVISIONS OF SECTION 10 OF THE LOAN AGREEMENT ARE INCORPORATED HEREIN AND MADE A PART HEREOF MUTATIS MUTANDIS.

 

    	 	22	 

    	 

    

 

6.9       JURY
TRIAL. MORTGAGOR HEREBY WAIVES THE RIGHT TO ANY JURY TRIAL IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER LENDER OR MORTGAGOR
AGAINST THE OTHER.

 

 

[Signatures follow on next pages]

 

    	 	23	 

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Aircraft Mortgage and Security Agreement to be duly executed and delivered as of the date and year
first above written.

 

 

	 	JGB COLLATERAL, LLC, as collateral agent
	 	 
	 	 
	 	 
	 	By: 	                
	 	Name: Brett Cohen   
	 	Title: President

 

    	 	 	 

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Aircraft Mortgage and Security Agreement to be duly executed and delivered in as of the date and
year first above written. 

 

 

	 	AULT AVIATION, LLC
	 	 
	 	By: AULT ALLIANCE, INC., its managing
member
	 	 
	 	 
	 	By: 	                
	 	Name: Milton C. Ault, III
	 	Title: Executive Chairman

 

    	 	 	 

    	 

    

 

ANNEX I

 

IRREVOCABLE DE-REGISTRATION

AND EXPORT REQUEST AUTHORIZATION

 

    	 	 	 

    	 

    

 

IRREVOCABLE DE-REGISTRATION

AND EXPORT REQUEST AUTHORIZATION*

 

November ___, 2022

 

To:     United States Federal
Aviation Administration

 

Re:     Irrevocable De-Registration
and Export Request Authorization

 

The undersigned is the registered
owner of one (1) Gulfstream Aerospace model GV-SP (G550) (described on the International Registry Manufacturer's List as GULFSTREAM model
Gulfstream GV-SP (G550)) aircraft bearing manufacturer's serial number 5094 and United States Registration Number N623MS; together with
two (2) Rolls Royce model BR700-710C4-11 (described on the International Registry Manufacturer's List as ROLLS ROYCE model BR710) aircraft
engines bearing manufacturer's serial numbers 15287 and 15286 (together with all installed, incorporated or attached accessories, parts
and equipment, the "aircraft").

 

This instrument is an
irrevocable de-registration and export request authorization issued by the undersigned in favor of JGB Collateral, LLC (the "authorized
party") under the authority of Article XIII of the Protocol to the Convention on International Interests in Mobile Equipment on Matters
specific to Aircraft Equipment. In accordance with that Article, the undersigned hereby requests:

 

(i)       recognition
that the authorized party or the person it certifies as its designee is the sole person entitled to:

 

(a)     procure
the de-registration of the aircraft from the United States Aircraft Registry maintained by the United States Federal Aviation Administration
for the purposes of Chapter III of the Convention on International Civil Aviation, signed at Chicago, on 7 December 1944; and

 

(b)       procure
the export and physical transfer of the aircraft from the United States of America; and

 

(ii)       confirmation
that the authorized party or the person it certifies as its designee may take the action specified in clause (i) above on written demand
without the consent of the undersigned and that, upon such demand, the authorities in the United States of America shall cooperate with
the authorized party with a view to the speedy completion of such action.

 

The rights in favor of
the authorized party established by this instrument may not be revoked by the undersigned without the written consent of the authorized
party.

 

Please acknowledge your
agreement to this request and its terms by appropriate notation in the space provided below and lodging this instrument in the United
States Aircraft Registry.

 

 

AULT AVIATION, LLC

 

By: AULT ALLIANCE, INC., its managing member

 

 

	By: 	                	 
	Name: Milton C. Ault, III	 
	Title: Executive Chairman	 

 

 

                                                                           

* This IDERA is linked to and part
of that certain Aircraft Mortgage and Security Agreement dated November __ 2022, by and between JGB Collateral, LLC and Ault Aviation,
LLC, which is being filed with the Federal Aviation Administration contemporaneously herewith.EX-10.1

  Exhibit 10.1

  EQUITY BANK

  EXECUTIVE DEFERRED COMPENSATION PLAN

   

   

  RECITALS

  This Executive Deferred Compensation Plan (the “Plan”) is adopted by Equity Bank (the “Bank”), a Kansas banking corporation and wholly owned subsidiary of Equity Bancshares, Inc. (the “Parent”), for the benefit of a select group of the Bank's management or highly compensated employees. The purpose of the Plan is to provide a deferred compensation vehicle to which the Bank may credit discretionary amounts on behalf of Participants for retention and reward.  

  The Plan is intended to be a "top-hat" plan (i.e., an unfunded deferred compensation plan maintained for a select group of management or highly-compensated employees) under Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as may be amended from time to time ("ERISA"). The Bank intends that this Plan shall be construed and interpreted for all purposes as intended to be in compliance with the requirements set forth in Internal Revenue Code Section 409A and the Treasury Regulations and other guidance issued thereunder (collectively, “Section 409A”).

   

  Accordingly, the Plan is effective as of November 15, 2022.

   

  ARTICLE 1

  DEFINITIONS

   

  This Article provides definitions of terms used throughout this Plan, and whenever used herein in a capitalized form, except as otherwise expressly provided, the terms shall be deemed to have the following meanings:

  1.1	“Account” shall mean a bookkeeping entry on the records of the Bank reflecting the Bank’s obligation to a Participant or a Participant’s Beneficiary under the terms of the Plan. A Participant’s Account balance shall equal: (a) the sum of the Bank Contributions, plus or minus (b) gains and/or losses credited or debited thereon, less (c) all distributions made to the Participant or his or her Beneficiary pursuant to this Plan. The Plan Administrator or Plan recordkeeper shall establish additional subaccounts that the Plan Administrator considers necessary to reflect the entire interest of the Participant under the Plan.

  1.2	“Affiliate” shall mean any corporation, partnership, joint venture, association, or similar organization or entity, other than the Bank, that is a member of a controlled group of corporations in which the Bank is a member, as defined in Section 414(b) of the Internal Revenue Code and all other trade or business (whether or not incorporated) under common control of or with the Bank, as defined in Section 414(c) of the Internal Revenue Code.

   

  1.3	“Bank” shall mean Equity Bank, and its successors and assigns, unless otherwise provided in this Plan, or any other corporation or business organization which, with the consent of Equity Bank, or its successors or assigns, assumes the Bank's obligations under this Plan, or any Affiliate which agrees, with the consent of Equity Bank, or its successors or assigns, to become a party to the Plan.

   

  1.4	“Bank Contributions” shall mean the deferred compensation amounts credited on behalf of a Participant by the Bank to the Participant’s Account, as described in Article 3.

  1.5	“Beneficiary” or “Beneficiaries” shall mean the person or persons, natural or otherwise, designated by a Participant in accordance with the Plan to receive applicable payments in the event of the death of the Participant prior to the Participant’s receipt of the entire amount credited to his or her Account.

  1.6	“Beneficiary Designation Form” shall mean the form established from time to time by the Plan Administrator that a Participant completes, signs, and returns to the Plan Administrator to designate one or more Beneficiaries.

   

  1.7	“Board” shall mean the board of directors of the Bank, as from time to time constituted.

   

  1.8	“Cause”, shall mean the following: (a) if a Participant is subject to a written employment agreement (or other similar written agreement) with the Bank or an Affiliate that provides a definition of “Cause”, then, for purposes of this Plan, the term “Cause” shall have the meaning set forth in such agreement, and (b) in the absence of such an agreement, shall mean any of the following acts or omissions by a Participant: (i) any act or omission requiring the Bank to terminate the Participant in order to comply with Section 19 of the Federal Deposit Insurance Act, 12 USC Section 1829(a); (ii) the commission of a felony or any other crime involving moral turpitude or the pleading of nolo contendere to any such act; (iii) the commission of any act or acts of dishonesty when such acts are intended to result or result, directly or indirectly, in gain or personal enrichment of the 

   

  

  			             

  Participant or any related person or affiliated company and are intended to cause harm or damage to any member of the Equity Group; (iv) the misappropriation or embezzlement of the assets of any member of the Equity Group; (v) the illegal use of controlled substances; (vi) the breach of any material term or provision of this Plan; (vii) a knowing and willful violation of a material business directive of the Participant’s direct supervisor that is not remedied within a reasonable period after receipt of written notice from the direct supervisor, who may determine the reasonable cure period in such written notice; (viii) continuing or habitual drug or alcohol use that materially interferes with the performance of the Participant’s duties and responsibilities; or (ix) failure or refusal by the Participant to substantially perform his or her duties to the reasonable satisfaction of the Participant’s director supervisor. The Bank may place the Participant on paid leave for up to sixty (60) days while it is determining whether there is a basis to terminate the Participant’s employment for Cause.

   

  1.9	“Change in Control” shall be deemed to have occurred if the conditions or events set forth in any one or more of the following subsections occur:

   

  	(a)	Merger or Consolidation. The consummation of any merger, consolidation or similar transaction which involves the Bank or the Parent and in which persons who are the stockholders of the Bank or the Parent immediately prior to the transaction own, immediately after the transaction, shares of the surviving or combined entity which possess voting rights equal to or less than fifty percent (50%) of the voting rights of all stockholders of such entity, determined on a fully-diluted basis; 

   

  	(b)	Asset Sale or Lease. The consummation of any sale, lease, exchange, transfer or other disposition of all or substantially all of the consolidated assets of the Bank or the Parent; 

   

  	(c)	Stock Acquisition. Any person or persons acting as a “group” (within the meaning of Section 13(d) of the Exchange Act) acquires beneficial ownership (as defined in Rule 13d-3 of the Exchange Act) of fifty percent (50%) or more of the total voting power of all classes of capital stock of the Parent entitled to vote generally in the election of the board of directors; or 

   

  	(d)	Reconstitution of the Board. During any period of two (2) consecutive years, individuals who at the date of the adoption of this Plan constitute the Bank’s board of directors, cease for any reason to constitute at least a majority thereof, unless the election of each director at the beginning of the period has been approved by directors representing at least a majority of the directors then in office. 

   

  Notwithstanding the foregoing, a Change in Control will not be deemed to have occurred (1) as a result of the issuance of stock by the Bank or the Parent in connection with any public offering of its stock; or (2) as a result of the acquisition of stock by any employee benefit plan, or related trust, sponsored or maintained by any member of the Equity Group. Notwithstanding the foregoing, to the extent the impact of a Change in Control would subject a Participant to additional taxes under Section 409A, a “Change in Control” shall mean both a Change in Control and a “change in the ownership of a corporation,” “change in the effective control of a corporation,” or a “change in the ownership of a substantial portion of a corporation’s assets” within the meaning of Section 409A as applied to the Bank.

   

  1.10	“Claimant” shall mean a Participant or a Beneficiary who believes that he or she is entitled to a benefit under this Plan or is being denied a benefit to which he or she is entitled hereunder.

   

  1.11	“Code” shall mean the U.S. Internal Revenue Code of 1986 and the Treasury Regulations or other authoritative guidance issued thereunder, as amended from time to time.	

  1.12	“Deemed Investment” shall mean the notional conversion of the balance held in a Participant’s Account(s) into shares or units of the Deemed Investment Options that are used as measuring devices for determining the value of a Participant’s Account(s).

  1.13	“Deemed Investment Options” shall mean the hypothetical securities or other investments described under Section 4.1 from which the Plan Administrator may select to be used as measuring devices to determine the Deemed Investment gains or losses of the Participant’s Account(s). The Deemed Investment Options shall initially be each of the investment funds available for investment under the Bank’s tax-qualified defined contribution plan, but may be changed at any time in the Plan Administrator’s sole discretion. A Participant shall have no real or beneficial ownership in the Deemed Investment Options or any other asset of the Bank resulting from participation in the Plan.  

  1.14	“Disability” or “Disabled” shall mean the following: (a) if a Participant is subject to a written employment agreement (or other similar written agreement) with the Bank or an Affiliate that provides a definition of “Disability” or 

  2

   

  

  			             

  “Disabled,” then, for purposes of this Plan, the terms “Disability” or “Disabled” shall have the meaning set forth in such agreement, and (b) in the absence of such an agreement, “Disability” shall mean disability as defined in the Federal Social Security Act, which qualifies a Participant for permanent disability insurance in accordance with such Act. Disability for purposes of this Plan will not include any disability which is incurred while the Participant is on leave of absence because of military or similar service and for which a governmental pension is payable. To the extent that a payment under the Plan for Disability is subject to Code Section 409A, “Disability” or “Disabled” shall mean that a Participant (i) is unable 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 can be expected to last for a continuous period of not less than twelve (12) months, or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering Employees of the Bank. 

  1.15	“Effective Date” shall mean November 15, 2022.

  1.16	“Eligibility Date” shall mean the date designated by the Plan Administrator on which an Eligible Employee shall become eligible to participate in the Plan.

  1.17	“Eligible Employee” shall mean for any calendar year (or applicable portion of a calendar year), an Employee who is in the select group of management of the Bank or is a highly compensated Employee of the Bank and is determined by the Bank, or its designee, to be eligible to participate in the Plan. 

  1.18	“Employee” shall mean an individual who provides services to the Bank in the capacity of a common law employee of the Bank.

  1.19	“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as it may be amended from time to time, and the regulations and guidance promulgated thereunder.

  1.20	“Participant” shall mean an Eligible Employee of the Bank who has met the requirements of participation under Article 2 and who participates in the Plan in accordance with the terms and conditions of the Plan. 

   

  1.21	“Equity Group” means, collectively, the Parent, the Bank and its Affiliates.

   

  1.22	“Participation Agreement” shall mean the agreement executed by the Eligible Employee whereby the Eligible Employee agrees to participate in the Plan.

  1.23	“Plan” shall mean the Equity Bank Executive Deferred Compensation Plan, as evidenced by this written instrument and Participation Agreements, as amended from time to time. For purposes of applying Code Section 409A requirements, the benefit of each Participant under this Plan is a nonelective account balance plan under Treasury Regulation §1.409A-1(c)(2)(i)(B).

  1.24	“Plan Administrator” shall mean the Compensation Committee of the Board or its delegate; provided, however, that under no circumstances may a Participant participate in any decision relating solely to his or her individual benefits under this Plan.

  1.25	“Plan Year” shall mean a twelve (12) month period beginning on January 1 of each calendar year and ending December 31 of such calendar year. 

  1.26	“Section 409A” shall mean Code Section 409A and the Treasury Regulations or other authoritative guidance issued thereunder.

  	1.27	“Separation from Service” or “Separates from Service” shall mean an anticipated permanent reduction in the level of bona fide services to be performed by a Participant to twenty percent (20%) or less of the average level of bona fide services performed by the Participant over the immediately preceding 36-month period (or the full period during which the Participant performed services for the Bank, if that is less than 36 months).  Whether a Participant has had a Separation from Service shall be determined pursuant to Treasury Regulation Section 1.409A-1(h).

  	 

  	1.28	“Specified Employee” shall mean a Participant meets the definition of a “key employee” as such term is defined in Code Section 416(i)(1)(A)(i), (ii) or (iii) (without regard to the Treasury Regulations thereunder and Section 416(i)(5)). However, a Participant is not a Specified Employee unless any stock of the Bank or Equity Bancshares, Inc. is publicly traded on an 

  3

   

  

  			             

  established securities market or otherwise, as defined in Treasury Regulation §1.897-1(m). If a Participant is a key employee at any time during the twelve (12) months ending on December 31, the identification date, the Participant is a Specified Employee for the twelve (12) month period ending on the first day of the fourth month following the identification date. The determination of a Participant as a Specified Employee shall be made by the Plan Administrator in accordance with Code Section 416(i) and the “specified employee” requirements of Section 409A.

  	 

  	1.29	“Treasury Regulation” or “Treasury Regulations” shall mean the regulations promulgated by the Internal Revenue Service for the U.S. Department of the Treasury, as they may be amended from time to time.

   

  	1.30	“Valuation Date” shall mean the date through which Deemed Investment gains and/or losses are credited or debited to a Participant’s Account. The Valuation Date shall be as close to the payout or other event triggering valuation as is administratively feasible. The Valuation Date shall be interpreted as each day at the close of business of the New York Stock Exchange (currently 4:00 p.m. Eastern Time), on days that the New York Stock Exchange is open for trading or any other day on which there is sufficient trading in securities of the applicable fund to materially affect the unit value of the fund and the corresponding unit value of the Participant's Deemed Investment Option(s).

  	 

  	1.31	“Year of Plan Participation” shall mean a twelve (12) month period during which a Participant is employed on a full-time basis by the Bank, inclusive of any approved leaves of absence, beginning on the Participant’s Eligibility Date.

  	 

  	1.32	“Year of Service” shall mean a twelve (12) month period during which a Participant is employed on a full-time basis by the Bank, inclusive of any approved leaves of absence, beginning on the Participant’s date of hire.

   

  ARTICLE 2

  Eligibility and Participation

   

  2.1	Selection. Participation in this Plan shall be limited to those Eligible Employees of the Bank or Affiliates, as determined by the Plan Administrator in its sole and absolute discretion. 

  2.2	Enrollment Requirements. As a condition of participation in this Plan, each Eligible Employee shall complete, execute, and submit to the Plan Administrator a Participation Agreement, Beneficiary Designation Form, and any other election forms required by the Plan Administrator within the time specified by the Plan Administrator in accordance with the terms and conditions of the Plan. In addition, the Plan Administrator shall establish such other enrollment requirements as it determines necessary or advisable.

  2.3	Re-employment. The re-employment of a former Participant by the Bank shall not entitle such individual to become a Participant hereunder. Such individual shall not become a Participant until the individual is again designated as an Eligible Employee in accordance with Section 2.1. If a Participant who has experienced a Separation from Service is receiving installment distributions pursuant to the terms of the Plan and is re-employed by the Bank, distributions due to the Participant shall not be suspended.

  2.4	Termination of Active Participation. The Plan Administrator may remove an Eligible Employee from further active participation in the Plan at its discretion. If this occurs, a Participant shall not have additional amounts credited to the Account. Such individual shall continue to be subject to all the terms and conditions of the Plan, including the crediting or debiting of Deemed Investment gains or losses, as described in Article 4, until the amounts credited or debited to a Participant’s Account(s) are distributed or forfeited. A Participant will cease to be a Participant as of the date on which his or her entire Account balance has been distributed or forfeited. 

   

  ARTICLE 3

  Bank Contributions

  3.1	Bank Contributions. Bank Contributions credited to a Participant’s Account for a particular Plan Year shall be an amount (if any) determined by the Bank in its discretion. The amount so credited on behalf of a Participant may be smaller or larger than the amount credited to any other Participant, and the amount credited to any Participant for a given Plan Year may be zero. No Participant shall have a right to compel the Bank to credit a Bank Contribution and no Participant shall have the right to share in any such contribution for any year unless selected by the Plan Administrator in its sole and absolute discretion. Bank Contributions for any given Plan Year under this Section shall be credited to the applicable Participant’s Account, as provided herein, at such time or times established by the Plan Administrator in its sole discretion.

  4

   

  

  			             

  ARTICLE 4
DEEMED INVESTMENT GAINS OR LOSSES

   

  4.1	Deemed Investment Options. The Plan Administrator will determine the available Deemed Investment Options for purposes of crediting or debiting the Deemed Investment gains or losses to the Account. The Plan Administrator may discontinue, substitute, or add Deemed Investment Options in its sole discretion on a prospective basis. Any discontinuance, substitution, or addition of a Deemed Investment Option will take effect as soon as administratively practicable. The Deemed Investment Options are to be used for measurement purposes only, and the Plan Administrator’s selection of any such Deemed Investment Option, the allocation of such Deemed Investment Options to the Account, the calculation of additional amounts, and the crediting or debiting of such amounts to the Account shall not be considered or construed in any manner as an actual investment of the Account. The Plan Administrator will not be responsible in any manner to any Participant, Beneficiary or other person for any damages, losses, liabilities, costs or expenses of any kind arising in connection with any designation or elimination of a Deemed Investment Option. Without limiting the foregoing, the Account shall at all times be a bookkeeping entry only and shall not represent any investment made on his or her behalf by the Plan Administrator. The Participant (or Beneficiary) shall at all times remain an unsecured creditor of the Bank with respect to his or her right to payment under the Plan. Any liability or obligation of the Bank to any Participant, former Participant, or Beneficiary with respect to a right to payment shall be based solely upon contractual obligations created by this Plan.

   

  4.2	Participant’s Selection of Deemed Investment Options. Each Participant shall have the right to direct the Plan Administrator as to how Bank Contributions shall be deemed to be invested among the Deemed Investment Options offered under the Plan, subject to any rule, policy, practice or procedure adopted by the Plan Administrator. As of each Valuation Date, the Account will be credited or debited to reflect the performance of the Deemed Investment Options elected by the Participant. If a Deemed Investment Option selected by a Participant sustains a loss, the Account shall be reduced to reflect such loss. If the Participant fails to select a Deemed Investment Option, the Participant’s Deemed Investment shall be a default Deemed Investment Option selected by the Plan Administrator. 

   

  	4.3	Participant Responsibilities. Each Participant is solely responsible for all consequences of his or her investment directions made pursuant to this Article 4. Neither the Bank, nor any of its directors, officers, employees or agents, nor the Plan Administrator shall have any responsibility to any Participant or other person for any damages, losses, liabilities, costs or expenses of any kind arising in connection with any investment direction made by a Participant pursuant to this Article 4.

   

  4.4	No Required Investment of Bank Assets. Notwithstanding anything contained herein to the contrary, the Bank reserves the right to invest its assets, including any assets that may have been set aside for the purpose of funding the benefits to be provided under the Plan, at its own discretion, and such assets shall remain the property of the Bank, subject to the claims of the general creditors of the Bank, and no Participant shall have any right to any portion of such assets other than as an unsecured general creditor of the Bank.

  ARTICLE 5
Vesting / FORFEITURES / TAXES / Fees

  5.1	Vesting. Unless otherwise described in a Participant’s Participation Agreement, a Participant shall become vested in his or her Account based on the following schedule:

   

  		
	Completed Years of Plan Participation
	Percent Vested

	Less than 1
	0%

	1 but less than 2
	10%

	2 but less than 3
	20%

	3 but less than 4
	30%

	4 but less than 5
	40%

	5 but less than 6
	50%

	6 but less than 7
	60%

	7 but less than 8
	70%

	8 but less than 9
	80%

	9 but less than 10
	90%

	10 or more
	100%

   

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  5.2	Acceleration of Vesting. Notwithstanding the foregoing vesting schedule, a Participant shall become one hundred percent (100%) vested in his or her Account upon the earliest of the following events to occur while employed by the Bank: (a) attainment of age sixty-five (65) with five (5) Years of Service; (b) Disability; (c) death; or (d) a Change in Control. 

   

  5.3	Forfeitures. In the event a Participant’s employment is involuntarily terminated for Cause, no benefits of any kind will be due or payable by the Bank under the terms of this Plan and all rights of the Participant, his or her designated Beneficiary, executors, or administrators, or any other person, to receive payments thereof shall be forfeited. Additionally, a Participant will forfeit any portion of his or her Account that is unvested upon Separation from Service. 

  	5.4	Taxes and Withholding. Bank Contributions (including earnings thereon) are subject to the Federal Insurance Contribution Act (FICA) and the Federal Unemployment Tax Act (FUTA) to the extent provided under applicable Code provisions, and benefits payable under the Plan are subject to all applicable federal, state, city, income, employment or other taxes as may be required to be withheld or paid. A Participant is solely responsible for the payment of all individual tax liabilities relating to any such benefits. 

   

   

  ARTICLE 6

  PAYMENT OF BENEFITS

  	6.1	Payments in General. 

  		(a)	Amount of Benefit. A Participant (or, in the event of the death of a Participant, the Participant’s Beneficiary) shall be entitled to a benefit equal to the Participant’s vested Account balance as of the earliest payment event to occur under the terms of this Article 6.

  		(b)	Source of Payments. All payments made under the Plan shall be made in cash from the Bank’s general assets.

  		(c)	Changes in Time or Form of Payment. If approved by the Bank, a Participant may delay the time of a payment or change the form of a payment as expressly provided under this Section 6.1(c) and Section 409A (hereinafter, a “Subsequent Deferral Election”). A Subsequent Deferral Election cannot accelerate any payment. A Subsequent Deferral Election which delays or changes payment is permitted only if all of the following requirements are met: 

  (i)	The Subsequent Deferral Election does not take effect until at least twelve (12) months after the date on which the Subsequent Deferral Election is made and approved by the Plan Administrator;

  (ii)	If the Subsequent Deferral Election relates to a payment based on Separation from Service or at a specified time, the Subsequent Deferral Election must result in payment being deferred for a period of not less than five (5) years from the date the first amount was scheduled to be paid; 

  (iii)	If the Subsequent Deferral Election relates to a payment at a specified time, the Participant must make the Subsequent Deferral Election not less than twelve (12) months before the date the first amount was scheduled to be paid.  

  		For purposes of applying a Subsequent Deferral Election, installment payments shall be treated as a “single payment.” Any election made pursuant to this Section shall be made on such election forms or electronic media as is required by the Plan Administrator, in accordance with the rules established by the Plan Administrator and shall comply with all requirements of Section 409A.

  (d)	Calculation of Installments. In the event benefits are to be paid in installments, the amount of each installment shall be determined by dividing the value of the Participant’s Account as of the date of the event (or on the anniversary date of the event for subsequent installments) by the number of installments remaining to be paid. (By way of example, if the Participant is to receive payments in annual installments over a period of five (5) years, the first installment shall equal 1/5 of the Account balance. The following year, the installment shall be 1/4 of the remaining Account balance. The final installment shall be equal to the balance of the Account, calculated as of the applicable anniversary date.) Any unpaid Account balance shall continue to be deemed to be invested, in which case any deemed income, gains, losses, or expenses shall be reflected in the actual payments.

  6

   

  

  			             

  6.2	Separation from Service. In the event of a Participant’s Separation from Service (other than for Cause or death, but including for Disability), the Bank shall pay to the Participant his or her vested Account balance, calculated as of the date of Separation from Service, in a lump sum, five (5) annual installments, or ten (10) annual installments, as elected by the Participant within thirty (30) days following his or her Eligibility Date. Subject to Section 6.5, payment shall be made or commence, as applicable, on the first day of the month following the date of Separation from Service, with subsequent installments, if any, paid on the anniversary of the first installment and calculated in accordance with Section 6.1(d).

  6.3	Change in Control. In the event of the Bank’s Change in Control while a Participant is employed by the Bank, the Bank shall pay to the Participant his or her entire Account balance, calculated as of the date of the Change in Control, in a lump sum on the first day of the month following the date of the Change in Control.

  6.4	Death.

  (a)	While Employed. In the event a Participant dies while employed by the Bank, the Bank shall pay to the Participant’s Beneficiary the Participant’s entire Account balance, calculated as of the date of the Participant’s death, in a lump sum on the first day of the month following the date of the Participant’s death.

  (b)	During Installments. In the event a Participant dies after installments have commenced but prior to receiving all installments owed under the Plan, the Bank shall continue to pay any remaining installments to the Participant’s Beneficiary in accordance with the schedule the installments would have otherwise been paid to the Participant.

  6.5	6-Month Delay for Specified Employees. Solely to the extent necessary to avoid penalties under Section 409A, payments to be made as a result of a Separation from Service under this Article may not commence earlier than six (6) months after the Participant’s Separation from Service if, pursuant to Section 409A, the Participant is considered a Specified Employee. In the event a distribution is delayed pursuant to this paragraph, any amounts otherwise payable during the six months shall be accumulated and paid in a lump sum on the first day of the seventh month following Separation from Service.

  6.6	Acceleration of Payment. Except as specifically permitted herein or in other sections of this Plan, no acceleration of the time or schedule of any payment may be made hereunder. Notwithstanding the foregoing, payments may be accelerated hereunder by the Bank (without any direct or indirect election on the part of any Participant), in accordance with the provisions of Treasury Regulation §1.409A-3(j)(4) and any subsequent guidance issued by the United States Treasury Department. Accordingly, payments may be accelerated, in accordance with the provisions of Treasury Regulation §1.409A-3(j)(4) in the following circumstances: (a) in limited cashouts (but not in excess of the limit under Code Section 402(g)(1)(B)); (b) to pay employment-related taxes; or (c) to pay any taxes that may become due at any time that the Plan fails to meet the requirements of Section 409A (but in no case shall such payments exceed the amount to be included in income as a result of the failure to comply with the requirements of Section 409A).

  6.7	Unsecured General Creditor Status of Participant.

   

  (a)	The establishment of this Plan does not represent an employment contract between the Bank and a Participant and shall not be construed as giving any Participant the right to be retained in the Bank’s service or employ, or the right to receive any benefit not specifically provided by the Plan. Neither Participants nor Beneficiaries shall have any interest in a benefit provided under this Plan, until such benefit is distributed in accordance with the Plan. Until paid to the Participant or Beneficiary, all assets required to fund this Plan shall remain the sole property of the Bank, subject to the claim of its general creditors. With respect to amounts to be paid to a Participant or his or her Beneficiaries hereunder, the Participant and his or her Beneficiaries are each a general unsecured creditor of the Bank.

   

  (b)	In the event that the Bank purchases an insurance policy or policies insuring the life of a Participant, to allow the Bank to recover or meet the cost of providing benefits, in whole or in part, hereunder, the Participant or Beneficiary shall not have any rights whatsoever in said policy or the proceeds. The Bank, or trust (if any), shall be the primary owner and beneficiary of any such insurance policy or property and shall possess and may exercise all incidents of ownership therein. The Participant further agrees to sign any forms and consent necessary for such life insurance, including the consent under Code Section 101(j), for the Bank or trust (as applicable), to be owner and beneficiary of the insurance on the Participant’s life.

   

  (c) 	In the event that the Bank purchases an insurance policy or policies on the life of a Participant as provided for above, then all of such policies shall be subject to the claims of the creditors of the Bank. 

   

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  (d)	If the Bank chooses to obtain insurance on the life of a Participant in connection with its obligations under this Plan, the Participant hereby agrees to take such physical examinations and to truthfully and completely supply such information as may be required by the Bank or the insurance company designated by the Bank.

  6.8	Discharge of Obligations. The payment to a Participant or his or her Beneficiary of the Account in full shall discharge all obligations of the Bank to such Participant or Beneficiary under the Plan with respect to the Participant’s Account.

  ARTICLE 7

  Beneficiary Designation

   

  7.1	Designation of Beneficiaries. 

  	(a)	Each Participant may designate on a Beneficiary Designation Form any person or persons (who may be named contingently or successively) to receive any benefits payable under the Plan upon the Participant’s death, and the designation may be changed from time to time by the Participant by filing a new designation. Each designation will revoke all prior designations by the same Participant, shall be in the form prescribed by the Plan Administrator, and shall be effective only when filed with the Plan Administrator during the Participant’s lifetime.

  (b)	In the absence of a valid Beneficiary designation, the Bank shall pay the benefit payment to the Participant’s estate.

  (c)	A Participant’s designation of a Beneficiary will not be revoked or changed automatically by any future marriage or divorce. Should the Participant wish to change the designated Beneficiary in the event of a future marriage or divorce, the Participant must do so by filing a new Beneficiary Designation Form with the Plan Administrator.

  (d)	If a question arises as to the existence or identity of anyone entitled to receive a death benefit payment under the Plan, or if a dispute arises with respect to any death benefit payment under the Plan, as determined by the Plan Administrator in its discretion, the Bank may distribute the payment to the Participant’s estate without liability for any tax or other consequences, or may take any other action which the Bank deems to be appropriate.

  7.2	Information to be furnished by Participants and Beneficiaries; Inability to Locate Participants or Beneficiaries.  Any communication, statement or notice addressed to a Participant or to a Beneficiary at his or her last post office address as shown on the Bank’s records shall be binding on the Participant or Beneficiary for all purposes of the Plan. The Bank shall not be obliged to search for any Participant or Beneficiary beyond the sending of a registered letter to such last known address.

  7.3	Facility of Payment. If the Plan Administrator determines in its discretion that a benefit is to be paid to a minor, to a person legally declared incompetent, or to a person legally deemed incapable of handling the disposition of that person’s property, the Plan Administrator may direct payment of such benefit to the guardian, legal representative or person having care or custody of such minor, incompetent person or incapable person. The Plan Administrator may require proof of incompetence, minority or guardianship as it may deem appropriate prior to payment of the benefit. Any distribution of a benefit shall be a distribution for the account of the Participant and the Beneficiary, as the case may be, and shall be a complete discharge of any liability under the Plan for such distribution amount.

  ARTICLE 8

  PLAN AMENDMENT

   

  8.1	Right to Amend. Subject to Section 409A, the Bank shall have the right to unilaterally amend the Plan, at any time and with respect to any provisions hereof, and all parties hereto or claiming any interest hereunder shall be bound by such amendment; provided, however, that no such amendment shall deprive a Participant or a Beneficiary of a benefit amount described hereunder prior to the date of the amendment without written consent of the Participant or Beneficiary. 

  8.2	Amendments Required By Law. Notwithstanding the provisions of Section 8.1, the Plan may be unilaterally amended by the Bank without consent from Participants or Beneficiaries at any time, retroactively if required, if found necessary, in the opinion of the Bank, in order to ensure that the Plan is characterized as a “top-hat” plan of deferred compensation maintained for a select group of management or highly compensated employees as described under ERISA Sections 201(2), 301(a)(3), and 401(a)(1), to conform the Plan to the provisions of Section 409A and to conform the Plan to the requirements of any other applicable law (including ERISA and the Code). 

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  ARTICLE 9

  PLAN TERMINATION

   

  	9.1 	Bank’s Right to Suspend Plan. Although the Bank anticipates that it will continue the Plan for an indefinite period of time, there is no guarantee it will do so. The Bank reserves the right to suspend the operation of the Plan for a fixed or indeterminate period of time, in its sole discretion. In the event of a suspension of the Plan, during the period of the suspension, the Bank shall continue all aspects of the Plan other than crediting of Contribution amounts. Payments of distributions will continue to be made during the period of the suspension in accordance with Article 6. 

  9.2	Plan Termination and Liquidation under Section 409A. Notwithstanding anything to the contrary in Section 9.1, any acceleration of the payment of benefits due to Plan termination and liquidation shall comply with the following subparagraphs, but only as permitted in accordance with Section 409A and Treasury Regulation §1.409A-3(j)(4)(ix). The Bank may distribute the vested balance of all Accounts, determined as of the date of the termination of the Plan, to Participants subject to the terms below.

  (a)	Upon the Bank’s termination of this and all other arrangements that would be aggregated with this Plan pursuant to Treasury Regulation §1.409A-1(c) if a Participant participated in such arrangements (“Similar Arrangements”), provided that: (i) the termination does not occur proximate to a downturn in the financial health of the Bank; (ii) all termination  distributions are made no earlier than twelve (12) months and no later than twenty-four (24) months following such termination; and (iii) the Bank does not adopt any new arrangement that would be a Similar Arrangement for a minimum of three (3) years following the date the Bank takes all necessary action to irrevocably terminate and liquidate the Plan.

  (b)	Upon the Bank’s dissolution taxed under Code Section 331, or with approval of a bankruptcy court, provided that the amounts deferred under the Plan are included in the Participant’s gross income in the latest of: (i) the calendar year in which the Plan terminates; (ii) the calendar year in which the amount is no longer subject to a substantial risk of forfeiture; or (iii) the first calendar year in which the payment is administratively practicable; or

  		(c)	Within thirty (30) days before or twelve (12) months following a “change in control,” as defined in Treasury Regulation §1.409A-3(i)(5), provided that all distributions are made no later than twelve (12) months following such termination of the Plan and further provided that all the Bank’s Similar Arrangements are terminated so the Participant and all participants in the Similar Arrangements are required to receive all amounts of compensation deferred under the terminated arrangements within twelve (12) months of the termination of the Plan.

  ARTICLE 10

  PLAN ADMINISTRATION

   

  10.1	Plan Administrator Duties. The Plan Administrator shall be responsible for the management, operation, and administration of the Plan. When making a determination or calculation, the Plan Administrator shall be entitled to rely on information furnished by the Bank, the Participants, or Beneficiaries. No provision of this Plan shall be construed as imposing on the Plan Administrator any fiduciary duty under ERISA or other law, or any duty similar to any fiduciary duty under ERISA or other law.

  10.2	Plan Administrator Authority. The Plan Administrator shall enforce this Plan in accordance with its terms, shall be charged with the general administration of this Plan, and shall have all powers necessary to accomplish its purposes, including, but not by way of limitation, the following:

  (a)	To construe and interpret the terms and provisions of this Plan and to reconcile any inconsistency, in its sole and absolute discretion;

  (b)	To compute and certify the amount payable to a Participant and his or her Beneficiaries; to determine the time and manner in which such benefits are paid; and to determine the amount of any withholding taxes to be deducted;

  (c)	To maintain all records that may be necessary for the administration of this Plan;

  (d)	To provide for the disclosure of all information and the filing or provision of all reports and statements to a Participant, Beneficiaries, and governmental agencies as shall be required by law;

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  (e)	To make and publish such rules for the regulation of this Plan and procedures for the administration of this Plan so long as no such rules or procedures are not inconsistent with the terms hereof;

  (f)	To administer this Plan’s claims procedures;

  (g)	To approve the forms and procedures for use under this Plan; and

  (h)	To employ such persons or organizations, including without limitation, actuaries, attorneys, accountants, independent fiduciaries, recordkeepers and administrative consultants, to render advice or perform services with respect to the responsibilities of the Plan Administrator under the Plan.

  10.3	Binding Effect of Decision. The decision or action of the Plan Administrator with respect to any question arising out of or in connection with the administration, interpretation, and application of this Plan and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in this Plan.  For greater emphasis, and not to restrict any authority granted to the Plan Administrator elsewhere in the Plan document, the Plan Administrator shall have full discretionary authority to construe the terms of the Plan and to determine eligibility for benefits.

  10.4	Compensation and Expenses. Officers and employees of the Bank acting as the Plan Administrator shall serve without compensation for services rendered hereunder. The Plan Administrator is authorized to employ such legal counsel and/or Plan recordkeeper as it may deem advisable to assist in the performance of its duties hereunder. Expenses and fees in connection with the recordkeeping and administration of this Plan shall be paid by the Bank, and Participants shall share in such costs in accordance with Section 5.5.  The Bank shall indemnify and hold harmless Bank officers and employees from any loss or liability arising from their acceptance of the role of Plan Administrator except for losses or liability arising from dishonesty or gross negligence.

  10.5	Compliance with Section 409A.

  (a)	Notwithstanding anything contained herein to the contrary, the interpretation and distribution of Participants’ benefits under the Plan are intended to comply with all applicable provisions of Section 409A and the regulations and guidance promulgated thereunder, or an exception or exclusion therefrom to avoid the imposition of any accelerated or additional taxes. Any defined terms shall be construed consistent with Section 409A and any terms not specifically defined shall have the meaning set forth in Section 409A. 

  (b)	The intent of this Section is to ensure that a Participant is not subject to any tax liability or interest penalty, by reason of the application of Code Section 409A(a)(1) as a result of any failure to comply with all the requirements of Section 409A, and this Section shall be interpreted in light of, and consistent with, such requirements. This Section shall apply to distributions under the Plan, but only to the extent required in order to avoid taxation of, or interest penalties on, the Participant under Section 409A. These rules shall also be deemed modified or supplemented by such other rules as may be necessary, from time to time, to comply with Section 409A. Notwithstanding the foregoing, neither the Bank nor the Plan Administrator shall provide any guarantee that this Plan is compliant with Section 409A in form or operation and neither the Bank nor the Plan Administrator shall have any liability to any Participant on account of such Participant incurring additional taxes or penalties as a result of a failure to comply with Section 409A.

   

  ARTICLE 11

  CLAIMS PROCEDURES

   

  11.1	Claims Procedure. This Article is based on Department of Labor Regulation §2560.503-1. If any provision of this Article conflicts with the requirements of those regulations, the requirements of those regulations will prevail. A Claimant who has not received benefits under the Plan that he or she believes should be paid shall make a claim for such benefits as follows: 

   

  (a)	Initiation - Written Claim. The Claimant initiates a claim by submitting a written request for the benefits to the Plan Administrator. The Plan Administrator will, upon written request of a Claimant, make available copies of all forms and instructions necessary to file a claim for benefits or advise the Claimant where such forms and instructions may be obtained. 

   

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  (b)	Timing of Bank Response. The Plan Administrator shall respond to such Claimant within ninety (90) days after receiving the claim. If the Plan Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional ninety (90) days by notifying the Claimant in writing prior to the end of the initial 90-day period that an additional period is required. Any notice of extension must set forth the special circumstances requiring an extension of time and the date by which the Plan Administrator expects to render its decision.

   

  (c) 	Notice of Decision. If the Plan Administrator denies the claim, in whole or in part, the Plan Administrator shall notify the Claimant in writing of such denial. The Plan Administrator shall write the notification in a manner calculated to be understood by the Claimant. The notification shall set forth: 

   

  (i)The specific reasons for the denial; 

  (ii)A reference to the specific provisions of the Plan on which the denial is based;

  (iii)A description of any additional information or material necessary for the Claimant to perfect the claim and an explanation of why it is needed; 

  (iv)An explanation of the Plan's review procedures and the time limits applicable to such procedures; and 

  (v)A statement of the Claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review.

    

  11.2 	Review Procedure. If the Plan Administrator denies the claim, in whole or in part, the Claimant shall have the opportunity for a full and fair review by the Plan Administrator of the denial, as follows: 

   

  (a)Initiation - Written Request. To initiate the review, the Claimant, within sixty (60) days after receiving the Plan Administrator’s notice of denial, must file with the Plan Administrator a written request for review. 

   

  (b)Additional Submissions - Information Access. The Claimant shall then have the opportunity to submit written comments, documents, records and other information relating to the claim.  The Plan Administrator shall also provide the Claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the Claimant’s claim for benefits.

   

  (c)Considerations on Review. In considering the review, the Plan Administrator shall take into account all comments, documents, records and other information submitted by the Claimant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. 

   

  (d)Timing of Bank Response. The Plan Administrator shall respond in writing to such Claimant within sixty (60) days after receiving the request for review. If the Plan Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional sixty (60) days by notifying the Claimant in writing, prior to the end of the initial 60-day period that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Plan Administrator expects to render its decision. 

   

  (e)Notice of Decision. The Plan Administrator shall notify the Claimant in writing of its decision on review. The Plan Administrator shall write the notification in a manner calculated to be understood by the Claimant. The notification shall set forth:

   

  (i)The specific reasons for the denial; 

  (ii)A reference to the specific provisions of the Plan on which the denial is based;

  (iii)A statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the Claimant's claim for benefits; and 

  (iv)A statement of the Claimant's right to bring a civil action under ERISA Section 502(a). 

   

  11.3	Calculation of Time Periods. For purposes of the time periods specified in this Article, the period of time during which a benefit determination is required to be made begins at the time a claim is filed in accordance with the Plan procedures without regard to whether all the information necessary to make a decision accompanies the claim. If a period of time is extended due to a Claimant's failure to submit all information necessary, the period for making the determination shall be tolled from the date the notification is sent to the Claimant until the date the Claimant responds.

   

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  11.4	Exhaustion of Remedies.  A Claimant must follow the claims review procedures under this Plan and exhaust his or her administrative remedies before taking any further action with respect to a claim for benefits.

   

  11.5	Failure of Plan to Follow Procedures. If the Plan fails to establish or follow the claims procedures required by this Article, a Claimant shall be deemed to have exhausted the administrative remedies available under the Plan and shall be entitled to immediately pursue any available remedy under ERISA Section 502(a) on the basis that the Plan has failed to provide a reasonable claims procedure that would yield a decision on the merits of the claim. The Claimant may request a written explanation of the violation from the Plan, and the Plan must provide such explanation within ten (10) days, including a specific description of its bases, if any, for asserting that the violation should not cause the administrative remedies to be deemed exhausted. If a court rejects the Claimant’s request for immediate review on the basis that the Plan met the standards for the exception, the claim shall be considered as re-filed on appeal upon the Plan’s receipt of the decision of the court. Within a reasonable time after the receipt of the decision, the Plan shall provide the claimant with notice of the resubmission.  

   

  11.6	Arbitration. If a Claimant continues to dispute the benefit denial based upon completed performance of the Plan or the meaning and effect of the terms and conditions thereof, then the Claimant must submit the dispute to an arbitrator for final arbitration. The arbitrator shall be selected by mutual agreement of the Bank and the Claimant. The arbitrator shall operate under any generally recognized set of arbitration rules. The parties hereto agree that they and their heirs, personal representatives, successors and assigns shall be bound by the decision of such arbitrator with respect to any controversy properly submitted to it for determination. Where a dispute arises as to the Bank’s discharge of a Participant for Cause, such dispute shall likewise be submitted to arbitration as above described and the parties hereto agree to be bound by the decision thereunder. 

   

  ARTICLE 12

  MISCELLANEOUS

   

  12.1	Validity.  In case any provision of this Plan shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this Plan shall be construed and enforced as if such illegal or invalid provision had never been inserted herein. 

  12.2	Nonassignability. Neither any Participant nor any other person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage, or otherwise encumber, transfer, hypothecate, alienate, or convey in advance of actual receipt, the amounts, if any, payable hereunder, or any part hereof, which are, and all rights to which are expressly declared to be, unassignable and non-transferable. No part of the amounts payable shall, prior to actual payment, be subject to seizure, attachment, garnishment or sequestration for the payment of any debts, judgments, alimony, or separate maintenance owed by a Participant or any other person, be transferable by operation of law in the event of a Participant’s or any other person’s bankruptcy or insolvency, or be transferable to a spouse as a result of a property settlement or otherwise. If any Participant, Beneficiary, or successor in interest is adjudicated bankrupt or purports to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber transfer, hypothecate, alienate, or convey in advance of actual receipt, the amount, if any, payable hereunder, or any part thereof, the Plan Administrator, in its discretion, may cancel such distribution or payment (or any part thereof) to or for the benefit of such Participant, Beneficiary, or successor in interest in such manner as the Plan Administrator shall direct.

  12.3	Not a Contract of Employment. The terms and conditions of this Plan shall not be deemed to constitute a contract of employment between the Bank and a Participant. Nothing in this Plan shall be deemed to give a Participant the right to be retained in the service of the Bank as an Employee or otherwise or to interfere with the right of the Bank to discipline or discharge a Participant at any time. 

  12.4	Governing Law. The Plan shall be administered, construed and governed in all respects under and by the laws of the State of Kansas, without reference to the principles of conflicts of law (except and to the extent preempted by applicable federal law). 

  12.5	Notice. Any notice or filing required or permitted under this Plan shall be sufficient if in writing and hand delivered, or sent by registered or certified mail or overnight delivery service to the Bank’s address. Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, or overnight delivery service as of the date shown on the postmark on the receipt for registration or certification. Any notice or filing required or permitted to be given to a Participant under this Plan shall be sufficient if in writing and hand-delivered, or sent by mail or overnight delivery service, to the last known address of the Participant. 

  12.6	Other Benefits. The benefits provided for a Participant or a Participant’s Beneficiary under this Plan are in addition to any other benefits available to such Participant under any other plan or program for employees of the Bank. This Plan 

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  shall supplement and shall not supersede, modify, or amend any other such plan or program except as may otherwise be expressly provided herein.

  12.7	Trust. The Bank may establish a trust to assist it in meeting its obligations under the Plan.  Any such trust will conform to the requirements of a grantor trust under Revenue Procedures 92-64 and 92-65 and at all times during the continuance of the trust the principal and income of the trust will be subject to claims of general creditors of the Bank under federal and state law.  The establishment of such a trust would not be intended to cause Participants to realize current income on amounts contributed thereto, and the trust would be so interpreted and administered.

  12.8	Unclaimed Benefits. In the case of a benefit payable on behalf of such Participant, if the Plan Administrator is unable to locate the Participant or Beneficiary to whom such benefit is payable, such Plan benefit may be forfeited to the Bank upon the Plan Administrator’s determination. Notwithstanding the foregoing, if, subsequent to any such forfeiture, the Participant or Beneficiary to whom such Plan benefit is payable makes a valid claim for such Plan benefit, such forfeited Plan benefit shall be paid by the Plan Administrator to the Participant or Beneficiary, without interest, from the date it would have otherwise been paid.

   

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  Exhibit 10.1

  IN WITNESS WHEREOF, the Bank adopts this Plan as of the date first written above.

   

  EQUITY BANK

   

   

   

   

  By: /s/ Eric R. Newell 	

  Name: Eric R. Newell	

  Its: Executive Vice President and Chief Financial Officer

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