Document:

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(“Agreement”) is made as of June 12, 2013 (the “Effective Date”) between Response Genetics, Inc., a Delaware
Corporation (the “Company”) and Kevin R. Harris (“Executive”).

 

WHEREAS, Executive has served as Interim
Chief Financial Officer of the Company since August 20, 2012; and

 

WHEREAS, Executive and the Company desire
to enter into this Agreement.

 

In consideration of
the promises and mutual covenants set forth below, the parties agree as follows:

 

1.Duties.

 

1.1Executive shall
serve as Vice President and Chief Financial Officer of the Company and shall have all such authority, duties and responsibilities
as are consistent with such position and shall perform such other duties and responsibilities on behalf of the Company as reasonably
may be assigned to Executive by his immediate supervisor, the Chief Executive Officer and/or the Company’s Board of Directors
(“Board”).

 

1.2It is understood
that Executive shall devote substantially all of his time to his duties and responsibilities as Vice President and Chief Financial
Officer of the Company. Executive agrees to use his best efforts and devote his time, attention, skill and efforts to rendering
his services to further the best interests and welfare of the Company.

 

1.3The parties acknowledge
that the Company’s main offices, today, are located in Los Angeles, California, which is Executive's principal place of employment.
Executive acknowledges that he may be required to travel in connection with his employment.

 

1.4Extracurricular
Activities. It is recognized that participation by Executive in various professional, governmental, civic, charitable, educational
and cultural activities, other than those conducted by the Company, benefits the Company's public image and Executive shall be
free to engage in such reasonable activities, provided that such activities do not conflict or otherwise compete with activities
conducted by the Company. Any such activities of significance shall be reported by Executive to his immediate supervisor, the Company’s
Chief Executive Officer and the Board.

 

2.Term.

 

2.1The term of Executive’s
employment hereunder shall commence on the Effective Date and shall end on June 11, 2014 (the “Initial Term”), unless
earlier terminated as provided in Section 4 hereof; provided, however, that, unless earlier terminated as provided in Section 4
hereof, the Initial Term shall automatically be extended for one additional year (the “Renewal Term”), and on each
subsequent anniversary, the Renewal Term shall be extended for one additional year (the period consisting of the Initial Term and
the Renewal Term (including extensions thereof) being referred to as the “Employment Period”), unless at least sixty
(60) days prior to the applicable anniversary date, the Company or Executive shall have given written notice to the other not to
extend the Employment Period. Nothing in this Section 2 shall limit the right of the Company or Executive to terminate Executive's
employment hereunder on the terms and conditions set forth in Section 4 hereof.

 

    	 

    	 

    

3. Compensation and Benefits.

 

3.1 Base Salary.
During the Employment Period, Executive shall be paid an annual base salary of $264,000 (“Base Salary"). The Base Salary
shall be payable in accordance with the Company’s normal payroll practices.

 

3.2 Bonus.
With respect to each fiscal year or portion of a fiscal year of the Company ending during the Term, Executive shall be eligible
to receive an annual incentive bonus (“Annual Bonus”) as determined by the Chief Executive Officer and approved by
the Compensation Committee of up to 35% of Base Salary (the “Target Annual Bonus”), with the actual Annual Bonus payable
being based upon the Company’s achievement of performance goals, as determined by the Chief Executive Officer and approved
by the Board, and Executive’s achievement of individual performance objectives for such fiscal year, as reasonably determined
by the Company and communicated to Executive. Any earned Annual Bonus shall be paid to Executive pursuant to the terms of the applicable
incentive plan provided that Executive is employed with the Company at the time such bonus is paid. Notwithstanding Section 4.6
of this Agreement, Executive’s 2013 Annual Bonus shall not be pro-rated, and shall be determined on the basis that Executive
has been employed with the Company since January 1, 2013 provided that Executive is employed with the Company as of December 31,
2013 and is also employed with the Company at the time such bonus is paid.

 

3.3Benefits.
During the Employment Period, Executive shall be eligible to participate in employee benefit plans that are made available generally
to the Company’s employees including paying any deductibles or premiums on such benefit plans that other employees pay for
such plans.

 

3.4Equity Awards.
Upon joining the Company, Executive shall receive

100,000
shares of Stock options vesting monthly over 48 months and subject to the terms and conditions of such plans and any award agreement
between the Company and Executive evidencing such awards.

 

Executive shall be eligible to participate
in the equity-based incentive plans of the Company and may receive awards thereunder, as determined by the Chief Executive Officer
and approved by the Compensation Committee from time to time and subject to the terms and conditions of such plans and any award
agreement between the Company and Executive evidencing such awards.

 

 

    	 

    	 

    

3.5Business Expenses.
The Company shall pay or reimburse Executive for ordinary and necessary reasonable expenses which Executive incurs during the Employment
Period in performing his duties under this Agreement in accordance with the Company's expense reimbursement policy.

 

3.6 Paid Time
Off. During the Employment Period, Executive shall accrue paid time off days per year, which shall accrue in accordance with
the current policies made available to employees of the Company. Such paid time off shall be taken at such times and intervals
as shall be requested by Executive, subject to the business needs of the Company.

 

4.Termination of Employment.

 

4.1General.
Executive’s employment hereunder shall terminate during the Employment Period upon any of the following: (a) Executive's
death; (b) a termination by the Company for Disability, defined for purposes of this Agreement as Executive's inability to perform
the essential functions of his position, with or without reasonable accommodation, for four (4) consecutive months; (c) termination
by the Company with or without Cause; and (d) a non-renewal of the Employment Period in accordance with Section 2.

 

4.2Notice of Termination.
Any purported termination of Executive’s employment (other than termination due to Executive’s death) shall be communicated
by written Notice of Termination delivered to the other party hereto in accordance with Section 11 hereof.

 

4.3Date of Termination.
For purposes of this Agreement, “Date of Termination” shall mean the following: (a) if Executive's employment is terminated
by Executive's death, the date of Executive's death; (b) if Executive's employment is terminated by the Company for Disability,
thirty (30) days after the Notice of Termination is given; (c) if Executive’s employment is terminated with Cause, the date
specified in the Notice of Termination (but no earlier than the date such Notice of Termination is given); and (d) if Executive’s
employment is terminated for any other reason, the date specified in the Notice of Termination (which date shall not be earlier
than the date such Notice of Termination is given)).

 

4.4Compensation
Upon Termination During the Employment Period. For purposes of this Agreement, “Accrued Obligations” shall mean:
(a) Executive’s Base Salary earned but not paid prior to the Date of Termination, which shall be paid on the Date of Termination;
(b) all benefits to which Executive is entitled under the terms of the Company's benefit plans, programs, or arrangements in which
he participates, other than severance plans, programs, or arrangements, as in effect immediately prior to the Date of Termination,
payable in accordance with the terms of such plans, programs, or arrangements; (c) any paid time off earned but not used through
the Date of Termination, which shall be paid on the Date of Termination; and (d) any business expenses and travel expenses that
are reimbursable under this Agreement or otherwise that have been incurred by Executive but unreimbursed by the Date of Termination,
subject to the submission of any required substantiation and documentation as specified pursuant to the Agreement. For the avoidance
of doubt, Accrued Obligations shall not include any unpaid Annual Bonus or any other awards under a retention and/or performance
bonus or incentive plans.

 

    	 

    	 

    

4.5Termination
by the Company with Cause or due to Non-Renewal of Employment Period or by Reason of Death or Disability. If Executive’s
employment hereunder is terminated during the Employment Period (a) by the Company with Cause, (b) by reason of Disability, (c)
by reason of Executive’s death, or (d) as a result of the non-renewal of the Employment Period, then Executive shall be entitled
to receive only the Accrued Obligations. For purposes of this Agreement only, “Cause” shall mean (a) engaging in dishonesty
or misconduct that is injurious to the Company; (b) Executive’s conviction of, or pleas of no lo contendere to, any felony
or  crime involving moral turpitude, material fraud or embezzlement
of the Company’s property or a charge or indictment of any other felony; or (c) Executive's breach of any material terms
of this Agreement.

 

4.6Termination
by Company without Cause. If Executive’s employment hereunder is terminated during the Employment Period by the Company
without Cause, Executive will receive the Accrued Obligations and within ten (10) days following Executive's execution and delivery
of the Release of Claims (defined below), Executive will be entitled to receive a severance benefit of four (4) months of Executive’s
then-current Base Salary payable either in a lump sum or in installments, as determined by the Company in its sole discretion;
provided, however, that if Executive is terminated by the Company without Cause within the twenty four (24) month period following
a Change of Control, Executive will receive the Accrued Obligations and within ten (10) days following Executive's execution and
delivery of the Release of Claims (defined below), Executive will be entitled to receive a severance benefit of nine (9) months
of Executive’s then-current Base Salary, plus one times Executive's prorated Target Annual Bonus as of such termination date,
payable either in a lump sum or in installments, as determined by the Company in its sole discretion.

 

4.7No Further
Benefits. Except as otherwise provided in this Agreement, Executive acknowledges that the amounts payable and the benefits
provided pursuant to Section 4 hereof are the exclusive items in the nature of salary, bonus, benefits, and perquisites to which
Executive is entitled in connection with the termination of his employment for any reason.

 

4.8Release.
Notwithstanding any provision herein to the contrary, the payment of any amount or provision of any benefit pursuant to Section
4.6 other than the Accrued Obligations (collectively, the "Severance Benefits'') shall be conditioned upon Executive’s
execution, delivery to the Company, and non-revocation of a general release of claims against the Company, as well as its current
and former employees, agents, successors and assigns, as well as any company controlled by, controlling, or under common control
with the Company (“Affiliated Company”), prepared by the Company's counsel (“Release of Claims”) which
may include any terms or conditions that the Company may reasonably wish to include to protect the Company and any Affiliated Company
including non-disparagement and confidentiality provisions within sixty (60) days following the date of Executive's Date of Termination
.. If Executive fails to execute the Release of Claims in such a timely manner so as to permit any revocation period to expire prior
to the end of such sixty (60) day period, or timely revokes his acceptance of such release following its execution, Executive shall
not be entitled to any of the Severance Benefits. Further, to the extent that any of the Severance Benefits constitutes a Nonqualified
Deferred Compensation Plan, as defined below, any payment of any amount or provision of any benefit otherwise scheduled to occur
prior to the sixtieth (60th) day following the date of Executive’s termination of employment hereunder, but for the condition
on executing the Release of Claims as set forth herein, shall not be made until the sixtieth (60th) day, after 
which any remaining Severance Benefits shall thereafter be provided to Executive according to the applicable schedule set forth
herein.

 

    	 

    	 

    

5.Change of
Control.

 

5.1Upon a Change
of Control during the Employment Period, Executive shall immediately become fully vested, and have a non-forfeitable right to any
previously granted equity-based compensation awards, as if all specified performance objectives and other conditions had been fully
attained unless such equity-based compensation award has otherwise expired or been terminated pursuant to its terms or the terms
of the applicable Company plan pursuant to which it was issued including the Company’s 2006 Employee, Director and Consultant
Stock Plan (the “Plan”). If Executive is terminated by the Company without Cause or if Executive resigns from employment
as a result of a material reduction of Executive’s compensation (including benefits) within the twenty four (24) month period
following a Change of Control at which Change of Control occurrence Executive is an employee of the Company, Executive shall immediately
become fully vested, and have a non-forfeitable right to, any previously granted equity-based compensation awards that are not
yet vested, as if all specified performance objectives and other conditions had been fully attained.

 

5.2For purposes of
this Agreement, “'Change of Control” shall mean:

 

5.2.1Ownership. Any “Person”
(as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becomes the “Beneficial
Owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing 50% or
more of the total voting power represented by the Company’s then outstanding voting securities (excluding for this purpose
the Company or its Affiliates (as such term is defined in the Plan) or any employee benefit plan of the Company) pursuant to a
transaction or a series of related transactions which the Board does not approve; or;

 

5.2.2Merger/Sale
of Assets. A merger or consolidation of the Company whether or not approved by the Board, other than a merger or consolidation
which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into voting securities of the surviving entity or the parent of such corporation)
at least 50% of the total voting power represented by the voting securities of the Company or such surviving entity or parent
of such corporation outstanding immediately after such merger or consolidation, or the stockholders of the Company approve an agreement
for the sale or disposition by the Company of all or substantially all of the Company’s assets;

 

    	 

    	 

    

5.2.3 Change in
Board Composition. A change in the composition of the Board of Directors, as a result of which fewer than a majority of the directors
are Incumbent Directors. “Incumbent Directors” shall mean directors who either (A) are directors of the Company
as of the date of this Agreement, or (B) are elected, or nominated for election, to the Board of Directors with the affirmative
votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but shall not include an individual
whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of directors
to the Company).

 

 

6. Section 280G.
Notwithstanding any provision of this Agreement to the contrary, if any payment or benefit Executive would receive pursuant to
this Agreement or otherwise (collectively, the “Payments”) would constitute a “parachute payment” within
the meaning of Section 280G of the Internal Revenue Code (the “Code”), and, but for this sentence, would be subject
to the excise tax imposed by Section 4999 of the Code or any similar or successor provision (the “Excise Tax”), then
the aggregate amount of the Payments shall be reduced, but only to the extent necessary so that no portion of the Payments (after
reduction) are subject to the Excise Tax. The professional firm engaged by the Company for general tax purposes as of the day prior
to the date of the event that might reasonably be anticipated to result in Payments that would otherwise be subject to the Excise
Tax will perform the foregoing calculations. If the tax firm so engaged by the Company is serving as accountant or auditor for
the acquiring company, the Company will appoint a nationally recognized tax firm to make the determinations required by this Section.
The Company will bear all expenses with respect to the determinations by such firm required to be made by this Section. The Company
and Executive shall furnish such tax firm such information and documents as the tax firm may reasonably request in order to make
its required determination. The tax firm will provide its calculations, together with detailed supporting documentation, to the
Company and Executive as soon as practicable following its engagement. Any good faith determinations of the tax firm made hereunder
will be final.

 

7.Covenants.

 

7.1Confidential
Information. During the Employment Period and the five (5) year period immediately following the Date of Termination, Executive
shall hold all Confidential Information in strictest confidence and shall not use or disclose such Confidential Information, or
cause it to be used or disclosed, other than as required in performance of Executive’s duties on behalf of the Company or
unless first specifically authorized in writing by Company to Executive. In the event that Executive is required by law to disclose
any Confidential Information, Executive agrees to give the Company prompt advance written notice thereof and to provide the Company
with reasonable assistance, at the Company’s cost and expense, in obtaining an order to protect the Confidential Information
from public disclosure. For purposes of this Agreement, “Confidential Information” shall mean any information about
the Company and all of its Affiliated Companies, including methods of operation, customer lists, products, prices, fees, costs,
research and development, inventions, trade secrets, know-how, software, marketing methods, plans, personnel, suppliers, competitors,
markets, and other specialized information or proprietary matters. “Confidential Information” does not include, and
there shall be no obligation hereunder with respect to, information that (i) is generally available to the public or (ii) becomes
generally available to the public other than as a result of a disclosure not otherwise permissible hereunder.

 

    	 

    	 

    

7.2Noncompetition/Nonsolicitation.
Executive recognizes the benefits derived by him from his employment or engagement by the Company and that the continuation of
such benefits is dependent upon the continued success of the Company which, in turn, is dependent in part upon the preservation
of the Company's relationships with its clients. Executive believes it to be in his own best interests and in the best interests
of the Company, its stockholders, and its other employees to preserve the Company’s relationships with its clients. In consideration
of the foregoing and of the mutual promises and covenants contained herein, Executive hereby agrees as follows:

 

7.2.1During
the Employment Period, Executive shall use his best efforts to promote the interests of the Company and shall not engage, directly
or indirectly, in any business competitive with the business of the Company, or its subsidiaries, if any.

 

7.2.2During
the Employment Period, Executive shall not, directly or indirectly, on his own behalf or on behalf of any other person or entity,
(a) solicit, accept any business from, or perform any services for any account which is or was a client of the Company; (b) cause
or induce or attempt to cause or induce any client to withdraw any business from the Company; or (c) solicit or accept from any
prospective client of the Company any business or service which was solicited on behalf of the Company by Executive or otherwise
misappropriate any business opportunity of the Company for his own benefit. Executive agrees further not to engage during the one
(1) year period following any termination of employment in any such activities prohibited by this paragraph to the extent that
any activity would involve the use of Confidential Information or trade secrets of the Company.

 

7.2.3During
the Employment Period and for the one (1) year period following any termination thereof, Executive shall not, directly or indirectly,
on his own behalf or on behalf of any other person or entity, cause or induce or attempt to cause or induce any 
employee of the Company to terminate his employment with the Company, or advise or recommend to any other person that he employ
or solicit for employment any person who is, or was within the six (6) month period prior to the Date of Termination, an employee
or other service provider of the Company, or its subsidiaries, if any.

 

7.2.4Notwithstanding
any provision contained herein to the contrary, it is understood that Executive shall have the right and privilege at any time
to invest in any competitive enterprise or business whose capital stock is listed on a national securities exchange in the United
States or is traded on the Nasdaq stock market, provided the total direct and indirect investment of Executive, Executive’s
spouse and dependents, represents not more than two percent (2%) of the total capital stock of such enterprise. Nothing contained
herein shall prohibit or restrict Executive from investing in any non-competitive enterprise or business.

 

    	 

    	 

    

7.3Except to the
extent materially conflicting with this Agreement, Executive agrees that he shall abide by, and shall conduct business in accordance
with and subject to, all applicable policies and procedures of the Company, including all employee and ethical policies of the
Company, and all client conflict-of-interest policies applicable to the Company or its subsidiaries generally, as such policies
may exist from time to time. Executive also understands and agrees that the business and affairs of the Company shall be conducted
in accordance with the Company’s Corporate Policies and strict legal and ethical standards including, without limitation,
compliance with all commercial, tax, labor, and other laws (including the U.S. Foreign Corrupt Practices Act).

 

8.Indemnification.
The Company shall indemnify Executive and hold Executive harmless from any and all claims arising from or related to Executive’s
performance of his duties hereunder to the fullest extent permitted by applicable law and/or the Company’s Directors and
Officers Liability Insurance.

 

9.Tax Withholding;
Section 409A. Any payments or benefits provided for hereunder shall be paid net of any applicable withholding required under
federal, state, or local law and any additional withholding to which Executive has agreed. Notwithstanding any other provision
of this Agreement to the contrary, the following shall apply:

 

9.1In the event that
Executive is a “specified employee” within the meaning of Section 409A of the Code (as determined in accordance with
the methodology established by the Company as in effect on the Date of Termination), any amount or that constitutes a Nonqualified
Deferred Compensation Plan (within the meaning of Section 409A of the Code and Treasury Regulation Section 1.409A-l(a)) that would
otherwise be payable or provided during the six-month period immediately following the Date of Termination shall instead be paid
or provided on the first business day after the date that is six months following Executive’s “separation from service”
within the meaning of Section 409A of the Code.

 

9.2To
the extent required by Code Section 409A, any payment or benefits otherwise due to Executive upon his termination of employment
with the Company that constitutes a Nonqualified Deferred Compensation Plan that shall not be made until and unless such termination
from employment constitutes a “separation from service” as such term is defined under Code Section 409A. This provision
shall have no effect on payments or benefits  otherwise due or payable
to Executive or on his behalf, which are not on account of his termination from employment with the Company or as a result of his
death.

 

10.Notices.
For the purpose of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given when delivered by hand, or email or fax, followed by a confirmatory mailed copy of the
same by first class mail, postage prepaid, or sent by reputable international overnight courier, addressed to the address set forth
below for each party, or to such other address as either party may have furnished to the other in writing in accordance herewith,
except that notice of change of address shall be effective only upon actual receipt:

 

    	 

    	 

    

To the Company:

 

Response Genetics, Inc.

1640 Marengo St., 6th Floor

Los Angeles, California 90033

Attention: General Counsel

 

To Executive:

 

Kevin R.
Harris

P.O. Box
492105

Los Angeles,
California 90049

 

11.Entire Agreement;
Modification. Except as specifically provided herein, this Agreement supersedes any other agreements or representations, oral
or otherwise, express or implied, with respect to the subject matter hereof which have been made by any party; provided, however,
that any equity award agreements or proprietary information or confidentiality agreements previously signed by Executive remain
in full force and effect. This Agreement may only be modified in a writing signed by Executive and a duly authorized officer of
the Company.

 

12.Assignment;
Successors. This Agreement will bind and inure to the benefit of and be enforceable by the Company and its respective successors
and assigns and the Executive and the Executive’s heirs, executors, administrators, and successors; provided, however, that
the services provided by the Executive under this Agreement are of a personal nature, and rights and obligations of the Executive
under this Agreement will not be assignable or delegable (except by will or the laws of descent and distribution); provided further,
however, the Company may assign this Agreement to, and all rights hereunder will inure to the benefit of, any subsidiary or affiliate
of the Company or any person, firm or corporation resulting from the reorganization of the Company or succeeding to the business
or assets of the Company by purchase, merger, consolidation or otherwise. This Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors, assigns, heirs and legal representatives.

 

13.Applicable
Law. The validity, interpretation and performance of this Agreement shall be governed by the laws of the State of California,
without reference to its conflict-of-law rules.

 

14.Waiver.
No waiver by either of the parties hereto of their rights hereunder shall be deemed to constitute a waiver with respect to any
subsequent occurrences or transactions hereunder unless such waiver specifically and expressly states that it is to be construed
as a continuing waiver.

 

15.Headings.
Captions and Section headings in this Agreement are provided merely for convenience and shall not affect the interpretation of
any of the provisions herein.

 

    	 

    	 

    

16.Survival.
The obligations of the Company and Executive under this Agreement which by their nature may require either partial or total performance
after the termination of the Employment Period shall survive such termination.

 

17.Severability.
In the event any provision of this agreement shall be found unenforceable by a court of competent jurisdiction, the provision shall
be deemed modified to the extent necessary to allow enforceability of the provision as so limited. If a deemed modification is
not satisfactory in the judgment of such court, the unenforceable provision shall be deemed deleted, and the validity and enforceability
of the remaining provisions shall not be affected thereby.

 

18.Counterparts.
This Agreement may be executed in several counterparts (including .PDF and facsimile copies), each of which shall be deemed to
be an original but all of which together will constitute one and the same instrument.

 

 

    	 

    	 

    

  

 

THE
PARTIES TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND EVERY PROVISION CONTAINED HEREIN. EACH
PARTY HAS HAD THE OPPORTUNITY TO SEEK AND CONSULT WITH ITS OWN COUNSEL REGARDING THIS AGREEMENT PRIOR TO EXECUTION THIS AGREEMENT.
WHEREFORE, THE PARTIES HAVE EXECUTED THIS AGREEMENT AS OF THE DATE FIRST ABOVE WRITTEN.

 

	 	RESPONSE GENETICS, INC.
	 	 	 
	 	 	 
	 	By:	/s/Thomas A. Bologna
	 	 	Name:  Thomas A. Bologna
	 	 	Title:  Chairman & Chief Executive Officer
	 	 	 
	 	 	 
	 	By:	/s/Kevin R. Harris
	 	 	Kevin R. HarrisRBC Bearings
Inc.

(the “Company”)

 

Stock Ownership
Guidelines

Effective June
14, 2013 (the “Effective Date”) 

 

 

	I.	Purpose
	 	
        Effective June 14, 2013 , the Company’s
        Board of Directors approves these stock ownership guidelines both for Non-Employee Independent
        Directors and for the Company’s Executive Officers to align their interests with the interests of stockholders and
        promote the Company’s commitment to sound corporate governance. The Board of Directors
        believes that the Non-Employee Independent Directors  and the Company’s Executive
        Officers should have a significant equity position in the Company and that these guidelines will serve
        to further the Board of Director’s interest in encouraging a longer-term focus in managing the Company.

         

	II.	Participation
	 	These Stock Ownership Guidelines apply to all of the Company’s Executive Officers that are subject to the Securities Exchange Commission Section 16 reporting obligations and all Non-Employee Independent Directors (each a “Participant”).
	 	 	 
	III.	Determination of Guidelines
	 	
        Stock ownership guidelines are determined as a multiple of an
        Executive Officers' base salary or a Non-Employee Independent Director’s annual retainer in effect on the Effective Date
        and are then converted to a fixed number of shares. The individual guidelines established for each Participant are as follows:

         

	Chairman and Chief Executive Officer - 6x annual base salary;
	All Other Executive Officers - 3x annual base salary; and
	Non-Employee Independent Directors - 3x annual retainer fee.

 

        The Compensation Committee of the Company’s Board of Directors
        may, from time to time, temporarily suspend, reevaluate and revise Participants’ guidelines to give effect to changes in
        the Company’s common stock or other factors it deems relevant.

         

	IV.	Counting Shares Owned
	 	
        Stock that counts towards satisfaction of the Company’s
        Stock Ownership Guidelines includes:

        

        •  Shares owned outright by the Participant or beneficially
        owned in a trust, by a spouse and/or minor children residing in the same household;

        

        •  Restricted stock issued
        and held as part of an Executive Officers' or a Non-Employee Independent Director’s
        long term compensation, whether or not vested; and

        

        •  Shares acquired upon stock option exercises or vesting
        of restricted stock that the Participant continues to hold.

        

 

    	 

    	 

    

 

	V.	Compliance with the Guidelines
	 	
        In determining whether
        the guidelines have been achieved at any particular point, the price of the Common Stock will be the higher of (i) the then current
        market value determined by the closing price of the Common Stock on the date of the determination; or (ii) the closing price on
        the Effective Date, which was $51.08.

         

        Participants are required to achieve their Stock Ownership Guideline
        within five years of becoming subject to the Guidelines. If a Participant’s Stock Ownership Guideline increases because of
        a change in title, a five-year period to achieve the incremental guideline begins in January following the year of the title change.
        Once achieved, ownership of the guideline amount must be maintained for as long as the individual is subject to these Stock Ownership
        Guidelines.

         

        If a covered Executive Officers' or Non-Employee Independent
        Directors’  Stock Ownership Guideline amount increases because of a change in title or
        increase in base salary or retainer fee, a three (3) year period to achieve share ownership meeting any incremental increase in
        the applicable Stock Ownership Guideline amount begins with the date of the title change or base salary or retainer fee increase.

         

        The Compensation Committee will review each Participant’s
        compliance (or progress towards compliance) with these Stock Ownership Guidelines annually. In its sole discretion, the Compensation
        Committee may impose such conditions, restrictions or limitations on any Participant as it determines to be necessary or appropriate
        in order to achieve the purposes of these Stock Ownership Guidelines. For example, the Compensation Committee may mandate that
        a Participant retain (and not transfer) all or a portion of any shares delivered to the Participant through the Company’s
        compensation plans or otherwise restrict the Participant’s transfer of previously owned shares.

         

        There may be instances in which the Stock Ownership Guidelines
        would place a severe hardship on the Participant or prevent the Participant from complying with a court order, such as a divorce
        settlement. In these instances, the Participant must submit a request in writing to the Company’s General Counsel that summarizes
        the circumstances and describes the extent to which an exemption is being requested. The Compensation Committee will make the final
        decision as to whether an exemption will be granted. If such a request is granted in whole or part, the Company’s General
        Counsel will work with the Participant to develop an alternative stock ownership plan that reflects the Compensation Committee’s
        determination.

         

	VI.	Administration
	 	These Stock Ownership Guidelines are interpreted by the Compensation Committee and administered by the Company’s General Counsel

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