Document:

Exhibit 10.1

 

the marcus
corporation

retirement income AND SUPPLEMENTAL RETIREMENT plan

 

(As Amended and Restated Effective October
1, 2013)

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	Page
	 	 
	ARTICLE I. PURPOSE AND DEFINITIONS	1
	 	Section 1.01. Purpose	1
	 	Section 1.02. Definitions	1
	 	Section 1.03. Construction	6
	 	 
	ARTICLE II. PURPOSE AND EFFECTIVE DATE	8
	 	Section 2.01. Purpose of Plan	8
	 	Section 2.02. Effective Date	8
	 	 
	ARTICLE III. PARTICIPATION AND YEARS OF SERVICE	9
	 	Section 3.01. Participation	9
	 	Section 3.02. Years of Service.	9
	 	 
	ARTICLE IV. ACCRUED BENEFIT FOR RIP PARTICIPANTS	11
	 	Section 4.01. RIP Participant’s Eligibility for Accrued Benefit	11
	 	Section 4.02. Total and Permanent Disability	11
	 	Section 4.03. Vesting of Accrued Benefit	11
	 	Section 4.04. RIP Participant’s Surviving Spouse Pre-Retirement Death Benefit	12
	 	Section 4.05. Calculation of Accrued Benefit	12
	 	Section 4.06. Payment of Accrued Benefit to RIP Participants	13
	 	Section 4.07. Optional Methods of Payment of Accrued Benefit	13
	 	Section 4.08. Pre-Retirement Death Benefit for RIP Participants	15
	 	 
	ARTICLE V. ACCOUNTS FOR SRP PARTICIPANTS	16
	 	Section 5.01. Establishment of Accounts	16
	 	Section 5.02. Initial Account Balances	16
	 	Section 5.03. Annual Allocations.	16
	 	Section 5.04. Earnings on Accounts	17
	 	Section 5.05. Vesting of Account Balances.	17
	 	Section 5.06. Distributions	18
	 	 
	ARTICLE VI. FUNDING OF BENEFITS	21
	 	Section 6.01. Source of Payments.	21
	 	 
	ARTICLE VII. OTHER PROVISIONS	22
	 	Section 7.01. Administration of the Plan	22
	 	Section 7.02. Non-Alienation of Payments	22
	 	Section 7.03. Incompetency	22
	 	Section 7.04. Limitation of Rights Against the Employer	22
	 	Section 7.05. Liability	23
	 	Section 7.06. Amendment or Termination of the Plan	23
	 	Section 7.07. Tax Withholding	24
	 	Section 7.08. Claims Procedures	24

 

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ARTICLE
I. PURPOSE AND definitions

 

Section
1.01. Purpose. The Marks Corporation has established this Retirement Income and Supplemental Retirement Plan to provide
retirement benefits to a select group of highly compensated employees in addition to those benefits provided under the
Company’s tax-qualified retirement plan. The Plan consists of two components: (1) the “Retirement Income
Plan” or “RIP,” which provides an annuity benefit based on a formula that takes into account a
participant’s years of service and final average compensation, and (2) the “Supplemental Retirement Plan”
or “SRP,” which provides a benefit based on amounts accumulated in a participant’s account.

 

Section
1.02. Definitions. The following words and phrases when used herein shall have the following meanings, except as
otherwise required by the context:

 

(a)“Account”
means the bookkeeping entry established on the records of the Company to reflect the amount owed to a SRP Participant (or
Beneficiary thereof) under the Plan.

 

(b)“Accrued
Benefit” means the monthly benefit amount calculated pursuant to Section 4.05 hereof and payable in the form of a life-only
annuity commencing the month next following the later of the RIP Participant’s sixty-fifth (65th) birthday or Termination
Date.

 

(c)“Actuarial
Equivalent” means a benefit of equivalent value calculated using an interest rate of eight percent (8%) per annum compounded
annually and a mortality rate based upon the 1984 UP Mortality Table for purposes of converting from one periodic form of payment
to another, including, without limitation, different commencement dates for payment, and for purposes of converting from a periodic
form of payment to a lump sum form of payment under Section 4.07(a)(ii) hereof.

 

(d)“Administrator”
means the Marcus Retirement Planning Committee, or such other committee as may be appointed by the Board to administer this Plan.

 

(e)“Affiliate”
means each entity that is required to be included in the controlled group of corporations with the Company within the meaning of
Code Section 414(b), or that is under common control with the Company within the meaning of Code Section 414(c); provided
that for purposes of determining if a Participant has incurred a Separation from Service, the phrase “at least 50 percent”
shall be used in place of the phrase “at least 80 percent” each place it appears therein or in the regulations thereunder.

 

(f)“Average
Monthly Earnings” means a RIP Participant’s total compensation from the Employer for the five (5) calendar years during
which the Participant’s compensation was highest within the last ten (10) consecutive calendar years preceding his Termination
Date, divided by sixty (60). For purposes of making this calculation, compensation shall include amounts paid by the Employer to
a RIP Participant in the form of salary, cash bonuses and commissions, before payroll deductions and any reductions in compensation
for amounts deferred through The Marcus Corporation Pension Plus Plan, The Marcus Corporation Deferred Compensation Plan and any
Code Section 125 arrangement, but shall exclude imputed income, any other additional remuneration and/or expense reimbursement
which the Administrator, in its sole discretion, determines not to be compensation hereunder, and for periods on and after July
1, 2013, long-term incentive cash payments.

 

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(g)“Beneficiary”
means the person(s) or entity(ies) designated by a Participant to receive benefits under the Plan, if any, upon the Participant’s
death. Beneficiary designations shall be in writing, filed with the Administrator, and in such form as the Administrator may prescribe
for this purpose. The last designation filed with the Administrator prior to the Participant’s death shall be given effect.

 

(h)“Board”
means the Board of Directors of the Company.

 

(i)“Change
of Control” has the meaning ascribed under Code Section 409A.

 

(j)“Code”
means the Internal Revenue Code of 1986, as interpreted and applied by regulations and rulings issued pursuant thereto, all as
amended and in effect from time to time.

 

(k)“Company”
means The Marcus Corporation.

 

(l)“Compensation”
means a SRP Participant’s total compensation from the Employer for the Plan Year, subject to adjustments as set forth herein.
For this purpose, Compensation shall include amounts paid by the Employer to a SRP Participant in the form of salary, cash bonuses
and commissions, before payroll deductions and any reductions in compensation for amounts deferred through The Marcus Corporation
Pension Plus Plan, The Marcus Corporation Deferred Compensation Plan and any Code Section 125 arrangement, but shall exclude imputed
income, any other additional remuneration and/or expense reimbursement which the Administrator, in its sole discretion, determines
not to be compensation hereunder, and for periods on and after July 1, 2013, long-term incentive cash payments.

 

(m)“Date of
Hire” means the date on which an Eligible Employee becomes employed with any Employer.

 

(n)“Eligible
Employee” means any highly compensated employee who is employed by an Employer in an officer, executive or other managerial
capacity, as determined by the Administrator, in its sole discretion.

 

(o)“Employer”
means the Company and each of its Affiliates which are participating employers under The Marcus Corporation Pension Plus Plan.

 

(p)“Highly
Compensated Employee” means an Eligible Employee who has met the requirements to be considered a highly compensated employee
within the meaning of Code Section 414(q) for a Plan Year.

 

(q)“Hour of
Service” has the meaning ascribed in The Marcus Corporation Pension Plus Plan.

 

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(r)“Other Benefits”
means any of the following which may be applied to reduce the Accrued Benefit amount payable hereunder to a RIP Participant as
calculated pursuant to Section 4.05 hereof:

 

		(i)	that portion, if any, of the monthly benefits payable to him under any current or prior qualified
defined benefit pension plan of any Employer which is attributable to employer contributions and is based upon a period of service
that is recognized both under such pension plan and this Plan for benefit accrual purposes; provided, however, that, if the time
and/or form of benefit payments under such pension plan (including without limitation, payments pursuant to an annuity purchased
as a consequence of such pension plan’s termination and payments of the aforesaid portion included in any distribution from
any qualified retirement plan of any Employer to which such portion was transferred) are different from the time and/or form of
benefits to be paid under this Plan, the reduction amount to be treated as “Other Benefits” shall be the Actuarial
Equivalent of the aforesaid portion which appropriately reflects such difference;

 

		(ii)	an Actuarial Equivalent amount that appropriately reflects the value of any amount not covered
by clause (i) above which was distributed or is distributable to such Participant under any qualified profit sharing, money purchase
pension, stock bonus or other individual account plan of any Employer (excluding The Marcus Corporation Deferred Compensation Plan)
and is attributable to employer contributions (other than Code Section 401(k) deferrals elected by such Participant) and based
upon a period of service recognized for any purpose under both that plan and this Plan; and

 

		(iii)	in the case of disability retirement under this Plan, the amount of the monthly benefits payable
to the Participant under any long-term disability welfare benefit program of any Employer which is attributable to employer contributions;
provided, however, that, if the time and/or form of benefits payments under such program are different from the time and/or form
of benefits to be paid under this Plan, the reduction amount to be treated as “Other Benefits” shall be the Actuarial
Equivalent of the aforesaid amount payable under such program which appropriately reflects such difference; provided further, however,
that the reduction amount specified by this clause (iii) shall only apply during the period that the Participant is receiving benefit
payments under both such program and this Plan.

 

(s)“Participant”
means an Eligible Employee who has satisfied the requirements of Section 3.01.

 

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(t)“Period
of Severance” means the period of time between a Participant’s Termination Date and the date he is subsequently rehired
by any Employer.

 

(u)“Plan”
means The Marcus Corporation Retirement Income and Supplemental Retirement Plan set forth herein, as amended and in effect from
time to time. The Plan consists of two components: the “Retirement Income Plan” which covers the RIP Participants as
described in Article IV, and the “Supplemental Retirement Plan” which covers the SRP Participants as described in Article
V.

 

(v)“Plan Year”
means the twelve (12) month period ending on December 31 of each year during which the Plan is in effect.

 

(w)“Points”
means the combination of a SRP Participant’s age (as of his most recent birthday) and Years of Service as of the last day
of a Plan Year.

 

(x)“RIP Participant”
means a Participant in the Plan on December 31, 2008, who meets at least one of the following requirements on January 1, 2009:

 

		(i)	The Participant is age 50 or older; or

 

		(ii)	The Participant has 20 or more Years of Service; or

 

		(iii)	The Participant is a member of the Corporate Executive Committee.

 

In addition, the individual hired on August
6, 2013 as the President and Chief Executive Officer of Marcus Theatres and Executive Vice President of the Company is considered
a RIP Participant as of such date of hire.

 

(y)“Retirement”
for SRP Participant means a termination of employment from the Employer on or after attaining age sixty-five (65) and completing
five (5) Years of Service.

 

(z)“SRP Participant”
means a Participant who is not a RIP Participant.

 

(aa)“Separation
from Service” means a Participant’s termination of employment from the Company and its Affiliates within the meaning
of Code Section 409A, or if the Participant continues to provide services to the Company and its Affiliates in a capacity other
than an employee after his or her termination, such later date as is considered a separation from service within the meaning of
Code Section 409A. Specifically, a Participant will be presumed to have incurred a Separation from Service when the level of bona
fide services performed by the Participant for the Company and its Affiliates permanently decreases to a level equal to twenty
percent (20%) or less of the average level of services performed by the Participant for the Company or its Affiliates during the
immediately preceding thirty-six (36) month period (or such lesser period of actual service). Notwithstanding the foregoing, a
Participant will not be considered to have terminated employment if the Participant is absent from active employment due to military
leave, sick leave or other bona fide leave of absence if the period of such leave does not exceed the greater of (i) six (6) months,
or if the leave of absence is due to the Participant’s Disability, then the leave period may be extended for up to a
total of twenty-nine (29) months; or (ii) the period during which the Participant’s right to reemployment by the Company
or an Affiliate is provided either by statute or by contract.

 

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(bb)“Social
Security Benefit” means (i) in all cases except disability retirements covered by clause (ii) below, the estimated monthly
primary old age insurance benefit payable to the Participant as of the later of his sixty-fifth (65th) birthday or Termination
Date under the provisions of the federal Social Security Act in effect on his Termination Date, or (ii) in the case of a disability
retirement due to a disability qualifying for disability benefits under said Act, the estimated monthly primary disability insurance
benefit payable to the Participant under the provisions of said Act in effect on his Termination Date, regardless in either case
of whether he applies for such benefit or whether he is or becomes ineligible therefor for any reason. If a Participant’s
employment terminates prior to attainment of age sixty-five (65) other than for a disability retirement covered by clause (ii)
immediately above, his Social Security Benefit shall be estimated on the assumption his rate of compensation (as defined in Section
1.02(f) hereof) for the calendar year immediately prior to his Termination Date will continue until age sixty-five (65). Once determined,
a Participant’s Social Security Benefit shall not be subject to adjustment except for arithmetical errors in the computation
thereof and shall, for all purposes of the Plan, be assumed to remain as finally computed regardless of any subsequent fact, event
or occurrence which would cause a change or an adjustment in the annual amount thereof actually payable to the Participant.

 

(cc)“Specified
Employee” means a Participant who is a key employee (as defined in Code Section 416(i) but without regard to Code Section
416(i)(5)) of the Company or an Affiliate of the Company any of the stock of which is publicly traded on an established securities
market or otherwise, as determined at the time of the Participant’s Separation from Service. A Participant is a key employee
under Code Section 416(i) if the Participant meets the requirements of Code Section 416(i)(1)(A)(i), (ii) or (iii), applied in
accordance with the regulations under Code Section 416, but disregarding Code Section 416(i)(5), at any time during the 12-month
period ending on the identification date. For purposes of determining whether a Participant is a key employee, the definition of
compensation under Treasury Regulation §1.415-2(a) shall be used, applied as if the Company and its affiliates were not using
any safe harbor under Treasury Regulation §1.415-2(d), any of the special timing rules of Treasury Regulation §1.415-2(e)
or any of the special rules provided in Treasury Regulation §1.415-2(g). If a Participant is a key employee as of an identification
date, the Participant is treated as a Specified Employee for the 12-month period beginning on the first day of the fourth month
following the identification date. The identification date for this Plan shall be December 31 of each year, such that if the Participant
satisfies the foregoing requirements for key employee status as of December 31 of a year, the Participant shall be treated as a
key employee for the 12-month period beginning April 1 of the following calendar year.

 

(dd)“Spouse”
means the person who is legally married to a RIP Participant (i) on the date he first receives a retirement benefit hereunder or,
(ii) where his death occurs prior to the commencement of such benefit payments, throughout the entire one (1) year period ending
on the date of such death.

 

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(ee)“Termination
Date” means the date on which a Participant’s employment with the Employer ends because he quits, retires, is terminated
or dies, or if earlier, the date of his Separation from Service.

 

(ff)“Total
and Permanent Disability” means a physical and/or mental disability which:

 

		(i)	results from bodily or mental injury or disease, whether occupational or nonoccupational, while
employed by the Employer;

 

		(ii)	has existed for a continuous period of seven (7) consecutive months;

 

		(iii)	either (A) qualifies for disability benefits under the federal Social Security Act or (B) is determined
by the Administrator, on the basis of medical evidence satisfactory to the Administrator, to wholly and permanently prevent the
Participant from engaging in any occupation or employment for remuneration or profit;

 

		(iv)	was not contracted, suffered or incurred while the Participant was engaged in, or did not result
from his having engaged in, a criminal act involving moral turpitude; and

 

		(v)	did not result from addiction to alcohol or narcotics, self-inflicted injury or act of war.

 

In determining under condition (iii) whether
a Participant is wholly or permanently prevented from engaging in any occupation or employment for remuneration or profit, there
shall be excepted from consideration: (x) work performed pursuant to a medically recommended plan for rehabilitation; and (y) work
from which the annual earnings amount to no more than twenty-five percent (25%) of his compensation (as defined in Section 1.02(l)
hereof) for the calendar year immediately preceding the date that he incurred the disability which is found to be a Total and Permanent
Disability.

 

(gg)“Trust”
means the trust established pursuant to the trust agreement dated September 30, 1992, by and between the Company and Bank One Wisconsin
Trust Company, NA.

 

(hh)“Year of
Service” means twelve (12) full months of employment with the Employer which is credited pursuant to Section 3.04 hereof
for purposes of participation eligibility, vesting, benefit accrual, and determining Points under the Plan.

 

Section
1.03. Construction.

 

(a)Wherever any
words are used herein in the masculine, they shall be construed as though they were used in the feminine in all cases where they
would so apply, and wherever any words herein are used in the singular or the plural, they shall be construed as though they were
used in the plural or the singular, as the case may be, in all cases where they would so apply. The words “hereof”,
“herein”, “hereunder” and other similar compounds of the word “here” shall mean and refer
to the entire Plan and not to any particular Article or Section. Titles of Articles and Sections hereof are for general information
only, and the Plan is not to be construed by reference thereto.

 

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(b)The Plan shall
be construed and its validity determined according to applicable federal laws and, to the extent not preempted by such federal
laws, the laws of the State of Wisconsin without reference to conflict of law principles thereof. In case any provision of this
Plan shall be held illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts of the
Plan, but the Plan shall be construed and enforced as if said illegal and invalid provisions had never been inserted herein.

 

(c)The Plan shall
be construed and interpreted in a manner that will cause any payment hereunder that is considered deferred compensation and that
is not exempt from Code Section 409A to meet the requirements thereof such that no additional tax will be due under Code Section
409A on such payment.

 

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ARTICLE
II.

PURPOSE AND EFFECTIVE DATE

 

Section
2.01. Purpose of Plan. The purpose of the Plan is to provide for the special retirement income needs of certain employees
of the Employer which are not deemed to be satisfied by the applicable current and prior qualified retirement plans of the
Employer.

 

Section
2.02. Effective Date. The Plan is amended and restated effective July 1, 2013. The provisions of this amended and
restated Plan apply to any individual with an interest hereunder on or after January 1, 2009. Notwithstanding the foregoing,
any Participant who began receiving distributions under the Plan prior to January 1, 2009, shall continue to receive
such distributions according to the election then in effect.

 

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ARTICLE
III.

Participation And Years of Service

 

Section
3.01. Participation.

 

(a)Any employee who
was a Participant in the Plan on December 31, 2008, shall continue in participation hereunder on January 1, 2009.

 

(b)Any other Eligible
Employee shall become a Participant in the Plan on his participation date (if he is then employed by the Employer), which date
shall be the January 1 next following the Eligible Employee’s satisfaction of all the following requirements:

 

		(i)	attainment of age twenty-one (21);

 

		(ii)	completion of one (1) Year of Service; and

 

		(iii)	employment with the Employer resulting in compensation which is reportable on the Eligible Employee’s
W-2 form for the calendar year immediately preceding any potential participation date after his satisfying both requirements (i)
and (ii) above and which equals or exceeds the amount of compensation applicable to such year under Code Section 414(q)(1)(B);
provided, however, that such reportable compensation shall include any amounts excludable therefrom pursuant to compensation reductions
for deferrals specified in Section 1.02(l) hereof.

 

(c)Any employee who
terminated his employment with the Employer prior to June 1, 1990 but on or after January 1, 1990, and who satisfied the eligibility
requirements of subsection (b) of this Section 3.01 on his Termination Date shall become a Participant in the Income Plan on June
1, 1990.

 

(d)A Participant
who has once satisfied all the eligibility requirements of subsection (a) or (b) of this Section 3.01 will remain eligible to participate
in the Plan despite whether he continues to satisfy requirement (iii) of said subsection (b) subsequent to his participation date.

 

(e)An Eligible Employee
whose employment with the Employer terminates and who is subsequently reemployed with an Employer shall be re-credited upon reemployment
with his prior Years of Service for eligibility purposes.

 

(f)Notwithstanding
subsection (b), the individual hired on August 6, 2013 as the President and Chief Executive Officer of Marcus Theatres and Executive
Vice President of the Company shall immediately be considered a RIP Participant as of such date of hire.

 

Section
3.02. Years of Service.

 

(a)A Participant
shall earn Years of Service in an amount equal to the number determined as follows:

 

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		(i)	the total number of months during the period beginning on the Participant’s Date of Hire
and ending on his Termination Date,

 

plus

 

		(ii)	any Period of Severance of less than twelve (12) months,

 

divided by

 

		(iii)	twelve (12).

 

(b)Except as provided
below, a Participant who incurs a Period of Severance from employment with the Employer shall have his Years of Service before
the Period of Severance reinstated and aggregated with his Years of Service after the Period of Severance.

 

Notwithstanding the foregoing,
for purposes of determining a Participant’s vested interest in his Account:

 

		(i)	If a SRP Participant incurs a Period of Severance of sixty (60) consecutive months or more, all
Years of Service earned by the SRP Participant after such Period of Severance shall be disregarded in determining such Participant’s
vested interest in his Account attributable to employment before such Period of Severance. However, Years of Service earned both
before and after such Period of Severance shall be included in determining the SRP Participant’s vested interest in his Account
balance attributable to employment after such Period of Severance.

 

		(ii)	If a SRP Participant incurs a Period of Severance of fewer than sixty (60) consecutive months,
Years of Service earned both before and after such Period of Severance shall be included in determining such Participant’s
vested interest in his Account attributable to employment both before and after such Period of Severance.

 

(c)After calculating
a Participant’s Years of Service under subsection (a) and (b) of this Section 3.02, any remaining period of less than twelve
(12) months shall be disregarded.

 

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ARTICLE
IV.

Accrued BENEFIT for RIP participants

 

Section
4.01. RIP Participant’s Eligibility for Accrued Benefit. Subject to Section 4.03 hereof, a RIP Participant shall be
entitled to all or a portion of his Accrued Benefit upon the RIP Participant’s Termination Date that occurs:

 

(a)on or after his
attainment of age sixty-five (65) (normal retirement);

 

(b)due to his Total
and Permanent Disability occurring prior to age sixty-five (65) and on or after his completion of five (5) Years of Service (disability
retirement);

 

(c)prior to his attainment
of age sixty-five (65) and on or after both his attainment of age sixty (60) and completion of five (5) Years of Service (early
retirement); or

 

(d)prior to his attainment
of age sixty (60) and on or after his completion of five (5) Years of Service (deferred vested retirement).

 

Section
4.02. Total and Permanent Disability. Any Participant receiving disability retirement benefits hereunder may be required
to submit to medical examination at any time during retirement prior to age sixty-five (65), but not more often than
semi-annually, to determine whether he is eligible for continuance of the disability retirement benefits hereunder. If on the
basis of such examination it is found that he no longer has a Total and Permanent Disability, his disability retirement
benefits hereunder shall cease.

 

Section
4.03. Vesting of Accrued Benefit.

  

(a)A RIP Participant
who qualifies on his Termination Date for normal, disability or early retirement under subsection (a), (b) or (c), respectively,
of Section 4.01 hereof shall be one hundred percent (100%) vested in his Accrued Benefit.

 

(b)A RIP Participant
who qualifies on his Termination Date for deferred vested retirement under subsection (d) of Section 4.01 hereof shall be vested
in his Accrued Benefit in accordance with the following schedule:

 

	years of service	 	vested percentage 
of accrued benefit
	Less than 5	 	0%
	5	 	50%
	6	 	60%
	7	 	70%
	8	 	80%
	9	 	90%
	10	 	100%

 

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(c)Notwithstanding
subsections (a) and (b) of this Section 4.03 or any other provision herein to the contrary, one hundred percent (100%) of the entire
amount of a RIP Participant’s Accrued Benefit shall be forfeited if the Administrator determines, in its sole discretion,
as of or subsequent to the RIP Participant’s Termination Date that either or both of the following events shall have occurred:

 

		(i)	The RIP Participant engaged in misconduct with respect to his employment with the Employer which
shall include, but not be limited to by way of enumeration, theft, embezzlement, dishonesty, fraud, malfeasance, misappropriation,
divulging trade secrets or confidential business information, conspiracy against any Employer, refusal of a work assignment by
his Employer or assisting a competitor of any Employer; and/or

 

		(ii)	During the one (1) year period immediately following the RIP Participant’s Termination Date,
the RIP Participant takes employment with, becomes a consultant to or otherwise engages in a business competitive with any business
of any Employer within Wisconsin, any state contiguous thereto or any other state in which such Employer does business.

 

Section
4.04. RIP Participant’s Surviving Spouse Pre-Retirement Death Benefit. In the event a RIP Participant dies both
while employed by the Employer and on or after his completion of five (5) Years of Service, the RIP Participant’s
surviving Spouse, if any, shall be entitled to receive death benefits hereunder as provided in Section 4.08 hereof.

 

Section
4.05. Calculation of Accrued Benefit. The Accrued Benefit of any RIP Participant upon terminating employment with the
Employer shall be a monthly benefit equal to the amount calculated as follows:

 

(a)fifty percent
(50%) of his Average Monthly Earnings as of his Termination Date,

 

minus

 

(b)fifty percent
(50%) of his Social Security Benefit,

 

times

 

(c)a fraction, the
numerator of which shall be the RIP Participant’s total number of Years of Service as of his Termination Date or thirty (30),
whichever is less, and the denominator of which shall be thirty (30),

 

minus

 

(d)any applicable
Other Benefits.

 

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Section
4.06. Payment of Accrued Benefit to RIP Participants.

 

(a)The vested portion
(as determined under Section 4.03 hereof) of a RIP Participant’s Accrued Benefit (as calculated under Section 4.05 hereof)
shall be payable monthly (or otherwise in accordance with the regular payroll cycle of the Company if so determined by the Company),
commencing with the month next following the later of:

 

		(i)	the month during which the RIP Participant’s Separation from Service occurs, provided that
if a RIP Participant is a Specified Employee at the time of his Separation from Service, the payments that are payable during the
first six (6) months after his Separation from Service shall be accumulated and paid in a lump sum in the seventh (7th)
month following the month in which his Separation from Service occurs, or

 

		(ii)	the age specified by the RIP Participant in a written election filed no later than December 31,
2008, which date may not be earlier than age sixty (60) or later than age sixty-five (65).

 

Such election shall be
irrevocable as of January 1, 2009. In the absence of an election, the vested portion of a RIP Participant’s Accrued Benefit
shall be paid on the later to occur of the RIP Participant’s Separation from Service (in accordance with clause (i) above)
and the RIP Participant’s attainment of age sixty-five (65). Subject to Section 4.07 hereof, the vested portion of a RIP
Participant’s Accrued Benefit shall be payable for the RIP Participant’s life only and shall end with the last payment
made prior to his death.

 

(b)Any benefit payments
to a RIP Participant and his surviving Spouse or other Beneficiary in a form other than that provided in subsection (a) of this
Section 4.06 shall be adjusted so that their value is the Actuarial Equivalent to the value of the RIP Participant’s vested
Accrued Benefit, assuming it is paid monthly in the form provided in such subsection (a), commencing with the month next following
the later of his sixty-fifth (65th) birthday or Separation from Service. Any benefits actually commencing prior to age sixty-five
(65) shall be reduced to reflect the number of months by which the benefit payment commencement date precedes such post-age sixty-five
(65) month, with such reduction being four-tenths of one percent (0.4%) for each month of the early commencement period, subject
in the case of a disability retirement under Section 4.01(b) hereof, to a maximum aggregate reduction of twenty-four percent (24%).

 

Section
4.07. Optional Methods of Payment of Accrued Benefit.

  

(a)Prior to the commencement
of his benefit payments hereunder and pursuant to procedures established by the Administrator, the RIP Participant may, subject
to Section 4.06(b) hereof and subsection (b) of this Section 4.07, and in lieu of the life only annuity otherwise provided under
Section 4.06, elect only one of the following applicable optional methods of payment of the vested portion of his Accrued Benefit:

 

    	13

    	 

    

 

		(i)	If a RIP Participant has a Spouse on the date that his benefit payments commence, the RIP Participant
may receive payment in the form of a Fifty Percent (50%) Joint and Survivor Annuity which shall provide a reduced monthly payment
to the RIP Participant for his lifetime and, upon the RIP Participant’s death, a lifetime monthly benefit to such Spouse,
if surviving at the time of RIP Participant’s death, in an amount equal to fifty percent (50%) of the reduced monthly benefit
which had been payable to the RIP Participant. The last payment of the Fifty Percent (50%) Joint and Survivor Annuity shall be
made as of the first day of the month in which the death of both the RIP Participant and his Spouse has occurred.

 

		(ii)	A RIP Participant, whether or not he has a Spouse on the date that his benefit payments commence,
may receive payment in the form of an One Hundred Twenty (120) Month Sum Certain Annuity which provides a reduced monthly benefit
payable during the RIP Participant’s life with the provision that, in the event of his death within a period of ten (10)
years after his benefit payment commencement date, such benefits shall continue to such Beneficiary(ies) as the RIP Participant
shall have designated in writing at the time of his election, for the remainder of the ten (10) year period. If no designated Beneficiary
survives the RIP Participant, a single sum payment which is the Actuarial Equivalent of the remaining payments shall be made to
the estate of the last to survive of the RIP Participant or his Beneficiary. In the event all designated Beneficiaries die prior
to the month for which benefits hereunder commence, then the RIP Participant’s election of this optional annuity form shall
not be effective.

 

The Company may elect
to pay the monthly payments provided herein in accordance with the regular payroll cycle of the Company.

 

(b)A RIP Participant
must file his written election of an optional form of benefit payment and a designation of his Beneficiary(ies), if any, under
subsection (a) of this Section 4.07 with the Administrator within ninety (90) days prior to the date on which his benefits
commence. A RIP Participant’s election of an optional form of benefit payment and his beneficiary designation thereunder
may not be changed after benefit payments have commenced except that a RIP Participant’s designation of a Beneficiary(ies)
under the One Hundred Twenty (120) Month Sum Certain Annuity may be changed at any time prior to the RIP Participant’s death
or prior to the end of the ten (10) year period of benefit payment, whichever is earlier.

 

(c)In the event that
a RIP Participant to whom payment of benefits hereunder has commenced is reemployed as a regular, full time employee by an Employer,
his benefit payments hereunder shall not be suspended. Rather, on the first day of the month next following his subsequent Termination
Date, any additional benefits to which the RIP Participant may become entitled as a result of his reemployment shall be payable
in accordance with the form of distribution in effect. The determination of whether a rehired person is reemployed in a regular,
full time capacity shall be made by the Administrator.

 

    	14

    	 

    

 

(d)Upon a RIP Participant’s
Termination Date, the Administrator may elect, at its sole discretion, to distribute the Actuarial Equivalent present value of
the RIP Participant’s entire vested Accrued Benefit to such RIP Participant in a lump sum if such single sum value does not
exceed the limit in effect under Code Section 402(g)(1)(B) (which is the annual dollar limit on employee elective deferrals
to the 401(k) plan, without regard to the age 50 catch-up amount) for the year in which the RIP Participant’s Separation
from Service occurs. Notwithstanding any provisions to the contrary contained herein, if a RIP Participant who receives a lump
sum distribution pursuant to this subsection (d) is subsequently rehired by an Employer, the amount of any benefit he shall
become entitled to receive under the Plan as a result of his reemployment shall be offset by the amount which is the Actuarial
Equivalent of such lump sum distribution as if such amount were Other Benefits of the RIP Participant.

 

Section
4.08. Pre-Retirement Death Benefit for RIP Participants.

 

(a)Subject to subsection
(b) of this Section 4.08, in the event a RIP Participant’s surviving Spouse, if any, is eligible for pre-retirement death
benefits pursuant to Section 4.04 hereof, such Spouse shall be entitled to receive fifty percent (50%) of the monthly Joint and
Survivor Annuity, determined in accordance with Sections 4.03, 4.05 and 4.07(a)(i), that the RIP Participant would have been entitled
to receive had he terminated employment with the Employer on the day before his death.

 

(b)Payment of benefits
to a surviving Spouse shall commence the month next following what would have been the RIP Participant’s sixtieth (60th)
birthday or the RIP Participant’s date of death, whichever is later, and the amount of such payments shall be reduced by
four-tenths of one percent (0.4%) for each month payments are made prior to the month next following what would have been the RIP
Participant’s sixty-fifth (65th) birthday.

 

    	15

    	 

    

 

ARTICLE
V.

Accounts for SRP Participants

 

Section
5.01. Establishment of Accounts. The Company shall establish an Account for each SRP Participant, and shall credit to
each such Account the amounts specified in Sections 5.02, 5.03 and 5.04, as applicable.

 

Section
5.02. Initial Account Balances. A SRP Participant who is a Participant on January 1, 2009 shall be credited with an
opening Account balance in an amount equal to the single sum Actuarial Equivalent present value of such Participant’s
vested Accrued Benefit, calculated under Section 4.05 assuming a Termination Date of December 31, 2008. All other SRP
Participants shall have an opening Account balance of zero.

 

Section
5.03. Annual Allocations.

 

(a)Eligibility
for Annual Allocation. Each SRP Participant shall be entitled to an annual allocation to his Account as of the last day of
a Plan Year if all of the following requirements are met:

 

		(i)	the SRP Participant has completed 1,000 Hours of Service in such Plan Year, or has terminated employment
during such Plan Year as a result of death, Total and Permanent Disability or Retirement;

 

		(ii)	the SRP Participant is considered a Highly Compensated Employee for such Plan Year; and

 

		(iii)	the SRP Participant is employed by an Employer on the last day of such Plan Year, or has terminated
employment during such Plan Year as a result of death, Total and Permanent Disability or Retirement.

 

(b)Amount of Annual
Allocation. If a SRP Participant is eligible for an annual allocation pursuant to subsection (a), the amount allocated to his
Account as of the last day of the Plan Year shall be determined as follows, based on the Participant’s employment status
as of the last day of such Plan Year:

 

		(i)	If the SRP Participant is a member of the Corporate Executive Committee, his allocation shall be
an amount equal to the percentage of his Compensation for the Plan Year that corresponds to the Participant’s Points as of
the last day of such Plan Year as set forth in the following table:

 

    	16

    	 

    

 

	Points	 	Percentage Compensation
	<60	 	4%
	60 - 69	 	5%
	70 - 79	 	6%
	80+	 	7%

 

 

		(ii)	If the SRP Participant is a Senior Vice President, Vice President, Senior Corporate Associate or
Hotel General Manager (such designations to be determined in the sole discretion of the Administrator), his allocation shall be
an amount equal to the percentage of his Compensation for the Plan Year that corresponds to the Participant’s Points as of
the last day of such Plan Year as set forth in the following table:

 

	Points	 	Percentage Compensation
	<60	 	2.0%
	60 - 69	 	2.5%
	70 - 79	 	3.0%
	80+	 	3.5%

 

		(iii)	For all other Participants, his allocation shall be an amount equal to 0.5% of his Compensation
for the Plan Year.

 

Section
5.04. Earnings on Accounts. Accounts shall be credited as of the last day of each calendar year quarter with simple
interest at the reference rate declared by Chase Bank N.A. on the first day of the calendar year quarter. Quarterly
adjustments in the reference rate at the beginning of each calendar year quarter will apply to all monies in an Account.

 

Section
5.05. Vesting of Account Balances.

 

(a)A SRP Participant
shall be 100% vested in the balance of his Account if he terminates employment with the Employer due to death, Total and Permanent
Disability, or Retirement. In all other cases, the SRP Participant shall be vested in the balance of his Account as of the date
of his Termination Date in accordance with the following schedule:

 

    	17

    	 

    

 

	years of service	 	vested percentage 
of Account
	Less than 5	 	0%
	5	 	50%
	6	 	60%
	7	 	70%
	8	 	80%
	9	 	90%
	10	 	100%

 

(b)Notwithstanding
subsection (a), one hundred percent (100%) of the entire balance in a SRP Participant’s Account shall be forfeited if the
Administrator determines, in its sole discretion, as of or subsequent to the Participant’s Termination Date that either or
both of the following events shall have occurred:

 

		(i)	The Participant engaged in misconduct with respect to his employment with the Employer which shall
include, but not be limited to by way of enumeration, theft, embezzlement, dishonesty, fraud, malfeasance, misappropriation, divulging
trade secrets or confidential business information, conspiracy against any Employer, refusal of a work assignment by his Employer
or assisting a competitor of any Employer; and/or

 

		(ii)	During the one (1) year period immediately following the Participant’s Termination Date,
the Participant takes employment with, becomes a consultant to or otherwise engages in a business competitive with any business
of any Employer within Wisconsin, any state contiguous thereto or any other state in which such Employer does business.

 

Section
5.06. Distributions.

 

(a)Initial Elections.
Each SRP Participant who is a Participant on January 1, 2009, shall, prior to December 31, 2008, and pursuant to procedures established
by the Administrator, elect the time and form of payment of his Account balance in accordance with subsections (d) and (e), which
election shall become irrevocable as of January 1, 2009, except as provided in subsection (b). Each other SRP Participant shall,
within the first 30 days of his participation date and pursuant to procedures established by the Administrator, elect the time
and form of payment of his Account balance in accordance with subsections (d) and (e), which election shall become irrevocable
as of the end of the 30-day period, except as provided in subsection (b).

 

(b)Subsequent
Elections. Beginning in 2010 and each five years thereafter (i.e., 2015, 2020, 2025, etc.), a SRP Participant may file
a new election as to the time and form of payment of his Account balance, in accordance with subsections (d) and (e), attributable
to deferrals made with respect to the following five (5) years. Such election shall be irrevocable as of the January 1 for which
it is effective, subject to the SRP Participant’s right to make a new election for a subsequent 5-year cycle. For example,
by December 31, 2010, a SRP Participant may file an election with respect to his Account balance attributable to deferrals made
with respect to the 2011-2015 time period. By December 31, 2015, a SRP Participant may file an election with respect to his Account
balance attributable to deferrals made with respect to the 2016-2020 time period. The Administrator shall create sub-Account(s)
to reflect each separate time and form of payment elected by the SRP Participant.

 

    	18

    	 

    

 

(c)Default Elections.
If a SRP Participant fails to make an initial election as to the time and form of payment pursuant to subsection (a), the Account
shall be paid in the form of a lump sum at the Participant’s attainment of age sixty-five (65) or Separation from Service,
if later. If a SRP Participant fails to file an election with respect to a subsequent 5-year cycle pursuant to subsection (b),
the most recent election on file (or deemed election if no election has been made) shall apply to the next 5-year cycle.

 

(d)Time of Payment.
A SRP Participant’s Account shall be paid on the later of Separation from Service or the age elected by the SRP Participant,
which must not be earlier than age sixty (60) or later than age sixty-five (65), or on the default date specified in subsection
(c) if applicable (the “distribution date”).

 

(e)Forms of Payment.
A SRP Participant may elect to have his vested Account paid in one of the following optional forms of distribution, or payment
shall be made in the default form specified in subsection (c) if applicable.

 

		(i)	An optional form of distribution of an Account is payment in a single lump sum amount equal to
the vested balance of the SRP Participant’s Account within ninety (90) days after the distribution date; provided that if
the distribution is to be made upon a SRP Participant’s Separation from Service and such individual is a Specified Employee
at the time of his Separation from Service, then payment shall be made in the seventh (7th) month following the month
in which the SRP Participant’s Separation from Service occurs. 

 

		(ii)	An optional form of distribution of an Account is the installment method of payment. Annual installments
over not more than ten (10) years may be elected. If the installment method of payment is elected, the periodic payments will include
earnings adjustments to any remaining balance during the payout period. Annual amounts to be distributed under the installment
method are determined at the beginning of the year in which payments are to be made by multiplying the vested balance of the SRP
Participant’s Account by a fraction in which the numerator is one (1) and the denominator is the number of annual payments
remaining to be paid (e.g., for 10 installments, 1/10, 1/9, 1/8, etc.). The first installment payment shall be paid no later than
ninety (90) days after the distribution date; provided that if the distribution is to be made upon a SRP Participant’s Separation
from Service and such individual is a Specified Employee at the time of his Separation from Service, then payment shall be made
in the seventh (7th) month following the month in which the SRP Participant’s Separation from Service occurs.
Remaining installment payments will be paid in January of each year subsequent to the year in which the first installment
was paid. If the vested balance of a SRP Participant’s Account is ten thousand dollars ($10,000) or less on any payment date,
the Company shall make a lump sum distribution to the SRP Participant of the full remaining vested Account balance.

 

    	19

    	 

    

 

(f)Lump Sum Distribution.
Notwithstanding anything to the contrary in subsections (d) and (e), on or after a SRP Participant’s Separation from Service,
the Administrator may elect, at its sole discretion, to distribute the SRP Participant’s entire Account balance to such SRP
Participant in a lump sum if (i) the sum of (A) such Account balance and (B) any other account balance representing Company
contributions and earnings thereon held on behalf of the SRP Participant in a nonqualified deferred compensation plan does not
exceed $17,500, which is the annual dollar limit on employee elective deferrals to the 401(k) plan for 2013 without regard to the
age 50 catch-up amount, or such other dollar amount that is the elective deferral limit under Code Section 402(g)(1)(B) for the
year in which the SRP Participant’s Separation from Service occurs, and (ii) such lump sum distribution results in the termination
and liquidation of the entirety of the SRP Participant’s interest in the Account and the other account balance representing
Company contributions and earnings thereon.

 

(g)Death Benefits.
If a SRP Participant dies before receiving the full distribution of his vested Account, any remaining distributions shall be made
to the Beneficiary in a single lump sum within ninety (90) days following the date of the SRP Participant’s death (provided
that the Company shall have no liability to any Beneficiary for the consequences arising from any delay in payment resulting from
the failure of the Beneficiary to timely notify the Company of the SRP Participant’s death). If a Beneficiary dies after
a SRP Participant while entitled to receive a distribution from the Plan, the distribution shall be paid to the estate of the Beneficiary.
If a valid designation of Beneficiary is not in effect at the time of the death of a SRP Participant, or if the Beneficiary does
not survive the SRP Participant, the estate of the SRP Participant is deemed to be the sole Beneficiary of the SRP Participant.

 

    	20

    	 

    

 

ARTICLE
VI.

FUNDING OF BENEFITS

 

Section
6.01. Source of Payments.

 

(a)Except as otherwise
provided in subsection (c) of this Section 6.01, no funds or other assets of the Company or the other Employer shall be segregated
and attributable to any benefit payments to be made at a later time as hereinabove provided, but rather benefit payments under
the Plan shall be made from the general assets of the Company at the time any such payment becomes due and payable. Benefit payments
under the Plan are to be taken as deductions for income tax purposes in the Company’s fiscal year that they are actually
made. No Participant or his Spouse or Beneficiary (surviving or otherwise), if any, shall have any proprietary rights of any nature
whatsoever with respect to any benefit payments, unless and until such time a benefit payment, and then only as to the amount of
such payment, is made to such Participant or the surviving Spouse or Beneficiaries thereof, as the case may be.

 

(b)The dollar amount
of benefits that the Plan is obligated to pay to Participants pursuant to the provisions contained herein will be recorded as part
of the Company’s standard accounting procedures.

 

(c)In the event that
there is a change of control or potential change of control (as defined in the Trust document) of the Company, the Company will
fund the Trust in accordance with the provisions of the Trust document to assure that obligations owed to all Participants hereunder
as of the date of said change shall be met; provided, however, that all monies deposited in the Trust shall remain subject to the
claims of the Company’s general creditors. 

 

    	21

    	 

    

 

ARTICLE
VII.

OTHER PROVISIONS

 

Section
7.01. Administration of the Plan. The Plan shall be administered by the Administrator who shall have all such powers that
may be necessary to carry out the provisions of the Plan in the absence of any action by the Board, including without
limitation, the power to delegate administrative matters to other persons; to amend, construe and interpret the Plan; to
adopt and revise rules, regulations and forms relating to and consistent with the Plan’s terms; and to make any other
determinations which it deems necessary or advisable for the implementation and administration of the Plan; provided,
however, that the right and power to amend the Plan’s Accrued Benefit calculation formula, the Account balances
crediting formula, the vesting requirements and/or to terminate the Plan are reserved exclusively to the Board. Subject to
the foregoing, all decisions and determinations by the Administrator shall be final, binding and conclusive as to all
parties, including without limitation any Employer, any Participant, any Spouse or other Beneficiary of a Participant, all
other employees of the Employer and all other persons.

 

Section
7.02. Non-Alienation of Payments. Any benefits payable under the Plan shall not be subject in any manner to alienation,
sale, transfer, assignment, pledge, attachment, garnishment or encumbrance of any kind, by will, or by inter vivos
instrument. Any attempt to alienate, sell, transfer, assign, pledge or otherwise encumber any such benefit payment, whether
currently or thereafter payable, shall not be recognized by the Administrator or any Employer. Any benefit payment due
hereunder shall not in any manner be liable for or subject to the debts or liabilities of any Participant or the surviving
Spouse or Beneficiary thereof, as the case may be. If any such Participant, surviving Spouse or Beneficiary shall attempt to
alienate, sell, transfer, assign, pledge or otherwise encumber any benefit payments to be made to that person under the Plan
or any part thereof, or if by reason of such person’s bankruptcy or other event happening at any time, such payments
would devolve upon anyone else or would not be enjoyed by such person, then the Administrator, in its sole discretion, may
terminate such person’s interest in any such benefit payment, and hold or apply it to or for the benefit of that
person, the Spouse, children, or other dependents thereof, or any of them, in such manner as the Administrator may deem
proper.

 

Section
7.03. Incompetency. Every person receiving or claiming benefit payments under the Plan shall be conclusively presumed to
be mentally competent and age of majority until the date on which the Administrator receives a written notice, in a form and
manner acceptable to the Administrator, that such person is incompetent and/or a minor and that a guardian, conservator, or
other person legally vested with the care of his estate has been appointed. In the event a guardian or conservator of the
estate of any person receiving or claiming benefit payments under this Plan shall be appointed by a court of competent
jurisdiction, payments may be made to such guardian or conservator; provided that proper proof of appointment and continuing
qualification is furnished in a form and manner acceptable to the Administrator. Any such payment so made shall be a complete
discharge of any liability therefor.

 

Section
7.04. Limitation of Rights Against the Employer. Participation in the Plan, or any modifications thereof, or the payments
of any benefits hereunder, shall not be construed as giving to any Participant any right to be retained in the service of any
Employer, limiting in any way the right of any Employer to terminate such Participant’s employment at any time,
evidencing any agreement or understanding express or implied, that any Employer will employ such Participant in any
particular position or at any particular rate of compensation and/or guaranteeing such Participant any right to receive any
other form or amount of remuneration from any Employer.

 

    	22

    	 

    

 

Section
7.05. Liability. Neither the Employer nor any shareholder, director, officer or other employee of any Employer or the
Administrator or any other person shall be jointly or severally liable for any act or failure to act hereunder, except for
gross negligence or fraud.

 

Section
7.06. Amendment or Termination of the Plan.

  

(a)Amendment.
The Company, by action of the Board or the Administrator, as applicable, reserves the right to amend or modify the Plan at any
time; and such action shall be final, binding and conclusive as to all parties, including any Participant hereunder, any surviving
Spouse or Beneficiary thereof and all other employees and persons; provided, however, that any such action by the Board or the
Administrator, as applicable, to change the monthly or other payment amount or the time and manner of payment thereof as then provided
in the Plan shall not be effective and operative unless and until written consent thereto is obtained from each Participant affected
by such action or, if any such Participant is not then living, from the surviving Spouse or beneficiary thereof, as the case may
be.

 

(b)Termination.
The Company, by action of the Board, reserves the right to terminate or discontinue the Plan at any time; and such action shall
be final, binding and conclusive as to all parties, including any Participant hereunder, any surviving Spouse or Beneficiary thereof
and all other employees and persons; provided, however, that any such action by the Board to terminate or discontinue the Plan
shall not be effective and operative unless and until written consent thereto is obtained from each Participant affected by such
action or, if any such Participant is not then living, from the surviving Spouse or Beneficiary thereof, as the case may be. Upon
termination of the Plan, the Board may provide that all benefits will be paid out in connection with the termination of the Plan
in the following circumstances:

 

		(i)	The irrevocable termination occurs within thirty (30) days prior to or twelve (12) months following
a Change of Control, and all other arrangements required to be aggregated with this Plan under Code Section 409A following the
Change of Control are likewise terminated and liquidated with respect to each Participant that experienced the Change of Control
event. In such event, each Participant’s benefits or Account balance, including those benefits or Account balances already
in pay status, shall be paid in a lump sum as soon as practicable (but not more than twelve (12) months) following the date of
such Plan termination.

 

		(ii)	The termination occurs within twelve (12) months of a corporate dissolution taxed under Code Section
331, or with the approval of a bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A). In such event, each Participant’s
benefits or Account balance, including those benefits or Account balances already in pay status, shall be paid in a lump sum in
the latest of: (A) the calendar year in which the Plan termination occurs, (B) the first calendar year in which the payment is
no longer subject to a substantial risk of forfeiture, or (C) the first calendar year in which payment is administratively practicable.

 

    	23

    	 

    

 

		(iii)	The termination of the Plan is irrevocable and does not occur proximate to a downturn in the financial
health of the Company and its Affiliates. In such event, all benefits and vested Account balances will be distributed to all Participants,
Spouses or beneficiaries, as applicable, in a single sum payment at least 12, but not more than 24, months after the date of termination.
This provision shall not be effective unless all other plans required to be aggregated with this Plan under Code Section 409A are
also terminated and liquidated. Notwithstanding the foregoing, any payment that would otherwise be paid during the 12-month period
beginning on the Plan termination date pursuant to the terms of the Plan shall be paid in accordance with such terms. In addition,
the Company or any Affiliate shall be prohibited from adopting a similar arrangement within three years following the date of the
Plan’s termination.

 

All lump sums payable
shall be the single sum Actuarial Equivalent present value of the Accrued Benefit, or the vested Account balance, to which the
Participant, Spouse or Beneficiary is entitled, as applicable, as of the date such lump sum is paid.

 

Section
7.07. Tax Withholding. The Company shall deduct from benefits payable hereunder any amounts it is required to withhold
for taxes as to such benefits under any state, federal, or local law. In addition, if prior to the date of distribution of
any amount hereunder, the Federal Insurance Contributions Act (FICA) tax imposed under Code Sections 3101, 3121(a) and
3121(v)(2), where applicable, becomes due, then the Administrator may authorize a payment from the RIP Participant’s
Accrued Benefit or the SRP Participant’s Account balance equal to the amount needed to pay the Participant’s
portion of such tax, as well as withholding taxes resulting therefrom (including the additional taxes attributable to the
pyramiding of such distributions and taxes).

 

Section
7.08. Claims Procedures.

 

(a)Initial Claim.
If a Participant, Spouse or Beneficiary (the “claimant”) believes that he is entitled to a distribution from the Plan
that was not provided, the claimant or his legal representative shall file a written claim for such benefit with the Administrator
no later than ninety (90) days following the date the distribution should have been made. The Administrator shall review the claim
within 60 days following the date of receipt of the claim. If the claimant’s claim is denied in whole or part, the Administrator
shall provide written notice to the claimant of such denial. The written notice shall include: the specific reason(s) for the denial;
reference to specific Plan provisions upon which the denial is based; a description of any additional material or information necessary
for the claimant to perfect the claim and an explanation of why such material or information is necessary; and a description of
the Plan’s review procedures (as set forth in subsection (b)) and the time limits applicable to such procedures, including
a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse determination
upon review.

 

    	24

    	 

    

 

(b)Request for
Appeal. The claimant has the right to appeal the Administrator’s decision by filing a written appeal to the Administrator
within 60 days after the claimant’s receipt of the decision or deemed denial; provided that to avoid penalties under Code
Section 409A, the claimant’s appeal must be filed no later than 180 days after the latest date the payment that is in dispute
should have been paid. The claimant will have the opportunity, upon request and free of charge, to have reasonable access to and
copies of all documents, records and other information relevant to the claimant’s appeal. The claimant may submit with the
appeal written comments, documents, records and other information relating to his appeal. The Administrator will review all comments,
documents, records and other information submitted by the claimant relating to the claim, regardless of whether such information
was submitted or considered in the initial claim determination. The Administrator shall make a determination on the appeal within
60 days after receiving the claimant’s written appeal; provided that the Administrator may determine that an additional 60-day
extension is necessary due to circumstances beyond the Administrator’s control, in which event the Administrator shall notify
the claimant prior to the end of the initial period that an extension is needed, the reason therefor and the date by which the
Administrator expects to render a decision. If the claimant’s appeal is denied in whole or part, the Administrator shall
provide written notice to the claimant of such denial. The written notice shall include: the specific reason(s) for the denial;
reference to specific Plan provisions upon which the denial is based; a statement that the claimant is entitled to receive, upon
request and free of charge, reasonable access to and copies of all documents, records, and other information relevant to the claimant’s
claim; and a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA. If the claimant does
not receive a written decision within the time period(s) described above, the appeal shall be deemed denied on the last day of
such period(s).

 

(c)ERISA Fiduciary.
For purposes of ERISA, the Administrator shall be considered the named fiduciary and the plan administrator for the Plan.

 

    	25NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED
BY THIS NOTE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I)
IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B)
AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT
REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

	Principal Amount: $__________	Date: September 27, 2013

 

CONVERTIBLE PROMISSORY NOTE

 

INVENT Ventures., (hereinafter called the “Borrower”
or “IDEA”), hereby promises to pay to the order of ____________________, or its registered assigns (the “Holder”)
the sum of $_______________, together with any interest as set forth herein, on September 27, 2014 (the “Maturity Date”),
and to pay interest on the unpaid principal balance hereof at the rate of Twelve percent (12%) (the “Interest Rate”)
per annum from the date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon
acceleration or by prepayment or otherwise.

 

This Note may be prepaid in whole or in part as set forth herein,
and there shall be no penalty for prepayment. Any amount of principal or interest on this Note which is not paid when due shall
bear interest at the rate of fourteen percent (14%) per annum from the due date thereof until the same is paid (“Default
Interest”). Interest shall commence accruing on the date that the Note is fully paid and shall be computed on the basis of
a 365-day year and the actual number of days elapsed. All payments due hereunder (to the extent not converted into common stock)
shall be made in lawful money of the United States of America.

 

All payments shall be made at such address as the Holder shall
hereafter give to the Borrower by written notice made in accordance with the provisions of this Note. Whenever any amount expressed
to be due by the terms of this Note is due on any day which is not a business day, the same shall instead be due on the next succeeding
day which is a business day and, in the case of any interest payment date which is not the date on which this Note is paid in
full, the extension of the due date thereof shall not be taken into account for purposes of determining the amount of interest
due on such date. As used in this Note, the term “business day” shall mean any day other than a Saturday, Sunday or
a day on which commercial banks in the city of Los Angeles, California are authorized or required by law or executive order to
remain closed. Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed thereto in the supporting
documents of same date (attached hereto).

 

    	 

    	 

    

 

This Note is free from
all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other
similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.

 

The following
terms shall apply to this Note:

 

ARTICLE I. CONVERSION RIGHTS

 

1.1         Conversion
Right. The Holder shall have the right and at any time during the period beginning
on the date of this Note to convert all or any part of the outstanding and unpaid principal amount of this Note into fully paid
and non- assessable shares of Common Stock, as such Common Stock exists on the Issue Date, or any shares of capital stock or other
securities of the Borrower into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the
“Conversion Price”) determined as provided herein (a “Conversion”); provided,
however, that in no event shall the Holder be entitled to convert any portion
of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common Stock
beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through
the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion of any other security of the Borrower
subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of
Common Stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is
being made, would result in beneficial ownership by the Holder and its affiliates of more than 9.99% of the outstanding shares
of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in
accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations
13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The number of shares of Common Stock to be issued
upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion
Price then in effect on the date specified in the notice of conversion, (the “Notice of Conversion”), delivered to
the Borrower by the Holder in accordance with the Sections below; provided that the Notice of Conversion is submitted by facsimile
or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Borrower before 3:00 p.m., Los Angeles,
California time on such conversion date (the “Conversion Date”).

 

The term “Conversion
Amount” means, with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted
in such conversion plus (2) at the Borrower’s option, accrued and
unpaid interest, if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, plus
(3) at the Borrower’s option, Default Interest, if any, on the amounts referred
to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder’s
option, any amounts owed to the Holder.

 

    	 

    	 

    

 

1.2         Conversion
Price.

 

(a)          Calculation
of Conversion Price.   Holder,
at its discretion, shall have the right to convert this Note in its entirety or in part(s) into common stock of the Company at
the lower of $0.27 per share or the current NAV (based on most recent quarterly or annual filing) at the time of conversion.

 

1.3         Authorized
Shares. The Borrower covenants that during the period the conversion right exists,
the Borrower will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights,
to provide for the issuance of Common Stock upon the full conversion of this Note. The Borrower is required at all times to have
authorized and reserved three times the number of shares that is actually issuable upon full conversion of the Note (based on the
Conversion Price of the Notes in effect from time to time)(the “Reserved Amount”). The Reserved Amount shall be increased
from time to time in accordance with the Borrower’s obligations.

 

The Borrower represents that
upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. In addition, if the Borrower shall issue
any securities or make any change to its capital structure which would change the number of shares of Common Stock into which the
Notes shall be convertible at the then current Conversion Price, the Borrower shall at the same time make proper provision so that
thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for
conversion of the outstanding Notes.

 

1.4         Method
of Conversion.

 

(a)          Mechanics
of Conversion. This Note may be converted by the Holder in whole or in part at any
time from time to time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or
other reasonable means of communication dispatched on the Conversion Date prior to 3:00 p.m., Los Angeles, California time).

 

(b)          Surrender
of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein,
upon conversion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this
Note to the Borrower unless the entire unpaid principal amount of this Note is so converted. The Holder and the Borrower shall
maintain records showing the principal amount so converted and the dates of such conversions or shall use such other method, reasonably
satisfactory to the Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion. In
the event of any dispute or discrepancy, such records of the Borrower shall, prima facie, be controlling and determinative
in the absence of manifest error. Notwithstanding the foregoing, if any portion of this Note is converted as aforesaid, the Holder
may not transfer this Note unless the Holder first physically surrenders this Note to the Borrower, whereupon the Borrower
will forthwith issue and deliver upon the order of the Holder a new Note of like tenor, registered as the Holder (upon payment
by the Holder of any applicable transfer taxes) may request, representing in the aggregate the remaining unpaid principal amount
of this Note. The Holder and any assignee, by acceptance of this Note, acknowledge and agree that, by reason of the provisions
of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted principal amount of this Note represented
by this Note may be less than the amount stated on the face hereof.

 

    	 

    	 

    

 

(c)          Payment
of Taxes. The Borrower shall not be required to pay any tax which may be payable in
respect of any transfer involved in the issue and delivery of shares of Common Stock or other securities or property on conversion
of this Note in a name other than that of the Holder (or in street name), and the Borrower shall not be required to issue or deliver
any such shares or other securities or property unless and until the person or persons (other than the Holder or the custodian
in whose street name such shares are to be held for the Holder’s account) requesting the issuance thereof shall have paid
to the Borrower the amount of any such tax or shall have established to the satisfaction of the Borrower that such tax has been
paid.

 

(d)          Delivery
of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a
facsimile transmission or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements
for conversion as provided in this Section, the Borrower shall issue and deliver or cause to be issued and delivered to or upon
the order of the Holder certificates for the Common Stock issuable upon such conversion within three (2) business days after such
receipt (the “Deadline”) (and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender
of this Note) in accordance with the terms hereof and the Purchase Agreement.

 

(e)          Obligation
of Borrower to Deliver Common Stock. Upon receipt by the Borrower of a Notice of Conversion,
the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal
amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the
Borrower defaults on its obligations under this Article I, all rights with respect to the portion of this Note being so converted
shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided,
on such conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Borrower’s obligation to
issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action
by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against
any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Borrower to
the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the
Holder of any obligation to the Borrower, and irrespective of any other circumstance which might otherwise limit such obligation
of the Borrower to the Holder in connection with such conversion. The Conversion Date specified in the Notice of Conversion shall
be the Conversion Date so long as the Notice of Conversion is received by the Borrower before 3:00 p.m., Los Angeles, California,
on such date.

 

    	 

    	 

    

 

(f)          Delivery
of Common Stock by Electronic Transfer. In lieu of delivering physical certificates
representing the Common Stock issuable upon conversion, provided the Borrower is participating in the Depository Trust Company
(“DTC”) Fast Automated Securities Transfer (“FAST”) program, upon request of the Holder and its compliance
with the provisions contained in Section 1.1 and in this Section 1.4, the Borrower shall use its best efforts to cause its transfer
agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s
Broker with DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system.

 

1.5           Concerning
the Shares. The shares of Common Stock issuable upon conversion of this Note may not
be sold or transferred unless (i) such shares are sold pursuant to an effective registration statement under the Act or (ii) the
Borrower or its transfer agent shall have been furnished with an opinion of counsel (which opinion shall be in form, substance
and scope customary for opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred
may be sold or transferred pursuant to an exemption from such registration or (iii) such shares are sold or transferred pursuant
to Rule 144 under the Act (or a successor rule) (“Rule 144”) or (iv) such shares are transferred to an “affiliate”
(as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares only in accordance with this Section
1.5 and who is an Accredited Investor. Except as otherwise provided herein (and subject to the removal provisions set forth below),
until such time as the shares of Common Stock issuable upon conversion of this Note have been registered under the Act or otherwise
may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular date that can then be
immediately sold, each certificate for shares of Common Stock issuable upon conversion of this Note that has not been so included
in an effective registration statement or that has not been sold pursuant to an effective registration statement or an exemption
that permits removal of the legend, shall bear a legend substantially in the following form, as appropriate:

 

    	 

    	 

    

 

“NEITHER THE ISSUANCE AND SALE OF THE SECURITIES
REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISEABLE HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT
REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING
THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT
SECURED BY THE SECURITIES.”

 

The legend set forth above shall be removed
and the Borrower shall issue to the Holder a new certificate therefore free of any transfer legend if (i) the Borrower or its transfer
agent shall have received an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions,
to the effect that a public sale or transfer of such Common Stock may be made without registration under the Act, which opinion
shall be accepted by the Company so that the sale or transfer is effected or (ii) in the case of the Common Stock issuable upon
conversion of this Note, such security is registered for sale by the Holder under an effective registration statement filed under
the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of a particular
date that can then be immediately sold.         

 

1.6         Effect
of Certain Events.

 

(a)          Effect
of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or
disposition of all or substantially all of the assets of the Borrower, the effectuation by the Borrower of a transaction or series
of related transactions in which more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger
or other business combination of the Borrower with or into any other Person (as defined below) or Persons when the Borrower is
not the survivor shall either: (i) be deemed to be an Event of Default (as defined in Article III) pursuant to which the Borrower
shall be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount equal to the Default
Amount (as defined in Article III) or (ii) be treated pursuant to Section 1.6(b) hereof. “Person” shall mean any individual,
corporation, limited liability company, partnership, association, trust or other entity or organization.

 

    	 

    	 

    

 

(b) Adjustment Due to Merger, Consolidation,
Etc. If, at any time when this Note is issued and outstanding and prior to conversion
of all of the Notes, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar
event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares
of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of all
or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower,
then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the
terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion,
such stock, securities or assets which the Holder would have been entitled to receive in such transaction had this Note been converted
in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such
case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that the
provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares
issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities
or assets thereafter deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section
1.6(b) unless (a) it first gives, to the extent practicable, thirty (30) days prior written notice (but in any event at least fifteen
(15) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record
date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event
or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring
entity (if not the Borrower) assumes by written instrument the obligations of this Section 1.6(b). The above provisions shall similarly
apply to successive consolidations, mergers, sales, transfers or share exchanges.

 

(c)
Adjustment Due to Distribution. If the Borrower shall declare or make any
distribution of its assets (or rights to acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by way
of return of capital or otherwise (including any dividend or distribution to the Borrower’s shareholders in cash or shares
(or rights to acquire shares) of capital stock of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder
of this Note shall be entitled, upon any conversion of this Note after the date of record for determining shareholders entitled
to such Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to the shares
of Common Stock issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the record date
for the determination of shareholders entitled to such Distribution.

 

    	 

    	 

    

 

(d) Notice of Adjustments.
Upon the occurrence of each adjustment or readjustment of the Conversion Price as a result of the events described in this Section
1.6, the Borrower, at its expense, shall promptly compute such adjustment or readjustment and prepare and furnish to the Holder
of a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment
is based. The Borrower shall, upon the written request at any time of the Holder, furnish to such Holder a like certificate setting
forth (i) such adjustment or readjustment, (ii) the Conversion Price at the time in effect and (iii) the number of shares of Common
Stock and the amount, if any, of other securities or property which at the time would be received upon conversion of the Note.

 

1.7         Trading
Market Limitations. Unless permitted by the applicable rules and regulations of the
principal securities market on which the Common Stock is then listed or traded, in no event shall the Borrower issue upon conversion
of or otherwise pursuant to this Note and the other Notes issued pursuant to the Purchase Agreement more than the maximum number
of shares of Common Stock that the Borrower can issue pursuant to any rule of the principal United States securities market on
which the Common Stock is then traded (the “Maximum Share Amount”), which shall be 9.99% of the total shares outstanding
on the Closing Date (as defined in the Purchase Agreement), subject to equitable adjustment from time to time for stock splits,
stock dividends, combinations, capital reorganizations and similar events relating to the Common Stock occurring after the date
hereof. Once the Maximum Share Amount has been issued, if the Borrower fails to eliminate any prohibitions under applicable law
or the rules or regulations of any stock exchange, interdealer quotation system or other self-regulatory organization with jurisdiction
over the Borrower or any of its securities on the Borrower’s ability to issue shares of Common Stock in excess of the Maximum
Share Amount, in lieu of any further right to convert this Note, this will be considered an Event of Default under Section 3.3
of the Note.

 

1.8         Status
as Shareholder. Upon submission of a Notice of Conversion by a Holder, (i) the shares
covered thereby (other than the shares, if any, which cannot be issued because their issuance would exceed such Holder’s
allocated portion of the Reserved Amount or Maximum Share Amount) shall be deemed converted into shares of Common Stock and (ii)
the Holder’s rights as a Holder of such converted portion of this Note shall cease and terminate, excepting only the right
to receive certificates for such shares of Common Stock and to any remedies provided herein or otherwise available at law or in
equity to such Holder because of a failure by the Borrower to comply with the terms of this Note. Notwithstanding the foregoing,
if a Holder has not received certificates for all shares of Common Stock prior to the tenth (10th) business day after the expiration
of the Deadline with respect to a conversion of any portion of this Note for any reason, then (unless the Holder otherwise elects
to retain its status as a holder of Common Stock by so notifying the Borrower) the Holder shall regain the rights of a Holder of
this Note with respect to such unconverted portions of this Note and the Borrower shall, as soon as practicable, return such unconverted
Note to the Holder or, if the Note has not been surrendered, adjust its records to reflect that such portion of this Note has not
been converted. In all cases, the Holder shall retain all of its rights and remedies (including, without limitation, (i) the right
to receive Conversion Default Payments pursuant to Section 1.3 to the extent required thereby for such Conversion Default and any
subsequent Conversion Default and (ii) the right to have the Conversion Price with respect to subsequent conversions determined
in accordance with Section 1.3) for the Borrower’s failure to convert this Note.

 

    	 

    	 

    

 

1.9         Prepayment.
Maker may prepay this Note, in whole or in part, at any time and from time to time, with premium and/or penalty, where parties
have approved said premium or penalty in writing.

 

ARTICLE II. EVENTS OF DEFAULT

 

If any of the following events of default (each,
an “Event of Default”) shall occur:

 

2.1         Failure
to Pay Principal or Interest. The Borrower fails to pay the principal hereof or interest
thereon when due on this Note, whether at maturity, upon acceleration or otherwise.

 

2.2         Conversion
and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or
announces or threatens in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion
rights of the Holder in accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue)
(electronically or in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or
otherwise pursuant to this Note as and when required by this Note, the Borrower directs its transfer agent not to transfer or delays,
impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate
for shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required
by this Note, or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent
from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for
any shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this
Note (or makes any written announcement, statement or threat that it does not intend to honor the obligations described in this
paragraph) and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations
shall not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion. It
is an obligation of the Borrower to remain current in its obligations to its transfer agent. It shall be an event of default of
this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer
agent. If at the option of the Holder, the Holder advances any funds to the Borrower’s transfer agent in order to process
a conversion, such advanced funds shall be paid by the Borrower to the Holder within forty eight (48) hours of a demand from the
Holder.

 

    	 

    	 

    

 

2.3         Breach
of Covenants. The Borrower breaches any material covenant or other material term or
condition contained in this Note and any collateral documents including but not limited to the Purchase Agreement and such breach
continues for a period of ten (10) days after written notice thereof to the Borrower from the Holder.

 

2.4         Breach
of Representations and Warranties. Any representation or warranty of the Borrower
made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith (including,
without limitation, the Purchase Agreement), shall be false or misleading in any material respect when made and the breach of which
has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Note or
the Purchase Agreement.

 

2.5         Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall
make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or
for a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed.

 

2.6
Judgments. Any money judgment, writ or similar process shall be entered
or filed against the Borrower or any subsidiary of the Borrower or any of its property or other assets for more than $50,000, and
shall remain unvacated, unbonded or unstayed for a period of twenty (20) days unless otherwise consented to by the Holder, which
consent will not be unreasonably withheld.

 

2.7         Bankruptcy.
Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under
any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any subsidiary of the
Borrower.

 

2.8         Delisting
of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock
on at least one of the OTCBB or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the
New York Stock Exchange, or the American Stock Exchange.

 

2.9         Failure
to Comply with the Exchange Act. The Borrower shall fail to comply with the reporting
requirements of the Exchange Act; and/or the Borrower shall cease to be subject to the reporting requirements of the Exchange Act.

 

2.10       Liquidation.
Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.

 

2.11       Cessation
of Operations. Any cessation of operations by Borrower or Borrower admits it is otherwise
generally unable to pay its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability
to continue as a “going concern” shall not be an admission that the Borrower cannot pay its debts as they become due.

 

    	 

    	 

    

 

2.12       Maintenance
of Assets. The failure by Borrower to maintain any material intellectual property
rights, personal, real property or other assets which are necessary to conduct its business (whether now or in the future).

 

Upon the occurrence and during the continuation
of any Event of Default specified in Section 3.1 (solely with respect to failure to pay the principal hereof or interest thereon
when due at the Maturity Date), the Note shall accrue interest at a rate of Fourteen Percent (14%) per annum.

 

ARTICLE III. MISCELLANEOUS

 

3.1         Failure
or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise
of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such
power, right or privilege preclude other or further exercise thereof or of any other right, power or privileges. All rights and
remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

3.2         Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified
most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine,
at the address or number designated below (if delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service,
fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for
such communications shall be:

 

	If to the Borrower,
    to:
	 
	 
	 
	 
	Attn:

 

    	 

    	 

    

 

If to the Holder:

 

Invent Ventures, Inc.

8651 Lindell Road, Suite D145

Las Vegas, NV 89103

Attn: Bryce Knight

 

3.3         Amendments.
This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The term
“Note” and all reference thereto, as used throughout this instrument, shall mean this instrument (and the other Notes
issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then as so amended or supplemented.

 

3.4         Assignability.
This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder and
its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined in Rule 501(a)
of the 1933 Act). Notwithstanding anything in this Note to the contrary, this Note may be pledged as collateral in connection with
a bona fide margin account or other lending arrangement.

 

3.5         Cost
of Collection. If default is made in the payment of this Note, the Borrower shall
pay the Holder hereof costs of collection, including reasonable attorneys’ fees.

 

3.6         Governing
Law. This Note shall be governed by and construed in accordance with the laws of the
State of California without regard to principles of conflicts of laws. Any action brought by either party against the other concerning
the transactions contemplated by this Note shall be brought only in the state courts of California or in the federal courts located
in the state and county of Los Angeles. The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue
of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum
non conveniens. The Borrower and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other
party its reasonable attorney's fees and costs. In the event that any provision of this Note or any other agreement delivered in
connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed
inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law.
Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any
other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being
served in any suit, action or proceeding in connection with this Agreement or any other Transaction Document by mailing a copy
thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect
for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and
notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted
by law.

 

    	 

    	 

    

 

3.7         Certain
Amounts. Whenever pursuant to this Note the Borrower is required to pay an amount
in excess of the outstanding principal amount (or the portion thereof required to be paid at that time) plus accrued and unpaid
interest plus Default Interest on such interest, the Borrower and the Holder agree that the actual damages to the Holder from the
receipt of cash payment on this Note may be difficult to determine and the amount to be so paid by the Borrower represents stipulated
damages and not a penalty and is intended to compensate the Holder in part for loss of the opportunity to convert this Note and
to earn a return from the sale of shares of Common Stock acquired upon conversion of this Note at a price in excess of the price
paid for such shares pursuant to this Note. The Borrower and the Holder hereby agree that such amount of stipulated damages is
not plainly disproportionate to the possible loss to the Holder from the receipt of a cash payment without the opportunity to convert
this Note into shares of Common Stock.

 

3.8         Notice
of Corporate Events. The Holder of this Note shall have no rights as a Holder of Common
Stock unless and only to the extent that it converts this Note into Common Stock. 

 

3.9         Remedies.
The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating
the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy for a breach
of this note shall be limited to the Default Interest rate listed herein. 

 

	 	INVENT Ventures, Inc.
	 	 	 
	 	By:	 
	 	 	 
	 	Print: Bryce Knight
	 	 	 
	 	Title: CEO

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