Document:

Document

Exhibit 10.1

EVERGY, INC. 
EXECUTIVE SEVERANCE PLAN
(Effective as of November 6, 2019)
		
	1.
	Preamble.

Evergy, Inc. hereby adopts this Evergy, Inc. Executive Severance Plan (this “Plan”), as a top-hat welfare plan under the Employee Retirement Income Security Act of 1974, effective as of November 6, 2019. 
		
	2.
	Certain Definitions.

As used herein, the terms identified below shall have the meanings indicated:
Administrator.  “Administrator” means the Committee.
Affiliate.  “Affiliate” means any person with whom Evergy would be considered a single employer under Code Sections 414(b) or 414(c). 
Board.  “Board” means the Board of Directors of Evergy.
Cause.  “Cause” means (i) fraud, embezzlement or material misappropriation of any of the Company’s funds, Confidential Information or property; (ii) indictment for or the conviction of, or the entering of a guilty plea or plea of no contest with respect to, a felony, or the equivalent thereof, or a misdemeanor involving fraud, embezzlement, theft, misappropriation or failure to be truthful; (iii) any willful action or omission by the Eligible Executive that (I) (A) would constitute grounds for immediate dismissal under any employment policy of the Company, (B) is a material violation of such policy and (C) in the determination of the Committee, could result in damage, liability or reputational harm to the Company, including use of illegal drugs while on the premises of the Company, or (II) is a violation of sexual harassment laws or the internal sexual harassment policy of the Company; (iv) gross negligence or willful misconduct in performance of the Eligible Executive’s duties or in following reasonable instructions of the Board; or (v) any material breach or violation of any material provision of the restrictive covenants set forth in Appendix A. 
CIC Agreement.  “CIC Agreement” means a Change in Control Severance Agreement between the Eligible Executive and Evergy, which agreement provides for certain severance benefits upon certain types of involuntary terminations of employment with the Company in connection with a change in control of Evergy.
COBRA.  “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.
Code.  “Code” means the Internal Revenue Code of 1986, as amended, and the regulations and other guidance promulgated by the Treasury Department and the Internal Revenue Service thereunder.
Committee.  “Committee” means the Compensation and Leadership Development Committee of the Board.

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Company.  “Company” means, except as the context requires otherwise, collectively, Evergy, Inc., its successors and assigns and/or any Affiliate thereof, as applicable.
Confidential Information.  “Confidential Information” means: (1) any and all trade secrets concerning the business and affairs of the Company; product specifications; data; know-how; formulae; algorithms; compositions; processes; designs; sketches; photographs; graphs; drawings; samples; inventions and ideas; past, current and planned research and development; current and planned manufacturing or distribution methods and processes; customer lists; current and anticipated customer requirements; price lists; market studies; business plans; computer software and programs (including object code and source code); computer software and database technologies; systems; structures; and architectures; (2) information concerning the business and affairs of the Company (which includes historical financial statements, financial projections and budgets, historical and projected sales, capital spending budgets and plans, the names and backgrounds of key personnel, personnel training and techniques and materials) and (3) notes, analyses, compilations, studies, summaries and other material prepared by or for the Company containing or based, in whole or in part, or any information included in the foregoing, whether reduced to writing or not and which has not become publicly known or made generally available through no wrongful act of the Eligible Executive or others who were under confidentiality obligations as to the item or items involved.
Date of Termination.  “Date of Termination” means (i) if the Eligible Executive’s employment is terminated by the Company for Cause, the date of receipt of the Notice of Termination or any later date permitted to be specified therein, as the case may be, (ii) if the Eligible Executive’s employment is terminated by the Company other than for Cause, or by reason of death or Disability, the Date of Termination shall be the date on which the Company notifies the Eligible Executive of such termination, or any later date permitted to be specified therein, (iii) if the Eligible Executive’s employment is terminated by reason of death or Disability, the Date of Termination shall be the date of death of the Eligible Executive or the Disability Effective Date, as the case may be and (iv) if the Eligible Executive’s employment is terminated by the Eligible Executive, the Date of Termination shall be the date on which the Eligible Executive notifies the Company in writing of such termination or any later date permitted to be specified therein, as the case may be.
Disability.  “Disability” means an individual (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than 3 months under a Company-sponsored accident or health plan.
Disability Effective Date.  “Disability Effective Date” means the 90th calendar day after the Company provides written notice to the Eligible Executive of its intention to terminate the Eligible Executive’s employment on account of a Disability and provided that during such 90 calendar day period the Eligible Executive shall not have returned to full-time performance of the Eligible Executive’s duties.
Effective Date.  “Effective Date” means November 6, 2019.
Eligible Executive.  “Eligible Executive” means, unless otherwise determined by the Committee, Evergy’s Chief Executive Officer, Chief Financial Officer, President and Chief Operating Officer and any Vice President of Evergy appointed by the Board. 

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ERISA.  “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
Evergy.  “Evergy” means Evergy, Inc. 
Notice of Termination.  “Notice of Termination” means a written notice of termination which (i) indicates the general nature and basis for termination of the Eligible Executive’s employment and (ii) if the Date of Termination is other than the date of receipt of such notice, specifies the termination date (which date shall be not more than fifteen (15) calendar days after the giving of such notice), unless another date is mutually agreed upon between the Eligible Executive and the Company.
Qualifying Termination.  “Qualifying Termination” means the occurrence while this Plan is in effect of an involuntary termination of an Eligible Executive’s employment with the Company without Cause and other than as a result of the Eligible Executive’s death or Disability.  Notwithstanding the foregoing, an Eligible Executive does not experience a Qualifying Termination if the Eligible Executive is a party to a CIC Agreement and his or her termination of employment is covered by the operative provisions of that CIC Agreement (i.e., the Eligible Executive’s termination of employment occurs during either the “Pre-CIC Protected Period” or the “Post-Effective Period” as those terms are defined in the CIC Agreement).  Notwithstanding the foregoing, a “Qualifying Termination” does not occur when an Eligible Executive’s employment with the Company is terminated solely as a result of or in connection with a sale or other divestiture by Evergy of a division, subsidiary or other business segment (including, without limitation, by sale of shares of stock or of assets) pursuant to which the Eligible Executive’s employer ceases to be the Company.
Severance Benefits.  “Severance Benefits” means the benefits described in Sections 3(a)(ii), 3(a)(iii), 3(a)(iv), and 3(b).
Specified Employee.  “Specified Employee” means any employee of the Company that Evergy determines is a Specified Employee within the meaning of Section 409A of the Code.  Evergy shall determine whether an employee is a Specified Employee by applying Evergy’s Specified Employee Identification Procedure effective January 1, 2009, and if no longer in effect, by applying reasonable, objectively determinable identification procedures established by the Board (or a committee thereof) from time to time in accordance with Section 409A of the Code.    
Termination Date.  “Termination Date” means the date on which an Eligible Executive has a “separation from service,” within the meaning of Section 409A of the Code, from the Company.  An Eligible Executive’s employment shall terminate automatically upon the Eligible Executive’s death, and such date of death shall be the Eligible Executive’s Termination Date.  An Eligible Executive’s employment shall terminate automatically upon the Eligible Executive’s Disability Effective Date and such automatic termination date shall be the Eligible Executive’s Termination Date.

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	3.
	Benefits upon a Qualifying Termination.

Subject to, and in accordance with, the terms and conditions of this Plan, an Eligible Executive who incurs a Qualifying Termination shall be entitled to receive the following:
(a)    Cash Payments.  
(i)    Accrued Compensation.  A cash amount equal to the sum of: 
(A)  the Eligible Executive’s base salary as of the Date of Termination that is accrued but not theretofore paid;
(B)  any bonus earned with respect to the fiscal year of the Company immediately preceding the Qualifying Termination under a Company-sponsored annual incentive compensation plan, to the extent not theretofore paid; 
(C)  any accrued unpaid vacation pay; and
(ii)    Severance Compensation.  A cash amount equal to the sum of:
(A)  one (or two in the event the Eligible Executive is Evergy’s Chief Executive Officer) times the Eligible Executive’s current annual base salary in effect on the Date of Termination; and
(B)  one (or two in the event the Eligible Executive is Evergy’s Chief Executive Officer) times the Eligible Executive’s target annual incentive award payable, pursuant to any Company-sponsored annual incentive compensation plan, to Eligible Executive by the Company with respect to the fiscal year of the Company in which the Qualifying Termination occurs. 
(iii)    Pro Rata Target Incentive Award. A cash amount equal to the pro rata portion of the Eligible Executive’s target annual incentive award for the fiscal year in which the Qualifying Termination occurs, to the extent not theretofore paid.  The pro rata portion of the Eligible Executive’s target annual incentive award shall be determined by multiplying the target annual incentive award for the year in which the Qualifying Termination occurs by a fraction, the numerator of which is the number of days elapsed through the Date of Termination for such year and the denominator of which is 365 or 366, as applicable.
(iv)    COBRA Severance Subsidy.  A cash amount equal to twelve (12) (or twenty-four (24) if the Eligible Executive is Evergy’s Chief Executive Officer) times the Company’s monthly COBRA premium cost to cover the Eligible Executive and, if one or more of Eligible Executive’s dependents are, as of the Date of Termination, enrolled, such eligible dependents, under the Company’s health, vision and dental plans.  This section shall not affect the Eligible Executive’s and his or her dependents’ right to elect COBRA coverage or any applicable state statute mandating health insurance continuation coverage. 
(b)    Other Severance Benefits.  The Eligible Executive is also entitled to the following additional benefits in the event of a Qualifying Termination: 
(i)    Outplacement Services. The Company shall provide up to $25,000 in outplacement counseling services to the Eligible Executive through an outplacement counseling services provider 

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selected by the Company, provided the Eligible Executive elects to engage such services within twelve (12) months of the Eligible Executive’s Date of Termination. Payment for such services will be paid by the Company directly to the provider. The Eligible Executive is not entitled to receive any cash value associated with this benefit if the Eligible Executive either does not timely utilize the outplacement counseling provider selected by the Company or fails to utilize the full potential benefit hereunder. 
(ii)    Long-Term Incentive Award Vesting.  An Eligible Executive who incurs a Qualifying Termination shall vest, if at all, in any previously granted long-term cash incentive awards and stock option, restricted stock, restricted stock unit, performance share, performance unit, or any other form of equity awards issued by the Company pursuant to a Company-approved long-term cash incentive or equity plan and held by the Eligible Executive on his or her Termination Date (each a “LTI Award”) in accordance with the following terms and conditions:
(A)    with respect to any time-vesting LTI Award (each a “Time-Vested Award”), a pro rata portion of the unvested portion of each such Time-Vested Award shall become vested upon the Eligible Executive’s Date of Termination, such pro rata portion equal to the excess of (x) the total number of shares subject to the Time-Vested Award, multiplied by a fraction, the numerator of which is the number of calendar days between the grant date of the Time-Vested Award and the Eligible Executive’s Date of Termination, and the denominator of which is the total number of calendar days between the grant date of the Time-Vested Award and the final vesting date for the Time-Vested Award, over (y) the number of shares originally subject to the Time-Vested Award and already vested as of the Date of Termination; and 
(B)    with respect to any performance-vesting LTI award (each a “Performance-Vested Award”), a pro rata portion of that portion of the Performance-Vested Award that is earned based upon actual performance during the applicable performance period (but for the Eligible Executive’s termination), shall become vested, if at all, after the end of the applicable performance period during which performance is measured, such pro rata portion equal to the excess of (x) the total number of shares subject to the Performance-Vested Award that are earned based upon actual performance, multiplied by a fraction, the numerator of which is the number of calendar days between the grant date of the Performance-Vested Award and the Eligible Executive’s Date of Termination, and the denominator of which is total number of calendar days during the applicable performance period during which performance was measured, over (y) the number of shares originally subject to the Performance-Vested Award and already vested, if any, as of the Date of Termination. 
		
	4.
	Payment Timing of Benefits upon a Qualifying Termination.

(a)    Subject to the terms of this Plan, and less any applicable taxes:
(i)  amounts owed pursuant to Section 3(a)(i), 3(a)(iii) and Section 3(a)(iv) shall be paid in a lump sum as soon as administratively practicable (but in no event later than 90 days) after the Eligible Executive’s Date of Termination; and
(ii)  amounts owed pursuant to Section 3(a)(ii) shall be paid in substantially equal installments in accordance with the Company’s regular payroll practices over a period of twelve (12) months commencing as soon as administratively practicable (but in no event later than 90 days) after the Eligible Executive’s Date of Termination.

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(b)    Notwithstanding any other provision of this Plan, if the Eligible Executive is a Specified Employee on his or her Termination Date, any portion of the severance payment under this Plan which may constitute non-exempt “nonqualified deferred compensation” subject to Code Section 409A shall be delayed until the earlier of (i) the first business day after six-months following such Termination Date, as determined by the Company for the avoidance of penalties and/or excise taxes under Code Section 409A; or (ii) the date the Eligible Executive dies following such Termination Date. 
		
	5.
	Release and Adherence to Restrictive Covenants.  In consideration of and as a condition precedent to receiving any of the Severance Benefits under this Plan, the Eligible Executive shall (i) execute and deliver to the Company a release of all claims in such form as requested by the Company not later than twenty-two (22) calendar days following the Eligible Executive’s Date of Termination (or any such longer period if required by applicable law and communicated to the Eligible Executive), (ii) not revoke the release during the seven (7) calendar day period following the date that the Eligible Executive executed the release (or any such longer period if required by applicable law and communicated to the Eligible Executive), and (iii) adhere to and remain in compliance with the restrictive covenants set forth in Appendix A, each of which may apply for a period of time after the termination of the Eligible Executive’s employment as described therein.  For the avoidance of doubt, the Company is not required to provide any of the Severance Benefits under this Plan unless and until the Eligible Executive complies with the release execution and release nonrevocation requirements in the Plan. 

		
	6.
	Administration/Amendment/Termination.

(a)Administrator.  The Administrator has the sole discretionary authority to construe and interpret this Plan and to make any and all determinations related to administration of this Plan, including all questions of eligibility for participation and benefits, to the maximum extent permitted by law.  The decisions, actions and interpretations of the Administrator are final and binding on all parties.
(b)Amendment and Termination.  The Administrator expressly reserves the right to amend  or terminate this Plan, in whole or in part, at any time and in any way; provided, however, no amendment that materially reduces an Eligible Executive’s rights or potential benefits under this Plan nor any termination of this Plan may become effective with respect to an Eligible Executive before the 90th calendar day after such amendment or termination is approved by the Administrator, unless such amendment or termination is consented to in writing by the Eligible Executive then participating in this Plan.  
		
	7.
	Claims for Benefits.  Benefits under this Plan in connection with a Qualifying Termination and eligible to be paid will normally commence without any requirement that an Eligible Executive make a special claim for benefits.  In the event of any dispute as to whether benefits under this Plan are owed, or the amount of any such benefits, such dispute must be resolved through the Eligible Executive making a claim for such benefits and resolution occurring in accordance with the Claims Procedures set forth in Appendix B.  

		
	8.
	Mandatory Arbitration. 

(a)If the Company elects to terminate an Eligible Executive’s employment for Cause, the Company shall not be obligated to provide any Severance Benefits under this Plan.  If there shall be any dispute or contest between the Company and an Eligible Executive as to whether such termination was for Cause, or in the event of any dispute, claim, question or disagreement arising 

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from or relating to this Plan, then the resolution of such dispute or contest shall be finally determined by arbitration, which may be initiated by either the Company or the Eligible Executive, pursuant to the Federal Arbitration Act in accordance with the rules then in force of the American Arbitration Association.  The arbitration proceedings shall take place in Kansas City, Missouri or such other location as the parties in dispute hereafter may agree upon; and such proceedings will be conducted in the English language and shall be governed by the laws of the State of Missouri as such laws are applied to agreements between residents of the State entered into and to be performed entirely within the State.  There shall be one arbitrator, as shall be agreed upon by the parties in dispute.  In the absence of such agreement, each party in dispute shall select one arbitrator and the arbitrators so selected shall select a third arbitrator.  In the event the arbitrators cannot agree upon the selection of a third arbitrator, such third arbitrator shall be appointed by the American Arbitration Association at the request of any of the parties in dispute.  The arbitrator or arbitrators shall be individual(s) skilled in the legal and business aspects of the subject matter of this Plan and of the dispute.  The decision rendered by the arbitrator or arbitrators shall be accompanied by a written opinion in support thereof.  Such decision shall be final and binding upon the parties in dispute without right of appeal, it being the intent of the parties that such decision, and, irrespective of any contrary provision of the laws of the State respecting rights of appeal, such decision may not be appealed.  
(b)If the final and binding decision of the arbitrator(s) is in favor of the Eligible Executive, then the Eligible Executive shall receive all payments and benefits contemplated by this Plan, plus interest on any delayed payment or benefit at one hundred twenty percent (120%) of the Federal Short-Term Rate under Section 1274(d) of the Code.  In no event may the arbitrator or arbitrators award any consequential, punitive, special or other damages of any kind.  Notwithstanding the foregoing, nothing in this Plan is intended to, or shall be construed as, affecting the rights and obligations of the Eligible Executive and the Company to submit any dispute (other than such disputes contemplated by, and resolved in accordance with, this Plan ) to the appropriate dispute resolution process in accordance with any applicable dispute resolution plan intended to provide a procedural mechanism, whether exclusive or non-exclusive, for the resolution of any and all disputes between the Company and its present or former employees.
(c)Nothing in this Plan shall preclude the Eligible Executive from filing a charge of discrimination, or participating in an investigation, with the Equal Employment Opportunity Commission or comparable agency.  However, the Eligible Executive shall not and will not seek or accept any personal benefit from the Company, whether in monetary or other form, as part of or related to any proceeding initiated by any other person, agency or other governmental body of the United States or any other jurisdiction.
		
	9.
	Miscellaneous Provisions.

(a)Waiver.  The failure of the Company to enforce at any time any of the provisions of this Plan, or to require at any time performance of any of the provisions of this Plan, shall in no way be construed to be a waiver of these provisions, nor in any way to affect the validity of this Plan or any part thereof, or the right of the Company thereafter to enforce every provision.
(b)Benefits Not Transferable.  Except as may be required by law, no benefit eligible to be payable under this Plan to any Eligible Executive shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt to alienate, sell, transfer,  assign,  pledge,  encumber or charge all or any part of the benefit shall be void;  provided, however, that if a terminated Eligible Executive dies before the end of the period over which  such  Eligible  Executive  is  entitled  to  receive  Severance   Benefits  under  this  Plan,  the 

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Severance Benefits payable hereunder shall be paid to the estate of such Eligible Executive or to the person who acquired the rights to such benefits by bequest or inheritance (the “Beneficiary”), provided such Beneficiary satisfies the release requirements in this Plan.  Except as may be provided by law, no benefit shall in any manner be subject to the debts, contracts, liabilities, engagements or torts of any Eligible Executive, nor shall it be subject to attachment or legal process for, or against, the Eligible Executive and the same shall not be recognized under this Plan.
(c)Successors of the Company.  This Plan shall bind any successor of the Company, its assets or its businesses (whether direct or indirect, by purchase, merger, consolidation or otherwise), in the same manner and to the same extent that the Company would be obligated under this Plan if no succession had taken place.  In the case of any transaction in which a successor would not by the foregoing provision or by operation of law be bound by this Plan, the Company shall require such successor expressly and unconditionally to assume and agree to perform the Company’s obligations under this Plan, in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place. 
(d)No Contract of Employment.  The definitions and criteria set forth herein are solely for the purpose of defining Plan eligibility and benefits.  No legal rights to employment are created or implied by this Plan, nor are any conditions or restrictions hereby placed on termination of employment.  Unless the employee has a written employment agreement binding on the Company that provides otherwise, employment with the Company is “at will.”  As such, termination of employment may be initiated by the Eligible Executive or by the Company at any time for any reason that is not unlawful, with or without Cause.
(e)Governing Law.  To the extent not pre-empted by federal law, this Plan shall be construed, administered and governed in accordance with and governed by the laws of the State of Missouri, without regard to any conflict of law principles.  Subject to the mandatory arbitration provisions of this Plan and Appendix B, any action concerning this Plan shall be brought in a court of competent jurisdiction in Jackson County, Missouri, and each party consents to the venue and jurisdiction of such court.
(f)Entire Plan.  This Plan constitutes the Company’s entire plan for Eligible Executives who experience a Qualifying Termination and supersedes any and all previous representations, understandings and plans with respect to the same subject matter.
(g)Severability and Interpretation.  Whenever possible, each provision of this Plan and any portion hereof shall be interpreted in such a manner as to be effective and valid under applicable law, rules and regulations.  If any covenant or other provision of this Plan (or portion thereof) shall be held to be invalid, illegal or incapable of being enforced, by reason of any rule of law, rule, regulation, administrative order, judicial decision or public policy, all other conditions and provisions of this Plan shall, nevertheless, remain in full force and effect, and no covenant or provision shall be deemed dependent upon any other covenant or provision (or portion) unless so expressed herein.  The court or other body making such determination shall, to the extent necessary to avoid any unenforceability, so reform such covenant or other provision or portion of this Plan to the minimum extent necessary so as to render the same enforceable in accordance with the intent herein expressed.
(h)No Mitigation Required.  The Eligible Executive shall not be required to seek other employment, and the amount of any payment or benefit provided for under this Plan will not be reduced by any compensation earned by the Eligible Executive as the result of employment by another employer after the date of termination, or otherwise.

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(i)Prohibition of Payments by Regulatory Agencies.  Notwithstanding anything to the contrary contained in this Plan, the Company shall not be obligated to make any payment to an Eligible Executive under this Plan if the payment would violate any rule, regulation or order of any regulatory agency having jurisdiction over the Company.  
(j)Validity.  If any provision of this Plan is held invalid, void or unenforceable, the same shall not affect, in any respect whatsoever, the validity of any other provision of this Plan.
(k)Captions and Titles.  Captions and titles have been used in this Plan only for convenience, and in no way define, limit or describe the meaning of this Plan or any part thereof.
(l)Section 409A Savings Clause.  This Plan is intended to comply with the provisions of Section 409A of the Code, including the exceptions for short-term deferrals, separation pay arrangements, reimbursements and in-kind distributions, and shall be administered and interpreted in accordance with such intent.  Without limiting the generality of the foregoing, any term or provision that is determined by the Administrator to have an ambiguous definition shall be interpreted, to the extent reasonable, to comply with Section 409A of the Code.  Any reference in this Plan to a “termination of employment” or similar term or phrase shall be interpreted as a “separation from service” within the meaning of Section 409A of the Code.  Each payment (including each installment payment) under this Plan shall be treated as a separate payment for purposes of Section 409A of the Code.  In no event may an Eligible Executive, directly or indirectly, designate the calendar year of any payment to be made under this Plan.  All reimbursements and in-kind benefits, including any taxable health, dental and vision benefits provided under this Plan that constitute deferred compensation within the meaning of Section 409A of the Code shall be made or provided in accordance with the requirements of Section 409A of the Code, including, without limitation, that (i) in no event shall reimbursements by the Company under this Plan be made later than the end of the calendar year next following the calendar year in which the applicable fees and expenses were incurred, provided that the Eligible Executive shall have submitted an invoice for such fees and expenses at least ten (10) calendar days before the end of the calendar year next following the calendar year in which such fees and expenses were incurred; (ii) the amount of in-kind benefits that the Company is obligated to pay or provide in any given calendar year (other than medical reimbursements described in Treas. Reg. Section 1.409A-3(i)(1)(iv)(B)) shall not affect the in-kind benefits that the Company is obligated to pay or provide in any other calendar year; (iii) the Eligible Executive’s right to have the Company pay or provide such reimbursements and in-kind benefits may not be liquidated or exchanged for any other benefit; and (iv) in no event shall the Company’s obligations to make such reimbursements or to provide such in-kind benefits apply later than the end of the third year following the year in which the Eligible Executive’s Termination Date occurred.
(m)Clawback.  Notwithstanding any other provisions of this Plan, any benefits paid or provided under this Plan that is subject to recovery under any law, government regulation or Company policy will be subject to deduction and clawback as may be required by any such law, regulation or policy.  In addition, if the Company becomes aware, after the Eligible Executive’s Termination Date, of conduct on the part of the Eligible Executive while employed that would be grounds for a termination of employment for Cause, or the Eligible Executive violates the terms and conditions of this Plan, then the Committee may (i) cause the Company to terminate providing Severance Benefits under this Plan and/or (ii) recoup from Eligible Executive any amount, or the value of any Severance Benefit, that was paid or provided to the Eligible Executive under this Plan or any other Company compensatory arrangement in which Eligible Executive participates, as permitted by law.

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(n)Nonduplication of Benefits.  Notwithstanding anything in this Plan to the contrary, an Eligible Executive is only entitled to the benefits of this Plan, if at all, if the Eligible Executive is not also receiving or making a claim for benefits under the Eligible Executive’s CIC Agreement. In the event that the Eligible Executive is also eligible to receive benefits under any other Company-sponsored severance policy, plan or program, the benefits of this Plan shall be the only benefits available to the Eligible Executive, and the Eligible Executive shall not be entitled to benefits under any other severance policy, plan or program.  No duplication of benefits is intended or allowed. 
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APPENDIX A
RESTRICTIVE COVENANTS UNDER THE EVERGY, INC. EXECUTIVE SEVERANCE PLAN
Subject to the conditions and limitations of this Plan, an Eligible Executive who experiences a Qualifying Termination shall be entitled to receive Severance Benefits under this Plan only if the Eligible Executive executes a release agreement and waiver of claims provided by the Company.  The Eligible Executive will also be subject to the restrictive  covenants set forth below.   All capitalized terms used herein and not otherwise defined shall have the definitions ascribed to them in this Plan.
A.1.    Nondisclosure of Confidential Information.  Each Eligible Executive shall hold in confidence for the benefit of the Company all Confidential Information.  By receiving Severance Benefits under this Plan, each Eligible Executive agrees that Eligible Executive will not disclose any Confidential Information to any person or entity other than the Company and those designated by it, either during or subsequent to the Eligible Executive’s employment by the Company,  nor will the Eligible Executive use any Confidential Information, except (i) in the regular course of the Eligible Executive’s employment by the Company, without the prior written consent of the Company or (ii) as may otherwise be required by law or legal process.
A.2.    Actions Upon Termination; Assistance with Claims.  Upon the Eligible Executive’s employment termination for whatever reason, the Eligible Executive shall neither take or copy nor allow a third party to take or copy, and shall deliver to the Company all property of the Company, including,  but not limited to, all Confidential Information regardless of the medium (i.e., hard copy, computer disk, CD ROM, USB flash drive, email, external hard drive) on which the information is contained.  During and after the Eligible Executive’s employment by the Company, the Eligible Executive will provide reasonable assistance to the Company in the defense of any claims or potential claims that may be made or threatened to be made against the Company in any action, suit, or proceeding, whether civil, criminal, administrative, or investigative (“Proceeding”) and will provide reasonable assistance to the Company in the prosecution of any claims that may be made by the Company in any Proceeding,  to the extent that such claims may relate to the Eligible Executive’s employment by the Company.  For the avoidance of doubt, reasonable assistance would not include the Eligible Executive being required to provide information that could reasonably result in criminal or civil charges or penalties being assessed or imposed against Executive in his or her individual capacity.  Executive shall, unless precluded by law, promptly inform the Company if the Eligible Executive is asked to participate (or otherwise become involved) in any Proceeding involving such claims or potential claims.   The Eligible Executive also shall, unless precluded by law,   promptly inform the Company if the Eligible Executive is asked to assist in any investigation (whether governmental or private) of the Company (or its actions), regardless of whether a lawsuit has then been filed against the Company with respect to such investigation.  
A.3.    Limitations on Confidentiality and Nondisclosure.  Notwithstanding any other provision in this Plan to the contrary, nothing in this Appendix A or this Plan prohibits an Eligible Executive from (i) reporting  possible violations of federal or state law or regulation to any government agency or entity, including the EEOC, DOL, Department of Justice, Securities and Exchange Commission, Department of Defense, Congress and any agency Inspector General (“Governmental Agencies”), (ii) communicating with any Government Agencies or otherwise participating in any investigation or proceedings that may be conducted by any Governmental Agency, including providing documents or other information,  without notice to the Company,  or  (iii)  making other disclosures that are protected under the  whistleblower provisions of applicable law.  An Eligible Executive shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (x) is made in confidence to a federal, state or local government official, either directly or indirectly, or to any attorney, and is made solely for the purpose of reporting or investigating a suspected violation of law or (y) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding.  An individual who files a lawsuit for 

retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the individual’s attorney and use the trade secret information in the court proceeding if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.
A.4.    Nonsolicitation of Employees.  During  the  Eligible Executive’s employment and for a period of twelve  (12)  months thereafter,  the Eligible Executive shall not,  without the consent of the Company, directly or indirectly solicit any current employee of the Company, to leave such employment and join or become affiliated with any business that is in direct competition with the business conducted by the Company within the Geographic Area.
A.5.    Non-disparagement.  The  Eligible  Executive shall refrain from making any statements about the Company or its officers or directors that would disparage, or reflect unfavorably upon the image or reputation of the Company or any such officer or director.  
A.6.    Irreparable Harm; Remedies.  Each Eligible Executive acknowledges that: (i) the Eligible Executive’s compliance with this Appendix A is necessary to preserve and protect the Confidential Information, and the goodwill of the Company as going concerns; (ii) any failure by the Eligible Executive to comply with the provisions of this Appendix A may result in irreparable and continuing injury for which there may be no adequate remedy at law; and (iii) in the event that the Eligible Executive should fail to comply with the terms and conditions of this Appendix A,  the Company shall be entitled,  in addition to such other relief as may be proper, to seek all types of equitable relief (including, but not limited to, the issuance of an injunction and/or temporary restraining order) as may be necessary to cause the Eligible Executive to comply with this Appendix A,   to restore to the Company its property,  and  to make the Company whole.
A.7.    Unenforceability.  If any provision(s) of this Appendix A or this Plan shall be found invalid or unenforceable, in whole or in part, then such provision(s) shall be deemed to be modified or restricted to the extent and in the manner necessary to render the same valid and enforceable, or shall be deemed excised from this Appendix A or this Plan, as the case may require, and this Appendix A and this Plan shall be construed and enforced to the maximum extent permitted by law, as if such provision(s) had been originally incorporated herein as so modified or restricted, or as if such provision(s)  had  not  been originally incorporated herein, as the case may be.
A.8.    Company’s Right to Notify Subsequent Employers.  The Company may do all necessary things, and take all necessary action, in the Company’s discretion, to protect its rights under this Plan, including,  without limitation,  notifying any subsequent employer, partner or business associate of the Eligible Executive of the existence of (and furnishing to any such person) the provisions of this Appendix A.
A.9.    Other Agreements.  The Eligible Executive hereby represents that the Eligible Executive’s employment with the Company will not breach the terms of any agreement with any previous employer or other third party including, without limitation, any requirement to refrain from directly or indirectly competing with the business or soliciting the customers of such previous employer or any other party.  The Eligible Executive further represents that the Eligible Executive’s performance as an employee of the Company does not and will not breach any agreement to keep in confidence proprietary information, knowledge or data acquired by the  Eligible  Executive  in  confidence or in trust before the  Eligible Executive’s employment with Company.  The Eligible Executive agrees not to disclose to the Company or induce the Company to use any confidential proprietary information or material belonging to any previous employers or others.

APPENDIX B 
CLAIMS PROCEDURES
A request for a Plan benefit shall be filed with the Chairperson of the Committee or his or her designee, on a form prescribed by the Committee.  Such a request, hereinafter referred to as a “claim,” will be deemed filed when the executed claim form is received by the Chairperson of the Committee or his or her designee.
The Chairperson of the Committee or his or her designee shall decide such a claim within a reasonable time after it is received.  If a claim is wholly or partially denied, the claimant will be furnished a written notice setting forth, in a manner calculated to be understood by the claimant:
		
	(a)
	The specific reason or reasons for the denial; 

		
	(b)
	A specific reference to pertinent Plan provisions on which the denial is based; 

		
	(c)
	A description of any additional material or information necessary for the claimant to perfect the claim, along with an explanation of why such material or information is necessary; and 

		
	(d)
	Appropriate information as to the steps to be taken if the claimant wishes to appeal his or her claim, including the period in which the appeal must be filed and the period in which it will be decided.

 
The notice will be furnished to the claimant within 90 calendar days after receipt of the claim by the Chairperson of the Committee or his or her designee, unless special circumstances require an extension of time for processing the claim.   No extension will be for more than 90 calendar days after the end of the initial 90-calendar day period.  If an extension of time for processing is required, written notice of the extension  will  be furnished to the claimant before the end of the initial 90-calendar day period.   The extension notice will indicate  the  special circumstances requiring an extension of time and the date by which a final decision will be rendered.
If a claim is denied, in whole or in part, the claimant may appeal the denial to the full Committee, upon written notice to the Chairperson thereof.  The claimant may review documents pertinent to the appeal and may submit issues and comments in writing to the Committee.  No appeal will be considered unless it is received by the Committee within 90 calendar days after receipt by the claimant of written notification of denial of the claim.  The Committee shall decide the appeal within 60 calendar days after it is received.  However, if special circumstances require an extension of time for processing, a decision will be rendered as soon as possible, but not later than 120 calendar days after the appeal is received.  If such an extension of time for deciding the appeal is required, written notice of the extension shall be furnished to the claimant before the commencement of the extension.  The Committee’s decision will be in writing and will include specific reasons for the decision, written in a manner calculated to be understood by the claimant,  and specific references to the pertinent Plan provisions upon which the decision is based.    

EVERGY, INC. EXECUTIVE SEVERANCE PLAN

ACKNOWLEDGMENT AND ACCEPTANCE OF
THE TERMS AND CONDITIONS OF THE PLAN

Evergy, Inc. (“Evergy”) has established the Evergy, Inc. Executive Severance Plan (the “Plan”).  The Plan provides severance payments and benefits to certain eligible executives in the event of a Qualifying Termination (as defined in the Plan).  You are eligible to participate in the Plan.

By the signatures below of the representative of Evergy and the Eligible Executive named herein, the Company (as defined in the Plan) and the Eligible Executive agree that the Company hereby designates the Eligible Executive as eligible to participate in the Plan, and the Eligible Executive hereby acknowledges and accepts such participation, subject to the terms and conditions of the Plan, and agrees to the terms of the Plan, which is attached hereto and made a part hereof.

Name of Eligible Executive: «FirstName» «LastName»
Date of Eligibility and Participation: «Date»

At Will Employment.  Nothing in this Acknowledgment and Acceptance or in the Plan confers upon the Eligible Executive any right to continue in employment for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company or of the Eligible Executive, which rights are  hereby  expressly  reserved  by each,  terminate  the  Eligible   Executive’s  employment at  any time for any reason.

Amendment and Termination of Plan.  The Company reserves the right, on a case-by-case basis or on a general basis, to amend or terminate the Plan in accordance with the terms of the Plan.  No amendment or termination shall eliminate or reduce any benefit with respect to any Eligible Executive who experiences a Qualifying Termination that occurs on or before such amendment or termination becomes effective.

Nonduplication of Benefits under Change in Control Agreement.  The Eligible Executive agrees that the Eligible Executive is only entitled to the benefits of this Plan, if at all, if the Eligible Executive is not also receiving or making a claim for benefits under the Eligible Executive’s CIC Agreement.  In the event that the Eligible Executive is also eligible to receive benefits under any other Company-sponsored severance policy, plan or program, the Eligible Executive agrees that the benefits of this Plan shall be the only benefits available to the Eligible Executive, and the Eligible Executive shall not be entitled to benefits under any other severance policy, plan or program.  No duplication of benefits is intended or allowed.

	
			
	Eligible Executive:
	 
	Evergy, Inc.

	By:________________________
	 
	By:____________________

	Name:_____________________
	 
	Name:__________________

	 
	 
	Title:___________________

Attachment:
Evergy, Inc. Executive Severance PlanExhibit 4.1

 

NEITHER THIS SECURITY
NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR
THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE
TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES
ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY
SUCH SECURITIES.

 

Original Issue Date: [__________]

 

Principal Amount: $[________]

 

SENIOR
SECURED CONVERTIBLE PROMISSORY NOTE

 

DUE
December 31, 2020

 

THIS SENIOR SECURED
CONVERTIBLE PROMISSORY NOTE is a duly authorized and validly issued debt obligation of Telemynd, Inc., a Delaware corporation (the
“Company” or the “Borrower”), having its principal place of business at 26522 La Alameda,
Mission Viejo, CA 92691, designated as its Senior Secured Convertible Promissory Note due December 31. 2020 (the “Note”).

 

FOR VALUE RECEIVED,
the Company promises to pay to [__________] or its registered assigns (the “Holder”), or shall have paid
pursuant to the terms hereunder, the principal sum of $[_______], Late Fees, and any other sums due hereunder on December 31, 2020
(the “Maturity Date”) or such earlier date as this Note is required or permitted to be repaid as provided hereunder,
and to pay interest to the Holder on the aggregate unconverted and then outstanding principal amount of this Note in accordance
with the provisions hereof. This Note is subject to the following additional provisions:

 

Section 1. Definitions.
For the purposes hereof, in addition to the terms defined elsewhere in this Note, (a) capitalized terms not otherwise defined herein
shall have the meanings set forth in the Purchase Agreement and (b) the following terms shall have the following meanings:

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which the New York Federal Reserve Bank is closed.

 

     

     

    

 

“Change
of Control Transaction” means the occurrence after the date hereof of any of (a) an acquisition after the date hereof
by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) of
effective control (whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of
in excess of fifty percent (50%) of the voting securities of the Company (other than by means of conversion or exercise of the
Note and the Securities issued together with the Note), (b) the Company merges into or consolidates with any other Person, or any
Person merges into or consolidates with the Company and, after giving effect to such transaction, the stockholders of the Company
immediately prior to such transaction own less than fifty-one percent (51%) of the aggregate voting power of the Company or the
successor entity of such transaction, (c) the Company sells or transfers all or substantially all of its assets to another Person
and the stockholders of the Company immediately prior to such transaction own less than fifty-one percent (51%) of the aggregate
voting power of the acquiring entity immediately after the transaction, (d) a replacement at one time or within a three year period
of more than one-half of the members of the Board of Directors which is not approved by a majority of those individuals who are
members of the Board of Directors on the Original Issue Date (or by those individuals who are serving as members of the Board of
Directors on any date whose nomination to the Board of Directors was approved by a majority of the members of the Board of Directors
who are members on the date hereof), or (e) the execution by the Company of an agreement to which the Company is a party or by
which it is bound, providing for any of the events set forth in clauses (a) through (d) above.

 

“Conversion
Price” means 70% of the average per share price paid by investors for the first $3,000,000 of the Qualified Financing.

 

“Conversion
Securities” means shares of the Company’s equity securities issued in the Qualified Financing

 

“Delaware
Courts” shall have the meaning set forth in Section 7(d).

 

“Distribution”
shall have the meaning set forth in Section 5(c).

 

“Event
of Default” shall have the meaning set forth in Section 6(a).

 

“Late
Fees” shall have the meaning set forth in Section 2(b).

 

“Mandatory
Default Amount” means either, at the Holder’s discretion (i) the conversion of the outstanding principal amount
of this Note, plus all accrued and unpaid interest hereon, converted at the Alternate Conversion Price or (ii) the payment of 125%
of the outstanding principal amount of this Note and accrued and unpaid interest hereon, in addition to, for both (i) and (ii)
above, the payment of all other amounts, costs, expenses and liquidated damages due in respect of this Note.

 

“Note
Register” shall have the meaning set forth in Section 2(c).

 

    1

     

    

 

“Original
Issue Date” means the date of the first issuance of the Note, regardless of any transfers of any Note and regardless
of the number of instruments which may be issued to evidence such Note.

 

“Purchase
Agreement” means the Securities Purchase Agreement, dated as of [_________], among the Company and the original Holder,
as amended, modified or supplemented from time to time in accordance with its terms.

 

“Purchase
Rights” shall have the meaning set forth in Section 5(b).

 

“Qualified
Financing” means the first sale of the Company’s equity securities after the date hereof in a transaction or related
series of transactions resulting in aggregate gross proceeds to the Company of at least $3,000,000, excluding the aggregate principal
balance and accrued but unpaid interest converted pursuant to the terms of the Notes (as “Notes” is defined in Section
4(b) below).

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Subsidiary”
means, with respect to any person, a corporation, partnership, limited liability company or other entity of which shares of stock
or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power
only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation,
partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through
one or more intermediaries, or both, by such Person all of the Company’s Subsidiaries are set forth on Schedule 3.1(a) to
Purchase Agreement.

 

Section 2. Interest,
Prepayment and Conversion.

 

a) Payment
of Interest in Cash. Subject to Section 2(b) and Section 6, the Company shall pay interest to the Holder
on the aggregate unconverted and then outstanding principal amount of this Note at the rate of twelve percent (12%) per annum.

 

b) Late
Fee. Upon the occurrence and during the continuance of an Event of Default, the Company shall pay a late fee in cash to the
Holder on the aggregate unconverted and then outstanding principal amount of this Note at an interest rate equal to the lesser
of eighteen percent (18%) per annum or the maximum rate permitted by applicable law (the “Late Fees”) which
shall accrue daily from the date of the occurrence and during the continuance of such Event of Default hereunder through and including
the date of actual payment in full. Interest hereunder will be paid to the Person in whose name this Note is registered on the
records of the Company regarding registration and transfers of this Note (the “Note Register”).

 

c) Amortization
Payments. The aggregate unconverted and then outstanding principal amount of this Note shall be due and payable at the Maturity
Date, or if earlier, within three (3) Business Days after the consummation of a Qualified Offering.

 

    2

     

    

 

d) Prepayment.
So long as no Event of Default has occurred or is continuing, this Note may be prepaid at any time prior to the Maturity Date without
premium or penalty.

 

Section 3. Registration
of Transfers and Exchanges.

 

a) Different
Denominations. This Note is exchangeable for an equal aggregate principal amount of notes of different authorized denominations,
as requested by the Holder surrendering the same. No service charge will be payable for such registration of transfer or exchange.

 

b) Investment
Representations. This Note has been issued subject to certain investment representations of the original Holder set forth in
the Purchase Agreement and may be transferred or exchanged only in compliance with the Purchase Agreement and applicable federal
and state securities laws and regulations.

 

c) Reliance
on Note Register. Prior to due presentment for transfer to the Company of this Note, the Company and any agent of the Company
may treat the Person in whose name this Note is duly registered on the Note Register as the owner hereof for the purpose of receiving
payment as herein provided and for all other purposes, whether or not this Note is overdue, and neither the Company nor any such
agent shall be affected by notice to the contrary.

 

Section 4. Conversion.

 

		a)	Automatic Conversion Upon Qualified Financing. At the closing of a Qualified Financing,
the outstanding principal and accrued but unpaid interest of this Note shall be automatically converted into the number of fully
paid and non-assessable shares of Conversion Securities equal to the unpaid principal, together with the balance of unpaid and
accrued interest and other amounts payable hereunder, divided by the Conversion Price. The Holder, by acceptance of this Note,
agrees with the Company that, if this Note is converted pursuant to this Section 4(a), then, as a condition to issuance of the
Conversion Securities, the Holder shall deliver the original of this Note to the Company with appropriate endorsements at the closing
of the Qualified Financing and shall execute and deliver to the Company a stock purchase agreement, together with all standard
and customary documents relating thereto (“Financing Agreements”); provided, however, this Note shall for all purposes
be deemed paid and cancelled regardless of whether the Holder delivers the original of this Note or approves or executes the Financing
Agreements.

 

		b)	Conversion upon Change of Control In the event of a Change of Control Transaction before the Maturity Date, the Company
will provide at least five (5) days’ prior written notice to Holder of such Change of Control Transaction and will pay an
amount to Holder equal to the greater of (i) the outstanding principal amount of and accrued interest on this Note, and (ii) the
amount Holder would receive if this Note, including accrued interest, were converted immediately prior to such Change of Control
into that number of shares of the Company’s Common Stock at a conversion price obtained by dividing $3,000,000 plus the value
of all Notes issued under the Purchase Agreement (the “Notes”) by the aggregate number of outstanding shares of the
Company’s Common Stock as of the date immediately prior to such Change of Control (assuming full conversion or exercise of
all convertible and exercisable securities then outstanding other than the Notes).

 

    3

     

    

 

The amount payable pursuant to the immediately preceding
paragraph will be due and payable by the Company to the Holder immediately prior to, or concurrent with, the consummation of the
Change of Control.

 

		c)	Optional Conversion 

 

i. Upon Subsequent Equity Financing.
At the closing of a sale of the Company’s equity securities after the date hereof, the outstanding principal and accrued
but unpaid interest of this Note may be converted (at the option of the Holder) into the number of fully paid and non-assessable
shares of Conversion Securities equal to the unpaid principal, together with the balance of unpaid and accrued interest and other
amounts payable hereunder, divided by the Conversion Price. The Holder, by acceptance of this Note, agrees with the Company that,
if this Note is converted pursuant to this Section 4(c), then, as a condition to issuance of the Conversion Securities, the Holder
shall deliver the original of this Note to the Company with appropriate endorsements at the closing of such subsequent equity financing
and shall execute and deliver to the Company the Financing Agreements; provided, however, this Note shall for all purposes be deemed
paid and cancelled regardless of whether the Holder delivers the original of this Note or approves or executes the Financing Agreements.

 

ii. Upon Maturity Date. If,
on the Maturity Date, the Note has not been converted pursuant to the terms herein, the outstanding principal and accrued but unpaid
interest of this Note will, upon the written request of the Holder, convert into that number of shares of the Company’s Common
Stock at a conversion price (the “Optional Conversion Price”) obtained by dividing $3,000,000 plus the value of all
Notes issued under the Purchase Agreement by the aggregate number of outstanding shares of the Company’s Common Stock as
of the date immediately prior to the Maturity Date (assuming full conversion or exercise of all convertible and exercisable securities
then outstanding other than the Notes).

 

d) Conversion Procedure.

 

i. Fractional Shares. The
Company will not be required to issue fractional securities upon the conversion hereof or to distribute certificates that evidence
fractional securities, nor will the Company be required to make any cash payments in lieu of fractional securities otherwise issuable
upon the conversion hereof. The Holder hereby waives any right to receive fractional securities in connection with the conversion
hereof.

 

    4

     

    

 

ii. Fully Paid Shares. Upon
conversion of this Note pursuant hereto, all securities issuable upon conversion of this Note will be fully paid and non-assessable.

 

iii. Original Note. Upon conversion
of this Note pursuant hereto, the Holder by acceptance of this Note agrees to deliver the executed original of this Note to the
Company within ten (10) business days of receipt by Holder of notice from the Company of such conversion and this Note shall for
all purposes be deemed paid and cancelled.

 

Section 5. Certain
Adjustments.

 

a) Subsequent
Rights Offerings. In addition to any adjustments pursuant to Section 5(a) above, if at any time the Company grants,
issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the
record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled
to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired
if the Holder had held the number of shares of Common Stock (based on the Optional Conversion Price) acquirable upon complete conversion
of this Note immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or,
if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant,
issue or sale of such Purchase Rights .

 

b) Pro
Rata Distributions. During such time as this Note is outstanding, if the Company shall declare or make any dividend or other
distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital
or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of
a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”),
at any time after the issuance of this Note, then, in each such case, the Holder shall be entitled to participate in such Distribution
to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock
acquirable upon complete exercise of this Note immediately before the date of which a record is taken for such Distribution (based
on the Optional Conversion Price), or, if no such record is taken, the date as of which the record holders of shares of Common
Stock are to be determined for the participation in such Distribution.

 

c) Calculations.
All calculations under this Section 5 shall be made to the nearest cent or the nearest 1/100th of a share, as the case
may be. For purposes of this Section 5, the number of shares of Common Stock deemed to be issued and outstanding as
of a given date shall be the sum of the number of shares of Common Stock (excluding any treasury shares of the Company) issued
and outstanding.

 

    5

     

    

 

d) Notice
to the Holder.

 

i. Adjustment
to Conversion Price. Whenever the Conversion Price is adjusted pursuant to any provision of this Section 5, the
Company shall promptly deliver to each Holder a notice setting forth the Conversion Price after such adjustment and setting forth
a brief statement of the facts requiring such adjustment.

 

ii. Notice
to Allow Conversion by Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on
the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C)
the Company shall authorize the granting to all holders of the Common Stock of rights or warrants to subscribe for or purchase
any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required
in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale
or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock
is converted into other securities, cash or property or (E) the Company shall authorize the voluntary or involuntary dissolution,
liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be filed at each office
or agency maintained for the purpose of conversion of this Note, and shall cause to be delivered to the Holder at its last address
as it shall appear upon the Note Register, at least twenty (20) calendar days prior to the applicable record or effective date
hereinafter specified (or such shorter period as is reasonably possible, but not less than ten (10) calendar days, if twenty (20)
calendar days is not reasonably possible), a notice stating (x) the date on which a record is to be taken for the purpose of such
dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of
the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined
or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective
or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their
shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger,
sale, transfer or share exchange, provided that the failure to deliver such notice or any defect therein or in the delivery thereof
shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided
hereunder constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company
shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled
to convert this Note during the 20-day period commencing on the date of such notice through the effective date of the event triggering
such notice except as may otherwise be expressly set forth herein.

 

    6

     

    

 

Section 6. Events
of Default.

 

a) “Event
of Default” means, wherever used herein, any of the following events (whatever the reason for such event and whether
such event shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any
court, or any order, rule or regulation of any administrative or governmental body):

 

i. any default
in the payment of (A) the principal amount of any Note or (B) interest, liquidated damages and other amounts owing to a Holder
on any Note, as and when the same shall become due and payable (whether on a Conversion Date or the Maturity Date or by acceleration
or otherwise) which default, solely in the case of an interest payment or other default under clause (B) above, is not cured within
three (3) Business Days;

 

ii. the Company
shall fail to observe or perform any other covenant or agreement contained in the Note which failure is not cured, if possible
to cure, within the earlier to occur of (A) five (5) Business Days after notice of such failure sent by the Holder or by any other
Holder to the Company and (B) ten (10) Business Days after the Company has become or should have become aware of such failure;

 

iii. a default
or event of default (subject to any grace or cure period provided in the applicable agreement, document or instrument) shall occur
under any of the Transaction Documents;

 

iv. any representation
or warranty made in this Note or any other Transaction Documents shall be untrue or incorrect in any material respect as of the
date when made or deemed made;

 

v. the Company
shall be a party to any Change of Control Transaction or shall agree to sell or dispose of all or in excess of fifty percent (50%)
of its assets in one transaction or a series of related transactions (whether or not such sale would constitute a Change of Control
Transaction and, in either case, the Note is not repaid in connection with such transaction in accordance with Section 2(d)(i)
hereof;

 

vi. the Company
shall fail for any reason to deliver certificates in accordance with Section 4, or the Company shall provide at any
time notice to the Holder, including by way of public announcement, of the Company’s intention to not honor requests for
conversions of the Note in accordance with the terms hereof;

 

    7

     

    

 

vii. if the
Borrower or any Subsidiary shall: (i) apply for or consent to the appointment of a receiver, trustee, custodian or liquidator of
it or any of its properties; (ii) admit in writing its inability to pay its debts as they mature; (iii) make a general assignment
for the benefit of creditors; (iv) be adjudicated a bankrupt or insolvent or be the subject of an order for relief under Title
11 of the United States Code or any bankruptcy, reorganization, insolvency, readjustment of debt, dissolution or liquidation law
or statute of any other jurisdiction or foreign country; or (v) file a voluntary petition in bankruptcy, or a petition or an answer
seeking reorganization or an arrangement with creditors or to take advantage or any bankruptcy, reorganization, insolvency, readjustment
of debt, dissolution or liquidation law or statute, or an answer admitting the material allegations of a petition filed against
it in any proceeding under any such law, or (vi) take or permit to be taken any action in furtherance of or for the purpose of
effecting any of the foregoing;

 

viii. if any
order, judgment or decree shall be entered, without the application, approval or consent of the Borrower or any Subsidiary, by
any court of competent jurisdiction, approving a petition seeking liquidation or reorganization of the Borrower or any Subsidiary,
or appointing a receiver, trustee, custodian or liquidator of the Borrower or any Subsidiary, or of all or any substantial part
of its assets, and such order, judgment or decree shall continue unstayed and in effect for any period of sixty (60) days;

 

ix. the occurrence
of any levy upon or seizure or attachment of, or any uninsured loss of or damage to, any property of the Borrower or any Subsidiary
having an aggregate fair value or repair cost (as the case may be) in excess of $100,000 individually or in the aggregate, and
any such levy, seizure or attachment shall not be set aside, bonded or discharged within forty-five (45) days after the date thereof;

 

x. the Company
shall fail to maintain sufficient reserved shares pursuant to the terms hereof and of the Purchase Agreement;

 

xi. any monetary
judgment, writ or similar final process shall be entered or filed against the Company, any Subsidiary or any of their respective
property or other assets for more than $100,000, and such judgment, writ or similar final process shall remain unvacated, unbonded
or unstayed for a period of forty-five (45) calendar days; or

 

xii. prior
to the payment in full and satisfaction of the owed under this Note, any security interest and Lien purported to be created by
any Transaction Document shall cease to be in full force and effect, or shall cease to give the Holders, the Liens, rights, powers
and privileges purported to be created and granted under such Transaction Documents (including a perfected first priority security
interest in and Lien on all of the Collateral thereunder (except as otherwise expressly provided in such Transaction Document))
in favor of the Holders, or shall be asserted by the Company or any Affiliate(s) not to be a valid, perfected, first priority (except
as otherwise expressly provided in this Agreement or any such Transaction Document) security interest in or Lien on the Collateral
covered thereby.

 

    8

     

    

 

b) Remedies
Upon Event of Default. If any Event of Default occurs, the Company shall have five (5) days to cure such Event of Default.
If following the five (5) day period the Event of Default remains, then the outstanding principal amount of this Note, plus accrued
but unpaid interest, liquidated damages and other amounts owing in respect thereof through the date of acceleration, shall become,
at the Holder’s election, immediately due and payable in cash pursuant to clause (ii) of the Mandatory Default Amount. Commencing
5 days after the occurrence of any Event of Default that results in the eventual acceleration of this Note, the interest rate on
this Note shall accrue without duplication at an additional interest rate equal to the lesser of one and half percent (1.5%) per
month (18% per annum) or the maximum rate permitted under applicable law. Upon the payment in full of the Mandatory Default Amount,
the Holder shall promptly surrender this Note to or as directed by the Company. In connection with such acceleration described
herein, the Holder need not provide, and the Company hereby waives, any presentment, demand, protest or other notice of any kind,
and the Holder may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder
and all other remedies available to it under applicable law. Such acceleration may be rescinded and annulled by Holder at any time
prior to payment hereunder and the Holder shall have all rights as a holder of the Note until such time, if any, as the Holder
receives full payment pursuant to this Section 6(b). No such rescission or annulment shall affect any subsequent Event
of Default or impair any right consequent thereon. No such rescission or annulment shall affect any subsequent Event of Default
or impair any right consequent thereon; and in addition to any other rights and remedies available to the Holder in an Event of
Default, the Conversion Price in effect on any Conversion Date shall be equal to the Optional Conversion Price without any notice
or any action taken by the Holder.

 

Section 7. Miscellaneous.

 

a) Notices.
Any and all notices or other communications or deliveries to be provided by the Holder hereunder, including, without limitation,
any Notice of Conversion, shall be in writing and delivered personally, by facsimile, or sent by a nationally recognized overnight
courier service, addressed to the Company, at the address set forth above, or such other facsimile number or address as the Company
may specify for such purposes by notice to the Holder delivered in accordance with this Section 7(a). Any and all notices
or other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by
facsimile, or sent by a nationally recognized overnight courier service addressed to each Holder at the facsimile number or address
of the Holder appearing on the books of the Company, or if no such facsimile number or address appears on the books of the Company,
at the principal place of business of such Holder, as set forth in the Purchase Agreement. Any notice or other communication or
deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto prior to 5:30 p.m. (New York
City time) on any date, (ii) the next Business Day after the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Business Day or later
than 5:30 p.m. (New York City time) on any Business Day, (iii) the second Business Day following the date of mailing, if sent by
U.S. nationally recognized overnight courier service or (iv) upon actual receipt by the party to whom such notice is required to
be given.

 

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b) Absolute
Obligation. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the principal of, liquidated damages and accrued interest, as applicable, on this Note
at the time, place, and rate, and in the coin or currency, herein prescribed. This Note is a direct debt obligation of the Company.
This Note ranks pari passu with all other Notes now or hereafter issued under the terms set forth herein.

 

c) Lost
or Mutilated Note. If this Note shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in exchange
and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or destroyed
Note, a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed, but only upon receipt of evidence
of such loss, theft or destruction of such Note, and of the ownership hereof, reasonably satisfactory to the Company.

 

d) Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by
and construed and enforced in accordance with the internal laws of the State of Delaware, without regard to the principles of conflict
of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense of the transactions
contemplated by any of the Transaction Documents (whether brought against a party hereto or its respective Affiliates, directors,
officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting in the County of New Castle,
State of Delaware (the “Delaware Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction
of the Delaware Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction
of such Delaware Courts, or such Delaware Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably
waives personal service of process and consents to process being served in any such suit, action or proceeding 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 Note 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 applicable law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all
right to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions contemplated hereby.
If any party shall commence an action or proceeding to enforce any provisions of this Note, then the prevailing party in such action
or proceeding shall be reimbursed by the other party for its attorneys’ fees and other costs and expenses incurred in the
investigation, preparation and prosecution of such action or proceeding.

 

    10

     

    

 

e) Waiver.
Any waiver by the Company or the Holder of a breach of any provision of this Note shall not operate as or be construed to be a
waiver of any other breach of such provision or of any breach of any other provision of this Note. The failure of the Company or
the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered a waiver or
deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Note on any other
occasion. Any waiver by the Company or the Holder must be in writing.

 

f) Severability.
If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any
provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances.
If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing usury,
the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under
applicable law. The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead,
or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would
prohibit or forgive the Company from paying all or any portion of the principal of or interest on this Note as contemplated herein,
wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this Note, and
the Company (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants
that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Holder, but
will suffer and permit the execution of every such as though no such law has been enacted.

 

g) Remedies,
Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Note shall be cumulative
and in addition to all other remedies available under this Note and any of the other Transaction Documents at law or in equity
(including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the Holder’s
right to pursue actual and consequential damages for any failure by the Company to comply with the terms of this Note. The Company
covenants to the Holder that there shall be no characterization concerning this instrument other than as expressly provided herein.
Amounts set forth or provided for herein with respect to payments, conversion and the like (and the computation thereof) shall
be the amounts to be received by the Holder and shall not, except as expressly provided herein, be subject to any other obligation
of the Company (or the performance thereof). The Company acknowledges that a breach by it of its obligations hereunder will cause
irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that,
in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies,
to an injunction restraining any such breach or any such threatened breach, without the necessity of showing economic loss and
without any bond or other security being required. The Company shall provide all information and documentation to the Holder that
is requested by the Holder to enable the Holder to confirm the Company’s compliance with the terms and conditions of this
Note.

 

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h) Next
Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment
shall be made on the next succeeding Business Day.

 

i) Headings.
The headings contained herein are for convenience only, do not constitute a part of this Note and shall not be deemed to limit
or affect any of the provisions hereof.

 

j) Secured
Obligation. The obligations of the Company under this Note are secured by all assets of the Company and each Subsidiary pursuant
to the executed copy of the Security Agreement (the “Security Agreement”), between the Company, the Subsidiaries
of the Company and the Secured Parties (as defined therein). Execution of the Security Agreement will occur at the time of the
execution of this Note. This secured interest will be senior to any indebtedness or other obligation incurred by the Company after
the date of this Note. The Security Agreement also will include the provisions of the preceding two sentences.

 

*********************

 

(Signature Pages
Follow)

 

    12

     

    

 

IN WITNESS WHEREOF,
the Company has caused this Note to be duly executed by a duly authorized officer as of the date first above indicated.

 

	 	TELEMYND, INc.
	 	 
	 	By:	 
	 	Name:	Patrick Herguth
	 	Title:	Chief Executive Officer
	 	Facsimile No. for delivery of Notices: ____________

 

 

13

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