Document:

Exhibit 10.2

 

 

AMENDMENT NO.1 TO

 

SHARE EXCHANGE AGREEMENT

 

This Agreement (the “Amendment Agreement”) is the first amendment to the Share Exchange Agreement dated the January 13, 2015 (“Exchange Agreement”), by and among Discovery Gold Corporation, a Nevada corporation (the “Parent”), SMM Manufacturing, Inc., a California corporation (the “Company”), and the Shareholders of the Company. Capitalized terms used but not defined herein shall have the meanings set forth in the Exchange Agreement, as amended or supplemented from time-to-time, including all attachments, schedules and exhibits thereto.

 

In consideration of the mutual covenants and agreements contained herein and in the Exchange Agreement, the parties agree to amend the Exchange Agreement effective immediately as follows:

 

	
 

	
1.

	
Section 7.09 of the Exchange Agreement is hereby amended in its entirety to state:

  

SECTION 7.09 Funding by the Company. Upon execution of this Agreement, the Company shall provide funding in the amount of $25,000 to Parent, of which $20,000 shall be used to pay the auditor for the audit and review of the Parent’s financial statements included in the Parent’s reports that shall have been filed with the SEC on or prior to the Closing and the SEC filings fees; and $5,000 shall be used to pay  the first month of TotalCFO, LLC’s work (the balance of which will still be funded by the Company pursuant to Section 7.02(i)  above) In addition, the Company shall continue funding Parent for up to an additional $25,000 to cover the audit fees and filing fees of Parent through the Closing. These funds shall be distributed to Parent in the amount of $5000 to $10,000 on the first day of each month as requested. In the event that Parent fails to file its delinquent reports with the SEC by the 120th day from the date of execution of this Agreement, subject to a 30-45 day good faith extension, the above referenced funds advanced by the Company to Parent may, at the Company’s option, become a 5%promissory note, due and payable to the Company upon consummation of a financing of $500,000. The Company may, at its discretion, further extend the deadline for the Patent to file its delinquent reports with the SEC if Parent fails to do so within the extended deadline. However, if the Company fails to provide Company Financial Statements by the 120th day from the date of execution of this Agreement, the Company shall forfeit the advanced funds to Parent. In addition, the Company shall pay Parent’s owed Taxes in an amount estimated to be no more than $2,000 in total prior to the Closing. If Company fails to timely provide said financials or to make the payments under this Section 7.09 or Section 7.02, then Parent may, upon five days written notice, terminate this Agreement without any obligation to Company or Shareholders.

	
 

	
2.

	
All other provisions and terms of the Exchange Agreement shall remain the in effect in accordance with their original terms.

 

IN WITNESS WHEREOF, this Amendment Agreement was duly executed on this 21st day of January 2015.

 

The Parent:

DISCOVERY GOLD CORPORATION

By: /s/ Stephen E. Flechner

Name:  Stephen E. Flechner

Title: Chief Executive Officer

The Company:

SMM MANUFACTURING, INC.

By: /s/ Juan Carlos Baselli

Name: Juan Carlos Baselli

Title: Chief Executive Officer

The Shareholders:

/s/ Juan Carlos Baselli

Juan Carlos Baselli

Number of Company Shares: 4500

/s/ Spencer Blua

Spencer Blua

Number of Company Shares: 4500

 

Wrench Advisors

/s/ Timothy Gormley

By: Timothy Gormley

Title: Managing Member

Number of Company Shares: 1000EX-4.3

 CONTINENTAL BANK HOLDINGS, INC. 

AMENDED AND RESTATED 2005 STOCK INCENTIVE PLAN 

ARTICLE I 
 ESTABLISHMENT
OF THE PLAN 
 Continental Bank Holdings, Inc. (the “Corporation”) hereby amends and restates its 2005 Stock Incentive Plan
(as amended and restated, the “Plan”) upon the terms and conditions hereinafter stated, with the amendment and restatement effective as of December 18, 2007. 

ARTICLE II 
 PURPOSE OF
THE PLAN 
 The purpose of this Plan is to aid the Corporation in attracting and retaining capable Employees and Non-Employee Directors
and to improve the growth and profitability of the Corporation and its Subsidiary Companies by providing Employees and Non-Employee Directors with a proprietary interest in the Corporation as an incentive to contribute to the success of the
Corporation and its Subsidiary Companies, and rewarding Employees for outstanding performance and the attainment of targeted goals. All Incentive Stock Options issued under this Plan are intended to comply with the requirements of Section 422
of the Code, and the regulations thereunder, and all provisions hereunder shall be read, interpreted and applied with that purpose in mind. 

ARTICLE III 
 DEFINITIONS

 3.01 “Award” means an Option or Share Award granted pursuant to the terms of this Plan. 

3.02 “Bank” means Continental Bank, the wholly owned subsidiary of the Corporation. 

3.03 “Beneficiary” means the person or persons designated by a Participant to receive any benefits payable under the Plan in
the event of such Participant’s death. Such person or persons shall be designated in writing on forms provided for this purpose by the Committee and may be changed from time to time by similar written notice to the Committee. In the absence of
a written designation, the Beneficiary shall be the Participant’s surviving spouse, if any, or if none, his estate. 
 3.04
“Board” means the Board of Directors of the Corporation. 
 3.05 “Change in Control” shall mean a change in the
ownership of the Corporation or the Bank, a change in the effective control of the Corporation or the Bank or a change in the ownership of a substantial portion of the assets of the Corporation or the Bank, in each case as provided under
Section 409A of the Code and the regulations thereunder. 

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

3.07 “Committee” means a committee of two or more directors appointed by the Board pursuant to Article IV hereof, each of
whom shall be a Non-Employee Director. 
 3.08 “Common Stock” means shares of the common stock, $.10 par value per share,
of the Corporation. 
 3.09 “Disability” means in the case of any Participant that the Participant: (i) is unable to
engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is,
by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not
less than three months under an accident and health plan covering employees of the Corporation or the Bank (or would have received such benefits for at least three months if he had been eligible to participate in such plan). 

3.10 “Effective Date” means the day upon which the Board originally adopted this Plan. 

3.11 “Employee” means any person who is employed by the Corporation or a Subsidiary Company, or is an Officer of the
Corporation or a Subsidiary Company, but not including directors who are not also Officers of or otherwise employed by the Corporation or a Subsidiary Company. 

3.12 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

3.13 “Exercise Price” means the price at which a share of Common Stock may be purchased by an Optionee pursuant to an Option.

 3.14 “Fair Market Value” shall be equal to the fair market value per share of the Corporation’s Common Stock as of
the close of business on the date an Award is granted. For purposes hereof, the Fair Market Value of a share of Common Stock shall be the closing sale price of a share of Common Stock on the date in question (or, if such day is not a trading day in
the U.S. markets, on the nearest preceding trading day), as reported with respect to the principal market (or the composite of the markets, if more than one) or national quotation system in which such shares are then traded, or if no such closing
prices are reported, the mean between the high bid and low asked prices that day on the principal market or national quotation system then in use. Notwithstanding the foregoing, if the Common Stock is not readily tradable on an established
securities market for purposes of Section 409A of the Code, then the Fair Market Value shall be determined by means of a reasonable valuation method that takes into consideration all available information material to the value of the
Corporation and that otherwise satisfies the requirements applicable under Section 409A of the Code and the regulations thereunder. 

 3.15 “Incentive Stock Option” means any Option granted under this Plan which the
Board intends (at the time it is granted) to be an incentive stock option within the meaning of Section 422 of the Code or any successor thereto. 

3.16 “Non-Employee Director” means a member of the Board of the Corporation or Board of Directors of the Bank, including an
advisory director or a director emeritus of the Board of the Corporation and/or the Bank, who is not an Officer or Employee of the Corporation or any Subsidiary Company. 

3.17 “Non-Qualified Option” means any Option granted under this Plan which is not an
Incentive Stock Option. 
 3.18 “Officer” means an Employee whose position in the Corporation or Subsidiary Company is that
of a corporate officer, as determined by the Board. 
 3.19 “Option” means a right granted under this Plan to purchase
Common Stock. 
 3.20 “Optionee” means an Employee or Non-Employee Director or former Employee or Non-Employee Director to
whom an Option is granted under the Plan. 
 3.21 “Participant” means any person who holds any outstanding Award
pursuant to this Plan. 
 3.22 “Performance Share Award” means a Share Award granted to a Recipient pursuant to
Section 9.06 of the Plan. 
 3.23 “Performance Goal” means an objective for the Corporation or any Subsidiary Company
or any unit thereof or any Employee of the foregoing that may be established by the Committee for a Performance Share Award to become vested, earned or exercisable. The establishment of Performance Goals shall be based on one or more of the
following criteria: 
  

	 	(i)	net income, as adjusted for non-recurring items; 

	 	(ii)	cash earnings; 

	 	(iii)	earnings per share; 

	 	(iv)	cash earnings per share; 

	 	(v)	return on average equity; 

	 	(vi)	return on average assets; 

	 	(vii)	assets; 

	 	(viii)	stock price; 

	 	(ix)	total stockholder return; 

	 	(x)	capital; 

	 	(xi)	net interest income; 

	 	(xii)	market share; 

	 	(xiii)	cost control or efficiency ratio; and 

	 	(xiv)	asset growth. 

 3.24 “Recipient” means an Employee who receives a Share Award or Performance
Share Award under the Plan. 
 3.25 “Retirement” means a termination of employment which constitutes a retirement under the
Corporation’s qualified retirement plan maintained by the Corporation or a Subsidiary Corporation, or, if no such plan is applicable, which would constitute retirement under the Corporation’s qualified retirement plan, if such individual
were a participant in that plan. 
 3.26 “Share Award” means a right granted under this Plan to receive a distribution of
shares of Common Stock upon completion of the service and other requirements described in Article IX and includes Performance Share Awards. 

3.27 “Subsidiary Companies” means those subsidiaries of the Corporation, including the Bank, which meet the definition of
“subsidiary corporations” set forth in Section 425(f) of the Code, at the time of granting of the Award in question. 

3.28 “OTS” means the Office of Thrift Supervision, the Bank’s primary federal regulator. 

ARTICLE IV 

ADMINISTRATION OF THE PLAN 

4.01 Duties of the Committee. The Plan shall be administered and interpreted by the Committee, as appointed from time to time by the
Board pursuant to Section 4.02. The Committee shall have the authority to adopt, amend and rescind such rules, regulations and procedures as, in its opinion, may be advisable in the administration of the Plan, including, without limitation,
rules, regulations and procedures which (i) deal with satisfaction of a Participant’s tax withholding obligation pursuant to Section 13.02 hereof, (ii) include arrangements to facilitate the Optionee’s ability to borrow
funds for payment of the exercise or purchase price of an Award, if applicable, from securities brokers and dealers, and (iii) include arrangements which provide for the payment of some or all of such exercise or purchase price by delivery of
previously-owned shares of Common Stock or other property and/or by withholding some of the shares of Common Stock which are being acquired. The interpretation and construction by the Committee of any provisions of the Plan, any rule, regulation or
procedure adopted by it pursuant thereto or of any Award shall be final and binding in the absence of action by the Board. 
 4.02
Appointment and Operation of the Committee. The members of the Committee shall be appointed by, and will serve at the pleasure of, the Board. The Board from time to time may remove members from, or add members to, the Committee, provided the
Committee shall continue to consist of two or more members of the Board, each of whom shall be a Non-Employee Director. The Committee shall act by vote or written consent of a majority of its members. Subject to the express provisions and
limitations of the Plan, the Committee may adopt such rules, regulations and procedures as it deems appropriate for the conduct of its affairs. It may appoint one of its members to be chairman and any person, whether or not a member, to be its
secretary or agent. The Committee shall report its actions and decisions to the Board at appropriate times but in no event less than one time per calendar year. 

 4.03 Revocation for Misconduct. The Board or the Committee may by resolution immediately
revoke, rescind and terminate any Award, or portion thereof, to the extent not yet vested or exercised, that was previously granted or awarded under this Plan to an Employee who is discharged from the employ of the Corporation or a Subsidiary
Company for cause, which, for purposes hereof, shall mean termination because of the Employee’s personal dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated
duties, willful violation of any law, rule, or regulation (other than traffic violations or similar offenses) or final cease-and-desist order. Awards granted to a Non-Employee Director who is removed for cause pursuant to the Corporation’s
Articles of Incorporation and Bylaws or the Bank’s Charter and Bylaws shall terminate as of the effective date of such removal. 

4.04 Limitation on Liability. Neither the members of the Board nor any member of the Committee shall be liable for any action or
determination made in good faith with respect to the Plan, any rule, regulation or procedure adopted by it pursuant thereto or any Awards granted under it. If a member of the Board or the Committee is a party or is threatened to be made a party to
any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of anything done or not done by him in such capacity under or with respect to the Plan, the Corporation shall,
subject to the requirements of applicable laws and regulations, indemnify such member against all liabilities and expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him in
connection with such action, suit or proceeding if he acted in good faith and in a manner he reasonably believed to be in the best interests of the Corporation and its Subsidiary Companies and, with respect to any criminal action or proceeding, had
no reasonable cause to believe his conduct was unlawful. 
 4.05 Compliance with Law and Regulations. All Awards granted hereunder
shall be subject to all applicable federal and state laws, rules and regulations and to such approvals by any government or regulatory agency as may be required. The Corporation shall not be required to issue or deliver any certificates for shares
of Common Stock prior to the completion of any registration or qualification of or obtaining of consents or approvals with respect to such shares under any federal or state law or any rule or regulation of any government body, which the Corporation
shall, in its sole discretion, determine to be necessary or advisable. Moreover, no Option may be exercised if such exercise would be contrary to applicable laws and regulations. 

Notwithstanding any provision of this Plan, within 30 days following the receipt of notice from the OTS, the Bank’s primary federal
regulator, that (i) the Bank has not maintained its minimum capital requirements (as determined by the OTS); and (ii) the OTS is requiring the exercise or forfeiture of vested Awards, any outstanding vested Awards shall be exercised or
forfeited to the extent directed by the OTS. Upon receipt of such notice from the OTS, the Corporation shall promptly notify each Optionee that he must exercise any unexercised Options granted to him prior to the end of the 30-day period or such
earlier period as may be specified by the OTS or forfeit such Options. In case of forfeiture, no Optionee or Recipient shall have any cause of action, of any kind or nature, against the Corporation, the Bank or any of their respective officers or
directors with respect to the forfeiture. In addition, the Corporation shall not be liable to any Optionee or Recipient due to the failure or inability of the Corporation to provide adequate notice to the Optionee or Recipient. 

 4.06 Restrictions on Transfer. The Corporation may place a legend upon any certificate
representing shares acquired pursuant to an Award granted hereunder noting that the transfer of such shares may be restricted by applicable laws and regulations. 

4.07 No Deferral of Compensation Under Section 409A of the Code. All Awards granted under the Plan are designed to not constitute
a deferral of compensation for purposes of Section 409A of the Code. Notwithstanding any other provision in this Plan to the contrary, all of the terms and conditions of any Options granted under this Plan shall be designed to satisfy the
exemption for stock options set forth in the regulations issued under Section 409A of the Code. Both this Plan and the terms of all Options granted hereunder shall be interpreted in a manner that requires compliance with all of the requirements
of the exemption for stock options set forth in the regulations issued under Section 409A of the Code. No Optionee shall be permitted to defer the recognition of income beyond the exercise date of a Non-Qualified Option or beyond the date that
the Common Stock received upon the exercise of an Incentive Stock Option is sold, and no Recipient shall be permitted to defer the recognition of income beyond the date that a Share Award or Performance Share Award shall be deemed earned pursuant to
Article IX of this Plan. 
 ARTICLE V 

ELIGIBILITY 
 Awards may be
granted to such Employees and Non-Employee Directors of the Corporation and its Subsidiary Companies as may be designated from time to time by the Board or the Committee. Awards may not be granted to individuals who are not Employees or Non-Employee
Directors of either the Corporation or its Subsidiary Companies. Non-Employee Directors shall not be eligible to receive Incentive Stock Options pursuant to this Plan. 

ARTICLE VI 
 COMMON STOCK
COVERED BY THE PLAN 
 6.01 Number of Shares. The aggregate number of shares of Common Stock which may be issued pursuant to this
Plan, subject to adjustment as provided in Article X, shall be 627,282, or 12% of the current outstanding shares of Common Stock. None of such shares shall be the subject of more than one Award at any time, but if an Option as to any shares is
surrendered before exercise, or expires or terminates for any reason without having been exercised in full, or for any reason ceases to be exercisable, the number of shares covered thereby shall again become available for grant under the Plan as if
no Awards had been previously granted with respect to such shares. 
 6.02 Source of Shares. The shares of Common Stock issued under
the Plan may be authorized but unissued shares, treasury shares or shares purchased by the Corporation on the open market or from private sources for use under the Plan. 

 ARTICLE VII 

DETERMINATION OF 
 AWARDS,
NUMBER OF SHARES, ETC. 
 7.01 Determination of Awards. The Board or the Committee shall, in its discretion, determine from time
to time which Employees and Non-Employee Directors will be granted Awards under the Plan, the number of shares of Common Stock subject to each Award, whether each Option will be an Incentive Stock Option or a Non-Qualified Stock Option (in the case
of Employees) and the Exercise Price of an Option and whether a Share Award will be a Performance Share Award. In making all such determinations there shall be taken into account the duties, responsibilities and performance of each Optionee or
Recipient, his present and potential contributions to the growth and success of the Corporation, his salary and such other factors deemed relevant to accomplishing the purposes of the Plan. 

7.02 Limitation on Share Awards. Notwithstanding anything contained in this Plan to the contrary, the maximum number of shares of
Common Stock to which Share Awards may be issued under this Plan shall be 209,094 shares, or one-third of the total shares available for issuance under this Plan. None of such shares shall be the subject of more than one Award at any time, but if a
Share Award as to any shares is surrendered before vested, or expires or terminates for any reason without vesting in full, the number of shares covered thereby shall again become available for grant under the Plan as if no Awards had been
previously granted with respect to such shares. 
 7.03 Maximum Awards to any Person. Notwithstanding anything contained in this Plan
to the contrary, the maximum number of shares of Common Stock to which Awards may be granted to any individual in any calendar year shall be 150,000 shares. 

 ARTICLE VIII 

STOCK OPTIONS 
 Each Option
granted hereunder shall be on the following terms and conditions: 
 8.01 Stock Option Agreement. The proper Officers on behalf of
the Corporation and each Optionee shall execute a Stock Option Agreement which shall set forth the total number of shares of Common Stock to which it pertains, the exercise price, whether it is a Non-Qualified Option or an Incentive Stock Option,
and such other terms, conditions, restrictions and privileges as the Board or the Committee in each instance shall deem appropriate, provided they are not inconsistent with the terms, conditions and provisions of this Plan. Each Optionee shall
receive a copy of his executed Stock Option Agreement. Any Option granted with the intention that it will be an Incentive Stock Option but which fails to satisfy a requirement for Incentive Stock Options shall continue to be valid and shall be
treated as a Non-Qualified Option. 
 8.02 Option Exercise Price. 

(a) Incentive Stock Options. The per share price at which the subject Common Stock may be purchased upon exercise of an Incentive Stock
Option shall be no less than one hundred percent (100%) of the Fair Market Value of a share of Common Stock at the time such Incentive Stock Option is granted, except as provided in Section 8.09(b). 

(b) Non-Qualified Options. The per share price at which the subject Common Stock may be
purchased upon exercise of a Non-Qualified Option shall be established by the Committee at the time of grant, but in no event shall be less than the greater of (i) the par value or (ii) one hundred percent (100%) of the Fair Market
Value of a share of Common Stock at the time such Non-Qualified Option is granted. 
 8.03
Vesting and Exercise of Options. 
 (a) General Rules. Incentive Stock Options and Non-Qualified Options shall become vested and
exercisable at the rate, to the extent and subject to such limitations as may be specified by the Board or the Committee; provided, however, that unless otherwise determined by the Board or the Committee, Options granted during the first three years
of the Bank’s operations shall vest in approximately equal percentages each year over a period no shorter than three years. Notwithstanding the foregoing, no vesting shall occur on or after an Employee’s employment or service as a
Non-Employee Director with the Corporation and all Subsidiary Companies is terminated for any reason other than his death, Disability or a Change in Control. In determining the number of shares of Common Stock with respect to which Options are
vested and/or exercisable, fractional shares will be rounded up to the nearest whole number if the fraction is 0.5 or higher, and down if it is less. 

(b) Accelerated Vesting. Unless the Committee or Board shall specifically state otherwise at the time an Option is granted, all Options
granted under this Plan shall become vested and exercisable in full on the date an Optionee terminates his employment with the Corporation or a Subsidiary Company or service as a Non-Employee Director because of his death or Disability. In addition,
all outstanding Options shall become immediately vested and exercisable in full as of the effective date of a Change in Control. 

 8.04 Duration of Options. 

(a) Employee Grants. Except as provided in Sections 8.04(c) and 8.09, each Option or portion thereof granted to an Employee shall be
exercisable at any time on or after it vests and remain exercisable until the earlier of (i) ten (10) years after its date of grant or (ii) three (3) months after the date on which the Employee ceases to be employed by Corporation and
all Subsidiary Companies, or any successor thereto, unless the Board or the Committee in its discretion decides at the time of grant or thereafter to extend such period of exercise upon termination of employment or service to a period not exceeding
five (5) years. 
 (b) Non-Employee Director Grants. Except as provided in Section 8.04(c), each Option or portion thereof
granted to a Non-Employee Director shall be exercisable at any time on or after it vests and becomes exercisable until the earlier of (i) ten (10) years after its date of grant or (ii) three (3) years after the date on which the
Optionee ceases to serve as a Non-Employee Director. 
 (c) Exceptions. Unless the Board or the Committee shall specifically state
otherwise at the time an Option is granted, if an Employee terminates his employment with the Corporation or a Subsidiary Company as a result of Disability or Retirement without having fully exercised his Options, the Employee shall have the right,
during the one (1) year period following his termination due to Disability or Retirement, to exercise such Options. 
 Unless the Board
or the Committee shall specifically state otherwise at the time an Option is granted, if an Employee or Non-Employee Director terminates his employment or service with the Corporation or a Subsidiary Company following a Change in Control without
having fully exercised his Options, the Optionee shall have the right to exercise such Options during the remainder of the original ten (10) year term of the Option from the date of grant. 

If an Optionee dies while in the employ or service of the Corporation or a Subsidiary Company or terminates employment or service with the
Corporation or a Subsidiary Company as a result of Disability or Retirement and dies without having fully exercised his Options, the executors, administrators, legatees or distributees of his estate shall have the right, during the one (1) year
period following his death, to exercise such Options. 
 In no event, however, shall any Option be exercisable more than ten (10) years
(five(5) years for Options subject to Section 8.09(b) hereof) from the date it was granted. 
 8.05 Nonassignability. Options
shall not be transferable by an Optionee except by will or the laws of descent or distribution, and during an Optionee’s lifetime shall be exercisable only by such Optionee or the Optionee’s guardian or legal representative. 

 8.06 Manner of Exercise. Options may be exercised in part or in whole and at one time or
from time to time. The procedures for exercise shall be set forth in the written Stock Option Agreement provided for in Section 8.01 above. 

8.07 Payment for Shares. Payment in full of the purchase price for shares of Common Stock purchased pursuant to the exercise of any
Option shall be made to the Corporation upon exercise of the Option. All shares sold under the Plan shall be fully paid and nonassessable. Payment for shares may be made by the Optionee (i) in cash or by check, (ii) by delivery of a
properly executed exercise notice, together with irrevocable instructions to a broker to sell the shares and then to properly deliver to the Corporation the amount of sale proceeds to pay the exercise price, all in accordance with applicable laws
and regulations, (iii) at the discretion of the Board or the Committee, by delivering shares of Common Stock (including shares acquired pursuant to the exercise of an Option) equal in Fair Market Value to the purchase price of the shares to be
acquired pursuant to the Option, (iv) at the discretion of the Board or the Committee, by withholding some of the shares of Common Stock which are being purchased upon exercise of an Option, or (v) any combination of the foregoing. With
respect to subclause (iii) hereof, the shares of Common Stock delivered to pay the purchase price must have either been (x) purchased in open market transactions or (y) issued by the Corporation or pursuant to a plan thereof, in each
case more than six months prior to the exercise date of the Option. 
 8.08 Voting and Dividend Rights. No Optionee shall have any
voting or dividend rights or other rights of a stockholder in respect of any shares of Common Stock covered by an Option prior to the time that his name is recorded on the Corporation’s stockholder ledger as the holder of record of such shares
acquired pursuant to an exercise of an Option. 
 8.09 Additional Terms Applicable to Incentive Stock Options. All Options issued
under the Plan as Incentive Stock Options will be subject, in addition to the terms detailed in Sections 8.01 to 8.08 above, to those contained in this Section 8.09. 

(a) Dollar Amount Limitation. Notwithstanding any contrary provisions contained elsewhere in this Plan and as long as required by
Section 422 of the Code, the aggregate Fair Market Value, determined as of the time an Incentive Stock Option is granted, of the Common Stock with respect to which Incentive Stock Options are exercisable for the first time by the Optionee
during any calendar year under this Plan, and stock options that satisfy the requirements of Section 422 of the Code under any other stock option plan or plans maintained by the Corporation (or any parent or Subsidiary Company), shall not
exceed $100,000. 

 (b) Limitation on Ten Percent Stockholders. The price at which shares of Common Stock may
be purchased upon exercise of an Incentive Stock Option granted to an individual who, at the time such Incentive Stock Option is granted, owns, directly or indirectly, more than ten percent (10%) of the total combined voting power of all
classes of stock issued to stockholders of the Corporation or any Subsidiary Company, shall be no less than one hundred and ten percent (110%) of the Fair Market Value of a share of the Common Stock of the Corporation at the time of grant, and
such Incentive Stock Option shall by its terms not be exercisable after the earlier of the date determined under Section 8.04 or the expiration of five (5) years from the date such Incentive Stock Option is granted. 

(c) Notice of Disposition; Withholding; Escrow. An Optionee shall immediately notify the Corporation in writing of any sale, transfer,
assignment or other disposition (or action constituting a disqualifying disposition within the meaning of Section 421 of the Code) of any shares of Common Stock acquired through exercise of an Incentive Stock Option, within two (2) years
after the grant of such Incentive Stock Option or within one (1) year after the acquisition of such shares, setting forth the date and manner of disposition, the number of shares disposed of and the price at which such shares were disposed of.
The Corporation shall be entitled to withhold from any compensation or other payments then or thereafter due to the Optionee such amounts as may be necessary to satisfy any withholding requirements of federal or state law or regulation and, further,
to collect from the Optionee any additional amounts which may be required for such purpose. The Committee may, in its discretion, require shares of Common Stock acquired by an Optionee upon exercise of an Incentive Stock Option to be held in an
escrow arrangement for the purpose of enabling compliance with the provisions of this Section 8.09(c). 
 ARTICLE IX 

SHARE AWARDS 
 9.01
Share Award Notice. As promptly as practicable after the granting of a Share Award pursuant to the terms hereof, the Board or the Committee shall notify the Recipient in writing of the grant of the Share Award, the number of shares covered by
the Share Award, whether the Share Award is a Performance Share Award and the terms upon which the shares subject to the Share Award shall be distributed to the Recipient. The Board or the Committee shall maintain records as to all grants of Share
Awards and Performance Share Awards under the Plan. 
 9.02 Earning Plan Shares; Forfeitures. 

(a) General Rules. Subject to the terms hereof, Share Awards granted hereunder shall be earned at the rate and to the extent as may be
specified by the Committee at the date of grant thereof; provided, however, that unless otherwise determined by the Board or the Committee, Share Awards granted during the first three years of the Bank’s operations shall vest in approximately
equal percentages each year over a period no shorter than three years. If the employment of an Employee is terminated before the Share Award has been completely earned for any reason (except as specifically provided in subsections (b) and
(c) below), the Recipient shall forfeit the right to any shares subject to the Share Award which have not theretofore been earned. In the event of a forfeiture of the right to any shares subject to a Share Award, such forfeited shares shall
become available for grant pursuant to Articles VI and VII as if no Share Award had been previously granted with respect to such shares. No fractional shares shall be distributed pursuant to this Plan. 

 (b) Exception for Termination Due to Death or Disability. Notwithstanding the general rule
contained in Section 9.02(a), all shares subject to a Share Award held by a Recipient whose employment with the Corporation or any Subsidiary Company terminates due to death or Disability shall be deemed fully earned as of the Recipient’s
last day of employment with the Corporation or any Subsidiary Company and shall be distributed as soon as practicable thereafter. 
 (c)
Exception for a Change in Control. Notwithstanding the general rule contained in Section 9.02(a), all shares subject to a Share Award held by a Recipient shall be deemed to be fully earned as of the effective date of a Change in Control.

 9.03 Dividends and Voting. A Recipient shall not be entitled to receive any cash dividends declared on the Common Stock with
respect to any unvested Share Award. A Recipient shall not be entitled to any voting rights with respect to any unvested Share Award which has not yet been earned and distributed to him or her pursuant to Section 9.04. 

9.04 Distribution of Plan Shares. 

(a) Timing of Distributions: General Rule. Subject to the provisions of Section 9.06 hereof, shares shall be distributed to the
Recipient or his Beneficiary, as the case may be, as soon as practicable (and in no event more than 30 days) after they have been earned. 

(b) Form of Distributions. All shares shall be distributed in the form of Common Stock. One share of Common Stock shall be given for
each Share Award earned and distributable. 
 (c) Restrictions on Selling of Plan Shares. Share Awards may not be sold, assigned,
pledged or otherwise disposed of prior to the time that they are earned and distributed pursuant to the terms of this Plan. Upon distribution, the Board or the Committee may require the Recipient or his Beneficiary, as the case may be, to agree not
to sell or otherwise dispose of his distributed shares except in accordance with all then applicable federal and state securities laws, and the Board or the Committee may cause a legend to be placed on the stock certificate(s) representing the
distributed shares in order to restrict the transfer of the distributed shares for such period of time or under such circumstances as the Board or the Committee, upon the advice of counsel, may deem appropriate. 

9.05 Rights of Recipients. Notwithstanding anything to the contrary herein, a Participant who receives a Share Award payable in Common
Stock shall have no rights as a stockholder until the Common Stock is issued pursuant to the terms of the Award Agreement. 

 9.06 Performance Awards 

(a) Designation of Performance Share Awards. The Committee may determine to make any Share Award a Performance Share Award by making
such Share Award contingent upon the achievement of a Performance Goal or any combination of Performance Goals. Each Performance Share Award shall be evidenced by a written agreement (“Award Agreement”), which shall set forth the
Performance Goals applicable to the Performance Share Award, the maximum amounts payable and such other terms and conditions as are applicable to the Performance Share Award. 

(b) Timing of Grants. Any Performance Share Award shall be made not later than 90 days after the start of the period for which the
Performance Share Award relates and shall be made prior to the completion of 25% of such period. All determinations regarding the achievement of any Performance Goals will be made by the Committee. The Committee may not increase during a year the
amount of a Performance Share Award that would otherwise be payable upon achievement of the Performance Goals but may reduce or eliminate the payments as provided for in the Award Agreement. 

(c) Restrictions on Grants. Nothing contained in the Plan will be deemed in any way to limit or restrict the Committee from making any
Award or payment to any person under any other plan, arrangement or understanding, whether now existing or hereafter in effect. 
 (d)
Distribution. No Performance Share Award or portion thereof that is subject to the attainment or satisfaction of a condition of a Performance Goal shall be distributed or considered to be earned or vested until the Committee certifies in writing
that the conditions or Performance Goal to which the distribution, earning or vesting of such Award is subject have been achieved. 

9.07. Nontransferable. Share Awards and Performance Share Awards and rights to shares shall not be transferable by a Recipient, and
during the lifetime of the Recipient, shares which are the subject of Share Awards may only be earned by and paid to a Recipient who was notified in writing of a Share Award by the Committee pursuant to Section 9.01. No Recipient or Beneficiary
shall have any right in or claim to any assets of the Plan nor shall the Corporation or any Subsidiary Company be subject to any claim for benefits hereunder. 

ARTICLE X 
 ADJUSTMENTS
FOR CAPITAL CHANGES 
 10.01 General Adjustments. The aggregate number of shares of Common Stock available for issuance under
this Plan, the number of shares to which any outstanding Award relates, the maximum number of shares that can be covered by Awards to each Employee, each Non-Employee Director and all Non-Employee Directors as a group, and the exercise price per
share of Common Stock under any outstanding Option shall be proportionately adjusted for any increase or decrease in the total number of outstanding shares of Common Stock issued subsequent to the Effective Date of this Plan resulting from a split,
subdivision or consolidation of shares or any other capital adjustment, the payment of a stock dividend, or other increase or decrease in such shares effected without receipt or payment of consideration by the Corporation. 

 10.02 Adjustments for Mergers and Other Corporate Transactions. If, upon a merger,
consolidation, reorganization, liquidation, recapitalization or the like of the Corporation, the shares of the Corporation’s Common Stock shall be exchanged for other securities of the Corporation or of another corporation, each recipient of an
Award shall be entitled, subject to the conditions herein stated, to purchase or acquire such number of shares of Common Stock or amount of other securities of the Corporation or such other corporation as were exchangeable for the number of shares
of Common Stock of the Corporation which such Participants would have been entitled to purchase or acquire except for such action, and appropriate adjustments shall be made to the per share exercise price of outstanding Options, provided that in
each case the number of shares or other securities subject to the substituted or assumed stock options and the exercise price thereof shall be determined in a manner that satisfies the requirements of Treasury Regulation §1.424-1 and the regulations issued under Section 409A of the Code so that the substituted or assumed option is not deemed to be a modification of the outstanding Options. Notwithstanding any provision to
the contrary, the term of any Option granted hereunder and the property which the Optionee shall receive upon the exercise or termination thereof shall be subject to and be governed by the provisions regarding the treatment of any such Options set
forth in a definitive agreement with respect to any of the aforementioned transactions entered into by the Corporation to the extent any such Option remains outstanding and unexercised upon consummation of the transactions contemplated by such
definitive agreement. 
 ARTICLE XI 

AMENDMENT AND TERMINATION OF THE PLAN 

The Board may, by resolution, at any time terminate or amend the Plan with respect to any shares of Common Stock as to which Awards have not
been granted, subject to any required stockholder approval or any stockholder approval which the Board may deem to be advisable for any reason, such as for the purpose of obtaining or retaining any statutory or regulatory benefits under tax,
securities or other laws or satisfying any applicable stock exchange listing requirements. The Board may not, without the consent of the holder of an Award, alter or impair any Award previously granted or awarded under this Plan except as
specifically authorized herein. 
 ARTICLE XII 

EMPLOYMENT AND SERVICE RIGHTS 

Neither the Plan nor the grant of any Awards hereunder nor any action taken by the Committee or the Board in connection with the Plan shall
create any right on the part of any Employee or Non-Employee Director to continue in such capacity. 

 ARTICLE XIII 

WITHHOLDING 
 13.01 Tax
Withholding. The Corporation may withhold from any cash payment made under this Plan sufficient amounts to cover any applicable withholding and employment taxes, and if the amount of such cash payment is insufficient, the Corporation may require
the Participant to pay to the Corporation the amount required to be withheld as a condition to delivering the shares acquired pursuant to an Award. The Corporation also may withhold or collect amounts with respect to a disqualifying disposition of
shares of Common Stock acquired pursuant to exercise of an Incentive Stock Option, as provided in Section 8.09(c). 
 13.02 Methods
of Tax Withholding. The Board or the Committee is authorized to adopt rules, regulations or procedures which provide for the satisfaction of a Participant’s tax withholding obligation by the retention of shares of Common Stock to which the
Employee would otherwise be entitled pursuant to an Award and/or by the Participant’s delivery of previously-owned shares of Common Stock or other property. 

ARTICLE XIV 
 EFFECTIVE
DATE OF THE PLAN; TERM 
 14.01 Effective Date of the Plan. This Plan as originally adopted became effective on the Effective
Date, and Awards may be granted hereunder prior to the termination of the Plan. 
 14.02 Term of the Plan. Unless sooner terminated,
this Plan shall remain in effect for a period of ten (10) years ending on the tenth anniversary of the Effective Date. Termination of the Plan shall not affect any Awards previously granted and such Awards shall remain valid and in effect until
they have been fully exercised or earned, are surrendered or by their terms expire or are forfeited. 
 ARTICLE XV 

STOCKHOLDER APPROVAL 
 The
stockholders of the Corporation approved this Plan as originally adopted in November 2005. The Corporate shall submit this Plan as amended and restated to stockholders for approval at a meeting of stockholders of the Corporation held within twelve
(12) months following the amendment and restatement on December 18, 2007 in order to meet the requirements of Section 422 of the Code and regulations thereunder for the additional shares of Common Stock authorized for issuance
pursuant to the Plan. 

 ARTICLE XVI 

MISCELLANEOUS 
 16.01
Governing Law. To the extent not governed by federal law, this Plan shall be construed under the laws of the Commonwealth of Pennsylvania. 

16.02 Pronouns. Wherever appropriate, the masculine pronoun shall include the feminine pronoun, and the singular shall include the
plural. 
 This Plan has been amended and restated by action of the Board of Directors of the Corporation on December 18, 2007.

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