Document:

MUTUALBANK

2012
Executive Variable Compensation Plan

 

 

 

INTRODUCTION

 

 

MutualBank
recognizes that the achievement of strategies and goals will determine organizational excellence. The responsibility for this task
lies directly with the Executives of MutualBank. This Executive Variable Compensation Plan is intended to incent all Executives
to achieve desired earnings performance. The achievement of desired earnings will require strategic thinking, dedicated effort,
a commitment to long-term success and a sincere desire to achieve through teamwork. 

 

 

 

GOALS

 

 

		·	Ensure all Executive’s activities are
consistent with the strategic performance goals of MutualBank.

 

		·	Achieve the earnings
objective set forth in the MutualBank Strategic Plan.

 

		·	Enhance the level
of teamwork throughout the Bank.

 

		·	Reward success,
encouraging individual commitment to goal achievement.

 

		·	Maintain competitive
pay practices for all Executives.

 

 

All Executive
Variable Compensation Plan objectives are designed to stretch the capabilities of participants. The achievement of these goals
will have significant impact on the success of MutualBank. 

 

 

    	1

    	 

    

 

ADMINISTRATIVE
GUIDELINES

 

 

ESTABLISHMENT
AND ADMINISTRATION:

 

The Board
of Directors establishes this Executive Variable Compensation Plan (Plan). 

This
Plan is administered by the Compensation Committee and the Board will provide oversight. The Board expressly reserves the right
to modify, repeal or discontinue this Plan at any time.

 

EFFECTIVE
DATE OF PLAN:

 

The performance
period of the plan is January 1, 2012 through December 31, 2012. This performance period to be used in determining the attainment
of specific Earnings Per Share (EPS) objectives. 

 

QUALIFICATION
FOR VARIABLE COMPENSATION PAYMENT:

 

Participants
must be employed at the end of the performance period (fiscal year) in order to receive any variable compensation payment. Participation
in this Plan does not constitute a contract of employment. Any participant terminated for cause or resigning for cause prior to
payment of variable compensation will be ineligible. A participant with a performance rating of below expectations for a period
of more than sixty consecutive days will not qualify for variable compensation payment for that period of time. 

 

VARIABLE
COMPENSATION PAYMENT CALCULATION:

 

A participant's
variable compensation payment will be calculated based on the total of bi-weekly salary payments only. 

 

RETIREMENT/ABSENCE/DEATH:

 

In the
event of retirement or death, a participant's variable compensation payment will be calculated based upon the amount of time actively
worked during the performance period. If a participant is absent from work for a period of more than sixty consecutive days, payment
will be calculated based upon the amount of time actively worked during the performance period.

 

VARIABLE
COMPENSATION DISTRIBUTION:

 

Variable
compensation payments shall be paid as soon as may be feasible after the close of each fiscal year. All payments are subject to
income tax withholdings and are treated as "ordinary income" to each participant, and will be reported as income in the
year the incentive payment is received.

 

METHOD
OF VARIABLE COMPENSATION PAYMENT:

 

All payments
will be paid as a deposit into a participant's direct deposit payroll account. There are no provisions in this Plan for payments
in property or equity of the Corporation. 

 

PERFORMANCE
MEASUREMENT: 

 

Each
participant’s payment will be determined by the achievement of specific EPS performance, and is specific to the individual.

 

CLAWBACK
PROVISION:

 

If
in any event, variable compensation is paid based upon performance measurements that are subsequently deemed to be inaccurate due
to misstatement or misrepresentation, all payments made based upon that error are to be repaid to the Company. 

 

    	2EXHIBIT 4.1 

 

MICRO IMAGING TECHNOLOGY, INC. 2012 Employee
Benefit Plan 

 

SECTION 1.

INTRODUCTION 

 

1.1           Establishment.
Effective as provided in Section 17, Micro Imaging Technology, Inc., a California corporation (the "Company"), hereby
adopts this plan of stock-based compensation for selected Eligible Participants of the Company and affiliated corporation. This
plan shall be known as the Micro Imaging Technology, Inc. 2012 Employee Benefit Plan (the "Plan").

 

1.2           Purpose.
The purpose of this Plan is to promote the best interest of the Company, and its stockholders by providing a means of non-cash
remuneration to selected Eligible Participants.

 

SECTION 2.

DEFINITIONS 

 

The following definitions shall be applicable to the terms used
in this Plan:

 

2.1           "Affiliated
Corporation" means any corporation that is either a parent corporation with respect to the Company or a subsidiary corporation
with respect to the Company (within the meaning of Sections 424(e) and (f), respectively, of the Internal Revenue Code).

 

2.2           "Code"
means the Internal Revenue Code of 1986, as it may be amended from time to time.

 

2.3           "Committee"
means a committee designated by the Board of Directors to administer this Plan or, if no committee is so designated, the Board
of Directors. Any Committee member who is also an Eligible Participant may receive an Option or Stock Award only if he abstains
from voting in favor of a grant to himself, and the grant is determined and approved by the remaining Committee members. The Board
of Directors, in its sole discretion, may at any time remove any member of the Committee and appoint another Director to fill any
vacancy on the Committee.

 

2.4           "Common
Stock" means the Company's $0.01 par value common stock.

 

2.5           "Company"
means Micro Imaging Technology, Inc., a California corporation.

 

2.6           "Effective
Date" means the effective date of this Plan, as set forth in Section 17 hereof.

 

2.7           "Eligible
Participant" means any employee, director, officer, consultant, or advisor of the Company who is determined (in accordance
with the provisions of Section 4 hereof) to be eligible to receive an Option or Stock Award hereunder.

 

    	 

    	 

    

 

2.8           "Option"
means the grant to an Eligible Participant of a right to acquire shares of Common Stock.

 

2.9           "Plan"
means this Micro Imaging Technology, Inc. 2012 Employee Benefit Plan dated February 14, 2012.

 

2.10         "Stock
Award" means the grant to an Eligible Participant of shares of Common Stock issuable directly under this Plan rather than
upon exercise of an Option. Wherever appropriate, words used in this Plan in the singular may mean the plural, the plural may mean
the singular, and the masculine may mean the feminine.

 

SECTION 3.          ADOPTION
AND ADMINISTRATION OF THIS PLAN 

 

Upon adoption by the Company's Board of Directors, this Plan became
effective as of February 14, 2012. In the absence of contrary action by the Board of Directors, and except for action taken by
the Committee pursuant to Section 4 in connection with the determination of Eligible Participants, any action taken by the Committee
or by the Board of Directors with respect to the implementation, interpretation or administration of this Plan shall be final,
conclusive and binding.

 

SECTION 4.           ELIGIBILITY
AND AWARDS 

 

The Committee shall determine at any time and from time to time
after the effective date of this Plan: (i) the Eligible Participants; (ii) the number of shares of Common Stock issuable directly
or to be granted pursuant to an Option; (iii) the price per share at which each Option may be exercised, in cash or cancellation
of fees for services for which the Company is liable, if applicable, or the value per share if a direct issue of stock pursuant
to a Stock Award; and (iv) the terms on which each Option may be granted. Such determination, as may from time to time be amended
or altered at the sole discretion of the Committee. Notwithstanding the provisions of Section 3 hereof, no such determination by
the Committee shall be final, conclusive and binding upon the Company unless and until the Board of Directors has approved the
same; provided, however, that if the Committee is composed of a majority of the persons then comprising the Board of Directors
of the Company, such approval by the Board of Directors shall not be necessary.

 

SECTION 5.           GRANT
OF OPTION OR STOCK AWARD 

 

Subject to the terms and provisions of this Plan, the terms and
conditions under which an Option or Stock Award may be granted to an Eligible Participant shall be set forth in a written agreement
(i.e., a Consulting Agreement, Services Agreement, Fee Agreement, or Employment Agreement) or, if an Option, a written Grant of
Option. (The form shall be determined by the Committee, in its sole discretion, or may be determined by the Board of Directors)

 

SECTION 6.           TOTAL
NUMBER OF SHARES OF COMMON STOCK 

 

The total number of shares of Common Stock reserved for issuance
by the Company either directly as Stock Awards or underlying Options granted under this Plan shall not be more than 60,000,000,
approved by the Board of Directors on February 14, 2012. The total number of shares of Common Stock reserved for such issuance
may be increased only by a resolution adopted by the Board of Directors and amendment of this Plan. Such Common Stock may be authorized
and unissued or reacquired Common Stock of the Company.

 

    	 

    	 

    

 

SECTION 7.           PURCHASE
OF SHARES OF COMMON STOCK 

 

7.1           As
soon as practicable after the determination by the Committee and approval by the Board of Directors (if necessary, pursuant to
Section 4 hereof) of the Eligible Participants and the number of shares an Eligible Participant may be issued directly as a Stock
Award or eligible to purchase pursuant to an Option, the Committee shall give written notice thereof to each Eligible Participant,
which notice may be accompanied by the Grant of Option, if appropriate, to be executed by such Eligible Participant.

 

7.2           The
negotiated cost basis of stock issued directly as a Stock Award or the exercise price for each Option to purchase shares of Common
Stock pursuant to paragraph 7.1 shall be as determined by the Committee, it being understood that the price so determined by the
Committee may vary from one Eligible Participant to another. In computing the negotiated direct issue price as a Stock Award or
the Option exercise price per share of Common Stock, the Committee shall take into consideration, among other factors, the restrictions
set forth in Section 11 hereof.

 

SECTION 8.           TERMS
AND CONDITIONS OF OPTIONS 

 

The Committee shall determine the terms and conditions of each Option
granted to Eligible Participants, which terms shall be set forth in writing. The terms and conditions so set by the Committee may
vary from one Eligible Participant to another. In the event that all the Committee approves an Option permitting deferred payments,
the Eligible Participant's obligation to pay for such Common Stock may be evidenced by a promissory note executed by such Eligible
Participant and containing such modifications thereto and such other provisions as the Committee, in its sole discretion, may determine.

 

SECTION 9.           DELIVERY
OF SHARES OF COMMON STOCK UPON EXERCISE OF OPTION 

 

The Company shall deliver to each Eligible Participant such number
of shares of Common Stock as such Eligible Participant is entitled to receive pursuant to a Stock Award or elects to purchase upon
exercise of the Option. Such shares, which shall be fully paid and nonassessable upon the issuance thereof (unless a portion or
all of the purchase price shall be paid on a deferred basis) shall be represented by a certificate or certificates registered in
the name of the Eligible Participant and stamped with an appropriate legend referring to the restrictions thereon, if any. Subject
to the terms and provisions of the laws of the State of California and the written agreement to which he is a party, an Eligible
Participant shall have all the rights of a stockholder with respect to such shares, including the right to vote the shares and
to receive all dividends or other distributions paid or made with respect thereto (except to the extent such Eligible Participant
defaults under a promissory note, if any, evidencing the deferred purchase price for such shares), provided that such shares shall
be subject to the restrictions hereinafter set forth. In the event of a merger or consolidation to which the Company is a party,
or of any other acquisition of a majority of the issued and outstanding shares of Common Stock of the Company involving an exchange
or a substitution of stock of an acquiring corporation for Common Stock of the Company, or of any transfer of all or substantially
all of the assets of the Company in exchange for stock of an acquiring corporation, a determination as to whether the stock of
the acquiring corporation so received shall be subject to the restrictions set forth in Section 11 shall be made solely by the
acquiring corporation.

 

    	 

    	 

    

 

SECTION 10.           RIGHTS
OF EMPLOYEES; ELIGIBLE PARTICIPANTS 

 

10.1         Employment.
Nothing contained in this Plan or in any Option or Stock Award granted under this Plan shall confer upon any Eligible Participant
any right with respect to the continuation of his or her employment by the Company or any Affiliated Corporation, or interfere
in any way with the right of the Company or any Affiliated Corporation, subject to the terms of any separate employment agreement
to the contrary, at any time to terminate such employment or to increase or decrease the compensation of the Eligible Participant
from the rate in existence at the time of the grant of an Option or Stock Award. Whether an authorized leave of absence shall constitute
termination of employment shall be determined by the Committee at the time.

 

10.2         Non-transferability.
No right or interest of any Eligible Participant in an Option or Stock Award shall be assignable or transferable during the lifetime
of the Eligible Participant, either voluntarily or involuntarily, or subjected to any lien, directly or indirectly, by operation
of law, or otherwise, including execution, levy, garnishment, attachment, pledge or bankruptcy. However, the Board of Directors
may, in its sole discretion, permit transfers to family members if and to the extent such transfers are permissible under applicable
securities laws. In the event of an Eligible Participant's death, an Eligible Participant's rights and interest in an Option or
Stock Award shall be transferable by testamentary will or the laws of descent and distribution, and delivery of any shares of Common
Stock due under this Plan shall be made to, and exercise of any Options may be made by, the Eligible Participant's legal representatives,
heirs or legatees. If in the opinion of the Committee a person entitled to payments or to exercise rights with respect to this
Plan is unable to care for his or her affairs because of mental condition, physical condition, or age, payment due such person
may be made to, and such rights shall be exercised by, such person's guardian, conservator or other legal personal representative
upon furnishing the Committee with evidence satisfactory to the Committee of such status.

 

SECTION 11.           GENERAL
RESTRICTIONS 

 

11.1         Representations.
Eligible Participants to whom an Option or Stock Award is granted shall represent to the Company and agree, that as a condition
of exercising such Option, or receiving such Stock Award, in substance and form satisfactory to the Company and its counsel that
such person is acquiring the Common Stock subject to the Option or Stock Award for his or her own account for investment and not
with any present intention of selling or otherwise distributing the same, other than pursuant to an effective registration statement
under the Securities Act, and to such other effects as the Company deems necessary or appropriate in order to comply with federal
and applicable state securities laws.

 

    	 

    	 

    

 

Shares shall not be issued under the Plan unless the issuance and
delivery of such shares complies with (or is exempt from) all applicable requirements of law, including (without limitation) the
Securities Act, the rules and regulations promulgated thereunder, state securities laws and regulations, and the regulations of
any stock exchange on which the Company's securities may then be listed, and the Company has obtained the approval of or a favorable
ruling from any governmental agency that the Company determines to be necessary or advisable.

 

11.2         Restrictions
on Transfer of Common Stock. The shares of Common Stock issuable directly as a Stock Award or upon exercise of an Option may
not be offered for sale, sold or otherwise transferred except pursuant to an effective registration statement or pursuant to an
exemption from registration, the availability of which is to be established to the satisfaction of the Company, and any certificates
representing shares of Common Stock will bear a legend to that effect. However, the Company may, in the sole discretion of the
Board of Directors, register under the Securities Act some or all of the shares of Common Stock reserved for issuance under this
Plan. Special resale restrictions may, however, continue to apply to officers, directors, control shareholders and affiliates of
the Company and such persons will be required to obtain an opinion of counsel as regards their ability to resell shares received
pursuant to this Plan.

 

11.3         Compliance
with Securities Laws. Each Option or Stock Award shall be subject to the requirement that if at any time counsel to the Company
shall determine that the listing, registration or qualification of the shares of  Common Stock subject to such Option or Stock
Award upon any securities exchange or under any state or federal law, or the consent or approval of any governmental or regulatory
body, is necessary as a condition of, or in connection with, the issuance or purchase of shares thereunder, such Option or Stock
Award may not be accepted or exercised in whole or in part unless such listing, registration, qualification, consent or approval
shall have been effected or obtained on conditions acceptable to the Committee. Nothing herein shall be deemed to require the Company
to apply for or to obtain such listing, registration or qualification.

 

11.4         Changes
in Accounting Rules. Notwithstanding any other provision of this Plan to the contrary, if, during the term of this Plan, any
changes in the financial or tax accounting rules applicable to Options or Stock Awards shall occur that, in the sole judgment of
the Committee, may have a material adverse effect on the reported earnings, assets or liabilities of the Company, the Committee
shall have the right and power to modify as necessary, or cancel, any then outstanding and unexercised Options.

 

SECTION 12.           COMPLIANCE
WITH TAX REQUIREMENTS 

 

Each Eligible Participant shall be liable for payment of all applicable
federal, state and local income taxes incurred as a result of the receipt of a Stock Award or an Option, the exercise of an Option,
and the sale of any shares of Common Stock received pursuant to a Stock Award or upon exercise of an Option. The Company may be
required, pursuant to applicable tax regulations, to withhold taxes for an Eligible Participant, in which case the Company's obligations
to deliver shares of Common Stock upon the exercise of any Option granted under this Plan or pursuant to any Stock Award, shall
be subject to the Eligible Participant's satisfaction of all applicable federal, state and local income and other income tax withholding
requirements.

 

    	 

    	 

    

 

SECTION 13.          PLAN
BINDING UPON ASSIGNS OR TRANSFEREES 

 

In the event that, at any time or from time to time, any Option
or Stock Award is assigned or transferred to any party (other than the Company) pursuant to the provisions of Section 10.2 hereof,
such party shall take such Option or Stock Award pursuant to all provisions and conditions of this Plan, and, as a condition precedent
to the transfer of such interest, such party shall agree (for and on behalf of himself or itself, his or its legal representatives
and his or its transferees and assigns) in writing to be bound by all provisions of this Plan.

 

SECTION 14.          COSTS
AND EXPENSES 

 

All costs and expenses with respect to the adoption, implementation,
interpretation and administration of this Plan shall be borne by the Company.

 

SECTION 15.          CHANGES
IN CAPITAL STRUCTURE OF THE COMPANY 

 

Appropriate adjustments shall be made to the number of shares of
Common Stock issuable pursuant to an incomplete or pending Stock Award that has not yet been delivered or upon exercise of any
Options and the exercise price thereof in the event of: (i) a subdivision or combination of any of the shares of capital stock
of the Company; (ii) a dividend payable in shares of capital stock of the Company; (iii) a reclassification of any shares of capital
stock of the Company; or (iv) any other change in the capital structure of the Company.

 

SECTION 16.          PLAN
AMENDMENT, MODIFICATION AND TERMINATION 

 

The Board, upon recommendation of the Committee or at its own initiative,
at any time may terminate and at any time and from time to time and in any respect, may amend or modify this Plan, including:

 

(a) Increase the total amount of Common Stock that may be awarded
under this Plan, except as provided in Section 15 of this Plan;

 

b) Change the classes of persons from which Eligible Participants
may be selected or materially modify the requirements as to eligibility for participation in this Plan;

 

(c) Increase the benefits accruing to Eligible Participants; or

 

(d) Extend the duration of this Plan.

 

Any Option or other Stock Award granted to a Eligible Participant
prior to the date this Plan is amended, modified or terminated will remain in effect according to its terms unless otherwise agreed
upon by the Eligible Participant; provided, however, that this sentence shall not impair the right of the Committee to take whatever
action it deems appropriate under Section 11 or Section 15. The termination or any modification or amendment of this Plan shall
not, without the consent of an Eligible Participant, affect his rights under an Option or other Stock Award previously granted
to him.

 

    	 

    	 

    

 

SECTION 17.          EFFECTIVE DATE OF THIS PLAN 

 

17.1         Effective
Date. This Plan is effective as of February 14, 2012, the date it was adopted by the Board of Directors of the Company.

 

17.2         Duration
of this Plan. This Plan shall terminate at midnight on February 13, 2017, which
is the day before the fifth anniversary of the Effective Date, and may be extended thereafter or terminated prior thereto by action
of the Board of Directors; and no Option or Stock Award shall be granted after such termination. Options and Stock Awards outstanding
at the time of this Plan termination may continue to be exercised, or become free of restrictions, in accordance with their terms.

 

SECTION 18.          BURDEN AND BENEFIT 

 

The terms and provisions of this Plan shall be binding upon, and
shall inure to the benefit of, each Eligible Participant, his executives or administrators, heirs, and personal and legal representatives.

 

Approved by the Board of Directors of Micro Imaging Technology,
Inc. on February 14, 2012.

 

Dated: February 14, 2012

 

/s/ Michael W. Brennan

 

Michael W. Brennan, Chairman

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