Document:

Purchase and Assumption Agreement

 Exhibit 10.1 
 PURCHASE AND ASSUMPTION AGREEMENT 
 This PURCHASE AND ASSUMPTION AGREEMENT (this
“Agreement”), dated as of July 13, 2007, is entered into by and between BankFirst, a South Dakota banking corporation (“Seller”) and The Bancorp, Inc., a Delaware corporation (“Buyer”). 

WHEREAS, Seller operates “Stored Value Solutions,” which includes a Visa MasterCard and Discover (each, an “Association”)
stored value card sponsorship business, an automated teller machine (ATM) sponsorship business, and a credit and debit card merchant processing sponsorship business, as a division of Seller (the “Business”); and 
 WHEREAS, Seller desires to sell and Buyer desires to purchase substantially all of Seller’s rights in the Business, as well as all of the assets
used by Seller in the Business, upon the terms and conditions hereinafter set forth. 
 NOW, THEREFORE, in consideration of the agreements
herein, the parties hereby agree as follows: 
 ARTICLE I 
 Purchase and Sale of Assets; 
 Assumption of Certain Liabilities 
 1.1 The Assets. On the Closing Date (as defined in Section 2.2), except as provided in Section 1.2, Seller hereby sells
and assigns to Buyer, and Buyer hereby purchases from Seller, for the Purchase Price hereinafter specified, Seller’s entire right, title and interest in the following assets (collectively, the “Assets”): 
 (a) all rights of Seller under the contracts, agreements, leases of real and personal property, commitments and other arrangements,
whether oral or written (each, a “Contract”) set forth on Schedule 1.1(a) (all of the foregoing being, collectively, the “Assumed Contracts”); 
 (b) all rights of Seller in guaranties, reserve accounts, security deposits and other collateral posted by any person, including any
program manager, in connection with the Business; 
 (c) all rights of Seller in funding accounts, settlement accounts and
customer accounts related to the Business, including negative balances and advances to any customer; 
 (d) all rights of
Seller in the Association BINs and ICAs listed on Schedule 1.1(d); 
 (e) to the extent owned by Seller, all inventory
related to the Business, including, to the extent permissible by Association rules, cards and card agreements; 

 (f) all equipment, furniture, computer hardware and software, leasehold improvements,
fixtures and other tangible personal property owned by Seller in connection with the Business as set forth on Schedule 1.1(f); 
 (g) all of Seller’s other intangible rights and property associated with the Business, including but not limited to, all trademarks, patents, copyrights, trade names (other than the names “BankFirst”
and “Marshall”), other Intellectual Property used in or related to the Business, going concern value, goodwill, telephone numbers, facsimile numbers, all as set forth on Schedule 1.1(g); 
 (h) all books, records and other documents and information related to the Business, including all customer, prospect, program manager,
broker and distributor lists, sales literature, price lists, quotes and bids, promotional programs, product catalogs and brochures, inventory records, product data, purchase orders and invoices, sales orders and sales order log books, commission
records, customer information, personnel records (to the extent permitted by law) and correspondence and all personnel records and other records of Seller related to its employees to the extent their transfer is permitted by law; 
 (i) all pre-paid expenses and deposits made by Seller related to the Business; 
 (j) all governmental licenses, permits, approvals and other authorizations held by the Seller in connection with the Business
(collectively, the “Licenses”), to the extent their transfer is permitted by law; and 
 (k) all right, title
and interest of Seller in and to all warranties and guarantees given to, assigned to or benefiting Seller regarding the acquisition, construction, design, use, operation, management or maintenance of any of the Assets, to the extent such assignment
is not prohibited by the terms of such warranty or guarantee. 
 Anything to the contrary notwithstanding, neither the term
“Assets” nor any of the defined asset groups nominally comprising “Assets” shall include any asset specifically referred to in Section 1.2; provided, however, that for purposes of this Agreement, the term “Assets”
shall mean all of the goodwill, assets, properties and rights of every nature, kind and description, whether tangible or intangible, real, personal or mixed, wherever located and whether or not carried or reflected on the books and records of the
Seller, which are used in, or which were acquired in connection with, the operation of the Business, excepting only the Excluded Assets and any of the above which relate exclusively to the Excluded Assets. 
 1.2 Excluded Assets. All other assets of Seller shall be excluded from purchase and sale hereunder and shall be retained by Seller (collectively,
the “Excluded Assets”), including the following: 
 (a) the bank charter, minute books, stock records,
qualifications to do business as a foreign organization, taxpayer and other identification numbers, tax returns and similar records and documents of Seller and, to the extent their transfer is prohibited by law, personnel records; 
  

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 (b) all agreements related to the governance, shareholders and/or control of Seller;

 (c) all income tax refunds and income tax credits and all other tax refunds and tax credits with respect to taxes paid by
Seller; 
 (d) Licenses that are not transferable or are transferable but only with the consent of the government or a
governmental agency and with respect to which the requisite consent is not received at or prior to the Closing; 
 (e) all
Employee Benefit Plans and assets held therein and any rights and claims of Seller against any medical policy carrier for its failure to provide continuation coverage under COBRA with respect to employees and former employees of Seller and their
beneficiaries and dependents; 
 (f) all rights under policies of insurance; 
 (g) each warranty or guarantee by any manufacturer, supplier or other transferor of any of the Assets, to the extent assignment thereof is
prohibited by the terms of such warranty or guarantee; 
 (h) all investments and bank accounts of Seller; 
 (i) all accounts receivable for goods sold or services rendered by Seller prior to the Closing Date; 
 (j) the “ITI Platform” software and licenses and all computer hardware on which the same is installed; and 
 (k) the assets and properties listed in Schedule 1.2(k) hereto. 
 1.3 Assumed Liabilities. On the terms and subject to the conditions of this Agreement, Buyer agrees to assume on the Closing Date and to pay and
discharge when due the following agreements, obligations and liabilities of Seller (collectively, the “Assumed Liabilities”) and no others: 
 (a) all liabilities, obligations and commitments of Seller arising on and after the Closing Date under the executory portion of any of the
Assumed Contracts or under the Licenses (to the extent constituting Assets), but not including any liability or obligations for breach or violation thereof to the extent occurring at or prior to the Closing; 
 (b) all of Seller’s obligations relating to all demand, savings and certificate of deposit accounts attributable to the Business
accruing or arising on and after the Closing Date and all interest payable with respect to such deposit accounts as identified and listed in Schedule 1.3(b) (the “Deposit Accounts”); and 
  

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 (c) all other liabilities, obligations and commitments of Seller described on Schedule
l.3(c) hereto. 
 1.4 Excluded Liabilities. Buyer shall have no responsibility for any obligations or liabilities of Seller of any
nature whatsoever which are not included in the Assumed Liabilities, whether now existing or hereafter arising, and whether known or unknown (collectively, the “Excluded Liabilities”), including: 
 (a) any liability for taxes of Seller, whether or not attributable to the Business or Assets, including all income, sales and use taxes,
employment and payroll taxes (including withholding) and property taxes; 
 (b) all accrued and unpaid accounts payable of
Seller and all accrued expenses of Seller, each as of the Closing Date; 
 (c) all accrued liabilities, obligations or
commitments of Seller to employees and former employees who performed services to the Seller prior to the Closing Date; provided, however, that Buyer will honor and allow up to two weeks of accrued but unused (prior to Closing) vacation time for any
employees of Seller hired by Buyer and provided further that Buyer will assume the obligation of paying employee retention bonuses for employees of the Business, with 50% of such bonuses paid within 10 days of Closing and the remaining 50% paid 180
days following Closing, as set forth on Schedule l.4(c) hereto; 
 (d) any liability, obligation or commitment of
Seller for costs and expenses in connection with the negotiation and execution of this Agreement or any other document entered into by Seller after the date hereof or the consummation of the transactions contemplated hereby or thereby; 

(e) any claims asserted by employees or former employees of Seller, or by dependents of such persons, for acts or omissions occurring
prior to the Closing Date; 
 (f) any liability of Seller under any Contract that is not an Assumed Contract; 
 (g) any liability of Seller to any related person of Seller; 
 (h) any obligation or liability relating to any actual or alleged violation or liability arising under environmental laws occurring prior
to or present on the Closing Date, regardless of whether such obligations or liabilities relate to Seller’s ownership or operation of the Assets, to any predecessor, owner, tenant, occupant or user of the Assets, or to any other party unrelated
to the Assets; 
 (i) all liabilities and obligations of Seller resulting from a breach or violation by Seller prior to the
Closing Date of any Assumed Contract or License; 
 (j) any action, suit or proceeding pending as of the Closing Date, or any
subsequent claim, action, suit or proceeding arising out of or relating to the conduct of the Business by Seller on or prior to the Closing Date; 
  

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 (k) except as otherwise provided in Section 1.3, all liabilities and
obligations and commitments of Seller relating to the ownership, operation or condition of the Business or the Assets prior to the Closing Date and all liabilities and obligations and commitments arising out of or relating to the Excluded Assets.

 1.5 Assignment and Assumption of Contracts. Notwithstanding any other provision of this Agreement, if (a) an Assumed Contract
not listed on Schedule 1.1(a) is not permitted to be sold, assigned, transferred or conveyed without the approval, consent or waiver of another party thereto, and (b) all necessary approvals, consents and waivers of all parties to such
Assumed Contract have not been obtained at or prior to the Closing (each, an “Assigned Item”), then Buyer shall not be obligated to assume such Assigned Item and such Assigned Item shall not be included in the Assets transferred to
Buyer on the Closing Date; provided, that if Buyer realizes a benefit from any such Assigned Item, then Buyer will assume the liabilities, obligations and commitments of Seller under such Assigned Item (but not such Assigned Item itself), in
which event the claims, rights and benefits of Seller arising under such Assigned Item or resulting therefrom (but not such Assigned Item itself) shall (to the extent permitted under such Assigned Item absent such approval, consent or waiver) be
included in the Assets and transferred to Buyer hereunder. Seller shall, following the Closing, use reasonable efforts to obtain the necessary approvals, consents and waivers with respect to such Assigned Item. Seller shall promptly transfer such
Assigned Item to the Buyer if such approvals, consents and waivers are obtained and, upon such transfer, Buyer shall assume all liabilities, obligations and commitments of Seller arising under such Assigned Item, except liabilities and obligations
resulting from a breach thereunder by Seller to the extent occurring prior to the date such Assigned Item has been transferred to Buyer. 
 ARTICLE II 
 Purchase and Sale of Assets 
 2.1 Purchase Price. The consideration for the Assets, in addition to the assumption of the Assumed Liabilities (collectively, the
“Purchase Price”), shall be (i) $12,112,000 of shares of Buyer’s common stock, valued (the “Market Value”) based on the average closing price of such stock on NASDAQ for the 30 trading days immediately
preceding the Closing Date (the “Common Stock”); provided, however, that no fractional units of Common Stock shall be issued pursuant to this Section 2.1, and (ii) an aggregate amount of $48,448,000 in U.S. dollars
(collectively with the Common Stock, the “Closing Amount”), which shall be delivered as follows: 
 (a) Buyer
shall pay to the Seller upon execution of this Agreement, the sum of $1,000,000 (the “Earnest Money Deposit”). The Earnest Money Deposit shall be paid into an escrow agent to be agreed upon at or prior to Closing by Seller and Buyer
(the “Escrow Agent”). Buyer agrees to diligently and in good faith use its best efforts to obtain the approval of the Federal Deposit Insurance Corporation for the transactions contemplated by this Agreement as soon as reasonably
possible. In the event that Buyer does not close after all conditions to Buyer’s obligation to close have been satisfied or waived, the Escrow Agent shall pay the Earnest Money Deposit plus any interest accrued thereon to Seller.
Notwithstanding the previous sentence, if any of the Seller’s representations and warranties made under this Agreement are untrue or incorrect in any 

  

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material respect, or Seller breaches in any material respect any covenant hereunder, or Seller fails to obtain any necessary consents to the transactions
contemplated by this Agreement or Buyer terminates this Agreement pursuant to Section 8.1(b), or Seller fails to close (despite Buyer being ready, willing and able to close), the Escrow Agent will promptly return the entire Earnest Money
Deposit plus any interest accrued thereon to Buyer. Upon the Closing of the transaction contemplated by this Agreement, the Earnest Money Deposit and accrued interest thereon shall be applied to the Closing Amount. All tax liability associated with
interest accrued on the Earnest Money Deposit shall be paid by Buyer. 
 (b) At the Closing (i) Buyer will deliver
(A) to Seller, certificate(s) representing the Common Stock and (B) to Seller, a registration rights agreement in the form attached hereto as Exhibit C (the “Registration Rights Agreement”), and (ii) Seller
will transmit (A) to Buyer, in immediately available funds, an amount equal to the sum of the aggregate principal and accrued and unpaid interest amount of the Deposit Accounts less (y) the sum of the Closing Amount after application of
the Earnest Money Deposit and accrued interest thereon and the Market Value of any fractional units of Common Stock otherwise payable to Seller but for the proviso in Section 2.1(i) and (z) $2,000,000 (the “Escrow Amount”)
and (B) to the Escrow Agent, the Escrow Amount to be held as security for the indemnification obligations of Seller, until released pursuant to Section 7.5(b) hereof. 
 2.2 The Closing. The consummation of the transactions herein contemplated (the “Closing”) shall take place on the last business
day of the month in which all the conditions to the obligations of the parties to consummate the transactions contemplated hereby have been satisfied or waived, or such earlier time or date as the Buyer and Seller agree at the offices of
Lindquist & Vennum P.L.L.P., 4200 IDS Center, 80 South Eighth Street, Minneapolis, Minnesota 55402, at 10:00 a.m. (the “Closing Date”). 
 2.3 Allocation of Purchase Price. The Purchase Price shall be allocated by the parties as Buyer shall reasonably determine in accordance with Section 1060 of the federal Internal Revenue Code and the
regulations thereunder. Seller and the Buyer shall prepare and file on a timely basis federal and state tax forms consistent with such allocation. If any tax authority challenges the allocations, the party receiving notice of such challenge shall
give the other prompt written notice thereof and the parties shall cooperate in all commercially reasonable respects in order to preserve the effectiveness of such allocations. 
 ARTICLE III 
 Presentations and Warranties of Seller 
 Except as disclosed in the attached Schedules (which shall be deemed to modify all representations and warranties herein), Seller represents and warrants
to Buyer as follows: 
 3.1 Organization. Seller is a state bank duly organized, validly existing and in good standing under the laws
of the state of South Dakota and has all requisite corporate power to own its properties and to carryon the Business as now being conducted. 
  

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 3.2 Authorization of Transaction. Seller has full power and authority to enter into and perform
this Agreement. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all requisite action of Seller’s board of directors and shareholder and require no further
approvals or authorizations. This Agreement has been executed and delivered by a duly authorized officer of Seller and is a valid and binding agreement of Seller, enforceable against Seller in accordance with its terms. 
 3.3 No Violation. Neither the execution and delivery of this Agreement nor the consummation by Seller of the transactions herein contemplated,
will conflict with or result in a breach of any of the terms, conditions or provisions of (a) the articles of incorporation or bylaws of Seller, (b) any statute or administrative regulation, or of any order, writ, injunction, judgment or
decree of any court or any governmental authority or of any arbitration award applicable to the Seller or (c) any material contract, lease, license, franchise, permit, indenture, mortgage, deed of trust, note agreement or other agreement or
instrument to which Seller is a party or is bound. Seller is not required to give any notice to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency in order for the parties to consummate
the transactions contemplated by this Agreement. 
 3.4 Litigation. Other than set forth on Schedule 3.4, there are no claims,
actions, suits, inquiries, investigations or proceedings pending or, to the knowledge of Seller, threatened against or relating to the Assets, the Assumed Liabilities, the Business or the transactions contemplated by this Agreement before any court
or governmental body, which could affect the Assets or the Business, or the transfer by Seller to Buyer of title thereto. 
 3.5 Title and
Sufficiency of Assets. Except as set forth in Schedule 3.5, Seller has good and marketable title to, or a valid leasehold interest in, the Assets, free and clear of all Liens. “Lien” means any mortgage, pledge, lien,
encumbrance, charge or security interest. The Assets and the Excluded Assets constitute all of the assets, tangible and intangible, of any nature whatsoever, necessary to operate the Business in the manner presently operated by Seller, and all such
Assets are in sufficient condition for their intended use. 
 3.6 Deposit Accounts. The Deposit Accounts are accurately identified and
listed on Schedule 3.6 attached hereto and are in all material respects genuine and enforceable obligations of Seller and have been acquired and maintained in compliance with all applicable state and federal laws, regulations and rules, and
were acquired in the ordinary course of Seller’s business. 
 3.7 Tax Matters. Except as set forth in Schedule 3.7: 

(a) Seller has filed, or has had filed on its behalf, all tax returns required to have been filed with respect to the Business or the
Assets and has directly, or has had on its behalf, paid, withheld, or made provision for the payment of, all taxes shown thereon as owing. 
 (b) There have been no waivers or extensions of any statute of limitations filed with any governmental authority responsible for assessing or collecting taxes in respect of any tax return of, or which includes,
Seller, and no agreements to an extension of time with respect to a tax assessment or deficiency. 
  

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 (c) There is no material action, suit, proceeding, investigation, audit, claim or
assessment pending with respect to any liability for tax of the Seller, or with respect to any tax return of the Seller. 
 (d) Taxes which Seller is required by law to withhold or collect have been withheld or collected and have been paid over to the proper governmental entity or are properly held by Seller for such payment for periods prior to the Closing
Date. All withholdings, collections and other payments payable in connection therewith for periods prior to the Closing Date are the responsibility of Seller. 
 (e) Schedule 3.7(e) contains a list of states, territories and jurisdictions (whether foreign or domestic) in which Seller has
filed tax returns relating to taxes of the Business. 
 (f) There are no Liens for taxes on the Assets. 
 (g) There are no tax sharing or similar arrangements that include Seller or that in any way relates to the Business or the Assets, and
Seller is not liable for the taxes of any other person or entity as a transferee, successor, by contract or otherwise 
 3.8 Real Estate
Lease. The Ground Lease Agreement dated December 1, 2006, between Seller and Heineman Family Venture, LLC (as amended, the “Ground Lease”) and the Building Lease of even date therewith between Seller and Marshall BankFirst
Corporation (as amended, the “Building Lease” and, collectively with the Ground Lease, the “Leases”) (a) are legal, binding, enforceable and in full force and effect; (b) neither Seller nor either of the
landlord is in default or breach thereunder; (c) no security deposit or portion thereof deposited with respect to such Lease has been applied in respect of a breach or default under such Lease that has not been redeposited in full; and
(d) Seller does not owe any brokerage or commission fees with respect to such Lease. There are no claims, governmental investigations, litigation or proceedings which are pending against Seller or, to the knowledge of Seller, threatened against
Seller or pending or threatened against either of the landlords, which could reasonably be expected to affect the continued use of the Leased real property in substantially the same manner as presently used by Seller. 
 3.9 Intellectual Property. 
 (a) Schedule 3.9 lists, in connection with the Business and the Assets, (i) the federal registration number and the date of registration of patents and trademarks and of other marks, trade names, brand names, domain names, URLs
or other trade rights currently owned or used by Seller, (ii) all of the copyrights currently owned or used by the Seller, (iii) all applications by the Seller for any of the foregoing, and (iv) all other marks, trade names, brand
names, other trade rights (collectively, the “Intellectual Property”). Schedule 3.9 also contains a true and complete list of all material agreements between each employee of Seller and Seller relating to confidential
information of Seller relating to the Business, including patents, trademarks, service marks, trade names, and copyrights, and the ownership of any intellectual property developed by such employee under the scope of his or her employment. No other
patents, trademarks, trade names, service marks or copyrights are reasonably necessary for the conduct of the Business in substantially the same manner as presently operated by Seller. 
  

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 (b) Seller owns or has the right to use pursuant to valid licenses, sublicenses,
agreements or permissions all items of Intellectual Property necessary for the operation of the Business as presently conducted. 
 (c) Except as set forth in Schedule 3.9(c), Seller has not received any written notice alleging that Seller, in the operation of the Business, has infringed upon any intellectual property rights of third parties. To Seller’s knowledge,
no third party has infringed upon any Intellectual Property rights of Seller that are material to the Business. 
 (d) With
respect to each such item of Intellectual Property identified on Schedule 3.9: (i) Seller possesses all right, title and interest in and to the item, free and clear of any Lien and (ii) no proceeding is pending or, to Seller’s
knowledge, threatened which challenges the legality, validity, enforceability, use or ownership of the item. 
 (e)
Schedule 3.9 identifies each material item of Intellectual Property that any third party owns and that the Seller uses in the Business pursuant to a license, sublicense, agreement or with permission. Seller has made available to Buyer copies
of all such licenses, sublicenses, agreements and permissions, each as amended to date. With respect to each such item identified on Schedule 3.9: (i) the license, sublicense, agreement or permission covering the item is in full force
and effect; (ii) Seller has not received written notice regarding any actual or alleged material breach, violation or failure to comply with any such license, sublicense, agreement or permission; (iii) Seller has no knowledge of any
material breach, violation or failure to comply under any such license, sublicense, agreement or permission by the other party or parties thereto; (iv) to Seller’s knowledge, no proceeding is pending or threatened which challenges the
legality, validity or enforceability of the underlying item of Intellectual Property; and (v) Seller has not granted any sublicense or similar right with respect to the license, sublicense, agreement or permission. 
 3.10 Tangible Assets. Seller owns or leases all machinery, equipment, and other tangible assets necessary for the conduct of the Business as
presently conducted. Each such tangible asset has been maintained in accordance with normal industry practice, is in good operating condition and repair (subject to normal wear and tear), and is suitable for the purposes for which it is presently
used and which it is proposed to be used. 
 3.11 Contracts. Set forth on Schedule 1.1(a) is an accurate and complete list of the
Seller’s material contracts relating to the Business (“Material Contracts”), which Schedule 1.1(a) delineates as the Assumed Contracts. Seller has not received notice of any oral or written claim of breach of any Material
Contract, nor is Seller aware of any circumstances that, with the passing of time and/or giving of notice, would constitute a breach of any Material Agreement. Seller has also made available to Buyer accurate and complete copies of: (a) each
Contract relating to the Business that involves a sharing of profits, losses, costs or liabilities by Seller with any other Person; (b) each Contract relating to the Business that contains covenants that materially restricts the Business or
that would limit the freedom of Buyer to engage in the 

  

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Business; (c) each Material Contract relating to the Business that provides for payments to or by any person based on sales, purchases or profits, other
than direct payments for goods; (d) any Contract for capital expenditures in excess of $50,000; (e) each written warranty, guaranty and/or other similar undertaking with respect to contractual performance extended by Seller with respect to
the Business other than in the ordinary course of the Business consistent with past practices; and (f) each amendment, supplement and modification (whether oral or written) in respect of any of the foregoing. Furthermore, to the knowledge of
Seller, each Assumed Contract is in full force and effect and is valid and enforceable in accordance with its terms. Except as listed on Schedule 3.18, no Assumed Contract requires the consent or approval of any third party for transfer to
Buyer. The Assumed Contracts are adequate for the continued conduct of the Business as presently conducted. 
 3.12 Powers of
Attorney. There are no outstanding powers of attorney executed on behalf of Seller. 
 3.13 Environmental Matters. Except as set
forth on Schedule 3.13, (a) the operation of the Business is in full compliance with all applicable environmental laws; (b) all environmentally hazardous substances have been and are being used by Seller in compliance with
applicable environmental laws, and (c) to the knowledge of the Seller, there is not on, in or under the premises upon which the Business is operated any underground storage tanks, asbestos-containing materials, polychlorinated biphenyls or
radioactive substances. 
 3.14 Employee Benefit Plans. Each employee benefit plan (the “Benefit Plans”) of Seller
has been maintained and administered in all material respects in compliance with its terms and with the requirements prescribed by any and all statutes, orders, rules and regulations (foreign and domestic), including (without limitation) ERISA and
the Internal Revenue Code, which are applicable to such Benefit Plans. Each Benefit Plan with access to individually identifiable health information has fully complied with the HIPAA privacy rules. To the Seller’s knowledge, there are no
pending or threatened actions, claims or proceedings against any Benefit Plan or its assets, plan sponsor, plan administrator or fiduciaries with respect to the operation of such Benefit Plan (other than routine benefit claims). To the Seller’s
knowledge, there are no audits, inquiries or proceedings pending or threatened by the IRS, Department of Labor or other governmental entity with respect to any Benefit Plan. Seller has no obligations, under funded commitments, compensation or
bonuses due, or other amounts owing to any of its employees or former employees pursuant to any of Seller’s employee benefit plans. All obligations of any nature under any Benefit Plan will constitute Excluded Liabilities, and Buyer shall have
no obligation or duty with respect thereto. 
 3.15 Projections. Any material forecasts, projections or proformas provided by Seller
to Buyer with respect to the Business are based upon reasonable assumptions consistently applied, which assumptions have been disclosed to Buyer, and Seller has no knowledge of any existing or pending circumstances that would have the effect of
materially changing such assumptions. 
 3.16 Employees and Employee Relations. Schedule 3.16 contains a true and complete list
of (i) the names, titles and compensation of all current officers and employees of Seller who devote substantially all of their time to the Business and whose compensation from Seller 

  

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exceeded $50,000 during the most recent calendar year of Seller and (ii) all written and oral (with a short description thereof) arrangements or
contracts relating to employment, compensation, bonuses, severance, pension and other related issues and collective bargaining agreements to which Seller is a party or by which Seller is bound relating to the Business. All these contracts and
arrangements are in full force and effect, and neither Seller nor, to Seller’s knowledge, any other person is in default under any such contract or arrangement. There have been no claims of default and there are no facts or conditions which,
with the passage of time or upon notice, will result in a default by Seller, or to the knowledge of Seller, any other person, under these contracts or arrangements. There is no pending or, to Seller’s knowledge, threatened labor dispute,
strike, or work stoppage affecting Seller or the Business. 
 3.17 Compliance with Laws. Except as set forth in that certain
Confidential Memorandum, dated May 21, 2007, prepared by Seller’s Chief Risk Officer (“Memorandum”). Seller, the Business and the Assets have complied with all, and are not in violation of any, applicable laws, permits and orders
affecting Seller’s properties, the operation of the Business, or the Assets, except for any such non-compliance or violation which would not have a Material Adverse Effect (as defined in Section 3.25). 
 3.18 Consents. No consent, approval, license, permit, order or authorization of, or registration, declaration or filing with, any court,
administrative agency or commission or other governmental authority or instrumentality, domestic or foreign, or any other person is required to be obtained or made by or with respect to Seller in connection with (i) the execution and delivery
of this Agreement or the consummation of the transactions contemplated hereby, or (ii) the conduct by Seller of its business following the Closing as conducted on the date hereof other than (A) the consents and approvals disclosed on
Schedule 3.18, (B) those that may be required solely by reason of Buyer’s (as opposed to any other third party’s) participation in the transactions contemplated hereby, and (C) such other consents or approvals the failure
of which to obtain would not have a Material Adverse Effect. 
 3.19 Conduct of Business. Except as set forth on Schedule 3.19,
since March 31, 2007: 
 (a) the Business has been conducted only in the ordinary course of business; 
 (b) except for items purchased, sold or otherwise disposed of in the ordinary course of the business, Seller has not purchased, sold,
leased, mortgaged, pledged or otherwise acquired or disposed of any properties or assets in connection with the Business; 
 (c) Seller has not entered into, changed, modified, cancelled or terminated any agreement or contract involving the payment by or to Seller of more than $100,000 in any twelve-month period to which Buyer has objected to in good faith and
provided to Seller in writing the reasons for such objection (Seller shall notify Buyer of all such agreements or contracts and such agreements and contracts shall be deemed approved by Buyer unless objected to in writing within five
(5) business days of receipt of such notice); provided, however, that in providing its reasons for an objection Buyer shall not be required to provide any information that is material non-public information, or that Buyer, by law or agreement,
is not permitted to disclose; 
  

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 (d) there has been no material adverse change in or with respect to the condition
(financial or otherwise), operations, business, prospects, rights, properties, assets or liabilities of Seller with respect to the Business; 
 (e) Seller has not changed any accounting methods or practices; and 
 (f) Seller has not
agreed to take any of the actions described in paragraphs (b), (c) or (e) above and Seller has not taken any other action proscribed by Section 5.8. 
 3.20 Books and Records. The books of account and other financial records of Seller related to the Business, all of which have been made available to Buyer, are complete and correct and represent actual, bona
fide transactions and have been maintained in accordance with sound business practices. Except as set forth in the Memorandum, Seller maintains an adequate system of internal controls with respect to the Business and has disclosed to Buyer in
writing all significant deficiencies and material weaknesses identified in or by such system since January 1, 2004. 
 3.21
Insurance. Schedule 3.21 sets forth a list of all policies of liability, theft, fidelity, life, fire, product liability, workmen’s compensation, health and any other insurance maintained by, or on behalf of, the Seller with
respect to the Business (specifying the insurer, amount of coverage and type of insurance). Each such insurance policy identified therein is and shall remain in full force and effect with respect to the Business until, and on and as of, the Closing
Date. Schedule 3.21 describes, with respect to the Business or Assets (i) any self-insurance arrangement by or affecting Seller, including any reserves established thereunder, and (ii) all obligations of Seller to provide insurance
coverage to third parties (for example, under leases or service agreements) and identifies the policy under which such coverage is provided. 
 3.22 Solvency. Immediately after giving effect to the transactions contemplated by this Agreement, Seller and its subsidiaries shall be able to pay their respective debts as they become due and shall own property having a fair
saleable value greater than the amounts required to pay their respective debts. Immediately after giving effect to the transactions contemplated by this Agreement, Seller and its subsidiaries shall have adequate capital to carry on their respective
businesses. No transfer of property is being made and no obligation is being incurred in connection with the transactions contemplated by this Agreement in order to effect the transactions contemplated by this Agreement with the intent to hinder,
delay or defraud either present or future creditors of Seller. 
 3.23 Investment. Seller (i) is an “accredited
investor” within the meaning of Rule 501 promulgated under the Securities Act of 1933, as amended (the “Securities Act”); (ii) has had an opportunity to ask questions and receive answers regarding Buyer and its business,
management and financial affairs with Buyer management; and to obtain any additional information from Buyer that Seller desires; and (iii) is acquiring the Common Stock for its own account (and not for the account of others) for investment and
not with a view to the distribution thereof. Seller will not sell or otherwise dispose of such shares (whether pursuant to a liquidating dividend or otherwise) without registration under the Securities Act, or an exemption therefrom, and
acknowledges that certificate or certificates representing such shares will contain a legend to the foregoing effect. 
  

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 3.24 Broker’s Fees. Except for Piper Jaffray & Co., neither Seller nor any of its
affiliates has any liability to pay any fees or commissions to any broker, finder or agent with respect to the transactions contemplated by this Agreement. 
 3.25 Disclosure. None of the representations and warranties made by Seller in this Agreement contains or will contain any untrue statement of a material fact, or omits to state any material fact necessary to
make the statements contained in this Agreement not misleading. There is no fact known to Seller which materially adversely affects, individually or in the aggregate, the condition (financial or otherwise), assets, liabilities, business, or
operations of the Business or the ability of Seller to consummate the transactions contemplated hereby (a “Material Adverse Effect”) that has not been set forth herein or heretofore communicated to Buyer in writing pursuant hereto.

 3.26 Enforceability. Whenever in this Agreement a representation is made as to the enforceability of any contract, lease or
agreement, such representation of enforceability shall be subject to limitations as to enforceability which might result from bankruptcy, insolvency, moratorium and other similar laws affecting creditors’ rights generally and subject to
limitations on the availability of equitable remedies. 
 ARTICLE IV 
 Representations and Warranties of Seller 
 Except as disclosed in the
letter from Buyer to Seller regarding the representations and warranties set forth in this Article IV (“Buyer Disclosure Letter”) (which shall be deemed to modify all representations and warranties set forth herein), Buyer represents and
warrants to Seller as follows: 
 4.1 Organization. Buyer is a corporation duly organized, validly existing and in good standing under
the laws of the State of Delaware and has all requisite corporate power to consummate the transactions contemplated herein. 
 4.2
Authorization of Transaction. Buyer has full power and authority to enter into and perform this Agreement. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby has been duly authorized by
all requisite action of Buyer’s board of directors and shareholders and requires no further approvals or authorizations. This Agreement has been executed and delivered by a duly authorized officer of Buyer and is a valid and binding agreement
of Buyer, enforceable against Buyer in accordance with its terms. 
 4.3 No Violation. Neither the execution and delivery of this
Agreement nor the consummation by Buyer of the transactions herein contemplated, will conflict with or result in a breach of any of the terms, conditions or provisions of the articles of incorporation or bylaws of Buyer or of any statute or
administrative regulation, or of any order, writ, injunction, judgment or decree of any court or any governmental authority or of any arbitration award applicable to the Buyer. 
 4.4 Transaction Approval. No approval, including any regulatory approval, is required for Buyer to consummate the transactions contemplated by
this Agreement, other than as set forth on Schedule 4.4.4. Buyer has no reason to believe that all such approvals cannot be obtained with the time frame set forth in this Agreement. 
  

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 4.5 Broker’s Fees. Buyer has no liability to pay any fees or commissions to any broker,
finder or agent with respect to the transactions contemplated by this Agreement. 
 4.6 Capitalization 
 (a) As of the date of this Agreement, the authorized capital stock of Buyer consists of 20,000,000 shares of Common Stock, and 5,000,000
shares of preferred stock of which 13,805,607 shares and 112,591 shares, respectively, are outstanding. All of the outstanding shares of Common Stock are duly authorized, validly issued, fully paid and nonassessable. Except as set forth in the Buyer
SEC Documents (as such term is hereinafter defined), there are no outstanding options, warrants or other rights in or with respect to the unissued shares of Common Stock nor any securities convertible into such stock, and Buyer is not obligated to
issue any additional shares of its common stock or any additional options, warrants or other rights in or with respect to the unissued shares of such stock or any other securities convertible into such stock. 
 (b) The authorized capital stock of Buyer’s subsidiary bank (“Bank”) consists of 30,000,000 shares of common stock, $.15
par value per share, of which 1,000,000 shares are outstanding. All of the outstanding shares of such common stock of Bank are duly authorized, validly issued, fully paid and nonassessable and are owned of record and beneficially by Buyer. There are
no outstanding options, warrants or other rights in or with respect to the unissued or the issued or outstanding shares of such common stock or any other securities convertible into such stock, and Bank is not obligated to issue any additional
shares of its common stock or any options, warrants or other rights in or with respect to the unissued shares of its common stock or any other securities convertible into such stock. 
 (c) The authorized capital stock of the other subsidiaries of Buyer is as described in the Buyer Disclosure Letter. All of the outstanding
shares of such capital stock are duly authorized, validly issued, fully paid and nonassessable and are owned of record and beneficially by Buyer or Bank or a subsidiary of Buyer or Bank. There are no outstanding options, warrants or other rights in
or with respect to the unissued or the issued or outstanding shares of such capital stock or any other securities convertible into such stock, and none of such Buyer subsidiaries is obligated to issue any additional shares of its capital stock or
any options, warrants or other rights in or with respect to the unissued shares of its capital stock or any other securities convertible into such stock. 
 4.7 Financial Statements. The financial statements of Buyer included in the Buyer SEC Documents (the “Buyer Financial Statements”): (a) present fairly the consolidated financial condition of
Buyer as of the respective dates indicated and their respective consolidated statements of operations and changes in stockholders’ equity and cash flows, for the respective periods then ended; and (b) have been prepared in accordance with
GAAP consistently applied (except as otherwise indicated therein). 
  

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 4.8 Reports and Filings. 
 (a) Buyer has filed all required reports, proxy statements, schedules, registration statements and other documents with the SEC from and
after December 31, 2005 (the “Buyer SEC Documents”). As of their respective dates of filing with the SEC (or, if amended, supplemented or superseded by a filing prior to the date hereof, as of the date of such filing), the Buyer SEC
Documents complied in all material respects with the requirements of the Securities Act or the Exchange Act, as the case may be, and the rules and regulations of the SEC thereunder applicable to such Buyer SEC Documents, and none of the buyer SEC
Documents when filed contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not
misleading. The consolidated financial statements of Buyer included in the Buyer SEC Documents complied as to form, as of their respective dates of filing with the SEC, in all material respects with all applicable accounting requirements and with
the published rules and regulations of the SEC with respect thereto. 
 (b) Other than the Buyer SEC Documents, which are
addressed in subsection (a) above, each of Buyer and the Buyer subsidiaries have timely filed all reports, returns, registrations and statements, together with any amendments required to be made with respect thereto, that they were required to
file since December 31, 2005, with (a) the Federal Deposit Insurance Corporation (“FDIC”), (b) the Federal Reserve Board, and (c) any other applicable governmental entity, including taxing authorities (collectively,
“Buyer Governmental Filings”). No administrative actions have been taken or threatened or orders issued in connection with such Buyer Governmental Filings. As of their respective dates, each of such Buyer Governmental Filings complied in
all material respects with all laws and regulations enforced or promulgated by the governmental entity with which it was filed (or was amended so as to be in compliance promptly following discovery of any such noncompliance). Any financial statement
contained in any of such Buyer Governmental Filings fairly presented in all material respects the financial position of Buyer on a consolidated basis, Buyer alone or each of the Buyer subsidiaries alone, as the case may be, and was prepared in
accordance with GAAP or banking regulations and instructions applied on a consistent basis during the periods involved, except as may be disclosed therein, as of the dates and for the periods shown. 
 4.9 Litigation. Except as disclosed in the Buyer SEC Documents filed prior to the date of this Agreement or as set forth in the Buyer Disclosure
Letter, there is no suit, action, investigation or proceeding (whether judicial, arbitral, administrative or other) pending or, to the knowledge of Buyer, threatened, against or affecting Buyer or any subsidiary of Buyer as to which there is a
possibility of an adverse outcome which would, individually or in the aggregate, have a materially adverse affect on the condition (financial or otherwise), assets, liabilities, business or operations of Buyer (a “Buyer Material Adverse
Effect”), nor is there any judgment, decree, injunction, rule or order of any governmental entity outstanding against Buyer or any subsidiary of Buyer having or which would have, individually or in the aggregate, a Buyer Material Adverse
Effect. There are no material judgments, decrees, stipulations or orders against Buyer or the Buyer subsidiaries or enjoining their respective directors, officers or employees in respect of, or the effect of which is to prohibit, any business
practice or the acquisition of any property or the conduct of business in any area. 
  

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 4.10 Taxes. Except as disclosed on Buyer’s Financial Statements or in the Buyer Disclosure
Letter, (i) All tax returns required to be filed by or on behalf of Buyer or Buyer subsidiaries have been duly and timely filed with the appropriate taxing authorities in all jurisdictions in which such tax returns are required to be filed
(after giving effect to any valid extensions of time in which to make such filings), and all such tax returns were true, complete and correct in all material respects; (ii) all taxes due and payable by or on behalf of Buyer or the Buyer
subsidiaries have been fully and timely paid, except to the extent adequately reserved therefor in accordance with GAAP and/or applicable regulatory accounting principles or banking regulations consistently applied in the Buyer Financial Statements,
and adequate reserves or accruals for taxes have been provided in the Buyer Financial Statements with respect to any period through the date thereof for which Tax Returns have not yet been filed or for which taxes are not yet due and owing; and
(iii) no agreement, waiver or other document or arrangement extending or having the effect of extending the period for assessment or collection of taxes (including, but not limited to, any applicable statute of limitation) has been executed or
filed with any taxing authority by or on behalf of Buyer, or any of the Buyer subsidiaries. 
 4.11 Compliance with Charter Provisions and
Laws and Regulations. 
 (a) Neither Buyer nor any of the Buyer subsidiaries is in default under or in breach or violation
of (i) any provision its Certificate of Incorporation or Articles of Association, as amended, or Bylaws, as amended, or (ii) any law, ordinance, rule or regulation promulgated by any governmental entity, except, with respect to this clause
(ii), for such violations as would not have, individually or in the aggregate, a Buyer Material Adverse Effect. Except for routine examinations by federal or state governmental entities charged with the supervision or regulation of banks or bank
holding companies or engaged in the insurance of bank deposits, to the best knowledge of Buyer, no investigation by any governmental entity with respect to Buyer or any of the Buyer subsidiaries is pending or threatened, other than, in each case,
those the outcome of which, individually or in the aggregate, would not have a Buyer Material Adverse Effect. 
 (b)(i) To
Buyer’s knowledge, each of Buyer and the Buyer subsidiaries is in compliance with all applicable environmental regulations; (ii) except as set forth in the Buyer Disclosure Letter, there are no tanks on or about Buyer property; and
(iii) there are no hazardous materials on, below or above the surface of, or migrating to or from Buyer property; and (iv) as of the date of this Agreement, there is no claim, action, suit, or proceeding or notice thereof before any
governmental entity pending against Buyer or the Buyer subsidiaries and there is no outstanding judgment, order, writ, injunction, decree, or award against or affecting Buyer property relating to the foregoing representations (i) to (iii), in
each case the noncompliance with which, or the presence of which would have a Buyer Material Adverse Effect. 
 4.12 Employees. There
are no controversies pending or, to the best of Buyer’s knowledge, threatened between either Buyer or the Buyer subsidiaries and any of their respective 

  

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employees that could reasonably be expected to have a Buyer Material Adverse Effect. Neither Buyer nor any of the Buyer subsidiaries is a party to any
collective bargaining agreement with respect to any of their respective employees or any labor organization to which their respective employees or any labor organization to which their respective employees or any of them belong. 
 4.13 Certain Material Changes. Except as specifically required, permitted or effected by this Agreement, or as disclosed in or contemplated the
Buyer SEC Documents, since March 31, 2007, there has not been, occurred or arisen any of the following (whether or not in the ordinary course of business unless otherwise indicated); 
 (a) Any change in any of the assets, liabilities, permits, methods of accounting or accounting practices, business, or manner of
conducting business, of Buyer or the Buyer subsidiaries or any other event or development that has had, individually or in the aggregate, a Buyer Material Adverse Effect; 
 (b) Any damage, destruction or other casualty loss (whether or not covered by insurance) that has had Buyer Material Adverse Effect;

 (c) Any amendment, modification or termination of any existing, or entry into any new, material contract or permit that has
had a Buyer Material Adverse Effect; 
 (d) Any disposition by Buyer or the Buyer subsidiaries of an asset the lack of which
has had a Buyer Material Adverse Effect. 
 4.14 Licenses and Permits. Each of Buyer and the Buyer subsidiaries has all material
licenses and permits that are necessary for the conduct of its business, and such licenses are in full force and effect in all material respects. The respective properties, assets, operations and businesses of Buyer and the buyer subsidiaries are
and have been maintained and conducted, in all material respects, in compliance with all such applicable licenses and permits. To the knowledge of Buyer, no proceeding is pending or threatened by any governmental entity which seeks to revoke or
limit any such licenses or permits. 
 4.15 Undisclosed Liabilities. Except for liabilities or obligations which do not individually
or in the aggregate have a Buyer Material Adverse Effect or which are set forth in the Buyer Disclosure Letter, neither Buyer nor the Buyer subsidiaries has any liabilities or obligations, either accrued or contingent, that: (a) are not
reflected or disclosed in the Financial Statements of Buyer; (b) if incurred subsequent to March 31, 2007 were incurred other than in the ordinary course of business consistent with past practices. 
 4.16 Community Reinvestment Act. Bank has received a rating of “satisfactory” in its most recent examination or interim review with
respect to the Community Reinvestment Act. Bank has not been advised of any material supervisory concerns regarding Bank’s compliance with the Community Reinvestment Act. 
 4.17 Disclosure Documents. None of the information supplied or to be supplied by Buyer in writing (“Buyer Supplied Information”) for
inclusion in any documents to be filed with the SEC or any other governmental entity in connection with the transactions contemplated in this Agreement, will, at the respective times such documents are filed or become effective, with 

  

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respect to the Buyer Supplied Information, contain any untrue statement of a material fact, or omit to state any material fact required to be stated therein
or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 
 ARTICLE
V 
 Additional Covenants and Agreements 
 5.1 Cooperation. Subject to the terms and conditions of this Agreement, the parties hereto will use commercially reasonable efforts to cooperate with each other in taking any actions, including actions to
obtain the required consent of any governmental entity or any third party necessary or helpful to accomplish the transactions contemplated by this Agreement. 
 5.2 Non-Competition, Non-Solicitation and Confidentiality. 
 (a) For two
(2) years following the Closing Date, Seller will not, directly or indirectly through or by assisting another person or entity, compete with Buyer within the Business Territory (defined below) in any manner or capacity, including, without
limitation, as a proprietor, principal, agent, partner, officer, director, shareholder, or holder of any other financial interest, employee, member of any association, consultant or otherwise. “Business Territory” means the issuance
of open system stored value cards to individuals anywhere in the United States of America, other than customers of any branch of Seller in the ordinary course of business. 
 (b) For two (2) years following the Closing Date, Seller also agrees that it will not (i) solicit for hire or hire any of
Buyer’s employees or (ii) solicit or contact any of the customers of Buyer, whether or not such customers had a relationship with Seller prior to the Closing to (A) become a customer of any other person engaged in any business
activity that competes with the Business, (B) cease doing business with Buyer or (C) otherwise interfere with the relationship of Buyer with any such customer. 
 (c) For two (2) years following the Closing Date, Seller also agrees that it will refrain from, and shall cause those of its
employees who have performed services to the Business who are not employed by Buyer as of the Closing Date to refrain from, disclosing (unless compelled by judicial or administrative process or otherwise required by law) or using any confidential or
secret information relating to the Business or the Assets. 
 (d) The parties hereby agree that all restrictions and
agreements contained in this Section 5.2 are necessary and fundamental to the protection of the Business and any objections or reservations to such restrictions or agreements are hereby waived. Seller hereby agrees that the remedy at law for
any breach of this Agreement will be inadequate, and that the damages flowing from such breach are not readily susceptible to being measured in monetary terms. Accordingly, the parties agree that upon any breach of this Section 5.2, Buyer shall
be entitled to immediate injunctive relief and may obtain a temporary order restraining any threatened further breach. Nothing in this Agreement shall be deemed to limit Buyer’s remedies at law or in equity for any breach by Seller of any of
the provisions of this Agreement that may be pursued by or made available to Buyer. 
  

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 5.3 Accounts Receivable/Collections. From and after the Closing, Buyer will remit to Seller all
accounts receivable received for services rendered up to the Closing Date. Seller shall promptly (but no later than thirty days upon receipt) pay all amounts owed as accounts payable as of the Closing Date. 
 5.4 Assignment of Intellectual Property. At or after the Closing Date, Seller will cooperate with any and all filings that are necessary to
transfer the Intellectual Property to Buyer, including any filings required to be made with the U.S. Patent and Trademark Office. 
 5.5
Lease Assignment. Upon obtaining the consent of landlords to assign the Leases, Seller agrees to assign the Leases in their entirety to Buyer and Buyer agrees to assume all of Seller’s obligations under the Leases. Seller and Buyer will
memorialize the foregoing by executing at the Closing the Assignment and Assumption of Leases substantially in the form attached hereto as Exhibit B. Buyer agrees to sublease to Seller all of the first floor of the property subject to the
Building Lease on the same terms and conditions, pro rata, as provided in such Lease. 
 5.6 Business Relationships. Seller shall not
take any action the intent of which is to diminish the value of the Assets after the Closing or interfere with the ownership, lease or use of the Assets by Buyer following the Closing, including disparaging the name or business of Buyer. 

5.7 Waiver of Employment Restrictions. Immediately after the Closing, Seller agrees to forever and completely waive any and all restrictive
covenants related to Seller’s current and former employees in any employment agreements, confidentiality agreements, noncompetition agreements, handbooks or related documents which may restrict such employees’ ability to be employed by
Buyer. 
 5.8 Covenants Relating to the Conduct of Business. Except for matters permitted or contemplated by this Agreement, from the
date of this Agreement to the Closing Date, Seller agrees to conduct the Business in the usual, regular and ordinary course in substantially the same manner as previously conducted and to use commercially reasonable efforts to keep available the
services of the employees employed in connection with the Business and keep its relationships with program managers, customers, suppliers, licensors, licensees, distributors and others having business dealings with the Business to the end that its
goodwill and ongoing business shall be unimpaired at the Closing Date. In addition, and without limiting the generality of the foregoing, except for matters permitted or contemplated by this Agreement, from the date of this Agreement to the Closing
Date, the Seller agrees that it shall not undertake any of the following actions with respect to the Business without the prior written consent of the Buyer: 
 (a) acquire or agree to acquire or lease any assets for use in connection with the Business that are material, individually or in the
aggregate, to the Business, except purchases in the ordinary course of business consistent with past practice; 
  

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 (b) grant to any employee any increase in compensation, bonus or severance, other than in
the ordinary course of business in reasonable amounts consistent with past practice; 
 (c) make any change in accounting
methods, elections concerning taxes or tax returns, principles or practices affecting the reported combined consolidated assets, liabilities or results of operations of the Business (including the Assets); 
 (d) sell, lease, sublease, assign, license, pledge, terminate or otherwise dispose of or subject to any Lien any properties or assets of
the Business (including, without limitation, the Assets); 
 (e) amend, terminate, or cause a default under any Assumed
Contract; 
 (f)(i) waive any claims or rights related to the Business and included in the Assets or (ii) waive the
benefits of, or agree to modify in any manner, any confidentiality, standstill or similar agreement to which the Seller is a party and relating to the Business or any of the products of the Business or the Assets; 
 (g) other than in the ordinary course of business, make or commit to make any capital expenditure; 
 (h) enter into any contracts related to the Intellectual Property; 
 (i) enter into any material agreement or any agreement restricting the Seller’s ability to conduct the Business; 
 (j) authorize any of, or commit or agree to take any of, the foregoing actions. 
 5.9 Regulatory Compliance and Conversion Matters. 
 (a) Not later than thirty (30) days from the date of this Agreement, Buyer shall prepare and file all applications, filings, notices or registrations required to obtain (i) state and federal regulatory
approvals and (ii) any required licenses, memberships or authorization from Associations for the transactions or post closing activities contemplated by this Agreement. Buyer shall provide Seller with the non-confidential sections of all such
applications and filings and shall provide to Seller copies of all non-confidential communications from regulatory authorities regarding such applications and filings. Seller will provide non-financial assistance to Buyer in obtaining approval of
such applications, including, but not limited to, participating in meetings and conferences as reasonably necessary to satisfy regulatory agencies. 
 (b) Buyer’s subsidiary, the Bank, will timely perform, honor, and assume all contractual deposit agreements and/or relationships between Seller and Seller’s depositors with regard to the Deposit Accounts.
All Deposit Accounts shall become deposit accounts of Bank of the same amount, terms, rate and maturity. Buyer and Seller shall make appropriate arrangements with each other to provide for settlement by Bank of checks, deposits, debits, returns, and
other items that are presented to Seller after the Closing for the Deposit Accounts. 
  

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 (c) After the Closing, the parties will cooperate in good faith with each other to
promptly convert the Business’s data processing needs from the ITI Platform to a new platform owned and controlled exclusively by Buyer. Until such conversion can be completed, Seller will continue to provide such processing and other data
services as the Business may require following Closing pursuant to an interim services agreement in the form set forth in Exhibit 5.9. 
 5.10 Right of Inspection; Access to Books and Personnel; Cooperation. 
 (a) Seller shall and shall cause each
of Seller’s officers, directors, employees, internal and outside auditors and agents to afford to Buyer and Buyer’s officers, directors, employees, auditors, agents and lenders the right at any time prior to the Closing, on reasonable
notice during normal business hours, access to Seller’s employees, auditors, agents, facilities, books and records as Buyer reasonably shall deem necessary or desirable and subject to such reasonable restrictions as Seller may request to
maintain the confidentiality of this Agreement and the transactions contemplated hereby and shall furnish such financial and operating data and other information with respect to the Business as Buyer may reasonably require. Except as otherwise set
forth herein, no such access, examination or review shall in any way affect, diminish or terminate any of the representations, warranties or covenants of Seller set forth herein. 
 (b) Promptly following Closing, Seller will provide representatives of Buyer with assistance and access to data during normal business
hours, including accounting and other books and records of Seller and appropriate personnel of Seller, and access to Seller’s internal and outside auditors, reasonably required by Buyer to enable Buyer to prepare: (i) an audited balance
sheet and related statements of income and cash flows for the most recent fiscal year, or (ii) other financial statements. Seller agrees to authorize Buyer’s independent auditors access to the Seller’s working papers. 
 (c) Following the Closing, Buyer will provide representatives of Seller with assistance and access to data during normal business hours,
including accounting and other books and records of the Business when it was owned by Seller, all as may be reasonably required by Seller to enable Seller to respond to any regulatory inquiry regarding Seller’s operation of the Business.

 5.11 Notification of Material Events. Seller shall promptly notify Buyer in writing of any event following the date hereof of which
Seller is or becomes aware that will or may reasonably be expected to have a Material Adverse Effect. 
 5.12 Supplemental
Disclosures. Seller shall have the continuing obligation to supplement promptly and amend the Schedules as necessary or appropriate with respect to any matter hereafter arising or discovered which, if existing or known at the date of this
Agreement, would have been required to be set forth or described in the Schedules; provided, however, that for the purpose of the rights and obligations of the parties hereunder, any such supplemental or 

  

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amended disclosure shall not, except as Buyer may otherwise agree in writing, be deemed to have cured any breach of any representation or warranty made in
this Agreement. Notwithstanding the foregoing, if Buyer elects to proceed with the Closing, Buyer shall be deemed to have waived the right thereafter to assert any claim pursuant to Article VII hereunder with respect to any matter specifically and
accurately disclosed by Seller in such supplemental or amended disclosure. 
 5.13 Exclusivity. Until the earlier to occur of
(i) the termination of this Agreement in accordance with Article VIII or (ii) the Closing, (a) Seller shall not, and shall not permit or authorize any of Seller’s affiliates, directors, officers, employees, agents or advisors to,
initiate, pursue or encourage (by way of furnishing information or otherwise) any inquiries or proposals, or enter into any discussions, negotiations or agreements (whether preliminary or definitive) with any person, contemplating or providing for
any merger, acquisition, purchase or sale of stock or all or substantially all of the assets or any business combination or change in control of Seller or the Business, and (b) Seller shall deal exclusively with Buyer with respect to the sale
of the Assets or the Business or assets and properties of Seller. 
 5.14 Delivery of Audited Financial Statements. Seller shall cause
to be prepared and delivered to Buyer such audited and unaudited interim financial statements for the Business as may be necessary for Buyer to comply with its requirements to file financial statements of an acquired business with the SEC as set
forth in Form 8-K or Regulation S-X (the “Financial Statements”), but excluding any pro forma financial statements so required. The fees and expenses of Seller’s independent registered public accounting firm in connection with the
audit of the Financial Statements shall be borne by Buyer. The Financial Statements shall be prepared in accordance with GAAP, consistently applied during the periods covered thereby, fairly present in all material respects the financial condition
and the results of operations of the Business for the periods covered thereby, and be in accordance with the books and records of Seller. As of the dates of the respective Financial Statements, Seller will have no debts, liabilities, Liens, claims
or other obligations of any nature (whether accrued, absolute, contingent or otherwise) of the type which should be reflected in balance sheets (including the notes thereto), prepared in accordance with GAAP consistently applied, which were not
disclosed, reflected or reserved against on the Financial Statements and, except for liabilities which have been incurred since the date of the most recent financial statements included in the Financial Statements in the ordinary course of business
and not in breach of any covenant of this Agreement, Seller shall not have incurred any liability of any nature (whether accrued, absolute, contingent or otherwise) of the type which should be reflected on financial statements prepared in accordance
with GAAP consistently applied in accordance with the Financial Statements. 
 5.15 Other Actions. The parties hereto shall not, and
shall not permit any of their respective shareholders to, take any action that would, or that could reasonably be expected to, result in (a) any of the representations and warranties of such party set forth in the Agreement becoming untrue or
inaccurate or (b) any condition set forth in Article VI not being satisfied. 
  

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 ARTICLE VI 
 Closing Conditions and Documents 
 6.1 Conditions to Buyer’s Obligation to Close.
Buyer’s obligation to consummate the transactions to be performed by it in connection with the Closing is subject to satisfaction of the following conditions: 
 (a) All representations and warranties of the Seller set forth in this Agreement shall be true and correct, in each case as of the date
hereof and as of the Closing Date as though made as of the Closing Date, except to the extent such representations or warranties expressly relate to an earlier date (in which case such representations and warranties shall be true and correct as of
such earlier date). Buyer shall have received a certificate of the Seller, signed by a duly authorized officer of Seller, to such effect. 
 (b) Seller shall have performed in all respects its obligations required to be performed under this Agreement on or prior to the Closing Date. Buyer shall have received a certificate of Seller, signed by a duly
authorized officer of Seller, to such effect. 
 (c) Since the date of this Agreement, there shall not have been any event,
change, effect or development that, individually or in the aggregate, has had or could be expected to have a Material Adverse Effect, and no law shall have been enacted or promulgated, and no investigation, action, suit or proceeding shall have been
threatened or instituted against Seller as of the Closing Date, which, in any such case, in the reasonable judgment of Buyer, challenges, or might result in a challenge to, the consummation of the transactions contemplated hereby, or which claims,
or might give rise to a claim for, damages against Buyer as a result of the consummation of such transactions. 
 (d) All
consents set forth on Schedule 6.3(g) shall have been obtained and be in full force and effect. 
 (e) Buyer shall have
received all files related to the Deposit Accounts, the customers, and the program managers related to the Business. 
 (f)
Within 30 days following the date of this Agreement, Buyer may terminate this Agreement if Buyer has not reached reasonably acceptable arrangements with the employees listed on Schedule 6.1(f) regarding their continued employment with the
Business after the Closing. This condition shall be deemed waived if Buyer fails to give written notice of such termination to Seller within this 30-day period. 
 (g) Seller shall have performed in all material respects all obligations required to be performed by Seller under this Agreement at or
prior to the Closing Date. 
 In the event that any of the conditions precedent set forth above have not been satisfied, Buyer shall notify
Seller in writing indicating its election to (i) waive such condition precedent, (ii) terminate this Agreement pursuant to Section 8.1, or (iii) close the transactions contemplated by this Agreement, reserving its rights and
remedies, without waiving such condition precedent. 
  

 23 

 6.2 Conditions to Seller’s Obligation to Close. Seller’s obligation to consummate the
transactions to be performed by it in connection with the Closing is subject to satisfaction of the following conditions: 
 (a) All representations and warranties of the Buyer set forth in this Agreement shall be true and correct, in each case as of the date hereof and as of the Closing Date as though made as of the Closing Date, except to the extent such
representations or warranties expressly relate to an earlier date (in which case such representations and warranties shall be true and correct as of such earlier date). Seller shall have received a certificate of the Buyer, signed by a duly
authorized officer of Buyer, to such effect. 
 (b) Buyer shall have performed in all respects its obligations required to be
performed by it under this Agreement on or prior to the Closing Date. Seller shall have received a certificate of Buyer, signed by a duly authorized officer of Buyer, to such effect. 
 6.3 Seller’s Deliveries. At the Closing, Seller shall execute and/or deliver to Buyer all of the following: 
 (a) immediately available funds in the amount required pursuant to Section 2.1(b)(ii)(A); 
 (b) an executed signature page to the Bill of Sale, Assignment and Assumption Agreement in the form attached hereto as Exhibit A,
naming Buyer or Buyer’s designee as Assignee; 
 (c) an executed signature page to the Assignment and Assumption of Lease
in the form attached hereto as Exhibit B, naming Buyer or Buyer’s designee as Assignee; 
 (d) an executed
signature page to the Registration Rights Agreement in the form attached hereto as Exhibit C; 
 (e) an executed
signature page to the Escrow Agreement in the form attached hereto as Exhibit D; 
 (f) duly executed resolutions or
meeting minutes of the board of directors and the shareholder of Seller approving the execution and delivery of this Agreement; 
 (g) the consents set forth on Schedule 6.3(g) hereof; 
 (h) a certificate to the effect that each of the
conditions specified in Section 6.4 are satisfied in all respects; and 
 (i) such other documents or instruments,
including opinions of counsel, as Buyer may reasonably request to effect the transactions contemplated hereby. 
  

 24 

 In addition, Seller shall deliver to the Escrow Agent the Escrow Amount. 
 6.4 Buyer’s Deliveries. At the Closing, Buyer shall execute and/or deliver all of the following: 
 (a) an executed signature page to the Bill of Sale, Assignment and Assumption Agreement in the form attached hereto as Exhibit A;

 (b) an executed signature page to the Assignment and Assumption of Lease in the form attached hereto as Exhibit B;

 (c) an executed signature page to the Registration Rights Agreement in the form attached hereto as Exhibit C;

 (d) an executed signature page to the Escrow Agreement in the form attached hereto as Exhibit D; 
 (e) certificate(s) for the Common Stock; 
 (f) a certificate to the effect that each of the conditions specified in Section 6.5 are satisfied in all respects; and 
 (g) such other documents or instruments, including opinions of counsel, as Seller may reasonably request to effect the transactions
contemplated hereby. 
 ARTICLE VII 
 Indemnification 
 7.1 Seller’s Indemnification Covenants. Seller agrees to indemnify, hold harmless and
defend Buyer from and against all liability, demands, claims, actions or causes of action, assessments, losses, fines, penalties, costs, damages and expenses, including reasonable attorneys’ fees sustained or incurred by Buyer to the extent
resulting from or arising out of: (a) any breach of a representation or warranty in this Agreement (or any of the Exhibits hereto) made by Seller to Buyer; (b) the failure of Seller to comply with, or the breach by Seller of, any of the
covenants in this Agreement (or any of the Exhibits hereto) to be performed by Seller; (c) Seller’s failure to honor, discharge, payor fulfill when due any Excluded Liabilities; (d) any claim that Buyer is liable for a commission to a
broker, finder or similar person in connection with the transactions contemplated herein by reason of acts of Seller; (e) any claim arising out of the conduct of the Business prior to the Closing Date and (f) whether or not disclosed by
Seller in this Agreement, any obligation or liability of Seller related to any actual or alleged violation or liability resulting from (i) any infringement upon any intellectual property rights of third parties as set forth in Schedule 3.9(c),
or (ii) regulatory claims or penalties arising out of the matters set forth in the Memorandum (“Buyer Loss”). Notwithstanding the foregoing, Seller shall have no liability to Buyer for any Buyer Loss until the aggregate of all
Buyer Losses (other than Buyer Losses relating to matters set forth in Section 3.7 (Tax Matters) exceeds $60,000 but once that threshold is reached, shall be liable for all Buyer Losses. 
  

 25 

 7.2 Buyer’s Indemnification Covenants. Buyer agrees to indemnify, hold harmless and defend
Seller from and against all liability, demands, claims, actions or causes of action, assessments, losses, fines, penalties, costs, damages and expenses, including reasonable attorneys’ fees sustained or incurred by Seller or Shareholders to the
extent resulting from or arising out of: (a) any breach of a representation or warranty in this Agreement (or any of the Exhibits hereto) made by Buyer; (b) the failure of Buyer to comply with, or the breach by Buyer of, any of the
covenants in this Agreement (or any of the Exhibits hereto) to be performed by Buyer; (c) Buyer’s failure to honor, discharge, payor fulfill when due any Assumed Liabilities; and (d) any claim arising out of the conduct of the
Business on or after the Closing Date (“Seller Loss”). Notwithstanding the foregoing, Buyer shall have no liability to Seller for any Seller Loss until the aggregate or with Seller Losses exceeds $60,000 but once that threshold is
reached, shall be liable for all Seller Losses. 
 7.3 Effect of Investigation; Survival of Representations, Warranties, Covenants and
Agreements. The representations, warranties and covenants of Seller contained in this Agreement shall survive the Closing and continue until two years after the Closing Date except that the representations contained in
(a) Section 3.1 (Organization), Section 3.2 (Authorization of Transaction), Section 3.5 (Title and Sufficiency of Assets), Section 3.7 (Tax Matters), Section 3.9 (Intellectual
Property) and Section 7.l(c) shall survive until the termination of the statute of limitations applicable to the subject matter of such representations, warranties and covenants (each such time period an “Expiration
Date”) and provided, further, that any claims which involve fraud or intentional misrepresentation shall survive the Closing indefinitely. Any claim for indemnification with respect to any of the foregoing matters which is not asserted by
notice given as herein provided relating thereto within such specified period of survival may not be pursued and is hereby irrevocably waived after such time. Any claim for a Buyer or Seller Loss asserted on or before the Expiration Date will be
timely made for purposes hereof. Any claim for a Buyer or Seller Loss not asserted prior to the Expiration Date will not be timely for purposes hereof. 
 7.4 Procedure for Indemnification. 
 (a) If any Person shall claim indemnification
(the “Indemnified Party”) hereunder for any claim other than a third party claim, the Indemnified Party shall promptly give written notice to the other party from whom indemnification is sought (the “Indemnifying
Party”) of the nature of the claim in detail and amount of the claim. If an Indemnified Party shall claim indemnification hereunder arising from any claim or demand of a third party (a “Third-party Claim”), the Indemnified
Party shall promptly give written notice (a “Third-Party Notice”) to the Indemnifying Party of the basis for such claim or demand, setting forth the nature of the claim or demand in detail and the amount of the claim. 
 (b) In the event that an Indemnifying Party which receives notice of an indemnification claim contests its liability for such
indemnification claim, such party shall send written notice to the Indemnified Party of its dispute of indemnification within 15 days thereof. If the parties are unable to resolve such dispute of indemnification within 60 days after the date of the
notice of dispute, the Indemnified Party may bring an action against the Indemnifying Party to enforce such indemnification claim. 
  

 26 

 (c) The Indemnifying Party shall have the right to compromise or, if appropriate, defend
at its own cost and through counsel of its own choosing, any claim or demand giving rise to any such claim for indemnification. In the event the Indemnifying Party undertakes to compromise or defend any such claim or demand, it shall promptly (and
in any event, no later than 15 days after receipt of a Third-Party Notice) notify the Indemnified Party in writing of its intention to do so. The Indemnified Party shall fully cooperate with the Indemnifying Party and its counsel in the defense or
compromise of such claim or demand. After the assumption of the defense by the Indemnifying Party, the Indemnified Party shall not be liable for any legal or other expenses subsequently incurred by the Indemnifying Party, in connection with such
defense, but the Indemnified Party may participate in such defense at its own expense. No settlement of a Third-Party Claim defended by the Indemnifying Party shall be made without the written consent of the Indemnified Party, such consent not to be
unreasonably withheld. The Indemnifying Party shall not, except with the written consent of the Indemnified Party, consent to the entry of a judgment or settlement of a Third-Party Claim which does not include as an unconditional term thereof, the
giving by the claimant or plaintiff to the Indemnified Party of an unconditional release from all liability in respect of such Third-Party Claim. 
 7.5 Escrow. 
 (a) As provided for in Section 2.1(b), on the Closing Date, Buyer shall pay the Escrow
Amount to the Escrow Agent. The Escrow Agent shall retain, invest and disburse such funds pursuant to the escrow agreement attached as Exhibit D hereto (the “Escrow Agreement”). Any interest or earnings on such funds shall be
for the account of Seller. 
 (b) The Escrow Agreement shall provide that the funds retained pursuant thereto shall be applied
to pay claims for Buyer Losses that have not been contested (“Uncontested Claims”) and claims for Buyer Losses that have been resolved in favor of Buyer (to the extent so resolved) pursuant to a court judgment or by agreement of
Seller and Buyer (“Resolved Claims”) and to secure claims for the Buyer Losses as to which Buyer shall have notified Seller and the Escrow Agent and which are neither Uncontested Claims nor Resolved Claims (“Pending
Claims”). Upon the expiration of six (6) months following the Closing Date, the Escrow Agent shall release to Seller an amount equal to all of the funds then held in the escrow account, less the aggregate amount of the then Pending
Claims and shall continue thereafter to retain funds equal to the amount of the Pending Claims until directed otherwise by agreement of Buyer and Seller or by court order. 
 7.6 Bulk Sales. Notwithstanding anything herein to the contrary, Seller will indemnify and hold harmless Buyer from and against any and all Losses
resulting from or arising out of any noncompliance or alleged noncompliance by Buyer or Seller with bulk sales laws. 
 7.7
Limitations. There shall be no monetary limitations on Buyer’s ability to make indemnification claims on Seller except that such claims shall not exceed the aggregate Purchase Price (inclusive of all third-party payments) of the Assets.

  

 27 

 ARTICLE VIII 
 Termination, Extension and Waiver 
 8.1 Termination of Agreement. The parties may
terminate this Agreement as provided below: 
 (a) Buyer and Seller may terminate this Agreement by mutual written consent at
any time prior to the Closing; 
 (b) Buyer may terminate this Agreement by giving written notice to Seller at any time prior
to the Closing (i) if Seller has breached any representations, warranties or covenants contained in this Agreement in any material respect, Buyer has notified Seller of the breach, and the breach has continued without cure for a period of
twenty (20) days after the notice of breach, (ii) if the necessary approvals, consents and waivers for the assignment and transfer to Buyer for the Assumed Contracts listed on Schedule 1.1(a) have not been obtained at or prior to
the Closing, (iii) if the failure to have Licenses that are not transferable or are transferable but only with the consent of the government or a governmental agency and with respect to which the requisite consent is not received at or prior to
the Closing would have a Material Adverse Effect, or (iv) if the Closing shall not have occurred on or before September 30, 2007, by reason of the failure of any condition under Section 6.1 hereof (unless the failure results
primarily from Buyer itself breaching any representation, warranty or covenant contained in this Agreement); and 
 (c) Seller
may terminate this Agreement by giving written notice to Buyer at any time prior to the Closing (i) if Buyer has breached any representations, warranties or covenants contained in this Agreement in any material respect, Seller has notified
Buyer of the breach, and the breach has continued without cure for a period of twenty (20) days after the notice of breach or (ii) if the Closing shall not have occurred on or before September 30, 2007, by reason of the failure of any
condition under Section 6.2 hereof (unless the failure results primarily from Seller itself breaching any representation, warranty or covenant contained in this Agreement); provided, however, that the Closing deadline may be extended by
Buyer to January 31, 2008 if Buyer is proceeding in good faith to obtain all necessary regulatory approvals, and satisfy all other Closing conditions, prior to January 31, 2008. 
 8.2 Effect of Termination. If any party terminates this Agreement pursuant to Section 8.1 above, all rights and obligations of the
parties hereunder shall terminate without any liability of any party to the other party except that the obligations set forth in Article VII shall survive. Notwithstanding any other provision of this Agreement, no termination of this Agreement shall
release any party of any liabilities or obligations arising hereunder for any pre-termination breaches hereof or misrepresentations made herein. 
 8.3 Extension; Waiver. At any time prior to the Closing Date, the parties may (a) extend the time for performance of any of the obligations or other acts of the other party, (b) waive any inaccuracies in the representations
and warranties of the other party contained in this Agreement, (c) waive compliance with any of the agreements of the other party contained in this Agreement or (d) waive any condition to such party’s obligation to effect and complete
the Closing. The failure of any party to assert any of its rights under this Agreement or otherwise shall not constitute a waiver of such rights. 
  

 28 

 ARTICLE IX 
 Miscellaneous 
 9.1 Expenses. Buyer and Seller shall each pay and bear its own expenses
with respect to the transactions contemplated hereby. Seller shall pay all transfer taxes, sales taxes and other transfer fees which may be payable in connection with the transfer of the Assets contemplated by this Agreement. 
 9.2 Notices. All notices required or permitted to be given hereunder shall be in writing and shall be deemed given when delivered in person, or on
the next business day after being deposited with a nationally recognized overnight courier service addressed as hereinafter set forth or upon dispatch if sent by facsimile with telephonic confirmation of receipt from the intended recipient to the
telecopy number hereinafter set forth: 
 If to Buyer: 
 The Bancorp, Inc. 
 405 Silverside Road 
 Wilmington, DE 19809 
 Attn: Frank Mastrangelo

 Fax No.: 302-385-5194 
 with a
copy to: 
 Ledgewood 
 1900
Market Street 
 Philadelphia, PA 19103 
 Attn: J. Baur Whittlesey 
 Fax No.: 215-735-8513 
 If to Seller: 
 c/o Marshall BankFirst Corporation 
 225 South Sixth Street 
 Suite 2900

 Minneapolis, Minnesota 55402 
 Attn: General Counsel 
 Fax No.: (612) 376-1331 
  

 29 

 with a copy to: 
 Lindquist & Vennum P.L.L.P. 
 4200 IDS Center 
 80 South 8th Street 
 Minneapolis, Minnesota
55402 
 Attn: J. Kevin Costley 
 Fax No.: (612) 371-3207 
 and/or to such other respective addresses as may be designated by notice given in accordance with the
provisions of this Section 9.2 except that any notice of change of address shall not be deemed given until actually received by the party to whom directed. 
 9.3 Third Parties. Nothing in this Agreement, whether expressed or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any other person other than the parties and their
respective successors and assigns, nor is anything in this Agreement intended to relieve or discharge the obligation or liability of any third person to either party hereto, nor shall any provision give any third party any right of subrogation or
actions over or against either party hereto. This Agreement is not intended to and does not create any third-party beneficiary rights whatsoever. 
 9.4 Entire Agreement. This Agreement and the Schedules and Exhibits hereto and the ancillary documents executed in connection herewith constitute the entire agreement between the parties and shall be binding upon and inure to the
benefit of the parties hereto and their respective legal representatives, successors and permitted assigns. 
 9.5 Non-Waiver. The
failure in anyone or more instances of a party to insist upon performance of any of the terms, covenants or conditions of this Agreement, to exercise any right or privilege in this Agreement conferred, or the waiver by said party of any breach of
any of the terms, covenants or conditions of this Agreement, shall not be construed as a subsequent waiver of any such terms, covenants, conditions, rights or privileges, but the same shall continue and remain in full force and effect as if no such
forbearance or waiver had occurred. No waiver shall be effective unless it is in writing and signed by an authorized representative of the waiving party. 
 9.6 Modification. This Agreement may only be amended or modified in writing signed by the parties hereto. 
 9.7 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original, and all such counterparts shall constitute but one instrument. 
 9.8 Severability. The invalidity of any provision of this Agreement or portion of a provision shall not affect the validity of any other provision
of this Agreement or the remaining portion of the applicable provision. 
 9.9 Headings. The descriptive headings of the Articles and
Sections of this Agreement are inserted for convenience only and do not constitute a part of this Agreement. 
  

 30 

 9.10 Applicable Law; Consent to Jurisdiction; Waiver of Jury Trial. All questions concerning the
validity, operation, enforceability, interpretation, construction, and effect of this Agreement shall be governed by, and determined in accordance with the internal laws of the State of Delaware without regard to the conflicts of law provisions.
Each party consents to the nonexclusive jurisdiction and venue of the state or federal courts located in the City of Wilmington, Delaware. Each party hereto irrevocably waives, to the fullest extent permitted by applicable law, (a) any
objection that it may now or hereafter have to the laying of venue of any such legal proceeding in the state or federal courts located in the City of Wilmington, and (b) any right it may have to a trial by jury in any suit, action, proceeding,
claim or counterclaim brought by or on behalf of any party related to or arising out of this Agreement and the transactions contemplated hereby. 
 9.11 Succession and Assignment. This Agreement shall be binding upon and inure to the benefit of the parties named herein and their respective successors and permitted assigns. No party may assign either this Agreement or any of its
rights, interests or obligations hereunder without the prior written approval of the other party; provided, however, Seller may assign its rights, or Buyer may assign its rights and obligations, hereunder to a wholly-owned subsidiary. 
 9.12 Construction. The parties have participated jointly in the negotiation and drafting of this Agreement. In the event of an ambiguity or
question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring either party by virtue of authorship of any of the
provisions of this Agreement. The word “including” shall mean including without limitation. 
 9.13 Specific Performance.
Each party acknowledges and agrees that the other party would be irreparably damaged in the event any provision of this Agreement is not performed in accordance with its specific terms or otherwise is breached, so that a party shall be entitled to
injunctive relief to prevent breaches of the provisions of this Agreement and to enforce specifically this Agreement and the terms and provisions hereof in addition to any other remedy to which such party may be entitled, at law or in equity.

 [Signatures on Following Page] 
  

 31 

 IN WITNESS WHEREOF, the parties have executed this Purchase and Assumption Agreement as of the day and
year first above written. 
  

	
	SELLER:
	
	BANKFIRST
	
	 /s/ John G. Kimball

	By: John G. Kimball
	Its:  President
	
	BUYER:
	
	THE BANCORP, INC.
	
	 /s/ Frank M. Wastrangelo

	By: Frank M. Wastrangelo
	Its:  President, COO

  

 32 

 EXHIBIT A 
 BILL OF SALE, ASSIGNMENT AND ASSUMPTION AGREEMENT 
 THIS BILL OF SALE, ASSIGNMENT AND ASSUMPTION
AGREEMENT dated effective as of                     , 2007 (this “Agreement”), is made and entered into by and between
BANKFIRST, a South Dakota state banking corporation (“Seller”), and THE BANCORP, INC., a Delaware corporation (“Buyer”), pursuant to that certain Purchase and Assumption Agreement between Buyer and Seller dated as of July
    , 2007 (the “Purchase Agreement”). The capitalized terms used and not otherwise defined herein have the meanings set forth in the Account Purchase Agreement. 
 WHEREAS, Seller desires to sell and assign to Buyer and Buyer wishes to purchase and accept from Seller, in consideration of one dollar and Buyer’s
assumption of the Assumed Liabilities and upon the terms and conditions set forth in the Purchase Agreement, all of Seller ‘s right, title, and interest in, to, and under the Assets. 
 NOW, THEREFORE, pursuant to the Purchase Agreement, and for good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, it is hereby agreed that: 
 1. Sale and Assignment. Seller does hereby grant, convey, and assign without recourse to
Buyer and its successors and assigns, the following Assets as of the date hereof, to have and to hold such Assets for its own use and benefit forever: 
  

	 	a.	all rights of Seller under the contracts, agreements, leases of real and personal property, commitments and other arrangements, whether oral or written set forth on Schedule
1(a); 

  

	 	b.	all rights of Seller in guaranties, reserve accounts, security deposits and other collateral posted by any person, including any program manager, in connection with the Business;

  

	 	c.	all rights of Seller in funding accounts, settlement accounts and customer accounts related to the Business, including negative balances and advances to any customer;

  

	 	d.	all rights of Seller in the Association BINs and ICAs listed on Schedule 1(d); 

  

	 	e.	to the extent owned by Seller, all inventory related to the Business, including, to the extent permissible by Association rules, cards and card agreements; 

 

	 	f.	all equipment, furniture, computer hardware and software, leasehold improvements, fixtures and other tangible personal property owned by Seller in connection with the Business as
set forth on Schedule 1(f); 

	 	g.	all of Seller’s other intangible rights and property associated with the Business, including but not limited to, all trademarks, patents, copyrights, trade names (other than
the names “BankFirst” and “Marshall”), other Intellectual Property used in or related to the Business, going concern value, goodwill, telephone numbers, facsimile numbers, all as set forth on Schedule 1(g);

  

	 	h.	all books, records and other documents and information related to the Business, including all customer, prospect, program manager, broker and distributor lists, sales literature,
price lists, quotes and bids, promotional programs, product catalogs and brochures, inventory records, product data, purchase orders and invoices, sales orders and sales order log books, commission records, customer information, personnel records
(to the extent permitted by law) and correspondence and all personnel records and other records of Seller related to its employees to the extent their transfer is permitted by law; 

  

	 	i.	all pre-paid expenses and deposits made by Seller related to the Business; 

  

	 	j.	all governmental licenses, permits, approvals and other authorizations held by the Seller in connection with the Business, to the extent their transfer is permitted by law; and

  

	 	k.	all right, title and interest of Seller in and to all warranties and guarantees given to, assigned to or benefiting Seller regarding the acquisition, construction, design, use,
operation, management or maintenance of any of the Assets, to the extent such assignment is not prohibited by the terms of such warranty or guarantee. 

 2. Acceptance and Assumption. Buyer agrees to assume and to pay and discharge when due the following agreements, obligations and liabilities of Seller: 
  

	 	a.	all liabilities, obligations and commitments of Seller arising on and after the date hereof under the executory portion of any of the Assumed Contracts or under the Licenses (to the
extent constituting Assets), but not including any liability or obligations for breach or violation thereof to the extent occurring at or prior to the Closing; 

  

	 	b.	all of Seller’s obligations relating to all demand, savings and certificate of deposit accounts attributable to the Business accruing or arising on and after the date hereof
and all interest payable with respect to such deposit accounts as identified and listed in Schedule 2(b); and 

  

	 	c.	all other liabilities, obligations and commitments of Seller described on Schedule 2(c) hereto. 

 3. Benefit: Governing Law. This Agreement shall inure to the benefit of, and be binding upon, the
respective successors and assigns of the parties hereto and shall be governed by and construed and interpreted in accordance with the Purchase Agreement, the internal laws of the State of Delaware, without regard to principles of conflicts of laws,
and applicable federal law. 
 4. Effect on Purchase Agreement. Nothing contained in this Agreement shall be deemed to supersede any
of the obligations, agreements, covenants, representations or warranties of Seller or Buyer contained in the Purchase Agreement. 
 [Signature page to follow] 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.

  

			
	SELLER:
	
	BANKFIRST
	
	  

	By:	 	  
	Its:	 	  
	
	BUYER:
	
	THE BANCORP, INC.
	
	  

	By:	 	
	Its:	 	

 Schedule 1(a) – Assumed Contracts 
 See attached. 

 Schedule 1(d) – Association BINS and ICAs 
 See attached. 

 Schedule 1(f) – Personal Property 
 See attached. 

 Schedule 1(g) – Intangible Rights and Property 
 See attached. 

 Schedule 2(b) – Deposit Accounts 
 See attached. 

 Schedule 2(c) – Miscellaneous 
 See attached. 

 EXHIBIT B 
 ASSIGNMENT AND ASSUMPTION OF BUILDING LEASE 
 THIS ASSIGNMENT AND ASSUMPTION OF BUILDING LEASE (the
“Agreement”) is effective as of                     , 2007, by and between BANKFIRST, a South Dakota banking association
(“Assignor”) and The Bancorp, Inc., a Delaware banking corporation (“Assignee”). 
 WITNESSETH THAT: 
 Assignor, in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration to it in hand paid by Assignee, the receipt and
sufficiency of which are hereby acknowledged, does hereby sell, assign, transfer and set over to Assignee, its successors and assigns, all of Assignor’s right, title, estate and interest, as tenant, in and to that certain Building Lease between
Marshall Bankfirst Corp., a Minnesota corporation, whose interest as landlord was assigned to Heineman Properties SPE, LLC, a South Dakota limited liability company, and Assignor, as tenant, dated December 1, 2006 (the “Lease”).

 From and after the date hereof, Assignee assumes and shall be responsible for and perform all of the obligations of the tenant accruing
subsequent to the date hereof under the Lease. Assignee shall indemnify, defend and hold Assignor harmless from any and all damages, costs, attorneys’ fees, expenses, obligations, losses, penalties, liabilities and claims arising out of the
failure of Assignee to perform its obligations under the Lease accruing after the date hereof, and to defend Assignor in respect to any of said obligations or Assignee’s default in connection therewith. 
 Assignor shall indemnify, defend and hold Assignee harmless from any and all damages, costs, attorneys’ fees, expenses, obligations, losses,
penalties, liabilities and claims arising out of any failure by Assignor to perform its obligations under the Lease accruing prior to the date hereof, and to defend Assignee in respect to any of said obligations or Assignor’s default in
connection therewith. 
 This Agreement and each and every part hereof shall be binding upon and inure to the benefit of Assignor, Assignee,
and their respective successors and assigns. 
 This Agreement is made and delivered and in all respects shall be governed by the law of the
State of South Dakota. 

 IN AGREEMENT, Assignor and Assignee have caused this Agreement to be executed effective as of the day and
year first above written. 
  

			
	ASSIGNOR:
	
	BANKFIRST
		
	By:	 	  

	Its:	 	  

	
	ASSIGNEE:
	
	The Bancorp, Inc.
		
	By	 	  

	Its:	 	  

 EXHIBIT C 
 REGISTRATION RIGHTS AGREEMENT 
 This REGISTRATION RIGHTS AGREEMENT, dated as of
                 , 2007 (this “Agreement”), is made by and among The Bancorp, Inc., a Delaware corporation (the “Company”), and
BankFirst, a South Dakota banking corporation. 
 RECITALS: 
 A. In connection with the Purchase and Assumption Agreement dated as of             
    , 2007 (the “Purchase Agreement”) by and between BankFirst and the Company, the Company has upon the terms and subject to the conditions of the Purchase Agreement, issued and sold to BankFirst
[            ] shares of common stock (         par value) of the Company (the “Common Shares”). 
 B. As part of the issuance of the Common Shares, and to induce BankFirst to execute and deliver the Purchase Agreement, the Company has agreed to provide
certain registration rights under the Securities Act of 1933, as amended (the “Securities Act”) and applicable state securities laws with respect to the Common Shares. 
 In consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Company and BankFirst hereby agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 Capitalized terms used
and not otherwise defined herein have the respective meanings given them set forth in the Purchase Agreement. In addition, as used in this Agreement, the following terms have the following meanings: 
 1.1 “Common Shares” means the [            ] shares of Common
Stock issued to BankFirst pursuant to the Purchase Agreement. 
 1.2 “Assignees” means any transferees or assignees of
BankFirst who agree to become bound by the provisions of this Agreement in accordance with Article IX hereof. 
 1.3
“Registrable Securities” means the Common Shares (without regard to any limitations on conversion or exercise) and any shares of capital stock issued or issuable from time to time (with any adjustments) in exchange for or otherwise
with respect to the Common Shares. 
 1.4 “Registration Period” means the period between the date of this Agreement and the
earlier of (i) the date on which all of the Registrable Securities have been sold and no further Registrable Securities may be issued in the future, or (ii) the date on which all the Registrable Securities may be immediately sold without
registration and without restriction (including without limitation as to volume by each holder thereof) as to the number of Registrable Securities to be sold, pursuant to Rule 144 or otherwise. 

 1.5 “Registration Statement” means a Registration Statement of the Company filed under
the Securities Act. 
 1.6 The terms “register,” “registered,” and “registration” refer to
a registration effected by preparing and filing a Registration Statement or statements in compliance with the Securities Act and pursuant to Rule 415 and the declaration or ordering of effectiveness of such Registration Statement by the SEC.

 1.7 “Rule 415” means Rule 415 under the Securities Act, or any successor Rule providing for offering securities on a
continuous basis, and applicable rules and regulations thereunder. 
 ARTICLE II 
 REGISTRATION 
 2.1 Mandatory
Registration. 
 (a) The Company will file with the SEC a Registration Statement on Form S-3 registering the Registrable Securities and no
other securities for resale within 180 days after the closing date as defined in the Purchase Agreement. If Form S-3 is not available at the time the Company is required to file a Registration Statement under this Section 2.1(a), then the
Company will file a Registration Statement on such form as is then available to effect a registration of the Registrable Securities within such 180-day period. 
 (b) To the extent allowable under the Securities Act and the rules promulgated thereunder (including Rule 416), the Registration Statement filed pursuant to Section 2.1(a) shall include the Registrable
Securities required to be covered under the applicable provision of Section 2.1(a) and such indeterminate number of additional shares of Common Stock as may become issuable to prevent dilution resulting from stock splits, stock dividends or
similar transactions. 
 2.2 Effectiveness of the Registration Statement. 
 (a) The Company will use its best efforts to cause the Registration Statement contemplated by Section 2.1 to be declared effective by the SEC as soon
as practicable after filing, and in any event no later than the 270thth day after the closing date of the Purchase Agreement (the “Required Effective Date”). 
 (b) The Company’s best efforts will include, but not be limited to, promptly responding to all comments received from the staff of the SEC. If the
Company receives notification from the SEC that the Registration Statement will receive no action or review from the SEC, then the Company will cause the Registration Statement to become effective within five business days after such SEC
notification. 
  

 2 

 (c) Once the Registration Statement is declared effective by the SEC, the Company will use its best
efforts to cause the Registration Statement to remain effective throughout the Registration Period, except as permitted under Section 3.1. 
 2.3 Intentionally omitted. 
 2.4 Intentionally omitted. 
 2.5 Piggyback Registrations. 
 (a) If,
at any time prior to the expiration of the Registration Period, a Registration Statement is not effective with respect to all of the Registrable Securities and the Company decides to register any of its securities for its own account or for the
account of others, then the Company will promptly give BankFirst written notice thereof and will use its best efforts to include in such registration all or any part of the Registrable Securities requested by BankFirst to be included therein
(excluding any Registrable Securities previously included in a Registration Statement). This requirement does not apply to Company registrations on Form S-4 or S-8 or their equivalents relating to equity securities to be issued solely in connection
with an acquisition of any entity or business or equity securities issuable in connection with stock option or other employee benefit plans. BankFirst must give its request for registration under this paragraph to the Company in writing within 15
days after receipt from the Company of notice of such pending registration. If the registration for which the Company gives notice is a public offering involving an underwriting, the Company will so advise BankFirst as part of the above-described
written notice. In that event, if the managing underwriter(s) of the public offering impose a limitation (which may be a complete exclusion) on the number of shares of Common Stock that may be included in the Registration Statement because, in such
underwriter(s)’ judgment, such limitation would be necessary to effect an orderly public distribution or reduce the number of securities which could be sold by the Company, then the Company will be obligated to include only such limited
portion, if any, of the Registrable Securities with respect to which BankFirst have requested inclusion hereunder. Any exclusion of Registrable Securities will be made pro rata among all holders of the Company’s securities seeking to include
shares of Common Stock in proportion to the number of shares of Common Stock sought to be included by those holders. However, the Company will not exclude any Registrable Securities unless the Company has first excluded all outstanding securities
the holders of which are not entitled by right to inclusion of securities in such Registration Statement or are not entitled pro rata inclusion with the Registrable Securities. If BankFirst or other person does not agree to the terms of such
underwriting or otherwise fails to comply with the terms of this Agreement, BankFirst or other person shall be excluded therefrom upon written notice from the Company or underwriter. Any Registrable Securities or other securities excluded or
withdrawn from such underwriting shall be withdrawn from such registration. 
 (b) No right to registration of Registrable Securities under
this Section 2.5 limits in any way the registration required under Section 2.1 above. The obligations of the Company under this Section 2.5 expire upon the earliest of (i) the effectiveness of the Registration Statement filed
pursuant to Section 2.1 above with respect to the Registrable Securities or the respective portion thereof, (ii) after the Company has afforded the opportunity 

  

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for BankFirst to exercise registration rights under this Section 2.5 for two registrations (provided, however, that if BankFirst has had any Registrable
Securities excluded from any Registration Statement in accordance with this Section 2.5, BankFirst may, subject to this paragraph (b), include in any additional Registration Statement filed by the Company the Registrable Securities so
excluded), or (iii) expiration of the Registration Period. 
 (c) The Company shall have the right to terminate or withdraw any
registration initiated by it under this Section 2.5 prior to the effectiveness of such registration whether or not BankFirst has elected to include securities in such registration. The expenses of such withdrawn registration shall be borne by
the Company. 
 2.6 Eligibility to use Form S-3. The Company represents and warrants that it meets the requirements for the use
of Form S-3 for registration of the resale by BankFirst of the Registrable Securities that are referred to in Section 2.1(a). The Company will file all reports required to be filed by the Company with the SEC in a timely manner so as to
preserve its eligibility for the use of Form S-3. 
 ARTICLE III 
 ADDITIONAL OBLIGATIONS OF THE COMPANY 
 3.1 Continued Effectiveness of
Registration Statement. The Company will use its best efforts to keep the Registration Statement covering the Registrable Securities effective under Rule 415 at all times during the Registration Period. The Company will file any necessary
amendment to the Registration Statement as soon as practicable, but in no event later than 20 business days after the necessity therefor arises. The Company will use its best efforts to cause such amendment to become effective as soon as is
practicable after the filing thereof, but in no event later than 90 days after the date on which the Company reasonably first determines (or reasonably should have determined) the need therefor. 
 3.2 Accuracy of Registration Statement. Any Registration Statement (including any amendments or supplements thereto and prospectuses contained
therein) filed by the Company covering Registrable Securities will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein, in light of the
circumstances in which they were made, not misleading. The Company will promptly prepare and file with the SEC such amendments (including post-effective amendments) and supplements to the Registration Statement and the prospectus used in connection
with the Registration Statement as may be necessary to permit sales pursuant to the Registration Statement at all times during the Registration Period, and, during such period, will comply with the provisions of the Securities Act with respect to
the disposition of all Registrable Securities of the Company covered by the Registration Statement until the termination of the Registration Period, or if earlier, until such time as all of such Registrable Securities have been disposed of in
accordance with the intended methods of disposition by the seller or sellers thereof as set forth in the Registration Statement. 
 3.3
Furnishing Documentation. The Company will furnish to BankFirst whose Registrable Securities are included in a Registration Statement, and to its legal counsel, 

  

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(a) promptly after each document is prepared and publicly distributed and filed with the SEC, one copy of any Registration Statement filed pursuant to
this Agreement and any amendments thereto, each preliminary prospectus and final prospectus and each amendment or supplement thereto; and, in the case of a Registration Statement filed under Section 2.1 or 2.5 above, each letter written by or
on behalf of the Company to the SEC and each item of correspondence from, or order issued by, the SEC or the staff of the SEC, in each case relating to such Registration Statement (other than any portion of any item thereof which contains
information for which the Company has sought confidential treatment); and (b) a number of copies of a prospectus, including a preliminary prospectus (if any), and all amendments and supplements thereto, and such other documents as BankFirst may
reasonably request in order to facilitate the disposition of the Registrable Securities owned by BankFirst. The Company will promptly notify by facsimile BankFirst of the effectiveness of the Registration Statement and any post-effective amendment.

 3.4 Additional Obligations. The Company will use its best efforts to (a) register and qualify the Registrable Securities
covered by a Registration Statement under such other securities or blue sky laws of such jurisdictions in the United States as BankFirst reasonably requests to the extent that registration under the laws of such jurisdiction is required,
(b) prepare and file in those jurisdictions any amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain their effectiveness during the Registration Period,
(c) take any other actions necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and (d) take any other actions reasonably necessary or advisable to qualify the Registrable
Securities for sale in such jurisdictions. Notwithstanding the foregoing, the Company is not required, in connection such obligations, to (i) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for
this Section 3.4, (ii) subject itself to general taxation in any such jurisdiction, (iii) file a general consent to service of process in any such jurisdiction, (iv) provide any undertakings that cause material expense or burden
to the Company, or (v) make any change in its charter or bylaws. 
 3.5 Underwritten Offerings. If BankFirst selects underwriters
reasonably acceptable to the Company for an underwritten offering of Registrable Securities, the Company will enter into and perform its obligations under an underwriting agreement in usual and customary form including, without limitation, customary
indemnification and contribution obligations, with the managing underwriter of such offering, but the Company will not be obligated to pay any fees or expenses of such underwriters related to the offering. 
 3.6 Suspension of Registration. 
 (a)
The Company will notify (by telephone and also by facsimile and reputable overnight courier) BankFirst of the happening of any event of which the Company has knowledge as a result of which the prospectus included in the Registration Statement as
then in effect includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.
The Company will make such notification as promptly as practicable after the Company becomes aware of the event (but in no event will the Company disclose to BankFirst any of the facts or circumstances regarding the event), will promptly (but in

  

 5 

 
no event more than ten business days) prepare a supplement or amendment to the Registration Statement to correct such untrue statement or omission, and will
deliver a number of copies of such supplement or amendment to BankFirst. The Company will use its best efforts to keep the length of any such suspension to as short a period as is practicable given the then existing circumstances and may so defer or
suspend the use of the Registration Statement no more than two times in any 18-month period, and provided, further, that, after deferring or suspending the use of the Registration Statement, the Company may not again defer or suspend the use of the
Registration Statement until a period of thirty days has elapsed after resumption of the use of the Registration Statement. Notwithstanding anything to the contrary contained herein or in the Purchase Agreement, if the use of the Registration
Statement is suspended by the Company, the Company will promptly give notice of the suspension to BankFirst, and will promptly notify BankFirst as soon as the use of the Registration Statement may be resumed. Notwithstanding anything to the contrary
contained herein or in the Purchase Agreement, the Company will cause the Transfer Agent to deliver unlegended shares of Common Stock to a transferee of BankFirst in accordance with the terms of the Purchase Agreement in connection with any sale of
Registrable Securities with respect to which BankFirst has entered into a contract for sale prior to receipt of notice of such suspension and for which BankFirst has not yet settled unless, in the opinion of Company’s legal counsel, such
delivery without legends would be in violation of applicable securities laws and/or otherwise subject the Company to liability. 
 (b)
Subject to the Company’s rights under Section 3.1, the Company will use its best efforts to prevent the issuance of any stop order or other suspension of effectiveness of a Registration Statement and, if such an order is issued, will use
its best efforts to obtain the withdrawal of such order at the earliest possible time and will promptly notify BankFirst (or, in the event of an underwritten offering, the managing underwriters) of the issuance of such order and the resolution
thereof. 
 3.7 Review by BankFirst. The Company will permit BankFirst’s legal counsel to review the Registration Statement and
all amendments and supplements thereto (as well as all requests for acceleration or effectiveness thereof) a reasonable period of time prior to their filing with the SEC, and will not file any document concerning BankFirst’s beneficial
ownership of securities of the Company or BankFirst’s intended method of disposition of Registrable Securities as to which such counsel reasonably objects based upon the inaccuracy or incompleteness of such information, unless such counsel
fails to notify the Company of his or her objection within 3 business days after receipt of the proposed Registration Statement, and unless otherwise required by law in the opinion of the Company’s counsel. The sections of any such Registration
Statement including information with respect to BankFirst, BankFirst’s beneficial ownership of securities of the Company or BankFirst’s intended method of disposition of Registrable Securities must conform to the information provided to
the Company by BankFirst. 
 3.8 Information. The Company will make generally available to its security holders as soon as
practicable, but not later than 90 days after the close of the period covered thereby, an earnings statement (in a form complying with the provisions of Rule 158 under the Securities Act) covering a 12-month period beginning not later than the
first day of the Company’s fiscal quarter next following the effective date of the Registration Statement. 
  

 6 

 3.9 Comfort Letter; Legal Opinion. If BankFirst requests an underwritten offering in accordance
with Section 3.5 above, then, at the request of the underwriters for the offering, on the date that Registrable Securities are delivered to the underwriters for sale in connection with the Registration Statement, the Company will furnish to
BankFirst and the underwriters (i) a letter, dated such date, from the Company’s independent registered public accounting firm, in form and substance as is customarily given by independent registered public accounting firms to underwriters
in an underwritten public offering, addressed to the underwriters; and (ii) an opinion, dated such date, from counsel representing the Company for purposes of the Registration Statement, in form and substance as is customarily given in an
underwritten public offering, addressed to the underwriters and BankFirst. 
 3.10 Due Diligence; Confidentiality. 
 (a) The Company will make available for inspection by BankFirst, any underwriter participating in any disposition pursuant to the Registration Statement,
and any attorney or accountant retained by BankFirst or such underwriter (collectively, the “Inspectors”), all pertinent financial and other records, pertinent corporate documents and properties of the Company (collectively, the
“Records”), as each Inspector reasonably deems necessary to enable the Inspector to exercise its due diligence responsibility in connection with or related to the contemplated offering. The Company will cause its officers, directors
and employees to supply all information that any Inspector may reasonably request for purposes of performing such due diligence. 
 (b) Each
Inspector will hold in confidence, and will not make any disclosure (except to BankFirst) of, any Records or other information that the Company determines in good faith to be confidential, and of which determination the Inspectors are so notified,
unless (i) the disclosure of such Records is necessary to avoid or correct a misstatement or omission in any Registration Statement, (ii) the release of such Records is ordered pursuant to a subpoena or other order from a court or
government body of competent jurisdiction, (iii) the information in such Records has been made generally available to the public other than by disclosure in violation of this or any other agreement (to the knowledge of the relevant Inspector),
(iv) the Records or other information was developed independently by an Inspector without breach of this Agreement, (v) the information was known to the Inspector before receipt of such information from the Company and is not subject to
any confidentiality restrictions or agreements, or (vi) the information was disclosed to the Inspector by a third party not under an obligation of confidentiality. The Company is not required to disclose any confidential information in the
Records to any Inspector unless and until such Inspector has entered into a confidentiality agreement (in form and substance satisfactory to the Company) with the Company with respect thereto, substantially in the form of this Section 3.10.
BankFirst will, upon learning that disclosure of Records containing confidential information is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt notice to the Company and allow the Company,
at the Company’s expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, the Records deemed confidential. Nothing herein will be deemed to limit BankFirst’s ability to sell Registrable
Securities in a manner that is otherwise consistent with applicable laws and regulations. 
  

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 (c) The Company will hold in confidence, and will not make any disclosure of, information concerning
BankFirst provided to the Company under this Agreement unless (i) disclosure of such information is necessary to comply with federal or state securities laws, or any exchange listing or similar rules and regulations, (ii) the disclosure of
such information is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release of such information is ordered pursuant to a subpoena or other order from a court or governmental body of competent
jurisdiction, (iv) such information has been made generally available to the public other than by disclosure in violation of this Agreement or any other agreement, (v) the information was known to the Company before receipt of such
information from BankFirst and is not subject to any confidentiality restrictions or agreements, or (vi) the information was disclosed to the Company by a third party not under an obligation of confidentiality or (vii) BankFirst consents
to the form and content of any such disclosure. If the Company learns that disclosure of such information concerning BankFirst is sought in or by a court or governmental body of competent jurisdiction or through other means, the Company will give
prompt notice to BankFirst prior to making such disclosure and allow BankFirst, at its expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, such information. 
 3.11 Listing. The Company will (i) cause all of the Registrable Securities covered by each Registration Statement to be listed on each
national securities exchange on which securities of the same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange, or (ii) to the extent
the securities of the same class or series are not then listed on a national securities exchange, secure the designation and quotation of all of the Registrable Securities covered by each Registration Statement on Nasdaq and, without limiting the
generality of the foregoing, arrange for at least two market makers to register with the National Association of Securities Dealers, Inc. as such with respect to such Registrable Securities. 
 3.12 Transfer Agent; Registrar. The Company will provide a transfer agent and registrar, which may be a single entity, for the Registrable
Securities not later than the effective date of the Registration Statement. 
 3.13 Share Certificates. The Company will cooperate
with BankFirst and with the managing underwriter(s), if any, to facilitate the timely preparation and delivery of certificates (not bearing any restrictive legends) representing Registrable Securities to be offered and sold pursuant to a
Registration Statement and will enable such certificates to be in such denominations or amounts as the case may be, and registered in such names as BankFirst or the managing underwriter(s), if any, may reasonably request. 
 3.14 Plan of Distribution. Subject to Section 3.17 hereof, at the request of BankFirst, the Company will promptly prepare and file with the
SEC such amendments (including post-effective amendments) and supplements to the Registration Statement, and the prospectus used in connection with the Registration Statement, as may be necessary in order to change the plan of distribution set forth
in such Registration Statement. The Company shall be required to prepare and file no more than two such amendments or supplements in any twelve month period. 
  

 8 

 3.15 Securities Laws Compliance. The Company will comply with all applicable laws related to any
Registration Statement relating to the sale of Registrable Securities and to offering and sale of securities and with all applicable rules and regulations of governmental authorities in connection therewith (including, without limitation, the
Securities Act, the Exchange Act and the rules and regulations promulgated by the SEC). 
 3.16 Further Assurances. The Company will
take all other reasonable actions as BankFirst or the underwriters, if any, may reasonably request to expedite and facilitate disposition by BankFirst of the Registrable Securities pursuant to the Registration Statement. 
 3.17 No Additional Selling Stockholders. The Company will not, and will not agree to, allow the holders of any securities of the Company to
include any of their securities in any Registration Statement under Section 2.1 hereof, or any amendment or supplement thereto under Section 3.2 hereof, without the consent of all of the holders of the Registrable Securities. 

ARTICLE IV 
 OBLIGATIONS OF
BANKFIRST 
 4.1 BankFirst Information. As a condition to the obligations of the Company to complete any registration pursuant to
this Agreement with respect to the Registrable Securities of BankFirst, BankFirst will furnish to the Company such information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable
Securities held by it as is reasonably required by the Company to effect the registration of the Registrable Securities. At least 10 business days prior to the first anticipated filing date of a Registration Statement for any registration under this
Agreement, the Company will notify BankFirst of the information the Company requires from BankFirst if BankFirst elects to have any of its Registrable Securities included in the Registration Statement. If, within three business days prior to the
filing date, the Company has not received the requested information from BankFirst, then the Company may file the Registration Statement without including Registrable Securities of BankFirst. Any and all information provided by BankFirst pursuant to
this Section 4.1 shall be true, accurate, correct and complete in all material respects. 
 4.2 Further Assurances. BankFirst
will cooperate with the Company, as reasonably requested by the Company, in connection with the preparation and filing of a Registration Statement pursuant to Section 2.1 hereof, and unless BankFirst has notified the Company in writing of
BankFirst’s election to exclude all of BankFirst’s Registrable Securities therefrom, any Registration Statement pursuant to Section 2.5 hereof. 
 4.3 Suspension of Sales. Upon receipt of any notice from the Company of the happening of any event of the kind described in Section 3.6, BankFirst will immediately discontinue disposition of Registrable
Securities pursuant to the Registration Statement covering such Registrable Securities until (i) it receives copies of a supplemented or amended prospectus contemplated by Section 3.6 or (ii) the Company advises BankFirst that a
suspension of sales under Section 3.6 has terminated. If so directed by the Company, BankFirst will deliver to the Company (at the expense of the Company) or destroy (and deliver to the Company a certificate of destruction) all copies in
BankFirst’s possession (other than a limited number of file copies) of the prospectus covering such Registrable Securities that is current at the time of receipt of such notice. 
  

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 4.4 Underwritten Offerings. 
 (a) If BankFirst determines to engage the services of an underwriter, BankFirst will enter into and perform obligations under an underwriting agreement,
in usual and customary form, including, without limitation, customary indemnification and contribution obligations, with the managing underwriter of such offering, and will take such other actions as are reasonably required in order to expedite or
facilitate the disposition of the Registrable Securities. 
 (b) Without limiting BankFirst’s rights under Section 2.1 hereof,
BankFirst may not participate in any underwritten distribution hereunder unless BankFirst (a) agrees to sell Registrable Securities on the basis provided in any underwriting arrangements, (b) completes and executes all questionnaires,
powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements, and (c) agrees to pay its pro rata share of all underwriting discounts and commissions and other
fees and expenses of investment bankers and any manager or managers of such underwriting, and legal expenses of the underwriter, applicable with respect to its Registrable Securities, in each case to the extent not payable by the Company under the
terms of this Agreement. 
 ARTICLE V 
 EXPENSES OF REGISTRATION 
 The Company will bear all reasonable expenses, other than underwriting
discounts and commissions and the expenses of the underwriters, incurred in connection with registrations, filings or qualifications pursuant to Articles II and III of this Agreement, including, without limitation, all registration, listing and
qualifications fees, printers and accounting fees, the fees and disbursements of counsel for the Company, and the reasonable fees and disbursements of BankFirst’s legal counsel not to exceed $30,000. 
 ARTICLE VI 
 INDEMNIFICATION 

 In the event that any Registrable Securities are included in a Registration Statement under this Agreement: 
 6.1 To the extent permitted by law, the Company will indemnify and hold harmless BankFirst, any underwriter (as defined in the Securities Act) for
BankFirst, any directors, officers or advisors of BankFirst or such underwriter and any person who controls BankFirst or such underwriter within the meaning of the Securities Act or the Exchange Act (each, an “Indemnified Person”)
against any losses, claims, damages, expenses or liabilities (joint or several) (collectively, and together with actions, proceedings or inquiries by any regulatory or self-regulatory organization, whether commenced or threatened in respect thereof,
“Claims”) to which any of them become subject under the Securities Act, the Exchange Act or otherwise, 

  

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insofar as such Claims arise out of or are based upon any of the following statements, omissions or violations in a Registration Statement filed pursuant to
this Agreement, any post-effective amendment thereof or any prospectus included therein: (a) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or any post-effective amendment thereof or
the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, (b) any untrue statement or alleged untrue statement of a material fact contained in the
prospectus (as it may be amended or supplemented) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein were made, not
misleading, or (c) any violation or alleged violation by the Company of the Securities Act, the Exchange Act or any other law, including without limitation any state securities law or any rule or regulation thereunder (the matters in the
foregoing clauses (a) through (c) being, collectively, “Violations”). Subject to the restrictions set forth in Section 6.3, the Company will reimburse BankFirst and each such underwriter or controlling person
and each such other Indemnified Person, promptly as such expenses are incurred and are due and payable, for any legal fees or other reasonable expenses incurred by them in connection with investigating or defending any Claim. Notwithstanding
anything to the contrary contained herein, the indemnification agreement contained in this Section 6.1 (i) does not apply to Claims arising out of or based upon a Violation that occurs in reliance upon and in conformity with information
furnished in writing to the Company by an Indemnified Person expressly for use in connection with the preparation of the Registration Statement or any such amendment thereof or supplement thereto, if such prospectus was timely made available by the
Company pursuant to Section 3.3 hereof; and (ii) does not apply to amounts paid in settlement of any Claim if such settlement is made without the prior written consent of the Company, which consent will not be unreasonably withheld. This
indemnity obligation will remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Persons and will survive the transfer of the Registrable Securities by BankFirst under Article IX of this Agreement.

 6.2 In connection with any Registration Statement in which BankFirst is participating, BankFirst will indemnify and hold harmless, to the
same extent and in the same manner set forth in Section 6.1 above, the Company, each of its directors, each of its officers who signs the Registration Statement, each person, if any, who controls the Company within the meaning of the Securities
Act or the Exchange Act, and any other shareholder selling securities pursuant to the Registration Statement and any of its directors and officers and any person who controls such shareholder within the meaning of the Securities Act or the Exchange
Act (each an “Indemnified Person”) against any Claim to which any of them may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such Claim arises out of or is based upon any Violation, in each case
to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished to the Company by BankFirst expressly for use in connection with such Registration Statement. Subject to the
restrictions set forth in Section 6.3, BankFirst will promptly reimburse the Company and each such other Indemnified Person, any legal or other expenses (promptly as such expenses are incurred and due and payable) reasonably incurred by them in
connection with investigating or defending any such Claim. However, the indemnity agreement contained in this Section 6.2 does not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written 

  

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consent of BankFirst, which consent will not be unreasonably withheld, and BankFirst will not be liable under this Agreement (including this Section 6.2
and Article VII) for the amount of any Claim that exceeds the net proceeds actually received by BankFirst as a result of the sale of Registrable Securities pursuant to such Registration Statement. This indemnity will remain in full force and effect
regardless of any investigation made by or on behalf of an Indemnified Person and will survive the transfer of the Registrable Securities by BankFirst under Article IX of this Agreement. 
 6.3 Promptly after receipt by an Indemnified Person under this Article VI of notice of the commencement of any action (including any governmental
action), such Indemnified Person will, if a Claim in respect thereof is to be made against any indemnifying party under this Article VI, deliver to the indemnifying party a written notice of the commencement thereof. The indemnifying party may
participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly given notice, assume control of the defense thereof with counsel mutually satisfactory to the indemnifying parties and the
Indemnified Person. In that case, the indemnifying party will diligently pursue such defense. After such notice from the indemnifying party, the indemnifying party will not be liable to the Indemnified Person under this Article VI for any legal
expenses subsequently incurred by the Indemnified Person in connection with the defense thereof except as set forth in the next sentence. If, in the reasonable opinion of counsel retained by the indemnifying party, the representation by such counsel
of the Indemnified Person and the indemnifying party would be inappropriate due to actual or potential conflicts of interest between the Indemnified Person and any other party represented by such counsel in such proceeding or the actual or potential
defendants in, or targets of, any such action including the Indemnified Person, and such Indemnified Person reasonably determines that there may be legal defenses available to such Indemnified Person that are different from or in addition to those
available to the indemnifying party, then the Indemnified Person is entitled to assume such defense and may retain its own counsel, with the reasonable fees and expenses of such counsel to be paid by the indemnifying party (subject to the
restrictions on settlement under Section 6.1 or Section 6.2, as applicable). The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action does not relieve an indemnifying
party of any liability to an Indemnified Person under this Article VI, except to the extent that the indemnifying party is prejudiced in its ability to defend such action. The indemnification expenses an indemnifying party is required to pay by
this Article VI will be made by periodic payments of the amount thereof during the course of the investigation or defense, as such expense, loss, damage or liability is incurred and is due and payable. Each Indemnified Person shall furnish such
information regarding itself or the claim in question as an Indemnifying Person may reasonably request in writing and shall be reasonably required in connection with the defense of such claim and litigation resulting therefrom. 
 ARTICLE VII 
 CONTRIBUTION

 To the extent that any indemnification provided for herein is prohibited or limited by law, the indemnifying party will make the
maximum contribution with respect to any amounts for which it would otherwise be liable under Article VI to the fullest extent permitted by law. 

  

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However, (a) no contribution will be made under circumstances where the maker would not have been liable for indemnification under the fault standards
set forth in Article VI, (b) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any seller of Registrable
Securities who was not guilty of such fraudulent misrepresentation, and (c) contribution (together with any indemnification or other obligations under this Agreement) by any seller of Registrable Securities will be limited in amount to the net
amount of proceeds received by such seller from the sale of such Registrable Securities. 
 ARTICLE VIII 
 EXCHANGE ACT REPORTING 
 In order to
make available to BankFirst the benefits of Rule 144 or any similar rule or regulation of the SEC that may at any time permit BankFirst to sell securities of the Company to the public without registration, the Company will use best efforts to:

 (a) File with the SEC in a timely manner, and make and keep available, all reports and other documents required of the Company under the
Securities Act and the Exchange Act so long as the Company remains subject to such requirements during the period of time that the filing and availability of such reports and other documents is required in order to permit BankFirst to use the
applicable provisions of Rule 144; and 
 (b) Furnish to BankFirst upon requests, so long as BankFirst holds Registrable Securities,
promptly upon BankFirst’s request, (i) a written statement by the Company that it has complied with the reporting requirements of Rule 144, the Securities Act and the Exchange Act, (ii) unless otherwise available at no charge by
access electronically to the SEC’s EDGAR filing system, a copy of the most recent annual or quarterly report of the Company and such other reports and documents filed by the Company with the SEC and (iii) such other information as may be
reasonably requested to permit BankFirst to sell such securities pursuant to Rule 144 without registration. 
 ARTICLE IX

 ASSIGNMENT OF REGISTRATION RIGHTS 
 The rights of BankFirst hereunder, including the right to have the Company register Registrable Securities pursuant to this Agreement, will be automatically assigned by BankFirst to transferees or assignees of all or
any portion of the Registrable Securities, but only if (a) the Assignee agrees in writing with the transferee or assignee to assign such rights, and a copy of such agreement is furnished to the Company within a reasonable time after such
assignment, (b) the Company is, within a reasonable time after such transfer or assignment, furnished with written notice of the name and address of such transferee or assignee and the securities with respect to which such registration rights
are being transferred or assigned, (c) after such transfer or assignment, the further disposition of such securities by the transferee or assignee is restricted under the Securities Act and applicable state securities laws, (d) at or
before the time the Company received the written notice contemplated by clause (b) of this sentence, the transferee or assignee agrees in writing with the Company to be bound by all of the provisions contained 

  

 13 

 
herein, (e) such transfer is made in accordance with any applicable requirements of the Purchase Agreement, and (f) the transferee is an
“accredited investor” as that term is defined in Rule 501 of Regulation D. Any transferee or assignee of BankFirst under this Article IX shall be deemed an “Assignee” for all purposes of this Agreement, and shall be entitled
to all rights of, and subject to all obligations (including indemnification obligations) of, BankFirst hereunder. 
 ARTICLE X

 AMENDMENT OF REGISTRATION RIGHTS 
 This Agreement may be amended and the obligations hereunder may be waived (either generally or in a particular instance, and either retroactively or prospectively) only with the written consent of the Company and
BankFirst. Any amendment or waiver effected in accordance with this Article X is binding upon each future holder of all such Registrable Securities and the Company. 
 ARTICLE XI 
 MISCELLANEOUS 
 11.1 Conflicting Instructions. A person or entity is deemed to be a holder of Registrable Securities whenever such person or entity owns of
record such Registrable Securities. If the Company receives conflicting instructions, notices or elections from two or more persons or entities with respect to the same Registrable Securities, the Company will act upon the basis of instructions,
notice or election received from the registered owner of such Registrable Securities. 
 11.2 Notices. Any notices required or
permitted to be given under the terms of this Agreement will be given and deemed received as set forth in the Purchase Agreement. 
 11.3
Waiver. Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or remedy, does not operate as a waiver thereof. 
 11.4 Governing Law. This Agreement will be governed by and interpreted in accordance with the laws of the State of Delaware without
regard to the principles of conflict of laws. The parties hereto hereby submit to the exclusive jurisdiction of the United States federal and state courts located in the State of Delaware with respect to any dispute arising under this Agreement, the
agreements entered into in connection herewith or the transactions contemplated hereby or thereby. 
 11.5 Severability. If any
provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision will be deemed modified in order to conform with such statute or rule of law. Any provision hereof that may prove invalid or
unenforceable under any law will not affect the validity or enforceability of any other provision hereof. 
 11.6 Entire Agreement.
This Agreement and the Purchase Agreement (including all schedules and exhibits thereto) constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof. There are no restrictions, promises, warranties

  

 14 

 
or undertakings, other than those set forth or referred to herein or therein. This Agreement supersedes all prior agreements and understandings among the
parties hereto with respect to the subject matter hereof. 
 11.7 Successors and Assigns. Subject to the requirements of
Article IX hereof, this Agreement inures to the benefit of and is binding upon the successors and assigns of each of the parties hereto. Notwithstanding anything to the contrary herein, including, without limitation, Article IX, the rights
of BankFirst hereunder are assignable to and exercisable by an affiliate of BankFirst, and a bona fide pledgee of the Registrable Securities in connection with BankFirst’s margin or brokerage accounts upon transfer of the Registrable Securities
to the pledgee without violation of the registration requirements of the Securities Act. 
 11.8 Use of Pronouns. All pronouns
refer to the masculine, feminine or neuter, singular or plural, as the context may require. 
 11.9 Headings. The headings of this
Agreement are for convenience of reference only, are not part of this Agreement and do not affect its interpretation. 
 11.10
Counterparts. This Agreement may be executed in two or more counterparts, each of which is deemed an original but all of which constitute one and the same agreement. This Agreement, once executed by a party, may be delivered to the
other party hereto by facsimile transmission, and facsimile signatures are binding on the parties hereto. 
 11.11 Further
Assurances. Each party will do and perform, or cause to be done and performed, all such further acts and things, and will execute and deliver all other agreements, certificates, instruments and documents, as another party may reasonably
request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby. 
 11.12 No Strict Construction. The language used in this Agreement is deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against
any party. 
 11.13 No Third-Party Beneficiaries. Other than as specifically provided herein, this Agreement is intended to inure to
the benefit of the parties hereto only, and no other party shall have any rights, express or implied, by reason of this Agreement. 
 11.14
Saturdays, Sundays, Holidays, Etc. If the last or appointed day for the taking of any action required or permitted hereby shall be a Saturday, Sunday, a nationally recognized holiday, or a state holiday in the State of Delaware, then such
action may be taken on the next succeeding business day. 
 [signature pages follow] 
  

 15 

 IN WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed as of the date first above written.

  

			
	THE BANCORP, INC
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	BANKFIRST
		
	By:	 	  

	Name:	 	
	Title:	 	

 [Signature Page to Registration Rights Agreement] 

 EXHIBIT D 
 ESCROW AGREEMENT 
 THIS ESCROW AGREEMENT (this “Escrow Agreement”) is made as of
this      day of July, 2007, by and among BankFirst, a South Dakota banking corporation (“Seller”), and The Bancorp, Inc., a Delaware corporation (“Buyer”), and Marshall & Ilsley
Trust Company N.A., a national association (“Escrow Agent”). 
 RECITALS 
 WHEREAS, the Seller and the Buyer have entered into a Purchase and Assumption Agreement (“Agreement”) for the purchase of certain assets
and assumption of certain liabilities by Buyer of Seller’s “Stored Value Solutions” business (the “Business”) dated as of the date hereof (the “Agreement”); 
 WHEREAS, pursuant to Section 2.1(a) of the Agreement, Buyer is required to deposit the sum of $1,000,000 (the “Earnest Money
Deposit”), by check or wire transfer of immediately available funds, with the Escrow Agent; and 
 WHEREAS, pursuant to
Section 7.5 of the Agreement, the Seller and Buyer have agreed to withhold a portion of the Purchase Price in the amount of $2,000,000.00 (together with any interest earned thereon following deposit, the “Escrow Amount”) to be
deposited, by check or wire transfer of immediately available funds, with the Escrow’s Agent; and 
 WHEREAS, the Earnest Money
Deposit and the Escrow Amount shall be held by the Escrow Agent in accordance with the terms and conditions contained in this Escrow Agreement; and 
 WHEREAS, the parties are entering into this Escrow Agreement so as to set forth the terms and conditions regarding the Escrow Agent’s holding of the Earnest Money Deposit and the Escrow Amount. 
 NOW, THEREFORE, the Seller, the Buyer and the Escrow Agent hereby agree as follows: 
 1.1 Capitalized terms used but not otherwise defined herein shall have the meanings assigned to them in the Agreement. 
 1.2 Buyer has delivered to the Escrow Agent the Earnest Money Deposit. Receipt of the Earnest Money Deposit is hereby acknowledged. The Earnest Money
Deposit shall be held by the Escrow Agent in a segregated, interest-bearing account, and shall be disbursed, as follows: 
  

	 	(a)	The Account. 

 (i) Buyer and Seller hereby authorize Escrow
Agent to invest the Earnest Money Deposit in the Marshall Prime Money Market Fund Class Y Shares (the “Fund.”) Buyer and Seller have received a prospectus for the Fund and recognize Escrow Agent or its affiliates may receive investment
advisory and other fees from the Fund. Escrow Agent shall reinvest all investment earnings until the Buyer and Seller instruct Escrow Agent on how to distribute the earnings. 

 (ii) Buyer shall be treated as the owner of the Earnest Money Deposit for federal and state income tax
purposes. Buyer will report all income, if any, that is earned on the Earnest Money Deposit in such amounts that are properly includible in any taxable year, and pay any taxes attributable thereto. Buyer agrees to furnish the Escrow Agent with a
completed Form W-9. 
  

	 	(b)	Disbursement. 

 (i) The Earnest Money Deposit shall be
disbursed as may be directed by Seller and Buyer pursuant to a jointly executed written notice to the Escrow Agent. 
 (ii) If Seller shall
deliver to Escrow Agent and Buyer a written notice stating that Buyer has failed to close the transaction contemplated by the Agreement (the “Transaction”) after all conditions to Buyer’s obligation to close have been satisfied or
waived, and Buyer does not object thereto by notice to Escrow Agent and Seller within 30 days following receipt of Seller’s notice by Escrow Agent, then the Earnest Money Deposit shall be disbursed to Seller promptly (and in any event within
three business days after expiration of such 30 day period). 
 (iii) If Buyer shall deliver to Escrow Agent and Seller a written notice
stating that Seller’s representations or warranties under the Agreement were or are untrue or incorrect in any material respect, or that Seller has breached in any material respect any covenant contained in the Agreement, or that Seller has
failed to obtain any consents necessary to the Transaction, or that Buyer is terminating the Agreement pursuant to Section 8.1(b) of the Agreement, or that Seller has failed to close the Transaction (despite Buyer being ready, willing and able
to close), or that Buyer has been unable to obtain all regulatory approvals necessary for the consummation of the Transaction by September 30, 2007 (as such date may be extended by Buyer pursuant to the Agreement), and Seller does not object
thereto within 30 days following receipt of such notice by Escrow Agent, then the Earnest Money Deposit shall be disbursed to Buyer promptly (and in any event within three business days after expiration of such 30 day period). 
 (iv) If Buyer shall object to Seller’s notice delivered pursuant to Section 1.3(b) or Seller shall object to Buyer’s notice delivered
pursuant to Section 1.3(c) within the 30 day period by delivering written notice to Escrow Agent and Seller or Buyer, as the case may be (an “Objection Notice”), that such party disputes the other party’s claim, such claim shall
be resolved pursuant to Section 1.5 of this Escrow Agreement. 
 1.3 On the Closing of the Agreement, Buyer will deliver to the Escrow
Agent the Escrow Amount and receipt of the Escrow Amount shall be acknowledged. The Escrow Amount shall be held by the Escrow Agent in a segregated, interest-bearing account and shall be held and distributed as set forth in Section 1.4 of this
Escrow Agreement. 

 1.4 The Escrow Amount shall be held and disbursed as follows: 
  

	 	(a)	The Account. 

 (i) Buyer and Seller hereby authorize Escrow
Agent to invest the Escrow Amount in the Marshall Prime Money Market Fund Class Y Shares (the “Fund.”) Buyer and Seller have received a prospectus for the Fund and recognize Escrow Agent or its affiliates may receive investment advisory
and other fees from the Fund. Escrow Agent shall reinvest all investment earnings until the Buyer and Seller instruct Escrow Agent on how to distribute the earnings. 
 (ii) Seller shall be treated as the owner of the Escrow Amount for federal and state income tax purposes. Seller will report all income, if any, that is earned on the Escrow Amount in such amounts that are properly
includible in any taxable year, and pay any taxes attributable thereto. Seller agrees to furnish the Escrow Agent with a completed Form W-9. 
  

	 	(b)	Disbursement. 

 (i) The Escrow Amount shall be disbursed as
may be directed by Seller and Buyer pursuant to a jointly executed written notice to the Escrow Agent. 
 (ii) From time to time for a period
of six months following the Closing Date under the Agreement, Buyer may submit a notice (an “Indemnity Notice”) to Escrow Agent and Seller specifying in reasonable detail the nature and dollar amount of any indemnification claim (a
“Claim”) it may have under Article VII of the Agreement. Buyer may make more than one Claim with respect to any underlying state of facts. If Seller delivers an Objection Notice to Buyer and Escrow Agent that it disputes the Claim
described in such Indemnity Notice within thirty (30) days following receipt by Escrow Agent of the Indemnity Notice regarding such Claim, such Claim shall be resolved as provided in Section 1.5 of this Escrow Agreement. If no Objection
Notice is received by Buyer and Escrow Agent within such 30-day period, then the amount of Buyer Losses specified by Buyer in such Indemnity Notice shall be deemed established for purposes of this Escrow Agreement and the Agreement and, at the end
of such thirty (30) day period, Escrow Agent shall promptly (and in any event within three (3) business days after the expiration of such 30-day period) deliver to Buyer for application to such Claim the amount of Losses specified in such
Indemnity Notice. 
 1.5 If an Objection Notice is given pursuant to Sections 1.3 or 1.4 of this Escrow Agreement, Escrow Agent shall make
payment with respect thereto only in accordance with (i) joint written instructions of Buyer and Seller or (ii) a final non-appealable order of a court of competent jurisdiction. Notwithstanding the foregoing, to the extent an objecting
party does not dispute a portion of the amount claimed in any notice pursuant to Section 1.3 or Section 1.4, the 

 
objecting party shall, in its applicable Objection Notice, authorize Escrow Agent to deliver, and Escrow Agent shall promptly (and in any event within three
(3) business days after receipt of the applicable Objection Notice) deliver, the undisputed amount. 
  

	 	1.6	(a) Six months following the Closing Date (the “Release Date”), Escrow Agent shall release to stockholder Seller the remainder of the Escrow Fund, if any (the
“Release Amount”), save and except for an amount equal to the aggregate amount of all outstanding Uncontested Claims, Resolved Claims or Pending Claims, if any (such Claims being referred to herein as the “Release Claims” and
such amount, if any, being referred to herein as the “Release Claim Amount”). 

 After the Release Date, the Release
Claim Amount shall continue to be held by Escrow Agent until the resolution, on an individual claim basis, of each of the Release Claims, and shall be distributed by Escrow Agent to Buyer or Seller, as, the case may be, upon resolution of each such
Release Claim in the manner described in Section 1.5 of this Escrow Agreement. 
  

	 	(b)	Notwithstanding the foregoing, if, prior to the Release Date: 

 (i) Buyer has delivered a written notice to Seller and Escrow Agent (A) specifying in reasonable detail the nature of any claim it may have under the Agreement and (B) certifying that Buyer has reasonably determined in good faith
that it is unable to specify the amount of such claim and that the amount of such claim could equal or exceed the amount of the Escrow Fund, then the entire Escrow Fund shall be included in the Release Claim Amount; or 
 (ii) Buyer has delivered a written notice to Seller and Escrow Agent (A) specifying in reasonable detail the nature of any claim it may have under
the Agreement and (B) certifying that Buyer has reasonably determined in good faith that it is unable to specify the amount of such claim and that the maximum amount of such claim will be less than the amount of the Escrow Fund, then such
maximum amount shall be included in the Release Claim Amount. 
  

	 	(c)	At least two (2) business days prior to any release to be made under this Section 1.6, Escrow Agent shall send written notice to Buyer and Seller specifying the amount of
such release. 

 1.7 Any notice given to any party hereto shall be in writing and simultaneously shall be sent to the other
parties hereto. All notices and other communications required or permitted hereunder shall be in writing and shall be deemed to have been duly given or sent (a) when received, if dispatched by registered or certified mail (return receipt
requested), (b) when received, if delivered in hand or by facsimile transmission with a copy thereof sent by reputable overnight courier which requires a signature of the receiving party, or (c) on the following business day, if dispatched
by a reputable overnight courier which requires a signature of the receiving party, in each case to the party intended at its address as follows (or at such other address as may hereafter be specified by such party from time to time by like
notices): 

 If to the Buyer, to: 
 The Bancorp, Inc. 
 405 Silverside Road 
 Wilmington, DE 19809 
 Attn: Frank Mastrangelo

 With a copy to: 
 Ledgewood

 1900 Market Street 
 Philadelphia, P A 19103 
 Attn: J. Baur Whittlesey 
 Fax No.: 215-735-8513 
 If to the Seller, to: 
 C/O Marshall BankFirst Corporation 
 225 South
Sixth Street Suite 2900 
 Minneapolis, Minnesota 55402 
 Attn: Dennis Mathisen 
 Fax No.: (612) 376-1331 
 With a copy to: 
 Lindquist & Vennum
P.L.L.P. 
 4200 IDS Center 
 80
South 8th Street 
 Minneapolis, Minnesota 55402 
 Attn: J. Kevin Costley 
 Fax No.: (612) 371-3207 
 If to the Escrow Agent to: 
 Marshall & Ilsley Trust Company N.A. 
 11455 Viking Dr. 
 Eden Prairie, Minnesota 55343 
 Attn: Eileen
Bruckert 
 Fax No.: (952) 918-1188 
 1.8 In the event of a dispute arising with respect to the rights of the Seller or the Buyer to receive all or any portion of either the Earnest Money Deposit or the Escrow Amount, the Escrow Agent shall have the right to place the Earnest
Money Deposit or the Escrow Amount, as the case may be, into court and commence an action in interpleader in order to obtain a judicial determination as to the party legally entitled to receive such amount. 

 1.9 Upon receipt of a court order, the Escrow Agent shall act as instructed by such court order.

 1.10 Buyer and Seller jointly and severally agree to indemnify and hold Escrow Agent harmless from and against any and all losses,
liabilities, claims, actions, damages and expenses, including reasonable attorneys’ fees and disbursements, arising out of and in connection with this Agreement, as follows. 
  

	 	(a)	The Escrow Agent shall not be liable for any error in judgment or for any act done or omitted by it in good faith, or for any mistake of fact or law and is released and exculpated
from all liability hereunder, except for willful misconduct. 

  

	 	(b)	The Escrow Agent shall not be required to take notice of any default by the Seller or the Buyer or to take any action, other than as provided in this Agreement.

  

	 	(c)	The Escrow Agent shall incur no liability in acting upon any signature, notice, request, waiver, consent, receipt, or other paper or document believed by the Escrow Agent to be
genuine, and the Escrow Agent may assume that any person purporting to give the Escrow Agent any notice or advice in accordance with the provisions hereof has been duly authorized to do so, and Seller and Buyer each hereby jointly and severally
indemnifies, defends, and holds harmless the Escrow Agent from and against any and all losses, costs, expenses, claims, damages and liabilities, including, without limitation, attorneys’ fees, which the Escrow Agent may suffer or incur as the
Escrow Agent hereunder unless caused by the Escrow Agent’s willful refusal or willful failure to act pursuant to the terms hereof. 

  

	 	(d)	The Escrow Agent shall not be under any obligation to take any legal action in connection with this Escrow Agreement or towards its enforcement or to appear in, prosecute or defend
any action or legal proceeding that, in the opinion of the Escrow Agent, would or might involve the Escrow Agent in any cost, expense, loss or liability unless, and as often as required by the Escrow Agent, the Escrow Agent shall be furnished with
security and indemnity satisfactory to the Escrow Agent against all such costs, expenses, losses or liability. 

  

	 	(e)	The Escrow Agent shall be entitled to consult with other counsel in connection with its duties hereunder. The Buyer and the Seller each jointly and severally agrees to reimburse the
Escrow Agent for its costs and expenses, including, without limitation, attorneys’ fees (either paid to retained attorneys or representing the fair value of legal services rendered by the Escrow Agent to itself) incurred as a result of any
dispute or litigation concerning this Escrow Agreement. 

 1.11 The Escrow Agent may resign upon thirty (30) days’
written notice to the Buyer and Seller. The Escrow Agent may be removed and replaced effective upon thirty (30) days’ written notice given to the Escrow Agent by both Buyer and Seller. In the event of a resignation or removal, the Buyer
and Seller shall jointly appoint a successor Escrow Agent. The Escrow Agent shall deliver the balance of the moneys or assets then in its possession to the Successor 

 
Escrow Agent and its duties shall end. If the Buyer and Seller fail to appoint a Successor Escrow Agent, the Escrow Agent may appoint a successor or petition
any court of competent jurisdiction for the appointment of a successor escrow agent, and any such resulting appointment shall be binding on all the parties. 
 1.12 The Escrow Agent shall be entitled to compensation of $2,500 per year for its services, and shall be entitled to reimbursement of its out-of-pocket expenses, including, but not by way of limitation, the fees and
costs of attorneys or agents which may be reasonably necessary in connection with the performance of its duties under this Escrow Agreement. Escrow Agent’s annual fee of $2,500 shall be payable in advance upon signing and on each anniversary
date of this Escrow Agreement. In addition, Escrow Agent shall be paid $150 per hour for extraordinary services and shall be reimbursed for all reasonable expenses, disbursements, and advances (including outside counsel fees) incurred in the
performance of its duties under this Escrow Agreement. Invoices for fees and expenses shall be sent to Buyer and Seller, and Buyer and Seller shall remit payment to Escrow Agent within ten (10) days of receipt of an invoice from Escrow Agent;
provided, however, that no invoice shall be required to be sent for the initial Escrow Agent’s fee. In the event payment is not received on a timely basis, Escrow Agent may charge either the Earnest Money Deposit or the Escrow Amount for the
amount of the invoice. The amounts due to Escrow Agent under this Section 1.12 are in addition to any investment advisory and other fees that may be paid to Escrow Agent and its affiliates under Sections 1.2(a)(i) and l.4(a)(i). Buyer and
Seller agree as between themselves that each shall pay one-half of any amount due under this Section 1.12, but Buyer and Seller shall be jointly and severally liable to Escrow Agent for any such amounts. 
 1.13 This Escrow Agreement shall terminate upon distribution by Escrow Agent of all amounts held pursuant to this Escrow Agreement. Buyer and Seller
shall be liable for any unpaid fees pursuant to this Escrow Agreement, which shall be paid to Escrow Agent concurrently with any such termination. 
 1.14 Escrow Agent shall furnish the Buyer and Seller with a monthly statement of the amounts held by Escrow Agent pursuant to this Escrow Agreement. 
 1.15 This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. This Agreement shall not be assignable. This Agreement shall be binding upon and inure to the benefit of
the parties and their successors. 
 1.16 This Escrow Agreement may be amended or modified and any term of this Escrow Agreement may be
waived if such amendment, modification or waiver is in writing and signed by all parties. 
 1.17 This Escrow Agreement constitutes the
entire agreement between the parties relating to the subject matter of this Escrow Agreement and supersedes any prior and contemporaneous understandings, agreements or representations by or among the parties, written or oral, that may have related
in any way to the subject matter hereof or thereof. 

 IN WITNESS WHEREOF the parties have caused this Escrow Agreement to be executed as of the date first
above written. 
  

					
	BUYER:	 	THE BANCORP, INC.
			
		 	By:	 	  

		 	Name:	 	
		 	Title:	 	
		
	SELLER:	 	BANKFIRST
			
		 	By:	 	  

		 	Name:	 	
		 	Title:	 	
		
	ESCROW AGENT:	 	MARSHALL & ILSLEY TRUST COMPANY N.A.
			
		 	By:	 	  

		 	Name:	 	
		 	Title:2007 Long Term Incentive Plan

 Exhibit 10.26 
 WASTE INDUSTRIES USA, INC. 
 2007 LONG TERM INCENTIVE PLAN 
 ARTICLE I 
 ESTABLISHMENT, PURPOSE AND TERM

 1.1 Establishment. The Waste Industries USA, Inc. 2007 Long Term Incentive Plan ("Plan") is hereby established by Waste
Industries USA, Inc. ("Company"), effective as of the Effective Date. Subject to Section 13.1, Awards may be granted as provided herein for the term of the Plan. 
 1.2 Purposes. The purposes of the Plan are to foster and promote the long term financial success of the Company and increase shareholder value by
motivating performance through incentive compensation. The Plan also is intended to encourage Participant ownership in the Company, attract and retain talent, and enable Participants to participate in the long-term growth and financial success of
the Company. In addition, the Plan provides the ability to make Awards linked to the profitability of the Company’s businesses and increases in shareholder value. 
 1.3 Term. The term of the Plan shall extend from the Effective Date until the tenth anniversary thereof. No additional Awards shall be made after the expiration of the term, but outstanding awards shall be
administered in accordance with the provisions thereof. The Plan shall continue in effect until all matters relating to the settlement of Awards and administration of the Plan have been completed. 
 ARTICLE II 
 DEFINITIONS 
 For purposes of the Plan, the following terms are defined as set forth below: 
 2.1 "Affiliate" means any individual, corporation, partnership, association, limited liability company, joint stock company, trust, unincorporated
association or other entity that directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, the Company. 
 2.2 "Agreement" means any agreement entered into pursuant to the Plan by which an Award is granted to a Participant. 
 2.3 "Award" means any Stock Option, Stock Appreciation Right, Restricted Stock, Deferred Stock or Performance Award granted to a Participant under the Plan. Awards shall be subject to the terms and conditions
of the Plan and shall be evidenced by an Agreement 

 
containing such additional terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall deem desirable. 
 2.4 "Beneficiary" means any person or other entity which has been designated by a Participant in his or her most recent written beneficiary
designation filed with the Committee to receive the compensation specified under the Plan to the extent permitted. If there is no designated beneficiary, then the term means any person or other entity entitled by will or the laws of descent and
distribution to receive such compensation. 
 2.5 "Board of Directors" or "Board" means the Board of Directors of the Company.

 2.6 "Cause" means, unless otherwise specifically provided in an Agreement, any act or omission which permits the Company to
terminate the written employment agreement or arrangement between the Participant and the Company or an Affiliate for "Cause" as defined in such agreement or arrangement, or in the event there is no such agreement or arrangement or the agreement or
arrangement does not define the term "Cause," then "Cause" means: (a) the conviction or nolo contendere plea of a Participant for a felony under federal law or the law of the state in which such action occurred; (b) the misappropriation of
any of the Company’s assets or business opportunities; (c) any act of dishonesty or misconduct on the part of Participant which results or is intended to result in material damage to the Company’s business or reputation; or
(d) the willful, deliberate, substantial or continued failure on the part of the Participant to perform his or her employment duties in any material manner, including, without limitation, Participant’s failure to comply with the
Company’s Code of Conduct or other policies then in effect. 
 2.7 "Change in Control" means: 
 2.7.1 the acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a
"Person") of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of fifty percent (50%) or more of either (a) the then-outstanding shares of Stock (the "Outstanding Company Shares") or
(b) the combined voting power of the then-outstanding voting securities (the "Outstanding Voting Securities") of the Company (the "Outstanding Company Voting Securities"); provided that, for purposes of this definition, the
following acquisitions shall not constitute a Change of Control: (i) any acquisition of Company securities directly from the Company; (ii) any acquisition of Company securities by the Company; and (iii) any acquisition of Company
securities by any employee benefit plan (or related trust) sponsored or maintained by the Company or any of its Affiliates; 
 2.7.2 the event occurring when individuals who, as of the day after the Effective Date, constitute the Board (the "Incumbent Board") cease for any reason to constitute at least a majority of the Board; provided that any individual
becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered
as though such individual 

  

 2 

 
were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual
or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; 
 2.7.3 the consummation of a merger or consolidation involving the Company or a sale or other disposition of all or substantially all of
the assets of the Company (each, a "Business Combination"), in each case unless, following such Business Combination, all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Company Shares
immediately prior to such Business Combination beneficially own, directly or indirectly, either (a) in the event of a merger or consolidation of the Company more than fifty percent (50%) of the Outstanding Company Voting Securities
immediately following the consummation of the Business Combination or (b) in the event the Business Combination results in another corporation ("New Parent Corporation") owning the Company or all or substantially all of the
Company’s assets either directly or through one or more subsidiaries, more than fifty percent (50%) of the Outstanding Voting Securities of the New Parent Corporation; or 
 2.7.4 the approval by the shareholders of the Company of a complete liquidation or dissolution of the Company. 
 2.8 "Code" means the Internal Revenue Code of 1986, as amended from time to time, and any successor thereto. 
 2.9 "Commission" means the Securities and Exchange Commission or any successor thereto. 
 2.10 "Committee" means the committee of the Board responsible for granting and administering Awards under the Plan, which initially shall be the
Compensation Committee of the Board, until such time as the Board may designate another committee. The Committee shall consist solely of two or more directors and each member of the Committee shall be a "non-employee director" within the meaning of
Rule 16b-3 and also an "outside director" under Section 162(m) of the Code. In addition, each member of the Committee shall satisfy any independence or other corporate governance standards imposed by The Nasdaq National Market or other
securities market on which the Stock shall be listed from time to time. 
 2.11 "Company" means Waste Industries USA, Inc., a North
Carolina corporation, and includes any successor or assignee corporation or corporations into which the Company may be merged, changed or consolidated; any corporation for whose securities the securities of the Company shall be exchanged; and any
assignee of or successor to substantially all of the assets of the Company. Wherever the context of the Plan so admits or requires, "Company" also means "Affiliate." 
  

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 2.12 "Covered Employee" means a Participant who is determined to be a "covered employee" within
the meaning of Section 162(m) of the Code. 
 2.13 "Deferred Stock" means a right granted to a Participant under Section 9.1
hereof to receive Stock at the end of a specified deferral period. 
 2.14 "Disability" has the meaning provided by Code
Section 22(e)(3), except to the extent otherwise required by Code Section 409A(a)(2)(C) with respect to any Award that is subject to Code Section 409A. The determination of Disability for purposes of this Plan shall not be
construed to be an admission of disability for any other purpose. 
 2.15 "Effective Date" means the date of approval of the Plan by
the shareholders of the Company. 
 2.16 "Exchange Act" means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder. 
 2.17 "Exercise Price" means the price that a Participant must pay to exercise an Award or the
amount upon which the value of an Award is based. Unless approved by the Company's shareholders, in no event may the Exercise Price per share of Stock covered by an Option, or the Exercise Price of a Stock Appreciation Right, be reduced, directly or
indirectly, through the technique commonly known as "repricing" or through (i) the cancellation and regrant of such Award or (ii) the surrender and cancellation of such Award for either a cash payment or issuance of a different type of
Award. 
 2.18 "Fair Market Value" means, as of any given date, the closing market price on the NASDAQ Stock Market (or such other
public trading market on which the Stock is traded) on that date. If there is no regular public trading market for such Stock, the Fair Market Value of the Stock shall be determined by the Committee in good faith. In each case, Fair Market Value
shall be determined without regard to whether the Stock is restricted or represents a minority interest. 
 2.19 "Grant Date" means
the date as of which an Award is granted pursuant to the Plan. In no event may the Grant Date be earlier than the Effective Date. 
 2.20
"Incentive Stock Option" means any Option that is intended to be, is designated as, and actually qualifies as, an "incentive stock option" within the meaning of Section 422 of the Code. 
 2.21 "Non-Qualified Stock Option" means a Stock Option that is not an Incentive Stock Option. 
 2.22 "Option Period" means the period during which the Option shall be exercisable in accordance with an Agreement and Article VI. 
  

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 2.23 "Participant" means a person who satisfies the eligibility conditions of Article V and to
whom an Award has been granted by the Committee under the Plan. In the event that a Representative is appointed for a Participant, then the term "Participant" shall mean such appointed Representative. Notwithstanding the appointment of a
Representative, the term "Termination of Employment" shall mean the Termination of Employment of the Participant. 
 2.24 "Performance
Award" means an Award consisting of Performance Shares, Performance Units or other Award described in Article X that is dependent upon the achievement of Performance Goals. 
 2.25 "Performance Goals" mean the level of performance established by the Committee as the Performance Goal with respect to a Performance Measure.
Performance Goals may vary from Performance Period to Performance Period and from Participant to Participant and may be established on a stand-alone basis, in tandem or in the alternative. 
 2.26 "Performance Measure" means any measure based on any of the performance criteria set out in this Section, either alone or in any combination,
and, if not based on individual performance, on either a consolidated or a division or business unit level, as the Committee may determine: individual Participant financial or non-financial performance goals; sales; cash flow; cash flow from
operations; operating profit or income; net income; operating margin; net income margin; return on net assets; economic value added; return on total assets; return on equity; return on total capital; total shareholder return; revenue; revenue
growth; earnings before interest, taxes, depreciation and amortization ("EBITDA"); EBITDA growth; basic earnings per share; diluted earnings per share; funds from operations per share and per share growth; cash available for distribution;
cash available for distribution per share and per share growth; share price performance on an absolute basis and relative to an index of earnings per share or improvements in the Company's attainment of expense levels; or implementation or
completion of critical projects. The foregoing criteria shall have any reasonable definitions that the Committee may specify, which may include or exclude any or all of the following items as the Committee may specify: extraordinary, unusual or
non-recurring items; effects of accounting changes; effects of financing activities; expenses for restructuring or productivity initiatives; other non-operating items; spending for acquisitions; effects of divestitures; and effects of litigation
activities and settlements. Any such performance criterion or combination of such criteria may apply to the Participant's Award opportunity in its entirety or to any designated portion or portions of the Award opportunity, as the Committee may
specify. In the event Code Section 162(m) or applicable tax or other laws change to permit the Committee discretion to alter the governing performance measures with respect to any Covered Employee without obtaining shareholder approval of such
changes, the Committee shall have sole discretion to make such changes without obtaining shareholder approval. Performance Measures may vary from Performance Period to Performance Period and from Participant to Participant. 
 2.27 "Performance Period" means the time period during which a Performance Award shall be earned shall be the "Performance Period," and shall be
at least one (1) fiscal year in length, unless otherwise determined by the Committee. Performance Awards shall be subject to Performance Goals which shall be established by the Committee. 
  

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 2.28 "Performance Unit" means a right granted pursuant to the terms and conditions established by
the Committee which is described in Section 10.1. 
 2.29 "Performance Share" means a right granted pursuant to the terms and
conditions established by the Committee which is described in Section 10.1. 
 2.30 "Plan" means the Waste Industries USA, Inc.
2007 Long Term Incentive Plan, as herein set forth and as may be amended from time to time. 
 2.31 "Representative" means
(a) the person or entity acting as the executor or administrator of a Participant's estate pursuant to the last will and testament of a Participant or pursuant to the laws of the jurisdiction in which the Participant had the Participant's
primary residence at the date of the Participant's death; (b) the person or entity acting as the guardian or temporary guardian of a Participant; (c) the person or entity which is the Beneficiary of the Participant upon or following the
Participant's death; or (d) any other person, if any, to whom an Award has been permissibly transferred under Section 13.9; provided that only one of the foregoing shall be the Representative at any point in time as determined under
applicable law and recognized by the Committee. 
 2.32 "Restricted Stock" means Stock granted to a Participant under Section 8.1
hereof and which is subject to certain restrictions and to a risk of forfeiture or repurchase by the Company. 
 2.33 "Rule 16b-3"
means Rule 16b-3, as from time to time in effect and applicable to the Plan and Participants, promulgated by the Commission under Section 16 of the Exchange Act. 
 2.34 "Stock" means the Company's common stock, whether presently or hereafter issued, and any other stock or security resulting from adjustment thereof as described hereinafter.  
 2.35 "Stock Appreciation Right" means a right granted under Section 7.1. 
 2.36 "Stock Option" or "Option" means a right, granted to a Participant under Section 6.1 hereof, to purchase Stock at a specified
price during specified time periods. 
 2.37 "Termination of Employment" means the occurrence of any act or event whether pursuant to
an employment agreement or otherwise that actually or effectively causes or results in the person's ceasing, for whatever reason, to be an officer or employee of the Company or of any Affiliate, including, without limitation, death, Disability,
dismissal, severance at the election of the Participant, or severance as a result of the discontinuance, liquidation, sale or transfer by the Company or its Affiliates of a business owned or operated by the Company or its Affiliates. With respect to
any non-employee member of the Board, Termination of Employment means the termination of a Participant’s status as a non-employee director of the Board. With respect to any other person who is not an employee with respect to the Company or an
Affiliate, the Agreement shall establish what act or event shall constitute a Termination of Employment for purposes of the Plan. A Termination of Employment shall occur with respect to an employee 

  

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who is employed by an Affiliate if the Affiliate shall cease to be an Affiliate and the Participant shall not immediately thereafter become an employee of
the Company or an Affiliate. 
 In addition, certain other terms used herein have definitions given to them in the first place in which they
are used. 
 ARTICLE III 
 ADMINISTRATION 
 3.1 Committee Structure. The Plan shall be administered by the Committee. A majority of the
Committee shall constitute a quorum at any meeting thereof (including telephone conference) and the acts of a majority of the members present, or acts approved in writing by the entire Committee without a meeting, shall be the acts of the Committee
for purposes of this Plan. Any member of the Committee may resign upon notice to the Board. The Board shall have the authority to remove, replace or fill any vacancy of any member of the Committee upon notice to the Committee and the affected
member. 
 3.2 Committee Actions. The Committee may authorize any one or more of its members or an officer of the Company to execute
and deliver documents on behalf of the Committee. The Committee may allocate among one or more of its members, or may delegate to one or more of its agents, such duties and responsibilities as it determines, provided that the Committee shall not
delegate the authority to grant Awards. A member of the Committee shall be recused from Committee action regarding an Award granted or to be granted to such member. 
 3.3 Committee Authority. Subject to applicable law, the Company's certificate of incorporation and by-laws, the Committee’s charter or the terms of the Plan, the Committee shall have the authority:

 3.3.1 to select those persons to whom Awards may be granted from time to time; 
 3.3.2 to determine whether and to what extent Awards are to be granted hereunder; 
 3.3.3 to determine the number of shares of Stock to be covered by each Award granted hereunder; 
 3.3.4 to determine the terms and conditions of any Award granted hereunder (including any provisions deemed necessary or appropriate by
the Committee in good faith for an Award to avoid being subject to taxation under Code Section 409A(a)(1)), provided that the Exercise Price of any Option or Stock Appreciation Right shall not be less than the Fair Market Value per share of the
underlying stock as of the Grant Date; 
  

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 3.3.5 to adjust the terms and conditions, at any time or from time to time, of any Award,
subject to the limitations contained elsewhere herein, including but not limited to Section 13.1; 
 3.3.6 to determine
to what extent and under what circumstances Stock and other amounts payable with respect to an Award shall be deferred, subject to compliance in good faith with the requirements of the Plan and the Code; 
 3.3.7 to provide for the forms of Agreement to be utilized in connection with this Plan; 
 3.3.8 to determine what legal requirements are applicable to the Plan, Awards, and the issuance of Stock, and to require of a Participant
that appropriate action be taken with respect to such requirements; 
 3.3.9 to cancel, with the consent of the Participant or
as otherwise provided in the Plan or an Agreement, outstanding Awards; 
 3.3.10 to require as a condition of the exercise of
an Award or the issuance or transfer of a certificate (or other representation of title) of Stock, the withholding from a Participant of the amount of any taxes as may be necessary in order for the Company or any other employer to obtain a deduction
or as may be otherwise required by law; 
 3.3.11 to determine whether and with what effect an individual has incurred a
Termination of Employment; 
 3.3.12 to determine the restrictions or limitations on the transfer of Stock; 
 3.3.13 to determine whether an Award is to be adjusted, modified or purchased, or is to become fully or partially exercisable, under the
Plan or the terms of an Agreement; 
 3.3.14 to determine the permissible methods of Award exercise and payment within the
terms and conditions of the Plan and the particular Agreement; 
 3.3.15 to adopt, amend and rescind such rules and
regulations as, in its opinion, may be advisable in the administration of this Plan; 
 3.3.16 to appoint and compensate
agents, counsel, auditors or other specialists to aid it in the discharge of its duties; and 
 3.3.17 to make all other
determinations which may be necessary or advisable for the administration of the Plan. 
 The Committee shall have the authority to adopt,
alter and repeal such administrative rules, guidelines and practices governing the Plan as it shall, from time to time, deem advisable, 

  

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to interpret the terms and provisions of the Plan and any Award issued under the Plan (and any Agreement) and to otherwise supervise the administration of
the Plan. The Committee's policies and procedures may differ with respect to Awards granted at different times and may differ with respect to a Participant from time to time, or with respect to different Participants at the same or different times.

 3.4 Committee Determinations and Decisions. Any determination made by the Committee pursuant to the provisions of the Plan shall be
made in its sole discretion. All decisions made by the Committee pursuant to the provisions of the Plan shall be final and binding on all persons, including the Company and Participants. Any determination shall not be subject to de novo review if
challenged in court. Neither the Committee (including any member thereof) nor the Company shall have any liability to any Participant for any matter it determined in good faith as being in compliance with this Plan and the Code even if such
determination was later proved incorrect. 
 3.5 Board Authority. All duties, responsibilities and authority granted to the Committee
pursuant to the Plan shall also extend to the Board, unless specifically delegated to the Committee, and all references to the “Committee” in this Plan shall be deemed to also include the Board. 
 ARTICLE IV 
 SHARES SUBJECT TO PLAN 

 4.1 Number of Shares. Subject to the adjustment under Section 4.5, the total number of shares of Stock reserved and available
for distribution pursuant to Awards under the Plan shall be 1,300,000 shares which are hereby authorized for issuance on the Effective Date. All of the shares of Stock described in the preceding sentence of this Section may be used for grants of
Incentive Stock Options. Upon approval of the Plan by shareholders, any existing long-term incentive plans (including the Waste Industries USA, Inc. 1997 Stock Plan), whether or not they have been approved by shareholders, will immediately cease to
be available for use for the grant of new incentive awards, but authorized and unissued shares reserved under such plans for incentive awards outstanding on the Effective Date may be re-reserved instead for issuance under this Plan upon the future
expiration, termination or forfeiture of any such outstanding incentive awards without the delivery of shares. The shares of Stock available under the Plan may be authorized and unissued shares, treasury shares or a combination thereof, as the
Committee may determine. 
 4.2 Release of Shares. Subject to Section 4.1, the Committee shall have full authority to determine
the number of shares of Stock available for Awards. In its discretion the Committee may include (without limitation), as available for distribution, (a) shares of Stock subject to any Award that have been previously forfeited; or
(b) shares under an Award that otherwise terminates without issuance of Stock being made to a Participant. Notwithstanding the foregoing, the Committee shall not include as available for distribution shares of Stock that are received by the
Company in connection with the exercise of an Award for payment of the exercise or purchase price or for the satisfaction of any tax liability or tax withholding obligation. 

  

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Any shares that are available immediately prior to the termination of the Plan, or any shares of Stock returned to the Company for any reason subsequent to
the termination of the Plan, may be transferred to a successor plan. 
 4.3 Restrictions on Shares. Stock issued upon exercise of an
Award shall be subject to the terms and conditions specified herein and to such other terms, conditions and restrictions as the Committee in its discretion may determine or provide in the Award Agreement. The Company shall not be required to issue
or deliver any certificates for Stock, cash or other property prior to (a) the completion of any registration or qualification of such shares under federal, state or other law, or any ruling or regulation of any government body which the
Committee determines to be necessary or advisable; (b) the satisfaction of any applicable withholding obligation in order for the Company or an Affiliate to obtain a deduction or discharge its legal obligation with respect to the exercise of an
Award; and (c) satisfaction of any other terms, conditions or restrictions specified herein. The Company may cause any certificate (or other representation of title) for any shares of Stock to be delivered to be properly marked with a legend or
other notation reflecting the limitations on transfer of such Stock as provided in this Plan, any shareholder agreement then in effect or as the Committee may otherwise require. The Committee may require any person exercising an Award to make such
representations and furnish such information as it may consider appropriate in connection with the issuance or delivery of the Stock in compliance with applicable law or otherwise. Fractional shares shall not be delivered, but shall be rounded to
the next lower whole number of shares. 
 4.4 Shareholder Rights. No person shall have any rights of a shareholder as to Stock subject
to an Award until, after proper exercise of the Award or other action required, such shares shall have been recorded on the Company's official shareholder records as having been issued and transferred. Upon exercise of the Award or any portion
thereof, the Company will have a reasonable period in which to issue and transfer the shares, and a Participant will not be treated as a shareholder for any purpose whatsoever prior to such issuance and transfer. No adjustment shall be made for cash
dividends or other rights for which the record date is prior to the date such shares are recorded as issued and transferred in the Company's official shareholder records, except as provided herein or in an Agreement. 
 4.5 Effect of Certain Corporate Changes. In the event of any share dividend, share split, combination or exchange of shares, recapitalization or
other change in the capital structure of the Company, corporate separation or division of the Company (including, but not limited to, a split-up, spin-off, split-off or distribution to Company shareholders other than a normal cash dividend),
reorganization, rights offering, a partial or complete liquidation, or any other corporate transaction, Company securities offering or event involving the Company and having an effect similar to any of the foregoing, then the Committee shall make
appropriate adjustments or substitutions relating, as applicable, to the number of shares of Stock available for Awards under the Plan, the number of shares of Stock covered by outstanding Awards, the Exercise Price per share of outstanding Awards,
and any other characteristics or terms of the Awards as the Committee may deem necessary or appropriate to reflect equitably the effects of such changes to the Participants. Notwithstanding the foregoing, any fractional shares resulting from such
adjustment shall be eliminated by rounding down to the nearest whole share. 
  

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 ARTICLE V 
 ELIGIBILITY 
 5.1 Eligibility. Except as herein provided, the persons who shall be eligible to
participate in the Plan and be granted Awards shall be those persons who are lawful employees of, or consultants or advisors to, the Company or any Affiliate, or non-employee members of the Board of Directors. Of those persons described in the
preceding sentence, the Committee may, from time to time, select persons to be granted Awards and shall determine the terms and conditions with respect thereto. In making any such selection and in determining the form of the Award, the Committee
shall give consideration to such factors deemed appropriate by the Committee. 
 ARTICLE VI 
 STOCK OPTIONS 
 6.1 General.
The Committee shall have authority to grant Options under the Plan at any time or from time to time. The Committee shall consider the potential impact of Code Section 409A on each grant of Options and, if necessary, shall make the terms and
conditions of the Options, in its good faith determination, comply with the requirements of Code Section 409A to avoid being subject to taxation under Code Section 409A(a)(1). An Option shall entitle the Participant to receive Stock upon
exercise of such Option, subject to the Participant's satisfaction in full of any conditions, restrictions or limitations imposed in accordance with the Plan or an Agreement (the terms and provisions of which may differ from other Agreements)
including, without limitation, payment of the Exercise Price. 
 6.2 Grant. The grant of an Option shall occur as of the Grant Date
determined by the Committee, provided that the Grant Date shall not be earlier than the date upon which the Committee formally acts to grant the Option. Options may be granted alone or in connection with other Awards. An Award of Options shall be
evidenced by, and subject to the terms of, an Agreement. Only a person who is a common-law employee of the Company, any "parent corporation" of the Company, or a "subsidiary corporation" of the Company (each term as defined in
Section 424 of the Code) on the date of grant shall be eligible to be granted an Incentive Stock Option. To the extent that any Option is not designated as an Incentive Stock Option or even if so designated does not qualify as an Incentive
Stock Option, it shall constitute a Non-Qualified Stock Option. 
 6.3 Terms and Conditions. Options shall be subject to such terms
and conditions as shall be determined by the Committee, including the following: 
 6.3.1 Exercise Price. The Exercise
Price per share shall not be less than the Fair Market Value per share on the Grant Date. If an Option which is intended to qualify as an Incentive Stock Option is granted to an individual (a "10% Owner") who owns or who is deemed to own
shares possessing more than ten percent (10%) of the combined voting power of all classes of shares of the Company, a parent corporation or any subsidiary 

  

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corporation (each term as defined in Section 6.2), the Exercise Price per share shall not be less than one hundred ten percent (110%) of the Fair
Market Value per share on the Grant Date. 
 6.3.2 Option Period. The Option Period of each Option shall be fixed by
the Committee, provided that no Option shall be exercisable more than ten (10) years after the date the Option is granted. In the case of an Incentive Stock Option granted to a 10% Owner, the Option Period shall not exceed five (5) years
from the date the Option is granted. No Option which is intended to be an Incentive Stock Option shall be granted more than ten (10) years from the date the Plan is adopted by the Company or the date the Plan is approved by the shareholders of
the Company, whichever is earlier. 
 6.3.3 Exercisability. Subject to Section 11.1, an Option shall be
exercisable in whole or in such installments and at such times, as established by the Committee in an Agreement. The Committee may provide in an Agreement for an accelerated exercise of all or part of an Option upon such events or standards that it
may determine, including one or more Performance Measures. In addition, the Committee may at any time accelerate the exercisability of all or part of any Option. If an Option is designated as an Incentive Stock Option, the aggregate Fair Market
Value (determined at the date of grant of the Option) of the Stock as to which such Incentive Stock Option which is exercisable for the first time during any calendar year (under the Plan or any other plan of the Company or any parent corporation or
subsidiary corporation) shall not exceed $100,000. 
 6.3.4 Method of Exercise. Subject to the provisions of this
Article VI and the Agreement, a Participant may exercise Options, in whole or in part, during the Option Period by giving written notice of exercise on a form provided by the Committee to the Company specifying the number of shares of Stock subject
to the Option to be purchased. Such notice shall be accompanied by payment in full of the purchase price by cash or certified check or such other form of payment as the Company may accept. If permitted in the applicable Agreement, payment in full or
in part may also be made by (a) delivering Stock already owned by the Participant (for any minimum period required by the Committee) having a total Fair Market Value on the date of such delivery equal to the Exercise Price; (b) the
delivery of cash by a broker-dealer as a "cashless" exercise, provided such method of payment may not be used by an executive officer of the Company or a member of the Board to the extent such payment method would violate Rule 16b-3 or the
Sarbanes-Oxley Act of 2002; (c) withholding by the Company of Stock subject to the Option having a total Fair Market Value as of the date of delivery equal to the Exercise Price; or (d) any combination of the foregoing. 
 6.3.5 Conditions for Issuance of Shares. No shares of Stock shall be issued until full payment therefore has been made. A
Participant shall have all of the rights of a shareholder of the Company holding the class of shares that is subject to such Option (including, if applicable, the right to vote the shares and the right to receive dividends) when the Participant has
given written notice of exercise, has paid in full for such shares, and such shares have been recorded on the Company's official shareholder records as having been issued and transferred. 
  

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 6.3.6 Non-transferability of Options. Unless otherwise specifically provided in an
Agreement, no Option shall be sold, assigned, margined, transferred, encumbered, conveyed, gifted, alienated, hypothecated, pledged, or otherwise disposed of, other than by will or by the laws of descent and distribution, and all Options shall be
exercisable during the Participant's lifetime only by the Participant; provided, however, under no circumstances may a Participant assign, transfer, convey or otherwise dispose of an Option for consideration unless pursuant to a qualified domestic
relations order. 
 6.4 Termination by Reason of Death. Unless otherwise specifically provided in an Agreement or determined by the
Committee, any unexpired and unexercised Option held by a Participant who incurs a Termination of Employment due to death shall thereafter be fully exercisable for a period of one (1) year immediately following the date of such death or until
the expiration of the Option Period, whichever period is the shorter. In the event of a Termination of Employment due to death, if an Incentive Stock Option shall be exercised after the expiration of the exercise period that applies for purposes of
Code Section 422, such Stock Option thereafter shall be treated as a Non-Qualified Stock Option. 
 6.5 Termination by Reason of
Disability. Unless otherwise specifically provided in an Agreement or determined by the Committee, any unexpired and unexercised Option held by a Participant who incurs a Termination of Employment due to Disability shall thereafter be fully
exercisable by the Participant for a period of one (1) year immediately following the date of such Termination of Employment or until the expiration of the Option Period, whichever period is the shorter, and the Participant's death at any time
following such Termination of Employment due to Disability shall not affect the foregoing In the event of a Termination of Employment due to Disability, if an Incentive Stock Option shall be exercised after the expiration of the exercise period that
applies for purposes of Code Section 422, such Stock Option thereafter shall be treated as a Non-Qualified Stock Option. 
 6.6 Other
Termination. Unless otherwise specifically provided in an Agreement or determined by the Committee, if a Participant incurs a Termination of Employment that is involuntary on the part of the Participant (but is not due to death, Disability or
with Cause), any Option held by such Participant shall thereupon terminate, except that such Option, to the extent then exercisable, may be exercised for the lesser of the three consecutive month period commencing with the date of such Termination
of Employment or until the expiration of the Option Period, whichever period is the shorter. Unless otherwise specifically provided in an Agreement or determined by the Committee, if the Participant incurs a Termination of Employment for Cause or
that is voluntary on the part of the Participant, the Option, to the extent not previously exercised, shall terminate one business day prior to such Termination of Employment. Unless otherwise provided in an Agreement, the death or Disability of a
Participant after a Termination of Employment otherwise provided herein shall not extend the time permitted to exercise an Option. In the event of any Termination of Employment, voluntary or involuntary, with Cause or without Cause, if an Incentive
Stock Option shall be exercised after the expiration the exercise period that applies for purposes of Code Section 422, such Stock Option thereafter shall be treated as a Non-Qualified Stock Option. 
  

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 ARTICLE VII 
 STOCK APPRECIATION RIGHTS 
 7.1 General. The Committee shall have authority to grant Stock
Appreciation Rights under the Plan at any time or from time to time. Stock Appreciation Rights may be awarded alone or in tandem with other Awards granted under the Plan. The Committee shall consider the potential impact of Code Section 409A on
each grant of Stock Appreciation Rights and, if determined to be necessary, shall make the terms of conditions of the Stock Appreciation Rights, in its good faith determination, comply with the requirements of Code Section 409A to avoid being
subject to taxation under Code Section 409A(a)(1). Subject to the Participant's satisfaction in full of any conditions, restrictions or limitations imposed in accordance with the Plan or an Agreement, a Stock Appreciation Right shall entitle
the Participant to surrender to the Company the Stock Appreciation Right and to receive in Stock the number of shares described in Section 7.3(2). 
 7.2 Grant. The grant of a Stock Appreciation Right shall occur as of the Grant Date determined by the Committee. A Stock Appreciation Right entitles a Participant to receive Stock as described in
Section 7.3.2. An Award of Stock Appreciation Rights shall be evidenced by, and subject to the terms of an Agreement, which shall become effective upon execution by the Participant. 
 7.3 Terms and Conditions. Stock Appreciation Rights shall be subject to such terms and conditions as shall be determined by the Committee and set
forth in an Agreement, including (but not limited to) the following: 
 7.3.1 Period and Exercise. The term of a Stock
Appreciation Right shall be established by the Committee provided that no Stock Appreciation Right shall be exercisable more than ten (10) years after the date the Stock Appreciation Right is granted. A Stock Appreciation Right shall be for
such period and, subject to Section 11.1, shall be exercisable in whole or in installments and at such times as established by the Committee in an Agreement. The Committee may provide in an Agreement for an accelerated exercise of all or part
of a Stock Appreciation Right upon such events or standards that it may determine, including one or more Performance Measures. In addition, the Committee may at any time accelerate the exercisability of all or part of any Stock Appreciation Right.
Stock Appreciation Rights shall be exercised by the Participant's giving written notice of exercise, on a form provided by the Committee, to the Company specifying the portion of the Stock Appreciation Right to be exercised. 
 7.3.2 Delivery of Stock. Upon the exercise of a Stock Appreciation Right, a Participant shall receive a number of shares of Stock
equal in value to the excess of the Fair Market Value per share of Stock over the Exercise Price per share of Stock specified in the related Agreement, multiplied by the number of shares in respect of which the Stock Appreciation Right is exercised.
The Exercise Price per share shall not be less than the Fair Market Value per share on the Grant Date. The aggregate Fair Market Value per share of Stock shall be determined as of the date of exercise of such Stock Appreciation Right. 
  

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 7.3.3 Non-transferability of Stock Appreciation Rights. Except as specifically
provided in the Plan or in an Agreement, no Stock Appreciation Rights shall be sold, assigned, margined, transferred, encumbered, conveyed, gifted, alienated, hypothecated, pledged or otherwise disposed of, other than by will or the laws of descent
and distribution, and all Stock Appreciation Rights shall be exercisable during the Participant's lifetime only by the Participant; provided, however, under no circumstances may a Participant assign or transfer a Stock Appreciation Right for
consideration unless pursuant to a qualified domestic relations order. 
 7.3.4 Termination of Employment. A Stock
Appreciation Right shall be forfeited or terminated at such time as an Option would be forfeited or terminated under the Plan, unless otherwise specifically provided in an Agreement. 
 ARTICLE VIII 
 RESTRICTED STOCK 
 8.1 General. The Committee shall have authority to grant Restricted Stock under the Plan at any time or from time to time. The Committee shall
determine the number of shares of Restricted Stock to be awarded to any Participant, the time or times within which such Awards may be subject to forfeiture, and any other terms and conditions of the Awards. Each Award shall be confirmed by, and be
subject to the terms of, an Agreement which contains the applicable terms and conditions of the Award, including the rate or times provided by the Committee for the lapse of any forfeiture restrictions or other conditions regarding the Award. The
Committee may provide in an Agreement for an accelerated lapse of any such restrictions upon such events or standards that it may determine, including one or more Performance Measures. In addition, the Committee may at any time accelerate the lapse
of any such restrictions with respect to any Restricted Stock. Each Award of Restricted Stock shall become effective upon execution by the Participant of an Agreement. 
 8.2 Grant, Awards and Certificates. The grant of an Award of Restricted Stock shall occur as of the Grant Date determined by the Committee. Restricted Stock may be awarded either alone or in addition to other
Awards granted under the Plan. Notwithstanding the limitations on issuance of Stock otherwise provided in the Plan, each Participant receiving an Award of Restricted Stock shall be issued a certificate (or other representation of title) in respect
of such Restricted Stock. Such certificate shall be registered in the name of such Participant and shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Award as determined by the Committee and any
restrictions that the Stock may be subject to, including any shareholder agreement then in effect. The Committee may require that the certificates evidencing such shares be held in custody by the Company until the restrictions thereon shall have
lapsed and that, as a condition of any Award of Restricted Stock, the Participant shall have delivered a share power, endorsed in blank, relating to the Stock covered by such Award. 
  

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 8.3 Terms and Conditions. Restricted Stock shall be subject to such terms and conditions as shall
be determined by the Committee, including the following: 
 8.3.1 Limitations on Transferability. Subject to the
provisions of the Plan and the Agreement, during a period set by the Committee, commencing with the date of such Award (the "Restriction Period"), the Participant shall not be permitted to sell, assign, margin, transfer, encumber, convey,
gift, alienate, hypothecate, pledge or otherwise dispose of Restricted Stock; provided, however, under no circumstances may a Participant assign or transfer Restricted Stock for consideration unless pursuant to a qualified domestic relations order.

 8.3.2 Rights. Except as provided in Section 8.3.1 and notwithstanding Section 4.4, the Participant shall
have, with respect to the Restricted Stock, all of the rights of a shareholder of the Company holding the class of Stock that is the subject of the Restricted Stock, including, if applicable, the right to vote the shares and the right to receive any
dividends. If any dividends or other distributions are paid in shares of Stock, all such shares shall be subject to the same restrictions on transferability as the shares of Restricted Stock with respect to which they were paid. 
 8.3.3 Criteria. As described in Section 8.1 above, the Committee may provide in an Agreement for the lapse of restrictions in
installments and may accelerate the vesting of all or any part of any Award and waive the restrictions for all or any part of such Award; such provisions of an Agreement or Committee action may be based on service, performance by the Participant or
by the Company or the Affiliate, including any division or department for which the Participant is employed or such other factors or criteria as the Committee may determine. 
 8.3.4 Forfeiture. Unless otherwise provided in an Agreement or determined by the Committee, if the Participant incurs a Termination
of Employment due to death or Disability during the Restriction Period, the restrictions shall lapse and the Participant shall be fully vested in the Restricted Stock. Except to the extent otherwise provided in the applicable Agreement and the Plan,
upon a Participant's Termination of Employment for any reason during the Restriction Period other than a Termination of Employment due to death or Disability, all shares of Restricted Stock still subject to restriction shall be forfeited by the
Participant, except the Committee shall have the discretion to waive in whole or in part any or all remaining restrictions with respect to any or all of such Participant's Restricted Stock. 
 8.3.5 Delivery. If a share certificate is issued in respect of Restricted Stock, the certificate shall be registered in the name of
the Participant but shall be held by the Company for the account of the Participant until the end of the Restriction Period. If and when the Restriction Period expires without a prior forfeiture of the Restricted Stock subject to such Restriction
Period, unlegended certificates (or other representation of title) for such shares shall be delivered to the Participant. 
  

 16 

 ARTICLE IX 
 DEFERRED STOCK 
 9.1 General. The Committee shall have authority to grant an Award of
Deferred Stock under the Plan at any time or from time to time. Deferred Stock may be awarded either alone or in addition to other Awards granted under the Plan. The Committee may denominate a Deferred Stock Award in either shares or units. The
Committee shall consider the impact of Code Section 409A on each grant of Deferred Stock and, if determined to be necessary, shall make the terms and conditions of the Deferred Stock, in its good faith determination, comply with the
requirements of Code 409A to avoid being subject to taxation under Code Section 409A(a)(1). The Committee shall determine the number of shares of Deferred Stock to be awarded to any Participant, the duration of the period (the "Deferral
Period") prior to which the Common Stock will be delivered, and the conditions under which receipt of the Stock will be deferred and any other terms and conditions of the Awards. Each Deferred Stock Award shall be evidenced by, and subject to
the terms of, an Agreement, which will become effective upon execution by the Participant.  
 9.2 Terms and Conditions.
Deferred Stock Awards shall be subject to such terms and conditions as shall be determined by the Committee, including the following: 
 9.2.1 Limitations on Transferability. Subject to the provisions of the Plan and the Agreement, Deferred Stock Awards may not be sold, assigned, margined, transferred, encumbered, conveyed, gifted, alienated,
hypothecated, pledged, or otherwise disposed of during the Deferral Period; provided, however, under no circumstances may a Participant assign or transfer a Deferred Stock Award for consideration unless pursuant to a qualified domestic relations
order. Subject to the provisions of an Agreement, at the expiration of the Deferral Period, the Committee shall deliver Stock to the Participant pursuant to the Deferred Stock Award. 
 9.2.2 Rights. Unless otherwise provided in an Agreement or required by Code Section 409A, cash dividends on Deferred Stock
shall be deemed to be paid and automatically reinvested in additional shares of Deferred Stock to be delivered with the original delivery of the Deferred Stock. 
 9.2.3 Criteria. Based on service, performance by the Participant or by the Company or the Affiliate, including any division or
department for which the Participant is employed, or such other factors or criteria as the Committee may determine, the Committee may provide for the lapse of deferral limitations in installments and may accelerate the vesting of all or any part of
any Award and waive the deferral limitations for all or any part of such Award. 
 9.2.4 Forfeiture. Unless otherwise
provided in an Agreement or determined by the Committee, if the Participant incurs a Termination of Employment due to death or Disability during the Deferral Period, the restrictions shall lapse and the Participant shall be fully vested in the
Deferred Stock. Unless otherwise provided in an Agreement or determined by 

  

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the Committee, upon a Participant's Termination of Employment for any reason during the Deferral Period other than a Termination of Employment due to death
or Disability, the rights to the shares still covered by the Award shall be forfeited by the Participant, except the Committee shall have the discretion to waive in whole or in part any or all remaining deferral limitations with respect to any or
all of such Participant's Deferred Stock. 
 9.2.5 Election. A Participant may elect to further defer receipt of the
Deferred Stock payable under an Award (or an installment of an Award) for a specified time (or pursuant to a fixed schedule) or until the occurrence of a permissible distribution event under Code Section 409A, subject to such terms and
conditions determined by the Committee. Any such election must be made no later than the time provided by Section 409A(a)(4) of the Code, as determined by the Committee. 
 ARTICLE X 
 PERFORMANCE AWARDS 
 10.1 General. The Committee shall have authority to grant Performance Awards under the Plan at any time or from time to time. The Committee shall
consider the impact of Code Section 409A on each grant of a Performance Award and, if determined to be necessary, shall make the terms and conditions of the Performance Awards, in its good faith determination, comply with the requirements of
Code Section 409A to avoid being subject to taxation under Code Section 409A(a)(1). A Performance Unit and a Performance Share each consist of the right to receive shares of Stock or cash, as provided in the particular Award Agreement,
upon achievement of certain Performance Goals and may be awarded either alone or in addition to other Awards granted under the Plan. Performance Units shall be denominated in units of value (including dollar value of shares of Stock) and Performance
Shares shall be denominated in a number of shares of Stock. Subject to the terms of the Plan, the Committee shall have complete discretion to determine the number of Performance Units and Performance Shares, if any, granted to a Participant. Each
Performance Award shall be evidenced by, and be subject to the terms of, an Agreement which will become effective upon execution by the Participant. 
 10.2 Earning Performance Awards. After the applicable Performance Period shall have ended, the Committee shall determine the extent to which the established Performance Goals have been achieved. 
 10.3 Termination of Employment. Unless otherwise specifically provided in an Agreement or determined by the Committee, in the event of a
Termination of Employment due to death or Disability, during a Performance Period, the Participant shall receive, after the expiration of the Performance Period, a pro rata share of the Performance Awards relating to such Performance Period based
upon the period of time he or she is employed by the Company in the Performance Period. Unless otherwise specifically provided in an Agreement or determined by the Committee, in the event that a Participant's employment terminates for any other
reason, all Performance Awards shall be forfeited by the Participant to the Company. Any distribution of earned Performance Awards authorized by an Agreement or determined by the 

  

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Committee may be made at the same time payments are made to Participants who did not incur a Termination of Employment during the applicable Performance
Period. 
 10.4 Nontransferability. Unless otherwise specifically provided in an Agreement, Performance Awards may not be sold,
assigned, margined, transferred, encumbered, conveyed, gifted, alienated, hypothecated, pledged, or otherwise disposed of, other than by will or by the laws of descent and distribution; provided, however, under no circumstances may a Participant
assign or transfer a Stock Appreciation Right for consideration unless pursuant to a qualified domestic relations order. 
 ARTICLE XI

 CHANGE IN CONTROL PROVISIONS 
 11.1 Impact of Event. Notwithstanding any other provision of the Plan to the contrary and unless otherwise specifically provided in an Agreement, in the event of a Change in Control: 
 11.1.1 any Stock Options and Stock Appreciation Rights outstanding as of the date of such Change in Control shall become fully vested and
exercisable to the full extent of the original grant; 
 11.1.2 the restrictions applicable to any Restricted Stock Awards
shall lapse, and such Restricted Stock shall become free of all restrictions and become fully vested and transferable to the full extent of the original grant; and 
 11.1.3 any unvested Deferred Stock shall vest and shall be distributed within thirty (30) days following the Change in Control; and

 11.1.4 any Performance Goal or other condition with respect to any Performance Shares and Performance Units shall be deemed
to have been satisfied in full, and such Award shall be fully distributable within thirty (30) days following the Change in Control. 
 11.2 Assumption, Substitution or Termination. Subject in all cases to Section 11.1, and notwithstanding anything herein or in an Agreement to the contrary, the Committee shall have full discretion with respect to an outstanding
Award upon a Change in Control in which the Company is not the surviving entity to provide that the Award will be assumed by another entity or securities of another entity will be substituted for the Award and to make equitable adjustment with
respect thereto. In the event of a Change in Control in which the Company is not the surviving entity, if an outstanding Award is not assumed or substituted as set forth above, unless otherwise determined by the Committee in its full discretion and
subject in all cases to Section 11.1, the Award shall terminate upon the completion of the Change in Control event. 
  

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 ARTICLE XII 
 PROVISIONS APPLICABLE TO SHARES ACQUIRED UNDER THIS PLAN 
 12.1 No Company Obligation. Except
to the extent specifically required by applicable securities laws, none of the Company, an Affiliate or the Committee shall have any duty or obligation to affirmatively disclose material information to a record or beneficial holder of Stock or an
Award, and such holder shall have no right to be advised of any material information regarding the Company or any Affiliate at any time prior to, upon, or in connection with receipt or the exercise or distribution of an Award. The Company makes no
representation or warranty as to the future value of the Stock issued or acquired in accordance with the provisions of the Plan. 
 ARTICLE
XIII 
 MISCELLANEOUS 
 13.1 Amendments and Termination. The Board may amend, alter, or discontinue the Plan at any time, but no amendment, alteration or discontinuation shall be made which would materially impair the rights of a Participant under an Award
theretofore granted without the Participant's consent. Notwithstanding the immediately preceding sentence, an amendment may be made without a Participant's consent to (a) cause the Plan or an Award to comply with applicable law (including, but
not limited to, any changes needed to avoid taxation of an Award as a "nonqualified deferred compensation plan" under Code Section 409A) or (b) permit the Company or an Affiliate a tax deduction under applicable law (including, without
limitation, Section 162(m) of the Code). The Committee may amend, alter or discontinue the terms of any Award theretofore granted, prospectively or retroactively, on the same conditions and limitations (and exceptions to limitations) as apply
to the Board, and further subject to any approval or limitations the Board may impose. Notwithstanding the foregoing, any amendments to the Plan shall require shareholder approval to the extent required by Federal or state law or any regulations or
rules promulgated thereunder or the rules of the national securities exchange or market on which shares of Stock are listed. 
 13.2
Unfunded Status of Plan. It is intended that the Plan be an "unfunded" plan for incentive compensation. The Company may create trusts or other arrangements to meet the obligations created under the Plan to deliver Stock or make payments;
provided, however, that the existence of such trusts or other arrangements is consistent with the "unfunded" status of the Plan and all property held thereunder and income thereon shall remain solely the property and rights of the Company (without
being restricted to satisfying the obligations created under the Plan) and shall be subject to the claims of the Company's general creditors. The Company's obligations created under the Plan shall constitute a general, unsecured obligation, payable
solely out of its general assets. 
 13.3 Provisions Relating to Internal Revenue Code Section 162(m). To the extent that
Section 162(m) of the Code applies with respect to Awards to Covered Employees under the Plan, the Plan shall be administered, and the provisions of the Plan shall be interpreted, in a 

  

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manner consistent with Code Section 162(m). If any provision of the Plan or any Agreement relating to such an Award does not comply or is inconsistent
with the requirements of Code Section 162(m), such provision shall be construed or deemed amended to the extent necessary to conform to such applicable requirements. In addition, the following provisions shall apply to the Plan or an Award to
the extent necessary to obtain a tax deduction for the Company or an Affiliate: 
 13.3.1 Committee Determination. Not
later than the date required or permitted for "qualified performance-based compensation" under Code Section 162(m), the Committee shall determine the Participants who are Covered Employees who will receive Awards that are intended as qualified
performance-based compensation, the Performance Goals, the maximum amount of compensation that could be paid to any eligible Covered Employee, and the amount or method for determining the amount of such compensation. 
 13.3.2 Share Limitation. During any three-consecutive calendar year period, the maximum number of shares of Stock for which Options
and Stock Appreciation Rights, in the aggregate, may be granted to any Covered Employee shall not exceed 650,000 shares. 
 13.3.3 Earning Performance Awards. Subject to the provisions of Section 13.3(4) below, payment with respect to Performance Awards for Covered Employees shall be a direct function of the extent to which the Company's Performance
Goals have been achieved. A Performance Award to a Participant who is a Covered Employee shall (unless the Committee determines otherwise in an Agreement) provide that in the event of the Participant's Termination of Employment prior to the end of
the Performance Period for any reason, such Award will be payable only (a) if the applicable Performance Goals are achieved and (b) to the extent, if any, as the Committee shall determine. 
 13.3.4 Other Section 162(m) Provisions. In the manner required by Section 162(m) of the Code, the Committee shall,
promptly after the date on which the necessary financial and other information for a particular Performance Period becomes available, certify the extent to which Performance Goals have been achieved with respect to any Performance Award or
Restricted Stock Award intended to qualify as performance-based compensation under Section 162(m) of the Code. In addition, the Committee may, in its discretion, reduce or eliminate the amount of any Performance Award payable to any
Participant, based on such factors as the Committee may deem relevant, but the Committee may not increase the amount of any Performance Award payable to any Participant above the amount established for the relevant Performance Goals with respect to
any Performance Award intended to qualify as performance-based compensation. 
 13.4 Misconduct of a Participant.
Notwithstanding anything to the contrary in the Plan, the Committee, in its sole discretion, may establish procedures, at or before the time that an Award is granted (or, with the consent of the Participant, after such time), in the applicable
Award Agreement or in a separate agreement, providing for the forfeiture or cancellation of such Award (whether vested or unvested), or the disgorgement of gains from the exercise, vesting or settlement of the Award, in each case to be applied if
the Participant engages in 

  

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conduct detrimental to the Company. For purposes of this Plan, conduct detrimental to the Company may include conduct that the Committee in its sole
discretion determines (a) to be injurious or prejudicial to any interest of the Company or any of its Affiliates, or (b) to otherwise violate a policy, procedure or rule applicable to the Participant with respect to the Company or any of
its subsidiaries, or (c) if the Participant incurs a Termination of Employment for Cause. 
 13.5 Withholding. No later than the
date as of which an amount first becomes includible in the gross income of the Participant for federal income tax purposes with respect to any Award, the Participant shall pay to the Company (or other entity identified by the Committee), or make
arrangements satisfactory to the Company or other entity identified by the Committee regarding the payment of, any federal, state, or local taxes of any kind (including any employment taxes) required by law to be withheld with respect to such
income. The obligations of the Company under the Plan shall be conditional on such payment or arrangements, and the Company and its Affiliates shall, to the extent permitted by law, have the right to deduct any such taxes from any payment otherwise
due to the Participant. Subject to approval by the Committee, a Participant may elect to have such tax withholding obligation satisfied, in whole or in part, by (i) authorizing the Company to withhold from shares of Stock to be issued pursuant
to any Award a number of shares with an aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy the required statutory minimum (but no more than such required minimum) with respect to the Company's withholding
obligation, or (ii) transferring to the Company shares of Stock owned by the Participant with an aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy the required statutory minimum (but no more than such
required minimum) with respect to the Company's withholding obligation. 
 13.6 Controlling Law. The Plan and all Awards made and
actions taken thereunder shall be governed by and construed in accordance with the laws of the state of North Carolina (other than its law respecting choice of law). The Plan shall be construed to comply with all applicable law and to avoid
liability to the Company, an Affiliate or a Participant. In the event of litigation arising in connection with actions under the Plan, the parties to such litigation shall submit to the jurisdiction of courts located in Wake County, North Carolina,
or to the federal district court that encompasses said county. 
 13.7 Nontransferability; Beneficiaries. Unless otherwise
specifically provided in an Agreement, no Award or Stock subject to an Award shall be assignable or transferable by the Participant, otherwise than by will or the laws of descent and distribution or pursuant to a beneficiary designation, and Awards
shall be exercisable during the Participant's lifetime only by the Participant (or by the Participant's Representative in the event of the Participant's incapacity); provided, however, under no circumstances may a Participant assign or transfer an
Award or Stock subject to an Award for consideration unless pursuant to a qualified domestic relations order. Each Participant may designate a Beneficiary to exercise any Option or Stock Appreciation Right or receive any Award held by the
Participant at the time of the Participant's death or to be assigned any other Award outstanding at the time of the Participant's death. No Award or Stock subject to an Award shall be subject to the debts of a Participant or Beneficiary or subject
to attachment or execution or process in any court action or proceeding unless 

  

 22 

 
otherwise provided in this Plan. If a deceased Participant has named no Beneficiary, any Award held by the Participant at the time of death shall be
transferred as provided in his or her will or by the laws of descent and distribution. 
 13.8 No Effect on Employment Relationship.
Nothing contained herein shall be deemed to alter the relationship between the Company or an Affiliate and a Participant, or the contractual relationship between a Participant and the Company or an Affiliate if there is a written contract regarding
such relationship. Nothing contained herein shall be construed to constitute a contract of employment between the Company or an Affiliate and a Participant or any guaranty of employment or continued employment. The Company or an Affiliate and each
of the Participants continue to have the right to terminate the employment or service relationship at any time for any reason, except as provided in a written contract. The Company or an Affiliate shall have no obligation to retain the Participant
in its employ or service as a result of this Plan. There shall be no inference as to the length of employment or service hereby, and the Company or an Affiliate reserves the same rights to terminate the Participant's employment or service as existed
prior to the individual becoming a Participant in this Plan. 
 13.9 Awards in Substitution for Awards Granted by Other Corporations.
Awards may be granted under the Plan from time to time in substitution for awards held by employees, directors or service providers of other corporations who are about to become officers or employees of the Company or an Affiliate as the result of a
merger or consolidation of the employing corporation with the Company or an Affiliate, or the acquisition by the Company or an Affiliate of the assets of the employing corporation, or the acquisition by the Company or Affiliate of the share of the
employing corporation, as the result of which it becomes an Affiliate. The terms and conditions of the Awards so granted may vary from the terms and conditions set forth in this Plan at the time of such grant as the Committee may deem appropriate to
conform, in whole or in part, to the provisions of the awards in substitution for which they are granted are met. 
 13.10 Listing,
Registration and Compliance with Laws and Regulations. All Awards made under this Plan shall be subject to the requirement that if at any time the Committee shall determine, in its discretion, that the listing, registration or qualification of
the Stock subject to such Award upon any securities exchange or under any state or federal securities or other law or regulation, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition to or in
connection with the granting of the Awards or the issuance or purchase of shares thereunder, no Awards may be granted or exercised and no restrictions of Restricted Stock or Deferred Stock be lifted, in whole or in part, unless such listing,
registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Committee. The holders of such Awards shall supply the Company with such certificates, representations and information
as the Company shall request and shall otherwise cooperate with the Company in obtaining such listing, registration, qualification, consent or approval. In the case of officers and other Persons subject to Section 16(b) of the Exchange Act, the
Committee may at any time impose any limitations upon the exercise of an Option, Stock Appreciation Right or Restricted Stock or the lifting of restrictions on an Award of Deferred Stock or a Performance Award that, in the Committee’s 

  

 23 

 
discretion, are necessary or desirable in order to comply with such Section 16(b) and the rules and regulations thereunder. 
 13.11 Delivery of Stock Certificates. To the extent the Company uses certificates to represent shares of Stock, certificates to be delivered to
Participants under this Plan shall be deemed delivered for all purposes when the Company or a stock transfer agent of the Company shall have mailed such certificates in the United States mail, addressed to the Participant, at the Participant's last
known address on file with the Company. Any reference in this Section or elsewhere in the Plan or an Agreement to actual stock certificates and/or the delivery of actual stock certificates shall be deemed satisfied by the electronic record-keeping
and electronic delivery of shares of Stock or other mechanism then utilized by the Company and its agents for reflecting ownership of such shares. 
 13.12 Indemnification. Indemnification of members of the Committee and the Board with respect to any action taken or failure to act under the Plan or any Agreement shall be determined under the Company's Articles of Incorporation and
by-laws. The foregoing rights of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under contract, as a matter of law or otherwise, or under any power that the Company may have to
indemnify them or hold them harmless. 
 13.13 Severability. If any provision of this Plan shall for any reason be held to be invalid
or unenforceable, such invalidity or unenforceability shall not effect any other provision hereby, and this Plan shall be construed as if such invalid or unenforceable provision were omitted. 
 13.14 Successors and Assigns. This Plan shall inure to the benefit of and be binding upon each successor and assign of the Company. All
obligations imposed upon a Participant, and all rights granted to the Company hereunder, shall be binding upon the Participant's heirs, legal representatives and successors. 
 13.15 Entire Agreement. This Plan and the Agreement constitute the entire agreement with respect to the subject matter hereof and thereof,
provided that in the event of any inconsistency between the Plan and the Agreement, the terms and conditions of this Plan shall control. 
 13.16 Term. No Award shall be granted under the Plan after the tenth anniversary of the Effective Date. 
 13.17 Gender
and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine, the plural shall include the singular, and the singular shall include the plural. 
 13.18 Headings. The headings contained in this Plan are for reference purposes only and shall not affect the meaning or interpretation of this
Plan. 
  

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