Document:

Exhibit 10.2

 

REGISTRATION
RIGHTS AGREEMENT

 

REGISTRATION
RIGHTS AGREEMENT (this “Agreement”), dated as of August 20, 2021 (the “Execution Date”), is
entered into by and between Luduson G Inc., a Delaware corporation (the “Company”), and Williamsburg Venture
Holdings, LLC, a Nevada limited liability company (together with its permitted assigns, the “Buyer”). Capitalized
terms used herein and not otherwise defined herein shall have the respective meanings set forth in that certain Equity Purchase Agreement
by and between the parties hereto, dated as of the Execution Date (as amended, restated, supplemented or otherwise modified from time
to time, the “Purchase Agreement”).

 

WHEREAS:

 

The Company has
agreed, upon the terms and subject to the conditions of the Purchase Agreement, to sell to the Buyer up to Thirty Million Dollars ($30,000,000.00)
of Put Shares, and to induce the Buyer to enter into the Purchase Agreement, the Company has agreed to provide certain registration rights
under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively,
the “Securities Act”), and applicable state securities laws.

 

NOW, THEREFORE,
in consideration of the promises and the mutual covenants contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and the Buyer hereby agree as follows:

 

1.                  
DEFINITIONS.

 

As used in this Agreement, the following terms shall have
the following meanings:

 

a.    
“Investor” means the Buyer, any transferee or assignee thereof to whom the Buyer assigns its rights under this
Agreement in accordance with Section 9 and who agrees to become bound by the provisions of this Agreement, and any transferee or
assignee thereof to whom a transferee or assignee assigns its rights under this Agreement in accordance with Section 9 and who
agrees to become bound by the provisions of this Agreement.

 

b.   
“Person” means any individual or entity including but not limited to any corporation, a limited liability company,
an association, a partnership, an organization, a business, an individual, a governmental or political subdivision thereof or a governmental
agency.

 

c.    
“Register,” “Registered,” and “Registration” refer to a registration effected
by preparing and filing one or more registration statements of the Company in compliance with the Securities Act and/or pursuant to Rule
415 under the Securities Act or any successor rule providing for the offering of securities on a continuous basis (“Rule 415”),
and the declaration or ordering of effectiveness of such registration statement(s) by the United States Securities and Exchange Commission
(the “SEC”).

 

d.   
“Registrable Securities” means all of the (i) Commitment Shares, (ii) Put Shares which have been, or which
may, from time to time be issued, including without limitation all of the shares of Common Stock which have been issued or will be issued
to the Investor under the Purchase Agreement (without regard to any limitation or restriction on purchases), (iii) any and all shares
of capital stock issued or issuable with respect to each of the Transaction Documents, and (iv) any and all shares of capital stock issued
or issuable with respect to the Put Shares, Commitment Shares and the Purchase Agreement as a result of any stock split, stock dividend,
recapitalization, exchange or similar event or otherwise, without regard to any limitation on purchases under the Purchase Agreement,
and (v) any shares of common stock issued or issuable under that certain Investment Agreement with Strattner Alternative Credit Fund
L.P.

 

e.    
“Registration Statement” means one or more registration statements of the Company on Form S-1 covering only
the resale of the Registrable Securities including the Initial Registration Statement and any New Registration Statement or Other Registration
Statement (each as defined herein).

 

 

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2.                  
REGISTRATION.

 

a.    
Mandatory Registration. The Company shall, by November 30, 2021, file with the SEC an initial Registration Statement on
Form S-1 covering the maximum number of Registrable Securities as shall be permitted to be included thereon in accordance with applicable
SEC rules, regulations and interpretations so as to permit the resale of such Registrable Securities by the Investor, including but not
limited to under Rule 415 under the Securities Act at then prevailing market prices (and not fixed prices), as mutually determined by
both the Company and the Investor in consultation with their respective legal counsel (the “Initial Registration Statement”).
The Initial Registration Statement shall register only Registrable Securities. The Company shall use its reasonable efforts to have the
Initial Registration Statement and any amendment thereto declared effective by the SEC at the earliest possible date.

 

b.   
Rule 424 Prospectus. In addition to the Initial Registration Statement, the Company shall, as required by applicable securities
regulations, from time to time file with the SEC, pursuant to Rule 424 promulgated under the Securities Act, such prospectuses and prospectus
supplements, if any, to be used in connection with sales of the Registrable Securities under each Registration Statement. The Investor
and its counsel shall have a reasonable opportunity to review and comment upon such prospectuses prior to its filing with the SEC, and
the Company shall give due consideration to all such comments. The Investor shall use its reasonable efforts to comment upon any prospectus
within two (2) business days from the date the Investor receives the final pre-filing version of such prospectus.

 

c.    
Sufficient Number of Shares Registered. In the event the number of shares available under the Initial Registration Statement
is insufficient to cover all of the Registrable Securities, the Company shall amend the Initial Registration Statement or file a new
Registration Statement (a “New Registration Statement”), so as to cover all of such Registrable Securities (subject
to the limitations set forth in Section 2(e)) as soon as practicable, but in any event not later than ten (10) business days after
the necessity therefor arises, subject to any limits that may be imposed by the SEC pursuant to Rule 415 under the Securities Act. The
Company shall use its reasonable efforts to cause such amendment and/or New Registration Statement to become effective as soon as practicable
following the filing thereof. In the event that any of the Registrable Securities are not included in the Initial Registration Statement,
or have not been included in any New Registration Statement, and the Company files any other registration statement under the Securities
Act (other than on Form S-4, Form S-8, or with respect to other employee related plans or rights offerings) (an “Other Registration
Statement”), then the Company shall include in such Other Registration Statement first all of such Registrable Securities that
have not been previously Registered, and second any other securities the Company wishes to include in such Other Registration Statement.

 

d.   
Effectiveness. The Investor and its counsel shall have a reasonable opportunity to review and comment upon any Registration
Statement and any amendment or supplement to such Registration Statement and any related prospectus prior to its filing with the SEC,
and the Company shall give due consideration to all reasonable comments. The Investor shall furnish all information reasonably requested
by the Company for inclusion therein. The Company shall use reasonable efforts to keep all Registration Statements effective, including
but not limited to pursuant to Rule 415 promulgated under the Securities Act and available for the resale by the Investor of all of the
Registrable Securities covered thereby at all times until the earlier of (i) the date as of which the Investor may sell all of the Registrable
Securities without restriction pursuant to Rule 144 promulgated under the Securities Act without any restrictions (including any restrictions
under Rule 144(c) or Rule 144(i)), (ii) the date on which the Investor shall have sold all the Registrable Securities covered thereby
and no Put Shares remain issued under the Purchase Agreement, and (iii) the date on which the Purchase Agreement is terminated and the
Registerable Securities issued to the Investor may be sold without restriction pursuant to Rule 144 promulgated under the Securities
Act without restriction (the “Registration Period”). In the event that any Registration Statement filed hereunder
is no longer effective and Rule 144 is available for sales of the Registrable Securities, the Company shall provide an opinion upon request
of the Investor that the Investor may sell any such Registrable Securities held by the Investor pursuant to Rule 144 with all costs related
to such opinion to be borne by the Company. Each Registration Statement (including any amendments or supplements thereto and prospectuses
contained therein) shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein,
or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading.

 

e.    
Offering. If the staff of the SEC (the “Staff”) or the SEC seeks to characterize any offering pursuant
to a Registration Statement filed pursuant to this Agreement as constituting an offering of securities that does not permit such Registration
Statement to become or remain effective and be used for resales by the Investor under Rule 415 at then- prevailing market prices (and
not fixed prices) by comment letter or otherwise, or if after the filing of the Initial Registration Statement with the SEC pursuant
to Section 2(a), the Company is otherwise required by the Staff or the SEC to reduce the number of Registrable Securities included
in such initial Registration Statement, then the Company shall reduce the number of Registrable Securities to be included in such Initial
Registration Statement on a pro rata basis among holders of Registerable Securities until such time as the Staff and the SEC shall so
permit such Registration Statement to become effective and be used as aforesaid. In the event of any reduction in Registrable Securities
pursuant to this paragraph, the Company shall file one or more New Registration Statements in accordance with Section 2(c) until
such time as all Registrable Securities that have actually been issued and are not otherwise eligible for legend removal under Rule 144
of the Securities Act or otherwise have been included in Registration Statements that have been declared effective and the prospectus
contained therein is available for use by the Investor. Notwithstanding any provision herein or in the Purchase Agreement to the contrary,
the Company’s obligations to register Registrable Securities (and any related conditions to the Investor’s obligations) shall
be qualified as necessary to comport with any requirement of the SEC or the Staff as addressed in this Section 2(e).

 

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3.                  
RELATED OBLIGATIONS.

 

With respect
to a Registration Statement and whenever any Registrable Securities are to be Registered pursuant to Section 2, including on any
Other Registration Statement, the Company shall use its reasonable efforts to effect the registration of the Registrable Securities in
accordance with the intended method of disposition thereof and, pursuant thereto, the Company shall have the following obligations:

 

a.    
The Company shall prepare and file with the SEC such amendments (including post-effective amendments on Form S-1) and supplements
to any Registration Statement and any Other Registration Statement and the prospectus used in connection with such Registration Statement
and Other Registration Statement, which prospectus is to be filed pursuant to Rule 424 promulgated under the Securities Act, as may be
necessary to keep the Registration Statement effective at all times during the Registration Period, and, during such period, comply with
the provisions of the Securities Act with respect to the disposition of all Registrable Securities of the Company covered by the Registration
Statement or applicable Other Registration Statement until such time as all of such Registrable Securities shall have been disposed of
in accordance with the intended methods of disposition by the seller or sellers thereof as set forth in such registration statement.

 

b.   
The Company shall permit the Investor to review and comment upon each Registration Statement or any Other Registration Statement
(that includes Registerable Securities issuable to the Investor) and all amendments and supplements thereto at least two (2) business
days prior to their filing with the SEC, and not file any document in a form to which Investor reasonably objects. The Investor shall
use its reasonable efforts to comment upon the Registration Statement or any such Other Registration Statement and any amendments or supplements
thereto within two (2) business days from the date the Investor receives the final version thereof. The Company shall furnish to the Investor,
without charge, and within one (1) Business Day, any comments and/or any other correspondence from the SEC or the Staff to the Company
or its representatives relating to the Registration Statement or such Other Registration Statement. The Company shall respond to the SEC
or the Staff, as applicable, regarding the resolution of any such comments and/or correspondence as promptly as practicable.

 

Upon request of the Investor, the Company
shall furnish to the Investor, (i) promptly after the same is prepared and filed with the SEC, at least one copy of such Registration
Statement and any amendment(s) thereto, including financial statements and schedules, all documents incorporated therein by reference
and all exhibits, (ii) upon the effectiveness of any Registration Statement, a copy of the prospectus included in such Registration Statement
and all amendments and supplements thereto (or such other number of copies as the Investor may reasonably request) and (iii) such other
documents, including copies of any preliminary or final prospectus, as the Investor may reasonably request from time to time in order
to facilitate the disposition of the Registrable Securities owned by the Investor. For the avoidance of doubt, any filing available to
the Investor via the SEC’s live EDGAR system shall be deemed “furnished to the Investor” hereunder.

 

c.    
The Company shall use reasonable efforts to (i) register and qualify the Registrable Securities covered by a Registration Statement
under such other securities or “blue sky” laws of Puerto Rico, New York, Kansas, Florida and such other jurisdictions in
the United States as the Investor reasonably requests, (ii) prepare and file in those jurisdictions, such amendments (including post-effective
amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during
the Registration Period, (iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect
at all times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable
Securities for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a
condition thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this
Section 3(d), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process
in any such jurisdiction. The Company shall promptly notify the Investor who holds Registrable Securities of the receipt by the Company
of any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities for sale
under the securities or “blue sky” laws of any jurisdiction in the United States or its receipt of actual notice of the initiation
or threatening of any proceeding for such purpose.

 

d.   
As promptly as practicable after becoming aware of such event or facts, the Company shall notify the Investor in writing of the
happening of any event or existence of such facts as a result of which the prospectus included in any Registration Statement, as then
in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary
to make the statements therein, in light of the circumstances under which they were made, not misleading, and promptly prepare a supplement
or amendment to such Registration Statement to correct such untrue statement or omission, and deliver a copy of such supplement or amendment
to the Investor (or such other number of copies as the Investor may reasonably request). The Company shall also promptly notify the Investor
in writing (i) when a prospectus or any prospectus supplement or post-effective amendment has been filed, and when a Registration Statement
or any post-effective amendment thereto has become effective (notification of such effectiveness shall be delivered to the Investor by
email or facsimile on the same day of such effectiveness and by overnight mail), (ii) of any request by the SEC for amendments or supplements
to any Registration Statement or related prospectus or related information, and (iii) of the Company’s reasonable determination
that a post-effective amendment to a Registration Statement would be appropriate.

 

 

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e.    
The Company shall use its reasonable efforts to prevent the issuance of any stop order or other suspension of effectiveness of
any registration statement, or the suspension of the qualification of any Registrable Securities for sale in any jurisdiction and, if
such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment and to notify
the Investor of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation or threat of any
proceeding for

such purpose. In addition, if the
Company shall receive any comment letter from the SEC relating to any Registration Statement under which Registrable Securities are Registered,
the Company shall notify the Investor of the issuance of such order and use its reasonable efforts to address such comments in a manner
satisfactory to the SEC.

 

f.    
The Company shall (i) cause all the Registrable Securities to be listed on each securities exchange on which securities of the
same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted under
the rules of such exchange, or (ii) secure designation and quotation of all the Registrable Securities on the Principal Market. The Company
shall pay all fees and expenses in connection with satisfying its obligation under this Section.

 

g.   
The Company shall cooperate with the Investor to facilitate the timely preparation and delivery of DWAC Shares representing the
Registrable Securities to be offered pursuant to any Registration Statement. “DWAC Shares” means shares of Common Stock
that are (i) issued in electronic form, (ii) freely tradable and transferable and without restriction on resale and (iii) timely credited
by the Company to the Investor’s or its designee’s specified DWAC account with The Depository Trust Company (“DTC”)
under the DTC/FAST Program, or any similar program hereafter adopted by DTC performing substantially the same function.

 

h.   
The Company shall at all times maintain the services of its Transfer Agent and registrar with respect to its Common Stock.

 

i.    
If reasonably requested by the Investor, the Company shall (i) immediately incorporate in a prospectus supplement or post-effective
amendment such information as the Investor believes should be included therein relating to the sale and distribution of Registrable Securities,
including, without limitation, information with respect to the number of Registrable Securities being sold, the purchase price being
paid therefor and any other terms of the offering of the Registrable Securities; (ii) make all required filings of such prospectus supplement
or post-effective amendment as soon as practicable upon notification of the matters to be incorporated in such prospectus supplement
or post-effective amendment; and (iii) supplement or make amendments to any Registration Statement.

 

j.    
The Company shall use its reasonable efforts to cause the Registrable Securities covered by any Registration Statement to be registered
with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such Registrable
Securities.

 

k.   
Within one (1) Business Day after any Registration Statement which includes Registrable Securities is ordered effective by the
SEC, or any prospectus supplement or post-effective amendment including Registrable Securities is filed with the SEC, the Company shall
deliver, and shall cause legal counsel for the Company to deliver, to the Transfer Agent for such Registrable Securities (with copies
to the Investor) confirmation that such Registration Statement has been declared effective by the SEC in the form attached hereto as Exhibit
A. Thereafter, if requested by the Investor at any time, the Company shall require its counsel to deliver to the Investor a written
confirmation whether or not (i) the effectiveness of such Registration Statement has lapsed at any time for any reason (including, without
limitation, the

issuance of a stop order) (ii) any
comment letter has been issued by the SEC and (iii) whether or not the Registration Statement is current and available to the Investor
for sale of all of the Registrable Securities.

 

l.    
The Company shall take all other reasonable actions necessary to expedite and facilitate disposition by the Investor of Registrable
Securities pursuant to any Registration Statement.

 

4.                  
OBLIGATIONS OF THE INVESTOR.

 

a.    
The Company shall notify the Investor in writing of the information the Company reasonably requires from the Investor in connection
with any Registration Statement hereunder. The Investor shall furnish to the Company such information regarding itself, the Registrable
Securities held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required
to effect the registration of such Registrable Securities and shall execute such documents in connection with such registration as the
Company may reasonably request. Notwithstanding the foregoing, the Registration Statement shall contain the “Selling Stockholder”
and “Plan of Distribution” sections, each in substantially the form provided to the Company by the Investor.

 

b.   
The Investor agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and
filing of any Registration Statement hereunder.

  

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c.    
The Investor agrees that, upon receipt of any notice from the Company of the happening of any event or existence of facts of the
kind described in Section 3(f) or the first sentence of Section 3(e), the Investor will immediately discontinue disposition
of Registrable Securities pursuant to any Registration Statement(s) covering such Registrable Securities until withdrawal of a stop order
contemplated by Section 3(f) or the Investor’s receipt of the copies of the supplemented or amended prospectus contemplated
by Section 3(e). Notwithstanding anything to the contrary, the Company shall cause its Transfer Agent to promptly issue DWAC Shares
in accordance with the terms of the Purchase Agreement in connection with any sale of Registrable Securities with respect to which an
Investor has entered into a contract for sale prior to the Investor’s receipt of a notice from the Company of the happening of any
event of the kind described in Section 3(f) or the first sentence of Section 3(e) and for which the Investor has not yet
settled.

 

5.                  
EXPENSES OF REGISTRATION.

 

All reasonable
expenses, other than sales or brokerage commissions, incurred in connection with registrations, filings or qualifications pursuant to
Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting
fees, and fees and disbursements of counsel for the Company, shall be paid by the Company.

 

6.                  
INDEMNIFICATION.

 

a.    
To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend the Investor, each
Person, if any, who controls or is under common control with the Investor, the members, the directors, officers, partners, employees,
agents, representatives of the Investor and each Person, if any, who is an “affiliate” of the Investor within the meaning
of the Securities Act or the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (each, an “Indemnified
Person”), against any losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, attorneys’ fees,
amounts paid in settlement or expenses, joint or several, (collectively, “Claims”) incurred in investigating, preparing
or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or
governmental, administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an Indemnified
Person is or may be a party thereto (“Indemnified Damages”), to which any of them may become subject insofar as such
Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue
statement or alleged untrue statement of a material fact in a Registration Statement, any Other Registration Statement or any post-effective
amendment thereto or in any filing made in connection with the qualification of the offering under the securities or other “blue
sky” laws of any jurisdiction in which Registrable Securities are offered (“Blue Sky Filing”), or the omission
or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading,
(ii) any untrue statement or alleged untrue statement of a material fact contained in the final prospectus (as amended or supplemented,
if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any
material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein were made,
not misleading, (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any other law, including,
without limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities
pursuant to a Registration Statement or any Other Registration Statement or (iv) any material violation by the Company of this Agreement
(the matters in the foregoing clauses (i) through (iv) being, collectively, “Violations”). The Company shall reimburse
each Indemnified Person promptly as such expenses are incurred and are due and payable, for any reasonable legal fees or other reasonable
expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary contained
herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to a Claim by an Indemnified Person
arising out of or based upon a Violation which occurs in reliance upon and in conformity with information about the Investor furnished
in writing to the Company by such Indemnified Person expressly for use in connection with the preparation of a Registration Statement,
any Other Registration Statement or any such amendment thereof or supplement thereto, if such prospectus was timely made available by
the Company pursuant to Section 3(c) or Section 3(e); (ii) with respect to any superseded prospectus, shall not inure to
the benefit of any such person from whom the person asserting any such Claim purchased the Registrable Securities that are the subject
thereof (or to the benefit of any person controlling such person) if the untrue statement or omission of material fact contained in the
superseded prospectus was corrected in the revised prospectus, as then amended or supplemented, if such revised prospectus was timely
made available by the Company pursuant to Section 3(c) or Section 3(e), and the Indemnified Person was promptly advised
in writing not to use the incorrect prospectus prior to the use giving rise to a violation and such Indemnified Person, notwithstanding
such advice, used it; (iii) shall not be available to the extent such Claim is based on a failure of the Investor to deliver or to cause
to be delivered the prospectus made available by the Company, if such prospectus was timely made available by the Company pursuant to
Section 3(c) or Section 3(e); and (iv) shall not apply to amounts paid in settlement of any Claim if such settlement is
effected without the prior written consent of the Company, which consent shall not be unreasonably withheld. Such indemnity shall remain
in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer
of the Registrable Securities by the Investor pursuant to Section 9.

 

 

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b.   
Promptly after receipt by an Indemnified Person under this Section 6 of notice of the commencement of any action or proceeding
(including any governmental action or proceeding) involving a Claim, such Indemnified Person shall, if a Claim in respect thereof is to
be made against the Company under this Section 6, deliver to the Company a written notice of the commencement thereof, and the
Company shall have the right to participate in, and, to the extent the Company so desires, to assume control of the defense thereof with
counsel mutually satisfactory to the Company and to the Indemnified Person; provided, however, that an Indemnified Person shall have the
right to retain its own counsel with the fees and expenses to be paid by the Company, if, in the reasonable opinion of counsel retained
by the Company, the representation by such counsel of the Indemnified Person and the Company would be inappropriate due to actual or potential
differing interests between such Indemnified Person and any other party represented by such counsel in such proceeding. The Indemnified
Person shall cooperate fully with the Company in connection with any negotiation or defense of any such action or Claim by the Company
and shall furnish to the Company all information reasonably available to the Indemnified Person which relates to such action or Claim.
The indemnifying party shall keep the Indemnified Person fully apprised at all times as to the status of the defense or any settlement
negotiations with respect thereto. The Company shall not be liable for any settlement of any action, Claim or proceeding effectuated without
its written consent, provided, however, that the Company shall not unreasonably withhold, delay or condition its consent. The Company
shall not, without the consent of the Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise
which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Person of a release
from all liability in respect to such Claim or litigation. Following indemnification as provided for hereunder, the Company shall be subrogated
to all rights of the Indemnified Person with respect to all third parties, firms or corporations relating to the matter for which indemnification
has been made. The failure to deliver written notice to the Company within a reasonable time of the commencement of any such action shall
not relieve the Company of any liability to the Indemnified Person under this Section 6, except to the extent that the Company
is prejudiced in its ability to defend such action.

 

c.    
The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course
of the investigation or defense, as and when bills are received or Indemnified Damages are incurred.

 

d.   
The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Person
against the Company or others, and (ii) any liabilities the Company may be subject to pursuant to the law.

 

7.                  
CONTRIBUTION.

 

To the extent
any indemnification by the Company is prohibited or limited by law, the Company agrees to make the maximum contribution with respect to
any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however, that:
(i) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities
Act) shall be entitled to contribution from any seller of Registrable Securities who was not guilty of fraudulent misrepresentation; and
(ii) contribution by any seller of Registrable Securities shall be limited to the amount of proceeds received from the Registerable Securities.

 

8.                  
REPORTS AND DISCLOSURE UNDER THE SECURITIES ACTS.

 

With a view to
making available to the Investor the benefits of Rule 144 promulgated under the Securities Act or any other similar rule or regulation
of the SEC that may at any time permit the Investor to sell securities of the Company to the public without registration (“Rule
144”), the Company agrees, at the Company’s sole expense, to:

 

a.    
make and keep “current public information” available, as such term is understood and defined in Rule 144;

 

b.   
file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange
Act;

 

c.    
furnish to the Investor so long as the Investor owns Registrable Securities, promptly upon request, (i) a written statement by
the Company that it has complied with the reporting and or disclosure provisions of Rule 144, the Securities Act and the Exchange Act,
(ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company,
and (iii) such other information as may be reasonably requested to permit the Investor to sell such securities pursuant to Rule 144 without
registration; and

 

 

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d.   
take such additional action as is requested by the Investor to enable the Investor to sell the Registrable Securities pursuant
to Rule 144, including, without limitation, delivering all such legal opinions, consents, certificates, resolutions and instructions to
the Company’s Transfer Agent as may be requested from time to time by the Investor at the Company’s expense and otherwise
fully cooperate with Investor and Investor’s broker to effect such sale of securities pursuant to Rule 144.

 

The Company agrees
that damages may be an inadequate remedy for any breach of the terms and provisions of this Section 8 and that Investor shall,
whether or not it is pursuing any remedies at law, be entitled to equitable relief in the form of a preliminary or permanent injunctions,
without having to post any bond or other security, upon any breach or threatened breach of any such terms or provisions.

 

9.                  
ASSIGNMENT OF REGISTRATION RIGHTS.

 

The Company shall
not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Buyer, or any Investor as assignee
pursuant to

this Section 9. The Buyer, or any Investor, may
not assign its rights under this Agreement without the written consent of the Company other than to an affiliate of such Investor.

 

10.              
AMENDMENT OF REGISTRATION RIGHTS.

 

No provision of
this Agreement may be (i) amended other than by a written instrument signed by both parties hereto or (ii) waived other than in a written
instrument signed by the party against whom enforcement of such waiver is sought. Failure of any party to exercise any right or remedy
under this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall not operate as a waiver thereof.

 

11.              
MISCELLANEOUS.

 

a.    
A Person is deemed to be a holder of Registrable Securities whenever such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the same Registrable
Securities, the Company shall act upon the basis of instructions, notice or election received from the registered owner of such Registrable
Securities.

 

b.   
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by
email (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii)
one (1) Business Day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party
to receive the same. The addresses for such communications shall be:

 

If to the Company:

 

Luduson G Inc.

17/F, 80 Goucester Road

Wanchai, Hong Kong

Email: wallis@luduson.com

Attention: Ka Leung Wong, CEO

 

If to the Investor:

 

Williamsburg Venture Holdings, LLC

395 Leonard St, Suite 719

Brooklyn, NY 11211

E-mail: rg@williamsburg.ventures

Attention: Ronald Glenn, Managing Member

Phone: 347.263.3216 

 

 

    	 	7	 

     

    

 

or at such other address and/or email
address and/or to the attention of such other person as the recipient party has specified by written notice given to each other party
three (3) business days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such
notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s email account containing
the time, date, recipient email address, as applicable, and an image of the first page of such transmission or (C) provided by a nationally
recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by email or receipt from a nationally
recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

c.    
All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the
internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of
New York.

 

d.    
Any disputes, claims, or controversies hereunder or in connection herewith or with any transaction contemplated hereby or discussed
herein shall be referred to and resolved solely and exclusively by binding arbitration to be conducted before the Judicial Arbitration
and Mediation Service (“JAMS”), or its successor pursuant the expedited procedures set forth in the JAMS Comprehensive
Arbitration Rules and Procedures (the “Rules”), including Rules 16.1 and 16.2 of those Rules. The arbitration shall
be held in New York, New York, before a tribunal consisting of three (3) arbitrators each of whom will be selected in accordance with
the "strike and rank" methodology set forth in Rule 15. Either party to this Agreement may, without waiving any remedy under
this Agreement, seek from any federal or state court sitting in the State of New York any interim or provisional relief that is necessary
to protect the rights or property of that party, pending the establishment of the arbitral tribunal. The costs and expenses of such arbitration
shall be paid by and be the sole responsibility of the Company, including but not limited to the Holder’s attorneys’ fees
and each arbitrator’s fees. The arbitrators' decision must set forth a reasoned basis for any award of damages or finding of liability.
The arbitrators' decision and award will be made and delivered as soon as reasonably possibly and in any case within sixty (60) days'
following the conclusion of the arbitration hearing and shall be final and binding on the parties and may be entered by any court having
jurisdiction thereof.

 

e.    
If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall
not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of
any provision of this Agreement in any other jurisdiction.

 

f.    
EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST,
A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY
TRANSACTION CONTEMPLATED HEREBY.

 

g.   
This Agreement and the Purchase Agreement constitute the entire agreement among the parties hereto with respect to the subject
matter hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to
herein and therein. This Agreement and the Purchase Agreement supersede all prior agreements and understandings among the parties hereto
with respect to the subject matter hereof and thereof.

 

h.   
Subject to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the successors
and permitted assigns of each of the parties hereto.

 

i.    
The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

j.    
This Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute
one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission
or by e-mail in a “.pdf” format data file of a copy of this Agreement bearing the signature of the party so delivering this
Agreement.

 

k.   
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.

 

l.    
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.

 

m.   
This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns, and is
not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

* * * * * *

 

    	 	8	 

     

    

 

IN WITNESS WHEREOF, the parties
have caused this Agreement to be duly executed as of the Execution Date.

 

THE COMPANY:

 

Luduson G Inc.

 

By: ____________________________

Name: Ka Leung Wong

Title: Chief Executive Officer

 

 

BUYER:

 

Williamsburg Venture Holdings, LLC

 

By: ____________________________

Name: Ronald Glenn

Title: Managing Member

 

 

 

 

 

    	 	 	 

     

    

 

EXHIBIT A

 

TO REGISTRATION RIGHTS AGREEMENT

 

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

 

 

______ , 2021

 

Globex Transfer, LLC

780 Deltona Blvd. Suite 202

Deltona, FL 32725

 

Re: EFFECTIVENESS OF REGISTRATION STATEMENT

 

Ladies and Gentlemen:

 

We are counsel
to Luduson G., a Deleware corporation (the “Company”), and have represented the Company in connection with that
certain Equity Purchase Agreement, dated as of August ___, 2021 (the “Purchase Agreement”), entered into by and between
the Company and Williamsburg Venture Holdings, LLC (the “Buyer”) pursuant to which the Company has agreed to issue
to the Buyer shares of the Company’s Common Stock, $0.0001 par value (the “Common Stock”), in an amount up to
Thirty Million Dollars ($30,000,000.00) (the “Put Shares”), in accordance with the terms of the Purchase Agreement.
In connection with the transactions contemplated by the Purchase Agreement, the Company has registered with the U.S. Securities &
Exchange Commission the following shares of Common Stock:

 

	(1)		Put Shares to be issued to the Buyer upon purchase from the Company by the Buyer from time
to time in accordance with the Purchase Agreement; and

 

	(2)		50,000 Commitment Shares which were issued to the Buyer pursuant
to the Purchase Agreement.

 

Pursuant to the
Purchase Agreement, the Company also has entered into a Registration Rights Agreement, of even date with the Purchase Agreement with the
Buyer (the “Registration Rights Agreement”) pursuant to which the Company agreed, among other things, to register the
Put Shares and the Commitment Shares under the Securities Act of 1933, as amended (the “Securities Act”). In connection
with the Company’s obligations under the Purchase Agreement and the Registration Rights Agreement, on August __, 2021, the Company
filed a Registration Statement (File No. 333-[ ]) (the “Registration Statement”) with the Securities and
Exchange Commission (the “SEC”) relating to the resale of the Put Shares and the Commitment Shares.

 

In connection
with the foregoing, we advise you that a member of the SEC’s staff has advised us by telephone that the SEC has entered an order
declaring the Registration Statement effective under the Securities Act at [ ] [A.M./P.M.] on [ ], 2020 and we have no
knowledge, after telephonic inquiry of a member of the SEC’s staff, that any stop order suspending its effectiveness has been issued
or that any proceedings for that purpose are pending before, or threatened by, the SEC and the Put Shares are available for resale under
the Securities Act pursuant to the Registration Statement and may be issued without any restrictive legend.

 

Very truly yours,

[Company Counsel]

 

 

By: ________________________________

 

 

cc:Williamsburg Venture Holdings, LLCpebk_ex10a.htm

EXHIBIT (10)(a) 
  
 EMPLOYMENT AGREEMENT
  
 THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered as of the 19th day of August, 2021, by and among Peoples Bancorp of North Carolina, Inc., a North Carolina corporation (“Bancorp”), Peoples Bank, a North Carolina chartered commercial bank (the “Bank”) (Bancorp and the Bank are collectively referred to as the “Employer”), and Jeffrey N. Hooper (“Employee”).
  
 BACKGROUND
  
 WHEREAS, the expertise and experience of Employee and Employee’s relationships and reputation in the financial institutions industry are extremely valuable to the Employer; and
  
 WHEREAS, it is in the best interests of the Employer to maintain an experienced and sound management team to manage the Employer and to further the Employer’s overall strategies to protect and enhance the value of its shareholders’ investments; and
  
 WHEREAS, the Employer and Employee desire to enter into this Agreement to establish the scope, terms and conditions of Employee’s employment by the Employer.
  
 NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
  
 1. Effective Date. The effective time and date of this Agreement shall be deemed to be 12:00:01 o’clock, a.m., Eastern Time, on the date first set forth above (the “Effective Date”).
  
 2. Employment. Employee is employed as the Executive Vice President-Chief Financial Officer of the Bank. Employee’s responsibilities, duties, prerogatives and authority in such offices, and the clerical, administrative and other support staff and office facilities provided to Employee, shall be those customary for persons holding such offices of institutions that are a part of the financial institutions industry. 
  
 3. Employment Period. Unless earlier terminated in accordance with Sections 6 or 8 of this Agreement, Employee’s employment shall be for an initial term of 36 months beginning as of the Effective Date. On the first anniversary of the Effective Date and on each anniversary thereafter (the “Renewal Date”), this Agreement shall be extended automatically for one additional year unless the Board of Directors of Bancorp (the “Bancorp Board”) or the Employee determines, and prior to the Renewal Date sends to the other party written notice, that the term shall not be extended. If the Bancorp Board decides not to extend the term, this Agreement shall nevertheless remain in force until its existing term expires. The Bancorp Board’s decision not to extend the term shall not – by itself – give Employee any rights to claim an adverse change in position, compensation, or circumstances or otherwise to claim entitlement to severance benefits under this Agreement. References herein to the term of this Agreement or to the “Employment Period” shall refer to the initial term, as the same may be extended. For purposes of this Agreement, “Terminate” (and variations and derivatives thereof) shall mean, when used in connection with a cessation of employment, that Employee has incurred a separation from service as defined in Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and guidance and regulations issued thereunder (“Section 409A”). 
  
 4. Duties. During the Employment Period, and excluding any periods of vacation, sick or other leave to which Employee is entitled under this Agreement, Employee agrees to devote reasonable attention and time to the business and affairs of the Employer commensurate with Employee’s offices, and, to the extent necessary to discharge the responsibilities assigned to Employee hereunder, to use Employee’s reasonable best efforts to perform faithfully Employee’s responsibilities and duties under this Agreement. 
  
 5. Compensation and Benefits.
  
 (a) Base Salary. During the Employment Period, the Employer will pay to Employee a base salary at the rate of at least $189,625 per year (“Base Salary”), less normal withholdings, payable in equal monthly or more frequent installments as are customary under the Bank’s payroll practices from time to time. In accordance with the policies and procedures of the Board of Directors of the Bank (the “Bank Board”), the Employer shall review Employee’s total compensation at least annually and in its sole discretion may adjust Employee’s total compensation from year to year, but during the Employment Period the Employer may not decrease Employee’s Base Salary below $189,625; provided further, however, that periodic increases in Base Salary, once granted, shall not be subject to revocation. The annual review of Employee’s total compensation will consider, among other things, changes in the cost of living, Employee’s own performance and Bancorp’s consolidated performance.
  
 	 
	1
	

	 

  
 (b) Incentive Plans. During the Employment Period, Employee shall be entitled (i) to participate in all of the management incentive plans of the Employer, and any successor or substitute plans; (ii) to participate in long-term incentive plans of the Employer, and any successor or substitute plans; and, (iii) to participate in all stock ownership, stock option, stock grant and similar plans of the Employer, and any successor or substitute plans (collectively, the “Incentive Plans”), in each case provided that senior management is eligible to participate therein. 
  
 (c) Savings and Retirement Plans. During the Employment Period, Employee shall be entitled to participate in all savings, pension and retirement plans (including supplemental retirement plans), practices, policies and programs applicable generally to senior employees of the Employer (the “Benefit Plans”). 
  
 (d) Welfare Benefit Plans. During the Employment Period, Employee and/or Employee’s family, as the case may be, shall also be eligible for participation in and shall receive all benefits under all welfare benefit plans, practices, policies and programs provided by the Employer (including, without limitation, medical, hospitalization, prescription, dental, disability, employee life, group life, accidental death and dismemberment, and travel accident insurance plans and programs) (“Welfare Benefit Plans”), in each case provided that senior management is eligible to participate therein. 
  
 (e) Expenses. During the Employment Period, Employee shall be entitled to receive prompt reimbursement for all reasonable expenses incurred by Employee in connection with his services on behalf of the Employer in accordance with the policies, practices and procedures of the Employer to the extent applicable generally to other senior employees of the Employer. 
  
 (f) Fringe and Similar Benefits. During the Employment Period, Employee shall be entitled to fringe benefits in accordance with the plans, practices, programs and policies of the Employer in effect for its senior employees.
  
 (g) Vacation, Sick and Other Leave. During the Employment Period, Employee shall be entitled annually to a minimum of 20 business days of paid vacation and shall be entitled to those number of business days of paid disability, sick and other leave specified in the employment policies of the Employer. 
  
 6. Termination of Employment During the Employment Period (Other Than In Connection With A Change Of Control).
  
 (a) Death or Disability. Employee’s employment with the Employer shall terminate automatically upon Employee’s death during the Employment Period. If the Employer determines in good faith that the Disability of Employee has occurred during the Employment Period (pursuant to the definition of Disability set forth below), it may give to Employee written notice in accordance with Sections 6(e) and 15 (i) of this Agreement of its intention to Terminate Employee’s employment. In such event, Employee’s employment with the Employer shall Terminate effective on the 60th day after receipt of such written notice by Employee (the “Disability Effective Date”), provided that, within the 30 days after such receipt, Employee shall not have returned to full-time performance of Employee’s duties. For purposes of this Agreement, “Disability” shall mean that the Employee suffers from a physical or mental disability or infirmity that qualifies him for disability benefits under any accident, health or disability plan maintained by the Employer that provides income replacement benefits due to disability or, if the Employer does not maintain such a plan, the Employee’s inability to perform the essential functions of the Employee’s job for a period of ninety (90) or more days as a result of physical or mental disability or infirmity which is determined to be total and permanent, as reasonably determined by the Employer based upon the opinion of a physician, subject to (i) the Employer’s obligations, and Employee’s rights, under (A) the Americans With Disabilities Act, 42 U.S. C. §§ 1210 et seq., and (B) the Family and Medical Leave Act, 29 U. S.C. §§ 2601 et seq. (and the regulations promulgated under the foregoing Acts).
  
 (b) Cause. The Employer may Terminate Employee’s employment with the Employer for Cause during the Employment Period. For purposes of this Agreement, “Cause” shall mean:
  
 	  
	 (i)
	 the willful and continued failure of Employee to substantially perform Employee’s duties with the Employer, other than any such failure resulting from Disability, after a written demand for substantial performance is delivered to Employee by the Bancorp Board which specifically identifies the manner in which the Bancorp Board believes that Employee has not substantially performed Employee’s duties;

	  
	  
	  

	  
	 (ii)
	 the willful engaging by Employee in illegal conduct, personal dishonesty or gross misconduct which is materially and demonstrably injurious to the Employer;

	  
	  
	  

	  
	 (iii)
	 continued insubordination with respect to directives of the Bancorp Bank or Bank Board after receipt of a written warning from the Bancorp Board with respect thereto; or

	  
	  
	  

	  
	 (iv)
	 a willful act by Employee which constitutes a material breach of Employee’s fiduciary duty to the Employer involving personal profit.

  
 Any act, or failure to act, based upon authority given pursuant to resolutions duly adopted by the Bancorp Board or Bank Board or based upon the advice of counsel for the Employer shall be conclusively presumed to be done, or omitted to be done, by Employee in good faith and in the best interests of the Employer and to not constitute insubordination.
  
 	 
	2
	

	 

  
 (c) Termination by Employee. Employee may Terminate Employee’s employment with the Employer during the Employment Period for Good Reason. For purposes of this Agreement, “Good Reason” shall mean: (i) a material diminution in Employee’s authority, duties, or responsibilities; (ii) a material change in the geographic location at which Employee must perform the services to be performed by Employee pursuant to this Agreement; and (iii) any other action or inaction that constitutes a material breach by the Employer of this Agreement. Employee must provide notice to the Employer of the condition Employee contends is Good Reason within 30 days of the initial existence of the condition, and the Employer must have a period of 30 days to remedy the condition. If the condition is not remedied, Employee must provide a Notice of Termination as set forth in Sections 6(e) and 15(i) of this Agreement within 30 days of the end of the Employer’s remedy period. Employee may also terminate Employee’s employment hereunder without Good Reason upon delivery of a Notice of Termination to Employee at least 60 days prior to Date of Termination (defined below). 
  
 (d) Without Cause. The Employer may Terminate Employee’s employment during the Employment Period without Cause (“Termination Without Cause”).
  
 (e) Notice of Termination. Any Termination (other than for death) shall be communicated by a Notice of Termination given in accordance with Section 15(i) of this Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Employee’s employment under the provision so indicated, and (iii) if the Date of Termination (as defined below) is other than the date of receipt of such notice, specifies the Date of Termination (which date shall be not more than 30 days after the giving of such Notice of Termination, except as otherwise provided in this Section 6). The failure to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Disability, Cause, or Good Reason shall not waive any right of Employee or the Employer hereunder or preclude Employee or the Employer from asserting such fact or circumstance in enforcing Employee’s or the Employer’s rights hereunder.
  
 (f) Date of Termination. “Date of Termination” means (i) if Employee’s employment is Terminated by the Employer for Cause or Terminated Without Cause, the date of receipt of the Notice of Termination or any later date specified therein, as the case may be, (ii) if Employee’s employment is Terminated by Employee for Good Reason, the date of receipt of the Notice of Termination, (iii) if Employee’s employment is Terminated by reason of death or Disability, the date of death of Employee or the Disability Effective Date, as the case may be, and (iv) if Employee’s employment is terminated by Employee without Good Reason, the date specified in the Notice of Termination, which shall be at least 60 days after the Employer’s receipt of the Notice of Termination.
  
 7. Obligations of Employer Upon Termination.
  
 (a) Termination Without Cause or for Good Reason. If, during the Employment Period, the Employer shall Terminate Employee’s employment Without Cause or Employee shall Terminate Employee’s employment for Good Reason, then in consideration of Employee’s services rendered prior to such Termination;
  
 	  
	 (i)
	 the Employer shall pay to Employee a lump sum in cash on the 30th day after the Date of Termination equal to the aggregate of the following amounts:

  
 	  
	 A.
	 the sum of (1) Employee’s Base Salary through the Date of Termination to the extent not previously paid, and (2) any accrued vacation, sick and other leave pay, in each case to the extent not previously paid (the sum of the amounts described in clauses (1) and (2) shall be hereinafter referred to as the “Accrued Obligations”); and

	  
	  
	  

	  
	 B.
	 the amount equal to the product of (1) the number of days that would have remained in the Employment Period from and after the Date of Termination had the Termination not occurred (the “Remaining Employment Period”), and (2) Employee’s Base Salary divided by 365; and

	  
	  
	  

	  
	 C.
	 the product of (1) Employee’s aggregate cash bonus for the last completed fiscal year, and (2) a fraction, the numerator of which is the number of days in the current fiscal year through the Date of Termination and the denominator of which is 365; and

    
 	  
	 (ii)
	 for the Remaining Employment Period, or such longer period as may be provided by the terms of the appropriate plan, program, practice or policy, to the fullest extent permitted by the terms of the relevant Welfare Benefit Plan, the Employer shall continue to provide benefits to Employee and/or Employee’s dependents in accordance with the Welfare Benefit Plans; provided, however, that if Employee becomes employed with another employer and is eligible to receive substantially the same benefits under any of the welfare benefit plans of the successor employer as Employee would receive under any of the Welfare Benefit Plans under this item (ii), the benefits provided under this item (ii) shall be secondary to those provided under such successor employer’s plans during such applicable period of eligibility. If the terms of the Welfare Benefit Plan providing health insurance benefits to Employee do not allow Employee to continue to receive for the Remaining Employment Period the coverage provided on the Date of Termination to the Employee and his dependents, then after such coverage terminates and for the Remaining Employment Period or the applicable benefit period under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), whichever is shorter, provided the Employee timely and properly elects coverage under COBRA, Employer shall pay for the continuation of the health insurance coverage in existence for Employee and his dependents on the Date of Termination. If the terms of the applicable Welfare Benefit Plan do not permit the Employee to receive continued coverage under any life or disability insurance policy for the Remaining Employment Period, then prior to the date coverage would lapse, to the extent permitted by any such policy, Employer shall assign any such policy to Employee or allow him to convert the policy to an individual policy and allow Employee to assume the payment responsibilities therefor. For purposes of determining eligibility and years-of-service credit (but not the time of commencement of benefits) of Employee for retiree benefits pursuant to such Welfare Benefit Plans, to the extent permitted by the terms of the Welfare Benefit Plans, Employee shall be considered to have remained employed throughout the Remaining Employment Period and to have retired on the last day of such period; and

  
 	 
	3
	

	 

  
 	  
	 (iii)
	 to the extent not previously paid or provided, the Employer shall timely pay or provide to Employee any other amounts or benefits required to be paid or provided herein or which Employee is eligible to receive under any Welfare Benefit Plan.

  
 (b) Death. If Employee’s employment is Terminated by reason of Employee’s death during the Employment Period, this Agreement shall terminate without further obligations to Employee’s legal representatives under this Agreement, except that: (i) Accrued Obligations shall timely be paid as provided below; and (ii) Other Benefits shall be timely paid or provided as described below. Accrued Obligations shall be paid to Employee’s estate or beneficiary, as applicable, in a lump sum in cash on the 30th day after the Date of Termination. With respect to the provision of Other Benefits, the term “Other Benefits” as used in this Section 7(b) shall mean, and Employee’s estate and/or beneficiaries shall be entitled to receive, all death benefits under the Employer’s Welfare Benefit Plans. 
  
 (c) Disability. If Employee’s employment is Terminated by reason of Employee’s Disability during the Employment Period, this Agreement shall terminate without further obligations to Employee, except that: (i) Accrued Obligations shall be timely paid as provided below; and (ii) Other Benefits shall be timely paid or provided as described below. Accrued Obligations shall be paid to Employee in a lump sum in cash on the 30th day after the Date of Termination. With respect to the provision of Other Benefits, the term Other Benefits as used in this Section 7(c) shall include, without limitation, and Employee shall be entitled after the Date of Termination to receive, (1) all disability benefits under all Welfare Benefit Plans relating to disability, in accordance with the terms of the Welfare Benefit Plans, and (2) for the remainder of the Remaining Employment Period all other benefits available to Employee under all Welfare Benefit Plans.
  
 (d) Cause. If Employee’s employment shall be Terminated for Cause or if Employee terminates his employment without Good Reason during the Employment Period, this Agreement shall terminate without further obligations to Employee, except that (i) the Accrued Obligations shall be paid in a lump sum in cash on the 30th day after the Date of Termination, and (ii) benefits under Welfare Benefit Plans shall be paid or provided in a timely manner, in each case to the extent theretofore unpaid; provided, however, that Employee’s right to continue to participate in Welfare Benefit Plans shall terminate on the 30th day following the Date of Termination, or such earlier termination date as is required under the terms of the relevant Welfare Benefit Plan, subject to Employee’s rights under COBRA.
  
 8. Termination In Connection With a Change of Control.
  
 (a) Change of Control Termination. In the event that, at the time of or within one (1) year after a Change of Control, and during the Employment Period, Employee’s employment is Terminated Without Cause by the Employer or Employee Terminates Employee’s employment for Good Reason (each a “Change of Control Termination”), Employee shall be entitled to receive the payments and benefits specified in this Section 8. The date on which the Employer or Employee receives notice in accordance with Section 15(i) of a Change of Control Termination shall be deemed the “Change of Control Termination Date”.
  
 (b) Definition of Change of Control. For purposes of this Agreement, “Change of Control” shall mean (i) a Change in Effective Control; (ii) a Change of Asset Ownership; or (iii) a Change of Ownership; in each case, as defined herein and as further defined and interpreted in Section 409A.
  
 (i) For purposes of this Section 8, “Change in Effective Control” shall mean the date either (A) one Person or Group (each as defined in or pursuant to Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) acquires (or has acquired during the preceding twelve (12) months) ownership of stock of Bancorp possessing 30% or more of the total voting power of Bancorp’s outstanding stock or (B) a majority of the members of the Bancorp Board is replaced during any twelve (12) month period by directors whose election is not endorsed by a majority of the members of the Bancorp Board prior to such election.
  
 (ii) For purposes of this Section 8, “Change of Asset Ownership” shall mean the date one Person or Group acquires (or has acquired during the preceding twelve (12) months) assets (which shall include outstanding stock of the Bank) from Bancorp that have a total gross fair market value that is equal to or exceeds 40% of the total gross fair market value of all Bancorp’s assets immediately prior to such acquisition. 
  
 (iii) For purposes of this Section 8, “Change of Ownership” shall mean the date one Person or Group acquires ownership of stock of Bancorp that, together with stock previously held, constitutes more than 50% of the total fair market value or total voting power of the stock of Bancorp; provided that such Person or Group did not previously own 50% or more of the value or voting power of the outstanding stock of Bancorp. 
  
 	 
	4
	

	 

  
 (iv) For purposes of determining whether Bancorp has undergone a Change of Control under this Section 8, the term Bancorp shall include any corporation that is a majority shareholder of Bancorp within the meaning of Section 409A (owning more than 50% of the total fair market value and total voting power of Bancorp).
  
 Notwithstanding the foregoing, a Change of Control shall not include any transaction as to which Employee agrees shall not constitute a Change of Control hereunder in a writing specifically noting this provision of this Agreement.
  
 (c) Other Payments and Benefits. In the event the employment of the Employee terminates after the occurrence of a Change of Control, Employee shall continue to be entitled to receive the payments and benefits provided subsequent to the applicable event of Termination pursuant to Section 7.
  
 (d) Change of Control Payments and Benefits. In addition to the payments and benefits described in Section 7(a), upon a Change Of Control Termination:
  
 	  
	 (i)
	 The Employer shall pay to Employee in a lump sum in cash on the 30th day after the date of the Change of Control Termination Date any positive difference between:

  
 	  
	 (A)
	 an amount equal to 2.99 times the total of Employee’s “base amount” for the “base period” as defined in Section 280G of the Code; and

	  
	  
	  

	  
	 (B)
	 the amount paid to Employee pursuant to Section 7(a)(i)(B);

  
 	  
	 (ii)
	 All restricted stock or restricted stock unit awards previously granted to Employee and which have not already become vested and released from restrictions on transfer and repurchase and forfeiture rights, either as a result of the Change of Control or otherwise, shall immediately vest and be released from such restrictions as of the Change of Control Termination Date;

	  
	  
	  

	  
	 (iii)
	 All options previously granted to Employee and which have not already become vested and released from restrictions on transfer (other than transfer restrictions applicable to incentive stock options) and repurchase and forfeiture rights, either as a result of the Change of Control or otherwise, shall immediately vest and be released from such restrictions as of the Change of Control Termination Date and all previously granted options that are vested, but unexercised, on the Change of Control Termination Date shall remain exercisable, in each case for the period during which they would have been exercisable absent the Termination of Employee’s employment, except as otherwise specifically provided by the Code; and

	  
	  
	  

	  
	 (iv)
	 Employee’s benefits under all Benefit Plans that are non-qualified plans shall be 100% vested, regardless of Employee’s age or years of service, as of the Change of Control Termination Date.

  
 9. Non-Exclusivity of Rights. Nothing in this Agreement shall prevent or limit Employee’s continuing or future participation in any plan, program, policy, or practice provided by the Employer and for which Employee may qualify, nor shall anything herein limit or otherwise affect such rights as Employee may have under any contract or agreement with the Employer. Amounts which are vested benefits or which Employee is otherwise entitled to receive under any plan, policy, practice or program of or any contract or agreement with the Employer at or subsequent to a Date of Termination or Change of Control Termination Date shall be payable in accordance with such plan, policy, practice or program or such contract or agreement except as explicitly modified by this Agreement.
  
 10. Confidential Information. Employee covenants and agrees not to reveal to any person, firm, or corporation any confidential information of any nature concerning the Employer or its business, or anything connected therewith. As used in this Section 10, the term “Confidential Information” means all of the Employer’s and its Affiliates’ confidential and proprietary information and trade secrets in existence on the date hereof or existing at any time during the term of this Agreement, including but not limited to – 
  
 (a) the whole or any portion or phase of any business plans, financial information, operational plans and policies, or customer information, 
  
 (b) the whole or any portion or phase of any marketing information, customer lists, pricing information or projections, and 
  
 (c) trade secrets, as defined from time to time by the laws of the State of North Carolina. 
  
 	 
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 Despite the foregoing, Confidential Information excludes information that - as of the date hereof or at any time after the date hereof - is published or disseminated without obligation of confidence or that becomes a part of the public domain (x) by or through action of the Employer, or (y) otherwise than by or at the direction of Employee. This Section 10 does not prohibit disclosure required by an order of a court having jurisdiction or a subpoena from an appropriate governmental agency or disclosure made by Employee in the ordinary course of business and within the scope of Employee’s authority. 
  
 Employee agrees to deliver or return to the Employer upon expiration of this Agreement, or as soon thereafter as possible, all written information and any other similar items furnished by the Employer or prepared by Employee in connection with Employee’s service hereunder. Employee will retain no copies thereof after termination of this Agreement or termination of Employee’s employment. 
  
 Employee acknowledges that it is impossible to measure in money the damages that will accrue to the Employer if Employee fails to observe the obligations imposed by this Section 10. Accordingly, if the Employer institutes an action to enforce the provisions hereof, Employee hereby waives the claim or defense that an adequate remedy at law is available to the Employer, and Employee agrees not to urge in any such action the claim or defense that an adequate remedy at law exists. 
  
 For purposes of this Agreement the term “Affiliate” of the Employer includes Bancorp, the Bank, and any entity that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with Bancorp or the Bank. The rights and obligations set forth in this Section 10 shall survive termination of this Agreement. 
  
 Employee agrees that all creative work and work product, including but not limited to all technology, business management tools, processes, software, patents, trademarks, and copyrights developed by Employee during the term of this Agreement, regardless of when or where such work or work product was produced, constitutes work made for hire, all rights of which are owned by the Employer. Employee hereby assigns to the Employer all rights, title and interest, whether by way of copyright, trade secret, trademark, patent, or otherwise, in all such work or work product, regardless of whether the same is subject to protection by patent, trademark, or copyright laws. 
  
 11. Covenants.
  
 (a) Covenant Not to Compete. During the Restricted Period, Employee shall not, within the geographic areas composed of the circles surrounding the Bank’s then existing banking offices, with each circle having the applicable banking office as its center point and a radius of 25 miles (the “Territory”), directly or indirectly, in any capacity, render services, or engage or have a financial interest in, any business that shall be competitive with any of those business activities in which Bancorp or any of Bancorp’s subsidiaries or affiliates (the “Bank Group”) is engaged as of the date of this Agreement, which business activities include, but are not limited to, the provision of banking services (collectively, the “Business”); provided, however, that Employee’s ownership of less than five percent (5%) of the outstanding securities of any entity engaged in the Business that has a class of securities listed on a securities exchange or qualified for quotation on any over-the-counter market shall not be a violation of the foregoing. For purposes of this Agreement, “Restricted Period” shall mean the period of one (1) year after Employee’s Date of Termination. 
  
 (b) Covenant Not to Solicit Customers. During the Restricted Period, within the Territory Employee shall not, directly or indirectly, individually or on behalf of any other person or entity (other than a member of the Bank Group), offer to provide banking services to any person, partnership, corporation, limited liability company, or other entity who is or was a customer of any member of the Bank Group during any part of the twelve (12) month period immediately prior to the Date of Termination. 
  
 (c) Covenant Not to Solicit Employees. During the Restricted Period, within the Territory Employee shall not, directly or indirectly, individually or on behalf of any other person or entity, solicit, recruit or entice, directly or indirectly, any employee of any member of the Bank Group to leave the employment of such member to work with Employee or with any person, partnership, corporation, limited liability company or other entity with whom Employee is or becomes affiliated or associated.
  
 (d) Reasonableness of Scope and Duration. The parties hereto agree that the covenants and agreements contained in this Section 11 are reasonable in their time, territory and scope, and they intend that they be enforced, and no party shall raise any issue of the reasonableness of the time, territory or scope of any such covenants in any proceeding to enforce any such covenants.
  
 (e) Enforceability. Employee agrees that monetary damages would not be a sufficient remedy for any breach or threatened breach of the provisions of this Section 11, and that in addition to all other rights and remedies available to Bancorp or the Bank, they shall be entitled to specific performance and injunctive or other equitable relief as a remedy for any such breach or threatened breach. Any determination of whether Employee has violated such covenants shall be made by arbitration in Greensboro, North Carolina under the Rules of Commercial Arbitration (the “Rules”) of the American Arbitration Association, which Rules are deemed to be incorporated by reference herein.
  
 (f) Separate Covenants and Severability. The covenants and agreements contained in this Section 11 shall be construed as separate and independent covenants. Should any part or provision of any such covenant or agreement be held invalid, void or unenforceable in any court of competent jurisdiction, no other part or provision of this Agreement shall be rendered invalid, void or unenforceable as a result. If any portion of the foregoing provisions is found to be invalid or unenforceable by a court of competent jurisdiction unless modified, it is the intent of the parties that the otherwise invalid or unreasonable term shall be reformed, or a new enforceable term provided, so as to most closely effectuate the provisions as is validly possible.
  
 	 
	6
	

	 

  
 (g) Inapplicability. The provisions of this Section 11 shall not be operative upon, or be in any way enforceable against Employee at or after a Termination by Employee for Good Reason or a Termination Without Cause of Employee’s employment by the Employer, if in either event the date of Termination is in the final year of Employee’s Employment Period. In addition, the provisions of this Section 11 shall not be applicable or enforceable against Employee at any time after a Change of Control.
  
 12. Assignment and Successors.
  
 (a) Employee. This Agreement is personal to Employee and without the prior written consent of the Employer shall not be assignable by Employee otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by Employee’s legal representatives.
  
 (b) The Employer. This Agreement shall inure to the benefit of and be binding upon the Employer and its successors and assigns including, but not limited to any person acquiring directly or indirectly all or substantially all of the business or assets of Bancorp or the Bank by purchase, merger, consolidation, reorganization or otherwise. The Employer shall require any successor to expressly assume and agree to perform this Agreement.
  
 13. Regulatory Intervention. Notwithstanding anything in this Agreement to the contrary, the obligations of the Employer under this Agreement are subject to the following terms and conditions:
  
 (a) If Employee is suspended and/or temporarily prohibited from participating in the conduct of the Bank’s affairs by a notice served under Section 8(e)(3) or (1) of the Federal Deposit Insurance Act (12 U.S.C. § 1818 (e)(3) and (g)(1)), the Bank’s obligations hereunder, as applicable, shall be suspended as of the date of service unless stayed by appropriate proceedings. If the charges in the notice are dismissed, all of the Employer’s obligations which were suspended shall be reinstated.
  
 (b) If Employee is removed and/or permanently prohibited from participating in the conduct of the Bank’s affairs by an order issued under Section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act (12 U.S.C. § 1 818 (e)(4) and (g)(1)), all obligations of the Employer under this Agreement shall terminate as of the effective date of the order, but vested rights of the parties shall not be affected.
  
 (c) If the Bank is in default (as defined in Section 3(x)(1) of the Federal Deposit Insurance Act (12 U.S. C. § 1813 (X)(1)), all obligations of the Employer under this Agreement shall terminate as of the date of default, but any vested rights of Employee shall not be affected.
  
 (d) All obligations of the Employer under this Agreement shall be terminated, except to the extent determined that continuation of the contract is necessary for the continued operation of the Bank, if so ordered by the North Carolina Commissioner of Banks (the “Commissioner”) at the time the Federal Deposit Insurance Corporation (“FDIC”) enters into an agreement to provide assistance to or on behalf of the Bank under the authority contained in Section 13 (c) of the Federal Deposit Insurance Act (12 U.S.C.§ 1823 (c)), or if so ordered by the Commissioner at the time the FDIC approves a supervisory merger to resolve problems related to operation of the Bank or when the Bank is determined by the Commissioner to be in an unsafe or unsound condition. Any rights of Employee that shall have vested under this Agreement shall not be affected by such action. A termination of this Agreement, in whole or in part, shall be in compliance with Section 409A to the extent Section 409A applies to any portion of this Agreement.
  
 (e) With regard to the provisions of this Section 13(a) through (d):
  
 	  
	 (i)
	 The Employer agrees to use its best efforts to oppose any such notice of charges as to which there are reasonable defenses;

	  
	  
	  

	  
	 (ii)
	 In the event the notice of charges is dismissed or otherwise resolved in a manner that will permit the Employer to resume its obligations to pay compensation hereunder, the Employer will promptly make such payment hereunder; and

	  
	  
	  

	  
	 (iii)
	 During any period of suspension under Section 13(a), the vested rights of Employee shall not be affected except to the extent precluded by such notice.

  
 (f) The Employer’s obligations to provide compensation or other benefits to Employee under this Agreement shall be terminated or limited to the extent required by the provisions of any final regulation or order of the FDIC promulgated under Section 18(k) of the Federal Deposit Insurance Act (12 U.S.C. § 1828(k)) limiting or prohibiting any “golden parachute payment” as defined therein, but only to the extent that the compensation or payments to be provided by the Employer under this Agreement are so prohibited or limited.
  
 14. Certain Payments Delayed for a Specified Employee. If Employee is a “specified employee” as defined in Section 409A, then any payment(s) under this Agreement on account of a “separation from service” as defined in Section 409A shall be made and/or shall begin on the first day of the seventh (7th) month following the date of Employee’s Termination to the extent such payments are not exempt from Section 409A and the six (6) month delay in payment is required by Section 409A.
  
 	 
	7
	

	 

  
 15. Miscellaneous.
  
 (a) Set-Off; Mitigation. The Employer’s obligation to make the payments provided for in this Agreement or otherwise perform its obligations hereunder shall not be affected by any set-off or claim the Employer may have against Employee. Employee shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise and, except as provided in Sections 7(a)(ii) or 8(c)(ii), no such payment shall be offset or reduced by the amount of any compensation or benefits provided to Employee in any subsequent employment.
  
 (b) Waiver. Failure of either party to insist, in one or more instances, on performance by the other in strict accordance with the terms and conditions of this Agreement shall not be deemed a waiver or relinquishment of any right granted in this Agreement or of the future performance of any such term or condition or of any other term or condition of this Agreement, unless such waiver is contained in a writing signed by the party making the waiver.
  
 (c) Severability. If any provision or covenant of this Agreement should be held by any court to be invalid, illegal or unenforceable, either in whole or in part, such invalidity, illegality or unenforceability shall not affect the validity, legality enforceability of the remaining provisions or covenants, or any part thereof, of this Agreement, all of which shall remain in full force and effect.
  
 (d) Other Agents. Nothing in this Agreement is to be interpreted as limiting the Employer from employing other personnel on such terms and conditions as may be satisfactory to it.
  
 (e) Entire Agreement. Except as provided herein, this Agreement contains the entire agreement between the Employer and Employee with respect to the subject matter hereof and supersedes and invalidates any previous employment and severance agreements or contracts with Employee. No representations, inducements, promises or agreements, oral or otherwise, which are not embodied herein, shall be of any force or effect.
  
 (f) Compliance with Section 409A. It is intended that this Agreement shall conform with all applicable Section 409A requirements to the extent Section 409A applies to any provisions of the Agreement. Accordingly, in interpreting, construing or applying any provisions of the Agreement, the same shall be construed in such manner as shall satisfy and comply with Section 409A, and in the event of any inconsistency with Section 409A, the same shall be reformed so as to satisfy the requirements of Section 409A. Employee acknowledges that the Employer has not made any representation or warranty regarding the treatment of this Agreement or the benefits payable under this Agreement under federal, state or local income tax laws, including but not limited to Section 409A.
  
 (g) Compliance with Reform Act. It is intended that this Agreement shall conform with, and be subject to, all applicable sections of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law No. 111-203) and the regulations promulgated thereunder (the “Reform Act”). Employee hereby agrees to amend and/or modify from time to time this Agreement, as may be necessary, to comply with all applicable sections of the Reform Act.
  
 (h) Governing Law. Except to the extent preempted by federal law, the laws of the State of North Carolina shall govern this Agreement in all respects, whether as to its validity, construction, capacity, performance or otherwise.
  
 (i) Notices. All notices, requests, demands and other communications required or permitted hereunder shall be in writing and shall be deemed to have been duly given when delivered or five (5) days after mailing if mailed, first class, certified mail, postage prepaid:
  
 To the Employer:
  
 Peoples Bancorp of North Carolina
 518 West C Street
 Newton, North Carolina 28658
 Attention: Chairman of the Board
  
 To Employee:
  
 Jeffrey N. Hooper
 4158 Bob Jones Dr. NE
 Conover, NC 28613
  
 Any party may change the address to which notices, requests, demands and other communications shall be delivered or mailed by giving notice thereof to the other party in the same manner provided herein.
  
 (j) Amendments and Modifications. This Agreement may be amended or modified only by a writing, which makes specific reference to this Agreement and is signed by all parties hereto. Provided, further, that no amendment or modification to this Agreement shall be adopted unless it complies with Section 409A to the extent Section 409A applies to this Agreement and/or to the amendment or modification.
  
 	 
	8
	

	 

  
 (k) Attorneys’ Fees and Related Expenses. If, after the occurrence of a Change of Control, there arises a dispute between the Employer and Employee regarding the terms, provisions or requirements of this Agreement or an action is commenced to enforce or obtain recourse for the breach of this Agreement, then the Employer shall pay or reimburse Employee for all attorneys’ fees, court costs and related legal expenses incurred in connection therewith within thirty (30) days after Employee’s request for such payment or reimbursement. 
  
 (l) Reimbursements and In-kind Benefits. To the extent required by Section 409A, each reimbursement or in-kind benefit provided under this Agreement shall be provided in accordance with the following:
  
 (i) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during each calendar year cannot affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year;
  
 (ii) unless required to be paid sooner as set forth herein, any reimbursement of an eligible expense shall be paid to the Employee on or before the last day of the calendar year following the calendar year in which the expense was incurred; and
  
 (iii) any right to reimbursements or in-kind benefits under this Agreement shall not be subject to liquidation or exchange for another benefit.
  
 16. Definitions. The following terms are defined in the Sections of this Agreement referenced below:
  
 	 Term
	 Section

	 Accrued Obligations
	 Section 7(a)(i)(A)

	 Affiliate
	 Section 10

	 Base Salary
	 Section 5(a)

	 Bancorp Board
	 Section 3

	 Bank Board
	 Section 5(a)

	 Bank Group
	 Section 11(a)

	 Benefit Plans
	 Section 5(c)

	 Business
	 Section 11(a)

	 Cause
	 Section 6(b)

	 Change of Asset Ownership
	 Section 8(b)(ii)

	 Change of Ownership
	 Section 8(b)(iii)

	 Change of Control
	 Section 8(b)

	 Change of Control Termination
	 Section 8(a)

	 Change of Control Termination Date
	 Section 8(a)

	 Change in Effective Control
	 Section 8(b)(i)

	 COBRA
	 Section 7(a)(ii)

	 Code
	 Section 3

	 Confidential Information
	 Section 10

	 Continuing Period
	 Section 8(c)(ii)

	 Commissioner
	 Section 13(d)

	 Date of Termination
	 Section 6(f)

	 Disability
	 Section 6(a)

	 Disability Effective Date
	 Section 6(a)

	 Effective Date
	 Section 1

	 Employment Period
	 Section 3

	 FDIC
	 Section 13(d)

	 Good Reason
	 Section 6(c)

	 Group
	 Section 8(b)(i)

	 Incentive Plans
	 Section 5(b)

	 Notice of Termination 
	 Section 7(e)

	 Other Benefits
	 Section 7(b)

	 Person
	 Section 8(b)(i)

	 Reform Act
	 Section 15(g)

	 Remaining Employment Period
	 Section 7(a)(i)(B)

	 Restricted Period
	 Section 11(a)

	 Rules
	 Section 11(e)

	 Section 409A
	 Section 3

	 Terminate
	 Section 3

	 Termination Without Cause
	 Section 6(d)

	 Territory
	 Section 11(a)

	 Welfare Benefit Plans
	 Section 5(d)

  
 	 
	9
	

	 

  
 IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Employment and Change of Control Agreement as of the date first above written.
  
 	 	Peoples Bancorp of North Carolina, Inc.	
	 	 	 	 
		By:	/s/ Robert C. Abernethy	
	  
	  
	Chairman	 
	  
	  
	  
	  

	  
	 Peoples Bank
	  

	  
	  
	  
	  

	  
	 By:
	 /s/ Robert C. Abernethy 
	  

	 	 	Chairman	 
	  
	  
	  
	  

	  
	  
	 /s/ Jeffrey N. Hooper 
	  

	  
	  
	 Jeffrey N. Hooper
	  

  
 	 
	10

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