Document:

Exhibit

EXHIBIT 10.12
EMPLOYMENT AGREEMENT
THIS AGREEMENT (the “Agreement”) is made and entered into on December 21, 2017 to be effective as of January 1, 2018 (the “Effective Date”), by and among ATLANTIC CAPITAL BANCSHARES, INC., a Georgia corporation (the “Holding Company”); ATLANTIC CAPITAL BANK, N.A., a wholly-owned banking subsidiary of the Holding Company (the “Bank”) (collectively, the “Employers”); and KURT A. SHREINER (“Executive”).
WITNESSETH:
WHEREAS, the Boards of Directors (or the “Boards”) of Employers consider the establishment and maintenance of highly competent and skilled management personnel for the Bank and the Holding Company to be essential to protect and enhance their best interests, and are desirous of inducing Executive to remain in the employ of the Holding Company and the Bank, subject to the Agreement’s terms and conditions;
WHEREAS, Executive desires to remain employed by Employers, subject to the Agreement’s terms and conditions; and
WHEREAS, the parties agree that, from and after the Effective Date of this Agreement, the provisions of this Agreement shall supersede the terms of any previous offer letter or other employment arrangement and control with respect to the parties’ rights and obligations resulting from Executive’s employment with Employers.
NOW, THEREFORE, for and in consideration of the Agreement’s mutual covenants, and other good and valuable consideration (including benefits to which Executive is not otherwise entitled), the receipt and legal sufficiency of which are hereby acknowledged, the parties agree as follows:
1.Definitions.  In addition to other terms defined in the Agreement, the following terms used in this Agreement shall have the following meanings: 
(a)    “Base Salary” shall mean the annual base cash compensation (excluding Incentive Compensation as defined in Agreement paragraph 4(b) and other benefits) payable to Executive pursuant to Agreement paragraph 4(a).
(b)    “Change of Control” shall be deemed to have occurred:
(i)    Upon the consummation of any transaction in which any person, partnership, financial institution, corporation, other organization or group, acting alone or in concert, shall own, control, or hold the power to vote more than forty percent (40%) of the voting securities of the Bank or the Holding Company; provided, however, that “Change of Control” shall not include (A) the purchase by underwriters of voting securities of the Bank or the Holding Company pursuant to a bona fide underwritten public offering of such securities or (B) if the power to vote 

more than forty percent (40%) of the voting securities of the Bank or the Holding Company results from an acquisition by the Bank or the Holding Company, by any employee benefit plan (or related trust) sponsored or maintained by the Bank or the Holding Company or by any person, partnership, financial institution, corporation, other organization or group pursuant to a transaction that would not constitute a Change in Control under subsection (b)(ii) below;
(ii)    Upon the consummation of any transaction in which the outstanding voting securities of the Holding Company or the Bank, or substantially all of the assets of the Holding Company or the Bank, shall be sold or transferred to, or consolidated or merged with, another financial institution, corporation or other organization unless immediately following such transaction all or substantially all of the persons who were beneficial owners of the voting securities of the Holding Company own, directly or indirectly, no less than a majority of the outstanding voting shares of the parent or surviving corporation, in substantially the same proportion as their ownership of such voting securities immediately prior to such transaction; 
(iii)    If, within any rolling twelve-month period (beginning on or after the Effective Date) the persons who were directors of the Holding Company immediately before the beginning of such twelve-month period (the “Incumbent Directors”) shall cease to constitute at least a majority of the Board of Directors; provided that any director who was not a director as of the beginning of such twelve-month period shall be deemed to be an Incumbent Director if that director were elected to the Board of Directors by, or on the recommendation of or with the approval of, at least two-thirds (2/3) of the directors who then qualified as Incumbent Directors; and provided further that no director whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of directors shall be deemed to be an Incumbent Director; or
(iv)    A complete liquidation or dissolution of the Holding Company or the Bank except pursuant to a transaction that would not constitute a Change in Control under subsection (b)(ii) above.  
(c)    “Code” shall mean the Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.
(d)    “Disability” shall mean a condition for which benefits would be payable to Executive under any long-term disability insurance coverage (without regard to the application of any elimination period requirement) then provided to Executive by Employers; or, if no such coverage is then being provided, the inability of Executive to perform the material aspects of Executive’s duties under this Agreement with or without reasonable accommodation for a period of at least ninety (90) substantially consecutive days, as determined by an independent physician selected by Employers with Executive’s consent, which consent shall not be unreasonably withheld.  

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(e)    “Event of Termination” shall mean (i) Executive’s termination of his employment under this Agreement for Good Reason or (ii) Employers’ termination of Executive’s employment under this Agreement for any reason other than (A) Termination for Cause, (B) termination following a Disability or (C) termination due to death.
(f)    “Good Reason” shall mean if, (x) during the term of Executive’s employment under this Agreement and (y) without Executive’s consent, the circumstances of Executive’s employment as provided in Agreement paragraphs 2, 3, 4, 5, and 6 of this Agreement have been materially and adversely altered by Employers, whether by: 
(i)    any material and adverse breach of this Agreement by Employers (including the failure of Employers to comply with the material provisions of Agreement paragraphs 2, 3, 4, and 5 of this Agreement but not including a reduction in Executive’s Base Salary in connection with a proportionate reduction in the base salaries of all other senior executives);
(ii)    any material and adverse change in the title, reporting relationship(s), authority, duties or responsibilities of Executive;
(iii)    any assignment of duties that are materially and adversely inconsistent with Executive’s position and duties described in this Agreement;
(iv)    the failure of Employers to assign this Agreement to a successor in interest or the failure of the successor in interest to explicitly assume and agree to be bound by this Agreement; or
(v)    the relocation of Executive to any principal place of employment other than at the Employers’ main office in Atlanta, Georgia, or at such other location within thirty (30) miles of the main office in Atlanta, Georgia, as Employers may from time to time designate, or any requirement of Employers that Executive relocate his residence outside the Atlanta-Sandy Springs-Roswell, Georgia Metropolitan Statistical Area; provided, however, that this subparagraph (v) shall not apply in the case of business travel which requires Executive to relocate temporarily for periods of ninety (90) days or less.  
Notwithstanding the foregoing, no event shall constitute Good Reason unless Executive notifies Employers’ Boards of Directors in writing regarding the existence of the condition(s) constituting Good Reason no later than thirty (30) days after Executive knows or should reasonably know of the condition(s), Employers do not cure said condition within thirty (30) days after their receipt of Executive’s written notice and, in the event Employers do not cure said condition, Executive terminates his employment within thirty (30) days after the period for curing said condition has expired.  
(g)    “Termination for Cause” shall have the meaning provided in Agreement paragraph 7(a).

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2.    Employment.  Employers agree to continue to employ Executive, and Executive agrees to continue to accept such employment, as Executive Vice President, Corporate Financial Services Executive, of the Bank and the Holding Company, for the period stated in Agreement paragraph 3(a) (unless earlier terminated as set forth in this Agreement) upon the terms and conditions set forth in this Agreement.  Executive agrees to perform faithfully such duties, responsibilities, and authorities as are customary for the Executive Vice President, Corporate Financial Services Executive, of businesses of similar size and businesses as Employers as they may exist from time to time and as are consistent with such positions and status and such other duties, positions, responsibilities and authorities as the Chief Executive Officer of Employers (the “Chief Executive Officer”) or Employers’ Boards of Directors may assign to him from time to time to the extent not materially and adversely inconsistent with Executive’s position as Executive Vice President, Corporate Financial Services Executive, or his duties described in this Agreement.  At all times, Executive shall manage and conduct the business of Employers in accordance with the policies of Employers’ and in compliance with applicable law, rules and regulations.  Executive shall report to the Chief Executive Officer or Employers’ Boards of Directors, and responsibility for the supervision of Executive shall rest with the Chief Executive Officer and the Boards of Directors of Employers, which shall review Executive’s performance at least annually.  The Chief Executive Officer or Employers’ Boards of Directors shall also have the authority to terminate Executive, subject to the provisions outlined in Agreement paragraphs 6 and 7.
3.    Term and Duties.
(a)    Term of Employment.  This Agreement and the period of Executive’s employment under this Agreement shall be deemed to have commenced as of the Effective Date and shall continue for a period of thirty-six (36) full calendar months (the “Employment Term”), unless earlier terminated pursuant to Agreement paragraphs 6 or 7.
(b)    Performance of Duties.  During the period of employment under this Agreement, except for periods of illness, disability, reasonable vacation periods, and reasonable leaves of absence, all subject to policies generally applicable to senior executives of the Holding Company or the Bank, Executive shall devote substantially all of his business time, attention, skill, and efforts to the faithful performance of his Agreement duties.  Executive shall be eligible to participate as a member in community, civic, religious, or similar organizations, and may pursue personal investments, which in either event, do not present any material conflict of interest with Employers (except with prior written approval by the Boards of Directors), or unfavorably affect the performance of Executive’s duties pursuant to this Agreement.  In addition and as applicable, Executive shall be entitled to serve as a member of the boards of directors/trustees of such other public and/or private companies or organizations as the Boards of Directors of Employers shall pre-approve in writing.
(c)    Office of Executive.  The office of Executive shall be located at the Bank’s main office in Atlanta, Georgia, or at such other location within thirty (30) miles of the main office in Atlanta, Georgia, as Employers may from time to time designate.

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(d)    No Other Agreement.  Executive shall have no employment contract or other written or oral agreement concerning employment with any organization, entity or person other than Employers during the term of his employment under this Agreement, except for such arrangements as the Boards of Directors of Employers shall pre-approve in writing.
(e)    Resignation from the Boards of Directors And Other Positions.  If Executive’s employment with Employers is terminated by Employers for any reason, or if Executive terminates employment with Employers for any reason, then Executive agrees that he shall, to the extent applicable, tender his resignation from the Boards of Directors of Employers and from any company affiliated with Employers for which Executive serves as a director or officer at the time of his employment termination or resignation.  The decision whether to accept such resignation shall be within the sole discretion of the Boards of Directors of Employers and any such affiliated company.
4.    Compensation.
(a)    Base Salary.  Subject to the provisions of Agreement paragraphs 6 and 7, Employers shall pay Executive, as compensation for serving as the Executive Vice President, Corporate Financial Services Executive of Employers, an initial Base Salary of $320,025 per year (prorated for any partial year); such initial Base Salary, or any increased Base Salary, shall be payable in substantially equal installments in accordance with Employers’ normal pay practices, but not less frequently than monthly.  Executive’s Base Salary shall be reviewed and approved at least annually by Employers’ Boards of Directors or the Joint Compensation Committee of the Boards of Directors of Employers (the “Compensation Committee”).  The Boards of Directors or the Compensation Committee, if warranted in their sole discretion, may increase Executive’s Base Salary to reflect Executive’s performance.  The Boards of Directors or the Compensation Committee may not decrease Executive’s Base Salary unless all base salaries of other senior executives are decreased proportionately.  
(b)    Incentive Compensation.  Executive shall be eligible to participate in any short-term incentive plan (“STIP”) and long-term incentive plan (“LTIP”) (or, in each case, successor plans or arrangements) as may be established by Employers for senior executives at levels comparable to those offered to other comparable senior executives, with award opportunities established for each applicable performance period by the Boards or the Compensation Committee (respectively, “Short-Term Incentive Compensation” and “Long-Term Incentive Compensation” and together “Incentive Compensation”).  Threshold, target, superior and maximum corporate performance levels may be established by the Boards or the Compensation Committee for each performance period based on earnings growth, profitability, asset quality and/or other performance metrics as determined by the Boards or the Compensation Committee and shall be subject to the terms of the specific plan and award agreement (or other similar documentation).  Specific STIP and LTIP criteria may change from time to time.  Entitlement to and payment of Incentive Compensation is subject to the discretion and approval of the Boards or the Compensation Committee.  Any Short-Term Incentive Compensation shall be payable, in the discretion of 

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the Boards or the Compensation Committee, in cash or shares of Holding Company common stock (or a combination thereof) by no later than March 15 of the year following the calendar year in which the STIP award is earned, in accordance with Employers’ normal practices for the payment of Short-Term Incentive Compensation (or otherwise in a manner intended to be exempt from, or to comply with Code Section 409A). To be entitled to any payment of Short-Term Incentive Compensation from Employers, Executive must be employed by an Employer on the last day of the applicable performance period to which the Short-Term Incentive Compensation relates except as otherwise provided in Agreements paragraph 6 and 7 herein. Any Long-Term Incentive Compensation earned shall be payable, in the discretion of the Boards or the Compensation Committee, in cash or shares of Holding Company common stock (or a combination thereof) by no later than March 15 of the year immediately following the end of the applicable performance year period, in accordance with Employers’ normal practices for the payment of Long-Term Incentive Compensation (or otherwise in a manner intended to be exempt from, or comply with, Code Section 409A).  To be entitled to any payment of Long-Term Incentive Compensation from Employers, Executive must be employed by an Employer on the last day of the applicable performance period to which the Long-Term Incentive Compensation relates, except as otherwise provided in Agreements paragraphs 6 and 7 herein and subject to LTIP terms. 
(c)    Equity Awards.  Executive shall be eligible to participate in any stock option, restricted stock award, restricted stock unit or other equity incentive plans offered by Employers at a level comparable to that offered to other senior executives.  Any such equity awards shall be subject to the terms and conditions of the applicable stock plan and applicable award agreements and further subject to such terms and conditions as may be established by the Boards or the Compensation Committee.
(d)    Reimbursement of Expenses.  Subject to Agreement paragraph 7(e), Employers shall pay or reimburse Executive for all reasonable travel and entertainment expenses incurred by Executive in the performance of his obligations and duties under this Agreement, as provided in Employers’ policies and procedures, and as Employers’ Boards of Directors have adopted or may adopt in the future.  In the event of Executive’s termination of employment pursuant to Agreement paragraph 6 or Agreement paragraph 7, Executive shall be entitled to reimbursement of reasonable unreimbursed expenses incurred by Executive prior to his termination of employment, subject to the terms of this Agreement paragraph 4(d) and Agreement paragraph 7(e).
5.    Participation in Benefit and Other Plans.
(a)    Incentive, Savings, Retirement and Other Plans; No Duplicate Benefits.  During the term of Executive’s employment under this Agreement, Executive shall be entitled to participate in all other incentive, stock option, stock appreciation right, restricted stock award, restricted stock unit, savings, and retirement plans, practices, policies, and programs applicable generally to senior executives of Employers, on a comparable basis as applicable to such other senior executives, and consistent with Executive’s positions with the Holding Company and the Bank, in accordance with and subject to the terms of such 

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plans, practices, policies and programs.  Notwithstanding the foregoing, Executive acknowledges and agrees that, in the event that he is a participant in Employers’ Change in Control Plan, 2017 Change in Control Plan, Severance Plan and/or similar plans or arrangements, he shall not be entitled to duplicate severance and/or change in control benefits under both this Agreement (including but not limited to benefits pursuant to Agreement paragraph 6 and/or Agreement paragraph 7) and such other plans and arrangements, and that any severance and/or change in control benefits he receives under this Agreement shall be in lieu of comparable benefits under such other plans or arrangements.
(b)    Health and Welfare Benefit Plans.  During the term of Executive’s employment under this Agreement, Executive and/or Executive’s family, as the case may be, shall be eligible for participation in and shall receive all benefits under any health and welfare benefit plans, practices, policies and programs provided by Employers, to the extent applicable generally to senior executives of Employers and subject to the terms, conditions, and eligibility requirements therefore as may be prescribed by Employers or set forth in the terms of such plans, practices, policies and programs from time to time.
(c)    Vacation and Sick Leave.  Executive shall be entitled, without loss of pay, to be voluntarily absent from work or the performance of his work duties under this Agreement as recited below, all voluntary absences to count as vacation time, provided that:
(i)    Executive shall be entitled to not less than four (4) weeks of annual paid vacation or the amount of vacation in accordance with the policies that the Boards of Directors of Employers periodically establish for senior management employees of Employers.
(ii)    Executive shall not receive any additional compensation from Employers on account of his failure to take a vacation, and Executive shall not accumulate or carryover unused vacation from one fiscal year to the next, except as authorized by Employers’ Boards of Directors.
(iii)    In addition to paid vacations under this Agreement, Executive shall be entitled, without loss of pay, to be voluntarily absent from work under this Agreement for such additional periods of time and for such valid and legitimate reasons as the Boards of Directors of Employers may in their discretion approve.  It is also provided that the Boards of Directors of Employers may grant to Executive a leave or leaves of absence, with or without pay, at such time or times and upon such terms and conditions as the Boards of Directors of Employers in their discretion determine.
(iv)    Executive shall be further entitled to an annual sick leave benefit as may be established by the Boards of Directors of Employers.
(v)    In the event of the termination of Executive’s employment pursuant to Agreement paragraph 6 or Agreement paragraph 7, Executive shall be entitled to payment of accrued but unused vacation pay if and as determined in accordance with 

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Employer’s plans and policies, payable on the same terms as earned but unpaid Base Salary as provided under the relevant provisions of Agreement paragraph 6 or Agreement paragraph 7, as applicable.  
6.    Benefits Payable Upon Termination due to Death or Disability.
(a)    Death Benefits.  Executive’s employment under this Agreement shall terminate automatically upon Executive’s death.  If Executive’s employment is terminated by reason of death, Employers shall pay Executive, or as applicable, his designated beneficiary or beneficiaries, or to his estate, as the case may be, any accrued but unpaid Base Salary through the date of termination of Executive’s employment (payable in accordance with Employers’ normal payroll practices), and any earned but unpaid Incentive Compensation for any prior period, pro rata and to the extent earned (payable on the schedule as provided in Agreement paragraph 4(b) above).  Any outstanding equity awards shall be subject to the terms and conditions of the applicable plan and applicable award agreement.  Executive shall have no right to any other compensation or benefits (except for vested benefits under any employee benefit plan in accordance with the terms of the plan and any right to continued health coverage under COBRA or similar state law) for any period after a termination on account of Executive’s death.  
(b)    Disability Benefits.  Following an event of Disability of Executive, Employers may terminate Executive’s employment.  In the event of Executive’s termination following a Disability, Employers shall pay Executive any accrued but unpaid Base Salary through the date of termination of Executive’s employment (payable in accordance with Employers’ normal payroll practices), and any earned but unpaid Incentive Compensation for any prior period, pro rata and to the extent earned (payable on the schedule as provided in Agreement paragraph 4(b) above).  In addition, subject to Executive’s compliance with the covenants contained in Agreement paragraph 9, Employers shall further pay Executive 100% of Executive’s then current Base Salary at the time of termination of employment for a period of twelve (12) months (payable in accordance with Employers’ normal payroll practices, without interest), commencing on the first normal payroll date that occurs on or after sixty (60) days following the date of termination of employment.  Any outstanding equity awards shall be subject to the terms and conditions of the applicable plan and applicable award agreement.  
(c)    Additional Disability Provisions; Offset.  In addition, Employers shall continue to provide Executive and Executive’s dependents who are qualified beneficiaries with health insurance coverage as if he were an active employee for a period not to exceed twelve (12) months until the earlier of the end of the twelve (12) month period following the date of Executive’s termination of employment following a Disability or the date on which Executive receives substantially comparable coverage and benefits under the group health plans of a subsequent employer.  Executive shall pay the entire premium charged for such coverage based on the COBRA rate for the level of coverage elected.  Employers shall reimburse Executive an amount equal to Employers’ portion of the health insurance premiums then paid for active employees for the level of coverage elected by Executive 

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(subject to the provisions of Agreement paragraph 7(e) herein).  Notwithstanding the preceding, any amounts payable under Agreement paragraph 6(b) shall be reduced by any amounts paid to Executive pursuant to Agreement paragraph 6(c) herein or under any other disability program or policy of insurance maintained by Employers.
7.    Payments to Executive Upon Other Termination of Employment.  The Boards of Directors of Employers may terminate Executive’s employment under this Agreement at any time and for any reason but any termination by Employers other than Termination for Cause shall not prejudice Executive’s right to compensation or other benefits under this Agreement.  Executive may voluntarily terminate his employment under this Agreement.  The rights and obligations of Employers and Executive in the event of employment termination (other than in connection with death or Disability) are set forth in this Agreement paragraph 7 as follows:
(a)    Termination for Cause.  Following Executive’s Termination for Cause, Employers shall pay Executive any accrued but unpaid Base Salary through the date of termination of Executive’s employment (payable in accordance with Employers’ normal payroll practices), and any earned but unpaid Incentive Compensation for any prior period, pro rata and to the extent earned (payable on the schedule as provided in Agreement paragraph 4(b) above).  Any outstanding equity awards shall be subject to the terms and conditions of the applicable plan and applicable award agreement.  Executive shall have no right to any other compensation or benefits (except for vested benefits under any employee benefit plan in accordance with the terms of the plan and any right to continued health coverage under COBRA or similar state law) for any period after a Termination for Cause.  For purposes of this Agreement, “Termination for Cause,” which shall be determined by Employers’ Boards of Directors in the reasonable exercise of their discretion and acting in good faith, is a termination of Executive’s employment as a result of Executive’s dishonesty; willful misconduct; incarceration for ten (10) or more days; breach of fiduciary duties; intentional failure to perform his job duties; willful violation of any law (other than minor traffic violations or less serious offenses) or a final cease-and-desist order; the regulatory suspension or removal of Executive as defined in Agreement paragraph 8; Executive’s failure or refusal to follow instructions of the Boards of Directors of Employers; or Executive’s material breach of the terms of this Agreement, which material breach of this Agreement is not cured (to the extent deemed curable by the Boards) by Executive within 10 calendar days after his receipt of Employers’ written notice thereof, including, without limitation, failure by Executive to perform Executive’s duties and responsibilities in the manner and to the extent required under this Agreement.  The termination of Executive’s employment shall not be a Termination for Cause unless and until there shall have been delivered to Executive a copy of a resolution duly adopted in good faith by the affirmative vote of not less than two-thirds of the membership of Employers’ Boards of Directors (other than Executive, if applicable) at a meeting of the Boards called and held for such purpose (after at least fifteen (15) days prior written notice of such meeting and Executive’s alleged improper conduct is communicated to Executive and Executive (together with Executive’s counsel) is given an opportunity to be heard before the Boards of Directors), finding that Executive is guilty of the conduct described as Termination for Cause and specifying in detail the grounds for its decision, and further that the specified conduct remains uncured 

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pursuant to the terms hereof or was not capable of cure.  Employers’ Boards of Directors, in their discretion, may place Executive on a paid leave of absence for all or any portion of the period of time from the delivery of the written notice described in this Agreement until the effective date of the Termination for Cause, or the date on which Executive returns to work from such paid leave of absence.
(b)    Event of Termination Without Change of Control.  Upon the occurrence of an Event of Termination (for clarity, termination other than for death, Disability or for Cause and other than in connection with a Change of Control as provided in Agreement paragraph 7(c)), Employers shall pay to Executive, or in the event of his subsequent death, to his designated beneficiary or beneficiaries, or to his estate, as the case may be, any accrued but unpaid Base Salary through the date of termination of Executive’s employment (payable in accordance with Employers’ normal payroll practices), and any unpaid Incentive Compensation for any prior period, pro rata and to the extent earned (payable on the schedule as described in Agreement paragraph 4(b) above).  Any outstanding equity awards shall be subject to the terms and conditions of the applicable plan and applicable award agreement.  In addition, if Executive faithfully and fully abides by all of the covenants contained in Agreement paragraph 9 and the release requirements described herein, Employers shall pay to Executive (or in the event of his death, to his designated beneficiary or beneficiaries or to his estate, as the case may be) as liquidated damages, in lieu of all other claims, (i) a severance payment equal to 2.0 times the sum of Executive’s (A) Base Salary and (B) target bonus under the STIP for the year of termination (the “Target Bonus”) with such severance payment to be paid in twelve (12) equal monthly installments (without interest) in accordance with Employers’ normal payroll practices commencing with the first normal payroll date that occurs on or after the sixtieth (60th) day of Executive’s termination of employment (such twelve (12)-month period commencing on the date of termination of employment, the “Severance Period”), as well as (ii) a pro rata Short-Term Incentive Compensation bonus and a pro rata Long-Term Incentive Compensation bonus (without interest), in each case, to the extent earned, for the performance period during which Executive’s termination of employment occurs, payable on March 1 of the year following the calendar year in which Executive’s termination of employment occurs (provided that in no event shall payments under this clause (ii) result in duplicate payments with respect to unpaid Incentive Compensation as described in the first sentence of this Agreement paragraph 7(b)).  In addition, Employers shall continue to provide Executive and Executive’s dependents who are qualified beneficiaries with health insurance coverage as if he were an active employee for a period not to exceed eighteen (18) months until the earlier of the end of the eighteen (18) month period following the date of said Event of Termination or the date on which Executive receives substantially comparable coverage and benefits under the group health plans of a subsequent employer.   Executive shall pay the entire premium charged for such coverage based on the COBRA rate for the level of coverage elected.  Employers shall reimburse Executive an amount equal to Employers’ portion of the health insurance premiums then paid for active employees for the level of coverage elected by Executive (subject to the provisions of Agreement paragraph 7(e) herein).    

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In return for the severance payments and benefits described in this Agreement paragraph 7(b), Executive shall agree to execute a full release and waiver acceptable to the Holding Company and the Bank (substantially similar to the Release and Waiver attached hereto as Exhibit “A” and made a part of this Agreement) of all known or unknown claims or causes of action Executive has, had, or may have against Employers, their affiliates and all of the officers, employees, directors and agents of Employers and their affiliates, except that such release shall not apply to (i) any rights of Executive to indemnification under Employers’ Articles of Incorporation or Bylaws or a written agreement or to directors’ and officers’ liability insurance coverage of Employers and its affiliates, (ii) any rights to the severance pay or benefits under this Agreement, (iii) any rights to vested tax-qualified retirement benefits, (iv) any Protected Rights and (v) any rights to continued group health coverage under COBRA or applicable state law.  The severance payments and reimbursements described in clause (i) above shall (to the extent provided herein) commence within the sixty (60)-day period described above following Executive’s termination of employment provided Executive has executed the release and the release has become irrevocable before then.  If the sixty (60)-day period described in the immediately preceding sentence begins in one calendar year and ends in a later calendar year, the severance payments and reimbursements, if any, shall commence in the later calendar year even if Executive executes the release and it becomes irrevocable in the earlier calendar year.  If Executive does not execute the release and the release does not become irrevocable before the sixtieth (60th) day after Executive’s termination of employment, Executive shall not receive the severance payments and reimbursements described in this Agreement paragraph 7(b). 
Executive acknowledges and agrees that if he is entitled to benefits under Agreement paragraph 7(b), he shall not be entitled to benefits under Agreement paragraph 7(c), and, similarly, if he is entitled to benefits under Agreement paragraph 7(c), he shall not be entitled to benefits under Agreement paragraph 7(b).
(c)    Event of Termination in Connection With a Change of Control.  If, during the term of Executive’s employment under this Agreement and within eighteen (18) months immediately following a Change of Control or within three (3) months immediately prior to such Change of Control, Executive’s employment with Employers under this Agreement is terminated by an Event of Termination (for clarity, termination other than for death, Disability, Cause or as provided in Agreement paragraph 7(b)), Employers shall pay to Executive, or in the event of his subsequent death, to his designated beneficiary or beneficiaries, or to his estate, as the case may be, any accrued but unpaid Base Salary through the date of termination of Executive’s employment (payable in accordance with Employers’ normal payroll practices), and any unpaid Incentive Compensation for any prior period, pro rata and to the extent earned (payable on the schedule as described in Agreement paragraph 4(b) above).  Any outstanding equity awards shall be subject to the terms and conditions of the applicable plan and applicable award agreement.  In addition, and if Executive faithfully and fully abides by all of the covenants contained in Agreement paragraph 9 and the release requirements described herein, Employers shall pay to Executive (or in the event of his death, to his designated beneficiary or beneficiaries, or to his estate, as the case may be) as liquidated damages, in lieu of all other claims, (i) a severance payment equal to 2.0 times 

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the sum of Executive’s (A) Base Salary plus (B) target bonus under the STIP for the year of termination (that is, Target Bonus), with such severance payment to be paid in twelve (12) equal monthly installments (without interest) in accordance with Employers’ regular payroll practices commencing with the first normal payroll date that occurs on or after the sixtieth (60th) date of Executive’s termination of employment, as well as (ii) a pro rata Short-Term Incentive Compensation bonus and a pro rata Long-Term Incentive Compensation bonus (without interest), in each case, to the extent earned, for the performance period during which Executive’s termination of employment occurs, payable on March 1 of the year following the calendar year in which Executive’s termination of employment occurs (provided that in no event shall payments under this clause (ii) result in duplicate payments with respect to unpaid Incentive Compensation as described in the first sentence of this Agreement paragraph 7(c)).  In addition, Employers shall continue to provide Executive and Executive’s dependents who are qualified beneficiaries with health insurance coverage as if he were an active employee for a period not to exceed eighteen (18) months until the earlier of the end of the (18) month period following the date of said Event of Termination or the date on which Executive receives substantially comparable coverage and benefits under the group health plans of a subsequent employer.  Executive shall pay the entire premium charged for such coverage based on the COBRA rate for the level of coverage elected.  Employers shall reimburse Executive an amount equal to Employers’ portion of the health insurance premiums then paid for active employees for the level of coverage elected by Executive (subject to the provisions of Agreement paragraph 7(e) herein).  
In return for the severance payments and benefits described in this Agreement paragraph 7(c), Executive shall agree to execute a full release and waiver acceptable to the Holding Company and the Bank (substantially similar to the Release and Waiver attached hereto as Exhibit “A” and made a part of this Agreement) of all known or unknown claims or causes of action Executive has, had, or may have against Employers, their affiliates and all of the officers, employees, directors and agents of Employers and their affiliates, except that such release shall not apply to (i) any rights of Executive to indemnification under Employers’ Articles of Incorporation or By-Laws or written agreement or to directors’ and officers’ liability insurance coverage of Employers and its affiliates, (ii) any rights to the severance pay or benefits under this Agreement, (iii) any rights to vested tax-qualified retirement benefits, (iv) any Protected Rights, and (v) any rights to continued group health coverage under COBRA or applicable state law.  The severance payments described in clause (i) above shall commence within the sixty (60)-day period described above following Executive’s termination of employment provided Executive has executed the release and the release has become irrevocable before then.  If the sixty (60)-day period described in the immediately preceding sentence begins in one calendar year and ends in a later calendar year, the severance payments and reimbursements, if any, shall commence in the later calendar year even if Executive executes the release and it becomes irrevocable in the earlier calendar year.  If Executive does not execute the release and the release does not become irrevocable before the sixtieth (60th) day after Executive’s termination of employment, Executive shall not receive the severance payment described in this Agreement paragraph 7(c).  

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(d)    Compliance with Protective Covenants.  Notwithstanding anything to the contrary in this Agreement, in the event Executive fails or ceases to fully abide by all of the covenants contained in Agreement paragraph 9, or in the event any court of competent jurisdiction or arbitrator deems any such covenant(s) to be invalid or unenforceable as the result of a challenge by Executive, then Executive acknowledges and agrees that such circumstances shall constitute a failure of consideration and Executive shall not be entitled to any severance payments and/or benefits pursuant to Agreement paragraphs 7(b) or 7(c).  If Executive has already received any such severance payments or benefits at the time he violates any such covenant or the covenants are deemed invalid as set forth in the preceding sentence, Executive acknowledges that Employers shall immediately be entitled to recover all such gross amounts in full from Executive.
(e)    Limits on Payments.  Executive and Employers intend for all payments under this Agreement to be either outside the scope of Code Section 409A or to comply with its requirements as to timing of payments.  Accordingly, to the extent applicable, it is the general intention of the parties that this Agreement shall, to the extent practicable, be operated in accordance with the requirements of Code Section 409A, as amended, and the regulations and rulings thereunder, including any applicable transition rules.  Without in any way limiting the foregoing, (i) in the event that Code Section 409A requires that any special terms, provision or conditions be included in this Agreement, then such terms, provisions, and conditions shall, to the extent practicable, be deemed to be made part of this Agreement, and (ii) terms used in this Agreement shall be construed in accordance with Code Section 409A if and to the extent required.  Employers shall have authority to take action, or refrain from taking any action, with respect to the payments and benefits under this Agreement that is reasonably necessary to comply with Code Section 409A.  Any payments that qualify for the “short-term deferral” exception or another exception under Code Section 409A shall be paid under the applicable exception.  For purposes of the limitations on nonqualified deferred compensation under Code Section 409A, each payment of compensation under this Agreement shall be treated as a separate payment of compensation for purposes of applying Code Section 409A.  Notwithstanding anything in this Agreement to the contrary, if any amounts or benefits payable under this Agreement in the event of Executive’s termination of employment constitute “nonqualified deferred compensation” within the meaning of Code Section 409A, payment of such amounts and benefits shall commence when Executive incurs a “separation from service” within the meaning of Treasury Regulation 1.409A-1(h), without regard to any of the optional provisions thereunder, from Employers and any entity that would be considered a single employer with Employers under Code Section 414(b) or 414(c) (as modified by the rules under Code Section 409A) (“Separation from Service”).  Such payments or benefits shall be provided in accordance with the timing provisions of this Agreement by substituting the Agreement’s references to “termination of employment” or “termination” with Separation from Service.  In addition, if at the time of Executive’s Separation from Service Executive is a “specified employee” within the meaning of Code Section 409A(a)(2)(B)(i), any amount or benefits that constitute “nonqualified deferred compensation” within the meaning of Code Section 409A that becomes payable to Executive on account of Executive’s Separation from Service shall not be paid until after the earlier of (i) the first (1st) business day of the seventh (7th) month following Executive’s Separation 

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from Service, or (ii) the date of Executive’s death (the “409A Suspension Period”) to the extent required to comply with Code Section 409A.  Within fourteen (14) calendar days after the end of the 409A Suspension Period, Executive shall be paid a cash lump sum payment equal to any payments (including interest on any such payments, at an interest rate of not less than the prime interest rate, as published in the Wall Street Journal, over the period such payment is restricted from being paid to Executive) and benefits that the Company would otherwise have been required to provide under this Agreement but for the imposition of the 409A Suspension Period delayed because of the preceding sentence.  Thereafter, Executive shall receive any remaining payments and benefits due under this Agreement in accordance with the terms of this Agreement paragraph 7(e) (as if there had not been any 409A Suspension Period beforehand).  To the extent not otherwise specified in this Agreement, all (A) reimbursements and (B) in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of Code Section 409A, including, where applicable, the requirement that (1) any reimbursement is for expenses incurred during Executive’s lifetime (or during a shorter period of time specified in this Agreement); (2) the amount of expenses eligible for reimbursement, or in kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in kind benefits to be provided, in any other calendar year; (3) the reimbursement of an eligible expense shall be made no later than the last day of the calendar year following the year in which the expense is incurred; and (4) the right to reimbursement or in kind benefits is not subject to liquidation or exchange for another benefit.  In the event that this Agreement shall be deemed not to be exempt from or to comply with Code Section 409A, then neither Employers, the Boards, the Committee nor its or their designees or agents shall be liable to Executive or other persons for actions, decisions or determinations made in good faith.  
If any of the payments or benefits received or to be received by Executive (including, without limitation, any payment or benefits received in connection with a Change of Control or Executive’s termination of employment, whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement, or otherwise) (all such payments collectively referred to herein as the “280G Payments”) constitute “parachute payments” within the meaning of Code Section 280G and would, but for this subparagraph (e), be subject to the excise tax imposed under Code Section 4999 (the “Excise Tax”), then prior to making the 280G Payments, a calculation shall be made comparing (i) the net benefit to Executive of the 280G Payments after payment of the Excise Tax to (ii) the net benefit to Executive if the 280G Payments are limited to the extent necessary to avoid being subject to the Excise Tax.  Only if the amount calculated under (i) above is less than the amount under (ii) above shall the 280G Payments be reduced to the minimum extent necessary to ensure that no portion of the 280G Payments is subject to the Excise Tax.  Any reduction made pursuant to this subparagraph (e) shall be made in a manner determined by the Accounting Firm (as defined below) that maximizes Executive’s economic position and is consistent with the requirements of Code Section 409A.  All calculations and determinations under this subparagraph (e) shall be made by Employers’ regular independent accounting firm at the expense of Employers or, at the election and expense of Executive, another nationally recognized independent accounting firm (the “Accounting Firm”) acceptable to Employers.  Employers shall instruct the Accounting Firm to make all such calculations and 

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determinations in a manner that is in the best interests of Executive and maximizes Executive’s position.  For purposes of making the calculations and determinations required by this subparagraph (e), the Accounting Firm may rely on reasonable, good faith assumptions and approximations concerning the application of Code Section 280G and Code Section 4999.  Employers and Executive shall furnish the Accounting Firm with such information and documents as the Accounting Firm may reasonably request in order to make its calculations and determinations under this subparagraph (e).  All calculations and determinations by the Accounting Firm shall be binding upon Employers and Executive.  If any payments or benefits are reduced under this Agreement pursuant to this subparagraph (e), Executive shall pay all such assessed excise taxes, and any income taxes and additional excise taxes resulting solely from the payment of such excise taxes.
(f)    Voluntary Termination of Employment.  If Executive terminates his employment without Good Reason, then Employers shall pay to Executive, or in the event of his subsequent death, to his designated beneficiary or beneficiaries, or to his estate, as the case may be, any accrued but unpaid Base Salary through the date of termination of Executive’s employment (payable in accordance with Employers’ normal payroll practices), and any unpaid Incentive Compensation for any prior period, pro rata and to the extent earned (payable on the schedule as described in Agreement paragraph 4(b) above).  Any outstanding equity awards shall be subject to the terms and conditions of the applicable plan and applicable award agreement.
(g)    Additional Payments After Termination.  In the event that Executive’s employment is terminated under Agreement paragraphs 7(b) or (c), then Employers shall reimburse Executive an amount equal to the COBRA premium charged Executive for COBRA health continuation coverage for Executive and his eligible dependents for so long as Executive and his eligible dependents are entitled to receive COBRA continuation coverage from Employers under the applicable laws, rules and regulations governing COBRA.  For purposes of this Agreement paragraph 7(g) and Executive’s right to elect continued coverage under Employers’ group health plan under COBRA, in the case of a termination of Executive’s employment with Employers under Agreement paragraphs 7(b) or (c), Executive’s “qualifying event” (within the meaning of Code Section 4980B(0)(3)) shall be deemed to occur as of the date that Employers’ obligation to provide continued health coverage as if he were an active employee under Agreement paragraphs 7(b) or (c) ends.  To receive reimbursement under this Agreement paragraph 7(g), Executive must timely enroll in COBRA coverage.
8.    Compliance with Recoupment, Ownership and Other Policies or Agreements; Regulatory Limitations.   
(a)    Executive agrees and acknowledges that he is subject to certain forfeiture and recoupment (or “clawback”) restrictions, including but not limited to forfeiture and recoupment provisions if Executive, during employment or following termination of employment, engages in certain specified conduct, including but not limited to violation of policies of Employers or their subsidiaries, breach of non-solicitation, noncompetition, 

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confidentiality or other restrictive covenants, or other conduct by Executive that is determined by Employers to be detrimental to the business or reputation of Employers or any affiliate.  In addition, without limiting the effect of the foregoing, as a condition to receipt or retention of any benefits under this Agreement, Employers may, at any time, require that Executive agree to abide by any equity retention policy, stock ownership guidelines, compensation recovery policy and/or other policies that may be adopted by the Holding Company or the Bank or an affiliate thereof, each as in effect from time to time and to the extent applicable to Executive.  In addition, Executive acknowledges that he is subject to any such compensation recovery, recoupment, forfeiture or other similar provisions as may apply to Executive under applicable law.  
(b)    Without limiting the effect of the foregoing, the following shall apply: if Executive is suspended and/or temporarily prohibited from participating in the conduct of the affairs of the Bank by a notice served under Sections 8(e)(3) or (g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. § 1818(e)(3) or (g)(1), the obligations of Employers under this Agreement shall be suspended as of the date of service of such notice, unless stayed by appropriate proceedings.  If the charges in the notice are dismissed, Employers, subject to any bar or prohibition arising from any applicable law or regulation, shall (i) pay Executive the compensation withheld while its contract obligations were suspended and (ii) reinstate in whole or in part any of its obligations which were suspended; provided, however, that Employers’ obligation to pay or reinstate as set forth herein shall not exceed one year of compensation or other obligations, shall be reduced by the amount of any compensation received by Executive from any source during the period of suspension, and shall be contingent upon faithful compliance by Executive with the Protective Covenants in Agreement paragraph 9 throughout such period of suspension.  Vested rights of Executive shall not otherwise be affected.
If Executive is removed and/or permanently prohibited from participating in the conduct of the affairs of the Bank by an order issued under Section 8(e)(4) or (g)(l) of the Federal Deposit Insurance Act, 12 U.S.C. § 1818(e)(4) or (g)(1), all obligations of Employers under this Agreement shall terminate as of the effective date of the order, but vested rights of the parties hereto shall not be affected.
9.    Protective Covenants.  Executive shall abide by and be bound by the following Protective Covenants:
(a)    Confidential Information and Trade Secrets.  During Executive’s employment, the parties acknowledge that Employers shall disclose, or have already disclosed, to Executive for use in Executive’s employment, and Executive shall be provided access to and otherwise shall make use of, acquire, create, or add to certain valuable, unique, proprietary, and secret information of Employers (whether tangible or intangible and whether or not electronically kept or stored), including financial statements, drawings, designs, manuals, business plans, processes, procedures, formulas, inventions, pricing policies, customer and prospect lists and contacts, contracts, sources and identity of vendors and contractors, financial information of customers of Employers, and other proprietary 

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documents, materials, or information indigenous to Employers, relating to their businesses and activities, or the manner in which Employers do business, which is valuable to Employers in conducting their business because the information is kept confidential and is not generally known to Employers’ competitors or to the general public (“Confidential Information”).  Confidential Information does not include information generally known or easily obtained from public sources or public records, unless Executive causes the Confidential Information to become generally known or easily obtained from public sources or public records.
To the extent that the Confidential Information rises to the level of a trade secret under applicable law, then Executive shall, during Executive’s employment and for so long as the Confidential Information remains a trade secret under applicable law (or for the maximum period of time otherwise allowed by applicable law) (i) protect and maintain the confidentiality of such trade secrets and (ii) refrain from disclosing, copying, or using any such trade secrets, without Employers’ prior written consent, except as necessary in Executive’s performance of Executive’s duties while employed with Employers.
To the extent that the Confidential Information defined above does not rise to the level of a trade secret under applicable law, Executive shall, during Executive’s employment and for a period of two years following any voluntary or involuntary termination of employment (whether by Employers or Executive), (i) protect and maintain the confidentiality of the Confidential Information and (ii) refrain from disclosing, copying, or using any Confidential Information without Employers’ prior written consent, except as necessary in Executive’s performance of Executive’s duties while employed with Employers.
(b)    Return of Property of Employers.  Upon any voluntary or involuntary termination of Executive’s employment (or at any time upon request of Employers), Executive agrees to immediately return to Employers all property of Employers (including, without limitation, all documents, electronic files, records, computer disks or other tangible or intangible things that may or may not relate to or otherwise comprise Confidential Information or trade secrets, as defined by applicable law) that Executive created, used, possessed or maintained while working for Employers from whatever source and whenever created, including all reproductions or excerpts thereof.  This provision does not apply to purely personal documents of Executive, but it does apply to business calendars, customer lists, contact information, computer programs, disks and their contents and like information that may contain some personal matters of Executive.  Executive acknowledges that title to all such property is vested in Employers.
(c)    Non-Diversion of Business Opportunity.  During Executive’s employment with Employers and consistent with Executive’s duties and fiduciary obligations to Employers, Executive shall (i) disclose to Employers any business opportunity that comes to Executive’s attention during Executive’s employment with Employers and that relates to the business of Employers or otherwise arises as a result of Executive’s employment with Employers and (ii) not take advantage of or otherwise divert any such opportunity for 

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Executive’s own benefit or that of any other person or entity without prior written consent of Employers.
(d)    Non-Solicitation of Customers.  During Executive’s employment and for a period of twelve (12) months following any employment termination, Executive agrees not to, directly or indirectly, contact, solicit, divert, appropriate, or call upon, with the intent of doing business with, the customers or clients of Employers with whom Executive has had material contact (as such term is defined by Georgia’s Restrictive Covenants Act) during the last year of Executive’s employment with Employers, including prospects of Employers with whom Executive had such contact during said last year of Executive’s employment, if the purpose of such activity is either (i) to solicit such customers or clients or prospective customers or clients for a Competitive Business as herein defined (including, without limitation, any Competitive Business started by Executive) or (ii) to otherwise encourage any such customer or client to discontinue, reduce, or adversely alter the amount of its business with Employers.  Executive acknowledges that, due to Executive’s relationship with Employers, Executive shall develop, or has developed, special contacts and relationships with Employers’ clients and prospects, and that it would be unfair and harmful to Employers if Executive took advantage of these relationships.
A “Competitive Business”, as defined in this Agreement, is an enterprise that is in the business of offering banking products and/or services, which services and/or products are similar or substantially identical to those offered by Employers during Executive’s employment with Employers.
(e)    Non-Piracy of Employees.  During Executive’s employment and for a period of twelve (12) months following any termination, Executive covenants and agrees that Executive shall not, within the Territory, directly or indirectly: (i) solicit, recruit, or hire (or attempt to solicit, recruit, or hire) or otherwise assist anyone in soliciting, recruiting, or hiring, any employee or independent contractor (which shall not include non-exclusive outside vendors) of Employers who performed work for Employers within the last six (6) months of Executive’s employment with Employers or who was otherwise engaged or employed with Employers at the time of said termination of employment of Executive or (ii) otherwise encourage, solicit, or support any such employees or independent contractors to leave their employment or engagement with Employers, in either case until such employee or contractor has been terminated or separated from Employers for at least twelve (12) months.
(f)    Non-Compete.  During Executive’s employment and for a period of twelve (12) months following any employment termination, Executive agrees not to, directly or indirectly, compete with Employers, as an officer, director, member, principal, partner, shareholder (other than a shareholder in a company that is publicly traded and so long as such ownership is less than five percent (5%)), owner, manager, supervisor, administrator, employee, consultant, or independent contractor, by working in the Territory (as defined herein) for or as a “Competitive Business” (as defined above) in the Territory (as defined herein), in a capacity identical or substantially similar to the capacity in which Executive 

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served at Employers.  The “Territory” shall be defined as (i) the following counties in the State of Georgia: Barrow; Bartow; Butts; Carroll; Cherokee; Clayton; Cobb; Coweta; Dawson; DeKalb; Douglas; Fayette; Forsyth; Fulton; Gwinnett; Haralson; Heard; Henry; Jasper; Lamar; Meriwether; Newton; Paulding; Pickens; Pike; Rockdale; Spalding; and Walton, as well as (ii) the area within the city limits of Chattanooga, Tennessee, Knoxville, Tennessee and Charlotte, North Carolina as well as (iii) each county within which Chattanooga, Tennessee, Knoxville, Tennessee and Charlotte, North Carolina are located, as well as (iv) the counties (including those in adjacent states, if any) that are immediately contiguous to the counties referenced in subpart (iii), as well as (v) any counties of any state in which Employers, at the time of termination of Executive’s employment, are operating or providing services, or in which Employers have plans to solicit or engage in business, which plans are known to Executive during the term of Executive’s employment; provided, however, that the Territory described herein is a good faith estimate of the geographic area that is now applicable or that may be applicable at the termination of Executive’s employment as the areas in which Employers do or shall do business during the term of Executive’s employment, and Employers and Executive agree that this non-compete covenant shall ultimately be construed to cover only so much of such estimate as relates to the geographic areas in which Employers do business within the two-year period preceding termination of Executive’s employment.  
(g)    Acknowledgment.  It is understood and agreed by Executive that the parties have attempted to limit his right to compete only to the extent necessary to protect Employers from unfair competition and that the terms and provisions of this Agreement paragraph 9 are not intended to restrict Executive in the exercise of his skills or the use of knowledge or information that does not rise to the level of a trade secret under applicable law or Confidential Information of Employers (to which trade secrets and Confidential Information Executive has had and/or shall have access and has made and/or shall make use of during employment with Employers).  Therefore, in addition to any other remedies, Executive agrees that any violation of the covenants in this Agreement paragraph 9 shall result in the immediate forfeiture of any remaining payment that otherwise is or may become due under this Agreement if applicable.  Executive further agrees that should he breach any of the covenants contained in Agreement paragraph 9 of this Agreement, no further amounts shall be paid to Executive pursuant hereto and Executive shall repay to Employers any amounts previously received by Executive hereunder that are attributable to that portion of the payments paid for the period during which Executive was in breach of any of the covenants.  Employers and Executive agree that all remedies available to Employers or Executive, as applicable, shall be cumulative.
(h)    Protected Rights.  Notwithstanding anything in this Agreement to the contrary, (i) nothing in this Agreement, including but not limited to the release, or other agreement prohibits Executive from reporting possible violations of law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress and any agency Inspector General (the “Government Agencies”), or communicating with Government Agencies or otherwise participating in any investigation or proceedings that may be conducted by Government 

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Agencies, including providing documents or other information; (ii) Executive does not need the prior authorization of Employers to take any action described in (i), and Executive is not required to notify Employers that he has taken any action described in (i); and (iii) neither this Agreement nor the release limits Executive’s right to receive an award for providing information relating to a possible securities law violation to the Securities and Exchange Commission. Further, notwithstanding the foregoing, Executive shall not be held criminally or civilly liable under any federal, state or local trade secret law for the disclosure of a trade secret that (x) is made (A) in confidence to a federal, state or local official, either directly or indirectly, or to an attorney; and (B) solely for the purpose of reporting or investigating a suspected violation or law; or (y) is made in a compliant or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Additionally, an individual suing an employer for retaliation based on the reporting of a suspected violation of law may disclose a trade secret to his attorney and use the trade secret information in the court proceeding, so long as any document containing the trade secret is filed under seal and the individual does not disclose the trade secret except pursuant to court order. The rights described in this subparagraph (h) are referred to in this Agreement as the “Protected Rights.”
It is acknowledged that the purpose of these covenants and promises is (and that they are necessary) to protect Employers’ legitimate business interests, to protect Employers’ investment in the overall development of its business and the good will of its customers, and to protect and retain (and to prevent Executive from unfairly and to the detriment of Employers utilizing or taking advantage of) such business trade secrets and Confidential Information of Employers and those substantial contacts and relationships (including those with customers and employees of Employers) which Executive established due to his employment with Employers.
This Agreement is not intended to preclude Executive’s opportunity to engage in or otherwise pursue occupations in any unrelated or non-competitive field of endeavor, or to engage in or otherwise pursue directly competitive endeavors so long as they meet the requirements of this Agreement.  Executive represents that his experience and abilities are such that existence or enforcement of these covenants and promises shall not prevent Executive from earning or pursuing an adequate livelihood and shall not cause an undue burden to Executive or his family.
Executive acknowledges that these covenants and promises (and their respective time, geographic, and/or activity limitations) are reasonable and that said limitations are no greater than necessary to protect said legitimate business interests in light of Executive’s position with Employers and Employers’ business, and Executive agrees to strictly abide by the terms hereof.  If any provision of this Agreement is ruled invalid or unenforceable by a court of competent jurisdiction because of a conflict between the provision and any applicable law or public policy, the provision shall be redrawn to make the provision consistent with, and valid and enforceable under, the law or public policy.
10.    Source of Payments.  All payments provided in Agreement paragraphs 4, 6, and 7 shall be paid in cash (including, if applicable, by direct deposit through the Employers’ payroll procedures) from the general funds of Employers, or their successors in interest, as provided herein 

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(except to the extent otherwise provided in the Agreement with respect to the grant and/or settlement of equity awards payable in shares of Holding Company common stock); and no special or separate fund shall be established by Employers, and no other segregation of assets shall be made to assure payment.  Executive shall have no right, title, or interest in or to any investments which Employers may make to meet its payment obligations.
11.    Injunctive Relief/Arbitration.  Employers or Executive shall have the right to apply to any court of competent jurisdiction sitting within the State of Georgia for injunctive relief with respect to the enforcement of the covenants and agreements set forth in Agreement paragraph 9.  For purposes of the preceding sentence, Employers and Executive agree to, and waive any objection to, personal jurisdiction in any state or federal court sitting in Georgia, and further agree that such courts shall be the sole and exclusive venue for any such court actions.  This remedy shall be in addition to, and not in limitation of, any other rights or remedies to which Employers or Executive are or may be entitled at law or in equity respecting this Agreement.  All other disputes or claims for relief arising from or related to this Agreement, Executive’s employment with Employers, or the termination of Executive’s employment with Employers, or as to arbitrability shall be brought and resolved in binding arbitration before the American Arbitration Association.  The arbitration shall be conducted under the AAA National Rules for the Resolution of Employment Disputes.  Employers and Executive agree that the arbitration shall be conducted in Atlanta, Georgia, and that Georgia law shall govern all issues, including but not limited to enforcement or enforceability of restrictive covenants.  Judgment upon any award rendered by the arbitrator may be challenged or entered only in the Superior Court of Fulton County, Georgia, or in the U.S. District Court for the Northern District of Georgia (Atlanta Division).
12.    Attorneys’ Fees.  In the event any party hereto is required to engage in legal action, whether before a court of competent jurisdiction or before the American Arbitration Association, against any other party hereto, either as plaintiff or defendant, in order to enforce or defend any of its or his rights under this Agreement, and such action results in a final judgment in favor of one or more parties, then the party or parties against whom said final judgment is obtained shall reimburse the prevailing party or parties for all legal fees and expenses incurred by the prevailing party or parties in asserting or defending its or his rights hereunder.  Furthermore, if following a Change of Control Executive must bring a claim to enforce Executive’s rights, and such claim results in payments to Executive, then whether or not reduced to a final judgment, Executive shall be reimbursed for reasonable legal fees incurred.  Any such reimbursements shall be made in accordance with Agreement paragraph 7(e).
13.    No Duty to Mitigate.  In no event shall Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to Executive under any provisions of this Agreement and, except as provided in Agreement paragraph 8 (and Agreement paragraphs 6(c), 7(b) and 7(c) regarding health insurance coverage), such amounts shall not be reduced regardless of whether Executive obtains other employment.
14.    Tax Matters.  Executive acknowledges that Employers shall deduct from any compensation payable to Executive or payable on his behalf under this Agreement all applicable federal, state, and local income and employment taxes and other taxes and withholdings required 

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by law.  Executive acknowledges that Employers have made no representation or warranty regarding the tax consequences associated with the benefits described under this Agreement, that Executive agrees to pay any federal, state, and local taxes for which he may be personally liable as a result of the benefits conveyed under this Agreement, and that Employers have no obligation to achieve any certain tax result for Executive. 
15.    Effect of Prior Agreements.  This Agreement constitutes the entire agreement between the parties concerning the subject matter of this Agreement.  No oral statements or prior written material not specifically incorporated in this Agreement shall be of any force and effect, and no changes in or additions to this Agreement shall be recognized, unless incorporated in this Agreement by written amendment, such amendment to become effective on the date stipulated in it.  Executive acknowledges and represents that, in executing this Agreement, he did not rely, and has not relied, on any communications, promises, statements, inducements, or representation(s), oral or written, by Employers or any of its officers, directors, attorneys, agents, or representatives, except as expressly contained in this Agreement.  This Agreement supersedes any prior employment agreement and any contemporaneous oral agreement or understanding by or between Employers and Executive, including but not limited to any prior offer letter or other employment arrangement, which shall be of no force or effect as of the Effective Date of this Agreement, and Executive acknowledges and agrees that he shall have no further rights under any prior offer letter or other employment arrangement as of the Effective Date of this Agreement.
16.    General Provisions.
(a)    Nonassignability.  Neither this Agreement nor any right or interest hereunder shall be assignable by Executive, his beneficiaries or legal representatives, without the prior written consent of Employers; provided, however, that nothing in this Agreement paragraph 16(a) shall preclude (i) Executive from designating a beneficiary to receive any benefits payable hereunder upon his death, or (ii) the executors, administrators, or other legal representatives of Executive or his estate from assigning any rights hereunder to the person or persons entitled thereto.  Employers may assign this Agreement without the consent of Executive.
(b)    No Attachment.  Except as required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge, or hypothecation, or to execution, attachment, levy, and any attempt, voluntary or involuntary, to effect any such action shall be null, void, and of no effect.
(c)    Binding Agreement.  This Agreement shall be binding upon, and inure to the benefit of, Employers and Executive and their respective heirs, successors, assigns, and legal representatives.
(d)    No Bar.  Executive acknowledges and agrees that the existence of any claim or cause of action against Employers shall not constitute a defense to the enforcement by Employers of Executive’s covenants, obligations, or undertakings in this Agreement.

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(e)    No Conflicting Obligations.  Executive hereby acknowledges and represents that his execution of this Agreement and performance of employment-related obligations and duties for Employers shall not cause any breach, default, or violation of any other employment, nondisclosure, confidentiality, non-competition, or other agreement to which Executive may be a party or otherwise bound.
Moreover, Executive hereby agrees that he shall not use in the performance of such employment-related obligations and duties for Employers or otherwise disclose to Employers any trade secrets or confidential information of any person or entity (including any former employer) if and to the extent that such use or disclosure may cause a breach or violation of any obligation or duty owed to such employer, person, or entity under any agreement or applicable law.
17.    Modification and Waiver.
(a)    Amendment of Agreement.  Subject to Agreement paragraph 18 below, this Agreement may not be modified or amended except by an instrument in writing, signed by the parties hereto, and which specifically refers to this Agreement.
(b)    Waiver.  No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel against the enforcement of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel.  No such written waiver shall be deemed a continuing waiver unless specifically stated therein, and each waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived.
18.    Severability.  If for any reason any provision of this Agreement is held invalid, the parties agree that the court or arbitrator shall modify the provision(s) (or subpart(s) thereof) to make the provision(s) (or subpart(s) thereof) and this Agreement valid and enforceable to the fullest extent permitted by applicable law.  Any invalid provision shall not affect any other provision of this Agreement not held invalid, and each such other provision shall to the full extent consistent with law continue in full force and effect.  If any provision of this Agreement shall be held invalid in part, such invalidity shall in no way affect the rest of such provision not held so invalid, and the rest of such provision, together with all other provisions of this Agreement, shall to the full extent consistent with law continue in full force and effect.
19.    Headings.  The headings of the Agreement paragraphs are included solely for convenience of reference and shall not control the meaning or interpretation of any of the provisions of this Agreement.
20.    Governing Law; Venue.  This Agreement has been executed and delivered in the State of Georgia, and its validity, interpretation, performance, and enforcement shall be governed by the laws of the State of Georgia.  Employers and Executive further agree to, and waive any objection to, personal jurisdiction in any state or federal court sitting in Georgia, and further agree that such courts shall be the sole and exclusive venue for any court actions.  

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21.    Rights of Third Parties.  Nothing herein expressed or implied is intended to or shall be construed to confer upon or give to any person, firm or other entity, other than the parties hereto and their permitted assigns, any rights or remedies under or by reason of this Agreement.
22.    Non-Disparagement.  During the Employment Term, and thereafter, Executive shall not make any disparaging remarks, or any remarks that could reasonably be construed as disparaging, regarding Employers, their subsidiaries, or the officers, directors, employees, stockholders, representatives or agents of the foregoing.  Employers shall, except to the extent otherwise required by applicable laws, rules or regulations or as appropriate in the exercise of the Boards’ fiduciary duties (as determined by the Boards with advice of counsel), exercise reasonable efforts to cause the following individuals to refrain from making any disparaging statements, orally or in writing, regarding Executive from and after the termination of the Employment Term: Employers’ executive officers and members of the Boards.
23.    Notices.  All notices, requests, demands, and other communications provided for by this Agreement shall be in writing and shall be sufficiently given if and when mailed in the United States by registered or certified mail, or personally delivered, to the party entitled thereto at the address stated below or to such changed address as the addressee may have given by a similar notice:
	
		
	To Employers:
	Chairman
Board of Directors
Atlantic Capital Bank
3280 Peachtree Road
Suite 1600
Atlanta, Georgia 30326

	Copied to
Employers’ counsel:
	Steven S. Dunlevie, Esq.
Womble Bond Dickinson (US) LLP
271 17th Street, N.W.
Suite 2400
Atlanta, Georgia 30363

	To Executive:
	Kurt A. Shreiner
2083 Kinsmon Drive
Marietta, Georgia 30062

Any notice to Employers is ineffective if not also sufficiently given to its counsel.
24.    No Limitation of Rights.  Nothing in this Agreement shall limit or prejudice any rights of Employers under any other laws.  
25.    Counterparts.  This Agreement may be signed in any number of counterparts, including via facsimile transmission, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.
26.    Certain Interpretative Matters.  No provision of this Agreement will be interpreted in favor of, or against, any of the parties hereto by reason of the extent to which any such party or 

24

his or its counsel participated in the drafting thereof or by reason of the extent to which any such provision is inconsistent with any prior draft hereof or thereof.
[Signatures on next page]

IN WITNESS WHEREOF, the Holding Company and the Bank have caused this Agreement to be executed and their seals to be affixed hereunto by their duly authorized officers, and Executive has signed this Agreement, as of the date set forth above to be effective as of the Effective Date set forth above.
ATTEST:                    ATLANTIC CAPITAL BANCSHARES, INC.

/s/ Brenda Bedsole            By:    /s/ Douglas L. Williams
(Assistant) Secretary                Name:    Douglas L. Williams
Title:    Chief Executive Officer
(CORPORATE SEAL)
        

ATTEST:                    ATLANTIC CAPITAL BANK

/s/ Brenda Bedsole            By:    /s/ Douglas L. Williams
(Assistant) Secretary                Name:    Douglas L. Williams
Title:    Chief Executive Officer
(BANK SEAL)

/s/ Jennifer Boyd                /s/ Kurt A. Shreiner
Witness                    KURT A. SHREINER

25

EXHIBIT A
RELEASE
In exchange for certain termination payments, benefits and promises set forth in that certain Employment Agreement by and among Atlantic Capital Bank, N.A., Atlantic Capital Bancshares, Inc. and Kurt A. Shreiner (the “Executive”), dated December 21, 2017 (the “Employment Agreement”), certain of which Executive would not otherwise be entitled, Executive, knowingly and voluntarily releases Atlantic Capital Bancshares, Inc. and Atlantic Capital Bank, N.A., their respective subsidiaries, affiliates or related corporations, together with their officers, directors, agents, employees and representatives (collectively, the “Employer”), of and from any and all claims, demands, obligations, liabilities and causes of action, of whatsoever kind in law or equity, whether known or unknown, which Executive has, may have or ever had against Employer based upon any acts, omissions or events occurring on or before the date of the execution of this Release, including but not limited to claims in common law, whether in contract or in tort, or in equity, including claims of equitable or promissory estoppel, and causes of action under the Age Discrimination in Employment Act, 29 U.S.C. Sections 621 et seq., Title VII of the Civil Rights Act of 1964, 42 U.S.C. Sections 2000e et seq., the Employee Retirement Income Security Act, 29 U.S.C. Sections 1001 et seq., the Americans with Disabilities Act, 29 U.S.C. Section 12101 et seq., and all other federal, state or local laws, ordinances or regulations, for any losses, injuries or damages (including compensatory or punitive damages), attorney’s fees and costs arising out of employment or termination from employment with Employer. Notwithstanding the foregoing, Executive does not waive or release Employer from any claims, demands, obligations, liabilities or causes of action that may hereafter arise as the result of the breach by Employer of its obligations under the Employment Agreement.
Executive acknowledges that he received this Release on the date of termination.  Executive acknowledges that he has had a period of twenty-one (21) days from the date of receipt of this Release to consider it. Executive acknowledges that he has been given the opportunity to consult an attorney prior to executing this Release. This Release shall not become effective or enforceable until seven (7) days following its execution by Executive. Prior to the expiration of the seven (7) day period, Executive may revoke Executive’s consent to this Release.
Executive acknowledges by executing this Release that Executive has returned to Employer all Employer property in Executive’s possession.
Executive acknowledges that the discussions and negotiations relating to Executive’s termination, the Employment Agreement and this Release are confidential and, unless otherwise required by law or for the purposes of enforcing this Release or when needed to consult with Executive’s immediate family or tax or legal advisors, neither Executive nor Executive’s agents shall divulge, publish or publicize any such confidential information to any third parties or the media, or to any current or former employee, customer or client of Employer or its businesses or any of its affiliates.
Notwithstanding anything in this Release to the contrary, (a) nothing in this Release, the Employment Agreement or other agreement prohibits Executive from reporting possible violations 

of law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress and any agency Inspector General (the “Government Agencies”), or communicating with Government Agencies or otherwise participating in any investigation or proceedings that may be conducted by Government Agencies, including providing documents or other information; (b) Executive does not need the prior authorization of Employer to take any action described in (a), and Executive is not required to notify Employer that he or she has taken any action described in (a); and (c) neither this Release nor the Employment Agreement limits Executive’s right to receive an award for providing information relating to a possible securities law violation to the Securities and Exchange Commission. Further, notwithstanding the foregoing, Executive shall not be held criminally or civilly liable under any federal, state or local trade secret law for the disclosure of a trade secret that (x) is made (i) in confidence to a federal, state or local official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation or law; or (y) is made in a compliant or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Additionally, an individual suing an employer for retaliation based on the reporting of a suspected violation of law may disclose a trade secret to his or her attorney and use the trade secret information in the court proceeding, so long as any document containing the trade secret is filed under seal and the individual does not disclose the trade secret except pursuant to court order.
EXECUTIVE ACKNOWLEDGES HE FULLY UNDERSTANDS THE CONTENTS OF THIS RELEASE AND EXECUTES IT FREELY AND VOLUNTARILY, WITHOUT DURESS, COERCION OR UNDUE INFLUENCE.

Signed:                             Date:                
ExecutiveExhibit 10.1

 

SECURITIES
PURCHASE AGREEMENT

This
SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of March 5, 2018, by and between DRONE USA, INC.,
a Delaware corporation, with its address at 16 Hamilton Street, West Haven, CT 06516 (the “Company”), and POWER
UP LENDING GROUP LTD., a Virginia corporation, with its address at 111 Great Neck Road, Suite 216, Great Neck, NY 11021 (the
“Buyer”).

 

WHEREAS:

 

A.       The
Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”)
under the Securities Act of 1933, as amended (the “1933 Act”); and

 

B.       Buyer
desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement a convertible
note of the Company, in the form attached hereto as Exhibit A, in the aggregate principal amount of $53,000.00 (together with
any note(s) issued in replacement thereof or as a dividend thereon or otherwise with respect thereto in accordance with the terms
thereof, the “Note”), convertible into shares of common stock, $0.0001 par value per share, of the Company (the “Common
Stock”), upon the terms and subject to the limitations and conditions set forth in such Note.

 

NOW
THEREFORE, the Company and the Buyer severally (and not jointly) hereby agree as follows:

 

1.       Purchase
and Sale of Note.

 

a.       Purchase
of Note. On the Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees to purchase
from the Company such principal amount of Note as is set forth immediately below the Buyer’s name on the signature pages
hereto.

 

b.       Form
of Payment. On the Closing Date (as defined below), (i) the Buyer shall pay the purchase price for the Note to be issued and
sold to it at the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately available funds
to the Company, in accordance with the Company’s written wiring instructions, against delivery of the Note in the principal
amount equal to the Purchase Price as is set forth immediately below the Buyer’s name on the signature pages hereto, and
(ii) the Company shall deliver such duly executed Note on behalf of the Company, to the Buyer, against delivery of such Purchase
Price.

 

c.       Closing
Date. Subject to the satisfaction (or written waiver) of the conditions thereto set forth in Section 6 and Section 7 below,
the date and time of the issuance and sale of the Note pursuant to this Agreement (the “Closing Date”) shall be 12:00
noon, Eastern Standard Time on or about March 7, 2018, or such other mutually agreed upon time. The closing of the transactions
contemplated by this Agreement (the “Closing”) shall occur on the Closing Date at such location as may be agreed to
by the parties.

 

     

     

    

 

2.       Buyer’s
Representations and Warranties. The Buyer represents and warrants to the Company that:

 

a.       Investment
Purpose. As of the date hereof, the Buyer is purchasing the Note and the shares of Common Stock issuable upon conversion of
or otherwise pursuant to the Note (such shares of Common Stock being collectively referred to herein as the “Conversion
Shares” and, collectively with the Note, the “Securities”) for its own account and not with a present view towards
the public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the 1933 Act.

 

b.       Accredited
Investor Status. The Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D
(an “Accredited Investor”).

 

c.       Reliance
on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance upon specific exemptions
from the registration requirements of United States federal and state securities laws and that the Company is relying upon the
truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments and
understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of
the Buyer to acquire the Securities.

 

d.       Information.
The Company has not disclosed to the Buyer any material nonpublic information and will not disclose such information unless such
information is disclosed to the public prior to or promptly following such disclosure to the Buyer.

 

e.       Legends.
The Buyer understands that the Note and, until such time as the Conversion Shares have been registered under the 1933 Act; or
may be sold pursuant to an applicable exemption from registration, the Conversion Shares may bear a restrictive legend in substantially
the following form:

 

"THE
SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), OR UNDER ANY STATE SECURITIES LAWS, AND MAY NOT BE PLEDGED, SOLD, ASSIGNED, HYPOTHECATED OR OTHERWISE TRANSFERRED
UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES
LAWS OR (2) THE ISSUER OF SUCH SECURITIES RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION
ARE REASONABLY ACCEPTABLE TO THE ISSUER’S TRANSFER AGENT, THAT SUCH SECURITIES MAY BE PLEDGED, SOLD, ASSIGNED, HYPOTHECATED
OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES
LAWS."

 

    	 	2	 

     

    

 

The
legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of any Security
upon which it is stamped, if, unless otherwise required by applicable state securities laws, (a) such Security is registered for
sale under an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to an exemption from
registration without any restriction as to the number of securities as of a particular date that can then be immediately sold,
or (b) such holder provides the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel
in comparable transactions, to the effect that a public sale or transfer of such Security may be made without registration under
the 1933 Act, which opinion shall be accepted by the Company so that the sale or transfer is effected. The Buyer agrees to sell
all Securities, including those represented by a certificate(s) from which the legend has been removed, in compliance with applicable
prospectus delivery requirements, if any. In the event that the Company does not accept the opinion of counsel provided by the
Buyer with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144, at the Deadline,
it will be considered an Event of Default pursuant to Section 3.2 of the Note.

 

f.       Authorization;
Enforcement. This Agreement has been duly and validly authorized. This Agreement has been duly executed and delivered on behalf
of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in accordance with its terms.

 

3.       Representations
and Warranties of the Company. The Company represents and warrants to the Buyer that:

 

a.       Organization
and Qualification. The Company and each of its Subsidiaries (as defined below), if any, is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction in which it is incorporated, with full power and authority (corporate
and other) to own, lease, use and operate its properties and to carry on its business as and where now owned, leased, used, operated
and conducted. “Subsidiaries” means any corporation or other organization, whether incorporated or unincorporated,
in which the Company owns, directly or indirectly, any equity or other ownership interest.

 

b.       Authorization;
Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this Agreement, the
Note and to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance with the terms
hereof and thereof, (ii) the execution and delivery of this Agreement, the Note by the Company and the consummation by it of the
transactions contemplated hereby and thereby (including without limitation, the issuance of the Note and the issuance and reservation
for issuance of the Conversion Shares issuable upon conversion or exercise thereof) have been duly authorized by the Company’s
Board of Directors and no further consent or authorization of the Company, its Board of Directors, or its shareholders is required,
(iii) this Agreement has been duly executed and delivered by the Company by its authorized representative, and such authorized
representative is the true and official representative with authority to sign this Agreement and the other documents executed
in connection herewith and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution and delivery
by the Company of the Note, each of such instruments will constitute, a legal, valid and binding obligation of the Company enforceable
against the Company in accordance with its terms.

 

    	 	3	 

     

    

 

c.       Capitalization.
As of the date hereof, the authorized common stock of the Company consists of 200,000,000
authorized shares of Common Stock, $0.0001 par value per share, of which 42,724,692
shares are issued and outstanding; and 13,046,153 shares are reserved for
issuance upon conversion of the Note. All of such outstanding shares of capital stock are, or upon issuance will be, duly authorized,
validly issued, fully paid and non-assessable.

 

d.       Issuance
of Shares. The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the Note in accordance
with its respective terms, will be validly issued, fully paid and non-assessable, and free from all taxes, liens, claims and encumbrances
with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the
Company and will not impose personal liability upon the holder thereof.

 

e.       No
Conflicts. The execution, delivery and performance of this Agreement, the Note by the Company and the consummation by the
Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation for issuance
of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of the Certificate of Incorporation
or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default (or an event
which with notice or lapse of time or both could become a default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument to which the Company or any of
its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including
federal and state securities laws and regulations and regulations of any self-regulatory organizations to which the Company or
its securities are subject) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company
or any of its Subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments, accelerations,
cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect). The businesses of
the Company and its Subsidiaries, if any, are not being conducted, and shall not be conducted so long as the Buyer owns any of
the Securities, in violation of any law, ordinance or regulation of any governmental entity. “Material Adverse Effect”
means any material adverse effect on the business, operations, assets, financial condition or prospects of the Company or its
Subsidiaries, if any, taken as a whole, or on the transactions contemplated hereby or by the agreements or instruments to be entered
into in connection herewith.

 

    	 	4	 

     

    

 

f.       SEC
Documents; Financial Statements. The Company has filed all reports, schedules, forms, statements and other documents required
to be filed by it with the SEC pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended (the
“1934 Act”) (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements
and schedules thereto and documents (other than exhibits to such documents) incorporated by reference therein, being hereinafter
referred to herein as the “SEC Documents”). Upon written request the Company will deliver to the Buyer true and complete
copies of the SEC Documents, except for such exhibits and incorporated documents. As of their respective dates or if amended,
as of the dates of the amendments, the SEC Documents complied in all material respects with the requirements of the 1934 Act and
the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at
the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were
made, not misleading. None of the statements made in any such SEC Documents is, or has been, required to be amended or updated
under applicable law (except for such statements as have been amended or updated in subsequent filings prior the date hereof).
As of their respective dates or if amended, as of the dates of the amendments, the financial statements of the Company included
in the SEC Documents complied as to form in all material respects with applicable accounting requirements and the published rules
and regulations of the SEC with respect thereto. Such financial statements have been prepared in accordance with United States
generally accepted accounting principles, consistently applied, during the periods involved and fairly present in all material
respects the consolidated financial position of the Company and its consolidated Subsidiaries as of the dates thereof and the
consolidated results of their operations and cash flows for the periods then ended (subject, in the case of unaudited statements,
to normal year-end audit adjustments). The Company is subject to the reporting requirements of the 1934 Act.

 

g.       Absence
of Certain Changes. Since December 31, 2017, except as set forth in the SEC Documents, there has been no material adverse
change and no material adverse development in the assets, liabilities, business, properties, operations, financial condition,
results of operations, prospects or 1934 Act reporting status of the Company or any of its Subsidiaries.

 

h.       Absence
of Litigation. Except as set forth in the SEC Documents, there is no action, suit, claim, proceeding, inquiry or investigation
before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of
the Company or any of its Subsidiaries, threatened against or affecting the Company or any of its Subsidiaries, or their officers
or directors in their capacity as such, that could have a Material Adverse Effect. The Company and its Subsidiaries are unaware
of any facts or circumstances which might give rise to any of the foregoing.

 

i.       No
Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has directly
or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances that would
require registration under the 1933 Act of the issuance of the Securities to the Buyer. The issuance of the Securities to the
Buyer will not be integrated with any other issuance of the Company’s securities (past, current or future) for purposes
of any shareholder approval provisions applicable to the Company or its securities.

 

    	 	5	 

     

    

 

j.       No
Brokers. The Company has taken no action which would give rise to any claim by any person for brokerage commissions, transaction
fees or similar payments relating to this Agreement or the transactions contemplated hereby.

 

k.       No
Investment Company. The Company is not, and upon the issuance and sale of the Securities as contemplated by this Agreement
will not be an “investment company” required to be registered under the Investment Company Act of 1940 (an “Investment
Company”). The Company is not controlled by an Investment Company.

 

l.       Breach
of Representations and Warranties by the Company. If the Company breaches any of the representations or warranties set forth
in this Section 3, and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered
an Event of default under Section 3.4 of the Note.

 

4.       COVENANTS.

 

a.       Best
Efforts. The Company shall use its best efforts to satisfy timely each of the conditions described in Section 7 of this Agreement.

 

b.       Form
D; Blue Sky Laws. The Company agrees to timely make any filings required by federal and state laws as a result of the closing
of the transactions contemplated by this Agreement.

 

c.       Use
of Proceeds. The Company shall use the proceeds for general working capital purposes.

 

d.       Expenses.
At the Closing, the Company’s obligation with respect to the transactions contemplated by this Agreement is to reimburse
Buyer’ expenses shall be $3,000.00 for Buyer’s legal fees and due diligence fee.

 

e.       Corporate
Existence. So long as the Buyer beneficially owns any Note, the Company shall maintain its corporate existence and shall not
sell all or substantially all of the Company’s assets, except with the prior written consent of the Buyer.

 

f.       Breach
of Covenants. If the Company breaches any of the covenants set forth in this Section 4, and in addition to any other remedies
available to the Buyer pursuant to this Agreement, it will be considered an event of default under Section 3.4 of the Note.

 

g.       Failure
to Comply with the 1934 Act. So long as the Buyer beneficially owns the Note, the Company shall comply with the reporting
requirements of the 1934 Act; and the Company shall continue to be subject to the reporting requirements of the 1934 Act.

 

    	 	6	 

     

    

 

h.       Trading
Activities. Neither the Buyer nor its affiliates has an open short position in the common stock of the Company and the Buyer
agrees that it shall not, and that it will cause its affiliates not to, engage in any short sales of or hedging transactions with
respect to the common stock of the Company.

 

i.       Right
of First Refusal. Unless it shall have first delivered to the Buyer, at least forty eight (48) hours prior to the closing
of such Future Offering (as defined herein), written notice describing the proposed Future Offering (“ROFR Notice”),
including the terms and conditions thereof, identity of the proposed purchaser and proposed definitive documentation to be entered
into in connection therewith, and providing the Buyer an option during the forty eight (48) hour period following delivery of
such notice to purchase the securities being offered in the Future Offering on the same terms as contemplated by such Future Offering
(the limitations referred to in this sentence and the preceding sentence are collectively referred to as the “Right of First
Refusal”), the Company will not conduct any equity (or debt with an equity component) financing in an amount less than $150,000
(“Future Offering(s)”) during the period beginning on the Closing Date and ending nine (9) months following the Closing
Date. In the event the terms and conditions of a proposed Future Offering are amended in any respect after delivery of the notice
to the Buyer concerning the proposed Future Offering, the Company shall deliver a new notice to the Buyer describing the amended
terms and conditions of the proposed Future Offering and the Buyer thereafter shall have an option during the forty eight (48)
hour period following delivery of such new notice to purchase its pro rata share of the securities being offered on the same terms
as contemplated by such proposed Future Offering, as amended. Notwithstanding anything contained herein to the contrary, any subsequent
offer by an investor, or an affiliate of such investor, identified on an ROFR Notice is subject to this Section 4(h) and the Right
of First Refusal.

 

5.       Transfer
Agent Instructions. The Company shall issue irrevocable instructions to its transfer agent to issue certificates, registered
in the name of the Buyer or its nominee, for the Conversion Shares in such amounts as specified from time to time by the Buyer
to the Company upon conversion of the Note in accordance with the terms thereof (the “Irrevocable Transfer Agent Instructions”). 
In the event that the Company proposes to replace its transfer agent, the Company shall provide, prior to the effective date of
such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to this Agreement
(including but not limited to the provision to irrevocably reserve shares of Common Stock in the Reserved Amount as such term
is defined in the Note) signed by the successor transfer agent to Company and the Company. Prior to registration of the Conversion
Shares under the 1933 Act or the date on which the Conversion Shares may be sold pursuant to an exemption from registration, all
such certificates shall bear the restrictive legend specified in Section 2(e) of this Agreement.  The Company warrants that:
(i) no instruction other than the Irrevocable Transfer Agent Instructions referred to in this Section 5, will be given by the
Company to its transfer agent and that the Securities shall otherwise be freely transferable on the books and records of the Company
as and to the extent provided in this Agreement and the Note; (ii) it will not direct its transfer agent not to transfer or delay,
impair, and/or hinder its transfer agent in transferring (or issuing)(electronically or in certificated form) any certificate
for Conversion Shares to be issued to the Buyer upon conversion of or otherwise pursuant to the Note as and when required by the
Note and this Agreement; and (iii) it will not fail to remove (or directs its transfer agent not to remove or impairs, delays,
and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect
thereof) on any certificate for any Conversion Shares issued to the Buyer upon conversion of or otherwise pursuant to the Note
as and when required by the Note and/or this Agreement.  If the Buyer provides the Company and the Company’s transfer,
at the cost of the Buyer, with an opinion of counsel in form, substance and scope customary for opinions in comparable transactions,
to the effect that a public sale or transfer of such Securities may be made without registration under the 1933 Act, the Company
shall permit the transfer, and, in the case of the Conversion Shares, promptly instruct its transfer agent to issue one or more
certificates, free from restrictive legend, in such name and in such denominations as specified by the Buyer.  The Company
acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer, by vitiating the intent
and purpose of the transactions contemplated hereby.  Accordingly, the Company acknowledges that the remedy at law for a
breach of its obligations under this Section 5 may be inadequate and agrees, in the event of a breach or threatened breach by
the Company of the provisions of this Section, that the Buyer shall be entitled, in addition to all other available remedies,
to an injunction restraining any breach and requiring immediate transfer, without the necessity of showing economic loss and without
any bond or other security being required.

 

    	 	7	 

     

    

 

6.       Conditions
to the Company’s Obligation to Sell. The obligation of the Company hereunder to issue and sell the Note to the Buyer
at the Closing is subject to the satisfaction, at or before the Closing Date of each of the following conditions thereto, provided
that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion:

 

a.       The
Buyer shall have executed this Agreement and delivered the same to the Company.

 

b.       The
Buyer shall have delivered the Purchase Price in accordance with Section 1(b) above.

 

c.       The
representations and warranties of the Buyer shall be true and correct in all material respects as of the date when made and as
of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date),
and the Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the Buyer at or prior to the Closing Date.

 

d.       No
litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having
authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this
Agreement.

 

    	 	8	 

     

    

 

7.       Conditions
to The Buyer’s Obligation to Purchase. The obligation of the Buyer hereunder to purchase the Note at the Closing is
subject to the satisfaction, at or before the Closing Date of each of the following conditions, provided that these conditions
are for the Buyer’s sole benefit and may be waived by the Buyer at any time in its sole discretion:

 

a.       The
Company shall have executed this Agreement and delivered the same to the Buyer.

 

b.       The
Company shall have delivered to the Buyer the duly executed Note (in such denominations as the Buyer shall request) in accordance
with Section 1(b) above.

 

c.       The
Irrevocable Transfer Agent Instructions, in form and substance satisfactory to the Buyer, shall have been delivered to and acknowledged
in writing by the Company’s Transfer Agent.

 

d.       The
representations and warranties of the Company shall be true and correct in all material respects as of the date when made and
as of the Closing Date as though made at such time (except for representations and warranties that speak as of a specific date)
and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions
required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing Date. The Buyer
shall have received a certificate or certificates, executed by the chief executive officer of the Company, dated as of the Closing
Date, to the foregoing effect and as to such other matters as may be reasonably requested by the Buyer including, but not limited
to certificates with respect to the Board of Directors’ resolutions relating to the transactions contemplated hereby.

 

e.       No
litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having
authority over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this
Agreement.

 

f.       No
event shall have occurred which could reasonably be expected to have a Material Adverse Effect on the Company including but not
limited to a change in the 1934 Act reporting status of the Company or the failure of the Company to be timely in its 1934 Act
reporting obligations.

 

g.       The
Conversion Shares shall have been authorized for quotation on an exchange or electronic quotation system and trading in the Common
Stock on such exchange or electronic quotation system shall not have been suspended by the SEC or an exchange or electronic quotation
system.

 

h.       The
Buyer shall have received an officer’s certificate described in Section 3(d) above, dated as of the Closing Date.

 

    	 	9	 

     

    

 

i.       The
Buyer shall have received a fully executed confession of judgement (with notary) with respect to the Company and the obligations
of the Note.

 

j.       The
Buyer shall have received a fully completed and executed ACH Authorization Form with respect to a bank account of the Company.

 

8.       Governing
Law; Miscellaneous.

 

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

 

b.       Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other
party.

 

c.       Headings.
The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the interpretation
of, this Agreement.

 

d.       Severability.
In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then
such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform
with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect
the validity or enforceability of any other provision hereof.

 

    	 	10	 

     

    

 

e.       Entire
Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding of the parties
with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company
nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement
may be waived or amended other than by an instrument in writing signed by the majority in interest of the Buyer.

 

f.       Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified
most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed
effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile
machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice
is to be received), or the first business day following such delivery (if delivered other than on a business day during normal
business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express
courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur.
The addresses for such communications shall be as set forth in the heading of this Agreement with a copy by fax only to (which
copy shall not constitute notice) to Naidich Wurman LLP, 111 Great Neck Road, Suite 214, Great Neck, NY 11021, Attn: Allison Naidich,
facsimile: 516-466-3555, e-mail: allison@nwlaw.com. Each party shall provide notice to the other party of any change in
address.

 

g.       Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns.
Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the prior written
consent of the other. Notwithstanding the foregoing, the Buyer may assign its rights hereunder to any person that purchases Securities
in a private transaction from the Buyer or to any of its “affiliates,” as that term is defined under the 1934 Act,
without the consent of the Company.

 

h.       Survival.
The representations and warranties of the Company and the agreements and covenants set forth in this Agreement shall survive the
closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer. The Company agrees to
indemnify and hold harmless the Buyer and all their officers, directors, employees and agents for loss or damage arising as a
result of or related to any breach or alleged breach by the Company of any of its representations, warranties and covenants set
forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses as they
are incurred.

 

    	 	11	 

     

    

 

i.       Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request
in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

 

j.       No
Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

k.       Remedies.
The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer by vitiating
the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for
a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach or threatened breach
by the Company of the provisions of this Agreement, that the Buyer shall be entitled, in addition to all other available remedies
at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing
or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity of showing
economic loss and without any bond or other security being required.

 

 

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REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

    	 	12	 

     

    

 

IN
WITNESS WHEREOF, the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above
written.

 

DRONE
USA, INC.

 

	By: 	 /s/ Michael Bannon	 
	 	Michael Bannon	 
	 	Chief Executive
    Officer/Chief Financial Officer	 

 

POWER
UP LENDING GROUP LTD.

 

	By:	 /s/
Curt Kramer	 
	Name: 	Curt Kramer	 
	Title:	Chief Executive
    Officer	 
	 	111 Great
    Neck Road, Suite 216	 
	 	Great Neck,
    NY  11021	 

 

AGGREGATE
SUBSCRIPTION AMOUNT:

 

	Aggregate Principal Amount of Note:	 	$	53,000.00	 
	 	 	 	 	 
	Aggregate Purchase Price:	 	$	53,000.00	 

 

 

13

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