Document:

ex10-15.htm

 

EXHIBIT 10.15

 

AMENDED 2012 MANAGEMENT AGREEMENT

This amended 2012 Management Agreement (the “Amended 2012 Agreement”) is entered into as of     __,  2012 by and between Applied Minerals, Inc. (the “Company”) and Material Advisors LLC (“Manager”).

BACKGROUND

1.  On December 30, 2008, the Company and the Manager entered into a management agreement  (“2009 Management Agreement”) for the years 2009 and 2010. The parties agreed to an extension for 2011 under the terms of the Management Agreement, which contained terms specifically governing an extension for 2011.  The 2009 Management Agreement contained a provision for automatic extension for 2012 and future years unless one of the parties delivered a notice of non-extension.

2.  On February 8, 2011, the parties agreed to a management agreement for the year 2012 (“2012 Agreement”), which was a new agreement and was not established under the automatic extension provisions of the 2009 Management Agreement.  The terms of the 2012 Agreement were to be the same as the Management Agreement, mutatis mutandi for the different year, (and with non-material clarifications), except for an option grant for 2012.  The 2012 Agreement was not reduced to writing at the time.

3.  On January__, 2012, the parties agreed in principle to amendments to the 2012 Agreement.  This Amended 2012 Agreement reduces the 2012 Agreement, as amended, to writing.

 

 

AGREEMENTS

1.           Relationship to 2009 Management Agreement.  Section 2 of the 2009 Management Agreement provides that the term of the 2009 Management Agreement would be automatically extended for successive one-year periods, unless one of the parties delivered notice on non-renewal.   The parties agree that the Amended 2012 Agreement is a new agreement and is not established under the automatic extension provisions of the 2009 Management Agreement and that the 2009 Management Agreement is not subject to automatic extension in the future.  Nevertheless, the rights and obligations of the parties under sections 5, 6, 10-13, and 15 – 21 of the 2009 Management Agreement remain in full force and effect.

2.           Term of Amended 2012 Agreement.  This Amended 2012 Agreement is for the year 2012 and will expire on December 31, 2012, subject to earlier termination by either the Manager or the Company in accordance with Section 8 below, provided that the term of this Amended 2012 Agreement shall be automatically extended for successive one-year periods, unless either party gives written notice of non-renewal to the other at least 90 days prior to the expiration of the initial term (December 31, 2012) or any such successive one-year period, as applicable (the “Term”).  However, it is agreed that the equity grant and the bonus in Section 4 are not subject to automatic renewal and if there is an automatic renewal, there will be no equity grant or a bonus in respect of or during the extension periods.

 

3.           Management Services and Personnel.  The Company hereby engages the Manager, and the Manager hereby agrees to provide services to the Company, on the terms and subject to the conditions set forth herein.  

During the Term, the Manager will perform management services for the Company (the “Services”). The Company has already hired, and will hire, persons not affiliated with the Manager to perform a variety of management services and it is agreed that it is not contemplated that the Manager will provide all management services required by the Company.

The Manager will provide qualified individuals (the “Management Personnel”) to perform the Services. Initially, Andre Zeitoun (“Zeitoun”), Chris Carney (“Carney”), and Eric Basroon (“Basroon”) will serve as the Management Personnel.   Andre Zeitoun will serve as the Company’s Chief Executive Officer and will be nominated as a member of the Company’s board of directors (the “Board”) at each annual meeting during the Term.  As Chief Executive Officer of the Company, Zeitoun shall have such duties and responsibilities, commensurate with such position, as are assigned by the Board from time to time and shall report to the Board.   Carney will initially serve as Interim Chief Financial Officer but the Manager may cause Mr. Carney to cease to serve in that position at any time.

If Carney’s or Basroon’s service relationship with the Manager terminates during the Term, the Manager shall present a qualified candidate to replace such person for approval by the Company, which approval shall not be unreasonably withheld.  If a replacement candidate is not approved by the Company, the Manager shall continue to present qualified replacement candidates to the Company for approval until such time as a replacement is so approved.  

The Services will include the Manager’s consulting with the Board and the Company’s management on business and financial matters, including without limitation, matters related to (a) new business development, creating and implementing the Company’s business plan and overseeing and supervising the Company’s operations, (b) the preparation of operating budgets and business plans, (c) the Company’s corporate and financial structure, (d) the formulation of long-term business strategies, (e) recruiting senior management, (f) financing, (g) transactions with third-parties, including mergers and acquisitions, (h) evaluating potential sale or exit opportunities, structuring and negotiating a sale of the Company, or leveraged recapitalization, (i) resolving investigations and litigation involving the Company, and (j) any other management services incidental to the forgoing or any other management or advisory services reasonably requested by the Board from time to time and to which the Manager agrees.  

Upon request of the Board, during the Term, the Manager shall cause any of the Management Personnel to serve as an officer and/or director of the Company’s subsidiaries or affiliates (without compensation).

 

  

  

  

4.           Management Fee; Equity Grant; Bonus; Compensation and Benefits; Expenses.  The Company will pay the Manager a fee of $1,000,000 per year, paid in advance in equal monthly installments of $83,333.34 beginning January 1, 2012 (“Management Fee”).  

In the event (a) the Company terminates without Cause; (b) the Manager terminates Good Reason; and (c) the Company provides a notice of non-renewal pursuant to Section 2, the Manager will be entitled to receive any Management Fee earned through the date of termination and a lump sum payment within 10 days following the date of termination equal to the Management Fee that the Manager would have otherwise received through the end of the then existing Term.  In the even that the Term is terminated for any other reason, Manager will be entitled to receive any Management Fee earned through the date of termination.

On February 8, 2011, in connection with the adoption of the 2012 Agreement, the Manager was granted by the Company a non-qualified stock option to purchase 2,904,653 of common stock with an exercise price of $.83 per share, on the terms set forth in Sections 5 and 6 below (the $0.83 Option”), which was above the closing market price ($.75) on that date.

For services rendered during the period from January 1, 2009 to December 31, 2011, the Company grants a bonus of $750,000 to the Manager, payable immediately.

To the extent the Company determines it to be necessary to comply with Securities and Exchange Commission (“SEC”) disclosure or other legal or listing requirements, the Manager shall promptly provide the Company with a true and correct schedule of the compensation furnished by the Manager to its members for the services they perform on behalf of the Company.

The Manager will be solely responsible for all cash and equity compensation to be paid to the Management Personnel.  The Company will be responsible for any employee benefits provided to the Management Personnel.

From January 1, 2012, the Company will be solely responsible for all travel, entertainment, office and marketing expenses and all other ordinary and necessary business expenses incurred by the Manager and the Management Personnel in connection with the performance of the Services.

 

5.           2012 Going Private Option.  Upon the consummation of a transaction that results in (A) the Company ceasing to be an SEC reporting company or having less than 300 shareholders of record and (B) David A. Taft, IBS Capital LLC, The IBS Turnaround Fund, L.P., The IBS Turnaround Fund (QP), The IBS Opportunity Fund (BVI), Ltd., or any of their affiliates or related entities own in the aggregate more than 50% of the outstanding equity capital of the Company immediately following the transaction (a “Going Private Transaction”) during the Term,

(i) without further action by the Company or the Manager (or a transferee) the $0.83 Option shall automatically be cancelled without payment of any consideration to the Manager (or transferee), and

(ii) the Company (or its successor) will grant the Manager a non-qualified stock option (the “2012 Going Private Option”, and together with the $0.83 Option and the 2012 Assumed Option (defined below), the “2012 Options”)) accompanied by a tandem stock appreciation right (the “2012 SAR”);

Provided that, during the 30 day period prior to the consummation of a Going Private Transaction, in lieu of the cancellation and grants contemplated by items (i) and (ii) above, the Manager may elect to have the $0.83 Option, to the extent outstanding immediately prior to the consummation of the Going Private Transaction, assumed and continued by the Company following the Going Private Transaction and adjusted in a manner consistent with requirements of Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and guidance promulgated thereunder (collectively “Code Section 409A”) (the “2012 Assumed Option”), in which case the 2012 Assumed Option shall also be accompanied by a tandem 2012 SAR consistent with the terms specified herein.  The Company will provide the Manager with notice of its intent to enter into a Going Private Transaction at least 30 days prior to the date of such transaction and, during the 30 day period preceding such transaction, the Manager may exercise the $0.83 Option in full effective as of the date of the Going Private Transaction (in which case no 2012 Going Private Option shall be granted and the $.83 Option shall not be assumed and continued), any such exercise to be contingent on the consummation of the Going Private Transaction.  

The 2012 Options and the 2012 SAR will be transferable to any affiliate of the Manager or to any family members of the members of the Manager.   

The 2012 Going Private Option will provide the Manager with the right to purchase the same percentage of the Company’s (or its successor’s) outstanding shares of common stock (after giving effect to the Going Private Transaction), on a fully diluted basis, that were subject to the $0.83 Option immediately prior to its cancellation, subject to the terms and conditions specified herein.  Except as set forth herein, the 2012 Options shall have identical terms and conditions.  

The 2012 SAR shall entitle the Manager to receive, at the Manager’s election, either shares of Common Stock or cash equal in value to the excess of the fair market value of a share of Common Stock on the date of exercise over the base price per share under the 2012 SAR, as discussed below; provided, that in no event shall the amount of such excess deliverable to the Manager in cash exceed the amount of tax withholdings due (determined at the statutory minimum rate) with respect to the exercise of the 2012 SAR.  The number of shares of Common Stock subject to, and the exercise or base price of, the 2012 Options and 2012 SAR shall be subject to equitable adjustment to reflect stock splits, reverse stock splits, stock dividends, mergers, consolidations and other similar capital adjustments as determined by the Board in good faith.

For clarity, the 2012 Going Private Option is in addition to the Going Private Option in the 2009 Management Agreement.

  

  

  

6.           Option Terms.  (a) Exercise/Base Prices.  The exercise price per share under the $0.83 Option will be $0.83.  The exercise price per share under the 2012 Going Private Option and the base price per share under the 2012 SAR will be the fair market value per share to be paid in the Going Private Transaction to shareholders who are not investing in the 2012 Going Private vehicle.

 

(b) Terms.  The term of the 2012 Options and 2012 SAR will be until February 7, 2021, subject to earlier termination as provided herein.

 

(c) Vesting.

 

	
(1)  

	
    During the Term, the $0.83 Option will vest and become exercisable in 12 equal monthly installments commencing on February 1, 2012.  Notwithstanding the foregoing:

 

	
  

	
(i)  the unvested portion of the $0.83 Option will immediately vest and become exercisable immediately prior to the occurrence of any of the following events:  (1) termination by the Company without Cause; (2) termination by the Manager for Good Reason; or (3) notice of non-renewal by the Company as provided in Section 2; and

	
  

	
 

	
  

	
 (ii) the unvested portion of the $0.83 Option will immediately vest and become exercisable immediately prior to the occurrence of a Change in Control of the Company.

	
  

	
(2)     During their terms, 100% the 2012 Going Private Option, the 2012 SAR, and the 2012 Assumed Option will be fully vested and exercisable.

(d) Termination of 2012 Options and 2012 SAR.

(i) Upon the Company’s termination of the Manager for Cause, the vested and unvested portions of the $0.83 Option will immediately terminate and the 2012 Going Private Option, the 2012 SAR, the 2012 Assumed Option will immediately terminate,

(ii) upon the termination of the Manager for the reasons set forth in (c)(1) above, the $0.83 Option (which will be fully vested because the vesting provisions in (c) (1) above are deemed to occur before the events in this paragraph (d)), the 2012 Going Private Option, the 2012 SAR, and the 2012 Assumed Option will terminate on the fifth anniversary of the termination date of the Manager (or, if earlier, upon expiration of their terms), and

(iii) upon termination for any reason other than the reasons set forth in (i) and (ii), (a) the unvested portion of the $.83 Option will immediately terminate and (b) the 2012 Going Private Option, the 2012 SAR, the 2012 Assumed Option and the vested portion of the $0.83 Option will terminate on the fifth anniversary of the termination date of the Manager (or, if earlier, upon expiration of their terms).  

(e) Exercise of 2012 Options.  To the extent that the 2012 Options and the 2012 SAR have become vested and exercisable for any reason and have not been terminated, the 2012 Options and the 2012 SAR may be exercised by the Manager, in whole or in part, at any time or from time to time prior to the expiration of their terms.  

The Manager may exercise either of the applicable 2012 Options and the 2012 SAR by delivering to the Company

	
  

	
(i)   a written notice of exercise specifying the number of shares of Common Stock with respect to which the Option or SAR is being exercised;

	
  

	
(ii)  in the case of the 2012 Options, payment in full of an amount equal to the exercise price multiplied by the number of shares of Common Stock underlying the portion of the Option exercised, the payment of which may be satisfied by (A) a cash payment, which may be paid by check or other instrument acceptable to the Company; (B) the Manager delivering to the Company shares of Common Stock which are already owned by the Manager (free and clear of any liens or encumbrances) valued at the fair market value of the exercise price on the date of exercise; (C) solely to the extent permitted by law, cashless exercise whereby the Manager delivers irrevocable instructions to a broker-dealer selected by Manager to sell or margin a sufficient portion of the Common Stock with respect to which the Option is being exercised and the broker-dealer delivers the sale or margin loan proceeds directly to the Company to pay for the exercise price; or (D) such other method approved or made available to another optionee by the Company. In addition to the foregoing, the Manager may satisfy the payment of up to 25% of the exercise price for the 2012 Going Private Option through a note, having will have a 5-year term and provide for interest at the applicable federal rate and will be secured by the shares purchased with the loan proceeds (the “Exercise Note”);

	
  

	
(iii)  in the case of the 2012 SAR, a written notice of the extent to which payment is to be made in securities and/or cash .

 

(f) Reduction in Shares.  To the extent that the Manager exercises the 2012 Going Private Option or the 2012 Assumed Option, the shares of Common Stock subject to the 2012 SAR shall be reduced by a number of shares equal to the shares as to which such option is exercised.  To the extent that the Manager exercises the 2012 SAR, the shares of Common Stock subject to the 2012 Going Private Option or the 2012 Assumed Option will be reduced by a number of shares equal to the shares as to which the 2012 SAR is exercised.

 

(g) Sale of Shares acquired under the $0.83 Option.  Following the exercise of all or a portion of the $0.83 Option, the Company will use commercially reasonable efforts to file and cause to become effective a Form S-1 or Form S-3 registration statement, if available to the Company, to register the sale of the Common Stock that may be acquired by the Manager under the $0.83 Option (or acquired by or transferred to one of its members) and will use commercially reasonable efforts to cause such registration statement not to misrepresent or omit a material fact until (i) such shares of Common Stock have become eligible for sale under Rule 144 and (ii) all of the shares of Common Stock held by the Manager (and/or its members) and other persons whose sales of shares of Common Stock may be aggregated with sales of the shares Manager (and/or its members) own is less than 1% of the Company’s outstanding Common Stock.  Sales of Common Stock acquired pursuant to the $0.83 Option will be subject to compliance with applicable law and the Company’s insider trading policy.

 

(h) Dividends.  During the Term, the Company will provide the Manager with notice of its intent to declare a dividend or distribution to its stockholders at least 30 days prior to the date it sets the record date for any such dividend or distribution.  If the Company declares any dividend or distribution to its stockholders (other than stock splits in the form of a dividend and similar capital adjustments) at any time while the $0.83 Option is unvested, the Manager will be entitled to receive an amount equal to the dividend or distribution that would be paid on the shares underlying the $0.83 Option, payable in the same form as such dividend or distribution, on the same vesting schedule as the $0.83 Option.

 

(i)           Authorized Shares.  To the extent the Company does not have a sufficient number of authorized and unissued or treasury shares of Company common stock to issue to the Manager upon a valid exercise of the $.83 Option, the Company will deliver to the Manager upon any such exercise an amount in cash equal to the then current fair market value of the shares of Company common stock that would have otherwise been issued to the Manager in connection with such exercise, net of exercise price and applicable withholdings.

 

  

  

  

 

 

7.           Right to Participate in the Going Private Transaction.  The 2009 Management Agreement provided that the Manager will have the right to participate in the Going Private Transaction for up to 20% of the equity on terms and conditions which are as favorable to the Manager as terms and conditions available to any other person who invests in the Going Private vehicle.  For clarity, it is agreed that such right continues in effect and no additional rights are granted under this Amended 2012 Agreement.

 

8.           Basis for, and Method and Consequences of, Termination.

(i)  Basis and Method.  The Company may terminate the Term for Cause immediately upon written notice.

Consequences:

	
(a)  

	
Manager will be entitled to receive any Management Fee earned through the date of termination

	
(b)  

	
Unvested portion of $.83 Options terminate and are not subject to further vesting.

	
(c)  

	
The 2012 Going Private Option, the 2012 Assumed Option, and the 2012 SAR and the vested portions of the $.83 terminate immediately and may no longer be exercised

(ii)   Basis and Method.  (a) the Company may terminate the Term upon 30 days’ written notice upon Zeitoun becoming Disabled; (b) the Term will automatically terminate upon Zeitoun’s death; (c) the Manager may terminate the Term without Good Reason upon 30-day written notice; (d) the Manager may terminate by providing a notice of non-renewal of the Term pursuant to Section 2 above,

Consequences:

	
(a)  

	
Manager will be entitled to receive any Management Fee earned through the date of termination

	
(b)  

	
Unvested portions of $.83 Option terminate and are not subject to further vesting.

	
(c)  

	
The 2012 Going Private Option, the 2012 Assumed Option, and the 2012 SAR and the vested portions of the $.83 Option terminate on the fifth anniversary of the termination date of the Manager (or, if earlier, upon expiration of their term).  

  (iii)  Basis and Method.  (a) The Company may terminate the Term upon 30 days’ written notice without Cause; (b) the Company may terminate by providing a notice of non-renewal pursuant to Section 2, (c) the Manager may terminate the Term upon 30 days’ written notice for Good Reason.

Consequences:

	
(a)  

	
The Manager will be entitled to receive any Management Fee earned through the date of termination and a lump sum payment within 10 days following the date of termination equal to the Management Fee that the Manager would have otherwise received through the end of the then existing Term;

	
(b)  

	
Unvested portion of $.83 Options immediately vest;

	
(c)  

	
The 2012 Going Private Option, the 2012 Assumed Option, the 2012 SAR and the $.83 Option terminate on the fifth anniversary of the termination date of the Manager (or, if earlier, upon expiration of their term).  

9.           Confidentiality.  The Manager will not, and the Manager will (i) cause Zeitoun not to and (ii) use commercially reasonable efforts as to Carney and Basroon and other persons who are employed by the Manager and provide Services to cause them to not, in each case, other than (a) in the good faith performance of the Services, or (b) to the extent required by legal process, disclose or use for its or their own benefit, confidential information regarding the Company, unless such information has been previously disclosed to the public or is generally known in the industry (other than by reason of the Manager’s breach of this provision) or that is obtained by the Manager prior to the execution of the Agreement or not in connection with the performance of the Services.

 

10. Non-Compete/Non-Solicitation.  During the Term and for a period of one year thereafter, the Manager will not, and will cause Zeitoun and will use commercially reasonable efforts as to other persons who are employed by the Manager and provide Services to the Company to cause them to not, (i) directly or indirectly compete with the Company or its affiliates, (ii) employ or solicit for employment (other than in any general solicitation) any person who is a non-clerical employee of the Company, unless such person ceased to be so employed for a period of at least 6 months, or (iii) solicit any customers of the Company or its affiliates with respect to the services the Company provides to such customers.

 

  

  

  

 

 

11. Injunctive Relief.  It is impossible to measure in money the damages that will accrue to the Company in the event that the Manager breaches any of its obligations under Section 9 or 10  (the “Restrictive Covenants”).  In the event that the Manager breaches any of the Restrictive Covenants, in addition to any other remedy which the Company may have, the Company will be entitled to seek an injunction restraining the Manager from violating such Restrictive Covenant (without posting any bond).

 

12. Indemnification/Directors and Officers Liability Insurance.  The Company will indemnify the Manager and the Management Personnel to the fullest extent permitted by law or its bylaws (including advancement of legal fees).  The Company will cover the Management Personnel under its directors and officers liability insurance both during the Term and thereafter while potential liability exists.  The Manager will indemnify and hold harmless the Company and its affiliates for any and all liabilities arising with respect to the Management Personnel in respect of any income and employment tax withholding or reporting obligations on the amounts paid hereunder by the Company to Manager and/or the amounts and benefits provided by Manager to the Management Personnel.

  

13. Independent Contractor.  The Manager and the Company agree that the Manager will perform services hereunder as an independent contractor, retaining control and direction over and responsibility for its own operations and personnel.

  

14. Definitions.  The terms “Cause”, “Change in Control of the Company”, “Change in Control of the Manager,” “Disabled” and “Good Reason” are defined in Appendix A hereto.

 

15.           Notices. Any notice, report or payment required or permitted to be given or made under this Agreement by one party to the other will be deemed to have been duly given or made if personally delivered or, if mailed, when mailed by registered or certified mail, postage prepaid, to the other party at the following addresses (or at such other address as will be given in writing by one party to the other):

 

If to the Manager:

Material Advisors LLC

Suite 1101

110 Greene St.

New York, New York 10012

 

If to the Company:

General Counsel 

Suite 1101

110 Greene St.

New York, New York 10012

 16. Entire Agreement; Modification. This 2012 Agreement contains the complete and entire understanding and agreement of the Manager and the Company with respect to the subject matter hereof.  This Amended 2012 Agreement. This Amended 2012 Agreement may not be amended or modified except by written instrument executed by both the Manager and the Company.

 

  

  

  

17. Waiver of Breach. The waiver by either party of a breach of any provision of this Agreement by the other party will not operate or be construed as a waiver of any subsequent breach of that provision or any other provision hereof.

 

18. Assignment. The Manager may assign its rights or obligations under this Agreement only with the express written consent of the Company, such consent not to be unreasonably withheld. The Company may assign its rights or obligations under this Agreement only with the express written consent of the Manager, such consent not to be unreasonably withheld.

 

19. Successors. This Agreement and all the obligations and benefits hereunder will inure to the successors and permitted assigns of the parties.

 

20.  Counterparts. This Agreement may be executed and delivered by each party hereto in separate counterparts, each of which when so executed and delivered will be deemed an original and both of which taken together will constitute one and the same agreement.

 

23. Choice of Law. This Agreement and any dispute arising hereunder will be governed by and construed in accordance with the domestic laws of the State of New York, without giving effect to any choice of law or conflict of laws provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York.

  

24. Severability. If any provision of this Agreement is or becomes illegal, invalid or unenforceable under any law or regulation of any jurisdiction, it will, as to such jurisdiction, be deemed modified to the least degree neces2012 Sari to conform to the requirements of such law or regulation, or if for any reason it is not deemed so modified, it will be illegal, invalid or unenforceable only to the extent set forth in the law or regulation without affecting the legality, validity or enforceability of such provision in any other jurisdiction or the remaining provisions of this Agreement.

 

25. Code Section 409A.

 

(a) The Company and the Manager agree that this Agreement is intended to either comply with, or be exempt from, the requirements of Code Section 409A.  To the extent that this Agreement is not exempt from the requirements of Code Section 409A, this Agreement is intended to comply with the requirements of Code Section 409A and will be limited, construed and interpreted in accordance with such intent.  If any provision of this Agreement would cause the Manager to incur any additional tax or interest under Code Section 409A and modifying it would avoid such additional tax or interest, the parties agree that upon the Manager’s request, they will use reasonable business efforts to in good faith reform such provision; provided, that any such modification will not increase the economic burden to the Company and will, to the maximum extent practicable, maintain the original intent and economic benefit to the Manager of the applicable provision without violating the provisions of Code Section 409A.

 

(b) A termination will not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts to the Manager upon or following a termination unless such termination is also a “Separation from Service” within the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms will mean Separation from Service.  With regard to any payment to the Manager upon a Separation from Service that constitutes “non-qualified deferred compensation” pursuant to Code Section 409A, to the extent required to be delayed in compliance with Code Section 409A(a)(2)(B), such payment or benefit will not be made or provided to the Manager prior to the expiration of the six-month period measured from the date of the Separation from Service.  On the first day of the seventh month following the date of the Separation from Service all payments delayed pursuant to this Section 24(b) (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) will be paid the Manager in a lump sum, and any remaining payments due to the Manager under this Agreement will be paid or provided in accordance with the normal payment dates specified for them herein.

 

(c) If under this Agreement, an amount is to be paid in two or more installments, for purposes of Code Section 409A, each installment will be treated as a separate payment.

 

 

  

  

  

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

	
Applied Minerals, Inc.

	
Material Advisors LLC

	  	  
	  	  
	
By: ____________________________

	
By: __________________________

	
        Its __________

	
        Its _____________

	  	  
	  	  

 

 

 

  

  

  

 

 

Appendix A

 

DEFINITIONS

“Cause” will mean (a) Zeitoun’s conviction of, or plea of guilty or nolo contendere to, any felony or crime involving moral turpitude (other than traffic-related offenses or as a result of vicarious liability); (b) fraud, conversion or misappropriation by the Manager or Zeitoun involving the Company or its employees or assets resulting in material injury to the Company; or (c) any act or omission involving malfeasance, willful misconduct or gross negligence by the Manager in the performance of the Services or by Zeitoun in connection with his duties and responsibilities as Chief Executive Officer and a member of the Board, as applicable, in either case, that relates to the Company and, if capable of being cured, is not so cured within 15 days after receipt by the Manager of written notice thereof, (d) a Change in Control of the Manager, or (e) the termination of Zeitoun’s service relationship with the Manager for any reason other than as a result of his death or becoming Disabled, which in the case of (d) or (e), the Manager will provide immediate written notice thereof to the Company.

A “Change in Control of the Company” will occur upon the first to occur of following events:  (a) a sale (or other disposition, including by lease) of all or substantially all of the assets of the Dragon Mine, (b) a merger or consolidation of the Company or a subsidiary with any other corporation or entity, other than a merger or consolidation that would result in the majority of the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the Company or such surviving entity or such surviving entity’s parent outstanding immediately after such merger or consolidation, (c) a change in the majority of the members of the Board to persons who were neither (x) nominated or appointed by the current Board nor (y) nominated or appointed by directors so nominated or appointed, (d) an acquisition by any individual, general partnership, limited partnership, limited liability company, corporation, trust, estate, real estate investment trust association or any other entity (each, a “Person”) or group of Persons (other than David A. Taft, IBS Capital LLC, The IBS Turnaround Fund, L.P., The IBS Turnaround Fund (QP), The IBS Opportunity Fund (BVI), Ltd., the Company, any Company subsidiary or any of their affiliates or related entities or any employee benefit plan of the Company) of the outstanding securities of the Company in a transaction or series of transactions, if immediately thereafter such acquiring Person or group has, or would have, beneficial ownership (as defined under either Rule 16a-1(a)(1) or Rule 16a-1(a)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of more than fifty percent (50%) of the combined equity interests or voting power of the Company, or (e) the consummation of a Rule 13e-3 transaction with respect to the Company.  A reorganization of the Company into a master limited partnership may constitute a Change in Control of the Company if the above definition is met.

 

A “Change in Control of the Manager” will occur upon the effective date of the first to occur of the following events:  (a) a sale of more than 50% percent of the assets of the Manager, (b) a merger or consolidation of the Manager with any other corporation or entity, other than a merger or consolidation that would result in the majority of the voting securities of the Manager outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the Manager or such surviving entity or such surviving entity’s parent outstanding immediately after such merger or consolidation, or (c) an acquisition by any Person or group of Persons (other than Zeitoun or a “group” (as defined in Section 13(d)(3) of the Exchange Act) which includes Zeitoun) of the outstanding securities of the Manager in a transaction or series of transactions, if immediately thereafter such acquiring Person or group has, or would have, beneficial ownership (as defined under either Rule 16a-1(a)(1) or Rule 16a-1(a)(2) of the Exchange Act) of more than fifty percent (50%) of the combined equity interests or voting power of the Manager.

Zeitoun will be considered “Disabled” if he is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months.

“Good Reason” will mean (a) the failure by the Company to perform any of its material obligations under this Agreement, or (c) the requirement that the Manager’s place of service be located outside a 10 mile radius of New York City (excluding business travel) which, in either instance, is not cured within 15 days after receipt by the Company of written notice thereof and provided further that such notice is delivered to the Company no more than 60 days after the occurrence of such purported Good Reason event.Salisbury
BanCORP, INC.

 

2011
LONG TERM INCENTIVE PLAN

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

Salisbury
BanCORP, INC. 

2011
LONG TERM INCENTIVE PLAN

 

	ARTICLE 1 PURPOSE	1
	1.1	General	1
	 	 	 
	ARTICLE 2 DEFINITIONS	1
	2.1	Definitions	1
	 	 	 
	ARTICLE 3 EFFECTIVE TERM OF PLAN	4
	3.1	Effective Date	4
	3.2	Termination of Plan	4
	 	 	 
	ARTICLE 4 ADMINISTRATION	4
	4.1	Committee	4
	4.2	Actions and Interpretations by the Committee	4
	4.3	Authority of Committee	4
	4.4	Indemnification	4
	 	 	 
	ARTICLE 5 SHARES SUBJECT TO THE PLAN	4
	5.1	Number of Shares	4
	5.2	Share Counting	5
	5.3	Stock Distributed	5
	 	 	 
	ARTICLE 6 ELIGIBILITY	5
	6.1	General	5
	 	 	 
	ARTICLE 7 STOCK OPTIONS	5
	7.1	General	5
	7.2	Incentive Stock Options	5
	 	 	 
	ARTICLE 8 STOCK APPRECIATION RIGHTS	6
	8.1	Grant of Stock Appreciation Rights	6
	 	 	 
	ARTICLE 9 RESTRICTED STOCK, RESTRICTED STOCK UNITS AND DEFERRED STOCK UNITS	6
	9.1	Grant of Restricted Stock, Restricted Stock Units and Deferred Stock Units	6
	9.2	Issuance and Restrictions	6
	9.3	Dividends on Restricted Stock	6
	9.4	Forfeiture	6
	9.5	Delivery of Restricted Stock	6
	 	 	 
	ARTICLE 10 PERFORMANCE AWARDS	6
	10.1	Grant of Performance Awards	6
	10.2	Performance Goals	6
	 	 	 
	ARTICLE 11 DIVIDEND EQUIVALENTS	7
	11.1	Grant of Dividend Equivalents	7
	 	 	 
	ARTICLE 12 STOCK OR OTHER STOCK-BASED AWARDS	7
	12.1	Grant of Stock or Other Stock-Based Awards	7
	 	 	 
	ARTICLE 13 DIRECTORS STOCK RETAINER AWARDS	7
	13.1	Name and Purpose	7
	13.2	Definitions	7
	13.3	Stock Subject to Directors Stock Retainer Awards	7
	13.4	Number of Shares and Grant Date	7
	13.5	Vesting	7

 

    	-i-

    	 

    

 

	13.6	Continuation of Service	7
	13.7	Nontransferability; Legend	7
	 	 	 
	ARTICLE 14 PROVISIONS APPLICABLE TO AWARDS	7
	14.1	Award Certificates	8
	14.2	Form of Payment for Awards	8
	14.3	Limits on Transfer	8
	14.4	Beneficiaries	8
	14.5	Stock Trading Restrictions	8
	14.6	Acceleration upon Death or Disability	8
	14.7	Effect of a Change in Control	8
	14.8	Acceleration for Other Reasons	9
	14.9	Forfeiture Events	9
	14.10	Substitute Awards	9
	 	 	 
	ARTICLE 15 CHANGES IN CAPITAL STRUCTURE	9
	15.1	Mandatory Adjustments	9
	15.2	Discretionary Adjustments	9
	15.3	General	9
	 	 	 
	ARTICLE 16 AMENDMENT, MODIFICATION AND TERMINATION	9
	16.1	Amendment, Modification and Termination	9
	16.2	Awards Previously Granted	9
	16.3	Compliance Amendments	10
	 	 	 
	ARTICLE 17 GENERAL PROVISIONS	10
	17.1	Rights of Participants	10
	17.2	Withholding	10
	17.3	Special Provisions Related to Section 409A of the Code	10
	17.4	Unfunded Status of Awards	11
	17.5	Relationship to Other Benefits	11
	17.6	Expenses	11
	17.7	Titles and Headings	11
	17.8	Gender and Number	11
	17.9	Fractional Shares	11
	17.10	Government and Other Regulations	11
	17.11	Governing Law	11
	17.12	Severability	11
	17.13	No Limitations on Rights of Corporation	11
	17.14	Indemnification	11

 

 

    	-ii-

    	 

    

Salisbury
BanCORP, INC. 

2011
LONG TERM INCENTIVE PLAN

ARTICLE 1

PURPOSE

1.1.GENERAL. The purpose
of the Salisbury Bancorp, Inc. 2011 LONG TERM INCENTIVE PLAN (the “Plan”) is to promote the success and enhance the
value of Salisbury Bancorp, Inc. (the “Corporation”), by linking the personal interests of employees, officers and
directors of the Corporation or any Affiliate (as defined below) to those of the Corporation’s shareholders and by providing
such persons with an incentive for outstanding performance. The Plan is further intended to provide flexibility to the Corporation
in its ability to motivate, attract, and retain the services of employees, officers and directors and consultants upon whose judgment,
interest, and special effort the successful conduct of the Corporation’s operation is largely dependent. Accordingly, the
Plan permits the grant of incentive awards from time to time to selected employees, officers and directors of the Corporation and
its Affiliates.

ARTICLE 2

DEFINITIONS

2.1.DEFINITIONS. When a
word or phrase appears in this Plan with the initial letter capitalized, and the word or phrase does not commence a sentence, the
word or phrase shall generally be given the meaning ascribed to it in this Section or in Section 1.1 unless a clearly different
meaning is required by the context. The following words and phrases shall have the following meanings:

(a)                
“Affiliate” means (i) any Subsidiary or Parent, or (ii) an entity that directly or through one or more
intermediaries controls, is controlled by or is under common control with, the Corporation, as determined by the Committee.

(b)                
“Award” means an award of Options, Stock Appreciation Rights, Restricted Stock,
Restricted Stock Units, Deferred Stock Units, Performance Awards, Dividend Equivalents, Other Stock-Based Awards,
Directors Stock Retainer Awards, or any other right or interest relating to Stock or cash, granted to a Participant under
the Plan.

(c)                
“Award Certificate” means a written document, in such form as the Committee prescribes from time to time,
setting forth the terms and conditions of an Award. Award Certificates may be in the form of individual award agreements or certificates
or a program document describing the terms and provisions of an Award or series of Awards under the Plan. The Committee may provide
for the use of electronic, internet or other non-paper Award Certificates, and the use of electronic, internet or other non-paper
means for the acceptance thereof and actions thereunder by a Participant.

(d)                
“Bank” means Salisbury Bank & Trust Company.

(e)                
“Beneficial Owner” shall have the meaning given such term in Rule 13d-3 of the General Rules and Regulations
under the 1934 Act.

(f)                 
“Board” means the Board of Directors of the Corporation.

(i)during
any consecutive 12-month period, individuals who, at the beginning of such period, constitute the Board of Directors of the Corporation
(the “Incumbent Directors”) cease for any reason to constitute at least a majority of such Board, provided that any
person becoming a director after the beginning of such 12-month period and whose election or nomination for election was approved
by a vote of at least a majority of the Incumbent Directors then on the Board shall be an Incumbent Director; provided,
however, that no individual initially elected or nominated as a director of the Corporation as a result of an actual or
threatened election contest with respect to the election or removal of directors (“Election Contest”) or other actual
or threatened solicitation of proxies or consents by or on behalf of any Person other than the Board (“Proxy Contest”),
including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest, shall be deemed an Incumbent
Director; or

(ii)any
person becomes a Beneficial Owner, directly or indirectly, of either (A) 50% or more of the then-outstanding shares of the Corporation’s
Stock or (B) securities of the Corporation representing 50% or more of the combined voting power of the Corporation’s then
outstanding securities eligible to vote for the election of directors (the “Corporation Voting Securities”); provided,
however, that for purposes of this subsection (ii), the following acquisitions of Corporation’s Stock or Corporation
Voting Securities shall not constitute a Change in Control: (w) an acquisition directly from the Corporation, (x) an acquisition
by the Corporation or a Subsidiary, (y) an acquisition by any employee benefit plan (or related trust) sponsored or maintained
by the Corporation or any Subsidiary, or (z) an acquisition pursuant to a Non-Qualifying Transaction (as defined in subsection
(iii) below); or

(iii)the
consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving
the Corporation or a Subsidiary (a “Reorganization”), or the sale or other disposition of all or substantially all
of the Corporation’s assets (a “Sale”) or the acquisition of assets or stock of another corporation or other
entity (an “Acquisition”), unless immediately following such Reorganization, Sale or Acquisition: (A) all or substantially
all of the individuals and entities who were the Beneficial Owners, respectively, of the outstanding Corporation’s Stock
and outstanding Corporation Voting Securities immediately prior to such Reorganization, Sale or Acquisition beneficially own, directly
or indirectly, more than 50% of, respectively, the then outstanding shares of common stock and

    	-1-

    	 

    
 

the combined voting power of the
then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting
from such Reorganization, Sale or Acquisition (including, without limitation, an entity which as a result of such transaction owns
the Corporation or all or substantially all of the Corporation’s assets or stock either directly or through one or more subsidiaries,
the “Surviving Entity”) in substantially the same proportions as their ownership, immediately prior to such Reorganization,
Sale or Acquisition, of the Corporation’s outstanding Stock and the outstanding Corporation Voting Securities, as the case
may be, and (B) no person (other than (x) the Corporation or any Subsidiary, (y) the Surviving Entity or its ultimate parent entity,
or (z) any employee benefit plan (or related trust) sponsored or maintained by any of the foregoing) is the Beneficial Owner, directly
or indirectly, of 50% or more of the total common stock or 50% or more of the total voting power of the outstanding voting securities
eligible to elect directors of the Surviving Entity, and (C) at least a majority of the members of the board of directors of the
Surviving Entity were Incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing
for such Reorganization, Sale or Acquisition (any Reorganization, Sale or Acquisition which satisfies all of the criteria specified
in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”); or

(iv)approval
by the shareholders of the Corporation of a complete liquidation or dissolution of the Corporation.

(i)                  
“Code” means the Internal Revenue Code of 1986, as amended from time to time. For purposes of this Plan,
references to sections of the Code shall be deemed to include references to any applicable regulations thereunder and any successor
or similar provision.

(j)                 
“Committee” means the committee of the Board described in Section 4.1.

(k)                
“Corporation” means Salisbury Bancorp, Inc., a Connecticut corporation, or any successor corporation.

(l)                  
“Continuous Service” means the absence of any interruption or termination
of service as an employee, officer or director of the Corporation or any Affiliate, as applicable;
provided, however, that for purposes of an Incentive Stock Option “Continuous Service”
means the absence of any interruption or termination of service as an employee of the Corporation or any Parent or Subsidiary,
as applicable, pursuant to applicable tax regulations. Continuous Service shall not be considered interrupted in the following
cases: (i) a Participant transfers employment between the Corporation and an Affiliate or between Affiliates, or (ii) in
the discretion of the Committee as specified at or prior to such occurrence, in the case of a spin-off, sale or disposition of
the Participant’s employer from the Corporation or any Affiliate, or (iii) any leave of absence
authorized in writing by the Corporation prior to its commencement; provided, however, that for purposes of Incentive Stock
Options, no such leave may exceed 90 days, unless reemployment upon expiration of such leave is guaranteed by statute or contract.
If reemployment upon expiration of a leave of absence approved by the Corporation is not so guaranteed, on the 91st day of such
leave any Incentive Stock Option held by the Participant shall cease to be treated as an Incentive Stock Option and shall be treated
for tax purposes as a Nonstatutory Stock Option. Whether military, government or other service
or other leave of absence shall constitute a termination of Continuous Service shall be determined in each case by the Committee
at its discretion, and any determination by the Committee shall be final and conclusive; provided, however, that for purposes of
any Award that is subject to Code Section 409A, the determination of a leave of absence must comply with the requirements of a
“bona fide leave of absence” as provided in Treas. Reg. Section 1.409A-1(h).

(m)              
“Deferred Stock Unit” means a right granted to a Participant under Article 9 to
receive Shares (or the equivalent value in cash or other property if the Committee so provides)
at a future time as determined by the Committee, or as determined by the Participant within guidelines established by the
Committee in the case of voluntary deferral elections.

(n)                
“Director” means a member of the Board.

(o)                
“Directors Stock Retainer Award” means Stock granted to a Director under Article 13 that is subject to
certain restrictions.

(p)                
“Disability” of a Participant means that the Participant (i) is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can
be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical
or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than
12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering
employees of the Participant’s employer. The Participant shall be deemed disabled if (i) determined
to be totally disabled by the Social Security Administration or (ii) determined to be disabled in accordance with a disability
insurance program, provided that the definition of disability applied under such program complies with the requirement of the applicable
regulations under Section 409A of the Code. If the determination of Disability relates
to an Incentive Stock Option, Disability means Permanent and Total Disability as defined in Section 22(e)(3) of the Code. In the
event of a dispute, the determination of whether a Participant is Disabled will be made by the Committee and may be supported by
the advice of a physician competent in the area to which such Disability relates.

(q)                
“Dividend Equivalent” means a right granted to a Participant under Article 11.

(r)                 
“Effective Date” has the meaning assigned such term in Section 3.1.

(s)                 
“Eligible Participant” means an employee, officer or director of the Corporation or any Affiliate.

(t)                 
“Fair Market Value,” on any date, means (i) if the Stock is listed on a securities exchange, the closing
sales price on the principal such exchange on such date or, in the absence of reported sales on such date, the closing sales price
on the immediately preceding date on which sales were reported, or (ii) if the Stock is not listed on a securities exchange, the
mean between the bid and offered prices as quoted by the applicable interdealer quotation system for such date, provided that if
the Stock is not quoted on an interdealer quotation system or it is determined that the fair market value is not properly reflected
by such quotations, Fair Market Value will be determined by such other method as the Committee determines in good faith to be reasonable
and in compliance with Code Section 409A.

    	-2-

    	 

    
 

(u)                
“Full-Value Award” means an Award other than in the form of an Option or SAR, and which is settled
by the issuance of Stock (or at the discretion of the Committee, settled in cash valued by reference to Stock value).

(w)               
“Grant Date” of an Award means the first date on which all necessary corporate action has been taken
to approve the grant of the Award as provided in the Plan, or such later date as is determined and specified as part of that authorization
process. Notice of the grant shall be a provided to the grantee within a reasonable time after the Grant Date.

(x)                
“Incentive Stock Option” means an Option that is intended to be an incentive stock option and meets the
requirements of Section 422 of the Code or any successor provision thereto.

(y)                
“Nonstatutory Stock Option” means an Option that is not an Incentive Stock Option.

(z)                
“Option” means a right granted to a Participant under Article 7 of the Plan to purchase Stock at a specified
price during specified time periods. An Option may be either an Incentive Stock Option or a Nonstatutory Stock Option.

(aa)            
“Other Stock-Based Award” means a right, granted to a Participant under Article 12, that relates to or
is valued by reference to Stock or other Awards relating to Stock.

(bb)            
“Parent” means a corporation, limited liability company, partnership or other entity which owns or beneficially
owns a majority of the outstanding voting stock or voting power of the Corporation. Notwithstanding the above, with respect to
an Incentive Stock Option, Parent shall have the meaning set forth in Section 424(e) of the Code.

(cc)             
“Participant” means an Eligible Participant who has been granted an Award under the Plan; provided that
in the case of the death of a Participant, the term “Participant” refers to a beneficiary designated pursuant to Section
13.4 or the legal guardian or other legal representative acting in a fiduciary capacity on behalf of the Participant under applicable
state law and court supervision.

(dd)            
“Performance Award” means any award granted under the Plan pursuant to Article 10.

(ee)             
“Person” means any individual, entity or group, within the meaning of Section 3(a)(9) of the 1934 Act
and as used in Section 13(d)(3) or 14(d)(2) of the 1934 Act.

(ff)              
“Plan” means the Salisbury Bancorp, Inc. 2011 LONG TERM INCENTIVE PLAN, as amended from time to time.

(gg)             
“Plan Share Reserve” shall have the meaning ascribed thereto in Section 5.1.

(hh)            
“Public Offering” means a public offering of any class or series of the Corporation’s equity securities
pursuant to a registration statement filed by the Corporation under the 1933 Act.

(ii)                
“Restricted Stock” means Stock granted to a Participant under Article 9 that is subject to certain restrictions
and to risk of forfeiture.

(jj)               
“Restricted Stock Unit” means the right granted to a Participant under Article 9 to receive shares of Stock
(or the equivalent value in cash or other property if the Committee so provides) in the future,
which right is subject to certain restrictions and to risk of forfeiture.

(kk)            
“Shares” means shares of the Corporation’s Stock. If there has been an adjustment or substitution
pursuant to Article 14, the term “Shares” shall also include any shares of stock or other securities that are substituted
for Shares or into which Shares are adjusted pursuant to Article 14.

(ll)                
“Stock” means the common stock, $.10 par value, of the Corporation and such other securities of the Corporation
as may be substituted for Stock pursuant to Article 14.

(mm)        
“Stock Appreciation Right” or “SAR” means a right granted to a Participant under Article
8 to receive a payment equal to the difference between the Fair Market Value of a Share as of the date of exercise of the SAR over
the base price of the SAR, all as determined pursuant to Article 8.

(nn)            
“Subsidiary” means any corporation, limited liability company, partnership or other entity of which a
majority of the outstanding voting stock or voting power is beneficially owned directly or indirectly by the Corporation, including
but not limited to Salisbury Bank & Trust Company, and any Subsidiary of Salisbury Bank & Trust Company. Notwithstanding
the above, with respect to an Incentive Stock Option, Subsidiary shall have the meaning set forth in Section 424(f) of the Code.

(oo)            
“Termination Date” means the date determined in accordance with Section 3.2.

(pp)            
“1933 Act” means the Securities Act of 1933, as amended from time to time.

    	-3-

    	 

    
 

(qq)            
“1934 Act” means the Securities Exchange Act of 1934, as amended from time to time.

ARTICLE 3

EFFECTIVE TERM OF PLAN

3.1.EFFECTIVE DATE. Subject
to the approval of the Plan by the Corporation’s shareholders within 12 months after the Plan’s adoption by the Board,
the Plan will become effective on the date that it is adopted by the Board (the “Effective Date”).

3.2.TERMINATION OF PLAN.
Unless earlier terminated as provided herein, the Plan shall continue in effect until the tenth anniversary of the Effective Date
or, if the shareholders approve an amendment to the Plan that increases the number of Shares subject to the Plan, the tenth anniversary
of the date of such approval (the “Termination Date”). The
termination of the Plan on such date shall not affect the validity of any Award outstanding on the date of termination, which shall
continue to be governed by the applicable terms and conditions of the Plan.

ARTICLE 4

ADMINISTRATION

4.1.COMMITTEE. The Plan
shall be administered by the Compensation Committee appointed by the Board or, at the discretion of the Board from time to time,
the Plan may be administered by the Board. The members of the Committee shall be appointed by, and may be changed at any time and
from time to time, in the discretion of the Board. The Board may reserve to itself any or all of the authority and responsibility
of the Committee under the Plan or may act as administrator of the Plan for any and all purposes. To the extent the Board has reserved
any authority and responsibility or during any time that the Board is acting as administrator of the Plan, it shall have all the
powers and protections of the Committee hereunder, and any reference herein to the Committee (other than in this Section 4.1) shall
include the Board. To the extent any action of the Board under the Plan conflicts with actions taken by the Committee, the actions
of the Board shall control.

4.2.ACTIONS AND INTERPRETATIONS
BY THE COMMITTEE. For purposes of administering the Plan, the Committee may from time to time adopt rules, regulations, guidelines
and procedures for carrying out the provisions and purposes of the Plan and make such other determinations, not inconsistent with
the Plan, as the Committee may deem appropriate. The Committee may correct any defect, supply any omission or reconcile any inconsistency
in the Plan or in any Award in the manner and to the extent it deems necessary to carry out the intent of the Plan. The Committee’s
interpretation of the Plan, any Awards granted under the Plan, any Award Certificate and all decisions and determinations by the
Committee with respect to the Plan are final, binding, and conclusive on all parties. Each member of the Committee is entitled
to, in good faith, rely or act upon any report or other information furnished to that member by any officer or other employee of
the Corporation or any Affiliate, the Corporation’s independent certified public accountants, the Corporation’s or
an Affiliate’s counsel or any executive compensation consultant or other professional retained by the Corporation to assist
in the administration of the Plan. No member of the Committee will be liable for any good faith determination, act or omission
in connection with the Plan or any Award.

4.3.AUTHORITY OF COMMITTEE.
Except as provided in Section 4.1 hereof, the Committee has the exclusive power, authority and discretion to:

(a)                
Grant Awards;

(b)                
Designate Participants;

(c)Determine the
type or types of Awards to be granted to each Participant;

(d)Determine the
number of Awards to be granted and the number of Shares or dollar amount to which an Award will relate;

(e)Determine the
terms and conditions of any Award granted under the Plan;

(f)Prescribe the
form of each Award Certificate, which need not be identical for each Participant;

(g)Decide all other
matters that must be determined in connection with an Award;

(h)Establish, adopt
or revise any rules, regulations, guidelines or procedures as it may deem necessary or advisable to administer the Plan;

(i)Make all other
decisions and determinations that may be required under the Plan or as the Committee deems necessary or advisable to administer
the Plan;

(j)Amend the Plan
or any Award Certificate as provided herein; and

(k)Adopt such modifications,
procedures, and subplans as may be necessary or desirable to comply with provisions of the laws of the United States or Connecticut
in order to assure the viability of the benefits of Awards granted to Participants and to further the objectives of the Plan.

4.4.INDEMNIFICATION.
Each person who is or shall have been a member of the Committee, or of the Board,
shall be indemnified and held harmless by the Corporation against and from any loss, cost, liability, or expense that may be imposed
upon or reasonably incurred by him or her in connection with or resulting from any claim,
action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action
taken or failure to act under the Plan and against and from any and all amounts paid by him or her in settlement thereof, with
the Corporation’s approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding
against him or her, provided he or she shall give the Corporation an opportunity, at its own
expense, to handle and defend the same before he or she undertakes to handle and defend
it on his or her own behalf, unless such loss, cost, liability, or expense is a result of his or her own willful misconduct or
except as expressly provided by statute. The foregoing right of indemnification shall not
be exclusive of any other rights of indemnification to which such persons may be entitled under the Corporation’s
charter or bylaws, as a matter of law, or otherwise, or any power that the Corporation may have to indemnify them or hold
them harmless.

ARTICLE 5

SHARES SUBJECT TO THE PLAN

5.1.NUMBER OF SHARES. Subject
to adjustment as provided in Sections 5.2 and Section 15.1, the aggregate number of Shares reserved and available for issuance
pursuant to Awards granted under the Plan (the “Plan Share Reserve”) shall be 84,000, subject to adjustments made pursuant
to Article 15. The maximum number of Shares that may be issued upon exercise of Incentive Stock
Options granted under the Plan shall be 42,000, subject to adjustments made pursuant to Article 15. No more than 20,000 Shares,
subject to adjustments made pursuant to Article 15, shall be issued pursuant to Awards granted under the Plan in any one calendar
year. Subject to adjustments made pursuant to Article 15, the maximum

    	-4-

    	 

    
 

number of Shares which may be issued as Directors Stock Retainer
Awards shall be 15,000.

5.2.SHARE
COUNTING. Shares covered by an Award shall be subtracted from the Plan Share Reserve as of the Grant Date, but shall be added
back to the Plan share reserve in accordance with this Section 5.2

(a)To the
extent that an Award is canceled, terminates, expires, is forfeited or lapses for any reason, any unissued or forfeited Shares
originally subject to the Award will be added back to the Plan Share Reserve and again be available for issuance pursuant to Awards
granted under the Plan.

(b)Shares
subject to Awards settled in cash will be added back to the Plan Share Reserve and again be available for issuance pursuant to
Awards granted under the Plan.

(c)Shares
withheld or repurchased from an Award or delivered by a Participant to satisfy minimum tax withholding requirements will be added
back to the Plan Share Reserve and again be available for issuance pursuant to Awards granted under the Plan. 

(d)If the
exercise price of an Option is satisfied in whole or in part by delivering Shares to the Corporation (by either actual delivery
or attestation), the number of Shares so tendered (by delivery or attestation) shall be added to the Plan Share Reserve and will
be available for issuance pursuant to Awards granted under the Plan.

(e)To the
extent that the full number of Shares subject to an Option or SAR is not issued upon exercise of the Option or SAR for any reason,
including by reason of net-settlement of the Award, the unissued Shares originally subject to the Award will be added back to the
Plan Share Reserve and again be available for issuance pursuant to other Awards granted under the Plan.

(f)To the extent
that the full number of Shares subject to an Award other than an Option or SAR is not issued for any reason, including by reason
of failure to achieve maximum performance goals, the unissued Shares originally subject to the Award will be added back to the
Plan Share Reserve and again be available for issuance pursuant to Awards granted under the Plan.

(g)Substitute
Awards granted pursuant to Section 14.10 of the Plan shall not count against the Shares otherwise available for issuance under
the Plan under Section 5.1.

5.3.STOCK DISTRIBUTED. Any
Stock distributed pursuant to an Award may consist, in whole or in part, of authorized and unissued Stock, treasury Stock or Stock
purchased on the open market.

ARTICLE 6

ELIGIBILITY

6.1.GENERAL. Awards may
be granted only to Eligible Participants. Incentive Stock Options may be granted only to Eligible Participants who are employees
of the Corporation or a Parent or Subsidiary as defined in Section 424(e) and (f) of the Code. Eligible Participants who are service
providers to an Affiliate may be granted Options or SARs under this Plan only if the Affiliate qualifies as an “eligible
issuer of service recipient stock” within the meaning of §1.409A-1(b)(5)(iii)(E) of the final regulations under Code
Section 409A.

ARTICLE 7

STOCK OPTIONS

7.1.GENERAL. The Committee
is authorized to grant Options to Participants on the following terms and conditions:

(a)EXERCISE
PRICE. The exercise price per Share under an Option shall be determined by the Committee, provided that the exercise price
for any Option (other than an Option issued as a substitute Award pursuant to Section 14.10) shall not be less than the Fair Market
Value as of the Grant Date.

(b)TIME AND
CONDITIONS OF EXERCISE. The Committee shall determine the time or times at which an Option may be exercised in whole or in
part, subject to Section 7.1(d), including a provision that an Option that is otherwise exercisable and has an exercise price that
is less than the Fair Market Value of the Stock on the last day of its term will be automatically exercised on such final date
of the term by means of a “net exercise,” thus entitling the optionee to Shares equal to the intrinsic value of the
Option on such exercise date, less the number of Shares required for tax withholding. The Committee shall also determine that the
performance or other conditions, if any, that must be satisfied before all or part of an Option may be exercised or vested have
been satisfied.

(c)PAYMENT.
The Committee shall determine the method or methods by which the exercise price of an Option may be paid, the form of payment,
and the method or methods by which Shares shall be delivered or deemed to be delivered to Participants. As determined by the Committee
at or after the Grant Date, payment of the exercise price of an Option may be made in, in whole or in part, in the form of (i)
cash or cash equivalents, (ii) delivery (by either actual delivery or attestation) of previously-acquired Shares based on the Fair
Market Value of the Shares on the date the Option is exercised, (iii) withholding of Shares to be delivered upon exercise of the
Option based on the Fair Market Value of the Shares on the date the Option is exercised, (iv) broker-assisted market sales, or
(iv) any other “cashless exercise” arrangement.

(d)EXERCISE
TERM. No Option granted under the Plan shall be exercisable for more than ten years from the Grant Date.

(e)NO DEFERRAL
FEATURE. No Option shall provide for any feature for the deferral of compensation other than the
deferral of recognition of income until the exercise or disposition of the Option.

(f)NO DIVIDEND
EQUIVALENTS. No Option shall provide for Dividend Equivalents.

7.2.INCENTIVE
STOCK OPTIONS. The terms of any Incentive Stock Options granted under the Plan must comply with the requirements of Section
422 of the Code. Without limiting the foregoing, any Incentive Stock Option granted to a Participant who at the Grant Date owns
more than 10% of the voting power of all classes of shares of the Corporation must have an exercise price per Share of not less
than 110% of the Fair Market Value per Share on the Grant Date and an Option term of not more than five years. If all of the requirements
of Section 422 of the Code (including the above) are not met, the Option shall automatically become a Nonstatutory Stock Option.

    	-5-

    	 

    
 

ARTICLE 8

STOCK APPRECIATION RIGHTS

8.1.GRANT OF Stock
Appreciation Rights. The Committee is authorized to grant Stock Appreciation Rights to Participants on the following
terms and conditions:

(a)RIGHT TO
PAYMENT. Upon the exercise of a SAR, the Participant has the right to receive, for each Share with respect to which the SAR
is being exercised, the excess, if any, of:

(1)The
Fair Market Value of one Share on the date of exercise; over

(2)The
base price of the SAR as determined by the Committee and set forth in the Award Certificate, which shall not be less than the Fair
Market Value of one Share on the Grant Date.

(b)TIME AND
CONDITIONS OF EXERCISE. The Committee shall determine the time or times at which a SAR may be exercised in whole or in part,
including a provision that a SAR that is otherwise exercisable and has a base price that is less than the Fair Market Value of
the Stock on the last day of its term will be automatically exercised on such final date of the term, thus entitling the holder
to cash, Shares or other property equal to the intrinsic value of the SAR on such exercise date, less the cash or number of Shares
required for tax withholding. No SAR shall be exercisable for more than ten years from the Grant Date.

(c)NO DEFERRAL
FEATURE. No SAR shall provide for any feature for the deferral
of compensation other than the deferral of recognition of income until the exercise or disposition of the SAR.

(d)NO DIVIDEND
EQUIVALENTS. No SAR shall provide for Dividend Equivalents.

(e)OTHER TERMS.
All SARs shall be evidenced by an Award Certificate. Subject to the limitations of this Article 8, the terms, methods of exercise,
methods of settlement, form of consideration payable in settlement (e.g., cash, Shares or other property), and any other terms
and conditions of the SAR shall be determined by the Committee at the time of the grant and shall be reflected in the Award Certificate.

ARTICLE 9

RESTRICTED STOCK, RESTRICTED STOCK UNITS

AND DEFERRED STOCK UNITS

9.1.GRANT OF RESTRICTED
STOCK, RESTRICTED STOCK UNITS AND DEFERRED STOCK UNITS. The Committee is authorized to make Awards of Restricted Stock, Restricted
Stock Units or Deferred Stock Units to Participants in such amounts and subject to such terms and conditions as may be selected
by the Committee. An Award of Restricted Stock, Restricted Stock Units or Deferred Stock Units shall be evidenced by an Award Certificate
setting forth the terms, conditions, and restrictions applicable to the Award.

9.2.ISSUANCE
AND RESTRICTIONS. Restricted Stock, Restricted Stock Units or Deferred Stock Units shall be subject to such restrictions on
transferability and other restrictions as the Committee may impose (including, for example, limitations on the right to receive
dividends on the Restricted Stock). These restrictions may lapse separately or in combination at such times, under such circumstances,
in such installments, upon the satisfaction of performance goals or otherwise, as the Committee determines at the time of the grant
of the Award or thereafter. Except as otherwise provided in an Award Certificate or any special Plan document governing
an Award, a Participant shall have none of the rights of a shareholder with respect to Restricted
Stock Units or Deferred Stock Units until such time as Shares of Stock are paid in settlement
of such Awards. 

9.3DIVIDENDS
ON RESTRICTED STOCK. In the case of Restricted Stock that is not subject to performance-based vesting,
unless the Committee determines otherwise, cash dividends declared on the Shares of Restricted Stock before they are vested
will be paid or distributed to the Participant as accrued (in which case, such dividends must be paid or distributed no later than
the 15th day of the 3rd month following the later of (A) the calendar year in
which the corresponding dividends were paid to shareholders, or (B) the first calendar year in which the Participant’s right
to such dividends is no longer subject to a substantial risk of forfeiture). The Committee may provide that cash dividends
declared on the Shares of Restricted Stock before they are vested (i) will be forfeited, (ii) will be reinvested or deemed to have
been reinvested in additional Shares, which shall be subject to the same vesting provisions as provided for the host Award (subject
to Share availability under Section 5.1 hereof), or (iii) be credited by the Corporation to an account for the Participant and
accumulated without interest until the date or dates upon which the host Award becomes vested, and any dividends accrued with respect
to forfeited Restricted Stock will be reconveyed to the Corporation without further consideration or any act or action by the Participant.

9.4.FORFEITURE. Subject
to the terms of the Award Certificate and except as otherwise determined by the Committee at the time of the grant of the Award
or thereafter, upon termination of Continuous Service during the applicable restriction period or upon failure to satisfy a performance
goal during the applicable restriction period, Restricted Stock or Restricted Stock Units that are at that time subject to restrictions
shall be forfeited.

9.5.DELIVERY OF RESTRICTED STOCK.
Shares of Restricted Stock shall be delivered to the Participant at the Grant Date either by book-entry registration or by delivering
to the Participant, or a custodian or escrow agent (including, without limitation, the Corporation or one or more of its employees)
designated by the Committee, a stock certificate or certificates registered in the name of the Participant. If physical certificates
representing shares of Restricted Stock are registered in the name of the Participant, such certificates must bear an appropriate
legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock.

ARTICLE 10

PERFORMANCE AWARDS

10.1.GRANT OF PERFORMANCE AWARDS.
The Committee is authorized to grant any Award under this Plan, including cash-based Awards, with performance-based vesting criteria,
on such terms and conditions as may be selected by the Committee. Any such Awards with performance-based vesting criteria are referred
to herein as Performance Awards. The Committee shall have the complete discretion to determine the number of Performance Awards
granted to each Participant and to designate the provisions of such Performance Awards as provided in Section 4.3. All Performance
Awards shall be evidenced by an Award Certificate or a written program established by the Committee, pursuant to which Performance
Awards are awarded under the Plan under uniform terms, conditions and restrictions set forth in such written program. All Performance
Awards which become vested shall be subject to recovery (“clawback”) by the Corporation to the extent required by law
or regulations applicable to the Corporation or any Affiliate.

10.2.PERFORMANCE GOALS.
The Committee may establish performance goals for Performance Awards which may be based on any criteria selected by the Committee.
Such performance goals may be described in terms of Corporation-wide objectives or in terms of objectives that

    	-6-

    	 

    
 

relate to the performance
of the Participant, an Affiliate or a division, region, department or function within the Corporation or an Affiliate. If the Committee
determines that a change in the business, operations, corporate structure or capital structure of the Corporation or the manner
in which the Corporation or an Affiliate conducts its business or other events or circumstances render performance goals to be
unsuitable, the Committee may modify such performance goals in whole or in part, as the Committee deems appropriate. If a Participant
is promoted, demoted or transferred to a different business unit or function during a performance period, the Committee may determine
that the performance goals or performance period are no longer appropriate and may (i) adjust, change or eliminate the performance
goals or the applicable performance period as it deems appropriate to make such goals and period comparable to the initial goals
and period, (ii) make a cash payment to the Participant in an amount determined by the Committee or (iii) terminate such unvested
Performance Award without any payment to the Participant.

ARTICLE 11

DIVIDEND EQUIVALENTS

11.1.GRANT OF
DIVIDEND EQUIVALENTS. The Committee is authorized to grant Dividend Equivalents with respect to Full-Value Awards granted hereunder,
subject to such terms and conditions as may be selected by the Committee. Dividend Equivalents shall entitle the Participant to
receive payments equal to cash dividends or distributions with respect to all or a portion of the number of Shares subject to a
Full-Value Award, as determined by the Committee. Unless the Committee determines otherwise, Dividend Equivalents will be deemed
to have been reinvested in additional Shares or otherwise reinvested (subject to Share availability under Section 5.1 hereof),
which shall be subject to the same vesting provisions as provided for the host Award. The Committee
may provide that Dividend Equivalents will be (i) credited by the Corporation to an account for the Participant and accumulated
without interest until the date upon which the host Award becomes vested, and any Dividend Equivalents accrued with respect to
forfeited Awards will be reconveyed to the Corporation without further consideration or any act or action by the Participant or
(ii) except in the case of Performance Awards, paid or distributed to the Participant as accrued (in which case, such Dividend
Equivalents must be paid or distributed no later than the 15th day of the 3rd
month following the later of (A) the calendar year in which the corresponding dividends were paid to shareholders, or (B) the first
calendar year in which the Participant’s right to such Dividends Equivalents is no longer subject to a substantial risk of
forfeiture).

ARTICLE 12

STOCK OR OTHER STOCK-BASED AWARDS

12.1.GRANT OF STOCK OR OTHER
STOCK-BASED AWARDS. The Committee is authorized, subject to limitations under applicable law, to grant to Participants such
other Awards that are payable in, valued in whole or in part by reference to, or otherwise based on or related to, Shares, as deemed
by the Committee to be consistent with the purposes of the Plan, including without limitation Shares awarded purely as a “bonus”
and not subject to any restrictions or conditions, other rights convertible or exchangeable into Shares, and Awards valued by reference
to book value of Shares or the value of securities of or the performance of specified Parents or Subsidiaries. The Committee shall
determine the terms and conditions of such Awards.

ARTICLE 13

DIRECTORS STOCK RETAINER AWARDS

13.1.NAME AND
PURPOSE. Directors Stock Retainer Awards are for the purposes of enhancing the ability of the Corporation to attract and retain
highly qualified individuals to serve as non-employee Directors of the Corporation and to provide additional incentives to such
Directors to promote the success of the Corporation and its Affiliates. The Directors Stock Retainer Awards provides non-employee
Directors with shares of Stock as a component of compensation for their services as Directors.

13.2.DEFINITIONS. For purposes
of this Article 13, the following definitions shall apply:

(a)                
“Annual Stock Retainer” means the 120 shares of Stock payable to each Director on an annual basis as part of
each Director’s compensation for service on the Board.

(b)                
“Annual Meeting Date” means the date of each annual meeting of the shareholders of the Corporation held after
the Effective Date.

(c)                
“Value” means the value of a share of Stock on the last trading day preceding a Grant Date or other date on
which Stock is issued pursuant to this Article 13.

(d)                
“Director” for purposes of this Article 13 means a non-employee member of the Board.

(e)                
“Grant Date” means the date on which a grant of an Annual Stock retainer takes effect, which shall be last business
day preceding the each Annual Meeting Date before the Termination Date.

(f)                 
“Pro-Rated Stock Retainer” means a number of Shares equal to 120 multiplied by a fraction, the numerator of
which is the number of months of such a new Director’s service as a member of the Board (rounded to the nearest full month)
and the denominator of which is 12, provided, however, that such fraction shall not be in excess of 1.0.

13.3.STOCK SUBJECT
TO DIRECTORS STOCK RETAINER AWARDS. Subject to adjustments made pursuant to Article 15, the maximum number of Shares that may
be issued as Directors Stock Retainer Awards shall be 15,000.

13.4.NUMBER OF SHARES AND GRANT
DATE. On each annual Grant Date beginning with the first Grant Date after the Effective Date, each Director whose term of office
begins with or continues after such Grant Date shall be issued a number of whole shares of Stock set forth in the Annual Stock
Retainer (120 shares). Each Director who is first elected to the Board after the Effective Date (and who was not then a member
of the Board) other than on an Annual Meeting Date shall be granted a number of whole shares of Stock equal to the Pro-Rated Stock
Retainer.

13.5.VESTING. Director
Stock Retainer Awards shall be fully vested upon the Director ceasing to be a director, whether or not employed by the Corporation
or any Affiliate. Until the Director Stock Retainer Award is vested, the Director shall have all of the rights of a shareholder
with respect to the shares of Stock, including the right to vote such shares and the right to receive dividends thereon.

13.6CONTINUATION OF SERVICE.
Nothing in this Plan shall confer upon any person any right to continue to serve as a Director, or to receive shares of Stock issued
pursuant to this Plan if such person is not serving as a Director on a Grant Date.

13.7NONTRANSFERABILITY; LEGEND.
No shares of Stock granted as Director Stock Retainer Awards shall be transferable by the Director except as provided in this Plan.
All share certificates issued pursuant to Director Stock Retainer Awards shall bear an appropriate legend reflecting the foregoing
restrictions and limitations on transfer.

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ARTICLE 14

PROVISIONS APPLICABLE TO AWARDS

14.1.AWARD CERTIFICATES.
Each Award shall be evidenced by an Award Certificate. Each Award Certificate shall include such provisions, not inconsistent with
the Plan, as may be specified by the Committee.

14.2.FORM OF PAYMENT FOR AWARDS.
At the discretion of the Committee, payment of Awards may be made in cash, Stock, a combination of cash and Stock, or any other
form of property as the Committee shall determine. In addition, payment of Awards may include such terms, conditions, restrictions
and/or limitations, if any, as the Committee deems appropriate, including, in the case of Awards paid in the form of Stock, restrictions
on transfer and forfeiture provisions. Further, payment of Awards may be made in the form of a lump sum, or in installments, as
determined by the Committee.

14.3.LIMITS ON TRANSFER.
No right or interest of a Participant in any unexercised or restricted Award may be pledged, encumbered, or hypothecated to or
in favor of any party other than the Corporation or an Affiliate, or shall be subject to any lien, obligation, or liability of
such Participant to any other party other than the Corporation or an Affiliate. No unexercised or restricted Award shall be assignable
or transferable by a Participant other than by will or the laws of descent and distribution; provided, however, that the Committee
may (but need not) permit other transfers (other than transfers for value) where the Committee concludes that such transferability
(i) does not result in accelerated taxation, (ii) does not cause any Option intended to be an Incentive Stock Option to fail to
be described in Code Section 422(b), and (iii) is otherwise appropriate and desirable, taking into account any factors deemed relevant,
including without limitation, state or federal tax or securities laws applicable to transferable Awards.

14.4.BENEFICIARIES. Notwithstanding
Section 14.3, a Participant may, in the manner determined by the Committee, designate a beneficiary to exercise the rights of the
Participant and to receive any distribution with respect to any Award upon the Participant’s death, provided the designation
is filed with the Committee. A beneficiary, legal guardian, legal representative, or other person claiming any rights under the
Plan is subject to all terms and conditions of the Plan and any Award Certificate applicable to the Participant, except to the
extent the Plan and Award Certificate otherwise provide, and to any additional restrictions deemed necessary or appropriate by
the Committee. If no beneficiary has been designated or survives the Participant, any payment due to the Participant shall be made
to the Participant’s estate. Subject to the foregoing, a beneficiary designation may be changed or revoked by a Participant,
in the manner provided by the Corporation, at any time provided the change or
revocation is filed with the Committee.

14.5.STOCK TRADING RESTRICTIONS.
All Stock issuable under the Plan is subject to any stop-transfer orders and other restrictions as the Committee deems necessary
or advisable to comply with federal or state securities laws, rules and regulations and the rules of any national securities exchange
or automated quotation system on which the Stock is listed, quoted, or traded. The Committee may place legends on any Stock certificate
and/or issue instructions to the transfer agent to reference restrictions applicable to the Stock.

14.6.ACCELERATION
UPON DEATH OR DISABILITY. Except as otherwise provided in the Award Certificate or any special Plan document governing
an Award, upon the termination of a person’s Continuous Service by reason of death or Disability:

(i)all of that
Participant’s outstanding Options and SARs shall become fully exercisable;

(ii)                
all time-based vesting restrictions on that Participant’s outstanding Awards shall lapse as of the date of termination;
and

(iii)the
payout opportunities attainable under all of that Participant’s outstanding performance-based Awards shall be deemed to have
been fully earned as of the date of termination as follows:

(A)if
the date of termination occurs during the first half of the applicable performance period, all relevant performance goals
will be deemed to have been achieved at the “target” level, and

(B)if
the date of termination occurs during the second half of the applicable performance period, the actual level of achievement
of all relevant performance goals against target will be measured as of the end of the calendar
quarter immediately preceding the date of termination, and

(C)
in either such case, there shall be a prorata payout to the Participant or his or her estate within sixty (60) days following
the date of termination (unless a later date is required by Section 17.3 hereof), based upon
the length of time within the performance period that has elapsed prior to the date of termination.

To the extent that
this provision causes Incentive Stock Options to exceed the dollar limitation set forth in Code Section 422(d), the excess Options
shall be deemed to be Nonstatutory Stock Options.

14.7.EFFECT OF A CHANGE IN CONTROL.
The provisions of this Section 14.7 shall apply in the case of a Change in Control, unless otherwise provided in the Award Certificate
or any special Plan document or separate agreement with a Participant governing an Award.

(a)Awards not
Assumed or Substituted by Surviving Entity. Upon the occurrence of a Change in Control, and except with respect to any Awards
assumed by the Surviving Entity or otherwise equitably converted or substituted in connection with the Change in Control in a manner
approved by the Committee or the Board: (i) outstanding Options, SARs, and other Awards in the nature of rights that may be exercised
shall become fully exercisable, (ii) time-based vesting restrictions on outstanding Awards shall lapse, and (iii) the target payout
opportunities attainable under outstanding performance-based Awards shall be deemed to have been earned as of the effective date
of the Change in Control based upon (A) an assumed achievement of all relevant performance goals
at the “target” level if the Change in Control occurs during the first half of the applicable performance period, or
(B) the actual level of achievement of all relevant performance goals against target
measured as of the date of the Change in Control, if the Change in Control occurs during the second half of the applicable performance
period, and, in either such case, subject to Section 17.3, there shall be a prorata payout to Participants within sixty
(60) days following the Change in Control (unless a later date is required by Section 17.3 hereof), based upon
the length of time within the performance period that has elapsed prior to the Change in Control. Any
Awards shall thereafter continue or lapse in accordance with the other provisions of the Plan and the Award Certificate.
To the extent that this provision causes Incentive Stock Options to exceed the dollar limitation set
forth in Code Section 422(d), the excess Options shall be deemed to be Nonstatutory Stock Options.

(b)Awards Assumed
or Substituted by Surviving Entity. With respect to Awards assumed by the Surviving Entity or otherwise equitably converted
or substituted in connection with a Change in Control: if within twelve months after the effective date of the Change in Control,
a Participant’s employment is terminated without Cause or the Participant resigns for Good Reason, then (i) all of that Participant’s
outstanding Options, SARs and other Awards in the nature of rights that may be exercised shall become fully exercisable, (ii) all
time-based vesting restrictions on the his or her outstanding Awards shall lapse, and (iii) the payout level under all of that
Participant’s performance-based Awards that were outstanding immediately prior to effective time of the Change in Control
shall be determined and deemed to have been earned as of the date of termination based upon (A) an assumed achievement of all relevant
performance goals at the “target” level if the date of termination occurs during
the first half of the applicable performance period, or (B) the actual level of achievement of all relevant performance
goals against target (measured as of the end of the calendar quarter

    	-8-

    	 

    
 

immediately preceding
the date of termination), if the date of termination occurs during the second half of the
applicable performance period, and, in either such case, there shall be a prorata payout to such Participant within sixty
(60) days following the date of termination of employment (unless a later date is required by Section 17.3 hereof), based upon
the length of time within the performance period that has elapsed prior to the date of termination of employment. With regard
to each Award, a Participant shall not be considered to have resigned for Good Reason unless either (i) the Award Certificate includes
such provision or (ii) the Participant is party to an employment, severance or similar agreement with
the Corporation or an Affiliate that includes provisions in which the Participant is permitted to resign for Good Reason. Any Awards
shall thereafter continue or lapse in accordance with the other provisions of the Plan and the Award Certificate. To
the extent that this provision causes Incentive Stock Options to exceed the dollar limitation set forth in Code Section 422(d),
the excess Options shall be deemed to be Nonstatutory Stock Options.

14.8.ACCELERATION FOR
OTHER REASONS. Regardless of whether an event has occurred as described in Section 14.6 or 14.7 above, the Committee may in
its sole discretion at any time determine that, upon the termination of service of a Participant or the occurrence of a Change
in Control, all or a portion of such Participant’s Options, SARs and other Awards in the nature of rights that may be exercised
shall become fully or partially exercisable, that all or a part of the time-based vesting restrictions on all or a portion of the
Participant’s outstanding Awards shall lapse, and/or that any performance-based criteria with respect to any Awards held
by that Participant shall be deemed to be wholly or partially satisfied, in each case, as of such date as the Committee may, in
its sole discretion, declare. The Committee may discriminate among Participants and among Awards granted to a Participant in exercising
its discretion pursuant to this Section 14.8. Notwithstanding anything in the Plan, including this Section 14.8, the Committee
may not accelerate the payment of any Award if such acceleration would violate Section 409A(a)(3) of the Code.

14.9.FORFEITURE
EVENTS. The Committee may specify in an Award Certificate that
the Participant’s rights, payments and benefits with respect to an Award shall be subject to reduction, cancellation,
forfeiture or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance
conditions of an Award. Such events may include, but shall not be limited to, (i) termination of employment for cause, (ii) violation
of material Corporation or Affiliate policies, (iii) breach of noncompetition, confidentiality or other restrictive covenants
that may apply to the Participant, (iv) other conduct by the Participant that is detrimental to the business or reputation
of the Corporation or any Affiliate, or (v) a later determination that the vesting of, or amount realized from, a Performance Award
was based on materially inaccurate financial statements or any other materially inaccurate performance metric criteria, whether
or not the Participant caused or contributed to such material inaccuracy.

14.10.SUBSTITUTE
AWARDS. The Committee may grant Awards under the Plan in substitution for stock and stock-based awards held by employees of
another entity who become employees of the Corporation or an Affiliate as a result of a merger or consolidation of the former employing
entity with the Corporation or an Affiliate or the acquisition by the Corporation or an Affiliate of property or stock of the former
employing corporation. The Committee may direct that the substitute awards be granted on such terms and conditions as the Committee
considers appropriate in the circumstances.

ARTICLE 15

CHANGES IN CAPITAL STRUCTURE

15.1.MANDATORY ADJUSTMENTS.
In the event of a nonreciprocal transaction between the Corporation and its shareholders that causes the per-share value of the
Stock to change (including, without limitation, any stock dividend, stock split, spin-off, rights offering, or large nonrecurring
cash dividend), the authorization limits under Section 5.1 shall be adjusted proportionately, and the Committee shall make such
adjustments to the Plan and Awards as it deems necessary, in its sole discretion, to prevent dilution or enlargement of rights
immediately resulting from such transaction. Action by the Committee may include: (i) adjustment of the number and kind of shares
that may be delivered under the Plan; (ii) adjustment of the number and kind of shares subject to outstanding Awards; (iii) adjustment
of the exercise price of outstanding Awards or the measure to be used to determine the amount of the benefit payable on an Award;
and (iv) any other adjustments that the Committee determines to be equitable. Notwithstanding the foregoing, the Committee shall
not make any adjustments to outstanding Options or SARs that would constitute a modification or substitution
of the stock right under Treas. Reg. Section 1.409A-1(b)(5)(v) that
would be treated as the grant of a new stock right or change in the form of payment for purposes of Code Section 409A. Without
limiting the foregoing, in the event of a subdivision of the outstanding Stock (stock-split), a declaration of a dividend payable
in Shares, or a combination or consolidation of the outstanding Stock into a lesser number of Shares, the authorization limits
under Section 5.1 shall automatically be adjusted proportionately, and the Shares then subject to each Award shall automatically,
without the necessity for any additional action by the Committee, be adjusted proportionately without any change in the aggregate
purchase price therefor.

15.2DISCRETIONARY
ADJUSTMENTS. Upon the occurrence or in anticipation of any corporate event or transaction involving the Corporation (including,
without limitation, any merger, reorganization, recapitalization, combination or exchange of shares, or any transaction described
in Section 15.1), the Committee may, in its sole discretion, provide (i) that Awards will be settled in cash rather than Stock,
(ii) that Awards will become immediately vested and non-forfeitable and exercisable (in whole or in part) and will expire after
a designated period of time to the extent not then exercised, (iii) that Awards will be assumed by another party to a transaction
or otherwise be equitably converted or substituted in connection with such transaction, (iv) that outstanding Awards may be settled
by payment in cash or cash equivalents equal to the excess of the Fair Market Value of the underlying Stock, as of a specified
date associated with the transaction, over the exercise or base price of the Award, (v) that performance targets and performance
periods for Performance Awards will be modified, or (vi) any combination of the foregoing. The Committee’s determination
need not be uniform and may be different for different Participants whether or not such Participants are similarly situated.

15.3GENERAL.
Any discretionary adjustments made pursuant to this Article 15 shall be subject to the provisions of Section 15.2. To the extent
that any adjustments made pursuant to this Article 15 cause Incentive Stock Options to cease to qualify as Incentive Stock Options,
such Options shall be deemed to be Nonstatutory Stock Options.

ARTICLE 16

AMENDMENT, MODIFICATION AND TERMINATION

16.1.AMENDMENT, MODIFICATION
AND TERMINATION. The Board or the Committee may, at any time and from time to time, amend, modify or terminate the Plan without
shareholder approval; provided, however, that if an amendment to the Plan would, in the reasonable
opinion of the Board or the Committee, either (i) materially increase the number of Shares available under the Plan, (ii) expand
the types of awards under the Plan, (iii) materially expand the class of participants eligible to participate in the Plan, (iv)
materially extend the term of the Plan, or (v) otherwise constitute a material change requiring shareholder approval under applicable
laws, policies or regulations, then such amendment shall be subject to shareholder
approval; and provided, further, that the Board or Committee may condition any other amendment or modification on the approval
of shareholders of the Corporation for any reason, including by reason of such approval being necessary or deemed advisable to
satisfy any tax, securities or other applicable laws, policies or regulations.

16.2.AWARDS PREVIOUSLY GRANTED.
At any time and from time to time, the Committee may amend, modify or terminate any outstanding Award without approval of the Participant;
provided, however:

(a)Subject
to the terms of the applicable Award Certificate, such amendment, modification or termination shall not, without the

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Participant’s
consent, reduce or diminish the value of such Award determined as if the Award had been exercised, vested, cashed in or otherwise
settled on the date of such amendment or termination (with the per-share value of an Option or SAR for this purpose being calculated
as the excess, if any, of the Fair Market Value as of the date of such amendment or termination over the exercise or base price
of such Award);

(b)The original
term of an Option or SAR may not be extended without the prior approval of the shareholders of the Corporation;

(c)No termination,
amendment, or modification of the Plan shall adversely affect any Award previously granted under the Plan, without the written
consent of the Participant affected thereby. An outstanding Award shall not be deemed to be “adversely affected” by
a Plan amendment if such amendment would not reduce or diminish the value of such Award determined as if the Award had been exercised,
vested, cashed in or otherwise settled on the date of such amendment (with the per-share value of an Option or SAR for this purpose
being calculated as the excess, if any, of the Fair Market Value as of the date of such amendment over the exercise or base price
of such Award).

16.3.COMPLIANCE
AMENDMENTS. Notwithstanding anything in the Plan or in any Award Certificate to the contrary, the Board may amend the Plan
or an Award Certificate, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming
the Plan or Award Certificate to any present or future law relating to plans of this or similar nature (including, but not limited
to, Section 409A of the Code, the 1933 Act, the 1934 Act, the Federal Deposit Insurance Act, the Bank Holding Company Act or the
Dodd-Frank Wall Street Reform and Consumer Protection Act to the extent required by law or regulations applicable to the Corporation
or any Affiliate), and to the administrative regulations and rulings promulgated thereunder, and to prevent “excessive parachute
payments” under Section 280G of the Code. By accepting an Award under this Plan, a Participant agrees to any amendment made
pursuant to this Section 16.3 to any Award granted under the Plan without further consideration or action.

ARTICLE 17

GENERAL PROVISIONS

17.1.RIGHTS OF PARTICIPANTS.

(a)No Participant
or any Eligible Participant shall have any claim to be granted any Award under the Plan. Neither the Corporation, its Affiliates
nor the Committee is obligated to treat Participants or Eligible Participants uniformly, and determinations made under the Plan
may be made by the Committee selectively among Eligible Participants who receive, or are eligible to receive, Awards (whether or
not such Eligible Participants are similarly situated).

(b)Nothing in the
Plan, any Award Certificate or any other document or statement made with respect to the Plan shall interfere with or limit in any
way the right of the Corporation or any Affiliate to terminate any Participant’s employment or status as an officer, or any
Participant’s service as a director, at any time, nor confer upon any Participant any right to continue as an employee, officer,
or director of the Corporation or any Affiliate, whether for the duration of a Participant’s Award or otherwise.

(c)Neither an Award
nor any benefits arising under this Plan shall constitute an employment contract with the Corporation or any Affiliate and, accordingly,
subject to Article 16, this Plan and the benefits hereunder may be terminated at any time in the sole and exclusive discretion
of the Committee without giving rise to any liability on the part of the Corporation or any of its Affiliates.

(d)No Award gives
a Participant any of the rights of a shareholder of the Corporation unless and until Shares are in fact issued to such person in
connection with such Award.

17.2.WITHHOLDING. The Corporation
or any Affiliate shall have the authority and the right to deduct or withhold, or require a Participant to remit to the Corporation
or such Affiliate, an amount sufficient to satisfy federal, state, and local taxes (including the Participant’s FICA obligation)
required by law to be withheld with respect to any exercise, lapse of restriction or other taxable event arising as a result of
the Plan. The obligations of the Corporation under the Plan will be conditioned on such payment or arrangements and the Corporation
or such Affiliate will, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise
due to the Participant. Unless otherwise determined by the Committee at the time the Award is granted or thereafter, any such withholding
requirement may be satisfied, in whole or in part, by withholding from the Award that number of Shares having a Fair Market Value
on the date of withholding equal to the minimum amount (and not any greater amount) required to be withheld for tax purposes, all
in accordance with such procedures as the Committee establishes. All such elections shall be subject to any restrictions or limitations
that the Committee, in its sole discretion, deems appropriate.

17.3. SPECIAL
PROVISIONS RELATED TO SECTION 409A OF THE CODE.

(a)General.
It is intended that the payments and benefits provided under the Plan and any Award shall either be exempt from the application
of, or comply with, the requirements of Section 409A of the Code. The Plan and all Award Certificates shall be construed in a manner
that effects such intent. Nevertheless, the tax treatment of the benefits provided under the Plan or any Award is not warranted
or guaranteed. Neither the Corporation, its Affiliates nor their respective directors, officers, employees or advisers (other than
in his or her capacity as a Participant) shall be held liable for any taxes, interest, penalties or other monetary amounts owed
by any Participant or other taxpayer as a result of the Plan or any Award.

(b)Definitional
Restrictions. Notwithstanding anything in the Plan or in any Award Certificate to the contrary, to the extent that any amount
or benefit that would constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code would
otherwise be payable or distributable, or a different form of payment (e.g., lump sum or installment)
would be effected, under the Plan or any Award Certificate by reason of the occurrence of a Change in Control, or the Participant’s
Disability or separation from service, such amount or benefit will not be payable or distributable to the Participant,
and/or such different form of payment will not be effected, by reason of such circumstance unless the circumstances giving
rise to such Change in Control, Disability or separation from service meet any description or definition of “change in control
event,” “disability” or “separation from service,” as the case may be, in Section 409A of the
Code and applicable regulations (without giving effect to any elective provisions that may be available under such definition).
This provision does not prohibit the vesting of any Award upon a Change in Control, Disability or separation from service,
however defined. If this provision prevents the payment or distribution of any amount or benefit, or the
application of a different form of payment of any amount or benefit, such payment or distribution shall be made at the time
and in the form that would have applied absent the Change in Control, Disability or separation from
service, as applicable.

(c)Allocation
among Possible Exemptions. If any one or more Awards granted under the Plan to a Participant could qualify for any separation
pay exemption described in Treas. Reg. Section 1.409A-1(b)(9), but such Awards in the aggregate exceed the dollar limit permitted
for the separation pay exemptions, the Corporation (acting through the Committee) shall determine which Awards or portions thereof
will be subject to such exemptions.

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(d)Installment
Payments. If, pursuant to an Award, a Participant is entitled to a series of installment
payments, such Participant’s right to the series of installment payments shall be treated as a right to a series of separate
payments and not to a single payment. For purposes of the preceding sentence, the term “series of installment payments”
has the meaning provided in Treas. Reg. Section 1.409A-2(b)(2)(iii) (or any successor thereto).

17.4.UNFUNDED
STATUS OF AWARDS. The Plan is intended to be an “unfunded” plan for incentive and deferred compensation. With respect
to any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award Certificate shall
give the Participant any rights that are greater than those of a general creditor of the Corporation or any Affiliate. In its sole
discretion, the Committee may authorize the creation of grantor trusts or other arrangements to meet the obligations created under
the Plan to deliver Shares or payments in lieu of Shares or with respect to Awards. This Plan is not intended to be subject to
Employee Retirement Income Security Act of 1974, as amended.

17.5.RELATIONSHIP TO OTHER BENEFITS.
No payment under the Plan shall be taken into account in determining any benefits under any pension, retirement, savings, profit
sharing, group insurance, welfare or benefit plan of the Corporation or any Affiliate unless provided otherwise in such other plan.
Nothing contained in the Plan will prevent the Corporation from adopting other or additional compensation arrangements, subject
to shareholder approval if such approval is required, and such arrangements may be either generally applicable or applicable only
in specific cases.

17.6.EXPENSES. The expenses
of administering the Plan shall be borne by the Corporation and its Affiliates.

17.7.TITLES AND HEADINGS.
The titles and headings of the Sections in the Plan are for convenience of reference only, and in the event of any conflict, the
text of the Plan, rather than such titles or headings, shall control.

17.8.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.

17.9.FRACTIONAL SHARES.
No fractional Shares shall be issued and the Committee shall determine, in its discretion, whether cash shall be given in lieu
of fractional Shares or whether such fractional Shares shall be eliminated by rounding up or down.

17.10.GOVERNMENT AND OTHER REGULATIONS.

(a)Notwithstanding
any other provision of the Plan, no Participant who acquires Shares pursuant to the Plan may, during any period of time that such
Participant is an affiliate of the Corporation (within the meaning of the rules and regulations of the Securities and Exchange
Commission under the 1933 Act), sell such Shares, unless such offer and sale is made (i) pursuant to an effective registration
statement under the 1933 Act, which is current and includes the Shares to be sold, or (ii) pursuant to an appropriate exemption
from the registration requirement of the 1933 Act, such as that set forth in Rule 144 promulgated under the 1933 Act.

(b)Notwithstanding
any other provision of the Plan, if at any time the Committee shall determine that the registration, listing or qualification of
the Shares covered by an Award upon any exchange or under any federal, state or local law or practice, or the consent or approval
of any governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the granting of such Award
or the purchase or receipt of Shares thereunder, no Shares may be purchased, delivered or received pursuant to such Award unless
and until such registration, listing, qualification, consent or approval shall have been effected or obtained free of any condition
not acceptable to the Committee. Any Participant receiving or purchasing Shares pursuant to an Award shall make such representations
and agreements and furnish such information as the Committee may request to assure compliance with the foregoing or any other applicable
legal requirements. The Corporation shall not be required to issue or deliver any certificate or certificates for Shares under
the Plan prior to the Committee’s determination that all related requirements have been fulfilled. The Corporation shall
in no event be obligated to register any securities pursuant to the 1933 Act or applicable state law or to take any other action
in order to cause the issuance and delivery of such certificates to comply with any such law, regulation or requirement.

17.11.GOVERNING LAW. To
the extent not governed by federal law, the Plan and all Award Certificates shall be construed in accordance with and governed
by the laws of the State of Connecticut.

17.12.SEVERABILITY. In the
event that any provision of this Plan is found to be invalid or otherwise unenforceable under any applicable law, such invalidity
or unenforceability will not be construed as rendering any other provisions contained herein as invalid or unenforceable, and all
such other provisions will be given full force and effect to the same extent as though the invalid or unenforceable provision was
not contained herein.

17.13.NO LIMITATIONS
ON RIGHTS OF CORPORATION. The grant of any Award shall not in any way affect the right or power of the Corporation to make
adjustments, reclassification or changes in its capital or business structure or to merge, consolidate, dissolve, liquidate, sell
or transfer all or any part of its business or assets. The Plan shall not restrict the authority of the Corporation, for proper
corporate purposes, to draft or assume awards, other than under the Plan, to or with respect to any person. If the Committee so
directs, the Corporation may issue or transfer Shares to an Affiliate, for such lawful consideration as the Committee may specify,
upon the condition or understanding that the Affiliate will transfer such Shares to a Participant in accordance with the terms
of an Award granted to such Participant and specified by the Committee pursuant to the provisions of the Plan.

17.14.INDEMNIFICATION.
Each person who is or shall have been a member of the Committee or of the Board
shall be indemnified and held harmless by the Corporation against and from any loss, cost, liability, or expense that may be imposed
upon or reasonably incurred by him or her in connection with or resulting from any claim,
action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action
taken or failure to act under the Plan and against and from any and all amounts paid by him or her in settlement thereof, with
the Corporation’s approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding
against him or her, provided he or she shall give the Corporation an opportunity, at its own
expense, to handle and defend the same before he or she undertakes to handle and defend
it on his or her own behalf, unless such loss, cost, liability, or expense is a result of his or her own willful misconduct or
except as expressly provided by statute. The foregoing right of indemnification shall not
be exclusive of any other rights of indemnification to which such persons may be entitled under the Corporation’s
certificate of incorporation or bylaws, as a matter of law, or otherwise, or any power that the Corporation may have to
indemnify them or hold them harmless.

 

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    	-11-

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