Document:

Exhibit 10.16

 

PARTNERS BANCORP

2021 INCENTIVE STOCK PLAN 

 

ARTICLE
I

Establishment, Purpose, and Duration

 

1.1       Establishment
of the Plan.

 

(a)       Partners Bancorp,
a Maryland corporation, hereby establishes the Partners Bancorp 2021 Incentive Stock Plan. Unless otherwise defined herein, all capitalized
terms shall have the meanings set forth in Section 2.1. The Plan permits the grant of Incentive Stock Options, Non-Qualified Stock Options,
Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Stock Awards and Performance Units to Key Employees of the Company
or its Subsidiaries and the grant of Non-Qualified Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units,
Stock Awards and Performance Units to Non-Employee Directors of the Company or its Subsidiaries.

 

(b)       The
Plan was adopted by the Board of Directors of the Company on January 27, 2021 and shall become effective on May 19, 2021 (the “Effective
Date”), subject to the approval of the Plan by the Company’s shareholders.

 

1.2       Purpose
of the Plan. The purpose of the Plan is to promote the success of the Company and its Subsidiaries by providing incentives to Key
Employees and Non-Employee Directors that will promote the identification of their personal interests with the long-term financial success
of the Company and with growth in shareholder value, consistent with the Company’s risk management practices. The Plan is designed
to provide flexibility to the Company, including its Subsidiaries, in its ability to attract, retain the services of, and motivate Key
Employees and Non-Employee Directors upon whose judgment, interest, and special effort the successful conduct of its operation is largely
dependent.

 

1.3       Duration
of the Plan. The terms of the Plan shall become effective on the Effective Date, as described in Section 1.1(b). No Award may be granted
under the Plan after May 18, 2031. Awards outstanding on such date shall remain valid in accordance with their terms. The Board shall
have the right to terminate the Plan at any time pursuant to Article XVI.

 

ARTICLE
II

Definitions

 

2.1              
Definitions. Except as otherwise defined in the Plan, the following terms shall have the meanings set forth below:

 

(a)               
“Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2
under the Exchange Act.

 

     

     

    

 

(b)                “Agreement”
means a written agreement or other instrument or document, which may be in electronic format, implementing the grant of an Award and
setting forth the specific terms of an Award, and which is signed or acknowledged (including a signature or acknowledgment in
electronic format) by an authorized officer or director of the Company and by the Participant, except that no signature or
acknowledgment will be required from the Participant in the case of a Stock Award with no vesting conditions. The Company’s
Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, Chairman of the Committee, Chairman of the Board, and
such other directors or officers of the Company as shall be designated by the Committee are hereby authorized to execute or
acknowledge Agreements on behalf of the Company (including a signature or acknowledgment in electronic format) and to cause
Agreements to be delivered to each Participant (including delivery in electronic format). 

 

(c)               
“Award” means, individually or collectively, a grant under the Plan of an Incentive Stock Option, Non-Qualified
Stock Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Stock Award, or Performance Unit.

 

(d)               
“Award Date” means the date on which an Award is made (also referred to as “granted”) by the Committee
under the Plan.

 

(e)               
“Beneficial Owner” shall have the meaning ascribed to such term in Rule 13d-3 under the Exchange Act.

 

(f)                
“Beneficiary” means the person designated by a Participant pursuant to Section 17.12.

 

(g)               
“Board” or “Board of Directors” means the Board of Directors of the Company, unless such term is used with
respect to a Subsidiary, in which case it shall mean the Board of Directors of that Subsidiary.

 

(h)               
“Change of Control” shall be deemed to have occurred if the conditions in any one of the following three paragraphs
have been satisfied:

 

(i)                
The consummation, after the Effective Date, of a transaction or series of transactions within any twelve-month period that result
in any Person (other than the Company or any then current subsidiary or a trustee or other fiduciary holding securities under an employee
benefit plan of the Company or any then current subsidiary), together with all Affiliates and Associates of such Person, being the Beneficial
Owner, directly or indirectly, of securities of the Company representing 40% or more of the total combined voting power of all classes
of the Company’s then outstanding securities;

 

(ii)                The
consummation, after the Effective Date, of any of the following transactions: (A) the Company consolidates with, or merges with, any
other Person and the Company is not the continuing or surviving corporation, (B) any Person consolidates with or merges with the
Company, and the Company is the continuing or surviving corporation and, in connection therewith, all or part of the outstanding
common stock of the Company shall be changed into or exchanged for stock or other securities of any other Person or cash or any
other property, (C) the Company is a party to a statutory share exchange with any other Person after which the Company is a
subsidiary of any other Person, or (D) the Company sells or otherwise transfers 50% or more of the consolidated assets of the
Company and its subsidiaries to any Person or Persons, or any Person or Persons acquire 50% or more of the consolidated assets of
the Company and its subsidiaries; provided, in the case of (A), (B) and (C), however, if the Company shall become a subsidiary of a
corporation or other organization or shall be merged or consolidated into another corporation or organization, and a majority of the
outstanding voting shares of the parent or surviving corporation are owned immediately after such acquisition, merger, or
consolidation by the owners of a majority of the voting shares of the Company immediately before such acquisition, merger, or
consolidation, in substantially the same proportion as their ownership of such voting shares immediately prior to such acquisition,
merger or consolidation, then no Change of Control shall be deemed to have occurred; or

 

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(iii)             
If, within any twelve-month period (beginning on or after the Effective Date) the persons who were the Company’s directors
immediately before the beginning of such twelve-month period (the “Incumbent Directors”) shall cease to constitute
at least a majority of the Board of Directors; provided that any director who was not a director as of the beginning of such twelve-month
period shall be deemed to be an Incumbent Director if that director were elected to the Board of Directors by, or on the recommendation
of or with the approval of, at least two-thirds (2/3) of the directors who then qualified as Incumbent Directors; and provided further
that no director whose initial assumption of office is in connection with an actual or threatened election contest relating to the election
of directors shall be deemed to be an Incumbent Director.

 

(i)                 
“Code” means the Internal Revenue Code of 1986, as amended from time to time, and any regulations promulgated thereunder.

 

(j)                 
“Committee” means the committee of the Board appointed by the Company to administer the Plan pursuant to Article III,
which shall be the Compensation Committee of the Board of Directors of the Company unless a subcommittee is required as provided below
or unless the Board of Directors of the Company determines otherwise. All members of the Committee shall be “independent directors”
under applicable stock exchange listing standards, or, if the Stock is not then listed or reported on a national securities exchange or
system, under the applicable independence standard selected by the Company’s Board. For actions which require that all of the members
of the Committee constitute “non-employee directors” as defined in Rule 16b-3, or any similar or successor rule, the
Committee shall consist of a subcommittee of at least two members of the Compensation Committee meeting such qualifications. In the event
the Board of Directors of the Company exercises the authority of the Committee in connection with the Plan or an Award as contemplated
by Section 3.1(a), the term “Committee” shall refer to the Board of Directors of the Company in connection with the Plan or
with regard to that Award.

 

(k)               
“Company” means Partners Bancorp, or any successor thereto as provided in Section 17.2.

 

(l)                
“Disability” or “Disabled” means with respect to an Incentive Stock Option, a Disability within the meaning
of Section 22(e)(3) of the Code. As to all other Awards, the Committee shall determine whether a Disability exists and such determination
shall be conclusive.

 

(m)             
“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and any regulations promulgated
thereunder.

 

(n)               
“Fair Market Value” of a Share means the closing market price (that is, the price at which last sold on the principal
U.S. market or quotation system) of the Stock on the relevant date if it is a trading date or, if not, on the most recent date on which
the Stock was traded prior to such date, as reported by the exchange for the principal U.S. market or principal quotation system on which
the Stock is traded; or if, in the opinion of the Committee, this method is inapplicable or inappropriate for any reason, the fair market
value as determined pursuant to a reasonable method adopted by the Committee in good faith for such purpose.

 

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(o)               
“Incentive Stock Option” or “ISO” means an option to purchase Stock, granted under Article VI, which is
designated as an incentive stock option and is intended to meet the requirements of Section 422 of the Code.

 

(p)               
 “Key Employee” means an officer or other key employee of the Company or its Subsidiaries, who, in the opinion of the
Committee, can contribute significantly to the growth and profitability of, or perform services of major importance to, the Company and
its Subsidiaries.

 

(q)               
“Non-Employee Director” means an individual who is a member of the Board of the Company or a Subsidiary or a member
of an advisory board of the Company or a Subsidiary and, in either case, who is not an employee of the Company or any Subsidiary.

 

(r)                
“Non-Qualified Stock Option” means an option to purchase Stock, granted under Article VI, which is not intended
to be an Incentive Stock Option and is so designated.

 

(s)                
“Option” means an Incentive Stock Option or a Non-Qualified Stock Option.

 

(t)                
“Participant” means a Key Employee or Non-Employee Director who has been granted an Award under the Plan and whose
Award remains outstanding.

 

(u)               
“Performance-Based Compensation Award” means any Award for which exercise, full enjoyment or receipt thereof by the
Participant is contingent on satisfaction or achievement of the Performance Goal(s) applicable thereto. The terms and conditions of each
Performance-Based Compensation Award, including the Performance Goal(s) and Performance Period, shall be set forth in an Agreement or
in a subplan of the Plan that is incorporated by reference into an Agreement.

 

(v)                “Performance
Goal” means one or more performance measures or goals set by the Committee in its discretion for each grant of a
Performance-Based Compensation Award. The extent to which such performance measures or goals are met will determine the amount or
value of the Performance-Based Compensation Award that a Participant is entitled to exercise, receive or retain. For purposes of the
Plan, a Performance Goal may be particular to a Participant and may include, but is not limited to, any one or more of the following
performance criteria, either individually, alternatively, or in any combination, subset or component, applied to the performance of
the Company as a whole or to the performance of a Subsidiary, division, strategic business unit, line of business or business
segment, measured either quarterly, annually, or cumulatively over a period of years or partial years, in each case as specified by
the Committee in the Award: (i) Stock value or increases therein, (ii) earnings per share or earnings per share growth, (iii) net
earnings, (iv) total shareholder return, (v) operating revenue, (vi) tangible book value or tangible book value growth, tangible
book value per share or growth in tangible book value per share, (vii) fully diluted earnings per share after extraordinary events,
(viii) earnings and/or earnings growth (before or after one or more of taxes, interest, depreciation and/or amortization), operating
earnings and/or operating earnings growth, (ix) profits or profit growth (net profit, gross profit, operating profit, economic
profit, profit margins or other corporate profit measures), (x) operating cash flow, (xi) operating or other expenses or growth
thereof, (xii) operating efficiency, (xiii) return on equity, (xiv) return on tangible equity or return on tangible common equity,
(xv) return on assets, capital or investment, (xvi) sales or revenues or growth thereof, (xvii) deposits, loan and/or equity levels
or growth thereof, (xviii) working capital targets, (xix) assets under management or growth thereof, (xx) cost control measures,
(xxi) regulatory compliance, (xxii) gross, operating or other margins, (xxiii) efficiency ratio (as generally recognized and used
for bank financial reporting and analysis), (xiv) interest income, (xxv) net interest income, (xxvi) net interest margin, (xxvii)
non-interest income, (xxviii) non-interest expense, (xxix) credit quality, net charge-offs and/or non-performing assets
(excluding such loans or classes of loans as may be designated for exclusion), (xxx) percentage of non-accrual loans to total loans
or net charge-off ratio, (xxxi) provision expense, (xxxii) productivity, (xxxiii) customer satisfaction, (xxxiv) satisfactory
internal or external audits, (xxxv) improvement of financial ratings, (xxxvi) achievement of balance sheet or income statement
objectives, (xxxvii) quality measures, (xxxviii) regulatory exam results, (xxxix) achievement of risk management objectives, (xl)
achievement of strategic performance objectives, (xli) achievement of merger or acquisition objectives, (xlii) implementation,
management or completion of critical projects or processes, or (xliii) any component or components of the foregoing (including,
without limitation, determination thereof, in the Committee’s discretion, with or without the effect of discontinued
operations and dispositions of business units or segments, non-recurring items, material extraordinary items that are both
unusual and infrequent, non-budgeted items, an event or series of events either not directly related to the operations of the
Company or not within the reasonable control of the Company’s management, special charges, accruals for acquisitions,
reorganization and restructuring programs and/or changes in tax law, accounting principles or other such laws or provisions
affecting the Company’s reported results).

 

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Performance Goals
may include a threshold level of performance below which no payment or vesting may occur, levels of performance at which specified payments
or specified vesting will occur, and a maximum level of performance above which no additional payment or vesting will occur. Performance
Goals may be absolute in their terms or measured against or in relationship to a pre-established target, the Company’s budget or
budgeted results, previous period results, a market index, a designated comparison group of other companies comparably, similarly or otherwise
situated, or any combination thereof.

 

The Committee shall
determine the Performance Period during which a Performance Goal must be met, and attainment of Performance Goals shall be subject to
certification by the Committee. Except to the extent limited in the Agreement, the Committee may, in its discretion, adjust the compensation
or economic benefit due upon attainment of Performance Goals and adjust the Performance Goals themselves and/or the length of the Performance
Period in which one or more Performance Goals must be achieved.

 

(w)             
“Performance Period” means the period during which a Performance Goal must be met in connection with a Performance-Based
Compensation Award. Such period shall be set by the Committee.

 

(x)               
“Performance Unit” means an Award, designated as a Performance Unit, granted to a Participant pursuant to Article XI,
valued by reference to the Fair Market Value of Stock or valued as a fixed dollar amount, and subject to achievement or satisfaction of
one or more Performance Goals. Performance Units are payable in cash, Stock or a combination thereof. Even to the extent a Performance
Unit is denoted by reference to Shares of Stock and is payable in Stock, the receipt of a Performance Unit Award does not constitute receipt
of the underlying Shares.

 

(y)               
“Period of Restriction” means the period during which Shares of Restricted Stock are subject to a substantial risk
of forfeiture and/or subject to limitations on transfer, pursuant to Article VIII, or the period during which Restricted Stock Units are
subject to vesting requirements, pursuant to Article IX. The relevant restriction may lapse based on a period of time or after meeting
performance criteria specified by the Committee, or both. The Period of Restriction shall be set by the Committee.

 

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(z)               
“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d)
and 14(d) thereof, including a “group” as described in Section 13(d) thereof.

 

(aa)            
 “Plan” means the Partners Bancorp 2021 Incentive Stock Plan, as described herein and as amended from time to time,
or any successor plan.

 

(bb)           
“Restricted Stock” means an Award of Stock granted to a Participant pursuant to Article VIII, which is subject to a
substantial risk of forfeiture and/or subject to limitations on transfer until the designated conditions for the lapse of such restrictions
are satisfied.

 

(cc)            
“Restricted Stock Unit” means an Award, designated as a Restricted Stock Unit, which is a bookkeeping entry granted
to a Participant pursuant to Article IX and valued by reference to the Fair Market Value of a Share, subject to vesting requirements.
Restricted Stock Units are payable in cash, Stock or a combination thereof. Even to the extent a Restricted Stock Unit is denoted by reference
to a number of Shares of Stock and is payable in Stock, receipt of a Restricted Stock Unit Award does not constitute receipt of the underlying
Shares.

 

(dd)           
“Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act, including any corresponding subsequent rule or any
amendments enacted after the Effective Date.

 

(ee)            
“Securities Act” means the Securities Act of 1933, as amended from time to time, and any regulations promulgated thereunder.

 

(ff)              
“Stock” or “Shares” means the common stock of the Company.

 

(gg)           
“Stock Appreciation Right” or “SAR” means an Award, designated as a stock appreciation right, granted to
a Participant pursuant to Article VII, and payable in cash, Stock or a combination thereof.

 

(hh)           
“Stock Award” means an award of Stock granted to a Participant pursuant to Article X.

 

(ii)              
“10% Shareholder” means a person who owns, directly or indirectly, stock possessing more than 10% of the total combined
voting power of all classes of Stock of the Company or any parent or subsidiary of the Company. Indirect ownership of stock shall be determined
in accordance with Section 424(d) of the Code.

 

(jj)              
“Subsidiary” means, in the case of ISOs, any subsidiary corporation of the Company within the meaning of Section 424(f)
of the Code (including any entity which becomes a Subsidiary after the adoption of the Plan by the Board) and, in the case of awards other
than ISOs, any subsidiary corporation, partnership, limited liability company, joint venture or other trade or business which is considered
to be a single employer together with the Company under Section 414(b) or (c) of the Code (substituting “at least 50%” for
 “at least 80%” in determining ownership or control therein).

 

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ARTICLE
III

Administration

 

3.1       The
Committee.

 

(a)       The
Plan shall be administered by the Committee which shall have all powers necessary or desirable for such administration. To the
extent required by Rule 16b-3, all Awards shall be made by members of the Committee who are “non-employee
directors” as that term is defined in Rule 16b-3, or by the Board. In the event the Board determines that a member of the
Committee (or any applicable subcommittee) was not an “independent director” under applicable listing standards of any
national securities exchange or system on which the Stock is then listed or reported or other independence standard selected by the
Company’s Board if the Stock is not then listed or reported and/or was not a “non-employee director” as
defined in Rule 16b-3, as applicable, on the Award Date, such determination shall not invalidate the Award and the Award shall
remain valid in accordance with its terms. Any authority granted to the Committee may also be exercised by the full Board.

 

(b)       The
express grant in the Plan of any specific power to the Committee shall not be construed as limiting any power or authority of the Committee.
In addition to any other powers and, subject to the provisions of the Plan, the Committee shall have the following specific powers: (i)
to determine the terms and conditions upon which the Awards may be made, exercised, paid and distributed; (ii) to determine all terms
and provisions of each Agreement, which need not be identical; (iii) to construe and interpret the Agreements and the Plan, including
the ability to resolve any ambiguities and define any terms; (iv) to establish, amend or waive rules or regulations for the Plan’s
administration; (v) to accelerate the exercisability of any Award or the end of the Performance Period or the termination of any Period
of Restriction or other restrictions imposed under the Plan to the extent permitted by Section 409A of the Code; (vi) to change any Performance
Goal; (vii) to determine to what extent leaves of absence for governmental or military service, illness, temporary disability, or other
reasons shall not be deemed interruptions of employment or service or continuous employment or service; and (viii) to make all other determinations
and take all other actions necessary or advisable for the administration of the Plan in its discretion. The interpretation and construction
of any provisions of the Plan or an Agreement by the Committee shall be final, conclusive, and binding.
In the event of a conflict or inconsistency between the Plan and any Agreement, the Plan shall govern, and the Agreement shall be interpreted
to minimize or eliminate any such conflict or inconsistency. 

 

(c)       The
Committee may consult with counsel, who may be counsel to the Company, and shall not incur any liability for any action taken in good
faith in reliance upon the advice of counsel.

 

(d)       The
Committee, in its discretion, may delegate to any of the Chief Executive Officer, the Chief Operating Officer and the Chief Financial
Officer of the Company all or part of the Committee’s authority and duties with respect to Awards to individuals who are not subject
to the reporting and other provisions of Section 16 of the Exchange Act. The Committee may establish the maximum number of shares that
can be granted by such officer and may establish guidelines for such officer’s authority and discretion. The Committee may revoke
or amend the terms of a delegation at any time but such action shall not invalidate any prior actions of the Committee’s delegee
or delegees that were consistent with the terms of the Plan.

 

3.1              
Selection of Participants. The Committee shall have the authority to grant Awards under the Plan, from time to time, to
such Key Employees and Non-Employee Directors as may be selected by it to be Participants.

 

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3.2              
Decisions Binding. All determinations and decisions made by the Board or the Committee pursuant to the provisions of the
Plan shall be made in its discretion and shall be final, conclusive, and binding.

 

3.3              
Requirements of Rule 16b-3. Notwithstanding any provision of the Plan to the contrary, the Board or the Committee may
impose such conditions on any Award, and amend the Plan in any such respects, as may be required to satisfy the requirements of Rule 16b-3
(or any successor or similar rule). Notwithstanding any provision of the Plan to the contrary, and except to the extent that the Committee
determines otherwise, at any time the Company is subject to the Exchange Act: (i) transactions by and with respect to officers and
directors of the Company who are subject to Section 16(b) of the Exchange Act shall comply with any applicable conditions of Rule 16b-3;
and (ii) every provision of the Plan shall be administered, interpreted, and construed to carry out the foregoing provisions of this
sentence.

 

3.4              
 Indemnification of the Committee. In addition to such other rights of indemnification as they may have as directors or
as members of the Committee, the members of the Committee shall be indemnified by the Company against reasonable expenses, including attorneys’
fees, actually and reasonably incurred in connection with the defense of any action, suit, or proceeding, or in connection with any appeal
therein, to which they or any of them may be a party by reason of any action taken or failure to act under or in connection with the Plan
or any Award granted or made hereunder, and against all amounts reasonably paid by them in settlement thereof or paid by them in satisfaction
of a judgment in any such action, suit, or proceeding, if such members acted in good faith and in a manner which they believed to be in,
and not opposed to, the best interests of the Company and its Subsidiaries.

 

ARTICLE
IV

Stock Subject to the Plan

 

4.1       Number
of Shares.

 

(a)       Subject
to adjustment as provided in Article XIV, the maximum aggregate number of Shares that may be issued pursuant to Awards granted under the
Plan shall not exceed 1,250,000. Except as provided in Section 4.2, the issuance of Shares in connection with the exercise of, or as other
payment for, Awards under the Plan shall reduce the number of Shares available for future Awards under the Plan.

 

(b)       Subject
to adjustment as provided in Article XIV, no more than an aggregate of 1,250,000 Shares may be issued pursuant to the exercise of Incentive
Stock Options granted under the Plan (including shares issued pursuant to the exercise of Incentive Stock Options that are the subject
of disqualifying dispositions within the meaning of Sections 421 and 422 of the Code).

 

4.2       Lapsed
Awards or Forfeited Shares. If any Award granted under the Plan terminates, expires, is cancelled or lapses for any reason other than
by virtue of exercise or settlement of the Award, or if Shares issued pursuant to an Award are forfeited, any Stock subject to such Award
or such forfeited Shares, as applicable, again shall be available for the grant of an Award under the Plan.

 

4.3       Use
of Shares as Payment of Exercise Price or Taxes. Shares withheld by the Company, delivered by the Participant, or otherwise used to
pay the Option Price pursuant to the exercise of an Option or the SAR Exercise Price pursuant to the exercise of a SAR shall not be available
for future Awards under the Plan. Shares withheld by the Company, delivered by the Participant, or otherwise used to satisfy payment of
withholding taxes associated with an Award shall not be available for future Awards under the Plan. To the extent Shares are delivered
or withheld pursuant to the exercise of an Option or a SAR, the number of underlying Shares as to which the exercise related shall be
counted against the number of Shares available for future Awards under the Plan, as opposed to counting only those Shares issued upon
exercise.

 

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4.4       Annual
Limit on Aggregate Cash Compensation and Awards to Non-Employee Directors. Except as otherwise provided in this Section 4.4, the
aggregate value of cash compensation from the Company and the grant date fair value (computed in accordance with generally accepted
accounting principles) of Awards granted under the Plan to any Non-Employee Director for his service as a Non-Employee Director
during any fiscal year shall not, combined, exceed $200,000. For the avoidance of doubt, compensation shall be counted towards this
limit for the fiscal year in which it is earned (and not when it is paid, if in cash, or vested or settled, if in equity). The
independent members of the Board may make exceptions to this limit for an executive or non-executive Chair of the Board or in other
extraordinary circumstances for individual Non-Employee Directors, provided that the Chair of the Board or the Non-Employee
Director, as applicable, receiving such additional compensation may not participate in the decision to award such compensation.

 

4.5       No
Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the Plan or any Award thereunder. The Committee shall
determine whether cash, other Awards, or other property shall be issued or paid in lieu of such fractional Shares or whether such fractional
Shares or any rights thereto shall be forfeited or otherwise eliminated.

 

ARTICLE
V

Eligibility

 

Persons eligible to participate
in the Plan and receive Awards are (i) all employees of the Company and its Subsidiaries (including any entity that becomes a Subsidiary
after the Effective Date) who, in the opinion of the Committee, are Key Employees and (ii) all Non-Employee Directors. The grant of an
Award shall not obligate the Company to pay a Key Employee or Non-Employee Director any particular amount of remuneration, to continue
the employment of a Key Employee or the service of the Non-Employee Director, or to make further grants to a Key Employee or Non-Employee
Director at any time thereafter.

 

ARTICLE
VI

Options

 

6.1              
Grant of Options. Subject to the terms and provisions of the Plan, Options may be granted to such Key Employees and Non-Employee
Directors at any time and from time to time as shall be determined by the Committee. The Committee shall have complete discretion in determining
the number of Shares subject to Options granted to each Participant, provided, however, that only Non-Qualified Stock Options may be granted
to Non-Employee Directors.

 

6.2       Option
Agreement. Each Option grant shall be evidenced by an Agreement that shall specify the type of Option granted, the Option Price (as
hereinafter defined), the duration of the Option, the number of Shares to which the Option pertains, any conditions imposed upon the exercisability
of the Option, and such other provisions as the Committee shall determine consistent with the Plan. The Agreement shall specify whether
the Option is intended to be an Incentive Stock Option or Non-Qualified Stock Option, provided, however, that if an Option is intended
to be an Incentive Stock Option but fails to be such for any reason, it shall continue in full force and effect as a Non-Qualified Stock
Option. No Option may be exercised after the expiration of its term or, except as set forth in the Participant’s Agreement, after
the termination of the Participant’s employment or service. The Committee shall set forth in the Agreement when, and under what
circumstances, an Option may be exercised after termination of the Participant’s employment or service. In the event an ISO is exercisable
after (a) three (3) months from the Participant’s termination of employment for reasons other than Disability or death, or (b) one
(1) year from the Participant’s termination of employment on account of Disability or death, then the Agreement shall specifically
provide that the exercise beyond such periods shall be the exercise of a Non-Qualified Stock Option. The Committee may, in its discretion,
amend a previously granted ISO to provide for more liberal exercise provisions, provided, however, that if the ISO as amended no longer
meets the requirements of Section 422 of the Code, and, as a result the Stock Option no longer qualifies for favorable federal income
tax treatment under Section 422 of the Code, the amendment shall not become effective without the written consent of the Participant.

 

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6.3       Option
Price. The exercise price per share of Stock covered by an Option (“Option Price”) shall be determined by the
Committee subject to the limitations described in this Section 6.3 and the Plan. The Option Price shall not be less than 100% of the
Fair Market Value of such Stock on the Award Date. In addition, an ISO granted to a Key Employee who, at the time of grant, is a 10%
Shareholder, shall have an Option Price which is at least equal to 110% of the Fair Market Value of the Stock on the Award Date.

 

6.4       Duration
of Options. Each Option shall expire at such time as the Committee shall determine at the time of grant, provided, however, that no
Option shall be exercisable later than the tenth (10th) anniversary date of its Award Date. In addition, an ISO granted to
a Key Employee who, at the time of grant, is a 10% Shareholder, shall not be exercisable later than the fifth (5th) anniversary
date of its Award Date.

 

6.5       Exercisability.

 

(a)       Options
granted under the Plan shall be exercisable at such times and be subject to such restrictions and conditions as the Committee shall determine,
which need not be the same for all Participants.

 

(b)       An
Incentive Stock Option, by its terms, shall be exercisable in any calendar year only to the extent that the aggregate Fair Market Value
(determined at the Award Date) of the Stock with respect to which Incentive Stock Options are exercisable by the Participant for the first
time during the calendar year does not exceed $100,000 (the “Limitation Amount”). Incentive Stock Options granted under the
Plan and all other plans of the Company and any Subsidiary shall be aggregated for purposes of determining whether the Limitation Amount
has been exceeded. The Committee may impose such conditions as it deems appropriate on an Incentive Stock Option to ensure that the foregoing
requirement is met. If Incentive Stock Options that first become exercisable in a calendar year exceed the Limitation Amount, the excess
Options will be treated as Non-Qualified Stock Options to the extent permitted by law.

 

6.6       Method
of Exercise. Options shall be exercised by the delivery of a written notice to the Company in the form (which may be electronic) prescribed
by the Committee (or its delegee) setting forth the number of Shares with respect to which the Option is to be exercised, accompanied
by full payment for the Shares and payment of (or an arrangement satisfactory to the Company for the Participant to pay) any tax withholding
required in connection with the Option exercise. To the extent approved by the Committee from time to time, the Option Price shall be
payable to the Company in full either (a) in cash, including via certified check or wire transfer, (b) by delivery of Shares of Stock
that the Participant has previously acquired and owned valued at Fair Market Value at the time of exercise, (c) by delivery of a properly
executed exercise notice together with irrevocable instructions to a broker to deliver promptly to the Company, from the sale proceeds
with respect to the sale of Stock, the amount necessary to pay the Option Price and, if necessary, applicable withholding taxes, (d) by
the Company withholding Shares otherwise issuable upon the exercise valued at Fair Market Value at the time of exercise, or (e) by a combination
of the foregoing. As soon as practicable, after receipt of written notice and payment of the Option Price and completion of payment of
(or an arrangement satisfactory to the Company for the Participant to pay) any tax withholding required in connection with the Option
exercise, the Company shall, in the Committee’s discretion, either deliver to the Participant stock certificates in an appropriate
amount based upon the number of Options exercised, issued in the Participant’s name, or deliver the appropriate number of Shares
in book entry or electronic form.

 

    - 10 - 

     

    

 

6.7       Restrictions
on Stock Transferability. The Committee may impose such restrictions on any Shares acquired pursuant to the exercise of an
Option under the Plan as it may deem advisable, including, without limitation, restrictions under applicable securities laws. The
Committee may specify in an Agreement that Stock delivered on exercise of an Option is Restricted Stock pursuant to Article VIII or
Stock subject to a buyback right by the Company in the event the Participant does not complete a specified service period after
exercise, or is otherwise subject to further restrictions. The Committee shall legend the certificates
representing such Shares to give appropriate notice of such restrictions or shall otherwise denote the Shares as being subject to
such restrictions, if issued in book entry or electronic form.

 

6.8       Disqualifying
Disposition of Shares Issued on Exercise of an ISO. If a Participant makes a “disposition” (within the meaning of Section
424(c) of the Code) of Shares issued upon exercise of an ISO within two (2) years from the Award Date or within one (1) year from the
date the Shares are transferred to the Participant, the Participant shall, within ten (10) days of disposition, notify the Committee (or
its delegee) in order that any income realized as a result of such disposition can be properly reported by the Company on IRS forms W-2
or 1099.

 

6.9       Shareholder
Rights. A Participant holding Options shall have no right to vote the underlying Shares, no right to receive dividends on the underlying
Shares, and no other rights as a shareholder until after the exercise of the Options and the issuance of the underlying Shares. In no
event shall any Option granted under the Plan include any right to dividend equivalents with respect to such Option or the underlying
Shares.

 

ARTICLE
VII

Stock Appreciation Rights

 

7.1              
Grant of Stock Appreciation Rights.  Subject to the terms and provisions of the Plan, Stock Appreciation Rights may
be granted to such Key Employees and Non-Employee Directors at any time and from time to time as shall be determined by the Committee.

 

7.2              
SAR Agreement. Each SAR grant shall be evidenced by an Agreement that shall specify its terms and conditions, the SAR Exercise
Price (as hereinafter defined), the duration of the SAR, the number of Shares to which the SAR pertains, any conditions imposed upon the
exercisability of the SAR, and such other provisions as the Committee shall determine consistent with the Plan. The per Share exercise
price of a SAR (the “SAR Exercise Price”) shall be determined by the Committee and shall not be less than 100% of the Fair
Market Value of such Stock on the Award Date.

 

7.3              
Exercise of SARs.  SARs may be exercised with respect to all or part of the Shares upon whatever terms and conditions
the Committee, in its discretion, imposes upon such SARs, subject to the limitations in this Article VII. A SAR shall be exercised by
the delivery of a written notice to the Company in the form (which may be electronic) prescribed by the Committee (or its delegee)

 

    - 11 - 

     

    

 

7.4              
Other Conditions Applicable to SARs. In no event shall the term of any SAR granted under the Plan exceed ten (10) years
from the Award Date. A SAR may be exercised only when the Fair Market Value of a Share exceeds the SAR Exercise Price.

 

7.5              
Payment Upon Exercise of SARs. Subject to the provisions of the Agreement, upon the exercise of a SAR, the Participant is
entitled to receive, without any payment to the Company therefor (except for applicable tax withholding), an amount (the “SAR Value”)
equal to the product of multiplying (i) the number of Shares with respect to which the SAR is exercised by (ii) an amount equal to the
excess of (A) the Fair Market Value per Share on the date of exercise of the SAR over (B) the SAR Exercise Price.

 

Payment of the SAR Value
to the Participant shall be made at the time of exercise in Shares, in cash or in a combination thereof as determined by the
Committee. To the extent payment of the SAR Value to the Participant is made in Shares, such Shares shall be valued at the Fair
Market Value on the date of exercise. The Committee may specify in a SAR Agreement that the Shares which are delivered upon payment
of the SAR Value in connection with exercise of a SAR may be Restricted Stock pursuant to Article VIII and subject to such further
restrictions and vesting as provided in the SAR Agreement. To the extent payment of the SAR Value is made, in whole or in part, in
Shares, the Company shall cause the appropriate number of Shares to be issued in the Participant’s name, which issuance shall
be effected, in the Committee’s discretion, either in book entry or electronic form or by delivery of stock certificates.

 

7.6              
Restrictions on Stock Transferability. The Committee may impose such restrictions on any Shares delivered to a Participant
pursuant to the exercise of a SAR under the Plan as it may deem advisable, including, without limitation, restrictions under applicable
securities laws. The Committee may specify in an Agreement that Stock delivered upon payment of the SAR Value in connection with exercise
of a SAR is Restricted Stock pursuant to Article VIII or Stock subject to a buyback right by the Company in the event the Participant
does not complete a specified service period after exercise, or is otherwise subject to further restrictions. The Committee shall legend
the certificates representing such Shares to give appropriate notice of such restrictions or shall otherwise denote the Shares as being
subject to such restrictions, if issued in book entry or electronic form.

 

7.7              
Shareholder Rights. A Participant holding SARs shall have no right to vote the underlying Shares, no right to receive dividends
on the underlying Shares, and no other rights as a shareholder until after the exercise of the SARs and the issuance of the underlying
Shares. In no event shall any SAR granted under the Plan include any right to dividend equivalents with respect to such SAR or the underlying
Shares.

 

ARTICLE
VIII

Restricted Stock

 

8.1              
Grant of Restricted Stock. Subject to the terms and provisions of the Plan, Restricted Stock may be granted to such Key
Employees and Non-Employee Directors at any time and from time to time as shall be determined by the Committee. Unless otherwise provided
in the applicable Agreement, Participants receiving Restricted Stock Awards are not required to pay the Company therefor (except for applicable
tax withholding) other than the rendering of services. As determined by the Committee, Shares of Restricted Stock may be issued in book
entry or electronic form or in certificated form. Unless otherwise determined by the Committee, custody of Shares of Restricted Stock
in certificated form shall be retained by the Company or held in escrow by an escrow agent selected, and subject to change from time to
time, by the Committee until the termination of the Period of Restriction pertaining thereto.

 

    - 12 - 

     

    

 

8.2              
Restricted Stock Agreement. Each Restricted Stock Award shall be evidenced by an Agreement that shall specify the Period
of Restriction, the number of Shares of Restricted Stock granted, the applicable restrictions (whether service-based restrictions, with
or without performance acceleration, and/or performance-based restrictions), any applicable Performance Goal(s) and Performance Period,
and such other provisions as the Committee shall determine consistent with the Plan.

 

8.3              
Restrictions on Transferability. Except as provided in this Article VIII and subject to the limitation in the next sentence,
the Shares of Restricted Stock granted hereunder may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated
until the termination of the applicable Period of Restriction or upon earlier satisfaction of other conditions as specified by the Committee
in its discretion and set forth in the Agreement. All rights with respect to the Restricted Stock granted to a Participant under the Plan
shall be exercisable during his lifetime only by such Participant or his guardian or legal representative, provided that the Committee
may permit, its discretion, transfers of Shares of Restricted Stock during the lifetime of the Participant pursuant to a domestic relations
order. Consideration may not be paid for the transfer of Shares of Restricted Stock.

 

8.4              
 Other Restrictions. The Committee may, in its discretion, impose or notify Participants of other restrictions as it may
deem advisable, including, without limitation, restrictions under applicable securities laws, and shall legend the certificates representing
Restricted Stock to give appropriate notice of such restrictions or shall otherwise denote the Restricted Stock as restricted, if issued
in book entry or electronic form.

 

8.5              
Certificate Legend or Book Entry Notation. In addition to any other legends placed on certificates, or to which Shares of
Restricted Stock issued in book entry or electronic form are made subject, pursuant to Section 8.4, any certificates representing Restricted
Stock shall bear, and any Award of Restricted Stock issued in book entry or electronic form shall be subject to, a legend referencing
the restrictions on such Stock, substantially in the form of the following legend:

 

The
sale or other transfer of the shares of stock represented by this certificate, whether voluntary, involuntary, or by operation of law,
is subject to certain restrictions on transfer set forth in the Partners Bancorp 2021 Incentive Stock Plan, in the rules and administrative
procedures adopted pursuant to such Plan, and in a restricted stock agreement dated <<date of grant>>. A copy of the Plan,
such rules and procedures, and such restricted stock agreement may be obtained from the Secretary of Partners Bancorp.

 

8.6              
Removal of Restrictions. Except as otherwise provided in the Plan, the Agreement, or applicable law or regulation, Shares
of Restricted Stock covered by each Restricted Stock Award granted under the Plan shall become freely transferable by the Participant
after the last day of the Period of Restriction and, where applicable, after a determination of the satisfaction or achievement of any
applicable Performance Goal(s) by the Committee. Once the Shares are released from the restrictions, delivery of the Shares shall be effected,
in the Committee’s discretion, either in book entry or electronic form or by delivery of stock certificates, and the Participant
shall be entitled to have the legend required by Section 8.5 removed from his stock certificate or similar notation removed from such
Shares if issued in book entry or electronic form.

 

    - 13 - 

     

    

 

 

8.7               Voting
Rights. Unless otherwise provided in the Agreement, during the Period of Restriction, Participants holding Shares of Restricted Stock
granted hereunder may exercise full voting rights with respect to those Shares.

 

8.8               Dividends
and Other Distributions. During the Period of Restriction, unless otherwise provided in the applicable Agreement and except with
respect to Restricted Stock subject to one or more Performance Goals, recipients of Shares of Restricted Stock shall be entitled to receive
all dividends and other distributions paid with respect to those Shares. Unless otherwise provided in the applicable Agreement, with
respect to Restricted Stock subject to one or more Performance Goals, during the Period of Restriction, dividends on such shares may
be accumulated but not paid to the recipient unless and until the applicable Performance Goal(s) have been met (subject to any delay
in payment required by Section 409A of the Code, if applicable). If any such dividends or distributions are paid in Shares, such Shares
shall be subject to the same restrictions on transferability as the Shares of Restricted Stock with respect to which they were paid.

 

ARTICLE
IX

Restricted Stock Units

 

9.1               Grant
of Restricted Stock Units. Subject to the terms and provisions of the Plan, Restricted Stock Units may be granted to such Key Employees
and Non-Employee Directors at any time and from time to time as shall be determined by the Committee (with one Restricted Stock Unit
representing the right to one Share). Participants receiving Restricted Stock Unit Awards are not required to pay the Company therefor
(except for applicable tax withholding) other than the rendering of services. The Committee is expressly authorized to grant Restricted
Stock Units that are deferred compensation covered by Section 409A of the Code, as well as Restricted Stock Units that are not deferred
compensation covered by Section 409A of the Code.

 

9.2               Restricted
Stock Unit Agreement. Each Restricted Stock Unit Award shall be evidenced by an Agreement that shall specify the Period of Restriction,
the number of Restricted Stock Units granted, the applicable restrictions (whether service-based restrictions, with or without performance
acceleration, and/or performance-based restrictions), any applicable Performance Goal(s) and Performance Period, and such other provisions
as the Committee shall determine consistent with the Plan.

 

9.3               Voting
Rights; Dividends and Other Distributions. Participants holding Restricted Stock Units shall have no right to vote the Shares represented
by such Restricted Stock Units unless and until the underlying Shares are issued to the Participant. Participants holding Restricted
Stock Units shall have no rights to dividend equivalents with respect to such Restricted Stock Units unless the Committee provides otherwise
in the Agreement. The Committee may provide in the Agreement for dividend equivalents with respect to Restricted Stock Units, provided
that any such dividend equivalents with respect to Restricted Stock Units may be accumulated but not paid unless and until the Period
of Restriction applicable to the Restricted Stock Units has ended and any applicable Performance Goal(s) have been met (subject to any
delay in payment required by Section 409A of the Code, if applicable).

 

9.4              
Payment after Lapse of Restrictions. Subject to the provisions of the Agreement, upon the lapse of restrictions with respect
to a Restricted Stock Unit, the Participant is entitled to receive, without any payment to the Company therefor (except for applicable
tax withholding), an amount (the “RSU Value”) equal to the product of multiplying (A) the number of Shares equal to the number
of Restricted Stock Units with respect to which the restrictions lapse by (B) the Fair Market Value per Share on the date the restrictions
lapse.

 

    - 14 -

     

    

 

The Agreement may provide
for payment of the RSU Value at the time of the lapse of restrictions or, in accordance with Section 409A of the Code, if applicable,
on an elective or non-elective basis, for payment of the RSU Value at a later date, adjusted (if so provided in the Agreement) from
the date of the lapse of restrictions based on an interest, dividend equivalent, earnings, or other basis (including deemed investment
of the RSU Value in Shares) set out in the Agreement (the “adjusted RSU Value”).

 

Payment of the RSU Value or
adjusted RSU Value to the Participant shall be made in Shares, in cash or a combination thereof as determined by the Committee, either
at the time of the Award or thereafter, and as provided in the Agreement. To the extent payment of the RSU Value or adjusted RSU Value
to the Participant is made in cash, such payment shall be based on the Fair Market Value on the date or dates the restrictions on the
Award lapse in the case of an immediate payment after vesting, or at the Fair Market Value on the date of settlement in the event of an
elective or non-elective delayed payment. To the extent payment of the RSU Value or adjusted RSU Value to the Participant is made
in Shares, such Shares shall be valued at the Fair Market Value on the date the restrictions therefor lapse in the case of an immediate
payment or at the Fair Market Value on the date of settlement in the event of an elective or non-elective delayed payment. The Committee
may specify in a Restricted Stock Unit Agreement that the Shares which are delivered upon payment of the RSU Value or adjusted RSU Value
may be Restricted Stock pursuant to Article VIII and subject to such further restrictions and vesting as provided in the Restricted Stock
Unit Agreement. To the extent payment of the RSU Value or adjusted RSU Value is made, in whole or in part, in Shares, the Company shall
cause the appropriate number of Shares to be issued in the Participant’s name, which issuance shall be effected, in the Committee’s
discretion, either in book entry or electronic form or by delivery of stock certificates.

 

9.5              
Restrictions on Stock Transferability. The Committee may impose such restrictions on any Shares delivered to a Participant
in settlement of a Restricted Stock Unit under the Plan as it may deem advisable, including, without limitation, restrictions under applicable
securities laws. The Committee may specify in an Agreement that Stock delivered upon payment of the RSU Value or adjusted RSU Value in
settlement of a Restricted Stock Unit is Restricted Stock pursuant to Article VIII or Stock subject to a buyback right by the Company
in the event the Participant does not complete a specified service period after settlement, or is otherwise subject to further restrictions.
The Committee shall legend the certificates representing such Shares to give appropriate notice of such restrictions or shall otherwise
denote the Shares as being subject to such restrictions, if issued in book entry or electronic form.

 

ARTICLE
X

Stock Awards

 

Subject to the terms and provisions
of the Plan, the Committee, at any time and from time to time, may grant unrestricted Stock Awards under the Plan to such Key Employees
and Non-Employee Directors and in such amount or amounts as it shall determine, provided, however, that no Non-Employee Director may
be granted Stock Awards in any calendar year for more than 15,000 Shares. Participants receiving Stock Awards are not required to pay
the Company therefor (except for applicable tax withholding) other than the rendering of services. Unless otherwise provided in the applicable
Agreement, Stock Awards shall be fully vested and freely transferable as of the Award Date, subject to restrictions under applicable securities
laws. Payment of a Stock Award shall be effected as soon as practicable after the Award Date either in book entry or electronic form or
by delivery of stock certificates, as the Committee determines in its discretion.

 

    - 15 -

     

    

 

ARTICLE
XI

Performance Units

 

11.1            
Grant of Performance Units. Subject to the terms and provisions of the Plan, Performance Units may be granted to such Key
Employees and Non-Employee Directors at any time and from time to time as shall be determined by the Committee. Participants receiving
Performance Unit Awards are not required to pay the Company therefor (except for applicable tax withholding) other than the rendering
of services. The Committee is expressly authorized to grant Performance Units that are deferred compensation covered by Section 409A of
the Code, as well as Performance Units that are not deferred compensation covered by Section 409A of the Code.

 

11.2             Performance
Unit Agreement.  Each Performance Unit is intended to be a Performance-Based Compensation Award, and the terms and conditions
of each such Award, including the number of Performance Units granted, the Performance Goal(s) and Performance Period, and such other
provisions as the Committee shall determine consistent with the Plan, shall be set forth in an Agreement or in a subplan of the Plan
that is incorporated by reference into an Agreement. The Committee shall set the Performance Goal(s) in its discretion for each Participant
who is granted a Performance Unit.

 

11.3             Voting
Rights; Dividends and Other Distributions. Participants holding Performance Units shall have no right to vote the Shares represented
by such Performance Units unless and until the underlying Shares are issued to the Participant. Participants holding Performance Units
shall have no rights to dividend equivalents with respect to such Performance Units unless the Committee provides otherwise in the Agreement.
The Committee may provide in the Agreement for payment of dividend equivalents with respect to each Performance Unit, provided that any
such dividend equivalents may be accumulated but not paid unless and until the applicable Performance Goal(s) have been met (subject
to any delay in payment required by Section 409A of the Code, if applicable).

 

11.4             Settlement
of Performance Units. After a Performance Period has ended, the holder of a Performance Unit shall be entitled to receive the value
thereof without any payment to the Company therefor (except for applicable tax withholding) based on the degree to which the Performance
Goal(s) and other conditions established by the Committee and set forth in the Agreement (or in a subplan of the Plan that is incorporated
by reference into an Agreement) have been satisfied. Payment of the amount to which a Participant shall be entitled upon the settlement
of a Performance Unit shall be made in Shares, in cash or a combination thereof as determined by the Committee. To the extent payment
is made, in whole or in part, in Shares, the Company shall cause the appropriate number of Shares to be issued in the Participant’s
name, which issuance shall be effected, in the Committee’s discretion, either in book entry or electronic form or by delivery of
stock certificates.

 

11.5             Restrictions
on Stock Transferability. The Committee may impose such restrictions on any Shares delivered to a Participant in settlement
of a Performance Unit under the Plan as it may deem advisable, including, without limitation, restrictions under applicable securities
laws. The Committee may specify in an Agreement that Stock delivered in settlement of a Performance Unit is Restricted Stock pursuant
to Article VIII or Stock subject to a buyback right by the Company in the event the Participant does not complete a specified service
period after settlement, or is otherwise subject to further restrictions. The Committee shall legend the certificates representing such
Shares to give appropriate notice of such restrictions or shall otherwise denote the Shares as being subject to such restrictions, if
issued in book entry or electronic form.

 

    - 16 -

     

    

 

ARTICLE
XII

Termination of Employment or Service

 

12.1             Termination
of Employment or Service. Unless otherwise provided in the Agreement pertaining to an Award, in the event that a Participant terminates
his employment or service with the Company and its Subsidiaries for any reason, the unvested portion of such Award shall automatically
be forfeited to the Company. Unless otherwise provided in the Agreement pertaining to an Award or as may be required by applicable law,
in determining cessation of employment or service, transfers between the Company and/or any Subsidiary shall be disregarded, and changes
in status between that of an Employee and a Non-Employee Director shall be disregarded. The Committee may provide in the Agreement
pertaining to the Award for vesting of the Award in connection with the termination of a Participant’s employment or service on
such basis as it deems appropriate, including, without limitation, any provisions for vesting at death, Disability, retirement, or in
connection with a Change of Control with or without the further consent of the Committee. The Agreements evidencing Awards may contain
such provisions as the Committee may approve with reference to the effect of approved leaves of absence.

 

12.2             Forfeiture
Provisions. The Committee may impose such forfeiture provisions with respect to any Shares attributable to an Award under
the Plan as it may deem advisable and it may provide in the Agreement pertaining to the Award.

 

ARTICLE
XIII

Change of Control

 

In
the event of a Change of Control of the Company, the Committee, as constituted before such Change of Control,
in its discretion and without the consent of the Participant, may, as to any outstanding Award, either at the time the Award is made
or any time thereafter, take such actions as the Committee deems appropriate. These actions may include, but shall not be limited
to, any one or more of the following actions: (a) provide for acceleration of the vesting, delivery and exercisability of, and the
lapse of time-based and/or performance-based vesting restrictions with respect to, any such Award so that such Award may be
exercised or realized in full on or before a date initially fixed by the Committee; (b) provide for the purchase, settlement or
cancellation of any such Award by the Company, for an amount of cash equal to the amount which could have been obtained upon the
exercise of such Award or realization of such Participant’s rights had such Award been currently exercisable or payable; (c)
provide for the replacement of any such Stock-settled Award with a cash-settled Award; (d) make such adjustment to any such Award
then outstanding as the Committee deems appropriate to reflect such Change of Control and to retain the economic value of the Award;
or (e) cause any such Award then outstanding to be assumed, or new rights substituted therefor, by the acquiring or surviving
corporation in such Change of Control. Where an Award is subject to or falls under an exemption from Section 409A of the Code, this
Article XIII will be applied in a manner so as to comply with Section 409A of the Code or to maintain the exemption from Section
409A of the Code, as applicable.

 

    - 17 -

     

    

 

ARTICLE
XIV

Change in Capital Structure

 

14.1             Effect
of Change in Capital Structure. In the event of a stock dividend, stock split, reverse stock split or combination of shares, spin-off,
recapitalization, merger in which the Company is the surviving corporation, consolidation, reorganization, reclassification, exchange
of shares or similar change in the Company’s capital stock (including, but not limited to, the creation or issuance to shareholders
generally of rights, options or warrants for the purchase of common stock or preferred stock of the Company) in which the number or class
of Shares is changed, the number and kind of Shares or securities of the Company to be issued under the Plan (under outstanding Awards
and Awards to be granted in the future), the Option Price of Options and/or SAR Exercise Price of SARs, the annual limits on and the aggregate
number and kind of Shares for which Awards thereafter may be made, and other relevant provisions shall be proportionately, equitably and
appropriately adjusted by the Committee, whose determination shall be binding on all persons. If the adjustment would produce fractional
shares with respect to any Award, the Committee may adjust appropriately the number of shares covered by the Award so as to eliminate
the fractional shares. Where an Award being adjusted is an ISO or is subject to or falls under an exemption from Section 409A of the Code,
the adjustment of any Option and/or SAR shall also be effected so as to comply with Section 424(a) of the Code and not to constitute a
modification within the meaning of Section 424(h) of the Code or Section 409A of the Code, as applicable.

 

14.2             Authority.
Notwithstanding any provision of the Plan to the contrary, the Committee may take the foregoing actions without the consent of any Participant,
and the Committee’s determination shall be conclusive and binding on all persons for all purposes.

 

14.3             Manner
of Adjustment. Adjustments made by the Committee pursuant to this Article XIV to outstanding Awards shall be made as appropriate to
maintain favorable tax and/or accounting treatment.

 

ARTICLE
XV

Amendment, Modification, and Substitution of Awards

 

15.1             Amendment,
Modification and Substitution. Subject to the terms and provisions and within the limitations of the Plan, the Committee may
amend or modify the terms of any outstanding Award or accelerate the vesting thereof. In addition, the Committee may cancel or
accept the surrender of outstanding Awards (to the extent not yet exercised or settled) granted under the Plan or outstanding awards
granted under any other equity compensation plan of the Company and authorize the granting of new Awards pursuant to the Plan in
substitution therefor so long as the new or substituted awards do not specify a lower exercise price than the cancelled or
surrendered Awards or awards, and otherwise the new Awards may be of a different type than the cancelled or surrendered Awards or
awards, may specify a longer term than the cancelled or surrendered Awards or awards, may provide for more rapid vesting and
exercisability than the cancelled or surrendered Awards or awards, and may contain any other provisions that are authorized by the
Plan. The Committee shall continue to have the authority to amend or modify the terms of any outstanding Award after May 18, 2031,
provided that no amendment or modification will extend the original term of the Award beyond that set forth in the applicable Award
Agreement. Notwithstanding the foregoing, however, but subject to Article XIII and Article XIV, no amendment or modification of an
Award, shall, without the consent of the Participant, adversely affect the rights or obligations of the Participant. Notwithstanding
any provision of the Plan to the contrary, the Committee shall not amend, modify, or substitute an Award in a manner that violates
Section 409A of the Code, or causes an Award that previously qualified for an exemption from Section 409A of the Code to become
subject to Section 409A of the Code, and the Committee shall not amend, modify, or substitute an Award that satisfies the
requirements of Rule 16b-3 in a manner that causes any exemption pursuant to Rule 16b-3 to become no longer available.

 

15.2             Option
and SAR Repricing. Notwithstanding any provision of the Plan to the contrary, neither the Committee nor the Board shall have the right
or authority, without obtaining shareholder approval, to amend or modify the Option Price of any outstanding Option or the SAR Exercise
Price of any outstanding SAR, or to cancel an outstanding Option or SAR, at a time when the Option Price or SAR Exercise Price, as applicable,
is greater than the Fair Market Value of a Share in exchange for cash, another Award, or other securities, except in connection with a
corporate transaction involving the Company in accordance with Article XIII or Article XIV.

 

    - 18 -

     

    

 

ARTICLE
XVI

Amendment, Modification and Termination of the Plan

 

16.1             Amendment,
Modification and Termination. At any time and from time to time, the Board may amend, modify or terminate the Plan. Such amendment
or modification may be without shareholder approval except to the extent that such approval is required by the Code, pursuant to the
rules under Section 16 of the Exchange Act, by any national securities exchange or quotation system on which the Stock is then listed
or reported, by any regulatory body having jurisdiction with respect thereto or under any other applicable laws, rules or regulations.

 

16.2             Awards
Previously Granted. No amendment, modification or termination of the Plan other than pursuant to Section 3.3, Article XIII or Article
XIV or Section 17.6 shall in any manner adversely affect any Award theretofore granted under the Plan, without the written consent of
the Participant.

 

ARTICLE
XVII

General

 

17.1             Applicable
Withholding Taxes. Each Participant shall agree, as a condition of receiving an Award, to pay to the Company, or make
arrangements satisfactory to the Company regarding the payment of, all applicable federal, state and local taxes (including the
Participant’s FICA obligation) required by law to be withheld with respect to any grant, exercise, issuance, settlement or
payment made under or as a result of the Plan. The Company shall withhold only the minimum amount necessary to satisfy applicable
statutory withholding requirements, provided that the Committee may permit a Participant to elect to have an additional amount (up
to the maximum allowed by law) withheld. Until the applicable withholding taxes have been paid or arrangements satisfactory to the
Company have been made, no stock certificates (or, in the case of Restricted Stock, no stock certificates free of a restrictive
legend) shall be issued to the Participant and no issuance in book entry or electronic form (or, in the case of Restricted Stock, no
issuance in book entry or electronic form free of a restrictive legend or notation) shall be made for the Participant. As an
alternative to making a cash payment to the Company to satisfy applicable withholding tax obligations, the Committee may permit
Participants to elect or the Committee may require Participants to satisfy the withholding requirement, in whole or in part, by
having the Company withhold Shares of Stock having a Fair Market Value equal to the amount required to be withheld, or by delivering
to the Company Shares of Stock that the Participant has previously acquired and owned having a Fair Market Value equal to the amount
required to be withheld. The value of any Shares so withheld or delivered shall be based on the Fair Market Value of the Shares on
the date that the amount of tax to be withheld is to be determined. All elections by Participants shall be irrevocable and be made
in writing and in such manner as determined by the Committee (or its delegee) in advance of the day that the transaction becomes
taxable.

 

17.2             Successors.
All obligations of the Company under the Plan, with respect to Awards granted hereunder, shall be binding on any successor to the Company,
whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation or otherwise, of all or
substantially all of the business and/or assets of the Company.

 

17.3             Requirements
of Law. The granting of Awards, the issuance of Shares of Stock and all obligations of the Company under the Plan shall be subject
to all applicable laws, rules, and regulations (including, without limitation, the requirements of the Securities Act), and to such approvals
by any governmental agencies or self regulatory organizations as may be required.

 

    - 19 -

     

    

 

17.4             Effect
of Plan. The establishment of the Plan shall not confer upon any Key Employee or Non-Employee Director any legal or equitable right
against the Company, a Subsidiary or the Committee, except as expressly provided in the Plan. The Plan does not constitute an inducement
or consideration for the employment or service of any Key Employee or Non-Employee Director, nor is it a contract between the Company
or any of its Subsidiaries and any Key Employee or Non-Employee Director. Participation in the Plan shall not give any Key Employee or
Non-Employee Director any right to be engaged or retained in the employment or service of the Company or any of its Subsidiaries. Except
as otherwise expressly provided in the Plan or in an Agreement, no Key Employee or Non-Employee Director who receives an Award shall
have rights as a shareholder of the Company prior to the date Shares are issued to him pursuant to the Plan.

 

17.5             Creditors.
The interests of any Participant under the Plan or any Agreement are not subject to the claims of creditors and may not, in any way,
be assigned, alienated or encumbered.

 

17.6             Governing
Law. The Plan, and all Agreements hereunder, shall be deemed to be governed, construed and administered in accordance with the laws
of the State of Maryland applicable to contracts made and to be performed solely in the State of Maryland. Any dispute under the Plan,
or under any Agreement hereunder, shall be adjudicated solely and exclusively in the courts of the State of Maryland located in Wicomico
County, Maryland, and the Federal Court for the District in which such state court is located, and no other Court shall have jurisdiction
of the Plan, any Agreement issued under the Plan, any Award issued under the Plan, or any dispute hereunder. It is the intention of the
Company that ISOs granted under the Plan qualify as such under Section 422 of the Code. If any provision of the Plan or an Award
conflicts with any provision of the Code, the Committee shall cause the Plan to be amended, and shall modify the Award, so as to comply,
or if for any reason amendments cannot be made, that provision of the Plan or the Award shall be void and of no effect.

 

17.7             Securities
Law Restrictions.  The Committee may require each Participant purchasing or acquiring Shares pursuant to an Option
or other Award to represent to and agree with the Company in writing that such Participant is acquiring the Shares for investment and
not with a view to the distribution thereof and that he will make no transfer of the same except in compliance with any rules and regulations
in effect at the time of transfer under the Securities Act or any other applicable securities law.  All Shares delivered under the
Plan shall be subject to such stock-transfer orders and other restrictions as the Committee may deem advisable under applicable rules,
regulations, and other requirements of the Securities and Exchange Commission, any national securities exchange or system on which the
Stock is then listed or reported, and any applicable federal or state securities laws, and the Committee may cause a legend or legends
to be put on any such certificates to make appropriate reference to such restrictions or otherwise denote the Shares as being subject
to such restrictions, if issued in book entry or electronic form. No Shares shall be issued hereunder unless the Company shall have determined
that such issuance is in compliance with, or pursuant to an exemption from, all applicable federal and state securities laws.

 

17.8             Severability.
In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect
the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

 

17.9             Unfunded
Status of Plan. The Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation. With respect
to any payments as to which a Participant has a fixed and vested interest but which are not yet made to a Participant by the Company,
nothing contained herein shall give any such Participant any rights that are greater than those of a general unsecured creditor of the
Company.

 

    - 20 -

     

    

 

17.10           Share
Certificates and Book Entry. To the extent that the Plan provides for issuance of stock certificates to represent shares of Stock,
the issuance may be effected on a non-certificated basis to the extent permitted by applicable law and the applicable rules of any national
securities exchange or system on which the Stock is then listed or reported. Notwithstanding any provision of the Plan to the contrary,
in its discretion the Committee may satisfy any obligation to deliver Shares represented by stock certificates by delivering Shares in
book entry or electronic form. If the Company issues any Shares in book entry or electronic form that are subject to terms, conditions
and restrictions on transfer, a notation shall be made in the records of the transfer agent with respect to any such Shares describing
all applicable terms, conditions and restrictions on transfer. In the case of Restricted Stock granted under the Plan, such notation
shall be substantially in the form of the legend contained in Section 8.5.

 

17.11           Transferability.
Unless the Agreement evidencing an Award (or an amendment thereto authorized by the Committee) expressly states that it is transferable
as provided in this section, no Award granted under the Plan, nor any interest in such Award or right to receive payment in connection
therewith, may be sold, assigned, conveyed, gifted, pledged, hypothecated or otherwise transferred or alienated in any manner, other
than upon the death of the Participant in accordance with Section 17.12, prior to the vesting or lapse of any and all restrictions applicable
to an Award or any Shares issued under an Award. The Committee may in its discretion grant an Award (other than an ISO) or amend an outstanding
Award (other than an ISO) to provide that the Award is transferable or assignable to a member or members of the Participant’s “immediate
family,” as such term is defined under Exchange Act Rule 16a-l(e), or to a trust for the benefit solely of a member or members
of the Participant’s immediate family, or to a partnership or other entity whose only owners are members of the Participant’s
immediate family or pursuant to a domestic relations order, provided that following any such transfer or assignment the Award will remain
subject to substantially the same terms applicable to the Award while held by the Participant, as modified as the Committee in its discretion
shall determine appropriate, and the Participant shall execute an agreement agreeing to be bound by such terms. Any such transfer or
assignment supersedes any Beneficiary designation made under Section 17.12 with respect to the transferred Award. No transfer of an Award
or of any right or interest in an Award may be made for consideration.

 

17.12           Beneficiary
Designations. A Participant may designate a Beneficiary to receive any Options or SARs that may be exercised after his death or
to receive any other Award that may be paid after his death, as provided for in the Agreement. Such designation and any change or
revocation of such designation shall be made in writing in the form and manner prescribed by the Committee (or its delegee). In the
event that the designated Beneficiary dies prior to the Participant, or in the event that no Beneficiary has been designated, any
Awards that may be exercised or paid following the Participant’s death shall be transferred or paid in accordance with the
Participant’s will or the laws of descent and distribution. If the Participant and his Beneficiary shall die in circumstances
that cause the Committee (or its delegee), in its discretion, to be uncertain which shall have been the first to die, the
Participant shall be deemed to have survived the Beneficiary.

 

17.13           Electronic
Transmissions and Records. Subject to limitations under applicable law, the Committee (and its delegee) is authorized in its discretion
to issue Awards and/or to deliver and accept notices, elections, consents, designations and/or other forms or communications to or from
Participants by electronic or similar means, including, without limitation, transmissions through e-mail or specialized software,
recorded messages on electronic telephone systems, and other permissible methods, on such basis and for such purposes as it determines
from time to time, and all such communications will be deemed to be “written” for purposes of the Plan.

 

    - 21 -

     

    

 

17.14           Banking
Regulatory Provision. All Awards under the Plan are subject to a direction by the Company’s primary federal banking regulator
which requires Participants to exercise or forfeit the stock rights contained in their Awards if the Company’s capital falls below
the minimum requirements, as determined by the Company’s state or primary federal banking regulator. In addition, all Awards shall
be subject to any other conditions, limitations and prohibitions under any other financial institution regulatory policy or rule to which
the Company is subject.

 

17.15           Clawback.
All Awards granted under the Plan (whether vested or unvested) shall be subject to such recovery or clawback as may be required pursuant
to the terms of any repayment, clawback or similar policy of the Company as such may be in effect from time to time or any applicable
federal or other law or regulation or any applicable listing standard of any national securities exchange or system on which the Stock
is then listed or reported, which could in certain circumstances require repayment or forfeiture of Awards or any Shares or other cash
or property received with respect to the Awards (including any value received from a disposition of the Shares acquired upon payment
of the Awards).

 

ARTICLE
XVIII

Omnibus Code Section 409A Provision

 

18.1             Intent
of Awards. It is intended that Awards that are granted under the Plan shall be exempt from treatment as “deferred compensation”
subject to Section 409A of the Code unless otherwise specified by the Committee.  Towards that end, all Awards under the Plan are
intended to contain such terms as will qualify the Awards for an exemption from Section 409A of the Code unless otherwise specified by
the Committee.  The terms of the Plan and all Awards granted hereunder shall be construed consistent with the foregoing intent. 
To the extent required for an Award to comply with Section 409A of the Code or for an Option to be an exempt stock right under Section
409A, a defined term in the Plan shall be applied and interpreted (and to the extent required, deemed narrowed) to comply with the requirements
under, or exemption from, Section 409A of the Code and applicable guidance thereunder. Notwithstanding any provision of the Plan to the
contrary, the Committee may amend any outstanding Award without the Participant’s consent if, as determined by the Committee, in
its discretion, such amendment is required either to (a) confirm exemption under Section 409A of the Code, (b) comply with Section 409A
of the Code or (c) prevent the Participant from being subject to any tax or penalty under Section 409A of the Code.  Notwithstanding
the foregoing, however, neither the Company nor any of its Affiliates nor the Committee shall be liable to the Participant or any other
person or entity if an Award that is subject to Section 409A of the Code or the Participant or any other person or entity is otherwise
subject to any additional tax, interest or penalty under Section 409A of the Code.  Each Participant is solely responsible for the
payment of any tax liability (including any taxes, penalties and interest that may arise under Section 409A of the Code) that may result
from an Award.

 

18.2             409A
Awards. The Committee may grant an Award under the Plan that is subject to Section 409A of the Code and is intended to comply with
Section 409A of the Code (a “409A Award”).  The terms of such 409A Award, including any authority by the Company and
the rights of the Participant with respect to such 409A Award, will be subject to such rules and limitations and shall be interpreted
in a manner as to comply with Section 409A of the Code.

 

    - 22 -

     

    

 

18.3             Time
of Payment. The time and form of payment of a 409A Award, including application of a six-month delay for specified employees in certain
circumstances, shall be as set forth in the applicable Agreement.  A 409A Award may only be paid in connection with a separation
from service, a fixed time, death, Disability, a Change of Control or an unforeseeable emergency within the meaning of Section 409A of
the Code.  The time of distribution of the 409A Award must be fixed by reference to the specified payment event.  Notwithstanding
the foregoing, if the time of distribution of the 409A Award is not set forth in the applicable Agreement, then the time of distribution
of the 409A Award shall be within two and one-half (21⁄2) months of the end of the later of the calendar year or the fiscal year
of the Company or Affiliate that employs the Participant in which the 409A Award becomes vested and no longer subject to a substantial
risk of forfeiture within the meaning of Section 409A of the Code.  For purposes of Section 409A of the Code, each installment payment
will be treated as the entitlement to a single payment. 

 

18.4             Acceleration
or Deferral. The Company shall have no authority to accelerate or delay or change the form of any distributions relating to 409A
Awards except as permitted under Section 409A of the Code.

 

18.5             Distribution
Requirements. Any distribution of a 409A Award triggered by a Participant’s termination of employment shall be made only at
the time that the Participant has had a separation from service within the meaning of Section 409A of the Code.  A separation from
service shall occur where it is reasonably anticipated that no further services will be performed after that date or that the level of
bona fide services the Participant will perform after that date (whether as an employee or independent contractor of the Company or an
Affiliate) will permanently decrease to less than twenty percent (20%) of the average level of bona fide services performed over the
immediately preceding thirty-six (36) month period.  Continued services solely as a director of the Company or an Affiliate shall
not prevent a separation from service from occurring by an employee as permitted by Section 409A of the Code.

 

18.6             Scope
and Application of this Provision. For purposes of this Article XVIII, references to a term or event (including any authority or
right of the Company or a Participant) being “permitted” under Section 409A of the Code means that the term or event will
not cause the Participant to be deemed to be in constructive receipt of compensation relating to the 409A Award prior to the distribution
of cash, Shares or other property or to be liable for payment of interest or a tax penalty under Section 409A of the Code. 

 

    - 23 -Document

Exhibit 10.1

EXECUTION VERSION

RECEIVABLES FINANCING AGREEMENT AMENDMENT NO. 9

This Receivables Financing Agreement Amendment No. 9 (this “Amendment”), dated as of May 18, 2021, among DAVEY RECEIVABLES LLC, an Ohio limited liability company, as Borrower (together with its successors and assigns, the “Borrower”); THE DAVEY TREE EXPERT COMPANY, an Ohio corporation, in its individual capacity (“Davey Tree”) and as Servicer (in such capacity, together with its successors and assigns in such capacity, the “Servicer”); PNC BANK, NATIONAL ASSOCIATION, as LC Bank (in such capacity, together with its successors and assigns in such capacity, the “LC Bank”); and PNC BANK, NATIONAL ASSOCIATION (“PNC”), as Administrative Agent (in such capacity together with its successors and assigns in such capacity, the “Administrative Agent”).

W I T N E S S E T H:

WHEREAS, the Borrower, the Servicer, the LC Bank, and the Administrative Agent are party to that certain Receivables Financing Agreement dated as of May 9, 2016 (as amended prior to the date hereof, the “Financing Agreement”).

WHEREAS, the Borrower, the Servicer, the LC Bank, and the Administrative Agent hereby agree to extend the Scheduled Termination Date and to make certain amendments to the Financing Agreement pursuant to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration, receipt and sufficiency of which are hereby acknowledged by the parties, the Borrower, the Servicer, the LC Bank, and the Administrative Agent hereto agree as follows:

SECTION 1. DEFINITIONS. Capitalized terms not otherwise defined herein shall have the meanings given to them in the Financing Agreement.

SECTION 2.    AMENDMENTS.

(a)    Section 1.01 of the Financing Agreement is hereby amended by amending and restating the defined term “Scheduled Termination Date” to read as follows:

“Scheduled Termination Date” means June 30, 2022.

(b)    Section 3.12 of the Financing Agreement is hereby amended and restated in its entirety and as so amended and restated shall read as follows:

RFA Amendment No. 9 (Davey Tree) 4828-8018-9158 v5.docx
4200200

Section 3.12 LIBOR Notification. Section 5.06 of this Agreement provides a mechanism for determining an alternative rate of interest in the event that the London interbank offered rate is no longer available or in certain other circumstances. The Administrative Agent does not warrant or accept any responsibility for and shall not have any liability with respect to, the administration, submission or any other matter related to the London interbank offered rate or other rates in the definition of "LMIR" or with respect to any alternative or successor rate thereto, or replacement rate therefor.

(e)    Section 5.06 to the Financing Agreement is hereby amended and restated in its entirety and as so amended and restated shall read as follows:

Section 5.06. Successor LMIR

(a)    Benchmark Replacement. Notwithstanding anything to the contrary herein or in any other Transaction Document, if a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then (x) if a Benchmark Replacement is determined in accordance with clause (1) or (2) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Transaction Document in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, this Agreement or any other Transaction Document and (y) if a Benchmark Replacement is determined in accordance with clause (3) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Transaction Document in respect of any Benchmark setting at or after 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is provided to the LC Bank without any amendment to, or further action or consent of any other party to, this Agreement or any other Transaction Document so long as the Administrative Agent has not received, by such time, written notice of objection to such Benchmark Replacement from the LC Bank.

(b)    Benchmark Replacement Conforming Changes. In connection with the implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other 
2

Transaction Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Transaction Document.

(c)    Notices; Standards for Decisions and Determinations. The Administrative Agent will promptly notify the Borrower and the LC Bank of (i) any occurrence of a Benchmark Transition Event , a Term SOFR Transition Event or an Early Opt- in Election, as applicable, and its related Benchmark Replacement Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes, (iv) the removal or reinstatement of any tenor of a Benchmark pursuant to paragraph (d) below and (v) the commencement or conclusion of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Administrative Agent or, if applicable, the LC Bank pursuant to this Section 5.06, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party to this Agreement or any other Transaction Document, except, in each case, as expressly required pursuant to this Section 5.06.

(d)    Unavailability of Tenor of Benchmark. Notwithstanding anything to the contrary herein or in any other Transaction Document, at any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then- current Benchmark is a term rate (including Term SOFR or USD LIBOR) and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion or (B) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is or will be no longer representative, then the Administrative Agent may modify the tenor for any Benchmark settings at or after such time to remove such unavailable or non- representative tenor and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is or will no longer be representative for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may modify the tenor for all Benchmark settings at or after such time to reinstate such previously removed tenor.
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(e)    Benchmark Unavailability Period. Upon the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke any request for an issuance of a Letter of Credit bearing interest based on USD LIBOR, conversion to or continuation of a Letter of Credit bearing interest based on USD LIBOR to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request into a request for a Letter of Credit of or conversion to Letters of Credit bearing interest under the Base Rate. During any Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of the Base Rate based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of the Base Rate.

(f)    Secondary Term SOFR Conversion. Notwithstanding anything to the contrary herein or in any other Transaction Document and subject to the proviso below in this paragraph, if a Term SOFR Transition Event and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then (i) the applicable Benchmark Replacement will replace the then-current Benchmark for all purposes hereunder or under any Transaction Document in respect of such Benchmark setting (the “Secondary Term SOFR Conversion Date”) and subsequent Benchmark settings, without any amendment to, or further action or consent of any other party to, this Agreement or any other Transaction Document; and (ii) Letters of Credit outstanding on the Secondary Term SOFR Conversion Date bearing interest based on the then- current Benchmark shall be deemed to have been converted to Loans bearing interest at the Benchmark Replacement with a tenor approximately the same length as the interest payment period of the then-current Benchmark; provided that, this paragraph (f) shall not be effective unless the Administrative Agent has delivered to the LC Bank and the Borrower a Term SOFR Notice.

(g)    Certain Defined Terms. As used in this Section 5.06:

“Available Tenor” means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (x) if the then current Benchmark is a term rate or is based on a term rate, any tenor for such Benchmark that is or may be used for determining the length of tenor of a Benchmark pursuant to this Agreement as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed pursuant to paragraph (d) of this Section 5.06, or (y) if the then current Benchmark is not a term rate nor based on a term rate, any payment 
4

period for interest calculated with reference to such Benchmark pursuant to this Agreement as of such date.

“Benchmark” means, initially, USD LIBOR; provided that if a Benchmark Transition Event a Term SOFR Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date have occurred with respect to USD LIBOR or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to paragraph (a) of this Section 5.06.

“Benchmark Replacement” means, for any Available Tenor, the first alternative set forth in the order below that can be determined by the Administrative Agent for the applicable Benchmark Replacement Date:

(1)    the sum of: (a) Term SOFR and (b) the related Benchmark Replacement Adjustment;

(2)    the sum of: (a) Daily Simple SOFR and (b) the related Benchmark Replacement Adjustment;

(3)    the sum of: (a) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower as the replacement for the then-current Benchmark for the applicable Corresponding Tenor giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement for the then-current Benchmark for U.S. dollar-denominated syndicated credit facilities at such time and (b) the related Benchmark Replacement Adjustment;

provided that, in the case of clause (1), such Unadjusted Benchmark Replacement is displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion; provided, further, that, with respect to a Term SOFR Transition Event, on the applicable Benchmark Replacement Date, the “Benchmark Replacement” shall revert to and shall be determined as set forth in clause (1) of this definition. If the Benchmark Replacement as determined pursuant to clause (1), (2) or (3) above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Transaction Documents.

“Benchmark Replacement Adjustment” means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark 
5

Replacement for any applicable Available Tenor for any setting of such Unadjusted Benchmark Replacement:

(1)    for purposes of clauses (1) and (2) of the definition of “Benchmark Replacement,” the first alternative set forth in the order below that can be determined by the Administrative Agent:

(a)    the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) as of the Reference Time such Benchmark Replacement is first set for such Available Tenor that has been selected or recommended by the Relevant Governmental Body for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for the applicable Corresponding Tenor;

(b)    the spread adjustment (which may be a positive or negative value or zero) as of the Reference Time such Benchmark Replacement is first set for such Available Tenor that would apply to the fallback rate for a derivative transaction referencing the ISDA Definitions to be effective upon an index cessation event with respect to such Benchmark for the applicable Corresponding Tenor; and

(2)    for purposes of clause (3) of the definition of “Benchmark Replacement,” the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower for the applicable Corresponding Tenor giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body on the applicable Benchmark Replacement Date or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for U.S. dollar- denominated syndicated credit facilities;

provided that, (x) in the case of clause (1) above, such adjustment is displayed on a screen or other information service that publishes such Benchmark Replacement Adjustment from time to time as selected by the Administrative Agent in its reasonable discretion and (y)    if the then-current Benchmark is a term rate, more than one tenor of such Benchmark is available as of the applicable Benchmark Replacement Date and the applicable Unadjusted Benchmark Replacement will not be a term rate, the Available Tenor of such Benchmark for purposes of this definition of 
6

“Benchmark Replacement Adjustment” shall be deemed to be the Available Tenor that has approximately the same length (disregarding business day adjustments) as the payment period for interest calculated with reference to such Unadjusted Benchmark Replacement.

“Benchmark Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Base Rate,” the definition of “Business Day,” timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational matters) that the Administrative Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of such Benchmark Replacement exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement and the other Transaction Documents).

“Benchmark Replacement Date” means the earliest to occur of the following events with respect to the then-current Benchmark:

(1)    in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof);

(2)    in the case of clause (3) of the definition of “Benchmark Transition Event,” the date determined by the Administrative Agent, which date shall promptly follow the date of the public statement or publication of information referenced therein;

(3)    in the case of a Term SOFR Transition Event, the date that is set forth in the Term SOFR Notice provided to the LC Bank and the Borrower pursuant to this Section titled “Benchmark Replacement Setting”, which date shall be at least 30 days from the date of the Term SOFR Notice; or

7

(4)    in the case of an Early Opt-in Election, the sixth (6th) Business Day after the date notice of such Early Opt-in Election is provided to the LC Bank, so long as the Administrative Agent has not received, by 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Early Opt-in Election is provided to the LC Bank, written notice of objection to such Early Opt-in Election from LC Bank.

For the avoidance of doubt, (i) if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination and (ii) the “Benchmark Replacement Date” will be deemed to have occurred in the case of clause (1) or (2) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

“Benchmark Transition Event” means the occurrence of one or more of the following events with respect to the then-current Benchmark:

(1)    a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);

(2)    a public statement or publication of information by a Governmental Authority having jurisdiction over the Administrative Agent, the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Federal Reserve Board, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or

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(3)    a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) or a Governmental Authority having jurisdiction over the Administrative Agent announcing that all Available Tenors of such Benchmark (or such component thereof) are no longer representative.

For the avoidance of doubt, a “Benchmark Transition Event” will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

“Benchmark Unavailability Period” means the period (if any) (x) beginning at the time that a Benchmark Replacement Date pursuant to clauses (1) or (2) of that definition has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Transaction Document in accordance with this Section 5.06 and (y) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Transaction Document in accordance with this Section 5.06
 
“Corresponding Tenor” with respect to any Available Tenor means, as applicable, either a tenor (including overnight) or an interest payment period having approximately the same length (disregarding business day adjustment) as such Available Tenor.

“Daily Simple SOFR” means, for any day, SOFR, with the conventions for this rate (which will include a lookback) being established by the Administrative Agent in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining “Daily Simple SOFR” for business loans; provided, that if the Administrative Agent decides that any such convention is not administratively feasible for the Administrative Agent, then the Administrative Agent may establish another convention in its reasonable discretion.

“Early Opt-in Election” means, if the then-current Benchmark is USD LIBOR, the occurrence of:

(1)    a notification by the Administrative Agent to (or the request by the Borrower to the Administrative Agent to notify) each of the other parties hereto that at least five currently outstanding U.S. dollar-denominated syndicated credit facilities at such time contain (as a result of amendment or as originally executed) a SOFR-based rate (including SOFR, 
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a term SOFR or any other rate based upon SOFR) as a benchmark rate (and such syndicated credit facilities are identified in such notice and are publicly available for review), and

(2)    the joint election by the Administrative Agent and the Borrower to trigger a fallback from USD LIBOR and the provision by the Administrative Agent of written notice of such election to the LC Bank.

“Floor” means the benchmark rate floor, if any, provided in this Agreement initially (as of the execution of this Agreement, the modification, amendment or renewal of this Agreement or otherwise) with respect to USD LIBOR or, if no floor is specified, zero.

“ISDA Definitions” means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time by the International Swaps and Derivatives Association, Inc. or such successor thereto. 
“Reference Time” with respect to any setting of the then-current Benchmark means (1) if such Benchmark is USD LIBOR, 11:00 a.m. (London time) on the day that is two London banking days preceding the date of such setting, and (2) if such Benchmark is not USD LIBOR, the time determined by the Administrative Agent in its reasonable discretion.

“Relevant Governmental Body” means the Federal Reserve Board or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board or the Federal Reserve Bank of New York, or any successor thereto.

“SOFR” means, with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR Administrator’s Website on the immediately succeeding Business Day.

“SOFR Administrator” means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

“SOFR Administrator’s Website” means the website of the Federal Reserve Bank of New York, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

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“Term SOFR” means, for the applicable Corresponding Tenor as of the applicable Reference Time, the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body.

“Term SOFR Notice” means a notification by the Administrative Agent to the LC Bank and the Borrower of the occurrence of a Term SOFR Transition Event.

“Term SOFR Transition Event” means the determination by the Administrative Agent that (a) Term SOFR has been recommended for use by the Relevant Governmental Body, and is determinable for each Available Tenor, (b) the administration of Term SOFR is administratively feasible for the Administrative Agent and (c) a Benchmark Transition Event has previously occurred resulting in a Benchmark Replacement in accordance with Section titled “Benchmark Replacement Setting” that is not Term SOFR.
 
“Unadjusted Benchmark Replacement” means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

“USD LIBOR” means the London interbank offered rate for U.S. dollars.

SECTION 3.    REPRESENTATIONS OF THE BORROWER AND THE SERVICER. Each of the Borrower and the Servicer hereby represent and warrant to the parties hereto that as of the date hereof each of the representations and warranties contained in Article VII of the Financing Agreement and any other Transaction Documents to which it is a party are true and correct as of the date hereof and after giving effect to this Amendment (except to the extent that such representations and warranties expressly refer to an earlier date, in which case they are true and correct as of such earlier date).

SECTION 4. CONDITIONS PRECEDENT. This Amendment shall become effective and be deemed effective as of the date first written above upon the satisfaction of the following conditions precedent:

(a)    the Administrative Agent shall have received a fully executed counterpart of this Amendment;

(b)    the Administrative Agent shall have received a fully executed counterpart of that certain Second Amended and Restated Fee Letter dated as of the date hereof, and all fees due thereunder;

(c)    each representation and warranty of the Borrower and the Servicer contained herein or in any other Transaction Document (after giving effect to this Amendment) shall be 
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true and correct (except to the extent that such representations and warranties expressly refer to an earlier date, in which case they are true and correct as of such earlier date); and

(d)    no Unmatured Event of Default or Event of Default shall have occurred and be continuing.

SECTION 5. COUNTERPARTS. This Amendment may be executed by the parties in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.

SECTION 6. ELECTRONIC SIGNATURES. Each party agrees that this Amendment and any documents to be delivered in connection herewith may be electronically signed, and that any electronic signatures appearing on this Amendment and such other documents are the same as handwritten signatures for the purposes of validity, enforceability, and admissibility.

SECTION 7. SEVERABILITY. Any provision of this Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

SECTION 8. GOVERNING LAW AND JURISDICTION. The provisions of the Financing Agreement with respect to governing law, jurisdiction, and agent for service of process are incorporated in this Amendment by reference as if such provisions were set forth herein.

SECTION 9. MISCELLANEOUS. For the avoidance of doubt, this Amendment shall constitute a Transaction Document.

[Signatures appear on following page.]

 

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IN WITNESS WHEREOF, the parties hereto have each caused this Amendment to be duly executed by their respective duly authorized officers as of the day and year first above written.

															
	DAVEY RECEIVABLES LLC
					
	By:	/s/ Christopher J. Bast
		Name:	Christopher J. Bast
		Title:	Treasurer
					
					
	THE DAVEY TREE EXPERT COMPANY,
	as the Servicer
					
	By:	/s/ Christopher J. Bast
		Name:	Christopher J. Bast
		Title:	Vice President and Treasurer
					

Receivables Financing Agreement Amendment No. 9

															
	PNC BANK, NATIONAL ASSOCIATION,
		as Administrative Agent
					
	By:	/s/ Michael Brown
		Name:	Michael Brown
		Title:	Senior Vice President
					
					
	PNC BANK, NATIONAL ASSOCIATION,
		as LC Bank
					
	By:	/s/ Michael Brown
		Name:	Michael Brown
		Title:	Senior Vice President
					

Receivables Financing Agreement Amendment No. 9

EXECUTION VERSION

SECOND AMENDED AND RESTATED FEE LETTER

May 18, 2021

The Davey Tree Expert Company 
1500 North Mantua Street
Kent, Ohio 44240

Re:       Second Amended and Restated Fee Letter – Receivables Financing Agreement

Ladies and Gentlemen:

This Second Amended and Restated Fee Letter (as amended, restated, supplemented or otherwise modified from time to time, this “Fee Letter”) sets forth certain fees payable by Davey Receivables LLC (the “Borrower”), in connection with that certain Receivables Financing Agreement Amendment No. 8, dated as of the date hereof, among the Borrower, The Davey Tree Expert Company, as Servicer (the “Servicer”), PNC Bank, National Association (“PNC”), as LC Bank (in such capacity, the “LC Bank”), and PNC, as Administrative Agent (in such capacity, the “Administrative Agent”). Capitalized terms used but not defined herein have the respective meanings assigned thereto in that certain Receivables Financing Agreement dated as of May 9, 2016 (as amended, restated, supplemented or otherwise modified from time to time, the “Receivables Financing Agreement”) among the Borrower, the Servicer, the LC Bank, the Administrative Agent, and PNC Capital Markets LLC, as Structuring Agent. This Fee Letter is one of the “Fee Letters” referred to in Section 3.05(b) of the Receivables Financing Agreement.

The Borrower hereby agrees to pay the following fees:

(a)    A “Closing Fee” in an amount equal to $42,500, which Closing Fee shall be paid by wire transfer of immediately available funds on or prior to the date hereof to PNC for the account of the Structuring Agent.

(b)     A “Commitment Fee” payable to the LC Bank for each day in an amount equal to the product of (i) the Commitment Fee Rate, times (ii) the excess, if any of (x) the Facility Limit on such day over (y) the Total Usage on such day, times (iii) 1/360. The Commitment Fee shall accrue on each day from the Closing Date to (but excluding) the Maturity Date and shall be payable in arrears on each Settlement Date for the prior Settlement Period (or portion thereof) most recently ended and on the Maturity Date. As used herein, the “Commitment Fee Rate” shall equal (A) 0.35% per annum for each day in which the Total Usage is greater than or equal to 50.0% of the Facility Limit, and (B) 0.45% per annum for each day in which the Total Usage is less than 50.0% of the Facility Limit.

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(c)     An “LC Fee” payable to the LC Bank for each day in an amount equal to the product of (i) 0.90% per annum, times (ii) the sum of (x) the face amount of all Letters of Credit outstanding on such day and (y) any Outstanding Reimbursement Obligations, times (iii) 1/360. The LC Fee shall accrue from the Closing Date to (but excluding) the Maturity Date and shall be payable in arrears on each Settlement Date for the prior Settlement Period (or portion thereof) most recently ended and on the Maturity Date.

Each of the fees payable by the Borrower hereunder will be (and shall be deemed to be for all purposes) fully earned as of the day on which it accrues, and none of the foregoing fees, once paid, shall be refundable under any circumstances. For the avoidance of doubt, each of the fees payable by the Borrower hereunder are payable in addition to, and not in lieu of, any other fees or amounts payable by the Borrower under, or in connection with, the Receivables Financing Agreement and the other Transaction Documents.

This Fee Letter may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement. Delivery of an executed counterpart hereof by facsimile or other electronic means shall be equally effective as delivery of an originally executed counterpart. Each party agrees that this Fee Letter and any documents to be delivered in connection herewith may be electronically signed, and that any electronic signatures appearing on this Fee Letter and such other documents are the same as handwritten signatures for the purposes of validity, enforceability, and admissibility.

This Fee Letter amends and restates in its entirety that certain Amended and Restated Fee Letter dated as of May 19, 2020 (the “Prior Fee Letter”), among the parties hereto and is not a novation of any of the agreements or obligations incurred pursuant to the terms of the Prior Fee Letter. This Fee Letter contains the final and complete integration of all prior expressions by the parties hereto with respect to the subject matter hereof and the payment of the fees specified above and shall (together with each of the other documents related hereto) constitute the entire agreement among the parties hereto with respect thereto superseding all prior oral or written understandings.

This Fee Letter may only be amended, restated, supplemented or otherwise modified by a written instrument, signed by each of the parties hereto. This Fee Letter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; provided, however, that the Borrower may not assign any of its rights or obligations under this Fee Letter without the prior written consent of each of the parties hereto.

THIS FEE LETTER, INCLUDING THE RIGHTS AND DUTIES OF THE PARTIES HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BUT WITHOUT REGARD TO ANY OTHER CONFLICTS OF LAW PROVISIONS THEREOF). EACH PARTY HERETO HEREBY IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY NEW YORK STATE OR FEDERAL COURT SITTING IN NEW YORK CITY, NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS FEE LETTER, AND EACH PARTY HERETO HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. THE PARTIES HERETO HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT THEY MAY EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO 
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THE MAINTENANCE OF SUCH ACTION OR PROCEEDING. THE PARTIES HERETO AGREE THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.

[SIGNATURE PAGES FOLLOW]

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Please evidence your agreement to the terms of this Fee Letter by signing the enclosed copy and returning it to the undersigned.

															
	Very truly yours,
					
	PNC BANK, NATIONAL ASSOCIATION, a LC
		Bank and as Administrative Agent
					
	By:	/s/ Michael Brown
		Name:	Michael Brown
		Title:	Senior Vice President
					
					
	PNC CAPITAL MARKETS LLC, as Structuring
		Agent
					
	By:	/s/ Michael Brown
		Name:	Michael Brown
		Title:	Managing Director
					

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Acknowledged and Agreed to as the
date first above written

															
	DAVEY RECEIVABLES LLC
					
	By:	/s/ Christopher J. Bast
		Name:	Christopher J. Bast
		Title:	Treasurer

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