Document:

Exhibit 10.29

 

AMENDED AND RESTATED EXECUTIVE EMPLOYMENT
AGREEMENT

 

THIS AMENDED AND RESTATED
EMPLOYMENT AGREEMENT (the “Agreement”) is made as of the 30th day of September, 2014, between Howard Bank (the “Bank”
or “Employer”), a Maryland-chartered trust Company, and Robert A. Altieri, a resident of the State of Maryland (the
“Executive”).

 

RECITALS:

 

WHEREAS, The Bank and
the Executive entered into an Employment Agreement with a effective date of April 30, 2013, and both parties desire to amend such
agreement as provided herein.

 

In consideration of
the above premises and the mutual agreements hereinafter set forth, the parties hereby agree as follows:

 

1.       
   DEFINITIONS. Whenever used in this Agreement, the following terms and their variant forms will have
the meaning set forth below:

 

1.1          “Agreement”
means this Agreement and any exhibits incorporated herein together with any amendments hereto made in the manner described in this
Agreement.         

 

1.2          “Affiliate”
means any business entity which controls the Employer, is controlled by or is under common control with the Employer. Unless the
context requires otherwise, the term “Employer” used in this Agreement shall include all Affiliates.

 

1.3          “Area”
means the geographic area within a radius of 20 miles of any office or facility maintained by the Employer from time to time. It
is the express intent of the parties that the Area as defined herein is the area where the Executive performs or performed services
on behalf of the Employer under this Agreement as of, or within a reasonable time prior to, the termination of the Executive's
employment hereunder.

 

1.4          “Board”
means the board of directors of the Bank.

 

1.5          “Business
of the Employer” means the business conducted by the Employer.

 

1.6          “Cause”
means any of the following events or conduct preceding a termination of employment initiated by the Employer:

 

(a)          any
act on the part of the Executive that constitutes, in the reasonable judgment of the Board after consultation with legal counsel,
fraud or dishonesty toward the Employer, toward any employee, officer or director of the Employer, or toward any person doing business
with the Employer;

 

(b)          the
conviction of the Executive of any felony or any other crime involving moral turpitude;

 

     

     

    

 

(c)          the
Executive’s entering into any transaction or contractual relationship (other than this Agreement) with, or diversion of business
opportunity from, the Employer (other than on behalf of the Employer or with the prior written consent of the Board); provided,
however, such conduct will not constitute Cause unless the Board delivers to the Executive written notice setting forth (1) the
conduct deemed to qualify as Cause, (2) reasonable remedial action that might remedy such objection, and (3) a reasonable
time (not less than thirty (30) days) within which the Executive may take such remedial action, and the Executive has not taken
the specified remedial action with the specified reasonable time;

 

(d)          the
Executive breaches any of the covenants contained in Sections 5, 6, 7 or 8 hereof;

 

(e)          the
Executive fails to discharge his duties and obligations contained in this Agreement under; and

 

(f)          conduct
by the Executive that results in removal of Executive as an officer or employee of the Employer pursuant to a written order by
any regulatory agency with authority or jurisdiction over the Employer.

 

1.7          “Change
in Control” means the first to occur of any one of the following events:

 

(a)          the
acquisition by any person, persons acting in concert or by an entity of the then outstanding voting securities of either the Bank
or the Company, if, as the result of the transaction, the acquiring person, persons or entity owns securities representing more
than fifty percent (50%) of the total voting power of the Bank or the Company, as the case may be;

 

(b)          within
any twelve-month period (beginning on or after the Effective Date) the persons who were directors of either the Bank or the Company
immediately before the beginning of such twelve-month period (the “Incumbent Directors”) cease to constitute at least
a majority of such board of directors; provided that any director who was not a director as of the Effective Date will be deemed
to be an Incumbent Director if that director was elected to such board of directors by, or on the recommendation of or with the
approval of, at least two-thirds of the directors who then qualified as Incumbent Directors;

 

(c)          the
approval by the stockholders of either the Bank or the Company of a reorganization, merger or consolidation, with respect to which
those persons who were the stockholders of either the Bank or the Company, as the case may be, immediately prior to such reorganization,
merger or consolidation do not, immediately thereafter, own more than fifty percent (50%) of the combined voting power entitled
to vote in the election of directors of the reorganized, merged or consolidated entities; or

 

(d)          the
sale, transfer or assignment of all or substantially all of the assets of the Company or the Bank to any third party.

 

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1.8          “Code”
means the Internal Revenue Code of 1986, as amended.

 

1.9          “Company”
means any entity that, on or after the Effective Date, controls the Bank.

 

1.10        “Company
Information” means Confidential Information and Trade Secrets.

 

1.11        “Confidential
Information” means data and information relating to the business of the Employer (which does not rise to the status of
a Trade Secret) which is or has been disclosed to the Executive or of which the Executive became aware as a consequence of or through
the Executive’s relationship to the Employer and which has value to the Employer and is not generally known to its competitors.
Confidential Information does not include any data or information that has been voluntarily disclosed to the public by the Employer
(except where such public disclosure has been made by the Executive without authorization) or that has been independently developed
and disclosed by others, or that otherwise enters the public domain through lawful means.

 

1.12        “Effective
Date” means April 30, 2013.

 

1.13        “Good
Reason” means the existence of any of the following conditions preceding a termination of employment initiated by the
Executive:

 

(a)          a
material diminution in the powers, responsibilities or duties of the Executive hereunder or a material change as to whom Executive
reports which in the case of Executive is the Chief Executive Officer of the Bank;

 

(b)          the
failure to elect the Executive, or the removal of the Executive, as an Executive Vice President of the Bank and of the Company;

 

(c)          a
material breach of the terms of this Agreement by the Employer;

 

(d)          a
change in the location of the principal office of Executive more than twenty (20) miles from its existing location, which the Employer
and Executive hereby agree to be a material change in the location at which the Executive provides services under this Agreement;
or

 

(e)          a
material reduction in the Executive’s Base Salary, as defined in Section 4.1(a) hereof;

 

provided, however, that no termination
of employment which is triggered by any conduct or event described in this Section 1.13 shall constitute a termination of employment
for Good Reason unless (i) the termination occurs within one (1) year following the initial existence of one or more of the conditions
set forth above, and (ii) the Executive has first provided the Employer with the opportunity to cure the event or conduct by giving
the Employer a written notice within ninety (90) days of the initial existence of one or more of the conditions set forth above
describing in sufficient detail the Executive’s belief that a Good Reason exists, and the Employer fails to cure the condition
prior to the expiration of a thirty (30) day cure period, beginning with the date such notice is received by the Employer.

 

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1.14        “Permanent
Disability” means that the Executive is unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous
period of not less than twelve (12) months, as certified by a physician chosen by the Employer and reasonably acceptable to the
Executive. Permanent Disability shall also include a determination of disability that qualifies the Executive for receiving payments
under any long-term disability insurance policy maintained by the Employer under which the Executive is entitled to benefits, provided
that the definition of disability applied under that policy complies with the requirements of Treasury Regulation § 1.409A-3(i)(4).

 

1.15        “Trade
Secrets” means information including, but not limited to, technical or nontechnical data, formulas, patterns, compilations,
programs, devices, methods, techniques, drawings, processes, financial data, financial plans, product plans or lists of actual
or potential customers or suppliers which:

 

(a)          derives
economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by,
other persons who can obtain economic value from its disclosure or use; and

 

(b)          is
the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

 

1.16         “Treasury
Regulations” means 26 C. F. R., the regulations promulgated under the Code.

 

2.      
    DUTIES.

 

2.1          The
Executive is employed as an Executive Vice President of Howard Bank and President of the mortgage division of the Bank, is subject
to the direction of the Chief Executive Officer, and must perform and discharge well and faithfully the duties which may be assigned
to Executive from time to time by the Employer in connection with the conduct of its business.

 

2.2          In
addition to the duties and responsibilities specifically assigned to the Executive pursuant to Section 2.1 hereof, the Executive
must:

 

(a)          devote
substantially all of the Executive’s time, energy and skill during regular business hours to the performance of the duties
of the Executive’s employment (reasonable vacations and reasonable absences due to illness excepted) and faithfully and industriously
perform such duties;

 

(b)          diligently
follow and implement all management policies and decisions communicated to Executive by the Chief Executive Officer and the Board;
and

 

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(c)          timely
prepare and forward to the Chief Executive Officer and to the Board all reports and accounting as may be requested of the Executive.

 

2.3          The
Executive must devote the Executive’s entire business time, attention and energies to the Business of the Employer and must
not during the Term of this Agreement be engaged (whether or not during normal business hours) in any other business or professional
activity, whether or not such activity is pursued for gain, profit or other pecuniary advantage; but this will not be construed
as preventing the Executive from:

 

(a)          investing
the Executive’s personal assets in businesses which are not in competition with the Business of the Employer and which will
not require any services on the part of the Executive in their operation or affairs and in which the Executive’s participation
is solely that of an investor;

 

(b)          purchasing
securities in any corporation whose securities are regularly traded provided that such purchase will not result in Executive collectively
owning beneficially at any time five percent (5%) or more of the equity securities of any business in competition with the Business
of the Employer; and

 

(c)          participating
in civic and professional affairs and organizations and conferences, preparing or publishing papers or books or teaching, subject
to any directions or limitations that might be established by the Chief Executive Officer and the Board from time to time.

 

3.        
  TERM AND TERMINATION.

 

3.1          Term.
The current term of this Agreement will conclude on April 30, 2017. The initial term and any renewals thereof are referred to as
the “Term.” Commencing on April 29, 2015 and continuing on each April 29th thereafter (in each case the “Renewal
Date”), this Agreement shall renew for an additional year so that the term shall be three (3) years from such Renewal Date,
unless written notice of non-renewal is provided to the Executive at least ten (10) and not more than thirty (30) days prior to
such Renewal Date. Commencing on or before March 31, 2015, prior to each notice period for possible non renewal, the disinterested
members of the Board (or a Committee comprised solely of disinterested members) will conduct a comprehensive performance evaluation
and review of the Executive for purposes of determining whether to extend the Agreement, and the results thereof shall be included
in the minutes of the Board’s (or Committee’s) meeting. In the event this Agreement expires due to non renewal, this
Agreement and Employee’s employment shall terminate on the expiration date of this Agreement.

 

3.2          Termination.
The employment of the Executive under this Agreement may be terminated prior to the expiration of the Term only as follows, subject
to the conditions set forth below:

 

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3.2.1        By
the Employer:

 

(a)          for
Cause at any time, upon written notice to the Executive, including the notice provided for in Section 1.6(c), in which event the
Employer will have no further obligation to the Executive except for the payment of any amounts due and owing under Section 4 on
the effective date of the termination; or

 

(b)          without
Cause at any time, upon written notice to the Executive, in which event the Employer will be required to make the termination payments
(i) under Section 3.7(b) if the termination is effective within twelve months following a Change in Control or (ii) otherwise under
Section 3.7(a).

 

3.2.2         By
the Executive:

 

(a)          for
Good Reason as provided in Section 1.13, in which event the Employer will be required to make the termination payments under Section
3.7(a); or

 

(b)          without
Good Reason, in which event the Employer will have no further obligation to the Executive except for payment of any amounts due
and owing under Section 4 on the effective date of the termination.

 

3.2.3        By
the Executive within twelve (12) months following a Change in Control; provided that the Executive gives at least thirty (30) days’
prior written notice to the Employer of the Executive’s intention to terminate employment with such resignation to be effective
immediately at the end of such thirty (30) day period, in which event the Employer will be required to make termination payments
under Section 3.7(b).

 

3.2.4        At
any time upon mutual, written agreement of the parties, in which event the Employer will have no further obligation to the Executive
except for the payment of any amounts due and owing under Section 4 on the effective date of termination unless otherwise set forth
in the written agreement.

 

3.2.5        Immediately
upon the Executive’s death, in which event the Employer will have no further obligation to the Executive except for the payment
of any amounts due and owing under Section 4 on the effective date of termination. Additionally in such event, all of the Executive’s
stock awards and stock options shall immediately vest upon the effective date of such termination.

 

3.2.6        By
either the Employer or the Executive upon the Permanent Disability of the Executive, in which event the Employer will be required
to make the termination payments under Section 3.7(a); provided that such payment obligations shall be reduced if and to the extent
that the Executive receives payments under any disability insurance or other program maintained by the Employer.

 

3.3          Effect
of Termination. Termination of the employment of the Executive pursuant to Section 3.2 will be without prejudice to any right
or claim, which may have previously accrued to either the Employer or the Executive hereunder and will not terminate, alter, supersede
or otherwise affect the terms and covenants and the rights and duties prescribed in this Agreement.

 

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3.4          Suspension
With Pay. Nothing contained herein will preclude the Employer from releasing the Executive of the Executive’s normal
duties and suspending Executive, with pay, during the pendency of any investigation or examination to determine whether or not
Cause exists for termination of Executive.

 

3.5          Suspension
Without Pay. If Executive is suspended and/or temporarily prohibited from participating in the conduct of the Employer’s
affairs by a notice served under Section 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act, the Employer’s
obligations under this Agreement will be suspended as of the date of service thereof, unless stayed by appropriate proceedings.
If the charges in such notice are dismissed, the Employer may in its sole discretion:

 

(a)          pay
Executive all or part of the compensation withheld while its contract obligations were suspended; and/or

 

(b)          reinstate
(in whole or in part) any of its obligations, which were suspended.

 

3.6          Other
Regulatory Requirements. (a) If the Bank is in default, as defined in Section (3)(x)(1) of the Federal Deposit Insurance
Act, all obligations under this Agreement will terminate as of the date of such default, but no vested rights of the Executive
will be affected. Further, all obligations under this Agreement will be terminated, except, to the extent determined that continuation
of the Agreement is necessary for the continued operation of the Bank:

 

(i)          by
the Director (the “Director”) of the Federal Deposit Insurance Corporation (“FDIC”) or his or her designee,
at the time the FDIC enters into an agreement to provide assistance to or on behalf of the Bank under the authority of the Federal
Deposit Insurance Act; or

 

(ii)         by
the Director or his or her designee, at the time the Director or his or her designee approves a supervisory merger to resolve problems
relating to the operation of the Bank or when the Bank is determined by the Director to be in an unsafe or unsound condition. 

 

(b)          If
any payment hereunder is determined to violate any regulatory requirement applicable to the Employer, Employer may decline to make
such payment or amend the amount or timing of such payment to comply with such regulatory requirements.

 

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3.7          Termination
Payments.

 

(a)          
In the event and only in the event employment is terminated by the Employer pursuant to Section 3.2.1(b) or Section 3.2.6 or
by the Executive pursuant to Section 3.2.2(a) or Section 3.2.6 and a Change in Control has not occurred, then commencing with
the first payroll date immediately following the effective date of such termination the Employer will pay to the Executive as severance
pay and liquidated damages an amount equal to the then current Base Salary plus all benefits then received by Executive for a period
equal to the remaining Term plus any Incentive Compensation that may have accrued in the calendar year in which Executive
was terminated, which amounts shall be payable in accordance with the Employer’s normal payroll practices. Additionally
in such event, all of Executive’s stock awards and stock options shall immediately vest upon the effective date of such termination.

 

(b)          In
the event and only in the event a Change in Control has occurred and employment is terminated by Employer pursuant to Section 3.2.1(b)
or by Executive pursuant to Section 3.2.3, the Executive shall be entitled to a lump sum payment equal to the sum of (a) the excess
of (i) two (2) times Executive’s Average Annual Compensation over (ii) the aggregate present value, as determined for federal
income tax purposes, of all other payments to the Executive in the nature of compensation, other than the benefits to which the
Executive is entitled pursuant to the final sentence of this Section 3.7(b), that are treated for federal income tax purposes as
contingent on the Change in Control plus (b) an annual bonus equal to the greater of target or actual bonus for the year in which
employment terminates, pro-rated for the months elapsed in the annual bonus period at the time employment terminates, and shall
be paid such lump sum payment by Employer within ten (10) days of the effective date of termination of employment. As used herein,
the term “Average Annual Compensation” means the average Base Salary and bonus paid to the Executive by the Employer
pursuant to Sections 4.1(a) and 4.1(b)(i) of this Agreement during the most recent three (3) taxable years ending before the date
the Change in Control occurs (or such portion of such period during which the Executive was employed by the Employer). In addition
to the termination payments provided in this Section 3.7, in the event and only in the event a Change in Control has occurred and
this Agreement is terminated by Employer or by Executive pursuant to Section 3.2.3: (i) all of Executive’s stock awards shall
immediately vest; (ii) all of Executive’s unexercised stock options shall become immediately exercisable; and (iii) Employer
shall continue Executive’s medical coverage for a period equal to the remaining Term at the same level as available to employees
of the Employer.

 

(c)          Notwithstanding
the foregoing, if Executive is a specified employee within the meaning of Section 409A of the Code, no amount payable under Section
3.7(a) or (b) shall be paid before the date that is six months after the effective date of termination of employment, or, if earlier,
the date of the Executive’s death, except to the extent that this Agreement may permit payments within that period without
causing any amount payable pursuant to this Agreement to be included in the Executive’s gross income pursuant to Section
409A(a)(1)(A) of the Code prior to the year in which they payments are received by the Executive. Any payment deferred under this
Section 3.7(c) shall be paid on the Employer’s first normal payroll date after the six-month date or the date of the Executive’s
death, as applicable.

 

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3.8          Calculation
of Payment Amount.

 

(a)          Certain
Adjustments of Payment Amount. If it is determined that any payment or distribution by the Employer to or for the benefit of
the Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise) is
subject to the limitations of Section 280G of the Code (a “Parachute Payment”), the following provisions will apply:

 

(i)          If
the aggregate present value of Parachute Payments is less than or equal to the 280G limit, then no adjustment to the amount of
such Parachute Payments shall be made.

 

(ii)         If
the aggregate present value of Parachute Payments is greater than the 280G limit, but equal to or less than 110% of the 280G limit,
such Parachute Payments shall be reduced to an amount, the present value of which maximizes the aggregate present value of Parachute
Payments without causing such Parachute Payments to exceed the 280G limit.

 

(iii)        If
the aggregate present value of Parachute Payments is greater than 110% of the 280G limit, the Executive shall be entitled to receive
an additional payment (a “Gross-Up Payment”) in an amount such that after payment by the Executive of all taxes (including
any interest or penalties imposed with respect to such taxes), including any excise tax imposed by Code Section 4999 or any interest
or penalties with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively
referred to as the “Excise Tax”) imposed upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Parachute Payments.

 

For purposes of this Section
3.8, “present value” shall be determined in accordance with Code Section 280G(d)(4), and the “280G limit”
is the amount that can be paid under this Agreement or otherwise without causing any amount to be nondeductible under Code Section
280G or subject to excise tax under Code Section 4999.

 

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(b)          Determinations
made by Accounting Firm. All determinations required to be made under Section 3.8(a), including the aggregate present value
of Parachute Payments, whether a reduction is required under Section 3.8(a)(ii) and the amount of such reduction, and whether a
Gross-Up Payment is required under Section 3.8(a)(iii) and the amount of such Gross-Up Payment, shall be made by a nationally recognized
accounting firm selected by the Employer (the “Accounting Firm”). The Accounting Firm shall provide detailed supporting
calculations both to the Employer and the Executive within 15 business days after the Executive’s termination of employment.
The initial Gross-Up Payment, if any, as determined pursuant to Section 3.8(a)(iii), shall be paid to the Executive within 15 days
after the receipt of the Accounting Firm’s determination. The Accounting Firm shall furnish the Executive with an opinion
that he or she has substantial authority to complete and file his or her Federal income tax return in a manner consistent with
the Accounting Firm’s determination of the appropriate amount of Parachute Payments reportable by the Executive and of the
appropriate amount of Excise Tax required to be paid, if any. Any determination by the Accounting Firm shall be binding upon the
Employer and the Executive.

 

(c)          Special
Rules Applicable to Reduction of Payments. The Executive shall determine which and how much of the Parachute Payments shall
be reduced consistent with the requirements of Section 3.8(a)(ii), provided that, if the Executive does not make such determination
within 10 business days after the receipt of the calculations made by the Accounting Firm, the Employer shall elect which and how
much of the Parachute Payments shall be eliminated or reduced consistent with the requirements of Section 3.8(a)(ii) and shall
notify the Executive promptly of such election.

 

(d)          Special
Rules Applicable to Gross-Up Payments. The Executive shall notify the Employer in writing of any claim by the Internal Revenue
Service that, if successful, would require the payment by the Employer of the Gross-Up Payment. Such notification shall be given
as soon as practicable but not later than ten business days after the Executive knows of such claim and shall apprise the Employer
of the nature of such claim and the date on which such claim is requested to be paid. The Executive shall not pay such claim prior
to the expiration of the thirty-day period following the date on which it gives such notice to the Employer (or such shorter period
ending on the date that any payment of taxes with respect to such claim is due). If the Employer notifies the Executive in writing
prior to the expiration of such period that it desires to contest such claim, the Executive shall:

 

(i)          give
the Employer any information reasonably requested by the Employer relating to such claim,

 

(ii)         take
such action in connection with contesting such claim as the Employer shall reasonably request in writing from time to time, including,
without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Employer,

 

(iii)        cooperate
with the Employer in good faith in order effectively to contest such claim, and

 

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(iv)        permit
the Employer to participate in any proceedings relating to such claim;

 

provided, however, that the Employer shall
bear and pay directly all costs and expenses (including interest and penalties) incurred in connection with such contest and shall
indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax, including interest and penalties
with respect thereto, imposed as a result of such representation and payment of costs and expenses. Without limitation on the foregoing
provisions of this Section 3.8(d), the Employer shall control all proceedings taken in connection with such contest and, at its
sole option, may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the taxing authority
in respect of such claim and may, at its sole option, either direct the Executive to pay the tax claimed and sue for a refund or
contest the claim in any permissible manner, and the Executive agrees to prosecute such contest to a determination before any administrative
tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Employer shall determine; provided, however,
that if the Employer directs the Executive to pay such claim and sue for a refund, the Employer shall advance the amount of such
payment to the Executive, on an interest-free basis, and shall indemnify and hold the Executive harmless, on an after-tax basis,
from any Excise Tax or income tax, including interest or penalties with respect thereto, imposed with respect to such advance or
with respect to any imputed income with respect to such advance; and further provided that any extension of the statue of limitations
relating to payment of taxes for the taxable year of the Executive with respect to which such contested amount is claimed to be
due is limited solely to such contested amount. Furthermore, the Employer’s control of the contest shall be limited to issues
with respect to which a Gross-Up Payment would be payable hereunder and the Executive shall be entitled to settle or contest, as
the case may be, and other issue raised by the Internal Revenue Service or any other taxing authority.

 

If, after receipt by
the Executive of an amount advanced by the Employer pursuant to this Section 3.8(d), the Executive becomes entitled to receive
any refund with respect to such claim, the Executive shall (subject to the Employer’s complying with the requirements of
this Section 3.8(d) promptly pay to the Employer the amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by the Employer pursuant to this
Section 3.8(d), a determination is made that the Executive shall be entitled to any refund with respect to such claim and the Employer
does not notify the Executive in writing of its intent to contest such denial of refund prior to the expiration of thirty days
after such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance
shall offset, to the extent thereof, the amount of Gross-Up Payment required to be paid.

 

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If the Employer exhausts
its remedies pursuant to this Section 3.8(d) and the Executive thereafter is required to make a payment of any Excise Tax, the
Accounting Firm shall determine the amount of the Gross-Up Payment that the Employer should have made (“Gross-Up Deficiency”).
The amount of any such Gross-Up Deficiency shall be promptly paid by the Employer to or for the benefit of the Executive. To the
extent that any Gross-Up Deficiency arises in the context of a Parachute Payment that was determined pursuant to Section 3.8(a)(ii),
and therefore reduced to the 280G limit, when in fact, the amount of such Parachute Payment should have been determined under Section
3.8(a)(iii), the amount of any Gross-Up Deficiency shall include the additional Parachute Payment due as a result of the calculation
of the amount under Section 3.8(a)(iii).

 

(e)          Overpayments/Underpayments.
As a result of the uncertainty in the application of Code Section 280G at the time of the initial determination by the Accounting
Firm hereunder, it is possible that the Parachute Payments will have been made by the Employer which should not have been made
(“Overpayment”), or that additional Parachute Payments which will not have been made by the Employer could have been
made (“Underpayment”), in each case consistent with the calculations required to be made hereunder. Overpayments and
Underpayments arising in connection with Parachute Payments appropriately determined pursuant to Section 3.8(a)(i) or Section 3.8(a)(ii)
are governed by this Section 3.8(e). Any Overpayment or Underpayment arising in connection with a Parachute Payment that is appropriately
determined pursuant to Section 3.8(a)(iii) are governed by the provisions of Section 3.8(d).

 

(i)          Overpayments.
The provisions of this subparagraph (i) apply in connection with a Parachute Payment that is appropriately determined pursuant
to Section 3.8(a)(ii). If the Accounting Firm, based upon the assertion of a deficiency by the Internal Revenue Service against
the Executive which the Accounting Firm believes has a high probability of success, determines that an Overpayment has been made,
any such Overpayment paid or distributed by the Employer to or for the benefit of the Executive shall be treated for all purposes
as a loan ab initio to the Executive which the Executive shall repay to the Employer together with interest at the applicable
federal rate provided for in Code Section 7872(f)(2); provided, however, that no such loan shall be deemed to have been made and
no amount shall be payable by the Executive to the Employer if and to the extent such deemed loan and payment would not either
reduce the amount on which the Executive is subject to tax under Code Sections 1 and 4999 or generate a refund of such taxes.

 

(ii)         Underpayments.
The provisions of this subparagraph (ii) apply in connection with a Parachute Payment that is appropriately determined pursuant
to Section 3.8(a)(i) or Section 3.8(a)(ii). If the Accounting Firm, based upon controlling precedent or other substantial authority,
determines that an Underpayment has occurred, any such Underpayment shall be promptly paid by the Employer to or for the benefit
of the Executive, together with interest at the applicable federal rate provided for in Code Section 7872(f)(2).

 

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4.    
      COMPENSATION AND BENEFITS.

 

4.1          Compensation.
The Executive will receive the following salary and benefits:

 

(a)          Base
Salary and Signing Bonus. During the Term, the Executive will receive a base salary at the rate of $225,000 per annum, payable
in substantially equal installments in accordance with the Bank’s regular payroll practices (“Base Salary”).
Commencing on January 1, 2014, The Executive’s Base Salary will increase to $245,000. The Executive’s Base Salary will
be reviewed by the Board annually, and the Executive will be entitled to receive annually an increase in such amount, if any, as
may be determined by the Board. Employer will pay Employee a signing bonus of $50,000 on the Effective Date subject to normal payroll
deductions.

 

(b)          Incentive
Compensation. The following bonuses and other compensation to which the Executive is entitled are referred to herein as
“Incentive Compensation”:

 

(i)          In
addition to Executive’s Base Salary under Section 4.1(a), Employee will annually receive 9% of the pretax income from the
Bank’s retail mortgage operation with no deduction to seek pretax income for corporate overhead allocations (the, “Profit
Sharing”). Any Profit Sharing will be paid in cash and restricted stock in a manner consistent with Employer’s compensation
programs. Except as provided in Section 4.1 (b)(ii), Payment of the Profit Sharing for each year will be made as follows (the,
“Payment Schedule”):

 

a.           50%
by the 31st of each January for Profit Sharing earned during the prior calendar year (the “Initial Year”)

 

b.           16.66%
by the 31st of January for each of the next three calendar years after the Initial Year for the prior calendar year.

 

(ii)         In
the event Employee’s Profit Sharing is less than $50,000 for the calendar year 2013, Employer will pay Employee the difference
between the amount of Profit Sharing earned and $50,000 with such difference being paid in a lump sum on January 31, 2014.

 

In the event Employee’s employment
is terminated by Employer for any reason, Employee shall stop earning Profit Sharing as of the date of termination but shall be
paid all previously earned Profit Sharing pursuant to the Payment Schedule. If Employee’s employment is terminated by Employer
for any reason other than cause and such termination occurs prior to the end of a calendar year, the Payment Schedule will be based
on the Profit Sharing earned from the beginning of such year through the date of termination.

 

    13 

     

    

 

(iii)        The
Executive will also be entitled to participate in such other bonus, incentive and other executive compensation programs as are
made available to executive management of the Employer from time to time.

 

(iv)        Employer
will grant Employee on the Effective Date 5000 shares of restricted stock of the Company with such grant vesting equally over three
years commencing on first anniversary of the Effective Date and continuing for the next two anniversaries of the Effective Date.
Employer will take such action as may be necessary to cause the Company to issues such restricted stock. In the event Employee
is terminated for Cause or voluntarily terminates employment with the Employer without Good Reason, Employee shall not receive
and have no rights to any shares granted hereunder but not vested as of the date of such termination.

 

4.2           Business
Expenses; Memberships. The Employer agrees to reimburse the Executive for (a) reasonable business (including travel) expenses
incurred by the Executive in the performance of the Executive’s duties hereunder and (b) the dues and business related
expenditures, including initiation fees, associated with membership in professional associations which are commensurate with the
Executive’s position; provided, however, that the Executive must, as a condition of reimbursement, submit verification of
the nature and amount of such expenses in accordance with reimbursement policies from time to time adopted by the Employer and
in sufficient detail to comply with rules and regulations promulgated by the Internal Revenue Service.

 

4.3           Vacation.
On a non-cumulative basis the Executive will be entitled to vacation in each year of this Agreement in accordance with the Bank’s
vacation policy as then in effect, during which the Executive’s Base Salary will be paid in full.

 

4.4           Benefits.
In addition to the Base Salary and Incentive Compensation, the Executive will be entitled to such benefits as may be available
from time to time for employees of the Employer. All such benefits will be awarded and administered in accordance with the Employer’s
standard policies and practices. Such benefits may include, by way of example only, health, dental, vision, profit-sharing plans,
retirement, and disability insurance benefits and such other benefits as the Employer deems appropriate. In addition to the benefits
described in this Section 4.4, Employer shall provide to Executive at no cost to Executive, split dollar benefits of a $500,000
key man life insurance policy.

 

4.5           Car
Allowance. Employer shall pay Employee $750.00 per month as a car allowance.

 

4.6           Withholding.
The Employer may deduct from each payment of compensation hereunder all amounts required to be deducted and withheld in accordance
with applicable federal and state income, FICA and other withholding requirements.

 

    14 

     

    

 

5.       
   COMPANY INFORMATION.

 

5.1          Ownership
of Information. All Company Information received or developed by the Executive while employed by the Employer will remain the
sole and exclusive property of the Employer.

 

5.2          Obligations
of the Executive. The Executive agrees (a) to hold Company Information in strictest confidence, (b) not to use, duplicate,
reproduce, distribute, disclose or otherwise disseminate Company Information or any physical embodiments thereof and (c) not to
take or fail to take any action with respect to Confidential Information that would result in any Company Information losing its
character or ceasing to qualify as Confidential Information or a Trade Secret. In the event that the Executive is required by law
to disclose any Company Information, the Executive will not make such disclosure unless (and then only to the extent that) the
Executive has been advised by the Company’s legal counsel that such disclosure is required by law and then only after prior
written notice is given to the Employer when the Executive becomes aware that such disclosure has been requested and is required
by law. This Section 5 will survive the termination of employment with respect to Confidential Information for so long as it remains
Confidential Information, but for no longer than three (3) years following termination of employment, and this Section 5 will
survive termination of employment with respect to Trade Secrets for so long as is permitted by the then-current Maryland Trade
Secrets Act.

 

5.3          Delivery
upon Request or Termination. Upon request by the Employer, and in any event upon termination of employment with the Employer,
the Executive will promptly deliver to the Employer all property belonging to the Employer, including without limitation, all Company
Information then in the Executive’s possession or control.

 

6.     
     NON-COMPETITION. The Executive agrees that during the Term hereunder and, in the event
of the Executive’s termination of employment for any reason, during the period of one (1) year from and after the
effective date of such termination, the Executive will not (except on behalf of or with the prior written consent of the
Employer), within the Area, either directly or indirectly, on the Executive’s own behalf or in the service or on behalf
of others, as a principal, partner, officer, director, manager, supervisor, administrator, consultant, executive employee or
in any other capacity which involves duties and responsibilities similar to those undertaken for the Employer, engage in any
business which is the same as or essentially the same as the Business of the Employer.

 

7.    
      NON-SOLICITATION OF CUSTOMERS. The Executive agrees that during the Term hereunder
and, in the event of the Executive’s termination of employment for any reason, during the period of one (1) year from
and after the effective date of such termination, the Executive will not (except on behalf of or with the prior written
consent of the Employer), within the Area, on the Executive’s own behalf or in the service or on behalf of others,
solicit, divert or appropriate or attempt to solicit, divert or appropriate, directly or by assisting others, any business
from any of the Employer’s customers, including actively sought prospective customers, with whom the Executive has or
had material contact during the last two (2) years of the Executive’s employment, for purposes of providing
products or services that are competitive with those provided by the Employer.

 

    15 

     

    

 

8.    
      NON-SOLICITATION OF EMPLOYEES. The Executive agrees that during the Term hereunder
and, in the event of the Executive’s termination of employment for any reason, during the period of (1) year from and
after the effective date of such termination, the Executive will not, except for Executive’s Administrative Assistant,
within the Area, on the Executive’s own behalf or in the service or on behalf of others, solicit, recruit or hire away
or attempt to solicit, recruit or hire away, directly or by assisting others, any employee of the Employer, whether or not
such employee is a full-time employee or a temporary employee of the Employer and whether or not such employment is pursuant
to written agreement and whether or not such employment is for a determined period or is at will.

 

9.     
     REMEDIES. The Executive agrees that the covenants contained in Sections 5 through 9 of
this Agreement are of the essence of this Agreement; that each of the covenants is reasonable and necessary to protect the
business, interests and properties of the Employer; and that irreparable loss and damage will be suffered by the Employer
should the Executive breach any of the covenants. Therefore, the Executive agrees and consents that, in addition to all the
remedies provided by law or in equity, the Employer will be entitled to a temporary restraining order and temporary and
permanent injunctions to prevent a breach or contemplated breach of any of the covenants. The Employer and the Executive
agree that all remedies available to the Employer or the Executive, as applicable, will be cumulative.

 

10.         SEVERABILITY.
The parties agree that each of the provisions included in this Agreement is separate, distinct and severable from the other provisions
of this Agreement and that the invalidity or unenforceability of any Agreement provision will not affect the validity or enforceability
of any other provision of this Agreement. Further, if any provision of this Agreement is ruled invalid or unenforceable by a court
of competent jurisdiction because of a conflict between the provision and any applicable law or public policy, the provision will
be redrawn to make the provision consistent with and valid and enforceable under the law or public policy.

 

11.         NO
SET-OFF BY THE EXECUTIVE. The existence of any claim, demand, action or cause of action by the Executive against the Employer,
or any Affiliate of the Employer, whether predicated upon this Agreement or otherwise, will not constitute a defense to the enforcement
by the Employer of any of its rights hereunder.

 

12.         NOTICE.
All notices and other communications required or permitted under this Agreement will be in writing and, if mailed by prepaid first-class
mail or certified mail, return receipt requested, will be deemed to have been received on the earlier of the date shown on the
receipt or three (3) business days after the postmarked date thereof. In addition, notices hereunder may be delivered by hand,
facsimile transmission or overnight courier, in which event the notice will be deemed effective when delivered or transmitted.
All notices and other communications under this Agreement must be given to the parties hereto at the following addresses:

 

    16 

     

    

 

If to the Employer:

 

Howard Bank

 

6011 University Boulevard

Suite 370

Ellicott City, MD 21043

 

Attn: Chief Executive Officer,
Lead Independent Director and Governance

          Committee
Chair

 

With copy to:

 

Frank C. Bonaventure,
Jr.

OBER | KALER

100 Light Street

Baltimore, Maryland
21202

 

If to the Executive:

Robert A. Altieri

2814 Shadow Roll Court

Glenwood, Maryland 21738

 

13.       
  ASSIGNMENT. Neither party hereto may assign or delegate this Agreement or any of its rights and
obligations hereunder without the written consent of the other party hereto.

 

14.      
   WAIVER. A waiver by the Employer of any breach of this Agreement by the Executive will not be
effective unless in writing, and no waiver will operate or be construed as a waiver of the same or another breach on a
subsequent occasion.

 

15.     
    ARBITRATION. Any controversy or claim arising out of or relating to this Agreement, or the
breach thereof, will be settled by binding arbitration in accordance with the Commercial Arbitration Rules of the American
Arbitration Association. The decision of the arbitration panel will be final and binding on the parties, and judgment upon
the award rendered by the arbitration panel may be entered by any court having jurisdiction thereof.

 

16.    
     ATTORNEYS’ FEES. In the event that the parties have complied with this Agreement
with respect to arbitration of disputes and litigation ensues between the parties concerning the enforcement of an
arbitration award and the Executive must employ separate legal counsel, the Employer shall advance to the Executive, within
thirty (30) days after receiving copies of invoices submitted by Executive, any and all reasonable attorneys’ fees and
expenses incurred with preparing, investigating and litigating such action, proceeding or suit. The Executive must reimburse
the Employer for any and all advances that exceed the first $5,000 advanced to the Executive for such legal expenses only if
and to the extent that a final decision by a court of competent jurisdiction has determined that the Executive is not
entitled to receive any amounts due or to enforce any of the rights under this Agreement.

 

    17 

     

    

 

17.    
     APPLICABLE LAW. This Agreement will be construed and enforced under and in accordance
with the laws of the State of Maryland. The parties agree that any appropriate state court located in Howard County,
Maryland, will have jurisdiction of any case or controversy arising under or in connection with this Agreement and will be a
proper forum in which to adjudicate such case or controversy. The parties consent to the jurisdiction of such courts.

 

18.      
   INTERPRETATION. Words importing the singular form shall include the plural and vice versa. The terms
“herein”, “hereunder”, “hereby”, “hereto”, “hereof” and any
similar terms refer to this Agreement. Any captions, titles or headings preceding the text of any article, section or
subsection herein are solely for convenience of reference and will not constitute part of this Agreement or affect its
meaning, construction or effect.

 

19.     
    ENTIRE AGREEMENT. This Agreement embodies the entire and final agreement of the parties on the
subject matter stated in the Agreement. No amendment or modification of this Agreement will be valid or binding upon the
Employer or the Executive unless made in writing and signed by both parties. All prior understandings and agreements relating
to the subject matter of this Agreement are hereby expressly terminated.

 

20.     
    RIGHTS OF THIRD PARTIES. Nothing herein expressed is intended to or will be construed to
confer upon or give to any person, firm or other entity, other than the parties hereto and their permitted assigns, any
rights or remedies under or by reason of this Agreement.

 

21.      
   SURVIVAL. The obligations of the Executive pursuant to Sections 5, 6, 7, 8 and 9 will survive the
termination of the employment of the Executive hereunder for the period designated under each of those respective
sections.

 

[Signature Page Follows]

 

    18 

     

    

 

IN WITNESS WHEREOF,
the Employer and the Executive have executed and delivered this Agreement as of the date first shown above.

 

	 	Employer:
	 	 
	 	HOWARD BANK
	 	 	 
	 	By:	/s/ Mary Ann Scully
	 	 	Mary Ann Scully
	 	 	Chief Executive Officer
	 	 	 
	 	Executive:
	 	 	 
	 	/s/ Robert A. Altieri
	 	Robert A. Altieri

 

    19PEN
Inc.

2015
EQUITY INCENTIVE PLAN

 

1. Purpose
of the Plan. The purpose of this Plan is to permit equity compensation for those who provide services to the Company and
to encourage ownership in the Company by key personnel whose long-term service the Company considers essential to its continued
progress and, thereby, encourage recipients to act in the stockholders’ interest and share in the Company’s success.

 

2. Definitions.
As used herein, the following definitions shall apply:

 

“Act”
shall mean the Securities Act of 1933, as amended.

 

“Administrator”
shall mean the Board, any Committees, or such delegates as shall be administering the Plan in accordance with Section 4 of the
Plan.

 

“Affiliate”
shall mean any entity that is directly or indirectly in control of or controlled by the Company, or any entity in which the Company
has a significant ownership interest as determined by the Administrator.

 

“Applicable
Laws” shall mean the requirements relating to the administration of stock plans under federal and state laws; any stock
exchange or quotation system on which the Company has listed or submitted for quotation the Common Stock to the extent provided
under the terms of the Company’s agreement with such exchange or quotation system.

 

“Award”
shall mean, individually or collectively, a grant under the Plan of an Option or other such Stock Award.

 

“Awardee”
shall mean a Service Provider who has been granted an Award under the Plan.

 

“Award
Agreement” shall mean an Option Agreement or Stock Award Agreement, which may be in written or electronic format, in such
form and with such terms as may be specified by the Administrator, evidencing the terms and conditions of an individual Award.
Each Award Agreement is subject to the terms and conditions of the Plan.

 

“Board”
shall mean the Board of Directors of the Company.

 

“Change
in Control” shall mean any of the following, unless the Administrator provides otherwise:

 

(i) any
merger or consolidation in which the Company shall not be the surviving entity (or survives only as a subsidiary of another entity
whose stockholders did not own all or substantially all of the Common Stock in substantially the same proportions as immediately
before such transaction);

 

(ii) the
sale of all or substantially all of the Company’s assets to any other person or entity (other than a wholly-owned subsidiary
of the Company);

 

(iii) the
acquisition of beneficial ownership of a controlling interest (including power to vote) in the outstanding shares of Common Stock
by any person or entity (including a “group” as defined by or under Section 13(d)(3) of the Exchange Act);

 

(iv) the
dissolution or liquidation of the Company;

 

(v) a
contested election of Directors, as a result of which or in connection with which the persons who were Directors before such election
or their nominees cease to constitute a majority of the Board; or

 

(vi) any
other event specified, at the time an Award is granted or thereafter, by the Board or a Committee.

 

    	 

    	 

    

 

Notwithstanding
the foregoing, the term “Change in Control” shall not include any underwritten public offering of Shares registered
under the Act.

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended.

 

“Committee”
shall mean a committee of Directors appointed by the Board in accordance with Section 4 of the Plan.

 

“Common
Stock” shall mean the Class A common stock of the Company.

 

“Company”
shall mean PEN Inc., a Delaware corporation, or its successor.

 

“Consultant”
shall mean any natural person, other than an Employee or Director, who performs bona fide services for the Company or an Affiliate
as a consultant or advisor.

 

“Conversion
Award” has the meaning set forth in Section 4(b)(xii) of the Plan.

 

“Director”
shall mean a member of the Board.

 

“Disability”
shall mean permanent and total disability as defined in Section 22(e)(3) of the Code.

 

“Employee”
shall mean an employee of the Company or any Affiliate, and may include an Officer or Director. Within the limitations of Applicable
Law, the Administrator shall have the discretion to determine the effect upon an Award and upon an individual’s status as
an Employee in the case of (i) any individual who is classified by the Company or its Affiliate as leased from or otherwise employed
by a third party or as intermittent or temporary, even if any such classification is changed retroactively as a result of an audit,
litigation or otherwise; (ii) any leave of absence approved by the Company or an Affiliate; (iii) any transfer between locations
of employment with the Company or an Affiliate or between the Company and any Affiliate or between any Affiliates; (iv) any change
in the Awardee’s status from an employee to a Consultant or Director; and (v) an employee who, at the request of the Company
or an Affiliate, becomes employed by any partnership, joint venture, or corporation not meeting the requirements of an Affiliate
in which the Company or an Affiliate is a party.

 

“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.

 

“Fair
Market Value” shall mean, unless the Administrator determines otherwise, as of any date, the closing price for such Common
Stock as of such date (or if no sales were reported on such date, the closing price on the last preceding day for which a sale
was reported), as reported in such source as the Administrator shall determine.

 

“Grant
Date” shall mean the date upon which an Award is granted to an Awardee pursuant to this Plan.

 

    	 	2	 

    	 

    

 

“Incentive
Stock Option” shall mean an Option intended to qualify as an incentive stock option within the meaning of Section 422 of
the Code.

 

“Nonstatutory
Stock Option” shall mean an Option not intended to qualify as an Incentive Stock Option.

 

“Officer”
shall mean a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act.

 

“Option”
shall mean a right granted under Section 8 of the Plan to purchase a certain number of Shares at such exercise price, at such
times, and on such other terms and conditions as are specified in the agreement or other documents evidencing the Award (the “Option
Agreement”). Both Options intended to qualify as Incentive Stock Options and Nonstatutory Stock Options may be granted
under the Plan.

 

“Participant”
shall mean the Awardee or any person (including any estate) to whom an Award has been assigned or transferred as permitted hereunder.

 

“Plan”
shall mean this PEN Inc. 2015 Equity Incentive Plan.

 

“Qualifying
Performance Criteria” shall have the meaning set forth in Section 14(b) of the Plan.

 

“Related
Corporation” shall mean any parent or subsidiary (as those terms are defined in Section 424(e) and (f) of the Code) of the
Company.

 

“Service
Provider” shall mean an Employee, Officer, Director, or Consultant.

 

“Share”
shall mean a share of Common Stock, as adjusted in accordance with Section 13 of the Plan.

 

“Stock
Award” shall mean an award or issuance of Shares made under Section 11 of the Plan, the grant, issuance, retention, vesting,
and transferability of which is subject during specified periods to such conditions (including continued service or performance
conditions) and terms as are expressed in the agreement or other documents evidencing the Award (the “Stock Award Agreement”).

 

“Ten-Percent
Stockholder” shall mean the owner of stock (as determined under Section 424(d) of the Code) possessing more than 10% of
the total combined voting power of all classes of stock of the Company (or any Related Corporation).

 

“Termination
Date” shall mean the date of a Participant’s Termination of Service, as determined by the Administrator in its sole
discretion.

 

“Termination
of Service” shall mean ceasing to be a Service Provider. However, for Incentive Stock Option purposes, Termination of Service
will occur when the Awardee ceases to be an employee (as determined in accordance with Section 3401(c) of the Code and the regulations
promulgated thereunder) of the Company. The Administrator shall determine whether any corporate transaction, such as a sale or
spin-off of a division or business unit, or a joint venture, shall be deemed to result in a Termination of Service.

 

    	 	3	 

    	 

    

 

3. Stock
Subject to the Plan.

 

(a) Aggregate
Limit. The maximum aggregate number of Shares that may be issued under the Plan through Awards is 20,000,000 Shares. The limitations
of this Section 3(a) shall be subject to the adjustments set forth in Section 13 of the Plan.

 

(b) Reduction
and Replenishment. Upon payment for Shares pursuant to the exercise of an Award, the number of Shares available for issuance
under the Plan shall be reduced only by the number of Shares actually issued in such payment. If any outstanding Award expires
or is terminated or canceled without having been exercised or settled in full, or if Shares acquired pursuant to an Award subject
to forfeiture or repurchase are forfeited or repurchased by the Company, the Shares allocable to the terminated portion of such
Award or such forfeited or repurchased Shares shall again be available to grant under the Plan. Notwithstanding the foregoing,
the aggregate number of shares of Common Stock that may be issued under the Plan upon the exercise of Incentive Stock Options
shall not be increased for restricted Shares that are forfeited or repurchased. Notwithstanding anything in the Plan, or any Award
Agreement to the contrary, Shares attributable to Awards transferred under any Award transfer program shall not be again available
for grant under the Plan. The Shares subject to the Plan may be either Shares reacquired by the Company, including Shares purchased
in the open market, or authorized but unissued Shares.

 

4. Administration
of the Plan.

 

(a) Procedure.

 

(i) Multiple
Administrative Bodies. The Plan shall be administered by the Board or one or more Committees, including such delegates as
may be appointed under paragraph (a)(iv) of this Section 4.

 

(ii) Section
162(m). To the extent that the Administrator determines it to be desirable to qualify Awards granted hereunder as “performance-based
compensation” within the meaning of Section 162(m) of the Code, Awards to “covered employees” within the meaning
of Section 162(m) of the Code or Employees that the Committee determines may be “covered employees” in the future
shall be made by a Committee of two or more “outside directors” within the meaning of Section 162(m) of the Code.

 

(iii) Rule
16b-3. To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3 promulgated under the Exchange
Act (“Rule 16b-3”), Awards to Officers and Directors shall be made in such a manner to satisfy the requirement
for exemption under Rule 16b-3.

 

(iv) Other
Administration. The Board or a Committee may delegate to an authorized Officer or Officers of the Company the power to approve
Awards to persons eligible to receive Awards under the Plan who are not (A) subject to Section 16 of the Exchange Act; or (B)
at the time of such approval, “covered employees” under Section 162(m) of the Code.

 

(v) Delegation
of Authority for the Day-to-Day Administration of the Plan. Except to the extent prohibited by Applicable Law, the Administrator
may delegate to one or more individuals the day-to-day administration of the Plan and any of the functions assigned to it in this
Plan. Such delegation may be revoked at any time.

 

(b) Powers
of the Administrator. Subject to the provisions of the Plan and, in the case of a Committee or delegates acting as the Administrator,
subject to the specific duties delegated to such Committee or delegates, the Administrator shall have the authority, in its sole
discretion:

 

    	 	4	 

    	 

    

 

(i) to
select the Service Providers of the Company or its Affiliates to whom Awards are to be granted hereunder;

 

(ii) to
determine the number of shares of Common Stock to be covered by each Award granted hereunder;

 

(iii) to
determine the type of Award to be granted to the selected Service Provider;

 

(iv) to
approve the forms of Award Agreements for use under the Plan;

 

(v)
to determine the terms and conditions, consistent with the terms of the Plan, of any Award granted hereunder. Such terms and conditions
include the exercise or purchase price, the time or times when an Award may be exercised (which may or may not be based on performance
criteria), the vesting schedule, any vesting or exercisability acceleration or waiver of forfeiture restrictions, the acceptable
forms of consideration, the term, and any restriction or limitation regarding any Award or the Shares relating thereto, based
in each case on such factors as the Administrator, in its sole discretion, shall determine and may be established at the time
an Award is granted or thereafter;

 

(vi) to
correct administrative errors;

 

(vii) to
construe and interpret the terms of the Plan (including sub-plans and Plan addenda) and Awards granted pursuant to the Plan;

 

(viii) to
adopt rules and procedures relating to the operation and administration of the Plan to accommodate the specific requirements of
local laws and procedures. Without limiting the generality of the foregoing, the Administrator is specifically authorized (A)
to adopt the rules and procedures regarding the conversion of local currency, withholding procedures, and handling of stock certificates
that vary with local requirements; and (B) to adopt sub-plans and Plan addenda as the Administrator deems desirable, to accommodate
foreign laws, regulations and practice;

 

(ix) to
prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans
and Plan addenda;

 

(x) to
modify or amend each Award, including the acceleration of vesting, exercisability, or both; except that any modification
or amendment of an Award is subject to Section 14(b) of the Plan and may not materially impair any outstanding Award unless agreed
to by the Participant;

 

(xi) to
allow Participants to satisfy withholding tax amounts by electing to have the Company withhold from the Shares to be issued pursuant
to an Award that number of Shares having a Fair Market Value equal to the amount required to be withheld. The Fair Market Value
of the Shares to be withheld shall be determined in such manner and on such date that the Administrator shall determine or, in
the absence of provision otherwise, on the date that the amount of tax to be withheld is to be determined. All elections by a
Participant to have Shares withheld for this purpose shall be made in such form and under such conditions as the Administrator
may provide;

 

(xii) to
authorize conversion or substitution under the Plan of any or all stock options, stock appreciation rights, or other stock awards
held by service providers of an entity acquired by the Company (the “Conversion Awards”). Any conversion or
substitution shall be effective as of the close of the merger or acquisition. The Conversion Awards may be Nonstatutory Stock
Options or Incentive Stock Options, as determined by the Administrator, with respect to options granted by the acquired entity.
Unless otherwise determined by the Administrator at the time of conversion or substitution, all Conversion Awards shall have the
same terms and conditions as Awards generally granted by the Company under the Plan;

 

    	 	5	 

    	 

    

 

(xiii) to
authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Award previously granted
by the Administrator;

 

(xiv) to
determine whether Awards will be settled in Shares, cash, or in any combination thereof;

 

(xv) to
determine whether to provide for the right to receive dividends or dividend equivalents;

 

(xvi) to
establish a program whereby Service Providers designated by the Administrator can reduce compensation otherwise payable in cash
in exchange for Awards under the Plan;

 

(xvii) to
impose such restrictions, conditions, or limitations as it determines appropriate as to the timing and manner of any resales by
a Participant or other subsequent transfers by the Participant of any Shares issued as a result of or under an Award, including
(A) restrictions under an insider trading policy, and (B) restrictions as to the use of a specified brokerage firm for such resales
or other transfers;

 

(xviii) to
provide, either at the time an Award is granted or by subsequent action, that an Award shall contain as a term thereof, a right,
either in tandem with the other rights under the Award or as an alternative thereto, of the Participant to receive, without payment
to the Company, a number of Shares, cash, or a combination of both, the amount of which is determined by reference to the value
of the Award; and

 

(xix) to
make all other determinations deemed necessary or advisable for administering the Plan and any Award granted hereunder.

 

(c) Effect
of Administrator’s Decision. All decisions, determinations and interpretations by the Administrator regarding the Plan,
any rules and regulations under the Plan and the terms and conditions of any Award granted hereunder, shall be final and binding
on all Participants. The Administrator shall consider such factors as it deems relevant, in its sole and absolute discretion,
to making such decisions, determinations and interpretations, including the recommendations or advice of any officer or other
employee of the Company and such attorneys, consultants and accountants as it may select.

 

5. Eligibility.
 Awards may be granted to Service Providers of the Company or any of its Affiliates.

 

6. Effective
Date and Term of the Plan.  The Plan shall become effective upon its adoption by the Board. Options and Stock Awards
may be granted immediately thereafter. The Plan shall continue in effect for a term of TEN (10) years from the date of the Plan’s
adoption by the Board unless terminated earlier under Section 14.

 

7. Term
of Award.  The term of each Award shall be determined by the Administrator and stated in the Award Agreement. In the
case of an Option, the term shall be TEN (10) years from the Grant Date or such shorter term as may be stated in the Award Agreement.

 

    	 	6	 

    	 

    

 

8. Options.
 The Administrator may grant an Option or provide for the grant of an Option, from time to time in the discretion of the Administrator
or automatically upon the occurrence of specified events, including the achievement of performance goals, and for the satisfaction
of an event or condition within the control of the Awardee or within the control of others.

 

(a) Option
Agreement. Each Option Agreement shall contain provisions regarding (i) the number of Shares that may be issued upon exercise
of the Option; (ii) the type of Option; (iii) the exercise price of the Shares and the means of payment for the Shares; (iv) the
term of the Option; (v) such terms and conditions on the vesting or exercisability of an Option, or both, as may be determined
from time to time by the Administrator; (vi) restrictions on the transfer of the Option and forfeiture provisions; and (vii) such
further terms and conditions, in each case not inconsistent with this Plan, as may be determined from time to time by the Administrator.

 

(b) Exercise
Price. The per share exercise price for the Shares to be issued pursuant to exercise of an Option shall be determined by the
Administrator, subject to the following:

 

(i) In
the case of an Incentive Stock Option, the per Share exercise price shall be no less than 100% of the Fair Market Value
per Share on the Grant Date. Notwithstanding the foregoing, if any Incentive Stock Option is granted to a Ten-Percent Stockholder,
then the exercise price shall not be less than 110% of the Fair Market Value of a share of Common Stock on the Grant Date.

 

(ii) In
the case of a Nonstatutory Stock Option, the per Share exercise price shall be no less than 100% of the Fair Market Value per
Share on the Grant Date. The per Share exercise price may also vary according to a predetermined formula; so long as, on the Grant
Date, the exercise price never falls below 100% of the Fair Market Value per Share.

 

(iii) Notwithstanding
the foregoing, at the Administrator’s discretion, Conversion Awards may be granted in substitution or conversion of options
of an acquired entity, with a per Share exercise price of less than 100% of the Fair Market Value per Share on the date of such
substitution or conversion.

 

(c) Vesting
Period and Exercise Dates. Options granted under this Plan shall vest, be exercisable, or both, at such times and in such
installments during the Option’s term as determined by the Administrator. The Administrator shall have the right to make
the timing of the ability to exercise any Option granted under this Plan subject to continued service, the passage of time, or
such performance requirements as deemed appropriate by the Administrator. At any time after the grant of an Option, the Administrator
may reduce or eliminate any restrictions surrounding any Participant’s right to exercise all or part of the Option.

 

(d) Form
of Consideration. The Administrator shall determine the acceptable form of consideration for exercising an Option, including
the method of payment, either through the terms of the Option Agreement or at the time of exercise of an Option. The consideration,
determined by the Administrator (or pursuant to authority expressly delegated by the Board, a Committee, or other person), and
in the form and amount required by applicable law, shall be actually received before issuing any Shares pursuant to the Plan;
which consideration shall have a value, as determined by the Board, not less than the par value of such Shares. Acceptable forms
of consideration may include:

 

 (i) cash;

 

 (ii) check or wire transfer;

 

    	 	7	 

    	 

    

 

(iii) subject
to any conditions or limitations established by the Administrator, other Shares that have a Fair Market Value on the date of surrender
or attestation that does not exceed the aggregate exercise price of the Shares as to which said Option shall be exercised;

 

(iv) consideration
received by the Company under a broker-assisted sale and remittance program acceptable to the Administrator to the extent that
this procedure would not violate Section 402 of the Sarbanes-Oxley Act of 2002, as amended;

 

(v) cashless
exercise, subject to any conditions or limitations established by the Administrator;

 

(vi) such
other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws; or

 

(vii) any
combination of the foregoing methods of payment.

 

9. Incentive
Stock Option Limitations.

 

(a) Eligibility.
Only employees (as determined in accordance with Section 3401(c) of the Code and the regulations promulgated thereunder) of the
Company may be granted Incentive Stock Options.

 

(b) $100,000
Limitation. Notwithstanding the designation “Incentive Stock Option” in an Option Agreement, if the aggregate
Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Awardee
during any calendar year (under all plans of the Company) exceeds $100,000, then the portion of such Options that exceeds $100,000
shall be treated as Nonstatutory Stock Options. An Incentive Stock Option is considered to be first exercisable during a calendar
year if the Incentive Stock Option will become exercisable at any time during the year, assuming that any condition on the Awardee’s
ability to exercise the Incentive Stock Option related to the performance of services is satisfied. If the Awardee’s ability
to exercise the Incentive Stock Option in the year is subject to an acceleration provision, then the Incentive Stock Option is
considered first exercisable in the calendar year in which the acceleration provision is triggered. For purposes of this Section
9(b), Incentive Stock Options shall be taken into account in the order in which they were granted. However, because an acceleration
provision is not taken into account before the trigger occurs, an Incentive Stock Option that becomes exercisable for the first
time during a calendar year by operation of such provision does not affect the application of the $100,000 limitation with respect
to any Incentive Stock Option (or portion thereof) exercised before such acceleration. The Fair Market Value of the Shares shall
be determined as of the Grant Date.

 

(c) Leave
of Absence. For purposes of Incentive Stock Options, no leave of absence may exceed three months, unless the right to reemployment
upon expiration of such leave is provided by statute or contract. If the period of leave exceeds three months and the Awardee’s
right to reemployment is not provided by statute or contract, the Awardee’s employment with the Company shall be deemed
to terminate on the first day immediately following such three-month period, and any Incentive Stock Option granted to the Awardee
shall cease to be treated as an Incentive Stock Option and shall terminate upon the expiration of the three-month period starting
on the date the employment relationship is deemed terminated.

 

    	 	8	 

    	 

    

 

(d) Transferability.
The Option Agreement must provide that an Incentive Stock Option cannot be transferable by the Awardee otherwise than by will
or the laws of descent and distribution, and, during the lifetime of such Awardee, must not be exercisable by any other person.
Notwithstanding the foregoing, the Administrator, in its sole discretion, may allow the Awardee to transfer his or her Incentive
Stock Option to a trust where under Section 671 of the Code and other Applicable Law, the Awardee is considered the sole beneficial
owner of the Option while it is held in the trust. If the terms of an Incentive Stock Option are amended to permit transferability,
the Option will be treated for tax purposes as a Nonstatutory Stock Option.

 

(e) Exercise
Price. The per Share exercise price of an Incentive Stock Option shall be determined by the Administrator in accordance with
Section 8(b)(i) of the Plan.

 

(f) Ten-Percent
Stockholder. If any Incentive Stock Option is granted to a Ten-Percent Stockholder, then the Option term shall not exceed
FIVE (5) years measured from the date of grant of such Option.

 

(g) Other
Terms. Option Agreements evidencing Incentive Stock Options shall contain such other terms and conditions as may be necessary
to qualify as Incentive Stock Options, to the extent determined desirable by the Administrator, under the applicable provisions
of Section 422 of the Code.

 

10. Exercise
of Option.

 

(a) Procedure
for Exercise; Rights as a Stockholder.

 

(i) Any
Option granted hereunder shall be exercisable according to the terms of the Plan and at such times and under such conditions as
determined by the Administrator and set forth in the respective Award Agreement.

 

(ii) An
Option shall be deemed exercised when the Company receives (A) written or electronic notice of exercise (in accordance with the
Award Agreement) from the person entitled to exercise the Option; (B) full payment for the Shares with respect to which the related
Option is exercised; and (C) with respect to Nonstatutory Stock Options, payment of all applicable withholding taxes.

 

(iii) Shares
issued upon exercise of an Option shall be issued in the name of the Participant or, if requested by the Participant, in the name
of the Participant and his or her spouse. Unless provided otherwise by the Administrator or pursuant to this Plan, until the Shares
are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company),
no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Shares subject to an
Option, notwithstanding the exercise of the Option.

 

(iv) The
Company shall issue (or cause to be issued) such Shares as soon as administratively practicable after the Option is exercised.
An Option may not be exercised for a fraction of a Share.

 

(b) Effect
of Termination of Service on Options.

 

(i) Generally.
Unless otherwise provided for by the Administrator, if a Participant ceases to be a Service Provider, other than upon the Participant’s
death or Disability, the Participant may exercise his or her Option within such period as is specified in the Award Agreement
to the extent that the Option is vested on the Termination Date (but in no event later than the expiration of the term of such
Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the vested portion of
the Option will remain exercisable for THREE (3) months following the Participant’s Termination Date. Unless otherwise provided
by the Administrator, if on the Termination Date the Participant is not vested as to his or her entire Option, the Shares covered
by the unvested portion of the Option will automatically revert to the Plan. If after the Termination of Service the Participant
does not exercise his or her Option within the time specified by the Administrator, the Option will automatically terminate, and
the Shares covered by such Option will revert to the Plan.

 

    	 	9	 

    	 

    

 

(ii) Disability
of Awardee. Unless otherwise provided for by the Administrator, if a Participant ceases to be a Service Provider as a result
of the Participant’s Disability, the Participant may exercise his or her Option within such period as is specified in the
Award Agreement to the extent the Option is vested on the Termination Date (but in no event later than the expiration of the term
of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option will
remain exercisable for twelve months following the Participant’s Termination Date. Unless otherwise provided by the Administrator,
if at the time of Disability the Participant is not vested as to his or her entire Option, the Shares covered by the unvested
portion of the Option will automatically revert to the Plan. If the Option is not so exercised within the time specified herein,
the Option will terminate, and the Shares covered by such Option will automatically revert to the Plan.

 

(iii) Death
of Awardee. Unless otherwise provided for by the Administrator, if a Participant dies while a Service Provider, the Option
may be exercised following the Participant’s death within such period as is specified in the Award Agreement to the extent
that the Option is vested on the date of death (but in no event may the Option be exercised later than the expiration of the term
of such Option as set forth in the Award Agreement), by the Participant’s designated beneficiary, so long as such beneficiary
has been designated before the Participant’s death in a form acceptable to the Administrator. If no such beneficiary has
been designated by the Participant, then such Option may be exercised by the personal representative of the Participant’s
estate or by the person or persons to whom the Option is transferred pursuant to the Participant’s will or in accordance
with the laws of descent and distribution. In the absence of a specified time in the Award Agreement, the Option will remain exercisable
for TWELVE (12) months following Participant’s death. Unless otherwise provided by the Administrator, if at the time of
death Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will
revert to the Plan. If the Option is not so exercised within the time specified herein, the Option will terminate, and the Shares
covered by such Option will revert to the Plan.

 

11. Stock
Awards.

 

(a) Stock
Award Agreement. Each Stock Award Agreement shall contain provisions regarding (i) the number of Shares subject to such Stock
Award or a formula for determining such number; (ii) the purchase price, if any, of the Shares, and the means of payment for the
Shares; (iii) the performance criteria, if any, and level of achievement versus these criteria that shall determine the number
of Shares granted, issued, retained, or vested, as applicable; (iv) such terms and conditions on the grant, issuance, vesting,
or forfeiture of the Shares, as applicable, as may be determined from time to time by the Administrator; (v) restrictions on the
transferability of the Stock Award; and (vi) such further terms and conditions in each case not inconsistent with this Plan as
may be determined from time to time by the Administrator.

 

(b) Restrictions
and Performance Criteria. The grant, issuance, retention, and vesting of each Stock Award may be subject to such performance
criteria and level of achievement versus these criteria as the Administrator shall determine, which criteria may be based on financial
performance, personal performance evaluations, or completion of service by the Awardee.

 

    	 	10	 

    	 

    

 

Notwithstanding
anything to the contrary herein, the performance criteria for any Stock Award that is intended to satisfy the requirements for
“performance-based compensation” under Section 162(m) of the Code shall be established by the Administrator based
on one or more Qualifying Performance Criteria selected by the Administrator and specified in writing.

 

(c) Forfeiture.
Unless otherwise provided for by the Administrator, upon the Awardee’s Termination of Service, the unvested Stock Award
and the Shares subject thereto shall be forfeited, except if the Participant purchased any Shares pursuant to such Stock Award,
the Company shall have a right to repurchase the unvested portion of such Shares at the original price paid by the Participant.

 

(d) Rights
as a Stockholder. Unless otherwise provided by the Administrator, the Participant shall have the rights equivalent to those
of a stockholder and shall be a stockholder only after Shares are issued (as evidenced by the appropriate entry on the books of
the Company or of a duly authorized transfer agent of the Company) to the Participant.

 

12. Other
Provisions Applicable to Awards.

 

(a) Non-Transferability
of Awards. Unless determined otherwise by the Administrator, an Award may not be sold, pledged, assigned, hypothecated, transferred,
or disposed of in any manner other than by will or by the laws of descent and distribution, and may be exercised, during the lifetime
of the Participant, only by the Participant. If the Administrator makes an Award transferable, either at the time of grant or
thereafter, such Award shall contain such additional terms and conditions as the Administrator deems appropriate, and any transferee
shall be bound by such terms upon acceptance of such transfer.

 

(b) Qualifying
Performance Criteria. For purposes of this Plan, the term “Qualifying Performance Criteria” shall mean
any one or more of the following performance criteria, applied to either the Company as a whole or to a business unit, Affiliate,
or business segment, either individually, alternatively, or in any combination, and measured either annually or cumulatively over
a period of years, on an absolute basis or relative to a pre-established target, to previous years’ results or to a designated
comparison group, in each case as specified in the Award by the Committee: (i) cash flow, (ii) earnings (including gross margin,
earnings before interest and taxes, earnings before taxes, and net earnings), (iii) earnings per share, (iv) growth in earnings
or earnings per share, (v) stock price, (vi) return on equity or average stockholders’ equity, (vii) total stockholder return,
(viii) return on capital, (ix) return on assets or net assets, (x) return on investment, (xi) revenue, (xii) income or net income,
(xiii) operating income or net operating income, (xiv) operating profit or net operating profit, (xv) operating margin, (xvi)
return on operating revenue, (xvii) market share, (xviii) contract awards or backlog, (xix) overhead or other expense reduction,
(xx) growth in stockholder value relative to the moving average of the S&P 500 Index or a peer group index, (xxi) credit rating,
(xxii) strategic plan development and implementation, (xxiii) improvement in workforce diversity, (xxiv) EBITDA, and (xxv) any
other similar criteria.

 

(c) Certification.
Before payment of any compensation under an Award intended to qualify as “performance-based compensation” under Section
162(m) of the Code, the Committee shall certify the extent to which any Qualifying Performance Criteria and any other material
terms under such Award have been satisfied (other than in cases where such relate solely to the increase in the value of the Common
Stock).

 

(d) Discretionary
Adjustments Pursuant to Section 162(m). Notwithstanding satisfaction or completion of any Qualifying Performance Criteria,
to the extent specified at the time of grant of an Award to “covered employees” within the meaning of Section 162(m)
of the Code, the number of Shares, Options or other benefits granted, issued, retained, or vested under an Award on account of
satisfaction of such Qualifying Performance Criteria may be reduced by the Committee on the basis of such further considerations
as the Committee in its sole discretion shall determine.

 

    	 	11	 

    	 

    

(e) Section
409A. Notwithstanding anything in the Plan to the contrary, it is the Company’s intent that all Awards granted under
this Plan comply with Section 409A of the Code, and each Award shall be interpreted in a manner consistent with that intention.

 

13. Adjustments
upon Changes in Capitalization, Dissolution, Merger or Asset Sale.

 

(a) Changes
in Capitalization.

 

(i) The
limitations set forth in Section 3, the number and kind of Shares covered by each outstanding Award, and the price per Share (but
not the total price) subject to each outstanding Award shall be proportionally adjusted to prevent dilution or enlargement of
rights under the Plan for any change in the outstanding Common Stock subject to the Plan, or subject to any Award, resulting from
any stock splits, combination or exchange of Shares, consolidation, spin-off or recapitalization of Shares or any capital adjustment
or transaction similar to the foregoing or any distribution to holders of Common Stock other than regular cash dividends.

 

(ii) The
Administrator shall make such adjustment in such manner as it deems equitable and appropriate, subject to compliance with Applicable
Laws. Any determination, substitution or adjustment made by the Administrator under this Section shall be conclusive and binding
on all persons. The conversion of any convertible securities of the Company shall not be treated as a transaction requiring any
adjustment under this Section. Except as expressly stated in this Section 13, no issuance by the Company of shares of stock of
any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall
be made with respect to, the number or price of Shares subject to an Award.

 

(b) Dissolution
or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator shall notify each
Participant as soon as practicable before the effective date of such proposed transaction. The Administrator in its discretion
may provide for an Option to be fully vested and exercisable until ten days before such proposed transaction. In addition, the
Administrator may provide that any restrictions on any Award shall lapse before the proposed transaction, if the proposed dissolution
or liquidation takes place at the time and in the manner contemplated. To the extent it has not been previously exercised, an
Award will terminate immediately before the consummation of such proposed transaction.

 

(c) Change
in Control. If there is a Change in Control of the Company, as determined by the Board or a Committee, the Board or Committee,
or board of directors of any surviving entity or acquiring entity may, in its discretion, (i) provide for the assumption, continuation
or substitution (including an award to acquire substantially the same type of consideration paid to the stockholders in the transaction
in which the Change in Control occurs) of, or adjustment to, all or any part of the Awards; (ii) accelerate the vesting of all
or any part of the Options and SARs and terminate any restrictions on all or any part of the Stock Awards or Cash Awards; (iii)
provide for the cancellation of all or any part of the Awards for a cash payment to the Participants; and (iv) provide for the
cancellation of all or any part of the Awards as of the closing of the Change in Control; so long as, with respect to clause (iv)
the Participants are notified that they must exercise or redeem their Awards (including, at the discretion of the Board or Committee,
any unvested portion of such Award) at or before the closing of the Change in Control.

 

    	 	12	 

    	 

    

14. Amendment
and Termination of the Plan.

 

(a) Amendment
and Termination. The Administrator may amend, alter, or discontinue the Plan or any Award Agreement. Termination of the Plan
shall not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards granted
under the Plan before the date of such termination.

 

(b) Participant
Consent. No amendment, suspension, or termination of the Plan shall materially impair the rights of any Award, unless agreed
otherwise between the Participant and the Administrator

 

(c) Effect
of the Plan on Other Arrangements. Neither the adoption of the Plan by the Board or a Committee nor the submission of the
Plan to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board
or any Committee to adopt such other incentive arrangements as it or they may deem desirable, including the granting of restricted
stock or stock options otherwise than under the Plan, and such arrangements may be either generally applicable or applicable only
in specific cases.

 

15. Designation
of Beneficiary.

 

(a) An
Awardee may file a written designation of a beneficiary who is to receive the Awardee’s rights pursuant to Awardee’s
Award or the Awardee may include his or her Awards in an omnibus beneficiary designation for all benefits under the Plan. To the
extent that Awardee has completed a designation of beneficiary such beneficiary designation shall remain in effect with respect
to any Award hereunder until changed by the Awardee to the extent enforceable under Applicable Law.

 

(b) The
Awardee may change such designation of beneficiary at any time by written notice. If an Awardee dies and no beneficiary is validly
designated under the Plan who is living at the time of such Awardee’s death, the Company shall allow the executor or administrator
of the estate of the Awardee to exercise the Award, or if no such executor or administrator has been appointed (to the knowledge
of the Company), the Company, in its discretion, may allow the spouse or one or more dependents or relatives of the Awardee to
exercise the Award to the extent permissible under Applicable Law.

 

16. No
Right to Awards or to Service. No person shall have any claim or right to be granted an Award and the grant of any Award
shall not be construed as giving an Awardee the right to continue in the service of the Company or its Affiliates.

 

17. Preemptive
Rights. No Shares will be issued under the Plan in violation of any preemptive rights held by any stockholder of the Company.

 

18. Legal
Compliance. No Share will be issued pursuant to an Award under the Plan unless the issuance and delivery of such Share,
as well as the exercise of such Award, if applicable, will comply with Applicable Laws. Issuance of Shares under the Plan shall
be subject to the approval of counsel for the Company with respect to such compliance. Notwithstanding anything in the Plan to
the contrary, the Plan is intended to comply with the requirements of Section 409A of the Code and shall be interpreted in a manner
consistent with that intention.

 

19. Inability
to Obtain Authority. To the extent the Company is unable to or the Administrator deems that it is not feasible to obtain
authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary
to the lawful issuance and sale of any Shares hereunder, the Company shall be relieved of any liability with respect to the failure
to issue or sell such Shares as to which such requisite authority shall not have been obtained.

 

    	 	13	 

    	 

    

 

20. Reservation
of Shares. The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares
as shall be sufficient to satisfy the requirements of the Plan.

 

21. Notice.
Any written notice to the Company required by any provisions of this Plan shall be addressed to the Secretary of the Company and
shall be effective when received.

 

22. Governing
Law; Interpretation of Plan and Awards.

 

(a) This
Plan and all determinations made and actions taken pursuant hereto shall be governed by the substantive laws, but not the choice
of law rules, of the State of Arizona.

 

(b) If
any provision of the Plan or any Award granted under the Plan is declared to be illegal, invalid, or otherwise unenforceable by
a court of competent jurisdiction, such provision shall be reformed, if possible, to the extent necessary to render it legal,
valid, and enforceable, or otherwise deleted, and the remainder of the terms of the Plan and Award shall not be affected except
to the extent necessary to reform or delete such illegal, invalid, or unenforceable provision.

 

(c) The
headings preceding the text of the sections hereof are inserted solely for convenience of reference, and shall not constitute
a part of the Plan, nor shall they affect its meaning, construction or effect.

 

(d) The
terms of the Plan and any Award shall inure to the benefit of and be binding upon the parties hereto and their respective permitted
heirs, beneficiaries, successors, and assigns.

 

(e) All
questions arising under the Plan or under any Award shall be decided by the Administrator in its total and absolute discretion.
If the Participant believes that a decision by the Administrator with respect to such person was arbitrary or capricious, the
Participant may request arbitration with respect to such decision. The review by the arbitrator shall be limited to determining
whether the Administrator’s decision was arbitrary or capricious. This arbitration shall be the sole and exclusive review
permitted of the Administrator’s decision, and the Awardee shall as a condition to the receipt of an Award be deemed to
waive explicitly any right to judicial review.

 

23. Limitation
on Liability. The Company and any Affiliate or Related Corporation that is in existence or hereafter comes into existence
shall not be liable to a Participant, an Employee, an Awardee, or any other persons as to:

 

(a) The
Non-Issuance of Shares. The non-issuance or sale of Shares as to which the Company has been unable to obtain from any regulatory
body having jurisdiction the authority deemed by the Company’s counsel to be necessary to the lawful issuance and sale of
any shares hereunder; and

 

(b) Tax
Consequences. Any tax consequence expected, but not realized, by any Participant, Employee, Awardee or other person due to
the receipt, exercise or settlement of any Option or other Award granted hereunder.

 

24. Unfunded
Plan. Insofar as it provides for Awards, the Plan shall be unfunded. Although bookkeeping accounts may be established
with respect to Awardees who are granted Stock Awards under this Plan, any such accounts will be used merely as a bookkeeping
convenience. The Company shall not be required to segregate any assets that may at any time be represented by Awards, nor shall
this Plan be construed as providing for such segregation, nor shall the Company or the Administrator be deemed a trustee of stock
or cash to be awarded under the Plan. Any liability of the Company to any Participant with respect to an Award shall be based
solely upon any contractual obligations that may be created by the Plan; no such obligation of the Company shall be deemed secured
by any pledge or other encumbrance on any property of the Company. Neither the Company nor the Administrator shall be required
to give any security or bond for the performance of any obligation that may be created by this Plan.

 

Adopted
11.30.15

 

    	 	14

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