Document:

Exhibit
10.10

 

Firstsun
Capital Bancorp 

DEFERRED COMPENSATION PLAN

 

Amended
as of January 1, 

2019

    	 

    	 

    

TABLE
OF CONTENTS

 

	 	 	 	Page

	 	 	 	 
	TABLE OF CONTENTS 	i
	 	 	 	 
	ARTICLE 1  	 	INTRODUCTION AND PURPOSE	1
	1.1  	 	Establishment of the Plan	1
	1.2  	 	Purpose of the Plan	1
	1.3  	 	ERISA Not Applicable	1
	 	 	 	 
	ARTICLE 2  	 	DEFINITIONS	2
	 	 	 	 
	ARTICLE 3  	 	PARTICIPATION	6
	3.1  	 	Eligibility	6
	3.2  	 	Enrollment	6
	3.3  	 	Duration of Election	7
	3.4  	 	Duration of Participation and Modification or Cessation of Deferrals	7
	3.5  	 	Reenrollment of Participation	7
	 	 	 	 
	ARTICLE 4  	 	ADMINISTRATION	8
	4.1  	 	Responsibility for Administration and Investment	8
	4.2  	 	Authority of the Administrator	8
	4.3  	 	Duties of the Administrator	8
	4.4  	 	Enrollment Agreements	8
	4.5  	 	Administrative and Investment Costs	9
	 	 	 	 
	ARTICLE 5  	 	PARTICIPANTS ACCOUNTS AND PLAN INVESTMENTS	10
	5.1  	 	Establishment of Accounts	10
	5.2  	 	Unsecured General Creditor	10
	5.3  	 	Investment Options	10
	5.4  	 	Investment Elections	11
	5.5  	 	Changes in Investment Elections	11
	5.6  	 	Investment of Funds	11
	5.7  	 	Investment Option Valuations	12
	 	 	 	 
	ARTICLE 6  	 	DISTRIBUTIONS	13
	6.1  	 	Distribution Upon Retirement Date or Death; Vesting	13
	6.2  	 	Distribution Upon Termination Because of Disability	13
	6.3  	 	Distribution Upon Termination of Service Prior to Retirement Date for Reasons Other Than Death or Disability	13
	6.4  	 	Distribution Upon Establishment of Unforeseeable Emergency	13
	6.5  	 	Distribution Upon Change in Control	14
	6.6  	 	Distribution Upon Selected Date	14
	6.7  	 	Modes of Distribution	14
	6.8  	 	Changes in Time and Form of Distribution of Existing Designations	15
	6.9  	 	Delay in Distribution for Key Employees.	15
	6.10 	 	Delay in Distribution and Forfeiture of Certain Deferral Account Amounts	15
	6.11	 	Beneficiary Designations	15

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	ARTICLE 7  	 	NON-ASSIGNABILITY AND LIMITATION ON PAYMENTS	16
	7.1  	 	Non-Assignability	16
	7.2  	 	Limitation on Payments	16
	 	 	 	 
	ARTICLE 8  	 	AMENDMENT OR TERMINATION	17
	8.1  	 	Amendment of Plan	17
	8.2  	 	Termination of Plan	17
	 	 	 	 
	ARTICLE 9  	 	CLAIMS PROCEDURE	18
	9.1  	 	Notice of Denial	18
	9.2  	 	Contents of Notice of Denial	18
	9.3  	 	Right to Review	18
	9.4  	 	Application for Review	18
	9.5  	 	Hearing	19
	9.6  	 	Notice of Hearing	19
	9.7  	 	Counsel	19
	9.8  	 	Decision on Review	19
	 	 	 	 
	ARTICLE 10  	 	MISCELLANEOUS PROVISIONS	20
	10.1  	 	No Right to Continued Employment	20
	10.2  	 	Construction of Language	20
	10.3  	 	Incompetency	20
	10.4  	 	Dishonesty	20
	10.5  	 	Headings	20
	10.6  	 	Severability	20
	10.7  	 	Waiver	21
	10.8  	 	Tax Withholding and Payment of Code Section 409A Taxes	21
	10.9  	 	Acceleration of Payments	21
	10.10	 	Governing Law	22

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ARTICLE
1 

INTRODUCTION AND PURPOSE

 

		1.1	Establishment
                                         of the Plan

 

The
Plan as herein set forth, effective June 30, 2013, shall be known as the Firstsun Capital Bancorp. DEFERRED COMPENSATION
PLAN. The Plan is intended to comply with Section 409A of the Code and final regulations thereunder, addressing the
requirements for nonqualified deferred compensation plans. The Plan will initially provide benefits to eligible Employees of
the Plan Sponsor, Firstsun Capital Bancorp. and its wholly-owned subsidiary, Sunflower Bank, N.A., as an adopting Employer.
Additional subsidiaries of the Plan Sponsor may adopt the Plan in the future.

 

		1.2	Purpose
                                         of the Plan

 

The
purpose of the Plan is to provide for the establishment by Firstsun Capital Bancorp and Sunflower Bank, N.A. (each an “Employer”
and together the “Employers”) of an unfunded Deferral Account established by the Employers on behalf of eligible Employee
Participants of each Employer and for the deferral, if so elected, of all or a portion of taxable earnings (including annual salary,
commissions, incentive plan distributions and other taxable amounts), by such Plan Participants, which participants shall be a
select group of management or highly compensated Employees of each Employer. Amounts shall be deferred until one of the specified
events in the Plan occurs, which permits all or part of the monies so deferred (together with any earnings, gains or losses, as
provided for in the Plan), to be distributed to the Participant or to a designated Beneficiary. The select group of management
or highly compensated Employees eligible to participate in the Plan shall be those Employees specified in Section 3.1 and may
be modified as determined by the Board of Directors of each Employer, from time to time.

 

		1.3	ERISA
                                         Not Applicable

 

This
Plan is not intended to be subject to or covered by the reporting, participation, vesting, funding or fiduciary requirements of
ERISA, and shall in all cases be construed and interpreted in a manner consistent with that intent.

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ARTICLE
2 

DEFINITIONS

 

The following words
and phrases used in the Plan shall have the following meanings, unless a different meaning is plainly required by the context:

 

		2.1	“Account”
                                         means the Deferred Compensation Account and Deferral Account, if applicable, established
                                         for each Plan Participant pursuant to Section 5.1.

 

		2.2	“Accounting
                                         Date” means each business day of the month.

 

		2.3	“Administrator”
                                         means the Plan administrator.

 

		2.4	“Beneficiary”
                                         means the person, persons or legal entity designated in writing by the Participant to
                                         receive any undistributed Deferral Account and Deferred Compensation Account, if applicable,
                                         amounts which become payable in the event of the Participant’s death, including any designated
                                         contingent beneficiary or beneficiaries.

 

		2.5	“Benefit
                                         Commencement Date” means the first business day of the month following the month
                                         in which an Employee retires, dies or otherwise terminates employment (as the case may
                                         be), or such other date as a Participant specifies in his or her Enrollment Agreement.

 

		2.6	“Board
                                         of Directors” means the Board of Directors of an Employer, as applicable.

 

		2.7	“Change
                                         in Control” means any one of the following events: (i) a change in the ownership
                                         of a Participant’s Employer, (ii) a change in the effective control of a Participant’s
                                         Employer, or (iii) a change in the ownership of a substantial portion of the assets of
                                         a Participant’s Employer, where each such event is as hereafter defined in paragraphs
                                         (A), (B) and (C), following, where the occurrence of such event must be objectively determinable,
                                         without discretionary authority by the Employer. Provided, however, that no Change in
                                         Control shall qualify as such for purposes of this Plan unless such event also qualifies
                                         as a “change in control event” within the meaning of Treasury Regulation
                                         Section 1.409A-3(i)(5).

		(A)	A
                                         change in the ownership of a corporation occurs on the date that any one person, or more
                                         than one person acting as a group (as hereafter defined) acquires ownership of stock
                                         of the corporation that, together with stock held by such person or group, constitutes
                                         more than fifty percent (50%) of the total voting power of the stock of such corporation.
                                         However, if any one person or more than one person acting as a group, is considered to
                                         own more than fifty percent (50%) of the total voting power of the stock of a corporation,
                                         the acquisition of additional stock by the same person or persons is not considered to
                                         cause a change in the ownership of the corporation (or to cause a change in the effective
                                         control of the corporation). An increase in the percentage of stock owned by any one
                                         person, or persons acting as a group, as a result of a transaction in which the corporation
                                         acquires its stock in exchange for property will be treated as an acquisition of stock
                                         for this purpose. This definition applies only when there is a transfer of stock of a
                                         corporation (or issuance of stock of a corporation) and stock in such corporation remains
                                         outstanding after the transaction.

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For
purposes of paragraphs (A), (B) and (C), persons will not be considered to be “acting as a group” solely because they
purchase or own stock of the same corporation at the same time, or as a result of the same public or private offering. However,
persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation,
purchase or acquisition of stock, or similar business transaction with the corporation. If a person, including an entity, owns
stock in both corporations that enter into a merger, consolidation, purchase or acquisition of stock, or similar transaction,
such shareholder is considered to be acting as a group with other shareholders in a corporation prior to the transaction giving
rise to the change and not with respect to the ownership interest in the other corporation.

		(B)	A
                                         change in the effective control of a corporation occurs on the date that a majority of
                                         members of the corporation’s board of directors is replaced during any 12-month period
                                         by directors whose appointment or election is not endorsed by a majority of the members
                                         of the corporation’s board of directors prior to the date of the appointment or election,
                                         provided that the term corporation refers solely to the relevant corporation, for which
                                         no other corporation is a majority shareholder. In the absence of an event described
                                         above, a change in the effective control of a corporation will not have occurred.

A
change in effective control also may occur in any transaction in which either of the two corporations involved in the transaction
has a Change in Control event.

If
any one person, or more than one person acting as a group (as defined under paragraph (A), above) is considered to effectively
control a corporation, the acquisition of additional control of the corporation by the same person or persons is not considered
to cause a change in the effective control of the corporation.

		(C)	A
                                         change in the ownership of a substantial portion of a corporation’s assets occurs on
                                         the date that any one person, or more than one person acting as a group (as defined under
                                         paragraph (A), above) acquires (or has acquired during the 12-month period ending on
                                         the date of the most recent acquisition by such person or persons) assets from the corporation
                                         that have a total gross fair market value equal to or more than forty (40%) of the total
                                         gross fair market value of all the assets of the corporation immediately prior to such
                                         acquisition or acquisitions. For this purpose, gross fair market value means the value
                                         of the assets of the corporation, or the value of the assets being disposed of, determined
                                         without regard to any liabilities associated with such assets.

There
is no Change in Control event under paragraph (C) when there is a transfer to an entity that is controlled by the
shareholders of the transferring corporation immediately after the transfer, as provided in this paragraph. A transfer of
assets by a corporation is not treated as a change in the ownership of such assets if the assets are transferred to: (i) a
shareholder of the corporation (immediately before the asset transfer) in exchange for or with respect to its stock; (ii) an
entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the
corporation; (iii) a person, or more than one person acting as a group (as defined under paragraph (A), above), that owns,
directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding stock of the
corporation; or (iv) an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly
or indirectly, by a person described in clause (iii), above. For purposes of this paragraph, and except as otherwise
provided, a person’s status is determined immediately after the transfer of the assets. For example, a transfer to a
corporation in which the transferor corporation has no ownership interest before the transaction, but which is a
majority-owned subsidiary of the transferor corporation after the transaction is not treated as a change in the ownership of
the assets of the transferor corporation.

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		2.8	“Clawback
                                         Amount” means that portion of each Participant’s Deferral Account that is
                                         withheld by the Employer and thereafter subject to forfeiture by the Participant, if
                                         credited to the Participant’s account anytime during the two (2) preceding calendar
                                         years and up to the date of a Participant’s Separation from Service, as provided
                                         for in Section 6.10.

 

		2.9	“Code”
                                         means the Internal Revenue Code of 1986, as amended from time to time.

 

		2.10	“Deferral
                                         Account” means an unfunded account established by the Employer on behalf of an
                                         Employee Participant, as provided for in the second paragraph of Section 5.1.

 

		2.11	“Deferred
                                         Compensation Account” means a deferral account attributable to the portion of a
                                         Participant’s taxable earnings (including annual salary, commissions, incentive plan
                                         distributions and other taxable amounts), which the Participant elects to defer, until
                                         the conditions for distribution of such amounts as set forth in Article 6 are met.

 

		2.12	“Disability”
                                         means inability 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 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, results in receiving income replacement benefits for a
                                         period of not less than three (3) months under an accident and health plan covering Employees
                                         of the Participant’s Employer, and which constitutes a disability within the meaning
                                         of Code Section 409A(a)(2)(C).

 

		2.13	“Effective
                                         Date” means June 30, 2013.

 

		2.14	“Employee”
                                         means an employee of an Employer. An employee is eligible to participate in the Plan,
                                         to the extent set forth in Section 3.1.

 

		2.15	“Employer”
                                         means Firstsun Capital Bancorp., Salina, Kansas, or Sunflower Bank, N.A., Salina, Kansas,
                                         or any successor in interest of either, or such other employer as shall adopt the Plan,
                                         from time to time, with the approval of the Board of Directors of the Plan Sponsor.

 

		2.16	“Enrollment
                                         Agreement” means the written agreement entered into with eligible Employees, as
                                         set forth in Section 4.4.

 

		2.17	“ERISA”
                                         means the Employee Retirement Income Security Act of 1974, as amended.

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		2.18	“Key
                                         Employee” means, if applicable, a Participant who is a “key employee”
                                         as defined in Code section 416(i), without regard to paragraph (5) thereof; provided
                                         that the Employer has issued stock which is publicly traded on an established securities
                                         market, or otherwise.

 

		2.19	“Participant”
                                         means any Employee who fulfills the eligibility and enrollment requirements for participation
                                         in the Plan, as set forth in Article 3.

 

		2.20	“Plan”
                                         means the Firstsun Capital Bancorp. Deferred Compensation Plan, effective June 30, 2013,
                                         as herein set forth, and as it may be amended from time to time.

 

		2.21	“Plan
                                         Sponsor” means Firstsun Capital Bancorp., Salina, Kansas, or any successor in interest.

 

		2.22	“Plan
                                         Year” means a calendar year.

 

		2.23	“Retirement
                                         Date” means a severance of the Participant’s employment relationship with the Employer
                                         (other than by Disability or death), on account of retirement. Employee has reached the
                                         age of 60 and has completed five or more years of service.

 

		2.24	“Separation
                                         from Service” means the Participant’s death, retirement on a Retirement Date,
                                         or other Termination of Service within the meaning of Code Section 409A. No separation
                                         from service shall be deemed to occur due to military leave, sick leave, or other bona
                                         fide leave of absence if the period of such leave does not exceed six (6) months or,
                                         if longer, so long as right to reemployment is provided by contract. A Participant shall
                                         not be treated as having a separation from service if the Employee provides more than
                                         insignificant services for the Employer following the Employee’s actual or purported
                                         separation from service with the Employer. Services shall be treated as not being insignificant
                                         if such services are performed at an annual rate that is at least equal to twenty percent
                                         (20%) of the services rendered by the Employee for the Employer, on average, during the
                                         immediately preceding three (3) full calendar years of employment (or if employed less
                                         than three (3) years, such shorter period of employment) and the annual base compensation
                                         for such services is at least equal to twenty percent (20%) of the average base compensation
                                         earned during the final three (3) full calendar years of employment (or if employed less
                                         than three (3) years, such shorter period of employment). Where a Participant continues
                                         to provide services to the Employer other than as an Employee, a separation from service
                                         will not be deemed to have occurred if the Participant is providing services at an annual
                                         rate that is fifty percent (50%) or more of the services rendered, on average, during
                                         the immediately preceding three (3) full calendar years of employment (or if employed
                                         less than three (3) years, such lesser period) and the annual base compensation for such
                                         services is fifty percent (50%) or more of the annual base compensation earned during
                                         the final three (3) full calendar years of employment (or if less, such lesser period).

 

		2.25	“Termination
                                         of Service” means a termination of the employment relationship with the Employer
                                         (constituting a separation from service within the meaning of Treasury Regulation Section
                                         1.409A-1(h)), prior to Retirement Date or death.

 

		2.26	“Unforeseeable
                                         Emergency” means a severe financial hardship to the Participant resulting from illness
                                         or an accident of the Participant, the Participant’s spouse, or a dependent of the Participant
                                         (as defined in Code Section 152(a)), loss of the Participant’s property due to casualty,
                                         or other similar extraordinary and unforeseeable circumstances arising as a result of
                                         events beyond the Participant’s control.
The amounts distributed with respect to an unforeseeable emergency, as herein defined, shall not exceed the amounts necessary
to satisfy such emergency, plus amounts necessary to pay taxes reasonably anticipated by the Participant as a result of the distribution,
after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance
or otherwise, or by liquidation of the Participant’s assets (to the extent such liquidation would not itself cause severe financial
hardship).

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ARTICLE
3 

PARTICIPATION

 

		3.1	Eligibility

 

Only
Employees (specified individually or by classification category), by resolution of the Board of Directors of the respective Employers
shall be eligible to become Participants in accordance with and subject to Section 3.2. The respective Boards of Directors may,
from time to time, by board resolution or by authority granted to the Employer by board resolution, designate additional individuals
or classification categories as eligible to become Participants in accordance with and subject to Section 3.2. The Employees eligible
to become Participants shall at all times be limited by the respective Board of Directors to a select group of management or highly
compensated Employees.

 

		3.2	Enrollment

 

Any
Employee first eligible to participate in accordance with Section 3.1 as of the Effective Date, shall become a Participant upon
such Employee’s selection as a Participant in writing by the applicable Board of Directors, as provided for in Section 3.1,
and submitting in writing, an Enrollment Agreement form to be provided by the Administrator, within thirty (30) days of the Effective
Date. Such Enrollment Agreement shall contain the information specified in Section 4.4 and may, at the Employee’s option,
provide for a deferral of all or a portion of his or her annual salary, commencing with the first pay period following the later
of: (i) the Plan’s Effective Date, and (ii) written notification to the Administrator of an election to defer all or a portion
of the Participant’s annual salary (expressed as either a dollar amount or percentage), in accordance with the Plan.

 

Any
Employee first eligible to participate in accordance with Section 3.1 after the Effective Date, shall become a Participant upon
submitting in writing, an Enrollment Agreement form to be provided by the Administrator, within thirty (30) days of becoming an
eligible Employee. Such Enrollment Agreement shall contain the information specified in Section 4.4 and may, at the Employee’s
option, provide for a deferral of all or a portion of his or her annual salary, commencing with the first pay period following
written notification to the Administrator of an election to defer all or a portion of the Participant’s annual salary (expressed
as either a dollar amount or percentage), in accordance with the Plan.

 

Any
other Employee eligible to participate in accordance with Section 3.1 after the Effective Date, who does not enroll when first
eligible under the preceding paragraph, shall become a Participant as of the first day of the calendar Plan Year following his
or her submitting in writing, an Enrollment Agreement form to be provided by the Plan Administrator. Such Enrollment Agreement
shall contain the information specified in Section 4.4 and may, at the Employee’s option, provide for a deferral of all
or a portion of his or her annual salary (expressed as either a dollar amount or percentage), in accordance with the Plan.

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		3.3	Duration
                                         of Election

 

Subject
to Section 3.4, once an election to defer all or a portion of annual salary has been made by the Participant, such deferral election
shall continue in effect until a distribution of benefits, pursuant to Article 6. An election to defer a percentage of annual
salary shall be applied uniformly to payments of annual salary that would otherwise be made. An election to defer a dollar amount
of annual salary shall be applied proportionately over the remaining pay periods in each calendar year, until the full amount
elected has been deferred, unless an alternate procedure is requested by the Employee and agreed to by the Plan Administrator.

 

		3.4	Duration
                                         of Participation and Modification or Cessation of Deferrals

 

A
Participant shall continue participation in the Plan until such time as the Participant is no longer eligible to participate in
the Plan by action of the Board of Directors or until all amounts credited to the Participant’s Plan Account have been distributed.
An individual whose continuing participation in the Plan has been terminated under the preceding sentence shall be considered
a Participant solely with respect to amounts that have been previously credited to the Participant’s Plan Account.

 

A
Participant may modify or cease his or her election to defer annual salary, by written direction filed with the Plan Administrator
prior to the end of any calendar Plan Year, with respect to annual salary earned after the end of the Plan Year during which such
direction is filed with the Plan Administrator. Any amounts previously credited to the Participant shall be distributed in accordance
with Article 6.

 

		3.5	Reenrollment
                                         of Participation

 

A
Participant whose future participation in the Plan has been terminated either: (i) by action of the Board of Directors, or (ii)
on account of commencement of or a total distribution of Plan Account benefits, may thereafter file a new Enrollment Agreement
at such time as the Employee is again eligible to participate in the Plan in the same manner as a new Participant, pursuant to
the third paragraph of Section 3.2, subject to re-selection for participation pursuant to Section 3.1.

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ARTICLE
4 

ADMINISTRATION

 

		4.1	Responsibility
                                         for Administration and Investment

 

The
Plan shall be administered by a Plan Administrator, who shall be an officer of an Employer, chosen by the Board of Directors.
Unless the Board of Directors of the Plan Sponsor designates otherwise, the Plan Sponsor shall be the Plan Administrator. The
Administrator shall be responsible for all functions related to the management of Plan accounts and their distribution, in accordance
with the provisions of the Plan.

 

		4.2	Authority
                                         of the Administrator

 

The
Administrator shall have the full power and authority to promulgate, adopt, amend, or revoke such rules and regulations as are
necessary to implement and maintain the Plan, consistent with the provisions of the Plan.

 

The
Administrator shall have the authority to require such supportive information, documents, or evidence, as is deemed necessary,
in order to carry out the Administrator’s responsibilities under the Plan.

 

The
Employer reserves the power to rule on any matter involving construction of the Plan and interpretation of the terms and provisions
thereof, and may exercise said authority or delegate such authority to the Administrator. Any decision hereunder on any such matter
shall be final and binding upon all parties.

 

		4.3	Duties
                                         of the Administrator

 

Whenever
an Employee becomes eligible for Plan participation, the Participant shall receive from the Administrator an Enrollment Agreement
form as provided for in Section 4.4, which form shall include the amount or percentage, if any, to be deferred, and a notation
that such amount, as well as Deferral Account amounts, shall not, to the extent provided by applicable law, be included as a part
of the Participant’s income with respect to federal, state or local income taxes. Any annual salary deferred by Participants,
will, to the extent required by applicable law, be included as earnings with respect to Federal “FICA” and “FUTA”
taxes at the time of deferral.

 

		4.4	Enrollment
                                         Agreements

 

The
Employer shall enter into a separate written Enrollment Agreement with each Participant, addressing Deferral Account amounts as
well as deferral of compensation, if elected, which Agreement shall: (i) set forth the obligations contained in the Plan; (ii)
set forth the timing and method of payout upon events specified in the Plan; (iii) specify the amounts of annual salary, if any,
to be deferred; (iv) specify the name of any Beneficiary or Beneficiaries; and (v) set forth such other information as the Employer
or the Administrator deems necessary to administer the Plan.

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		4.5	Administrative
                                         and Investment Costs

 

It
is the intent of the Employer that the Plan shall not be implemented or administered so as to be an expense to the Employer, other
than for the Employer’s obligation to pay the Deferral Account and Deferred Compensation Account, if any, amounts, as provided
in the Plan. Any expenses associated with the Plan, including but not limited to, administrative and investment costs, may be
charged against Participants’ Accounts on a pro rata basis, as determined by the Employer and/or the Administrator. The Employer
and/or Administrator shall report to the Board of Directors, from time to time, the Plan costs (if any), so that the Board of
Directors can properly analyze these costs. Included among such costs, but not limited thereto, shall be the costs (if any), of
making investments, accounting for Deferral Account and Deferred Compensation Account amounts, and providing information to eligible
Participants.

    	9

    	 

    

ARTICLE
5

PARTICIPANTS
ACCOUNTS AND PLAN INVESTMENTS

 

		5.1	Establishment
                                         of Accounts

 

The
Administrator shall establish a bookkeeping Account for each Participant, which account shall be credited as of each date the
Participant’s annual salary is deferred, and each date that a Deferral Account amount is credited to a Participant, as provided
in the following paragraph of this Section. Subject to Section 4.5, each Account shall also be credited with any increase, or
charged with any decrease, incurred by the Employer and attributable to any investment and/or crediting of Deferred Compensation
Account or a Deferral Account, under Section 5.3. The Employer is only under a contractual obligation to make payments under the
Plan in accordance with this Article 5, as payments become due hereunder, and the Employer is not a guarantor of the Plan. The
Board of Directors shall not be liable for any claims raised by any Participant, or Beneficiary, by reason of participation in,
or receipt of benefits from, the Plan. All Participants shall accept any policy established, or determinations made, by the Administrator
or Board of Directors concerning the resolution of any Plan accounting or recordkeeping errors or omissions.

 

The
Employer shall, in its sole discretion, with respect to each Plan Year, make Account contributions, from time to time, on behalf
of any (or all) Participants who are Employees, to an unfunded Deferral Account established on behalf of each such Participant.
Any such Deferral Account contributions may be credited on behalf of a Participant as either a percentage of annual salary or
as a fixed dollar amount. The Employer is under no obligation to make Deferral Account contributions in each Plan Year, nor to
make Deferral Account contributions on behalf of every Participant who is an Employee in each Plan Year.

 

		5.2	Unsecured
                                         General Creditor

 

Title
to, and beneficial ownership of, any assets, whether in cash or investments (including any common stocks, life insurance policies,
annuity contracts or mutual fund accounts), which the Employer may earmark to pay or measure any Deferred Compensation Account
or Deferral Account under the Plan, shall, at all times, remain as part of the general assets of the Employer. A Participant and
any Beneficiary or Beneficiaries shall not have any property interest whatsoever in any specific asset of the Employer on account
of the establishment of any Deferral Account or an election to defer annual salary under the Plan. Subject to Section 10.4, to
the extent that any person acquires a right to receive payments from the Employer under the terms of the Plan, such right shall
be no greater than the right of any unsecured general creditor of the Employer.

 

		5.3	Investment
                                         Options

 

Upon
enrollment in the Plan under Section 3.2, each Participant may request, either within the Enrollment Agreement for deferral
of compensation or on another form to be provided for such purpose by the Administrator, that his or her Deferral Account and
Deferred Compensation Account, if applicable, be adjusted for gains and losses as if invested in one or more investment
options as may be made available by the Employer in its sole discretion. The Employer is under no obligation to offer such
investment option or options, or to honor such Participant requests hereunder. Any such investment option or options
hereunder shall be authorized by the Board of Directors of the Plan Sponsor.

    	10

    	 

    

		5.4	Investment
                                         Elections

 

Each
Participant may request that the Participant’s Deferral Account and Deferred Compensation Account, if applicable, be adjusted
to reflect gains and losses as if invested l00% in any of the then available investment options under Section 5.3, if any, or
alternatively, in any combination of then available investment options (so long as the total equals one hundred percent (100%)).
A Participant’s preference shall specify the multiples of said Deferral Account and Deferred Compensation Account, if any, which
may be deemed to be invested in each of the said investment options. Such requests shall be acted upon by the Employer in its
sole discretion. To the extent that any Participant shall fail to direct the investment of his or her Deferral Account and Deferred
Compensation Account, if any, it shall be deemed to be invested in the Vanguard Target Retirement Fund mutual fund (or
in an alternative target date mutual fund if Vanguard Target Retirement Fund is no longer used by the Plan), with the target
date nearest to the date the Participant will attain age 65.

 

		5.5	Changes
                                         in Investment Elections

 

A
Participant’s investment request for the Participant’s Deferral Account and Deferred Compensation Account, if any, may be changed
from time to time by the Participant, provided the revised investment request is filed and accepted by the Administrator in advance
of the implementation of such change with the Administrator, on a form to be provided by the Administrator. A Participant may
request by notification to the Administrator, in a manner specified by the Administrator, no more often than once per business
day (unless another number is specified by the Administrator), to change his or her investment request effective with respect
to his or her Deferral Account and Deferred Compensation Account, if applicable, values held on the Accounting Date coincident
with or next following implementation of such request by the Administrator, which request shall be honored in the sole discretion
of the Administrator.

 

		5.6	Investment
                                         of Funds

 

The
Administrator may invest assets of the Employer in a manner designed to reflect Participants’ investment preferences pursuant
to Section 5.4. Such investments shall be made directly in the name of the Employer, or through a grantor trust arrangement established
by the Employer. The Board of Directors reserves the authority, without advance notice to the affected Participants, to eliminate
any or all of the investment options created by the Plan, if any, and may direct the Administrator to reinvest, or withhold from
investment, assets of the Employer affected by such action, in any manner consistent with the provisions of the Plan.

    	11

    	 

    

		5.7	Investment
                                         Option Valuations

 

Investment
options under the Plan, if any, are to be valued as of each Accounting Date, so that the value of each account maintained
can be determined as of any Accounting Date pursuant to a uniform system of accounting. The Administrator may, in his or her
sole discretion, provide each Participant with a statement addressing their Deferral Account and Deferred Compensation
Account, if applicable, following the end of each calendar year, and may provide more frequent statements if deemed
appropriate. A Participant shall be deemed to have accepted as current any such statement, except to the extent that he or
she files a written objection or exception thereto with the Plan Administrator within thirty (30) days after the furnishing
of such statement.

 

A
Participant’s interest in the Plan shall be valued for a single-sum and/or installment payments as of the Accounting Date coincident
with or immediately following receipt by the Administrator of written notification of an Unforeseeable Emergency, the Participant’s
Retirement Date, Disability, death, Termination of Service, a Change in Control, or selected date of distribution, pursuant to
Article 6, whichever is applicable.

 

All
withdrawals and distributions made under the Plan shall be made in accordance with Article 6, subject to any applicable federal,
state or local tax authority’s deferral of compensation and income tax withholding laws.

    	12

    	 

    

ARTICLE
6 

DISTRIBUTIONS

 

		6.1	Distribution
                                         Upon Retirement Date or Death; Vesting

 

Subject
to the provisions of Section 5.2, 6.8 and 6.10, and except as otherwise designated under the Participant’s Enrollment Agreement
form in accordance with Section 6.6, upon the Retirement Date or death of a Participant, Plan payments shall be distributed to
the Participant, or to a Beneficiary or Beneficiaries in the case of death, in the manner specified in Section 6.7; provided,
however, that in the case of a Retirement Date, the Participant has advised the Administrator in writing at least thirty (30)
days prior to Retirement Date, if so elected. If a Participant does not provide such advance written notice, the Administrator
may delay, in his or her sole discretion, the initial installment or single lump-sum payment for such additional period of time
as he or she shall require; provided however, that in no event shall such delay extended beyond ninety (90) days following the
Participant’s Separation From Service, except as required by Section 6.9, if applicable, or Section 6.10.

 

Subject
to Sections 6.10 and 10.4, each Participant shall have a vested interest in his or her Deferral Account and Deferred Compensation
Account, if any, upon a Separation From Service.

 

		6.2	Distribution
                                         Upon Termination Because of Disability

 

Subject
to the provisions of Section 5.2 and 6.10, upon the Separation From Service of a Participant because of Disability, Plan payments
may be distributed to the Participant in the manner specified in Section 6.7.

 

		6.3	Distribution
                                         Upon Termination of Service Prior to Retirement Date for Reasons Other Than Death or
                                         Disability

 

Subject
to the provisions of Section 5.2, 6.8 and 6.10, and except as otherwise designated under the Participant’s Enrollment Agreement
form in accordance with Section 6.6, upon the Participant’s Separation From Service prior to Retirement Date for any reason other
than death or Disability, Plan payments shall be distributed to the Participant in the manner specified in Section 6.7.

 

		6.4	Distribution
                                         Upon Establishment of Unforeseeable Emergency

 

Subject
to the provisions of Section 5.2 and 6.10, upon submission by a Participant of documentation specified by the Administrator in
support of establishing an Unforeseeable Emergency, and acceptable to the Administrator in establishing such severe financial
hardship, Plan payments in an amount determined by the Administrator and in accordance with the requirements of Section 2.5 shall
be distributed to the Participant in the manner specified in Section 6.7.

    	13

    	 

    

		6.5	Distribution
                                         Upon Change in Control

 

Subject
to the provisions of Section 5.2 and 6.10, a Participant may elect Plan payments upon a Change in Control, in the manner specified
in Section 6.7.

 

		6.6	Distribution
                                         Upon Selected Date

 

Subject
to the provisions of Section 5.2, 6.8 and 6.10, upon attainment of the date of distribution selected by the Participant under
the Participant’s Enrollment Agreement for deferral of compensation, Plan payments shall be distributed to the Participant
in the manner set forth in Section 6.7; provided, however that in the event of the Participant’s death, Disability, distribution
for Unforeseeable Emergency or distribution on account of a Change in Control, or separation, prior to such selected date, Plan
payments shall thereupon be made instead in accordance with Section 6.1, 6.2, 6.4 or 6.5 whichever is applicable.

 

		6.7	Modes
                                         of Distribution

 

Subject
to the following paragraph, and the provisions of Sections 6.8 and 6.10, a distribution pursuant to Section 6.1, 6.2, 6.3, 6.4,
6.5, or as designated pursuant to Section 6.6, whichever is applicable, shall be made according to whichever of the following
payment schedules the Participant shall designate in his or her Participant’s Enrollment Agreement:

		(a)	in
                                         a single lump sum, in which case the amount of the payment shall be equal to the amount
                                         of the entire balance credited to the Participant’s Deferral Account and Deferred Compensation
                                         Account, if applicable, as of the last Accounting Date before the Benefit Commencement
                                         Date;

		(b)	in
                                         such number of annual installment payments (not to exceed fifteen such payments) as the
                                         Participant shall specify in his or her Enrollment Agreement, in which case the amount
                                         of each payment shall be determined as of the last Accounting Date before the Benefit
                                         Commencement Date (or, in the case of the second and subsequent installments, the anniversary
                                         of such date) and shall be equal to the quotient of (A) the entire amount then credited
                                         to the Participant’s Deferral Account and Deferred Compensation Account, if applicable,
                                         divided by (B) the number of installment payments remaining to be made.

The
mode of distribution must be elected prior to the establishment of a Deferred Compensation Account, if applicable, to which it
relates, or, if elected later, then such election must comply with Section 6.8. If the Participant fails to designate a payment
schedule on his or her Employee Enrollment Agreement, or, if in the Administrator’s discretion, the entire balance credited
to the Participant’s Deferral Account and Deferred Compensation Account, if applicable, as of the last Accounting Date prior to
the Benefit Commencement Date is less than $10,000, then payment shall be made in a single lump-sum.

    	14

    	 

    

		6.8	Changes
                                         in Time and Form of Distribution of Existing Designations

 

A
Participant may amend his or her existing designations regarding either a delay of the date on which payment will be, or
installments will begin being made, or the payment schedule to be followed with respect to previous designations; provided
that: (i) each such election may not take effect until at least twelve (12) months after the date on which the revised
election hereunder is made; (ii) in the case of an election (other than on account of Disability, death, or Unforeseeable
Emergency), the date of first payment with respect to which such election is made is deferred for a period of not less than
five (5) years from the date such payment would otherwise have been made; and (iii) in the case of an election on account of
a selected date, pursuant to Section 6.6, the election to delay payment is made not less than twelve (12) months prior to the
date of the scheduled payment, or first scheduled installment payment, previously elected under such Section.

 

		6.9	Delay
                                         in Distribution for Key Employees

 

In
the case of a Plan distribution to a Key Employee, if applicable, on account of Separation From Service (other than due to death
or Disability), a distribution may not be made before the date which is six (6) months following such Participant’s Separation
From Service (or, if earlier, the date of the Participant’s death).

 

		6.10	Delay
                                         in Distribution and Forfeiture of Certain Deferral Account Amounts

 

In
the case of any Deferral Account distribution pursuant to Section 6.1, 6.2, 6.3, 6.4, 6.5 or 6.6, whichever applies to a Participant,
the Clawback Amount of any such distribution shall be withheld from distribution by the Employer and all or a portion of such
withheld amount shall be subject to forfeiture by the Participant during the period of time from the Participant’s Separation
From Service until the end of the third calendar year following such date of Separation From Service. At the end of such period,
or on any earlier date following the Participant’s Separation From Service, the Employer, in its sole discretion, may release
all or a portion of such Clawback Amount from the withheld status provided hereunder, and such Clawback Amount shall thereupon
be distributed to the Participant on the later of: (i) the date the Clawback Amount is no longer subject to withheld status hereunder,
or (ii) the date of Deferral Account distribution pursuant to Section 6.1, 6.2, 6.3, 6.4, 6.5 or 6.6, whichever applies. Any distribution
pursuant to clause (i) of the preceding sentence shall be distributed to the Participant in a single lump sum.

 

		6.11	Beneficiary
                                         Designations

 

At
the time a Participant designates a mode of distribution on his or her Enrollment Agreement, pursuant to Section 6.7, the Participant
shall specify the payment alternative applicable to a Beneficiary or Beneficiaries in the event the Participant should die prior
to receiving the full amount of the Participant’s Account, and said alternative may be the same or different from the alternative
elected for the Participant.

 

If
a Participant entitled to receive, or receiving, a distribution under the Plan should die prior to the time the Participant
has received the full amount to which entitled at the date of death, all remaining amounts shall be paid to the deceased
Participant’s Beneficiary or Beneficiaries, according to the Participant’s Enrollment Agreement form of election
as specified in the above paragraph, or, if the Beneficiary or Beneficiaries (and any contingent Beneficiary or
Beneficiaries) are deceased, or if no Beneficiary was selected by the Participant, to the Participant’s estate in a
single lump-sum.

    	15

    	 

    

ARTICLE
7

NON-ASSIGNABILITY
AND 

LIMITATION ON PAYMENTS

 

		7.1	Non-Assignability

 

The
Plan and any Enrollment Agreement entered into between the Employer and a Participant, and the benefits, procedures or payments
thereunder are non-assignable and non-transferable, and shall not be sold, assigned, pledged, commuted, transferred or otherwise
conveyed by any Participant or Beneficiary.

 

The
Employer shall be the owner of all Deferral Accounts and Deferred Compensation Accounts hereunder and shall be the grantor of
any trust and sole beneficiary of any investment fund contract or contracts entered into pursuant to the Plan. The Administrator,
or his or her agents, shall be the custodian of any such investment fund contracts and the Administrator, or his or her agents,
shall take the steps necessary to provide a place of safekeeping for any such contracts.

 

Except
as otherwise required by applicable law, any Deferral Account or Deferred Compensation Account payments made pursuant to the Plan
shall not be subject to attachment, garnishment, or execution, or to transfer by operation of law in the event of a Participant’s
or a Beneficiary’s bankruptcy or insolvency.

 

		7.2	Limitation
                                         on Payments

 

The
Plan shall not provide for the payment of amounts other than Deferral Account and Deferred Compensation Account balances under
the Plan. The Employer, Board of Directors and Plan Administrator shall have no responsibility, contractual or otherwise, for
Participant investment requests made in accordance with the Plan, nor for any loss of Participant account values resulting from
such requests, to the extent honored by the Employer.

    	16

    	 

    

ARTICLE
8 

AMENDMENT OR TERMINATION

 

		8.1	Amendment
                                         of Plan

 

The
Board of Directors of the Plan Sponsor shall have the authority to amend the Plan from time to time. No amendment or modification
shall affect the rights of Participants or their Beneficiaries to the receipt of Deferral Account balances or Deferred Compensation
Account balances, as the case may be, credited prior to any such amendment or modification.

 

		8.2	Termination
                                         of Plan

 

The
Board of Directors of each adopting Employer shall have the authority to terminate the Plan with respect to Participants of such
Employer, at any time, subject to the following requirements of Code Section 409A. Upon such termination of the Plan: (i) each
Participant’s full annual salary, to the extent not previously deferred under the Plan, will be thereupon restored; and (ii) the
Administrator shall treat all Participants of the terminating Employer as if they had a Separation From Service on the date of
Plan termination, and thereupon pay to each Participant the full value of his or her Deferral Account and Deferred Compensation
Account, if applicable, in accordance with Section 6.7 and subject to Sections 6.9 and 6.10; provided, however, that such Plan
termination shall occur only under the following circumstances and conditions:

 

		(a)	The
                                         Board of Directors of each adopting Employer may terminate the Plan within twelve (12)
                                         months of a corporate dissolution taxed under Code section 331, or with approval of a
                                         bankruptcy court pursuant to 11 U.S.C. §503(b)
(1) (A), 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.

 

		(b)	The
                                         Board of Directors of each adopting Employer may terminate the Plan within the thirty
                                         (30) days preceding a Change in Control (but not following a Change in Control), provided
                                         that the Plan shall only be treated as terminated if all substantially similar arrangements
                                         sponsored by the Employer are terminated so that the Employer’s Participants and
                                         all participants under substantially similar arrangements are required to receive all
                                         amounts of compensation deferred under the terminated arrangements within twelve (12)
                                         months of the date of the termination of the Plan and all other substantially similar
                                         arrangements.

 

		(c)	The
                                         Board of Directors of each adopting Employer may terminate the Plan provided that: (i)
                                         the termination and liquidation does not occur proximate to a downturn in the financial
                                         health of the Employer; (ii) all arrangements sponsored by the Employer that would be
                                         aggregated with this Plan under final Treasury regulations section 1.409A-3(j) (if the
                                         Participants covered by this Plan were also covered by any of those other arrangements)
                                         are also terminated; (iii) no payments other than payments that would be payable under the terms of the Plan if the termination had not occurred are
made within twelve (12) months of the termination of the Plan; (iv) all payments are made within twenty-four (24) months of the
termination of the Plan; and (v) the Employer does not adopt a new plan or arrangement that would be aggregated with any terminated
arrangement under final Treasury regulations section 1.409A-3(j) if the Participant participated in both arrangements, at any
time within three (3) years following the date of termination of the Plan.

    	17

    	 

    

ARTICLE
9 

CLAIMS PROCEDURE

 

		9.1	Notice
                                         of Denial

 

If
a Participant or a Beneficiary is denied a claim for benefits under the Plan, the Administrator shall provide to the
claimant written notice of the denial within ninety (90) days after the Administrator receives the claim, unless special
circumstance require an extension of time for processing the claim. If such an extension of time is required, written notice
of the extension shall be furnished to the claimant prior to the termination of the initial 90-day period. In no event shall
the extension exceed a period of ninety (90) from the end of such initial period. Any extension notice shall indicate the
special circumstances requiring the extension of time, the date by which the Administrator expects to render the final
decision, the standards on which entitlement to benefits are based, the unresolved issues that prevent a decision on the
claim and the additional information needed to resolve those issues.

 

		9.2	Contents
                                         of Notice of Denial

 

If
a Participant or a Beneficiary is denied a claim for benefits under the Plan, the Administrator shall provide to such claimant
written notice of the denial which shall set forth: (i) the specific reasons for the denial; (ii) specific references to the pertinent
provisions of the Plan on which the denial is based; (iii) a description of any additional material or information necessary for
the claimant to perfect the claim and an explanation of why such material or information is necessary; and (iv) an explanation
of the Plan’s claim review procedures, and the time limits applicable to such procedures, including a statement of the claimant’s
right to bring a civil action under Section 502(a) of ERISA following an adverse benefit determination on review.

 

		9.3	Right
                                         to Review

 

After
receiving written notice of the denial of a claim, a claimant or his or her representative shall be entitled to: (i) request a
full and fair review of the denial of the claim by written application to the Board of Directors; (ii) request, free of charge,
reasonable access to, and copies of, all documents, records, and other information relevant to the claim; (iii) submit written
comments, documents, records, and other information relating to the denied claim to the Board of Directors; and (iv) a review
that takes 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.

 

		9.4	Application
                                         for Review

 

If
a claimant wishes a review of the decision denying his or her claim to benefits under the Plan, the claimant must submit the written
application to the Board of Directors within sixty (60) days after receiving written notice of the denial.

    	18

    	 

    

		9.5	Hearing

 

Upon
receiving such written application for review, the Board of Directors may schedule a hearing for purposes of reviewing the claimant’s
claim, which hearing shall take place not more than thirty (30) days from the date on which the Board of Directors received such
written application for review.

 

		9.6	Notice
                                         of Hearing

 

At
least ten (10) days prior to the scheduled hearing, the claimant and his or her representative designated in writing, if any,
shall receive written notice of the date, time, and place of such scheduled hearing. The claimant or his or her representative,
if any, may request that the hearing be rescheduled, for his or her convenience, on another reasonable date or at another reasonable
time.

 

		9.7	Counsel

 

All
claimants requesting a review of the decision denying their claim for benefits may employ counsel, at their own expense, for purposes
of the hearing.

 

		9.8	Decision
                                         on Review

 

No
later than sixty (60) days following the receipt of the written application for review, the Board of Directors shall submit its
decision on the review in writing to the claimant involved and to his or her representative, if any, unless the Board of Directors
determines that special circumstances (such as the need to hold a hearing) require an extension of time, to a day no later than
one hundred twenty (120) days after the date of receipt of the written application for review. If the Board of Directors determines
that the extension of time is required, the Board of Directors shall furnish to the claimant written notice of the extension before
the expiration of the initial sixty (60) day period. The extension notice shall indicate the special circumstances requiring an
extension of time and the date by which the Board of Directors expects to render its decision on review. In the case of a decision
adverse to the claimant, the Board of Directors shall provide to the claimant written notice of the denial which shall include:
(i) the specific reasons for the decision; (ii) specific references to the pertinent provisions of the Plan on which the decision
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 to the claimant’s claim for benefits; and (iv) an explanation
of the Plan’s claim review procedures, and the time limits applicable to such procedures, including a statement of the claimant’s
right to bring an action under Section 502(a) of ERISA following the denial of the claim upon review.

    	19

    	 

    

ARTICLE
10 

MISCELLANEOUS PROVISIONS

 

		10.1	No
                                         Right to Continued Employment

 

Neither
the establishment of the Plan, nor any provisions of the Plan, nor any action of the Administrator or the Employer, shall be held
or construed to confer upon any Employee any right to a continuation of employment by the Employer. The Employer reserves the
right to deal with any Employee to the same extent and in the same manner that it would if the Plan had not been adopted.

 

		10.2	Construction
                                         of Language

 

Wherever
appropriate in the Plan, words used in the singular may be read in the plural, words used in the plural may be read in the singular,
and words importing the masculine gender shall be deemed to refer equally to the female gender. Any reference to a section number
shall refer to a section of the Plan, unless otherwise indicated.

 

		10.3	Incompetency

 

If
the Employer determines that any person entitled to payments under the Plan is incompetent by reason of physical or mental disability,
it may cause all payments thereafter becoming due to such person to be made to any other person for his or her benefit, without
responsibility to follow application of amounts so paid. Payments made pursuant to this provision shall completely discharge the
Plan, the Board of Directors, the Employer and the Plan Administrator.

 

		10.4	Dishonesty

 

If
the Employer determines that any Participant entitled to payments under the Plan is embezzling or otherwise appropriating Employer
funds for his or her benefit, or is otherwise found guilty of a crime resulting in the dismissal from employment by the Employer
of such Participant, the Employer may cause all payments thereafter becoming due to such Participant to be forfeited under the
Plan.

 

		10.5	Headings

 

The
headings of articles and sections are included solely for convenience of reference, and if there be any conflict between the text
of such headings and the text of the Plan, the text within the Plan sections shall control.

 

		10.6	Severability

 

A determination that
any provision of the Plan is invalid or unenforceable shall not effect the validity or enforceability of any other provision hereof.

    	20

    	 

    

		10.7	Waiver

 

Failure
to insist upon strict compliance with any of the terms, covenants or conditions of the Plan shall not be deemed a waiver of such
term, covenant or condition. A waiver of any provision of the Plan must be made in writing, designated as a waiver, and signed
by the party against whom its enforcement is sought. Any waiver or relinquishment of any right or power hereunder at any one or
more times shall not be deemed a waiver or relinquishment of such right or power at any other time or times.

 

		10.8	Tax
                                         Withholding and Payment of Code Section 409A Taxes

 

The
Employer may withhold from any benefits payable under this Plan all federal, state, city, or other taxes as shall be required
pursuant to any law or governmental regulation that is in effect. This Plan shall also permit the acceleration of the time or
schedule of a payment to pay taxes as permitted under final Treasury regulations section 1.409A-3(j) (4) or to pay any taxes that
may become due at any time that the arrangement fails to meet the requirements of Code Section 409A and the regulations and other
guidance promulgate d thereunder. In the latter case, such payments shall not exceed the amount required to be included in income
as the result of the failure to comply with the requirements of Code Section 409A. In no event whatsoever shall the Plan Sponsor
or any adopting Employer be liable for any additional tax, interest or penalty that may be imposed on a Participant under Code
Section 409A or damages or any losses for failing to comply with Code Section 409A or any other provision of applicable tax or
other similar law. Neither the Employer nor any of its affiliates or any of the agents, employees, officers, directors or other
representatives of one or more of the foregoing represents, warrants or guarantees any particular or favorable tax or other result
in connection with this Plan or otherwise. The Participant shall be solely and exclusively responsible for any and all such results.

 

		10.9	Acceleration
                                         of Payments

 

No
acceleration of the time or schedule of any payment may be made, except as specifically permitted herein or in other sections
of this Plan. Payments may be accelerated hereunder by the Employer, in accordance with the provisions of final Treasury regulations
section 1.409A-3(j) (4) and any subsequent guidance issued by the United States Treasury Department. Accordingly, payments may
be accelerated in accordance with requirements and conditions of the Treasury Regulations (or subsequent guidance) in the following
circumstances, among others: (i) as a result of certain domestic relations orders; (ii) in compliance with ethics agreements with
the Federal government; (iii) in compliance with ethics laws or conflicts of interest laws; (iv) in the case of certain distributions
to avoid a non-allocation year under Code Section 409(p); (v) to apply certain offsets in satisfaction of a debt of the Participant
to the Employer; (vi) in satisfaction of certain bona fide disputes between the Participant and the Employer; or (vii) for any
other purpose set forth in the Treasury Regulations and subsequent guidance.

    	21

    	 

    

		10.10	Governing
                                         Law

 

The
Plan shall be construed, administered and governed in all respects under applicable federal law and the laws of the State of
Kansas, without regard to the choice of law or conflict of law rules recognized by such state.
The Board of Directors shall have authority to make any changes in the Plan necessary to conform its terms with the
requirements of applicable federal and state law. The Plan is intended to be construed consistent with the requirements of
Code Section 409A and the Treasury regulations and other guidance issued thereunder. If any provision of the Plan shall be
determined to be inconsistent therewith for any reason, then the Plan shall be construed, to the maximum extent possible, to
give effect to such provision in a manner that is consistent with Code Section 409A, and, if such construction is not
possible, as if such provision had never been included. In the event that any of the provisions of the Plan, or any portion
thereof, are held to be inoperative or invalid by any court of competent jurisdiction, then: (i) insofar as is reasonable,
effect will be given to the intent manifested in the provisions held to be invalid or inoperative, and (ii) the invalidity
and enforceability of the remaining provisions will not be affected thereby.

 

IN
WITNESS WHEREOF, Firstsun Capital Bancorp has caused this Plan to be executed this 1st of January, 2019,
pursuant to authority granted by resolution of the Firstsun Capital Bancorp Board of Directors.

	 	 	 
	 	Firstsun Capital Bancorp.
	 	 
	 	By:  	/s/ Mollie H. Carter
	 	Print Name: Mollie H. Carter
	 	Officer Title: CEO

    	22ex_266615.htm

EXHIBIT 4.1

 

NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

COMMON STOCK PURCHASE WARRANT

 

NOVA LIFESTYLE, INC.

 

	Warrant Shares: _______ 	Initial Exercise Date: January ___, 2022
	 	Issue Date: July __, 2021

                 

THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, _____________ or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after _________ (the “Initial Exercise Date”) and on or prior to 5:00 p.m. (New York City time) on ________1 (the “Termination Date”) but not thereafter, to subscribe for and purchase from Nova Lifestyle, Inc., a Nevada corporation (the “Company”), up to ______ shares (as subject to adjustment hereunder, the “Warrant Shares”) of Common Stock. The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

 

Section 1.         Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase Agreement (the “Purchase Agreement”), dated July __, 2021, among the Company and the purchasers signatory thereto.

 

Section 2.         Exercise.

 

a)    Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company of a duly executed facsimile copy or PDF copy submitted by e-mail (or e-mail attachment) of the Notice of Exercise in the form annexed hereto (the “Notice of Exercise”). Within the

 

 

1Insert the date that is the ______ year anniversary of the Issue Date, provided that, if such date is not a Trading Day, insert the immediately following Trading Day.

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earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period (as defined in Section 2(d)(i) herein) following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date on which the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1) Business Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

b)    Exercise Price. The exercise price per share of Common Stock under this Warrant shall be $_____, subject to adjustment hereunder (the “Exercise Price”).

 

c)    Cashless Exercise. If at the time of exercise hereof there is no effective registration statement registering, or the prospectus contained therein is not available for the resale of the Warrant Shares by the Holder, then this Warrant may also be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

(A) = as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of “regular trading hours” (as defined in Rule 600(b)(68) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the option of the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise or (z) the Bid Price of the Common Stock on the principal Trading Market as reported by Bloomberg L.P. (“Bloomberg”) as of the time of the Holder’s execution of the applicable Notice of Exercise if such Notice of Exercise is executed during “regular

 

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trading hours” on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of “regular trading hours” on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to Section 2(a) hereof after the close of “regular trading hours” on such Trading Day;

 

(B) = the Exercise Price of this Warrant, as adjusted hereunder; and

 

(X) = the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

 

If Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9) of the Securities Act, the Warrant Shares shall take on the characteristics of the Warrants being exercised, and the holding period of the Warrant Shares being issued may be tacked on to the holding period of this Warrant.  The Company agrees not to take any position contrary to this Section 2(c).

 

“Bid Price” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the bid price of the Common Stock for the time in question (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported on The Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

“VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b)  if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the

 

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Common Stock are then reported in The Pink Open Market (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

Notwithstanding anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise pursuant to this Section 2(c).

 

	 	
			d)

				
			Mechanics of Exercise.

			

 

i.    Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted by the Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by the Holder or (B) the Warrant Shares are eligible for resale by the Holder without volume or manner-of-sale limitations pursuant to Rule 144 (assuming cashless exercise of the Warrants), and otherwise by physical delivery of a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is the earliest of (i) two (2) Trading Days after the delivery to the Company of the Notice of Exercise, (ii) one (1) Trading Day after delivery of the aggregate Exercise Price to the Company and (iii) the number of Trading Days comprising the Standard Settlement Period after the delivery to the Company of the Notice of Exercise (such date, the “Warrant Share Delivery Date”). Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than in the case of a cashless exercise) is received within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period following delivery of the Notice of Exercise. If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP of the

 

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Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant Share Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise. The Company agrees to maintain a transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding and exercisable. As used herein, “Standard Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s primary Trading Market with respect to the Common Stock as in effect on the date of delivery of the Notice of Exercise.

 

ii.    Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

 

iii.    Rescission Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise.

 

iv.    Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other rights available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares in accordance with the provisions of Section 2(d)(i) above pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied

 

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with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

 

v.    No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share.

 

vi.    Charges, Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that, in the event that Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery of the Warrant Shares.

 

vii.    Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.

 

e)         Holder’s Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after

 

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giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties.  Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of a Holder, the Company shall within one Trading Day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates or Attribution

 

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Parties since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be [9.99/4.99%]2 of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any increase in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

 

Section 3.         Certain Adjustments.

 

a)    Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re‐classification.

 

b)    Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to

 

 

2As elected by the Holder

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the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, that, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

c)    Pro Rata Distributions. During such time as this Warrant is outstanding, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided, however, that, to the extent that the Holder's right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

 

d)    Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company (or any Subsidiary), directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange

 

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their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off, merger or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein.

 

e)    Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

f)    Notice to Holder.

 

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i.    Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment.

 

ii.    Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company (or any of its Subsidiaries) is a party, any sale or transfer of all or substantially all of its assets, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered by facsimile or email to the Holder at its last facsimile number or email address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided in this Warrant constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

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g)    Voluntary Adjustment By Company. Subject to the rules and regulations of the Trading Market, the Company may at any time during the term of this Warrant, subject to the prior written consent of the Holder, reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by the board of directors of the Company.

 

Section 4.         Transfer of Warrant.

 

a)    Transferability. Subject to compliance with any applicable securities laws and the conditions set forth in Section 4(d) hereof and to the provisions of Section 4.1 of the Purchase Agreement, this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within three (3) Trading Days of the date on which the Holder delivers an assignment form to the Company assigning this Warrant in full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.

 

b)    New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the original Issue Date and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

c)    Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

 

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d)    Transfer Restrictions. If, at the time of the surrender of this Warrant in connection with any transfer of this Warrant, the transfer of this Warrant shall not be either (i) registered pursuant to an effective registration statement under the Securities Act and under applicable state securities or blue sky laws or (ii) eligible for resale without volume or manner-of-sale restrictions or current public information requirements pursuant to Rule 144, the Company may require, as a condition of allowing such transfer, that the Holder or transferee of this Warrant, as the case may be, comply with the provisions of Section 5.7 of the Purchase Agreement.

 

e)    Representation by the Holder. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any exercise hereof, will acquire the Warrant Shares issuable upon such exercise, for its own account and not with a view to or for distributing or reselling such Warrant Shares or any part thereof in violation of the Securities Act or any applicable state securities law, except pursuant to sales registered or exempted under the Securities Act.

 

Section 5.         Miscellaneous.

 

a)    No Rights as Stockholder Until Exercise; No Settlement in Cash. This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in Section 3. Without limiting any rights of a Holder to receive Warrant Shares on a “cashless exercise” pursuant to Section 2(c) or to receive cash payments pursuant to Section 2(d)(i) and Section 2(d)(iv) herein, in no event shall the Company be required to net cash settle an exercise of this Warrant.

 

b)    Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

 

c)    Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day.

 

d)    Authorized Shares.

 

The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant. The Company

 

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further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of issuing the necessary Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be listed. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).

 

Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

 

Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

 

e)    Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions of the Purchase Agreement.

 

f)    Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities laws.

 

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g)    Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other provision of this Warrant or the Purchase Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

 

h)    Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance with the notice provisions of the Purchase Agreement.

 

i)    Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

 

j)    Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

 

k)    Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.

 

l)    Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

 

m)    Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

 

n)    Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

 

********************

 

 

(Signature Page Follows)

 

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IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

 

	
			NOVA LIFESTYLE, INC.

			
	
			 

			 

			By:__________________________________________

			     Name:

			     Title:

			

 

 

 

16

 

 

NOTICE OF EXERCISE

 

TO:         NOVA LIFESTYLE, INC.

 

(1)    The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

 

(2)    Payment shall take the form of (check applicable box):

 

[ ] in lawful money of the United States; or

 

[ ] if permitted the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c).

 

(3)    Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

_______________________________

 

 

The Warrant Shares shall be delivered to the following DWAC Account Number:

 

_______________________________

 

_______________________________

 

_______________________________

 

(4) Accredited Investor. The undersigned is an “accredited investor” as defined in Regulation D promulgated under the Securities Act of 1933, as amended.

 

[SIGNATURE OF HOLDER]

 

Name of Investing Entity: ________________________________________________________________________

Signature of Authorized Signatory of Investing Entity: _________________________________________________

Name of Authorized Signatory: ___________________________________________________________________

Title of Authorized Signatory: ____________________________________________________________________

Date: ________________________________________________________________________________________

 

 

 

 

 

 

EXHIBIT B

 

 

ASSIGNMENT FORM

(To assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares.)

 

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	
			Name:

				______________________________________
	 	
			(Please Print)

			
	 	 
	
			Address:

				______________________________________
	
			 

			 

			Phone Number:

			Email Address:

				
			   (Please Print)

			 

			______________________________________

			______________________________________

			
	 	 
	
			Dated: _______________ __, ______

				 
	
			Holder’s Signature:                                                   

				 
	
			Holder’s Address:

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