Document:

Exhibit

Exhibit 10.1
FIRST MODIFICATION AGREEMENT
DATE:                        September 20, 2019
PARTIES:
		
	Borrower:
	COLE CORPORATE INCOME OPERATING PARTNERSHIP III, LP, a Delaware limited partnership

Administrative Agent        JPMORGAN CHASE BANK, N.A.
for the Lenders:    
		
	Lenders:
	Lenders that are signatories hereto

RECITALS
A.Lenders have extended to Borrower a credit facility (“Loan”) in a maximum principal amount not to exceed $100,000,000.00 any time pursuant to that Credit Agreement dated as of September 23, 2016, among Borrower, Administrative Agent and the Lenders a party thereto (the “Original Credit Agreement”).  The Original Credit Agreement was modified by two letter agreements, dated September 28, 2017 and October 31, 2018 (the “Letter Agreements”).  The Original Credit Agreement as modified by such Letter Agreements, is hereinafter, the “Credit Agreement”).  The Total Outstandings, as defined in the Credit Agreement, as of September 20, 2019, is $24,175,000.00.  All undefined capitalized terms used herein shall have the meaning given them in the Credit Agreement, after giving effect to the Modifications in Section 2 below.
B.The Continuing Guaranty dated as of September 23, 2016, from Cole Office & Industrial REIT (CCIT III), Inc., a Maryland corporation, and the original Subsidiary Guarantor a party thereto (including each counterpart agreement thereto, the “Guaranty”) was delivered to Administrative Agent for the benefit of the Lenders.
C.Borrower has requested certain amendments to the Credit Agreement as described herein.  The Lenders and Administrative Agent are willing to agree to such amendments pursuant to the terms and conditions of this Amendment. 
AGREEMENT
For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Borrower, Administrative Agent and the Lenders agree as follows:
		
	SECTION 1. 
	ACCURACY OF RECITALS.

Borrower acknowledges the accuracy of the Recitals.
		
	SECTION 2. 
	MODIFICATION OF LOAN DOCUMENTS.

2.1.Section 1.01 of the Credit Agreement is hereby modified to modify the definitions of “Aggregate Revolving Commitments”, “Asset Value” and “Maturity Date”, each of which shall hereafter read as follows:

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“Aggregate Revolving Commitments” means the Revolving Commitments of all the Revolving Lenders.  The aggregate principal amount of the Aggregate Revolving Commitments in effect from and after September 20, 2019 is Twenty-Nine Million, Two Hundred and Eighty Thousand and No/100 DOLLARS ($29,280,000.00). 
“Asset Value” means, as of any date of calculation, the sum of: (i) prior to an Unsecured Conversion, the lesser of, (a) the Appraised Value of each Qualified Property, and (b) 100% of the actual purchase price paid for each Qualified Property (excluding any costs and expenses incurred in connection therewith that were added to the purchase price, all as reasonably calculated and suggested by Borrower and approved by Administrative Agent in its reasonable discretion), and (ii) on and after an Unsecured Conversion:  (a) for Qualified Properties owned eighteen (18) months or more, an amount equal to (x) Consolidated Net Operating Income during the Measurement Period most recently ended for such Qualified Properties divided by (y) the Capitalization Rate, plus (b) one hundred percent (100%) of the actual purchase price paid for Qualified Properties owned less than eighteen (18) months (excluding any costs and expenses incurred in connection therewith that were added to the purchase price, all as reasonably calculated and suggested by Borrower and approved by Administrative Agent in its reasonable discretion); provided, however, that after the First Anniversary Date, (A) Qualified Properties that are multi-tenant Projects shall not account for more than twenty-five percent (25%) of Asset Value, (B) the aggregate sum of repositioning Projects shall not account for more than ten percent (10%) of the Asset Value, and (C) Dark Qualified Properties will not account for greater than five percent (5%) of Asset Value without Administrative Agent’s reasonable approval, provided that if the applicable Qualified Properties exceed the percentage limitation in subsection (A), then the applicable Qualified Properties may continue to be included in the calculation of Asset Value, but the Asset Value shall be reduced by an amount to exclude therefrom, the portion of the Asset Value attributable to the excess of such percentage limitations, as reasonably calculated by the Borrower, and which calculations are reasonably acceptable to the Administrative Agent.
“Maturity Date” means September 23, 2020.
2.2.Sections 2.14, 2.17 and 6.13(c) of the Credit Agreement are hereby modified to hereafter read as follows:
2.14  [Intentionally Omitted] 
2.17  [Intentionally Omitted] 
6.13(c)  [Intentionally Omitted]  

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2.3.Schedule 2.01 of the Credit Agreement is modified to hereafter read as follows:
COMMITMENTS
AND APPLICABLE PERCENTAGES
Revolving Commitments
	
			
	Lender
	Commitment
	Applicable Percentage

	JPMORGAN CHASE BANK, N.A.
	$14,640,000.00
	50.000000000%

	KEYBANK, NATIONAL ASSOCIATION
	$14,640,000.00
	50.000000000%

	Total
	$29,280,000.00
	100.000000000%

Term Commitments
	
			
	Lender
	Commitment
	Applicable Percentage

	NONE
	$ 00.00
	%

	 
	 
	 

	Total
	$ 00.00
	100.000000000%

		
	SECTION 3. 
	RATIFICATION OF LOAN DOCUMENTS AND COLLATERAL.

The Loan Documents are ratified and affirmed by Borrower and shall remain in full force and effect as modified herein.  Any property or rights to or interests in property granted as security in the Loan Documents shall remain as security for the Loan and the obligations of Borrower in the Loan Documents.
		
	SECTION 4. 
	BORROWER REPRESENTATIONS AND WARRANTIES.

Borrower represents and warrants to Administrative Agent and the Lenders:
4.1No Default exists under the Loan Documents;
4.2After giving effect to the modifications in this Agreement, no Default will exist under the Loan Documents;
4.3There has been no material adverse change in the financial condition of Borrower or any member of the Consolidated Group from the most recent financial statement received by Administrative Agent.
4.4All representations and warranties made by Borrower and set forth in the Loan Documents are true and correct in all material respects on the date hereof, except to the extent such representations and warranties refer to an earlier date, in which case they shall be true and correct, in all material respects, as of such earlier date.
4.5As of the date hereof, Borrower knows of no claims, counterclaims, defenses, or set-offs with respect to the Loan or the Loan Documents as modified herein.
4.6The Loan Documents as modified herein are the legal, valid, and binding obligation of Borrower, enforceable against Borrower in accordance with their terms, subject to or limited by bankruptcy, insolvency, reorganization, arrangement, moratorium, or other similar laws relating to or affecting the rights of creditors generally and by equitable principles of general application.
4.7Borrower is validly existing under the laws of the State of its formation or organization and has the requisite power and authority to execute and deliver this Agreement and to perform the Loan Documents as modified herein.  The execution and delivery of this Agreement and the performance of the 

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Loan Documents as modified herein have been duly authorized by all requisite action by or on behalf of Borrower.  This Agreement has been duly executed and delivered on behalf of Borrower.
		
	SECTION 5. 
	CONDITIONS PRECEDENT.

The agreements of Administrative Agent and the Lenders and the modifications contained herein shall not be binding upon Administrative Agent or the Lenders until Administrative Agent and Lenders have executed and delivered this Agreement, and Administrative Agent (has received, at Borrower’s expense, all of the following, all of which shall be in form and content satisfactory to Administrative Agent and shall be subject to approval by Administrative Agent:
5.1.An original of this Agreement fully executed by Borrower;
5.2.An original of the attached Consent and Agreement of Guarantor fully executed by Guarantors; 
5.3.To the extent the Total Outstandings exceed the Borrowing Base after giving effect to the new Aggregate Commitment, Borrower shall have made the required principal payment; 
5.4.Certificates of the Borrower and the Guarantors regarding authority, execution and delivery of this Agreement, which certificates may be a component of other certificates issued on matters and transactions beyond the scope of this Agreement; and
5.5    Payment of all reasonable out-of-pocket external costs and expenses incurred by Administrative Agent in connection with this Agreement (including, without limitation, outside attorneys costs, expenses, and fees).
		
	SECTION 6. 
	INTEGRATION, ENTIRE AGREEMENT, CHANGE, DISCHARGE, TERMINATION, OR WAIVER.

The Loan Documents as modified herein contain the complete understanding and agreement of Borrower, Administrative Agent and the Lenders in respect of the Loan and supersede all prior representations, warranties, agreements, arrangements, understandings, and negotiations.  No provision of the Loan Documents as modified herein may be changed, discharged, supplemented, terminated, or waived except as provided in the Credit Agreement.  The terms of this Agreement shall control with respect to any inconsistencies, conflicts or ambiguities between or among the Agreement and the other Loan Documents.
		
	SECTION 7. 
	BINDING EFFECT.

The Loan Documents as modified herein shall be binding upon and shall inure to the benefit of Borrower, Administrative Agent and the Lenders and their permitted successors and assigns.
		
	SECTION 8. 
	CHOICE OF LAW.

THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK
		
	SECTION 9. 
	COUNTERPART EXECUTION.

This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Agreement by telecopy or other electronic imaging means shall be effective as delivery of a manually executed counterpart of this Agreement.
[Signatures on Following Pages]

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DATED as of the date first above stated.

BORROWER:

COLE CORPORATE INCOME OPERATING PARTNERSHIP III, LP, a Delaware limited partnership, as Borrower

		
	By:
	Cole Office & Industrial REIT (CCIT III), Inc., a Maryland corporation, its General Partner

By:    /s/ Nathan D. DeBacker    
Name:    Nathan D. DeBacker
		
	Title:
	Chief Financial Officer and Treasurer    

ADMINISTRATIVE AGENT:

JPMORGAN CHASE BANK, N.A.

By:    /s/ Ryan M. Dempsey
Name:    Ryan M. Dempsey
Title:    Authorized Officer

LENDERS:

JPMORGAN CHASE BANK, N.A.

By:    /s/ Ryan M. Dempsey    
Name:    Ryan M. Dempsey
Title:    Authorized Officer

KEYBANK NATIONAL ASSOCIATION,

By:    /s/ Jennifer L. Power    
Name:    Jennifer L. Power
		
	Title:
	Vice President

                            

            
CONSENT AND AGREEMENT OF GUARANTOR
With respect to the First Modification Agreement dated September 20, 2019 (the “Agreement”), among COLE CORPORATE INCOME OPERATING PARTNERSHIP III, LP, a Delaware limited partnership (“Borrower”), the Lenders a party thereto  (the “Lenders”) and JPMORGAN CHASE BANK, N.A., a national banking association (“Administrative Agent”) (as Administrative Agent for the Lenders; capitalized terms used herein but not defined herein shall have the meanings ascribed thereto in the Credit Agreement referenced in the Agreement), the undersigned (severally and collectively “Guarantor”) agrees for the benefit of Lenders as follows:
1.Guarantor acknowledges (i) receiving a copy of and reading the Agreement, (ii) the accuracy of the Recitals in the Agreement, and (iii) the effectiveness of (A) its Guaranty, and (B) any other agreements, documents, or instruments securing or otherwise relating to such Guaranty.  Each Guaranty and such other agreements, documents, and instruments are referred to individually and collectively as the “Guarantor Documents.”
2.Guarantor consents to the modification of the Loan Documents as provided in the Agreement and all other matters in the Agreement.
3.Guarantor agrees that all references, if any, to any Note, the Credit Agreement and the Loan Documents in the Guarantor Documents shall be deemed to refer to such agreements, documents, and instruments as modified and/or replaced by or pursuant to the Agreement.
4.Guarantor reaffirms the Guarantor Documents and agrees that the Guarantor Documents continue in full force and effect and remain unchanged, except as specifically modified by this Consent and Agreement of Guarantor.
5.Guarantor agrees that the Guarantor Documents are the legal, valid, and binding obligations of the undersigned, enforceable in accordance with their terms against the undersigned, subject to or limited by bankruptcy, insolvency, reorganization, arrangement, moratorium, or other similar laws relating to or affecting the rights of creditors generally and by equitable principles of general application.
6.Guarantor agrees that, as of the date hereof, Guarantor knows of no claims, counterclaims, defenses, or offsets with respect to the enforcement against Guarantor of the Guarantor Documents.
7.Guarantor represents and warrants that there has been no material adverse change in the financial condition of any Guarantor from the most recent financial statement received by Administrative Agent.
8.Guarantor agrees that this Consent and Agreement of Guarantor may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Consent and Agreement of Guarantor by telecopy or other electronic imaging means shall be effective as delivery of a manually executed counterpart of this Consent and Agreement of Guarantor. 

DATED as of the date of the Agreement.

GUARANTORS:

COLE OFFICE & INDUSTRIAL REIT (CCIT III), INC., 
a Maryland corporation

By:    /s/ Nathan D. DeBacker
Name:    Nathan D. DeBacker
Title:    Chief Financial Officer and Treasurer

VEREIT OFC MILFORD OH, LLC,
a Delaware limited liability company

		
	By:
	Cole Corporate Income Management III, LLC, 

a Delaware limited liability company, its Manager 

By:    /s/ Nathan D. DeBacker
Name:    Nathan D. DeBacker
		
	Title:
	Vice President

COLE ID COLUMBUS WI, LLC, 
a Delaware limited liability company

		
	By: 
	Cole Corporate Income Management III, LLC,

a Delaware limited liability company, its Manager

By:    /s/ Nathan D. DeBacker    
Name:    Nathan D. DeBacker
		
	Title:
	Vice President2019 HIREQUEST, INC. NON-EMPLOYEE DIRECTOR
COMPENSATION PLAN

 

1.   
Purpose. This Non-Employee Director
Compensation Plan (the "Plan") is intended to attract highly-qualified individuals to serve as Non-Employee Directors
of HireQuest, Inc. (the "Company") and to provide Non-Employee Directors with incentives and rewards that motivate
superior oversight and protection of the Company’s business.

 

2.   
Definitions.

 

"Affiliate"
means a corporation or other entity that, directly or through one or more intermediaries, controls, is controlled by or is under
common control with, the Company.

 

"Annual
Award" means an equity award granted pursuant to Section 6.3 of the Plan.

 

"Audit
Committee" means the Audit Committee of the Board.

 

"Award"
means an Annual Award or an Initial Award.

 

"Award
Agreement" means an agreement by and between a Non-Employee Director and the Company evidencing the terms of an Award
and entered into pursuant to the terms of the Equity Incentive Plan.

 

"Board
Annual Retainer" means the annual fee payable by the Company to a Non-Employee Director with respect to his or her service
as a member of the Board.

 

"Board
or Board of Directors" means the Board of Directors of the Company, as constituted from time to time.

 

"Board
Term" means the approximate 12-month period commencing on the date of the Company's annual meeting of shareholders at
which Board members are elected or appointed for the year.

 

"Cause"
means a determination by a majority of the disinterested Board members that the Non-Employee Director has engaged in any of the
following:

 

(a) malfeasance
in office;

 

     

     

    

 

(b) gross
misconduct or neglect;

 

(c) false
or fraudulent misrepresentation inducing the director's appointment;

 

(d) willful
conversion of corporate funds; or

 

(e) repeated
failure to participate in Board meetings on a regular basis despite having received proper notice of the meetings in advance.

 

"Change
in Control" has the same meaning as in the Equity Incentive Plan.

 

"Code"
means the Internal Revenue Code of 1986, as it may be amended from time to time. Any reference to a section of the Code shall be
deemed to include a reference to any regulations promulgated thereunder.

 

"Committee"
means a standing committee of the Board.

 

"Committee
Annual Retainer" means the annual fee payable by the Company to a Non-Employee Director with respect to his or her service
on a Committee (which shall not include the Chair of such Committee).

 

"Committee
Chair" means the Non-Employee Director serving as the chair of a Committee.

 

"Committee
Chair Annual Retainer" means the annual fee payable by the Company to a Committee Chair with respect to his or her service
as a Committee Chair.

 

"Company"
means HireQuest, Inc., a Delaware corporation, including any successor thereto.

 

"Compensation
Committee" means the Compensation Committee of the Board.

 

"Effective
Date" means the date as of which this Plan is adopted by the Board.

 

"Equity
Incentive Plan" means the Command Center, Inc. 2016 Stock Incentive Plan.

 

    2 

     

    

 

"Grant
Date" means, with respect to an Annual Award, the date of the annual meeting of shareholders at which the Non-Employee
Director is appointed or elected for the next Board Term and with respect to an Initial Award, the date on which the Board adopts
this Plan.

 

"Initial
Award" means an equity award granted pursuant to Section 6.2 of the Plan.

 

"Nominating
and Governance Committee" means the Nominating and Governance Committee of the Board.

 

"Non-Employee
Director" means a member of the Board who is not an officer or employee of the Company or any of its subsidiaries or Affiliates.

 

"Plan"
means this 2019 HireQuest, Inc. Non-Employee Director Compensation Plan, as set forth herein, and as amended from time to time.

 

"Quarterly
Payment Dates" has the meaning set forth in Section 5.4 of the Plan.

 

“Restricted
Shares” means all restricted shares of Company common stock issued to non-employee directors pursuant to this Agreement
and the Equity Incentive Plan.

 

"Restricted
Share Account" means the recordkeeping account established by the Company for each Non-Employee Director for which Restricted
Shares are credited in accordance with Section 6 of the Plan.

 

"Section
409A" means Section 409A of the Code and all authoritative interpretive guidance issued thereunder.

 

"Separation
from Service" means a Non-Employee Director ceasing to be a member of the Board due to a voluntary or involuntary separation
from service, for any reason, determined in accordance with Section 409A.

 

"Share"
means a share of the Company's common stock, par value $0.001.

 

“Vice-Chairman
Annual Retainer” means the annual fee payable by the Company to the Vice-Chairman of the Board with respect to his or
her service as Vice-Chairman of the Board.

 

    3 

     

    

 

3.   
Administration. The Plan shall be administered
by the Compensation Committee which shall have the authority to construe and interpret the Plan, prescribe, amend and rescind rules
relating to the Plan's administration and take any other actions necessary or desirable for the administration of the Plan. The
Compensation Committee may correct any defect or supply any omission or reconcile any inconsistency or ambiguity in the Plan. The
decisions of the Compensation Committee shall be final and binding on all persons. All expenses of administering the Plan shall
be borne by the Company.

 

4.   
Eligibility. Each Non-Employee Director
shall be eligible to receive the compensation provided hereunder. Directors who are also employees of the Company do not receive
additional compensation for service as a director and shall not be eligible to participate in the Plan.

 

5.   
Cash Compensation.

 

5.1    
Board Member Annual Retainer. Each
Non-Employee Director who is elected or appointed to the Board at an annual meeting of shareholders shall receive a Board Annual
Retainer for the Board Term that commences on election or appointment at such meeting. The amount of the Board Annual Retainer
shall be $36,000.00.

 

A Non-Employee
Director who is appointed or elected to the Board after the annual meeting of shareholders but during the applicable Board Term
or who experiences a Separation from Service during the Board Term shall receive a pro-rated portion of the Board Annual Retainer
for the Board Term based on the number of complete days of the Board Term during which the Non-Employee Director serves as a member
of the Board, unless otherwise determined by the Compensation Committee.

 

5.2    
Committee Annual Retainer. Each
Non-Employee Director who is appointed to serve as a member (but not the Chair) of a Committee by the Board of Directors on the
date of the annual meeting of shareholders shall receive a Committee Annual Retainer for the Board Term that commences on appointment.
The amount of the Committee Annual Retainer shall be as follows:

 

(a)    
Members of the Audit Committee shall be paid a Committee Annual Retainer of $5,500.00;

 

(b)    
Members of the Compensation Committee shall be paid a Committee Annual Retainer of $3,500.00;

 

    4 

     

    

 

(c)    
Members of the Nominating and Governance Committee shall be paid a Committee Annual Retainer of $3,500.00; and

 

(d)    
Members of any other special committee established by the Board shall be paid a Committee Annual Retainer, if any, as determined
by the Board.

 

A Non-Employee
Director who is appointed to a Committee after the annual meeting of shareholders but during the applicable Board Term or who experiences
a Separation from Service during the Board Term shall receive a pro-rated portion of the Committee Annual Retainer for the Board
Term based on the number of complete days of the Board Term during which the Non-Employee Director serves on the applicable Committee,
unless otherwise determined by the Compensation Committee.

 

5.3    
Vice-Chairman Annual Retainer; Committee Chair
Annual Retainer. Each Non-Employee Director who is appointed either to serve as Vice-Chairman of the Board or to serve
as a Committee Chair by the Board of Directors on the date of the annual meeting of shareholders shall receive a Vice-Chairman
Annual Retainer or Committee Chair Annual Retainer, as applicable, for the Board Term that commences on appointment. The amount
of such Vice-Chairman Annual Retainer or Committee Chair Annual Retainer shall be as follows:

 

(a)    
The Vice-Chairman of the Board shall be paid a Vice-Chairman Annual Retainer of $12,500.00;

 

(b)    
The Chair of the Audit Committee shall be paid a Committee Chair Annual Retainer of $8,500.00;

 

(c)    
The Chair of the Compensation Committee shall be paid a Committee Chair Annual Retainer of $5,500.00;

 

(d)    
The Chair of the Nominating and Governance Committee shall be paid a Committee Chair Annual Retainer of $5,500.00; and

 

(e)    
The Chair of any other special committee established by the Board shall be paid a Committee Chair Annual Retainer, if any, as determined
by the Board.

 

A Non-Employee
Director who is appointed as a Committee Chair after the annual meeting of shareholders but during the applicable Board Term or
who experiences a Separation from Service during the Board Term shall receive a pro-rated portion of the Committee Chair Annual
Retainer for the Board Term based on the number of complete days of the Board Term during which the Non-Employee Director serves
as the applicable Committee Chair, unless otherwise determined by the Compensation Committee.

 

    5 

     

    

 

For the sake
of clarity, a Non-Employee Director shall not be entitled to both a Committee Annual Retainer and a Committee Chair Annual Retainer
with respect to the same Committee and Board Term.

 

5.4    
Form of Payment of Annual Retainers.  Except
as otherwise provided herein, Board Annual Retainers, Committee Annual Retainers, Vice-Chairman Annual Retainers, and Committee
Chair Annual Retainers, as applicable, shall be paid in cash, in arrears, in equal quarterly installments due within 15 days after
the end of a fiscal quarter (the "Quarterly Payment Dates"). Any pro-rated portion of any Board Annual Retainer,
Committee Annual Retainer, Vice-Chairman Annual Retainer or Committee Chair Annual Retainer, as applicable, for any quarter shall
be payable on the next regularly scheduled Quarterly Payment Date.

 

6.   
Equity Compensation.

 

6.1    
Source of Shares. All grants of
equity awards contemplated by this Plan shall be issued under the Equity Incentive Plan, subject to all of the terms and conditions
thereof and only to the extent that Shares remain available for issuance under the Equity Incentive Plan. The terms of the Equity
Incentive Plan are incorporated into this Plan with respect to any equity awards paid hereunder. In the event of any inconsistency
between the Equity Incentive Plan and this Plan with respect to the equity awards, the terms of the Equity Incentive Plan shall
control. The Plan does not constitute a separate source of Shares for the granting of any equity awards hereunder.

 

6.2    
Initial Awards.  

 

(a)    
Initial Restricted Shares.

 

On the Grant
Date for Initial Awards, each Non-Employee Director then serving on the Board will receive an Initial Award consisting of 15,000
Restricted Shares (the “Initial Restricted Shares”). The Initial Restricted Shares shall be granted pursuant to the
terms of the Equity Incentive Plan and an Award Agreement between the Non-Employee Director and the Company.

 

    6 

     

    

 

(b)    
Vesting of Initial Restricted Shares.

 

The Initial
Restricted Shares shall vest in three equal annual installments beginning on the date that immediately precedes the 2020 annual
meeting of shareholders of the Company, with the remainder vesting in equal installments on the first two anniversaries of that
date, provided, however, that if the vesting date would otherwise occur during a Company blackout period pursuant to the
Company’s Insider Trading Policy, said shares shall vest on the first day immediately following the end of the blackout period.
Except as otherwise provided herein, if a Non-Employee Director experiences a Separation from Service before the Initial Restricted
Shares vest, then the unvested portion of the Initial Restricted Shares shall be automatically forfeited, provided, however,
that all non-employee directors serving on the date immediately preceding an annual meeting shall not forfeit that year’s
vesting solely because vesting occurs during a blackout period.

 

Notwithstanding
the foregoing, if a Change in Control occurs and a Non-Employee Director's service is involuntarily terminated by the Company or
an Affiliate other than for Cause and the Non-Employee Director's termination date occurs within 12 months following a Change in
Control, the unvested portion of the Non-Employee Director's Initial Restricted Shares shall immediately vest on the date of the
Non-Employee Director's Separation from Service.

 

(c)    
Voting and Dividends.

 

A Non-Employee
Director shall have a right to vote any Initial Restricted Shares during the vesting period. In addition, the Non-Employee Director’s
Restricted Share Account shall be credited with stock equivalent to all dividends paid during the vesting period. Said dividends
are subject to vesting of the Initial Restricted Shares and shall be forfeited in the event the Initial Restricted Shares do not
vest.

 

6.3    
Annual Awards.

 

(a)     Annual
Restricted Shares.

 

On the Grant Date for Annual
Awards, each Non-Employee Director who continues as a member of the Board following the annual meeting of shareholders will receive
an Annual Award consisting of 5,000 Restricted Shares (“Annual Restricted Shares”). The Annual Restricted Shares shall
be granted pursuant to the terms of the Equity Incentive Plan and an Award Agreement between the Non-Employee Director and the
Company.

 

    7 

     

    

 

(b)    
Vesting of Annual Restricted Shares.

 

The Annual
Restricted Shares shall vest in full on the three-month anniversary of the corresponding Grant Date for Annual Awards, provided,
however, that if the vesting date would otherwise occur during a Company blackout period pursuant to the Company’s Insider
Trading Policy, said shares shall vest on the first day immediately following the end of the blackout period. Except as otherwise
provided herein, if a Non-Employee Director experiences a Separation from Service before the Annual Restricted Shares vest, then
the unvested portion of the Annual Restricted Shares shall be automatically forfeited, provided, however, that all non-employee
directors serving on the date immediately preceding an annual meeting shall not forfeit that year’s vesting solely because
vesting occurs during a blackout period.

 

Notwithstanding
the foregoing, if a Change in Control occurs and a Non-Employee Director's service is involuntarily terminated by the Company or
an Affiliate other than for Cause and the Non-Employee Director's termination date occurs within 12 months following a Change in
Control, the unvested portion of the Non-Employee Director's Annual Restricted Shares shall immediately vest on the date of the
Non-Employee Director's Separation from Service.

 

(c)    
Voting and Dividends.

 

A Non-Employee
Director shall have a right to vote any Annual Restricted Shares during the vesting period. In addition, the Non-Employee Director’s
Restricted Share Account shall be credited with stock equivalent to all dividends paid during the vesting period. Said dividends
are subject to vesting of the Annual Restricted Shares and shall be forfeited in the event the Annual Restricted Shares do not
vest.

 

7.   
Reimbursement of Expenses. The Company
shall reimburse each Non-Employee Director for his or her reasonable business expenses incurred in connection with the performance
of his or her duties, including reasonable travel and other expenses incurred by the Non-Employee Director to attend Board and
Committee meetings. Each Non-Employee Director shall provide to the Company such receipts and other records related to such reimbursable
expenses as the Company may require.

 

    8 

     

    

 

8.    
To the extent that any reimbursement under the Plan provides for a deferral of compensation under Section 409A, (a) the amount
eligible for reimbursement in one calendar year may not affect the amount eligible for reimbursement in any other calendar year;
(b) the right to reimbursement is not subject to liquidation or exchange for another benefit; and (c) any such reimbursement of
an expense must be made on or before the last day of the calendar year following the calendar year in which the expense
was incurred.

 

9.   
Stock Ownership Requirements. Non-Employee Directors must
own, by the later of July 15, 2021 or the second anniversary of their initial election or appointment to the Board, Shares having
a value equal to the amount of the Board Annual Retainer in place at the time of his or her initial election or appointment to
the Board. Stock ownership for purposes of these guidelines includes Shares purchased on the open market or received via the Company’s
Director Stock Purchase Matching Program set forth in Section 10, below, but does not include shares received via Initial Awards
or Annual Awards. The Board may make exception to this policy in its discretion. 

 

10.   Director
Stock Purchase Matching Program. The Company shall match 20% of the purchases of common stock of the Company that any
Non-Employee Director makes during the time period commencing on the Effective Date and ending on the date on which the stock ownership
requirements in Section 9 above no longer apply to such Non-Employee Director (“Stock Purchase Matching Period”). For
purposes of this section, a purchase shall include stock received by a director in-lieu of cash compensation due to the Director
for providing services. This program shall be subject to the following terms and conditions:

 

(a)    
The shares of common stock issued by the Company pursuant to this Section shall be Restricted Shares (the “Matching Restricted
Stock”) and shall not vest until the second anniversary of the date on which the Non-Employee Director purchased the common
stock that triggered the matching obligation (a “Triggering Purchase”).

 

(b)    
If such anniversary occurs during a Company blackout period under the Company’s Insider Trading Policy, the Matching Restricted
Stock shall vest on the first day immediately following the end of the blackout period.

 

(c)    
The Matching Restricted Stock shall only vest if the Non-Employee Director serves on the Board on such vesting date and owns at
least the same number of shares of Company common stock that were matched at the time of the Triggering Purchase.

 

    9 

     

    

 

(d)    
The number of shares of Matching Restricted Stock that the Company shall issue to any one Non-Employee Director pursuant to this
Section shall not exceed $25,000 in value in the aggregate within any one-year period.

 

(e)    
The Board may accommodate exceptions to these provisions in its discretion to account for special or unforeseen circumstances.

 

11.  
General Provisions.

 

11.1  
Unfunded Obligations. The amounts
to be paid to Non-Employee Directors under the Plan are unfunded obligations of the Company. The Company is not required to segregate
any monies or other assets from its general funds with respect to these obligations. Non-Employee Directors shall not have any
preference or security interest in any assets of the Company other than as a general unsecured creditor.

 

11.2  
No Right to Continued Board Membership.
Neither the Plan nor any compensation paid hereunder will confer on any Non-Employee Director the right to continue to serve as
a member of the Board or in any other capacity.

 

11.3  
Nonassignment. Any and all rights
of a Non-Employee Director respecting payments under this Plan may not be assigned, transferred, pledged or encumbered in any manner,
other than by will or the laws of descent and distribution, and any attempt to do so shall be void.

 

11.4  
Successors and Assigns. The Plan
shall be binding on the Company and its successors and assigns.

 

11.5  
Entire Plan. This Plan constitutes
the entire plan with respect to the subject matter hereof (other than matters covered by the Equity Incentive Plan) and supersedes
all prior plans with respect to the subject matter hereof.

 

11.6  
Compliance with Law. The obligations
of the Company with respect to payments under the Plan are subject to compliance with all applicable laws and regulations.

 

11.7  
Term of Plan. The Plan shall become
effective on the Effective Date and shall continue until terminated by the Board.

 

11.8  
Termination and Amendment. The Board
may at any time amend or modify this Plan in whole or in part. Notwithstanding the foregoing, no amendment or termination of the
Plan may impair the right of a Non-Employee Director to receive any amounts accrued hereunder prior to the effective date of such
amendment or termination.

 

    10 

     

    

 

11.9  
Applicable Law. The law of the State of
Delaware shall govern all questions concerning the construction, validity and interpretation of the Plan, without regard to such
state's conflict of law rules.

 

11.10
Section 409A. The Plan is intended to comply
with the requirements of Section 409A, to the extent applicable, and shall be interpreted accordingly. Notwithstanding the foregoing,
the Company makes no representations or covenants that any compensation paid or awarded under the Plan will comply with Section
409A.

 

11.11 Withholding.
To the extent required by applicable Federal, state or local law, a Non-Employee Director must make arrangements satisfactory to
the Company for the payment of any withholding or similar tax obligations that arise in connection with the Plan.

 

11.12
Severability. If any provision of the Plan
shall for any reason be held to be invalid or unenforceable, such invalidity or unenforceability shall not affect any other provision
hereof, and the Plan shall be construed as if such invalid or unenforceable provision were omitted.

 

11.13 Headings.
The headings of sections herein are included solely for convenience and shall not affect the meaning of any of the provisions
of the Plan.

 

 

11

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