Document:

Lease Agreement

 Exhibit 10.44 
 TENANT FACILITIES USE AGREEMENT - E & Z Lines 
 FR Countermeasures Inc. and American
Ordnance LLC 
 This TENANT FACILITIES USE AGREEMENT (“Agreement”) is between American Ordnance LLC, a Delaware limited liability company, with
an office at 2280 Highway 104 West, Suite 2, Milan, TN 38358 (AO) and FR Countermeasures, Inc., a Delaware corporation, an affiliate of Flight Refuelling Limited, with an office c/o FR Holdings Inc., at 10 Cobham Drive, Orchard Park, New York, 14127
(“TENANT”) shall be effective as of the date of the last signature. 
  

	1.	USE of FACILITIES 

 The U. S. Government is the owner of
the Milan Army Ammunition Plant (“MLAAP”) and AO is the U. S. Government’s Contractor at the MLAAP. AO has the authority (Appendix A) to grant to the TENANT the right to use and occupy Lines E and Z (more fully described on attached
Appendix B, which consists of approximately 102,531 square feet of useable building space on 48.80 associated acres of land together with reasonable access for cars, trucks and other vehicular traffic (the Lines, land and access rights are
collectively referred to as the “Facilities”) for the manufacturing of pyrotechnic devices, infrared countermeasure devices and related uses. The right to use and occupy granted shall be in consideration of and subject to this Agreement,
which is accepted and agreed to by AO and the TENANT. The TENANT acknowledges that this Agreement does not convey any ownership interest in the Facilities to the TENANT. 
  

	2.	DELIVERY OF RIGHT TO USE THE FACILITIES 

 AO shall deliver
the right to use the Facilities to the TENANT on the effective date as determined in the preamble above and such day also shall be deemed the commencement date. Within five (5) business days of the satisfaction of the conditions set forth in
the preamble above, AO and TENANT shall mutually agree upon the effective date and commencement date in writing. 
  

	3.	TERM 

 Unless sooner terminated as herein provided, this
Agreement shall be in effect for a term of ten (10) years from the commencement date. This Agreement may be extended for a ten-year bi-lateral period by written notice from TENANT to AO at least ninety (90) days prior to the expiration of
the initial term or any preceding renewal term; said extension shall be on the same terms and conditions as stated in this Agreement, if approved by the U. S. Government as indicated in Appendix A. 
  

	4.	FACILITIES USE PAYMENT 

 Except as otherwise provided in
this Article 4, the TENANT shall pay to AO a monthly payment of $18,000 . Payment shall be paid to AO by the TENANT within fifteen (15) calendar days of the monthly anniversary following the effective date of this Agreement. The monthly payment
excludes all utilities, the responsibility of which is that of the TENANT to supply. Notwithstanding the foregoing, in the event that AO is able to obtain Armament Retooling and Manufacturing Support (ARMS) funding for the repair, renovation and
re-equipping of the Facilities in an amount and otherwise upon terms and conditions acceptable to TENANT, for the first seven (7) years of the Term the monthly payment shall be the greater of $18,000 or one eighty-fourth (1/84) of the
amount of the ARMS funding. For years 8 through 10 of this Agreement, the monthly payment shall be as follows: 
 Year 8   $18,000

 Year 9   $18,540 
 Year 10 $19,100 
 TENANT has provided at Appendix E Flight Refuelling Limited’s guarantee for all obligations in this
Agreement. 
  

					
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	5.	DEPOSITS 

  

	 	a.	Security-Deposit. Within fifteen (15) business days of the effective date of this Agreement, TENANT shall pay a security deposit to AO in an amount equal to the amount of one
(1) monthly payment as stated in Article 4. above as security for the faithful performance of the TENANT’s obligations under this Agreement (the “Security Deposit”), AO may claim and retain such amount of the Security Deposit as
is reasonably necessary to cure any defaults of the TENANT. If AO applies any part of the Security Deposit to cure any default of the TENANT, the TENANT shall deposit with AO upon demand, the amount so applied, so that AO shall have the full amount
of the initial Security Deposit on hand at all times during the term of this Agreement. AO may commingle the Security Deposit with other AO funds. The Security Deposit shall be retained by AO for no more than thirty (30) days after the
termination of this Agreement; and thereafter, AO shall return the Security Deposit or any remaining balance thereof, if any, to the TENANT and AO shall pay TENANT interest accumulated on any undisbursed amount of the Security Deposit at the rate of
2% per annum simple interest. 

  

	 	b.	Disposal Deposit. Within fifteen (15) business days of the effective date of this Agreement, TENANT shall pay a disposal deposit of $56,250 to AO to cover the cost of disposal
of any material remaining at the Facilities after the end of the lease term (“the Disposal Deposit”). AO may commingle the Disposal Deposit with other AO funds. The Disposal Deposit shall be retained by AO for no more than thirty
(30) days after the termination of this Agreement; and thereafter, AO shall return the Disposal Deposit or any remaining balance thereof, if any, to the TENANT and AO shall pay TENANT interest accumulated on any undisbursed amount of the
Disposal Deposit at the rate of 2% per annum simple interest. 

  

	6.	CONDITION, CARE, MAINTENANCE AND ALTERATION OF FACILITIES 

  

	 	a.	Representations by AO regarding condition of the Facilities. AO represents and warrants to TENANT that: 

  

	 	1)	The Facilities have a right of access to a public road. 

  

	 	2)	Except for the agreement between the TENANT and AO and AO’s prime contract with the U.S. Government, AO has no knowledge of any other outstanding leases or other agreements
relating to the Facilities. 

  

	 	3)	There are no employees of AO that would, by reason of any governmental regulations, employment contract or other reason become employees of TENANT as a result of this Agreement.

  

	 	4)	All utilities necessary to service the Facilities are available to the Facilities without the consent of any other person, other than the payment of service charges to the utility
provider. There are no facts or conditions in existence that will result in the termination of the present access from the Facilities to any utility services or to existing highways and roads and AO has not done any act which will result in the
termination of such access or services, to the best of AO’s knowledge. 

  

	 	5)	The Facilities are serviced by water and sewer (sanitary and storm service) and all plumbing, heating, HVAC, sewer, electrical and lighting fixtures and systems at the Facilities
are currently in good working order and shall be in good working order on a mutually agreed upon date. 

  

	 	6)	There are no claims, actions, litigation, arbitration or other proceedings pending against AO which relates to the Facilities or the transaction contemplated by this Agreement and
to the best of AO’s knowledge, there is currently no governmental investigation, threatened litigation or arbitration proceedings to which AO is or would be a party which relates to the Facilities except for those described in Appendix D,
Paragraph 1. 

  

	 	7)	To the best of AO’s knowledge, except as disclosed in the reports listed on attached Appendix D (the “Appendix D Reports”), complete copies of which reports shall be
made available to TENANT prior to the effective date of this Agreement, the Facilities are not in violation of any federal, state or local law, ordinance or regulation relating to any Hazardous Materials, as hereafter defined, industrial hygiene or
other environmental conditions on, under or about the Facilities including but not limited to soil and ground water conditions. Hazardous Materials (“Hazardous Materials”) shall mean any flammable explosives, radioactive materials,
hazardous wastes or substances, toxic waste or substances, and other related materials including without limitation any substances defined as or included in the definition of “Hazardous Substances”, “Hazardous Waste”,
“Hazardous Materials” or “Toxic Substances” under any applicable federal, state or local law or regulations. 

  

	 	b.	 Care. The TENANT shall exercise due diligence in the use of the Facilities from any and all causes. TENANT shall not be responsible for any condition that exists at
the Facilities prior to the effective date (“Pre-existing Condition”). The TENANT shall be responsible for and at “All Risk” for any and all loss of or damage to the Facilities only to the 

  

					
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extent that such loss or damage is caused by the acts or omissions of the TENANT or the TENANT’s agents, representatives, tenants or invitees. The
TENANT shall promptly repair or replace, to the reasonable satisfaction of AO, any of the foregoing property described in Article 1 so lost or damaged or upon mutual agreement, pay to AO, at AO’s option, an amount equal to the decrease in value
or replacement cost. 

  

	 	c.	Maintenance. After the delivery of the Facilities by AO to the TENANT, the TENANT, at the TENANT’s own expense and at all times, shall maintain the Facilities in good, safe,
neat, clean and sanitary condition, to include the perimeter fencing and associated land areas inside as well as the parking areas outside the fence, and shall surrender the Facilities, upon the termination of this Agreement, in as good condition as
received, normal wear and tear excepted. Tenant shall not be responsible for structural repairs to the roof, load bearing walls, floors or foundation unless such repairs are required due to the acts or omissions of TENANT, its employees, agents or
invitees. 

  

	 	d.	Alterations. The TENANT shall not make any alterations, additions or improvements, in, to or about the Facilities without the prior, written approval of an authorized AO official
representative, which approval shall not be unreasonably withheld. 

  

	 	e.	Unsafe Conditions. If AO or the TENANT discovers any condition that arises out of the TENANT’s activity at the MLAAP that presents an immediate threat to the safety or health
of any person or that threatens to endanger life, property or the environment the TENANT shall take immediate steps to correct the condition or activity and eliminate the danger. If the TENANT fails to take such immediate steps, AO, in addition to
any other right AO may have, including the right to terminate this Agreement if the condition or activity constitutes a breach of this Agreement, may deny the TENANT access to the MLAAP and AO may-take action to correct the condition or activity and
collect the cost of doing so from the TENANT. The TENANT shall have no claim for damages against AO, the U. S. Government or any director, officer, employee, other tenant or agent of either of them on account of action taken in good faith pursuant
to this provision, nor shall AO’s failure to take action pursuant to this provision relieve the TENANT of any obligations the TENANT has under this Agreement. If AO or the Tenant discovers any Pre-existing Condition or any condition that arises
out of AO’s activity at the MLAAP that presents an immediate threat to the safety or health of any person or that threatens to endanger life, property or the environment, AO shall take immediate steps to correct the condition or activity and
eliminate the danger. If AO fails to take such immediate steps, TENANT, in addition to any other right TENANT may have, including the right to terminate this Agreement if the condition or activity constitutes a material breach of this Agreement, may
take action to correct the condition or activity and collect the cost of doing so from AO, including the right to set off such cost from the facilities use payment due under the terms of Article 4 of this Agreement. 

  

	7.	INSURANCE 

  

	 	a.	Minimum Scope and Coverage. The TENANT, at the TENANT’s own expense, shall maintain during the term of this Agreement the following insurance coverage written with insurance
companies that are A. M. Best’s rated A except that Workers’ Compensation insurance may be provided through the Tennessee State Workers’ Compensation Fund: 

  

	 	1)	All insurance coverage provided by the TENANT under this Agreement shall contain or be endorsed to contain, coverage of the U. S. Government and AO as additional insureds (except
for the Workers’ Compensation Coverage) and insurance coverage will not be canceled or reduced without the insurer providing AO with at least thirty (30) days (ten [10] days for notice of cancellation for non-payment) written notice.

  

	 	2)	Workers’ Compensation insurance in compliance with statutory requirements and with Employer’s Liability insurance of $100,000 each accident, $100,000 each employee and
$500,000 policy limit. The coverage shall contain or be endorsed to contain, a waiver of subrogation in favor of AO. 

  

	 	3)	Commercial General Liability (CGL) insurance written on an occurrence basis with Combined Single Limits for bodily injury and property damage of not less than $1,000,000 per
occurrence and $2,000,000 in the aggregate and a deductible of not more than $1,000 per occurrence. The CGL policy shall provide coverage for Facilities Operations, Broad Form Property Damage, and Contractual Liability. Automobile Liability
insurance with Combined Single Limits for bodily injury and property damage of $500,000 per occurrence. 

  

	 	b.	 Verification of Coverage. Prior to the delivery of the use of the Facilities to the TENANT and for the coverage required to be provided by the TENANT by this
Agreement, the TENANT shall deliver to AO a Certificate of Insurance signed by a person authorized by the insurer. The receipt by AO of an incomplete, inaccurate or invalid 

  

					
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Certificate of Insurance shall not relieve or decrease the liability of the TENANT for the TENANT’s obligations under this Article 7 of this Agreement.
If requested by AO, the TENANT, at the TENANT’s expense, shall provide AO with certified copies of all insurance policies required by this Agreement. 

  

	 	c.	TENANT shall insure Facilities for loss or property damage from fire or other casualty from an insurance company licensed in the State of Tennessee in an amount of at least
$5,000,000 or an amount which will not otherwise result in coinsurance and with TENANT, AO and the U.S. Government as named insureds as their interest may appear. TENANT shall provide to AO a Certificate of Insurance fifteen (15) days after the
effective date. 

  

	8.	ORDINANCES, STATUTES-AND PERMITS 

  

	 	a.	The TENANT shall conduct the TENANT’s activities at the MLAAP in compliance at all times with all applicable city, county, state or federal statutes, regulations and
ordinances, including all requirements of Department of Defense Instruction (DoD) 4145.26-M and the TENANT shall obtain and maintain, at the TENANT’s own cost and expense, any and all licenses, consents, and permits (collectively
“Permits”) necessary to the TENANT’s occupancy or use of the Facilities. During the term of this Agreement, the TENANT may not use or permit any other person to use the Facilities or any part thereof, for any purpose or in any manner
that is in violation of any applicable statutes, regulations, ordinances, licenses, consents or permits. In the event that TENANT is unable to obtain any Permits prior to the effective date, TENANT may elect to terminate this Agreement on written
notice to AO. AO shall cooperate with TENANT in connection with TENANT’s efforts to obtain and maintain any required permits. 

  

	9.	INDEMNIFICATION AND DEFENSE 

  

	 	a.	The TENANT agrees to defend, indemnify and hold harmless AO from and against all claims, demands, investigations, costs (including but not limited to all movement and disposal costs
associated with product/energetics that could be residual at end of their contract), expenses, suits, proceedings, actions, causes of action, damages (including incidental, consequential or punitive damages), liabilities, judgments, fines or
penalties of any description whatsoever, including reasonable attorney’s fees arising from any service that relates to or is caused by (a) any act or omission of the TENANT or any of its employees, persons under the control of TENANT,
agents, lower-tier Tenants, subcontractors or invitees (other than AO or AO’s lower-tier subcontractors), or (b) non compliance with laws by the TENANT or any of its employees, persons under the control of TENANT, agents, lower-tier
Tenants, subcontractors or invitees (other than AO or AO’s lower-tier subcontractors). This indemnification language will survive the termination of this Agreement. 

  

	 	b.	AO agrees to defend, indemnify and hold harmless TENANT from and against all claims, demands, investigations, costs, expenses, suits, proceedings, actions, causes of action, damages
(including incidental, consequential or punitive damages), liabilities, judgments, fines or penalties of any description whatsoever, including reasonable attorney’s fees arising that relates to or is caused by (a) act or omission of AO or
any of their employees, persons under the control of AO, agents, subcontractors or invitees (other than Tenant) or any Pre-existing Condition, or (b) non-compliance with laws by AO or any of their employees, persons under the control of AO,
their agents, subcontractors or invitees. This indemnification language will survive the termination of this Agreement. 

  

	 	c.	Environmental Indemnification. Notwithstanding any other provision to the contrary herein, TENANT shall indemnify, reimburse, defend and hold harmless AO , its employees, agents,
successors and assigns, from and against any and all claims, actions or causes of action, demands, penalties, fines, suits, proceedings, assessments, disbursements, judgments, losses, liabilities, obligations, damages, costs and expenses (including,
but not limited to, reasonable attorney’s fees and court costs) imposed upon, suffered or incurred by AO, its employees, agents, successors and assigns, either directly or indirectly, pursuant to or in connection with the application of any
laws, including environmental laws, and arising out of or resulting from: 

  

	 	i.	Any actual or threatened damage to the Facilities by TENANT; 

  

	 	ii.	Any misrepresentation or breach of warranty made by TENANT, its agents, employees, or contractors, in this Agreement relating to laws or environmental laws;

  

	 	iii.	Any breach of or default in the performance by TENANT, its agents, employees or contractors, of any covenant, agreement or obligation to be performed by TENANT, its agents,
employees or contractors relating to laws or environmental laws. 

  

					
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	 	d.	Rules of Indemnification. The rights and obligations of any party when claiming a right to indemnification hereunder this Article 9 (the “Indemnitee”) from the other party
(the “Indemnitor”) shall be governed by the following rules: 

  

	 	i.	Indemnitee shall give prompt written notice to the Indemnitor of any claims of which the Indemnitee or of any state of facts that the Indemnitee determines will or is reasonably
likely to give rise to a claim by the Indemnitee against the Indemnitor based on this hold-harmless clause, stating the nature and basis of such claim and the amount thereof, to the extent known. No failure to give such notice shall affect the
indemnification obligations of the Indemnitor hereunder except to the extent Indemnitor can demonstrate such failure materially prejudiced such Indemnitor’s ability to defend successfully the matter giving rise to the indemnification claim.

  

	 	ii.	Upon written acknowledgement by the Indemnitor (a) that it is undertaking and will prosecute the defense of the claim pursuant to this Agreement and (b) confirming that
the claim is one with respect to which the Indemnitor is obligated to indemnify and that it will pay the full amount of potential liability in connection with any such claim, then such claim may be defended by the Indemnitor. The Indemnitee shall
have the right to employ its own counsel at its own expense, provided that Indemnitor’s counsel shall have complete control and direction of the defense of the claim. 

  

	 	iii.	The Indemnitor shall make no settlement of any claim that Indemnitor has undertaken to defend without Indemnitee’s consent, unless (i) there is no admission of violation
of law, negligence or fault of any kind by or on behalf of Indemnitee, (ii) the relief agreed to in connection therewith requires no action, payment or financial undertaking by or on the part of the Indemnitee and is not reasonably likely to
restrict or otherwise interfere with Indemnitee’s ability to conduct its business, and (iii) Indemnitee receives a general release of liability reasonably satisfactory to it. 

  

	10.	PROPERTY TAXES 

 The monthly payment does not include any
state or local real and personal property taxes (or any fees in lieu of property taxes) that may be assessed against the TENANT’s use of the Facilities. It shall be the TENANT’s sole responsibility to file any real or personal property
forms or returns as required by state law and local authorities. In the event real or personal property taxes (or fees in lieu of property taxes) are assessed against the TENANT’s use of the Facilities, the TENANT shall be solely responsible
for payment of such taxes (or fees in lieu of property taxes). AO assumes no responsibility for determining the correctness of any property assessments on account of the TENANT’s use of the Facilities. Any appeals afforded by law for state and
local property assessments shall be undertaken by the TENANT in the TENANT’s name and any legal fees or other costs of such proceedings shall be borne by the TENANT. AO shall cooperate with the TENANT in executing or requesting the U.S.
Government to execute required documents. 
  

	11.	ENVIRONMENTAL CONDITIONS 

  

	 	a.	General Duty of Care. The TENANT shall conduct the TENANT’s activities at the MLAAP in a manner that employs all reasonable means available to protect the environment and
natural resources of the MLAAP. 

  

	 	b.	Hazardous Substances. Except as otherwise permitted by law, TENANT shall not treat, dispose, bring, use or store at the MLAAP any hazardous substances (as defined by 42 USC,
Section 9601 (14) and implementing regulations, and for the purposes of this Agreement, hazardous substances shall include any petroleum product or waste or any fraction thereof) unless the TENANT first obtains AO’s written consent,
which shall not be unreasonably withheld or delayed. The TENANT shall submit to AO, and also keep at the Facilities, a copy of the material safety data sheet for each hazardous substance that the TENANT uses or stores at the Facilities or MLAAP.

  

	 	c.	Releases. If any activity of the TENANT results in a release of any hazardous substance to the environment at the MLAAP in violation of law, the TENANT shall immediately notify AO
and act promptly and diligently, at the TENANT’s expense and in compliance with all applicable laws, regulations, ordinances, orders, agreements and directives to mitigate and correct any damage to natural resources at or adjacent to the MLAAP.
Further, the TENANT shall correct or terminate any activity within the TENANT’s control at the MLAAP immediately upon discovering that such activity poses an imminent danger to the environment at the MLAAP. 

  

					
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	 	d.	Corrective Action Plans. If any government agency of competent authority or AO determines that a corrective action plan must be prepared prior to the remediation of a release or
threatened release of hazardous substances, and if such release is caused by the TENANT’s activities at the MLAAP, then the TENANT, at the TENANT’s sole expense, shall promptly prepare and submit the required plans and financial
assurances, and promptly implement and complete the approved plans to AO’s reasonable satisfaction. 

  

	 	e.	Closure. At the conclusion of this Agreement, the TENANT shall effect closure of the TENANT’s operations at the MLAAP in accordance with the closure plan set forth in any
permit the TENANT may have with respect to those activities. If the TENANT’s closure activities render any part of the MLAAP unusable, the TENANT shall compensate AO on a monthly basis until the closure activities have been completed to the
reasonable satisfaction of the appropriate governmental agencies and AO for the reasonable loss of use of the part of the MLAAP effected. 

  

	 	f.	Data. The TENANT shall have a continuing duty to provide to AO, at the TENANT’s expense, all information concerning any material environmental release or impact of the
TENANT’s activities at the MLAAP during the effective period of this Agreement. The TENANT shall furnish AO true and complete copies of all material reports, submissions, inspections, notices, orders, directives, findings and correspondence and
other materials pertinent to the TENANT’s compliance with applicable laws and regulations as such are issued or received by the TENANT. 

  

	 	g.	Survival of Provision upon Termination of Agreement. This Article 11 shall survive the expiration or sooner termination of this Agreement. 

  

	12.	TERMINATION 

  

	 	a.	Pursuant to the demand of the U. S. Government, AO may terminate this Agreement or portions thereof at any time by giving thirty (30) days written notice to the TENANT
(i) during any national emergency declared by the President or the Congress of the United States; or (ii) in the event of mobilization. In addition, AO may terminate this Agreement or portions thereof in the event the Government determines
that the termination of this Agreement or portions thereof, is in its best interest. A timetable shall be negotiated with the TENANT for cessation of use of the Facilities. In the event of any termination, a termination settlement shall be
negotiated by AO with the U. S. Government in accordance with FAR Part 31 and FAR Part 49 on behalf of and in cooperation with the TENANT establishing appropriate termination settlement costs to be paid to the TENANT. TENANT shall submit a
termination settlement proposal to AO within sixty (60) days of receiving notice of termination for the purpose of negotiating with the U. S. Government AO shall not agree to a termination settlement with the U. S. Government with respect to
the termination of the Agreement or any portion thereof without first obtaining TENANT’s written consent. If a settlement by determination is made by the U. S. Government with respect to the termination of the Agreement or any portion thereof,
AO shall appeal such determination at the request of TENANT and at TENANT’s expense. All responsibilities, liabilities and obligations of AO for a termination of the Agreement shall be satisfied by the equitable adjustment made by the U. S.
Government. However, this provision shall not prevent or diminish any other rights or remedies the TENANT may have to settle claims it might have with the U. S. Government caused by termination under this clause. 

  

	 	b.	Default. AO or TENANT may each terminate this Agreement upon the material breach of this Agreement by the other if such breach remains uncured for a period of sixty (60) days
after written notice thereof from the non- breaching party, provided that such sixty (60) day period shall be reasonably extended for up to thirty (30) additional days or for a longer period if (i) the subject breach cannot be
completely cured within such period and (ii) the TENANT takes all reasonable steps toward cure within such sixty (60) day or longer period and thereafter proceeds diligently to completion of cure of the breach. 

  

	 	c.	Except for a termination under paragraph (a) above if AO terminates this Agreement, for default of the TENANT, before the end of the initial term, TENANT shall forfeit its
Security Deposit and AO may take possession of the Facilities by peaceful means or by summary proceedings and remove all persons and property therefrom, without being deemed guilty in any manner of trespass, and lease the Facilities or any part
thereof to another party, at such fees as AO may with reasonable diligence be able to secure. Should AO be unable to lease the Facilities to another party after reasonable efforts to do so or should such payments be less than the payments the TENANT
was obligated to pay under this Agreement plus the expense of leasing the Facilities to another party, then the TENANT shall pay the amount of such deficiency, less Security Deposit, Disposal Deposit and proceeds from releasing to AO for the term of
this Agreement. 

  

	 	d.	 If TENANT terminates this Agreement, for default of AO, AO shall pay TENANT an amount that may be reasonable in the circumstances to compensate TENANT for any
reasonable expenses and/or losses directly 

  

					
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incurred by TENANT as a result of such termination. In the event of such termination TENANT Security Deposit shall be immediately refunded to the TENANT and
the Disposal Deposit shall be released to TENANT. 

  

	 	e.	TENANT may terminate this Agreement for convenience in the first seven (7) years of the term with written notice to AO, payment to AO of the unpaid ARMS funding spent on the
Facilities (i.e. 1/84 x ARMS Funding spent x remaining number of months in 7 year term), and fulfillment of any other obligations related to the leasing of the Facilities contained in this Agreement to the termination date of this Agreement. TENANT
may terminate for convenience in years eight ( 8) through ten (10) of the term with written notice to AO, payment to AO of the rent for the calendar year in which termination notice is given and rent for the following calendar year, and
fulfillment of any other obligations related to the leasing of the Facilities contained in this Agreement to the termination date of this Agreement, less Security Deposit, Disposal Deposit and proceeds from reletting. 

  

	13.	STANDARD PROVISIONS 

  

	 	a.	Entry and Inspection. The TENANT shall permit AO and/or the U. S. Government to enter upon the Facilities at reasonable times and upon reasonable notice for the purpose of
inspecting the Facilities. 

  

	 	b.	Assignment by the TENANT. The TENANT shall not have the right to assign this Agreement, any interest of this Agreement or to sub-license the Facilities without the prior written
consent of AO, which shall not be unreasonably withheld or delayed. 

  

	 	c.	Assignment by AO. AO is expressly given the right to assign any or all of AO’s interest in this Agreement. 

  

	 	d.	Legal Construction. In case any one or more of the provisions contained in this Agreement shall be held to be invalid, illegal or unenforceable, such invalidity, illegality or
unenforceability shall not affect any other provision and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein so long as such provision does not go to the essence of this
Agreement. 

  

	 	e.	Prior Agreements. This Agreement, including the attached Appendices and Schedules constitutes the sole and only Agreement of the parties hereto and supersedes any prior
understandings or written or oral agreements between the parties respecting the within subject matter. 

  

	 	f.	Amendment. No amendment, modification or alteration of the terms herein shall be binding unless the same be in writing, dated subsequent to the date hereof, and duly executed by the
parties hereto. 

  

	 	g.	Rights and Remedies. The rights and remedies provided by this Agreement are cumulative and the use of any one right or remedy by either party shall not preclude or waive such
party’s right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance or otherwise. 

  

	 	h.	Waiver of Default. No waiver by the parties hereto of any default or breach of any term, condition or covenant of this Agreement shall be deemed to be a waiver of any other default
or breach of the same or any other term, condition or covenant contained herein. 

  

	 	i.	Attorney’s Fees. In the event AO or the TENANT breaches any of the terms of this Agreement whereby the party not in default employs attorneys to protect or enforce such
party’s rights hereunder and prevails, then the defaulting party agrees to pay the other party reasonable attorney’s fees and other expenses so incurred by such other party. 

  

	 	j.	Force Majeure. Neither party to this Agreement shall be required to perform any term, condition or covenant in this Agreement so long as such performance is delayed or prevented by
force majeure, which shall mean acts of God, strikes, lockouts, material or labor restrictions by any governmental authority, civil riots, floods, and any other cause not reasonably within the control of either party and which by the exercise of due
diligence of either party is unable, wholly or in part, to prevent or overcome. 

  

	 	k.	 Payments. All payments of moneys due AO by the TENANT under this Agreement shall be remitted to AO’s Controller, at the MLAAP or to such designee as selected
at the sole option of AO. If the TENANT fails to make any payments due under this Agreement by the due date to which such payments applies, the TENANT 

  

					
		  	American Ordnance LLC	  	Page 7 of 8
	E & Z 10-28-02	  	Company Confidential & Proprietary Information

	 	 
shall pay a late fee in the amount equal to 1 1/4 % per month (15% per year) of the overdue amount of any such payment due under this Agreement.

  

	 	l.	Notices. Any written notice that either party may or is required to give, shall be given by overnight delivery service or by mailing the same, first class postage prepaid, to the
TENANT or AO at the address set forth in the preamble to this Agreement or at such other places as the parties may designate by written notice. 

  

	 	m.	Upon any termination of AO as the contractor for the use of the Facilities, and the TENANT suffering a loss or having any other claim, TENANT may submit any claim either through AO
or in accordance with U.S. government directions provided to AO. 

  

	 	n.	Special Terms and Conditions. See Appendix D attached which is incorporated herein by reference. Additional terms and conditions will be included, as mutually agreed upon, after
operational data is provided to AO by TENANT. 

  

	 	o.	Governing Law. This Agreement and the rights and obligations of the parties hereto shall be governed, construed and enforced in accordance with the laws of the State of Tennessee.

  

	 	p.	Headings. Headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

  

	 	q.	Historical Preservation. The TENANT shall not remove or disturb or cause or permit to be removed or disturbed, at the MLAAP any historical, archeological, architectural or other
cultural artifacts, relics, vestiges, remains or objects of antiquity. In the event the TENANT discovers such items at the MLAAP, the TENANT shall immediately notify AO and such items shall be protected by the TENANT from further disturbance until a
professional examination of such items can be made or until clearance to proceed is authorized by AO. 

  

	 	r.	Employee Hiring. Neither party to this Agreement shall knowingly hire or solicit the hiring of, any employee, or consultant-of the other party without the expressed written consent
of said other party. 

  

	 	s.	AO Company Confidential and Proprietary Information. Each page of this Agreement is labeled American Ordnance LLC Company Confidential and Proprietary Information and the TENANT
shall not disclose this Agreement, whether this document is executed or unexecuted, to a third party without the expressed written consent of AO and AO shall not withhold such written consent if disclosure of this Agreement by the TENANT is required
by law, regulation or court order. 

  

	 	t.	If and so long as the TENANT pays the facilities use payment required by the terms of this Agreement and performs and observes all other covenants and provisions of this Agreement,
TENANT shall quietly enjoy the Facilities, subject, however, to the terms and conditions of this Agreement. 

  

	 	u.	If the TENANT vacates the Facilities, then this shall not be considered a breach of this Agreement as long as the TENANT continues to make the monthly payments required by Article 4
(Facilities Use Payment) and fulfill all other obligations in this Agreement. 

 IN WITNESS WHEREOF, the undersigned hereby
execute this Agreement. 
  

					
	American Ordnance LLC:	 		 	FR Countermeasures Inc.:
			
	/s/ William B. Niven	 		 	/s/ John B. Taylor
	Signature	 		 	Signature
			
	William B. Niven	 		 	John B. Taylor
	Printed Name	 		 	Printed Name
			
	Vice President and Plant Manager	 		 	Director and General Manager
	Title	 		 	Title
			
	11-04-02	 		 	31-10-02
	Date	 		 	Date

  

					
		  	American Ordnance LLC	  	Page 8 of 8
	E & Z 10-28-02	  	Company Confidential & Proprietary InformationSample Agreement Entered into with Each Non-Employee Director

 Exhibit 10.1 
 SAMPLE AGREEMENT ENTERED INTO WITH WITH EACH NON-EMPLOYEE DIRECTOR EFFECTIVE 
 JANUARY 1, 2007 
 BANK OF THE SIERRA 
 DIRECTOR
RETIREMENT AGREEMENT 
 THIS DIRECTOR RETIREMENT AGREEMENT (the “Agreement”) is adopted this     
day of                     , 2      , by and between the BANK OF THE SIERRA, a state-chartered commercial
corporation located in Porterville, California (the “Company”), and
                                 (the “Director”). 
 The purpose of this Agreement is to provide specified benefits to the Director, a member of a select group of management or highly compensated employees
who contribute materially to the continued growth, development and future business success of the Company. This Agreement shall be unfunded for tax purposes and for purposes of Title I of the Employee Retirement Income Security Act of 1974
(“ERISA”), as amended from time to time. 
 Article 1 
 Definitions 
 Whenever used in this Agreement, the following words and phrases
shall have the meanings specified: 
  

	1.1	“Accrual Balance” means the liability that should be accrued by the Company, under Generally Accepted Accounting Principles (“GAAP”), for the
Company’s obligation to the Director under this Agreement, by applying Accounting Principles Board Opinion Number 12 (“APB 12”) as amended by Statement of Financial Accounting Standards Number 106 (“FAS 106”) and the
Discount Rate. Any one of a variety of amortization methods may be used to determine the Accrual Balance. However, once chosen, the method must be consistently applied. 

  

	1.2	“Beneficiary” means each designated person or entity, or the estate of the deceased Director, entitled to any benefits upon the death of the Director pursuant to
Article 4. 

  

	1.3	“Beneficiary Designation Form” means the form established from time to time by the Plan Administrator that the Director completes, signs, and returns to the Plan
Administrator to designate one or more Beneficiaries. 

  

	1.4	“Board” means the Board of Directors of the Company as from time to time constituted. 

  

	1.5	“Change in Control” means the transfer of shares of the Company’s voting common stock such that one entity or one person acquires (or is deemed to acquire when
applying Section 318 of the Code) more than 50% of the Company’s outstanding voting common stock. 

	1.6	“Code” means the Internal Revenue Code of 1986, as amended, and all regulations and guidance thereunder, including such regulations and guidance as may be
promulgated after the Effective Date of this Agreement. 

  

	1.7	“Disability” means Director: (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months; or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to
result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering
employees or directors of the Company. Medical determination of Disability may be made by either the Social Security Administration or by the provider of an accident or health plan covering employees or directors of the Company provided that the
definition of “disability” applied under such insurance program complies with the requirements of the preceding sentence. Upon the request of the Plan Administrator, the Director must submit proof to the Plan Administrator of the Social
Security Administration’s or the provider’s determination. 

  

	1.8	“Discount Rate” means the rate used by the Plan Administrator for determining the Accrual Balance. The initial Discount Rate is six percent (6%). However, the Plan
Administrator, in its discretion, may adjust the Discount Rate to maintain the rate within reasonable standards according to GAAP and/or applicable bank regulatory guidance. 

  

	1.9	“Early Termination” means Termination of Service before Normal Retirement Age for reasons other than death, Disability, Termination for Cause or following a Change
in Control. 

  

	1.10	“Effective Date” means January 1, 2007. 

  

	1.11	“Normal Retirement Age” means the Director attaining age seventy-one (71). 

  

	1.12	“Normal Retirement Date” means the later of Normal Retirement Age or Termination of Service. 

  

	1.13	“Plan Administrator” means the Board or such committee or person as the Board shall appoint. 

  

	1.14	“Plan Year” means each twelve (12) month period commencing on January 1st and ending on December 31st of each year. 

  

	1.15	“Schedule A” means the schedule attached to this Agreement and made a part hereof. Schedule A shall be updated upon a change in any of the benefits under Articles 2
or 3. 

	1.16	“Specified Employee” means a key employee (as defined in Section 416(i) of the Code without regard to paragraph 5 thereof) of the Company if any stock of the
Company is publicly traded on an established securities market or otherwise, as determined by the Plan Administrator based on the twelve (12) month period ending each December 31 (the “identification period”) If the Director is
determined to be a Specified Employee for an identification period, the Director shall be treated as a Specified Employee for purposes of this Agreement during the twelve (12) month period that begins on the first day of the fourth month
following the close of the identification period. 

  

	1.17	“Termination for Cause” means Termination of Service for: 

  

	 	(a)	Gross negligence or gross neglect of duties to the Company; or 

  

	 	(b)	Conviction of a felony or of a gross misdemeanor involving moral turpitude in connection with the Director’s service with the Company; or 

  

	 	(c)	Fraud, disloyalty, dishonesty or willful violation of any law or significant Company policy committed in connection with the Director’s service and resulting in a material
adverse effect on the Company. 

  

	1.18	“Termination of Service” means the voluntary or involuntary termination of the Director’s service with the Company for reasons other than death or Disability.
Whether a Termination of Service takes place is determined in accordance with the requirements of Code Section 409A and related Treasury guidance or Regulations based on the facts and circumstances surrounding the termination of the
Director’s service and whether the Company and the Director intended for the Director to provide significant services for the Company following such termination. 

 Article 2 
 Distributions During Lifetime 
  

	2.1	Normal Retirement Benefit. Upon the Normal Retirement Date, the Company shall distribute to the Director the benefit described in this Section 2.1 in lieu of any other
benefit under this Article. 

  

	 	2.1.1	Amount of Benefit. The annual benefit under this Section 2.1 is Twenty-Five Thousand Dollars ($25,000). 

  

	 	2.1.2	Distribution of Benefit. The Company shall distribute the annual benefit to the Director in twelve (12) equal monthly installments commencing on the first day of the
month following Termination of Service. The annual benefit shall be distributed to the Director for ten (10) years. 

  

	2.2	Early Termination Benefit. If Early Termination occurs, the Company shall distribute to the Director the benefit described in this Section 2.2 in lieu of any other
benefit under this Article. 

	 	2.2.1	Amount of Benefit. The benefit under this Section 2.2 is the Early Termination benefit set forth on Schedule A for the Plan Year ending immediately prior to Termination
of Service. 

  

	 	2.2.2	Distribution of Benefit. The Company shall distribute the benefit to the Director in one hundred twenty (120) consecutive equal monthly installments commencing on the
first day of the month following Termination of Service. 

  

	2.3	Disability Benefit. If a Disability occurs which results in a Termination of Service prior to Normal Retirement Age, the Company shall distribute to the Director the benefit
described in this Section 2.3 in lieu of any other benefit under this Article. 

  

	 	2.3.1	Amount of Benefit. The benefit under this Section 2.3 is the Disability benefit set forth on Schedule A for the Plan Year immediately prior to Termination of
Service. 

  

	 	2.3.2	Distribution of Benefit. The Company shall distribute the benefit to the Director in one hundred twenty (120) consecutive equal monthly installments commencing on the
first day of the month following Termination of Service. 

  

	2.4	Change in Control Benefit. If a Change in Control occurs followed within twelve (12) months by a Termination of Service, the Company shall distribute to the Director the
benefit described in this Section 2.4 in lieu of any other benefit under this Article. 

  

	 	2.4.1	Amount of Benefit. The benefit under this Section 2.4 is the Change in Control benefit set forth on Schedule A for the Plan Year immediately prior to Termination
of Service. 

  

	 	2.4.2	Distribution of Benefit. The Company shall distribute the benefit to the Director in one hundred twenty (120) consecutive equal monthly installments commencing on the
first day of the month following Termination of Service. 

  

	2.5	Restriction on Commencement of Distribution. Notwithstanding any provision of this Agreement to the contrary, if the Director is considered a Specified Employee at
Termination of Service, the provisions of this Section 2.5 shall govern all distributions hereunder. Benefit distributions that are made due to a Termination of Service occurring while the Director is a Specified Employee shall not be made
during the first six (6) months following Termination of Service. Rather, any distribution which would otherwise be paid to the Director during such period shall be accumulated and paid to the Director in a lump sum on the first day of the
seventh month following the Termination of Service. All subsequent distributions shall be paid in the manner specified. 

  

	2.6	Distributions Upon Income Inclusion Under Code Section 409A. Upon any amount is 

 required to be included in income by the Director prior to receipt due to a failure of this Agreement to
meet the requirements of Code Section 409A, the Director may petition the Plan Administrator for a distribution of that portion of the amount the Company has accrued with respect to the Company’s obligations hereunder that is required to
be included in the Director’s income. Upon the grant of such a petition, which grant shall not be unreasonably withheld, the Company shall distribute to the Director immediately available funds in an amount equal to the portion of the amount
the Company has accrued with respect to the Company’s obligations hereunder required to be included in income as a result of the failure of this Agreement to meet the requirements of Code Section 409A, within ninety (90) days of the
date when the Director’s petition is granted. Such a distribution shall affect and reduce the Director’s benefits to be paid under this Agreement. 
  

	2.7	Change in Form or Timing of Distributions. For distribution of benefits under this Article 2, the Director and the Company may, subject to the terms of Section 8.1,
amend the Agreement to delay the timing or change the form of distributions. Any such amendment: 

  

	 	(a)	may not accelerate the time or schedule of any distribution, except as provided in Code Section 409A and the regulations thereunder; 

  

	 	(b)	must, for benefits distributable under Sections 2.1, 2.2, 2.3 and 2.4, delay the commencement of distributions for a minimum of five (5) years from the date the first
distribution was originally scheduled to be made; and 

  

	 	(c)	must take effect not less than twelve (12) months after the amendment is made. 

 Article 3 
 Distribution at Death 
  

	3.1	Death During Active Service. If the Director dies prior to Termination of Service, the Company shall distribute to the Beneficiary the benefit described in this
Section 3.1. This benefit shall be distributed in lieu of any benefits under Article 2. 

  

	 	3.1.1	Amount of Benefit. The benefit under this Section 3.1 is the Accrual Balance determined as of the end of the month prior to the Director’s death.

  

	 	3.1.2	Distribution of Benefit. The Company shall distribute the benefit to the Beneficiary in a lump sum within thirty (30) days following receipt by the Company of the
Director’s death certificate. 

  

	3.2	Death During Distribution of a Benefit. If the Director dies after any benefit distributions have commenced under this Agreement but before receiving all such distributions,
the Company shall distribute to the Beneficiary the remaining benefits at the same time and in the same amounts they would have been distributed to the Director had the Director survived. 

	3.3	Death After Termination of Service But Before Benefit Distributions Commence. If the Director is entitled to benefit distributions under this Agreement but dies
prior to the commencement of said benefit distributions, the Company shall distribute to the Beneficiary the same benefits to which the Director was entitled prior to death except that the benefit distributions shall commence within thirty
(30) days following receipt by the Company of the Director’s death certificate. 

 Article 4 
 Beneficiaries 
  

	4.1	In General. The Director shall have the right, at any time, to designate a Beneficiary to receive any benefit distributions under this Agreement upon the death of the
Director. The Beneficiary designated under this Agreement may be the same as or different from the beneficiary designated under any other plan of the Company in which the Director participates. 

  

	4.2	Designation. The Director shall designate a Beneficiary by completing and signing the Beneficiary Designation Form and delivering it to the Plan Administrator or its
designated agent. If the Director names someone other than the Director’s spouse as a Beneficiary, the Plan Administrator may, in its sole discretion, determine that spousal consent is required to be provided in a form designated by the Plan
Administrator, executed by the Director’s spouse and returned to the Plan Administrator. The Director’s beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Director or if the Director names a
spouse as Beneficiary and the marriage is subsequently dissolved. The Director shall have the right to change a Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary Designation Form and the Plan
Administrator’s rules and procedures. Upon the acceptance by the Plan Administrator of a new Beneficiary Designation Form, all Beneficiary designations previously filed shall be cancelled. The Plan Administrator shall be entitled to rely on the
last Beneficiary Designation Form filed by the Director and accepted by the Plan Administrator prior to the Director’s death. 

  

	4.3	Acknowledgment. No designation or change in designation of a Beneficiary shall be effective until received, accepted and acknowledged in writing by the Plan Administrator or
its designated agent. 

  

	4.4	No Beneficiary Designation. If the Director dies without a valid beneficiary designation, or if all designated Beneficiaries predecease the Director, then the Director’s
spouse shall be the designated Beneficiary. If the Director has no surviving spouse, any benefits shall be paid to the personal representative of the Director’s estate. 

  

	4.5	Facility of Distribution. If the Plan Administrator determines in its discretion that a 

 benefit is to be distributed to a minor, to a person declared incompetent, or to a person incapable of
handling the disposition of that person’s property, the Plan Administrator may direct distribution of such benefit to the guardian, legal representative or person having the care or custody of such minor, incompetent person or incapable person.
The Plan Administrator may require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the benefit. Any distribution of a benefit shall be a distribution for the account of the Director and the
Director’s Beneficiary, as the case may be, and shall completely discharge of any liability under the Agreement for such distribution amount. 
 Article 5 
 General Limitations 
  

	5.1	Termination for Cause. Notwithstanding any provision of this Agreement to the contrary, the Company shall not distribute any benefit under this Agreement in excess of the
Deferrals if the Director’s service with the Company is terminated due to a Termination for Cause. 

  

	5.2	Suicide or Misstatement. No benefit shall be distributed if the Director commits suicide within two years after the Effective Date of this Agreement, or if an insurance
company which issued a life insurance policy covering the Director and owned by the Company denies coverage (i) for material misstatements of fact made by the Director on an application for such life insurance, or (ii) for any other
reason. 

  

	5.3	Removal. Notwithstanding any provision of this Agreement to the contrary, the Company shall not distribute any benefit under this Agreement if the Director is subject
to a final removal or prohibition order issued by an appropriate federal banking agency pursuant to Section 8(e) of the Federal Deposit Insurance Act. 

 Article 6 
 Administration of Agreement 
  

	6.1	Plan Administrator Duties. The Plan Administrator shall administer this Agreement according to its express terms and shall also have the discretion and authority to
(i) make, amend, interpret and enforce all appropriate rules and regulations for the administration of this Agreement and (ii) decide or resolve any and all questions, including interpretations of this Agreement, as may arise in connection
with the Agreement to the extent the exercise of such discretion and authority does not conflict with Code Section 409A. 

  

	6.2	Agents. In the administration of this Agreement, the Plan Administrator may employ agents and delegate to them such administrative duties as it sees fit, including acting
through a duly appointed representative, and may from time to time consult with counsel who may be counsel to the Company. 

	6.3	Binding Effect of Decisions. Any decision or action of the Plan Administrator with respect to any question arising out of or in connection with the administration,
interpretation and application of the Agreement and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having any interest in the Agreement. 

  

	6.4	Indemnity of Plan Administrator. The Company shall indemnify and hold harmless the members of the Plan Administrator against any and all claims, losses, damages, expenses or
liabilities arising from any action or failure to act with respect to this Agreement, except in the case of willful misconduct by the Plan Administrator or any of its members. 

  

	6.5	Company Information. To enable the Plan Administrator to perform its functions, the Company shall supply full and timely information to the Plan Administrator on all matters
relating to the date and circumstances of the death, Disability or Termination of Service of the Director, and such other pertinent information as the Plan Administrator may reasonably require. 

  

	6.6	Annual Statement. The Plan Administrator shall provide to the Director, within one hundred twenty (120) days after the end of each Plan Year, a statement setting forth
the benefits to be distributed under this Agreement. 

 Article 7 
 Claims And Review Procedures 
  

	7.1	Claims Procedure. A Director or Beneficiary (“claimant”) who has not received benefits under the Agreement that he or she believes should be distributed shall make
a claim for such benefits as follows: 

  

	 	7.1.1	Initiation – Written Claim. The claimant initiates a claim by submitting to the Plan Administrator a written claim for the benefits. If such a claim relates to the
contents of a notice received by the claimant, the claim must be made within sixty (60) days after such notice was received by the claimant. All other claims must be made within one hundred eighty (180) days of the date on which the event
that caused the claim to arise occurred. The claim must state with particularity the determination desired by the claimant. 

  

	 	7.1.2	Timing of Plan Administrator Response. The Plan Administrator shall respond to such claimant within ninety (90) days after receiving the claim. If the Plan
Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional ninety (90) days by notifying the claimant in writing, prior to the end
of the initial ninety (90) day period, which an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Plan Administrator expects to render its decision.

  

	 	7.1.3	Notice of Decision. If the Plan Administrator denies part or the entire claim, the Plan Administrator shall notify the claimant in writing of such denial. The Plan
Administrator shall write the notification in a manner calculated to be understood by the claimant. The notification shall set forth: 

  

	 	(a)	The specific reasons for the denial; 

	 	(b)	A reference to the specific provisions of the Agreement on which the denial is based; 

  

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

  

	 	(d)	An explanation of the Agreement’s review procedures and the time limits applicable to such procedures. 

  

	7.2	Review Procedure. If the Plan Administrator denies part or the entire claim, the claimant shall have the opportunity for a full and fair review by the Plan Administrator of
the denial as follows: 

  

	 	7.2.1	Initiation – Written Request. To initiate the review, the claimant, within sixty (60) days after receiving the Plan Administrator’s notice of denial, must file
with the Plan Administrator a written request for review. 

  

	 	7.2.2	Additional Submissions – Information Access. The claimant shall then have the opportunity to submit written comments, documents, records and other information relating
to the claim. The Plan Administrator shall also provide the claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claimant’s claim for benefits.

  

	 	7.2.3	Considerations on Review. In considering the review, the Plan Administrator shall take into account all materials and information the claimant submits relating to the claim,
without regard to whether such information was submitted or considered in the initial benefit determination. 

  

	 	7.2.4	Timing of Plan Administrator Response. The Plan Administrator shall respond in writing to such claimant within sixty (60) days after receiving the request for review. If
the Plan Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional sixty (60) days by notifying the claimant in writing, prior to
the end of the initial sixty (60) day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Plan Administrator expects to render its decision.

	 	7.2.5	Notice of Decision. The Plan Administrator shall notify the claimant in writing of its decision on review. The Plan Administrator shall write the notification in a manner
calculated to be understood by the claimant. The notification shall set forth: 

  

	 	(a)	The specific reasons for the denial; 

  

	 	(b)	A reference to the specific provisions of the Agreement on which the denial is based; 

  

	 	(c)	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 for benefits; and 

  

	 	(d)	A statement of the claimant’s right to bring a civil action. 

 Article 8 
 Amendments and Termination 
  

	8.1	Amendments. This Agreement may be amended only by a written agreement signed by the Company and the Director. However, the Company may unilaterally amend this Agreement to
conform with written directives to the Company from its auditors or banking regulators or to comply with legislative changes or tax law, including without limitation Section 409A of the Code and any and all Treasury regulations and guidance
promulgated thereunder. 

  

	8.2	Plan Termination Generally. The Company and the Director may mutually terminate this Agreement at any time. The benefit hereunder shall be the amount the Company has accrued
with respect to the Company’s obligations hereunder as of the date the Agreement is terminated. Except as provided in Section 8.3, the termination of this Agreement shall not cause a distribution of benefits under this Agreement. Rather,
after such termination benefit distributions will be made at the earliest distribution event permitted under Article 2 or Article 3. 

  

	8.3	Plan Terminations Under Code Section 409A. Notwithstanding anything to the contrary in Section 8.2, if t this Agreement terminates in the following circumstances:

  

	 	(a)	Within thirty (30) days before or twelve (12) months after a transaction described in Code Section 409A(2)(A)(v), i.e., a change in the ownership or effective control
of the Company, or in the ownership of a substantial portion of the Company’s assets, provided that all distributions are made no later than twelve (12) months following such termination of the Agreement and further provided that
all the Company’s arrangements which are substantially similar to the Agreement are terminated so the Director and all participants in the similar arrangements are required to receive all amounts of compensation
deferred under the terminated arrangements within twelve (12) months of such terminations; 

	 	(b)	Upon the Company’s dissolution or with the approval of a bankruptcy court provided that the amounts deferred under the Agreement are included in the Director’s gross
income in the latest of (i) the calendar year in which the Agreement terminates; (ii) the calendar year in which the amount is no longer subject to a substantial risk of forfeiture; or (iii) the first calendar year in which the
distribution is administratively practical; or 

  

	 	(c)	Upon the Company’s termination of this and all other non-account balance plans (as referenced in Code Section 409A of the Code or the regulations thereunder), provided
that all distributions are made no earlier than twelve (12) months and no later than twenty-four (24) months following such termination, and the Company does not adopt any new non-account balance plans for a minimum of five (5) years
following the date of such termination; 

 the Company may distribute the amount the Company has accrued with respect to the
Company’s obligations hereunder, determined as of the date of the termination of the Agreement, to the Director in a lump sum subject to the above terms. 
 Article 9 
 Miscellaneous 
  

	9.1	Binding Effect. This Agreement shall bind the Director and the Company, and their beneficiaries, survivors, executors, administrators and transferees.

  

	9.2	No Guarantee of Service. This Agreement is not a contract for service. It does not give the Director the right to remain a member of the Board, nor interfere with the
Company’s right to discharge the Director. It does not require the Director to remain a director nor interfere with the Director’s right to terminate service at any time. 

  

	9.3	Non-Transferability. Benefits under this Agreement cannot be sold, transferred, assigned, pledged, attached or encumbered in any manner. 

  

	9.4	Tax Withholding and Reporting. The Company shall withhold any taxes that are required to be withheld, including but not limited to taxes owed under Code Section 409A
from the benefits provided under this Agreement. The Director acknowledges that the Company’s sole liability regarding taxes is to forward any amounts withheld to the appropriate taxing authorities. The Company shall satisfy all applicable
reporting requirements, including those under Code Section 409A. 

  

	9.5	Applicable Law. The Agreement and all rights hereunder shall be governed by the laws of the State of California, except to the extent preempted by the laws of the United
States of America. 

	9.6	Unfunded Arrangement. The Director and the Beneficiary are general unsecured creditors of the Company for the distribution of benefits under this Agreement. The benefits
represent the mere promise by the Company to distribute such benefits. The rights to benefits are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment or garnishment by creditors. Any
insurance on the Director’s life or other informal funding asset is a general asset of the Company to which the Director and Beneficiary have no preferred or secured claim. 

  

	9.7	Reorganization. The Company shall not merge or consolidate into or with another bank, or reorganize, or sell substantially all of its assets to another bank, firm or
person unless such succeeding or continuing bank, firm or person agrees to assume and discharge the obligations of the Company under this Agreement. Upon the occurrence of such an event, the term “Company” as used in this Agreement shall
be deemed to refer to the successor or survivor entity. 

  

	9.8	Entire Agreement. This Agreement constitutes the entire agreement between the Company and the Director as to the subject matter hereof. No rights are granted to the
Director by virtue of this Agreement other than those specifically set forth herein. 

  

	9.9	Interpretation. Wherever the fulfillment of the intent and purpose of this Agreement requires and the context will permit, the use of the masculine gender includes the
feminine and use of the singular includes the plural. 

  

	9.10	Alternative Action. In the event it shall become impossible for the Company or the Plan Administrator to perform any act required by this Agreement due to regulatory or other
constraints, the Company or Plan Administrator may perform such alternative act as most nearly carries out the intent and purpose of this Agreement and is in the best interests of the Company, provided that such alternative acts do not violate Code
Section 409A of the Code. 

  

	9.11	Headings. Article and section headings are for convenient reference only and shall not control or affect the meaning or construction of any provision herein.

  

	9.12	Validity. If any provision of this Agreement shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this
Agreement shall be construed and enforced as if such illegal or invalid provision had never been inserted herein. 

  

	9.13	Notice. Any notice or filing required or permitted to be given to the Company or Plan Administrator under this Agreement shall be sufficient if in writing and hand-delivered
or sent by registered or certified mail to the address below: 

  

	
	  
	  
	  

 Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the
date shown on the postmark on the receipt for registration or certification. 
 Any notice or filing required or permitted to be given to the
Director under this Agreement shall be sufficient if in writing and hand-delivered or sent by mail to the last known address of the Director. 
  

	9.14	Deduction Limitation on Benefit Payments. If the Company reasonably anticipates that 

	 	the Company’s deduction with respect to any distribution under this Agreement would be limited or eliminated by application of Code Section 162(m), then to the extent
deemed necessary by the Company to ensure that the entire amount of any distribution from this Agreement is deductible, the Company may delay payment of any amount that would otherwise be distributed under this Agreement. The delayed amounts shall
be distributed to the Director (or the Beneficiary in the event of the Director’s death) at the earliest date the Company reasonably anticipates that the deduction of the payment of the amount will not be limited or eliminated by application of
Code Section 162(m). 

  

	9.15	Compliance with Section Code 409A. This Agreement shall be interpreted and administered consistent with Code Section 409A. 

 IN WITNESS WHEREOF, the Director and a duly authorized representative of the Company have signed this Agreement. 
  

					
	DIRECTOR:	  	COMPANY:
		
		  	BANK OF THE SIERRA
	  	  	By	  	  
		  	Title

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