Document:

Tompkins Financial Corporation 10-Q

 

Exhibit 10.2

 

SUPPLEMENTAL EXECUTIVE RETIREMENT
AGREEMENT

 

This Supplemental Executive Retirement
Agreement (the “Agreement”) is entered into effective January 1, 2016 by Tompkins Financial Corporation, with offices
at 110 The Commons, Ithaca, New York 14851, and John McKenna, (the “Executive”).

 

PREAMBLE

 

The principal objective of this Agreement
is to ensure the payment of competitive levels of retirement income to the Executive, who has been determined to be a key executive
of Tompkins Financial Corporation and its subsidiaries, in order to retain and motivate such Executive.

 

SECTION I. DEFINITIONS

 

1.1          “Board of Directors”
means the Board of Directors of Tompkins Financial Corporation.

 

1.2          “Committee” means
the Compensation Committee of the Board of Directors, which has been given authority by the Board of Directors to administer this
Agreement.

 

1.3          “Company” means
Tompkins Financial Corporation.

 

1.4          “Earnings” means
the average of the Executive’s five (5) highest calendar years (or such lesser number if the Executive has not completed
five (5) years of service for the purpose of determining Earnings) of base pay which shall mean the Executive’s base salary
excluding bonuses, profit sharing, and the like, and which may include base pay in years prior to the Executive’s commencement
of participation under this Agreement if so determined by the Board of Directors.

 

1.5          “Surviving Spouse”
means the spouse of the Executive, named at or prior to his Retirement Date on his ‘Form of Benefit and Beneficiary Designation
Form’, surviving on the date of death of the Executive.

 

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1.6          The masculine gender, where appearing
in this Agreement, will be deemed to include the feminine gender, and the singular may include the plural, unless the context clearly
indicates the contrary. For purposes of complying with Section 409A of the Internal Revenue Code of 1986, as amended, or any successor
to such statute of like import, it is acknowledged that no benefit payments may be made under this Agreement prior to the Executive’s
termination of employment with the Company, that the payment of benefits pursuant to this Agreement may not be accelerated by the
Company or the Executive, and that there are no elections provided under the Agreement to defer compensation or to delay a payment
of benefits. The Executive may elect or change the form of benefit payment any time prior to actual benefit commencement.

 

1.7          “Vested” means
having completed at least 10 years of service.

 

SECTION II. ELIGIBILITY FOR BENEFITS

 

2.1          Eligibility. The Executive
is eligible to participate in this Agreement by designation of the Board of Directors, in its sole discretion. The Board of Directors
may determine, in its sole discretion, that the Executive should cease to benefit under this Agreement and in such event the Board
of Directors shall notify the Executive in writing of such determination. Such determination shall not reduce the then Vested benefit
of the Executive under this Agreement.

 

2.2          Retirement Date. The Executive
is eligible to retire under this Agreement and receive a benefit under Section 3.1 beginning on his Retirement Date which is the
later of: (a) the first day of the month following the month in which the Executive becomes Vested and reaches age fifty-five (55),
or (b) the first day of the month following the month in which the Executive terminates employment with the Company.

 

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2.3          Discharge for Cause; Competition. Anything herein
to the contrary notwithstanding, if within two (2) years after terminating employment with the Company or its subsidiaries, the
Executive engages in Competition with the Company (without prior authorization given by the Committee in writing), or if the Executive
is discharged by the Company or its subsidiaries for Cause, payments otherwise payable under this Agreement to the Executive or
the Executive’s Surviving Spouse will, in the sole discretion of the Committee, be forfeited and the Company will have no
further obligation under this Agreement to the Executive or the Executive’s Surviving Spouse. For purposes of this Section
2.3, the term “Cause” shall mean (a) the conviction of the Executive by a court of competent jurisdiction of a crime
which constitutes a felony under any state or federal law, or (b) an act by the Executive which in the opinion of the Board of
Directors constitutes a theft of property of the Company or its subsidiaries, or (c) the willful and continued failure or refusal
of the Executive to perform his duties, or (d) gross negligence or willful misconduct on the part of the Executive that is materially
and demonstrably detrimental to the Company or its subsidiaries (such finding having been initially made by the Board of Directors).
For purposes of this Section 2.3, “Competition with the Company” shall occur (a) if the Executive directly or indirectly
comes to own, manage, operate, control, be employed by or participate in the ownership, management, operation or control of, or
be connected in any other manner with, any business which, in the judgment of the Board of Directors, is in substantial competition
with the Company (unless the Executive has first obtained the Board’s prior written consent) and which is located within
ten (10) miles of any location of the Company or any of its subsidiaries, (b) if the Executive solicits customers of the Company
or any of its subsidiaries to reduce or stop doing business with the Company or any of its subsidiaries, or (c) if the Executive
solicits employees of the Company or any of its subsidiaries to leave such employment, or offers employment to employees of the
Company or any of its subsidiaries.

 

SECTION III. AMOUNT AND FORM OF RETIREMENT BENEFIT

 

3.1          Retirement Benefit. The annual
retirement benefit amount payable by the Company under this Agreement as a single life annuity shall equal eighteen percent (18%)
of the Executive’s Earnings; provided, however, that the annual retirement benefit shall be reduced by six and one-quarter
percent (6.25%) for each year that the Executive’s years of service under this Agreement are less than sixteen (16) years.
In the event the Executive’s Retirement Date under Section 2.2 occurs prior to the Executive attaining the age of sixty-five
(65), the annual retirement benefit otherwise determined hereunder shall be further reduced by five percent (5%) for each year
of age by which the Executive’s attained age at his Retirement Date is less than sixty-five (65) years.

 

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The Executive may elect to take his benefit
in the form of a fifty percent (50%) joint and survivor annuity, whereby he and his Spouse at the time of his Retirement would
receive an actuarial equivalent benefit over their joint lifetimes. Actuarial equivalence will be determined using reasonable actuarial
assumptions chosen by the Company. The monthly retirement benefit payable by the Company to the Executive shall equal one-twelfth
(1/12) of such annual retirement benefit. The monthly benefit payable as a single life annuity shall be payable by the Company
on the first day of each calendar month beginning with the Executive’s Retirement Date through and including the month of
the Executive’s death. In the event that the Executive elects to take his benefit in the form of joint and survivor annuity,
the benefit shall be payable by the Company on the first day of each calendar month beginning with the Executive’s Retirement
Date through and including the later of the month of the Executive’s or his Surviving Spouse’s death in accordance
with that election. In the event the Executive is determined to be a “key employee”, as such term is defined in Section
416(i) of the Internal Revenue Code of 1986, as amended, or any successor to such statute of like import, then any monthly benefit
otherwise payable on or before the date which is six (6) months after the Executive’s termination of employment date shall
be delayed until the earlier of the Executive’s date of death or the date which is six (6) months after the Executive’s
termination of employment date.

 

3.2          Death Benefit.

 

(a)          Upon the death
of the Executive after the commencement of the Executive’s retirement benefit under Section 3.1, the Executive’s Spouse
as of his Retirement Date, if still living, shall be entitled to fifty percent (50%) of the annuity benefit the Executive was receiving
at the time of his death, but only if the Executive elected the fifty percent (50%) joint and survivor annuity form pursuant to
Section 3.1. The monthly retirement benefit payable by the Company, if any, to the Surviving Spouse shall be one-twelfth (1/12)
of such annual retirement benefit and shall be payable on the first day of each month beginning with the month after the month
of the Executive’s death through and including the month of the Surviving Spouse’s death.

 

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(b)          Upon the death
of the Executive prior to the commencement of the Executive’s retirement benefit under Section 3.1, the Executive’s
Surviving Spouse, if any, shall be entitled to an annual retirement benefit payable by the Company under this Agreement as elected,
determined under Section 3.1, in which the Executive is Vested at the time of his death; provided, that the Surviving Spouse survives
until the date upon which the Executive would have attained the age specified in Section 2.2(a) if the Executive’s death
occurs prior to his Retirement Date. The monthly retirement benefit payable by the Company, if any, to the Surviving Spouse shall
equal one-twelfth (1/12) of said annual retirement benefit for the Surviving Spouse and shall be payable on the first day of each
month commencing on the later of the Executive’s Retirement Date or the month after the month of the Executive’s death
through and including the month of the Surviving Spouse’s death.

 

(c)          Upon the death
of an Executive with no Surviving Spouse, or if the Executive’s Surviving Spouse shall not survive the Executive until the
date upon which the Executive would have attained the age specified in Section 2.2(a), there shall be no benefit payment under
this Agreement to the Executive, the Executive’s Surviving Spouse, the estate of either the Executive or the Surviving Spouse,
or otherwise.

 

3.3          Service. For purposes of
this Agreement, the Executive’s service shall be defined as commencing on January 1, 2015 and ending on the date the Executive’s
employment with Company or its subsidiaries is terminated, or such earlier date as shall be determined by the Board of Directors
if the Board of Directors shall determine pursuant to Section 2.1 hereof that the Executive should cease to benefit under this
Agreement (provided, however, that no such determination shall reduce the then Vested benefit of the Executive under this Agreement).
Years of service shall be determined in years and months of service with credit provided for a full month of service for the calendar
month in which the Executive’s service commences as set forth above and the calendar month in which the Executive’s
service hereunder ceases.

 

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SECTION IV. PAYMENT OF RETIREMENT
BENEFITS

 

4.1          Limitation on Payments. Notwithstanding
anything in this Agreement to the contrary, no benefits are payable under this Agreement if the Executive is discharged for Cause
(as defined in Section 2.2) or engages in Competition with the Company (as defined in Section 2.2).

 

4.2          Termination. If the Executive
terminates employment voluntarily before attaining age fifty-five (55) or becoming Vested for reasons other than death or Disability,
the Company shall have no obligation to pay, and the Executive shall have no right to receive, any retirement benefit under this
Agreement whatsoever. In the event of the Executive’s involuntary termination of employment (other than for Cause) at any
time, the benefit payable to the Executive shall be determined as set forth in Section 3.1, and the Executive’s benefit shall
commence at age fifty-nine (59) if the Executive then survives. In the event the Executive does not then survive, the Executive’s
Surviving Spouse shall be entitled to the benefit under Section 3.2, if the Surviving Spouse then survives.

 

SECTION V. DEATH BENEFITS PAYABLE

 

5.1          Death Benefit. Other than
the death benefit for the Surviving Spouse under Section 3.2, Section 4.2, or Section 6.2, as applicable, no death benefits are
payable under this Agreement.

 

SECTION VI. DISABILITY BENEFITS PAYABLE

 

6.1          Disability Benefit. In the
event the Committee determines that the Executive has become permanently and totally disabled (other than at a time when facts
and circumstances exist under which the Company could terminate the Executive’s employment for Cause), the Executive shall
be entitled to the benefits under Section 3.1 commencing at the Executive’s Retirement Date, but with the assumption that
the Executive completed sixteen (16) years of service and is Vested in the benefit under this Agreement as of the date of disability.

 

6.2          Death after Disability. In
the event of the death of the Executive after a disability is determined, the Executive’s Surviving Spouse shall be entitled
to the benefit under Section 3.2, if the Surviving Spouse then survives.

 

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6.3          Medical Evidence. The Committee
may require, no more frequently than once in any calendar year, that the Executive submit medical evidence of disability satisfactory
to the Committee. The Committee will have sole discretion to discontinue eligibility for a disability benefit based on a consideration
of such evidence or lack thereof.

 

SECTION VII. CHANGE OF CONTROL

 

7.1          Change of Control.

 

          (a)          In the event
of a Change of Control, as defined in Section 7.2, of Tompkins Financial Corporation, the Executive shall be deemed to have completed
sixteen (16) years of service and be Vested in the benefit under this Agreement.

 

          (b)          In the event of a Change of
Control of Tompkins Financial Corporation, if the employment of the Executive is thereafter terminated or the role or compensation
of the Executive is significantly reduced in anticipation of such a Change of Control which then occurs, or within three (3) years
of such Change of Control, then the Executive shall receive a benefit, in addition to any benefit under Section 3 of this Agreement,
under this Section 7.1(b). The benefit under this Section 7.1(b) shall be the continuation of the Executive’s Compensation,
as defined below, for a period of three (3) years plus continuation of all employee welfare benefits that the Executive was participating
in (health insurance, disability insurance, life insurance and the like) immediately prior to the Change of Control during the
period in which the Executive’s Compensation is continued; provided, however, that, for purposes of this Section 7.1(b),
the amount of the Executive’s Compensation taken into account shall be reduced by (20%) if the Executive has attained age
sixty-one (61), by 40% if the Executive has attained age sixty-two (62), by 60% if the Executive has attained age sixty-three (63),
by 80% if the Executive has attained age sixty-four (64), and by 100% if the Executive has attained age sixty-five (65), with all
such age determinations made as of the date of the Executive’s termination of employment. The continuation of the Executive’s
employee welfare benefits under this Section 7.1(b) shall be on the same terms and conditions as such employee welfare benefits
are offered to other executive employees of the successor employer to the Company and such continuation shall be for a three-year
period even if there is no continuation payment of the Executive’s Compensation because of the 100% reduction under the preceding
sentence. For purposes of this Section VII only, the term “Compensation” shall mean the Executive’s base pay
(at the rate in effect immediately prior to the Change in Control) plus the Executive’s bonus and profit sharing compensation
(which for this purpose shall be the average of the Executive’s bonus and profit sharing compensation earned for the two
(2) most recently completed fiscal years of the Company).

 

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          (c)          In the event it shall be determined
that any payment or distribution by the Company to or for the benefit of the Executive (whether paid or payable or distributed
or distributable pursuant to the terms of this Agreement or otherwise) would be subject to the excise tax imposed by Section 4999
of the Internal Revenue Code of 1986, as amended, including any successor to such statute of like import (the “Excise Tax”),
then the amount of the benefit otherwise payable under Section 7.1(b), if any, shall be reduced, but not below zero, to the maximum
amount upon which no such Excise Tax is imposed.

 

          (d)          For purposes of this Section
7.1, the proper amounts, if any, of the Excise Tax and the adjustment under Section 7.1(c) to eliminate the Excise Tax shall be
determined in the first instance by the Company. Within forty-five (45) days of being provided with written notice of any such
determination, the Executive may provide written notice to the Committee of any disagreement, in which event the amounts, if any,
of the Excise Tax and any adjustment under Section 7.1(c) shall be determined by independent tax counsel selected by the Company’s
independent auditors. The determination of the Company (or, in the event of disagreement, the tax counsel selected) shall be final.

 

7.2          For purposes of this Section 7,
a Change of Control shall be deemed to have occurred if subsequent to January 1, 2004, (i) any person, including a “group”
(as defined in Section 13(d)(3) of the Securities and Exchange Act of 1934 (the “1934 Act”), becomes the “beneficial
owner” (within the meaning of Section 13(d)(3) under the 1934 Act) of a majority of the common stock of Tompkins Financial
Corporation; or (ii) Tompkins Financial Corporation is a party to a merger, consolidation, or other business combination in which
it is not the surviving corporation, or sells or transfers all of a major portion of its assets to any other person (any of the
foregoing constituting a “Business Combination”); or (iii) as a result of, or in connection with, any cash tender or
exchange offer, purchase of stock, Business Combination, or contested election, or any combination of the foregoing transactions
(a “Transaction”), the persons who were the Board of Directors before the Transaction shall cease to constitute a majority
of the Board of Directors of Tompkins Financial Corporation or any Successor Corporation. “Successor Corporation” means
the surviving, resulting or transferee corporation in a Business Combination, or if such corporation is a direct or indirect subsidiary
of another corporation, the parent corporation of such surviving, resulting or transferee corporation.

 

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SECTION VIII. MISCELLANEOUS

 

8.1          Termination and Amendment.
The Committee may, in its sole discretion, terminate, suspend or amend this Agreement at any time or from time to time, in whole
or in part; provided, however, that no termination, suspension, or amendment of this Agreement will, without the written consent
of the Executive or the Surviving Spouse (if the Executive is not then living), reduce the Executive’s right or the right
of the Surviving Spouse to receive or continue receiving a benefit in accordance with this Agreement. The provisions of this Section
8.1 shall be subordinate to the provisions of Section 2.2 concerning the forfeiture of benefits.

 

8.2          No Employment Agreement.
Nothing contained herein will confer upon the Executive the right to be retained in the service of the Company or its subsidiaries,
nor will it interfere with the right of the Company or its subsidiaries to discharge or otherwise deal with the Executive without
regard to the existence of this Agreement.

 

8.3          Unfunded Arrangement. The
benefits under this Agreement are unfunded, and the Company will make benefit payments solely on a current disbursement basis.
Notwithstanding anything herein to the contrary, the Executive, Surviving Spouse, and any beneficiaries of the Executive shall
have the status of general creditors of the Company.

 

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8.4          Assignment. To the maximum
extent permitted by law, no benefit under this Agreement shall be assignable or subject to any manner to alienation, sale, transfer,
claims of creditors, pledge, attachment or encumbrances of any kind.

 

8.5          Rules. The Committee may
adopt rules and regulations to assist it in the administration of this Agreement.

 

8.6          Information. The Executive
shall receive a copy of this Agreement and the Committee will make available for inspection by the Executive a copy of any rules
and regulations used by the Committee in administering this Agreement.

 

8.7          Controlling Law. This Agreement
is established under and will be construed according to the laws of the State of New York, without regard for principles of conflicts
of law.

 

8.8          Legal Expenses. The Company
shall pay, upon request and documentation thereof, all reasonable legal fees and expenses which the Executive may incur as a result
of the Company contesting the validity or enforceability of any provision of this Agreement or any claim by the Executive under
this Agreement; provided, however, that the Company shall be entitled to be reimbursed by the Executive for such amount previously
paid to such Executive if it is finally judicially determined that such Executive’s claims under this Agreement are frivolous.

 

8.9          Disputes. In the event of
any dispute after the occurrence of Change of Control (as defined in the Section 7.2) between the Company and the Executive with
respect to the Executive’s rights to any payment under this Agreement, the Company shall pay all disputed amounts to the
Executive and, if it is finally judicially determined that the Executive was not entitled to all or a portion of such disputed
amounts, the Executive shall repay to the Company the amount to which the Executive was not entitled, together with interest thereon
at the judgment rate of interest then applicable in New York State.

 

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IN WITNESS WHEREOF,
this Agreement has been executed this 29th day of April, 2016.

 

	 	 	 	TOMPKINS FINANCIAL CORPORATION
	 	 	 	 	 	 
	 	 	 	By:   	/s/ Stephen S. Romaine
	 	 	 	 	 	 
	 	 	 	Name:   	Stephen S. Romaine
	 	 	 	 	 	 
	ATTEST:	/s/ Janet L. Hewitt	 	Title:	President & Chief Executive Officer
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	By:	/s/ John McKenna
	 	 	 	 	 	 
	 	 	 	Name:	John McKenna
	 	 	 	 	 	 
	ATTEST:	/s/ Heather Robbins	 	Title:	Chief Executive Officer,
	 	 	 	 	 	  Bank of Castile

 

    	11Where Food Comes From, Inc., 8-K

Exhibit 10.1

WHERE FOOD COMES FROM, INC.

2016 EQUITY INCENTIVE PLAN

1.

PURPOSE
OF PLAN

The purpose of this
2016 Equity Incentive Plan (this “Plan”) of Where Food Comes From, Inc., a Colorado corporation (the “Corporation”),
is to promote the success of the Corporation and to increase stockholder value by providing an additional means to attract, motivate,
retain and reward selected employees, directors, and other eligible persons through the grant of equity awards and certain cash
compensation.

2.

ELIGIBILITY

The Administrator
(as such term is defined in Section 3.1) may grant awards under this Plan only to those persons that the Administrator determines
to be Eligible Persons. An “Eligible Person” is any person who is either: (a) an officer (whether or not
a director) or employee of the Corporation or one of its Subsidiaries; (b) a director of the Corporation or one of its Subsidiaries;
or (c) an individual consultant who renders bona fide services (other than services in connection with the offering or sale
of securities of the Corporation or one of its Subsidiaries in a capital-raising transaction or as a market maker or promoter of
securities of the Corporation or one of its Subsidiaries) to the Corporation or one of its Subsidiaries and who is selected to
participate in this Plan by the Administrator; provided, however, that a person who is otherwise an Eligible Person under
clause (c) above may participate in this Plan only if such participation would not adversely affect either the Corporation’s
eligibility to use Form S-8 to register under the Securities Act of 1933, as amended (the “Securities Act”),
the offering and sale of shares issuable under this Plan by the Corporation, or the Corporation’s compliance with any other
applicable laws. An Eligible Person who has been granted an award (a “participant”) may, if otherwise eligible,
be granted additional awards if the Administrator shall so determine. As used herein, “Subsidiary” means any
corporation or other entity controlled by the Corporation directly or indirectly through one or more intermediaries; and “Board”
means the Board of Directors of the Corporation.

3.

PLAN
ADMINISTRATION

3.1

The Administrator.
This Plan shall be administered by and all awards under this Plan shall be authorized by the Administrator. The “Administrator”
means the Board or one or more committees appointed by the Board or another committee (within its delegated authority) to administer
all or certain aspects of this Plan. Any such committee shall be comprised solely of one or more directors or such other number
of directors as may be required under applicable law. A committee may delegate some or all of its authority to another committee
so constituted. The Board or a committee comprised solely of directors may also delegate, to the extent permitted by applicable
law, to one or more officers of the Corporation, its powers under this Plan (a) to determine the Eligible Persons who will
receive grants of awards under this Plan, and (b) to determine the number of shares subject to, and the other terms and conditions
of, such awards. The Board may delegate different levels of authority to different committees with administrative and grant authority
under this Plan. Unless otherwise provided in the bylaws of the Corporation or the applicable charter of any Administrator: (a) a
majority of the members of the acting Administrator shall constitute a quorum, and (b) the affirmative vote of a majority
of the members present assuming the presence of a quorum or the unanimous written consent of the members of the Administrator shall
constitute due authorization of an action by the acting Administrator.

 

    	  

    	 

    

 

Award grants, and
transactions in or involving awards, intended to be exempt under Rule 16b-3 under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), must be duly and timely authorized by the Board or a committee consisting solely
of two or more non-employee directors (as this requirement is applied under Rule 16b-3 promulgated under the Exchange Act).
To the extent required by any applicable stock exchange, this Plan shall be administered by a committee composed entirely of independent
directors (as defined by the rules of the applicable stock exchange). Awards granted to non-employee directors shall not be subject
to the discretion of any officer or employee of the Corporation and shall be administered exclusively by a committee consisting
solely of independent directors.

3.2

Powers of the
Administrator. Subject to the express provisions of this Plan, the Administrator is authorized and empowered to do all
things necessary or desirable in connection with the authorization of awards and the administration of this Plan (in the case of
a committee or delegation to one or more officers, within the authority delegated to that committee or person(s)), including, without
limitation, the authority to:

(a)

determine eligibility
and, from among those persons determined to be eligible, the particular Eligible Persons who will receive awards under this Plan;

(b)

grant awards
to Eligible Persons, determine the price at which securities will be offered or awarded and the number of securities to be offered
or awarded to any of such persons, determine the other specific terms and conditions of such awards consistent with the express
limits of this Plan, establish the installments (if any) in which such awards shall become exercisable or shall vest (which may
include, without limitation, performance and/or time-based schedules), or determine that no delayed exercisability or vesting is
required, establish any applicable performance targets, and establish the events of termination or reversion of such awards;

(c)

approve the forms
of award agreements (which need not be identical either as to type of award or among participants);

(d)

construe and
interpret this Plan and any agreements defining the rights and obligations of the Corporation, its Subsidiaries, and participants
under this Plan, further define the terms used in this Plan, and prescribe, amend and rescind rules and regulations relating to
the administration of this Plan or the awards granted under this Plan;

(e)

cancel, modify,
or waive the Corporation’s rights with respect to, or modify, discontinue, suspend, or terminate any or all outstanding awards,
subject to any required consent under Section 8.6.5;

(f)

accelerate or
extend the vesting or exercisability or extend the term of any or all such outstanding awards (in the case of options or stock
appreciation rights, within the maximum ten-year term of such awards) in such circumstances as the Administrator may deem appropriate
(including, without limitation, in connection with a termination of employment or services or other events of a personal nature)
subject to any required consent under Section 8.6.5;

 

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(g)

adjust the number
of shares of Common Stock subject to any award, adjust the price of any or all outstanding awards or otherwise change previously
imposed terms and conditions, in such circumstances as the Administrator may deem appropriate, in each case subject to compliance
with applicable stock exchange requirements, Sections 4 and 8.6, and provided that in no case (except due to an adjustment
contemplated by Section 7) shall the terms of any outstanding awards be amended (by amendment, cancellation and regrant, or
other means) to reduce the per share exercise or base price of any outstanding stock option or stock appreciation right or other
award granted under this Plan, or be exchanged for cash, other awards or stock option or stock appreciation rights with an exercise
price that is less than the per share exercise price of the original stock option or stock appreciation rights, without stockholder
approval, and further provided that any adjustment or change in terms made pursuant to this Section 3.2(g) shall be made in a manner
that, in the good faith determination of the Administrator will not likely result in the imposition of additional taxes or interest
under Section 409A of the Code;

(h)

determine the
date of grant of an award, which may be a designated date after but not before the date of the Administrator’s action (unless
otherwise designated by the Administrator, the date of grant of an award shall be the date upon which the Administrator took the
action granting an award);

(i)

determine whether,
and the extent to which, adjustments are required pursuant to Section 7 hereof and authorize the termination, conversion,
substitution, acceleration or succession of awards upon the occurrence of an event of the type described in Section 7;

(j)

acquire or settle
(subject to Sections 7 and 8.6) rights under awards in cash, stock of equivalent value, or other consideration; and

(k)

determine the
Fair Market Value (as defined in Section 5.6) of the Common Stock or awards under this Plan from time to time and/or the manner
in which such value will be determined.

3.3

Binding Determinations.
Any action taken by, or inaction of, the Corporation, any Subsidiary, or the Administrator relating or pursuant to this Plan and
within its authority hereunder or under applicable law shall be within the absolute discretion of that entity or body and shall
be conclusive and binding upon all persons. Neither the Board, the Administrator, nor any Board committee, nor any member thereof
or person acting at the direction thereof, shall be liable for any act, omission, interpretation, construction or determination
made in good faith in connection with this Plan (or any award made under this Plan), and all such persons shall be entitled to
indemnification and reimbursement by the Corporation in respect of any claim, loss, damage or expense (including, without limitation,
legal fees) arising or resulting therefrom to the fullest extent permitted by law, the Corporation’s certificate of incorporation
and bylaws, as the same may be amended from time to time, or under any directors and officers liability insurance coverage or written
indemnification agreement with the Corporation that may be in effect from time to time.

 

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3.4

Reliance on Experts.
In making any determination or in taking or not taking any action under this Plan, the Administrator may obtain and may rely upon
the advice of experts, including professional advisors to the Corporation. The Administrator shall not be liable for any such action
or determination taken or made or omitted in good faith based upon such advice.

3.5

Delegation of
Non-Discretionary Functions. In addition to the ability to delegate certain grant authority to officers of the Corporation
as set forth in Section 3.1, the Administrator may also delegate ministerial, non-discretionary functions to individuals who are
officers or employees of the Corporation or any of its Subsidiaries or to third parties.

4.

SHARES
OF COMMON STOCK SUBJECT TO THE PLAN; SHARE LIMIT

4.1

Shares Available.
Subject to the provisions of Section 7.1, the capital stock available for issuance under this Plan shall be shares of the
Corporation’s authorized but unissued Common Stock. For purposes of this Plan, “Common Stock” shall mean
the common stock of the Corporation, par value $0.001 per share, and such other securities or property as may become the subject
of awards under this Plan pursuant to an adjustment made under Section 7.1.

4.2

Share Limit.
The maximum number of shares of Common Stock that may be delivered pursuant to awards granted to Eligible Persons under this Plan
(the “Share Limit”) may not exceed 5,000,000 shares of Common Stock.

The foregoing Share
Limit is subject to adjustment as contemplated by Section 7.1 and Section 8.10.

4.3

Awards Settled
in Cash, Reissue of Awards and Shares. The Administrator may adopt reasonable counting procedures to ensure appropriate
counting and to avoid double counting (as, for example, in the case of tandem or substitute awards) as it may deem necessary or
desirable in its sole discretion. Shares shall be counted against those reserved to the extent such shares have been delivered
and are no longer subject to a substantial risk of forfeiture. Accordingly, to the extent that an award under the Plan, in whole
or in part, is canceled, expired, forfeited, settled in cash, or otherwise terminated without delivery of shares to the participant,
the shares retained by or returned to the Corporation will not be deemed to have been delivered under the Plan and will be deemed
to remain or to become available under this Plan. Notwithstanding the foregoing, shares that are withheld from such an award or
separately surrendered by the participant in payment of the exercise price or taxes relating to such an award, and the total number
of shares subject to the exercised portion of an SAR (regardless of the actual lesser of number shares delivered to the Participant),
shall be deemed to have been issued hereunder and shall reduce the number of shares remaining available for issuance under the
Plan.

4.4

Reservation of
Shares; No Fractional Shares. The Corporation shall at all times reserve a number of shares of Common Stock sufficient
to cover the Corporation’s obligations and contingent obligations to deliver shares with respect to awards then outstanding
under this Plan (exclusive of any dividend equivalent obligations to the extent the Corporation has the right to settle such rights
in cash). No fractional shares shall be delivered under this Plan. The Administrator may pay cash in lieu of any fractional shares
in settlements of awards under this Plan.

 

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5.

AWARDS

5.1

Type and Form
of Awards. The Administrator shall determine the type or types of award(s) to be made to each selected Eligible Person.
Awards may be granted singly, in combination or in tandem. Awards also may be made in combination or in tandem with, in replacement
of, as alternatives to, or as the payment form for grants or rights under any other employee or compensation plan of the Corporation
or one of its Subsidiaries. The types of awards that may be granted under this Plan are:

5.1.1

Stock Options.
A stock option is the grant of a right to purchase a specified number of shares of Common Stock during a specified period as determined
by the Administrator. An option may be intended as an incentive stock option within the meaning of Section 422 of the Code
(an “ISO”) or a nonqualified stock option (an option not intended to be an ISO). The award agreement for an
option will indicate if the option is intended as an ISO; otherwise it will be deemed to be a nonqualified stock option. The maximum
term of each option (ISO or nonqualified) shall be ten (10) years. The per share exercise price for each option shall be not
less than 100% of the Fair Market Value of a share of Common Stock on the date of grant of the option. When an option is exercised,
the exercise price for the shares to be purchased shall be paid in full in cash or such other method permitted by the Administrator
consistent with Section 5.5. Options may only be granted to Eligible Persons for whom the Corporation would be deemed to be
an “eligible issuer of service recipient stock,” as defined in Treasury Regulation 1.409A-1(b)(5)(iii)(E).

5.1.2

Additional
Rules Applicable to ISOs. To the extent that the aggregate Fair Market Value (determined at the time of grant of the applicable
option) of stock with respect to which ISOs first become exercisable by a participant in any calendar year exceeds $100,000, taking
into account both Common Stock subject to ISOs under this Plan and stock subject to ISOs under all other plans of the Corporation
or one of its Subsidiaries (or any parent or predecessor corporation to the extent required by and within the meaning of Section 422
of the Code and the regulations promulgated thereunder), such options shall be treated as nonqualified stock options. In reducing
the number of options treated as ISOs to meet the $100,000 limit, the most recently granted options shall be reduced first. To
the extent a reduction of simultaneously granted options is necessary to meet the $100,000 limit, the Administrator may, in the
manner and to the extent permitted by law, designate which shares of Common Stock are to be treated as shares acquired pursuant
to the exercise of an ISO. ISOs may only be granted to employees of the Corporation or one of its subsidiaries (for this purpose,
the term “subsidiary” is used as defined in Section 424(f) of the Code, which generally requires an unbroken chain
of ownership of at least 50% of the total combined voting power of all classes of stock of each subsidiary in the chain beginning
with the Corporation and ending with the subsidiary in question). There shall be imposed in any award agreement relating to ISOs
such other terms and conditions as from time to time are required in order that the option be an “incentive stock option”
as that term is defined in Section 422 of the Code. No ISO may be granted to any person who, at the time the option is granted,
owns (or is deemed to own under Section 424(d) of the Code) shares of outstanding Common Stock possessing more than 10% of
the total combined voting power of all classes of stock of the Corporation, unless the exercise price of such option is at least
110% of the Fair Market Value of the stock subject to the option and such option by its terms is not exercisable after the expiration
of five years from the date such option is granted.

 

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5.1.3

Stock Appreciation
Rights. A stock appreciation right or “SAR” is a right to receive a payment, in cash and/or Common Stock,
equal to the number of shares of Common Stock being exercised multiplied by the excess of (i) the Fair Market Value of a share
of Common Stock on the date the SAR is exercised, over (ii) the Fair Market Value of a share of Common Stock on the date the SAR
was granted as specified in the applicable award agreement (the “base price”). The maximum term of a SAR shall
be ten (10) years. SARs may only be granted to Eligible Persons for whom the Corporation would be deemed to be an “eligible
issuer of service recipient stock,” as defined in Treasury Regulation 1.409A-1(b)(5)(iii)(E).

5.1.4

Restricted
Stock.

(a)

Restrictions.
Restricted stock is Common Stock subject to such restrictions on transferability, risk of forfeiture and other restrictions, if
any, as the Administrator may impose, which restrictions may lapse separately or in combination at such times, under such circumstances
(including based on achievement of performance goals and/or future service requirements), in such installments or otherwise, as
the Administrator may determine at the date of grant or thereafter. Except to the extent restricted under the terms of this Plan
and the applicable award agreement relating to the restricted stock, a participant granted restricted stock shall have all of the
rights of a stockholder of the Corporation, including the right to vote the restricted stock and the right to receive dividends
thereon (subject to any mandatory reinvestment or other requirement imposed by the Administrator).

(b)

Certificates
for Shares. Shares of restricted stock granted under this Plan may be evidenced in such manner as the Administrator shall determine.
If certificates representing restricted stock are registered in the name of the participant, the Administrator may require that
such certificates bear an appropriate legend referring to the terms, conditions and restrictions applicable to such restricted
stock, that the Corporation retain physical possession of the certificates, and that the participant deliver a stock power to the
Corporation, endorsed in blank, relating to the restricted stock. The Administrator may require that shares of restricted stock
are held in escrow until all restrictions lapse.

(c)

Dividends
and Splits. As a condition to the grant of an award of restricted stock, subject to applicable law, the Administrator may require
or permit a participant to elect that any cash dividends paid on a share of restricted stock be automatically reinvested in additional
shares of restricted stock or applied to the purchase of additional awards under this Plan or held in escrow by the Corporation
unless and until the related shares of restricted stock become vested. Unless otherwise determined by the Administrator, stock
distributed in connection with a stock split or stock dividend, and other property distributed as a dividend, shall be subject
to restrictions and a risk of forfeiture to the same extent as the restricted stock with respect to which such stock or other property
has been distributed.

 

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5.1.5

Cash Awards.
The Administrator may, from time to time, subject to the provisions of the Plan and such other terms and conditions as it may
determine, grant cash bonuses (including without limitation, discretionary awards, awards based on objective or subjective performance
criteria, awards subject to other vesting criteria).  Cash awards shall be awarded in such amount and at such times during
the term of the Plan as the Administrator shall determine.  

5.2

Award Agreements.
Each award (other than cash awards described in Section 5.1.5) shall be evidenced by a written or electronic award agreement in
the form approved by the Administrator and, if required by the Administrator, executed or accepted by the recipient of the award.
The Administrator may authorize any officer of the Corporation (other than the particular award recipient) to execute any or all
award agreements on behalf of the Corporation (electronically or otherwise). The award agreement shall set forth the material terms
and conditions of the award as established by the Administrator consistent with the express limitations of this Plan.

5.3

Deferrals and
Settlements. Payment of awards may be in the form of cash, Common Stock, other awards or combinations thereof as the Administrator
shall determine, and with such restrictions as it may impose. The Administrator may also require or permit participants to elect
to defer the issuance of shares of Common Stock or the settlement of awards in cash under such rules and procedures as it may establish
under this Plan. The Administrator may also provide that deferred settlements include the payment or crediting of interest or other
earnings on the deferral amounts, or the payment or crediting of dividend equivalents where the deferred amounts are denominated
in shares. All mandatory or elective deferrals of the issuance of shares of Common Stock or the settlement of cash awards shall
be structured in a manner that is intended to comply with the requirements of Section 409A of the Code.

5.4

Consideration
for Common Stock or Awards. The purchase price for any award granted under this Plan or the Common Stock to be delivered
pursuant to an award, as applicable, may be paid by means of any lawful consideration as determined by the Administrator and subject
to compliance with applicable laws, including, without limitation, one or a combination of the following methods:

·

services
rendered by the recipient of such award;

·

cash,
check payable to the order of the Corporation, or electronic funds transfer;

·

notice
and third party payment in such manner as may be authorized by the Administrator;

·

the
delivery of previously owned shares of Common Stock that are fully vested and unencumbered;

·

by
a reduction in the number of shares otherwise deliverable pursuant to the award; or

 

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·

subject
to such procedures as the Administrator may adopt, pursuant to a “cashless exercise” with a third party who provides
financing for the purposes of (or who otherwise facilitates) the purchase or exercise of awards.

In the event that
the Administrator allows a participant to exercise an award by delivering shares of Common Stock previously owned by such participant
and unless otherwise expressly provided by the Administrator, any shares delivered which were initially acquired by the participant
from the Corporation (upon exercise of a stock option or otherwise) must have been owned by the participant at least six months
as of the date of delivery (or such other period as may be required by the Administrator in order to avoid adverse accounting treatment).
Shares of Common Stock used to satisfy the exercise price of an option shall be valued at their Fair Market Value on the date of
exercise. The Corporation will not be obligated to deliver any shares unless and until it receives full payment of the exercise
or purchase price therefor and any related withholding obligations under Section 8.5 and any other conditions to exercise
or purchase, as established from time to time by the Administrator, have been satisfied. Unless otherwise expressly provided in
the applicable award agreement, the Administrator may at any time eliminate or limit a participant’s ability to pay the purchase
or exercise price of any award by any method other than cash payment to the Corporation.

5.5

Definition of
Fair Market Value. For purposes of this Plan “Fair Market Value” of a share of Common Stock, as of a
date of determination, shall mean (i) the closing sales price per share of Common Stock on the U.S. national securities exchange
or over-the-counter market on which such stock is principally traded on the date of the grant of such award or (ii) if the shares
of Common Stock are not then listed on any national securities exchange or traded in an over-the-counter market or the value of
such shares is not otherwise determinable, such value as reasonably determined by the Administrator in good faith and, to the extent
necessary, in accordance with the requirements of Section 409A of the Code.

5.6

Transfer Restrictions.

5.6.1

Limitations
on Exercise and Transfer. Unless otherwise expressly provided in (or pursuant to) this Section 5.6, by applicable
law and by the award agreement, as the same may be amended, (a) all awards are non-transferable and shall not be subject in
any manner to sale, transfer, anticipation, alienation, assignment, pledge, encumbrance or charge; (b) awards shall be exercised
only by the participant; and (c) amounts payable or shares issuable pursuant to any award shall be delivered only to (or for
the account of) the participant.

5.6.2

Exceptions.
The Administrator may permit awards to be exercised by and paid to, or otherwise transferred to, other persons or entities pursuant
to such conditions and procedures, including limitations on subsequent transfers, as the Administrator may, in its sole discretion,
establish in writing (provided that any such transfers of ISOs shall be limited to the extent permitted under the federal tax laws
governing ISOs). Any permitted transfer shall be subject to compliance with applicable federal and state securities laws.

5.6.3

Further
Exceptions to Limits on Transfer. The exercise and transfer restrictions in Section 5.6.1 shall not apply to:

 

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(a)

transfers to
the Corporation,

(b)

the designation
of a beneficiary to receive benefits in the event of the participant’s death or, if the participant has died, transfers to
or exercise by the participant’s beneficiary, or, in the absence of a validly designated beneficiary, transfers by will or
the laws of descent and distribution,

(c)

subject to any
applicable limitations on ISOs, transfers to a family member (or former family member) pursuant to a domestic relations order if
approved or ratified by the Administrator,

(d)

subject to any
applicable limitations on ISOs, if the participant has suffered a disability, permitted transfers or exercises on behalf of the
participant by his or her legal representative, or

(e)

the authorization
by the Administrator of “cashless exercise” procedures with third parties who provide financing for the purpose of
(or who otherwise facilitate) the exercise of awards consistent with applicable laws and the express authorization of the Administrator.

6.

EFFECT
OF TERMINATION OF SERVICE ON AWARDS

6.1

Termination of
Employment.

6.1.1

Administrator
Determination. The Administrator shall establish the effect of a termination of employment or service on the rights and
benefits under each award under this Plan and in so doing may make distinctions based upon, inter alia, the cause of termination
and type of award. If the participant is not an employee of the Corporation or one of its Subsidiaries and provides other services
to the Corporation or one of its Subsidiaries, the Administrator shall be the sole judge for purposes of this Plan (unless a contract
or the award agreement otherwise provides) of whether the participant continues to render services to the Corporation or one of
its Subsidiaries and the date, if any, upon which such services shall be deemed to have terminated.

6.1.2

Stock Options
and SARs.  For awards of stock options or SARs, unless the award agreement provides otherwise, the exercise period of such
options or SARs shall expire: (1) three months after the last day that the participant is employed by or provides services
to the Corporation or a Subsidiary (provided however, that in the event of the participant’s death during this
period, those persons entitled to exercise the option or SAR pursuant to the laws of descent and distribution shall have one year
following the date of death within which to exercise such option or SAR); (2) in the case of a participant whose termination
of employment is due to death or disability (as defined in the applicable award agreement), 12 months after the last day that
the participant is employed by or provides services to the Corporation or a Subsidiary; and (3) immediately upon a participant’s
termination for “cause.” The Administrator will, in its absolute discretion, determine the effect of all matters and
questions relating to a termination of employment, including, but not by way of limitation, the question of whether a leave of
absence constitutes a termination of employment and whether a participant’s termination is for “cause.”

 

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The term “cause”
shall have the meaning assigned to such term in any individual employment or severance agreement or award agreement with the participant
or, if no such agreement exists or if such agreement does not define “cause,” cause shall mean (i) participant’s
act(s) of gross negligence or willful misconduct in the course of participant’s employment by the Corporation or any of its
Subsidiaries that is or could reasonably be expected to be materially injurious to the Corporation or any of its Subsidiaries,
(ii) willful failure or refusal by participant to perform in any material respect his or her duties or responsibilities, (iii)
misappropriation by participant of any assets of the Corporation or any of its Subsidiaries, (iv) embezzlement or fraud committed
by participant, or at his or her direction, and (v) participant’s conviction of, or pleading “guilty” or “
no contest” to a felony under state or federal law.

6.1.3

Restricted
Stock. For awards of restricted stock, unless the award agreement provides otherwise, shares of restricted stock that are
subject to restrictions at the time that a participant whose employment or service is terminated shall be forfeited and reacquired
by the Corporation; provided however, the Administrator may provide, by rule or regulation or in any award agreement, or
may determine in any individual case, that restrictions or forfeiture conditions relating to shares of restricted stock shall be
waived in whole or in part in the event of a termination of employment or service, and the Administrator may in other cases waive
in whole or in part the forfeiture of shares of restricted stock.

6.2

Events Not Deemed
Terminations of Service. Unless the express policy of the Corporation or one of its Subsidiaries, or the Administrator,
otherwise provides, the employment relationship shall not be considered terminated in the case of (a) sick leave, (b) military
leave, or (c) any other leave of absence authorized by the Corporation or one of its Subsidiaries, or the Administrator; provided
that unless reemployment upon the expiration of such leave is guaranteed by contract or law, such leave is for a period of not
more than 3 months. In the case of any employee of the Corporation or one of its Subsidiaries on an approved leave of absence,
continued vesting of the award while on leave from the employ of the Corporation or one of its Subsidiaries may be suspended until
the employee returns to service, unless the Administrator otherwise provides or applicable law otherwise requires. In no event
shall an award be exercised after the expiration of the term set forth in the award agreement.

6.3

Effect of Change
of Subsidiary Status. For purposes of this Plan and any award, if an entity ceases to be a Subsidiary of the Corporation,
a termination of employment or service shall be deemed to have occurred with respect to each Eligible Person in respect of such
Subsidiary who does not continue as an Eligible Person in respect of the Corporation or another Subsidiary that continues as such
after giving effect to the transaction or other event giving rise to the change in status.

 

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7.

ADJUSTMENTS;
ACCELERATION

7.1

Adjustments.
Upon or in contemplation of (a) any reclassification, recapitalization, stock split (including a stock split in the form of a stock
dividend) or reverse stock split (“stock split”), (b) any merger, arrangement, combination, consolidation, or
other reorganization, (c) any spin-off, split-up, or similar extraordinary dividend distribution in respect of the Common Stock
(whether in the form of securities or property), or (d) any exchange of Common Stock or other securities of the Corporation, or
any similar, unusual or extraordinary corporate transaction in respect of the Common Stock, the Administrator shall in such manner,
to such extent and at such time as it deems appropriate and equitable in the circumstances (but subject to compliance with applicable
laws and stock exchange requirements) proportionately adjust any or all of (1) the number and type of shares of Common Stock
(or other securities) that thereafter may be made the subject of awards (including the Share Limit), (2) the number, amount
and type of shares of Common Stock (or other securities or property) subject to any or all outstanding awards, (3) the grant,
purchase, or exercise price (which term includes the base price of any SAR or similar right) of any or all outstanding awards,
(4) the securities, cash or other property deliverable upon exercise or payment of any outstanding awards, and (5) the non-employee
director compensation limitations set forth in Section 9, below. Any adjustment made pursuant to this Section 7.1 shall be made
in a manner that, in the good faith determination of the Administrator, will not likely result in the imposition of additional
taxes or interest under Section 409A of the Code. With respect to any award of an ISO, the Administrator may make such an adjustment
that causes the option to cease to qualify as an ISO without the consent of the affected participant.

7.2

Change in Control.
The Administrator, in its sole and absolute discretion, may choose (in an award agreement or otherwise) to provide for full or
partial accelerated vesting of any award upon a Change in Control, or upon any other event or other circumstance related to the
Change in Control, such as an involuntary termination of employment occurring after such Change in Control, as the Administrator
may determine. Notwithstanding the foregoing, in the event the Administrator does not make appropriate provision
for the substitution, assumption, exchange or other continuation of the award pursuant to the Change in Control, then each then-outstanding
option and SAR shall automatically become fully vested, and all shares of restricted stock then outstanding shall automatically
fully vest free of restrictions.

For purposes of this
Plan, “Change in Control” shall be deemed to have occurred if the event set forth in any one of the following
paragraphs shall have occurred:

(a)

The acquisition
by any individual, entity or group (within the meaning of Section 13(d)(3) of the Exchange Act (a “Person”))
of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than 50% of the combined
voting power of the then-outstanding voting securities of the Corporation entitled to vote generally in the election of directors
(the “Outstanding Company Voting Securities”); provided, however, that, for purposes of this definition, the
following acquisitions shall not constitute a Change in Control; (A) any acquisition directly from the Corporation, (B) any acquisition
by the Corporation, (C) any acquisition by John Saunders or Leann Saunders (collectively the “Principals”),
or by any “group” (within the meaning of Section 13(d)(3) of the Exchange Act) that is controlled by one or more of
the Principals; (D) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Corporation
or any affiliate of the Corporation or a successor, or (E) any acquisition by any entity pursuant to a transaction that complies
with Sections (c)(1), (2) and (3) below;

 

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(b)

Individuals who,
as of the effective date of the Plan, constitute the Board (the “Incumbent Board”) cease for any reason to constitute
at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the effective date of
the Plan whose election, or nomination for election by the Corporation’s stockholders, was approved by a vote of at least
two-thirds of the directors then comprising the Incumbent Board (including for these purposes, the new members whose election or
nomination was so approved, without counting the member and his predecessor twice) shall be considered as though such individual
were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs
as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person other than the Board;

(c)

Consummation
of a reorganization, merger, statutory share exchange or consolidation or similar corporate transaction involving the Corporation
or any of its Subsidiaries, a sale or other disposition of all or substantially all of the assets of the Corporation, or the acquisition
of assets or stock of another entity by the Corporation or any of its Subsidiaries (each, a “Business Combination”),
in each case unless, following such Business Combination, (1) all or substantially all of the individuals and entities that were
the beneficial owners of the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially
own, directly or indirectly, more than 50% of the the combined voting power of the then-outstanding voting securities entitled
to vote generally in the election of directors, as the case may be, of the entity resulting from such Business Combination (including,
without limitation, an entity that, as a result of such transaction, owns the Corporation or all or substantially all of the Corporation’s
assets directly or through one or more subsidiaries (a “Parent”)) in substantially the same proportions as their
ownership immediately prior to such Business Combination of the Outstanding Company Voting Securities, as the case may be, (2)
no Person (excluding any entity resulting from such Business Combination or a Parent or any employee benefit plan (or related trust)
of the Corporation or such entity resulting from such Business Combination or Parent) beneficially owns, directly or indirectly,
more than 50% of, respectively, the combined voting power of the then-outstanding voting securities of the entity resulting from
such Business Combination, except to the extent that the ownership in excess of more than 50% existed prior to the Business Combination,
and (3) at least a majority of the members of the board of directors or trustees of the entity resulting from such Business Combination
or a Parent were members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the Board
providing for such Business Combination; or

(d)

Approval by the
stockholders of the Corporation of a complete liquidation or dissolution of the Corporation other than in the context of a transaction
that does not constitute a Change in Control Event under clause (c) above.

No compensation that
has been deferred for purposes of Section 409A of the Code shall be payable as a result of a Change in Control unless the Change
in Control qualifies as a change in ownership or effective control of the Corporation within the meaning of Section 409A of the
Code.

 

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7.3

Early Termination
of Awards. Any award that has been accelerated as required or permitted by Section 7.2 upon a Change in Control (or
would have been so accelerated but for Section 7.4 or 7.5) shall terminate upon such event, subject to any provision that
has been expressly made by the Administrator, through a plan of reorganization or otherwise, for the survival, substitution, assumption,
exchange or other continuation of such award and provided that, in the case of options and SARs that will not survive, be substituted,
assumed, exchanged, or otherwise continued in the transaction, the holder of such award shall be given reasonable advance notice
of the impending termination and a reasonable opportunity to exercise his or her outstanding options and SARs in accordance with
their terms before the termination of such awards (except that in no case shall more than ten days’ notice of accelerated
vesting and the impending termination be required and any acceleration may be made contingent upon the actual occurrence of the
event).

The Administrator
may make provision for payment in cash or property (or both) in respect of awards terminated pursuant to this Section as a result
of the Change in Control and may adopt such valuation methodologies for outstanding awards as it deems reasonable and, in the case
of options, SARs or similar rights, and without limiting other methodologies, may base such settlement solely upon the excess if
any of the per share amount payable upon or in respect of such event over the exercise or base price of the award.

7.4

Other Acceleration
Rules. Any acceleration of awards pursuant to this Section 7 shall comply with applicable legal and stock exchange
requirements and, if necessary to accomplish the purposes of the acceleration or if the circumstances require, may be deemed by
the Administrator to occur a limited period of time not greater than 30 days before the event. Without limiting the generality
of the foregoing, the Administrator may deem an acceleration to occur immediately prior to the applicable event and/or reinstate
the original terms of an award if an event giving rise to the acceleration does not occur. Notwithstanding any other provision
of the Plan to the contrary, the Administrator may override the provisions of Section 7.2, 7.3, and/or 7.5 by express provision
in the award agreement or otherwise. The portion of any ISO accelerated pursuant to Section 7.2 or any other action permitted
hereunder shall remain exercisable as an ISO only to the extent the applicable $100,000 limitation on ISOs is not exceeded. To
the extent exceeded, the accelerated portion of the option shall be exercisable as a nonqualified stock option under the Code.

7.5

Possible Rescission
of Acceleration. If the vesting of an award has been accelerated expressly in anticipation of an event and the Administrator
later determines that the event will not occur, the Administrator may rescind the effect of the acceleration as to any then outstanding
and unexercised or otherwise unvested awards; provided, that, in the case of any compensation that has been deferred for
purposes of Section 409A of the Code, the Administrator determines that such rescission will not likely result in the imposition
of additional tax or interest under Section 409A of the Code.

 

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8.

OTHER
PROVISIONS

8.1

Compliance with
Laws. This Plan, the granting and vesting of awards under this Plan, the offer, issuance and delivery of shares of Common
Stock, the payment of money under this Plan or under awards are subject to compliance with all applicable federal and state laws,
rules and regulations and to such approvals by any applicable stock exchange listing, regulatory or governmental authority as may,
in the opinion of counsel for the Corporation, be necessary or advisable in connection therewith. The person acquiring any securities
under this Plan will, if requested by the Corporation or one of its Subsidiaries, provide such assurances and representations to
the Corporation or one of its Subsidiaries as the Administrator may deem necessary or desirable to assure compliance with all applicable
legal and accounting requirements.

8.2

Future Awards/Other
Rights. No person shall have any claim or rights to be granted an award (or additional awards, as the case may be) under
this Plan, subject to any express contractual rights (set forth in a document other than this Plan) to the contrary.

8.3

No Employment/Service
Contract. Nothing contained in this Plan (or in any other documents under this Plan or in any award) shall confer upon
any Eligible Person or other participant any right to continue in the employ or other service of the Corporation or one of its
Subsidiaries, constitute any contract or agreement of employment or other service or affect an employee’s status as an employee
at will, nor shall interfere in any way with the right of the Corporation or one of its Subsidiaries to change a person’s
compensation or other benefits, or to terminate his or her employment or other service, with or without cause. Nothing in this
Section 8.3, however, is intended to adversely affect any express independent right of such person under a separate employment
or service contract other than an award agreement.

8.4

Plan Not Funded.
Awards payable under this Plan shall be payable in shares or from the general assets of the Corporation, and no special or separate
reserve, fund or deposit shall be made to assure payment of such awards. No participant, beneficiary or other person shall have
any right, title or interest in any fund or in any specific asset (including shares of Common Stock, except as expressly otherwise
provided) of the Corporation or one of its Subsidiaries by reason of any award hereunder. Neither the provisions of this Plan (or
of any related documents), nor the creation or adoption of this Plan, nor any action taken pursuant to the provisions of this Plan
shall create, or be construed to create, a trust of any kind or a fiduciary relationship between the Corporation or one of its
Subsidiaries and any participant, beneficiary or other person. To the extent that a participant, beneficiary or other person acquires
a right to receive payment pursuant to any award hereunder, such right shall be no greater than the right of any unsecured general
creditor of the Corporation.

8.5

Tax Withholding.
Upon any exercise, vesting, or payment of any award, the Corporation or one of its Subsidiaries shall have the right at its option
to:

(a)

require the participant
(or the participant’s personal representative or beneficiary, as the case may be) to pay or provide for payment of at least
the minimum amount of any taxes which the Corporation or one of its Subsidiaries may be required to withhold with respect to such
award event or payment; or

(b)

deduct from any
amount otherwise payable in cash to the participant (or the participant’s personal representative or beneficiary, as the
case may be) the minimum amount of any taxes which the Corporation or one of its Subsidiaries may be required to withhold with
respect to such cash payment.

 

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In any case where
a tax is required to be withheld in connection with the delivery of shares of Common Stock under this Plan, the Administrator may
in its sole discretion (subject to Section 8.1) grant (either at the time of the award or thereafter) to the participant the
right to elect, pursuant to such rules and subject to such conditions as the Administrator may establish, to have the Corporation
reduce the number of shares to be delivered by (or otherwise reacquire) the appropriate number of shares, valued in a consistent
manner at their Fair Market Value or at the sales price in accordance with authorized procedures for cashless exercises, necessary
to satisfy the minimum applicable withholding obligation on exercise, vesting or payment. In no event shall the shares withheld
exceed the minimum whole number of shares required for tax withholding under applicable law.

8.6

Effective Date,
Termination and Suspension, Amendments.

8.6.1

Effective
Date and Termination. This Plan was approved by the Board and shall become effective upon approval by the stockholders
at the Company’s next Annual Meeting (the “Effective Date”). Unless earlier terminated by the Board,
this Plan shall terminate at the close of business ten years after the date on which it was approved by the Board. After the termination
of this Plan either upon such stated expiration date or its earlier termination by the Board, no additional awards may be granted
under this Plan, but previously granted awards (and the authority of the Administrator with respect thereto, including the authority
to amend such awards) shall remain outstanding in accordance with their applicable terms and conditions and the terms and conditions
of this Plan.

8.6.2

Board Authorization.
The Board may, at any time, terminate or, from time to time, amend, modify or suspend this Plan, in whole or in part. No awards
may be granted during any period that the Board suspends this Plan.

8.6.3

Stockholder
Approval. To the extent then required by applicable law or any applicable stock exchange or required under Sections 162,
422 or 424 of the Code to preserve the intended tax consequences of this Plan, or deemed necessary or advisable by the Board, this
Plan and any amendment to this Plan shall be subject to approval by the stockholders of the Corporation.

8.6.4

Amendments
to Awards. Without limiting any other express authority of the Administrator under (but subject to) the express limits
of this Plan, the Administrator by agreement or resolution may waive conditions of or limitations on awards to participants that
the Administrator in the prior exercise of its discretion has imposed, without the consent of a participant, and (subject to the
requirements of Sections 3.2 and 8.6.5) may make other changes to the terms and conditions of awards. Any amendment or other
action that would constitute a repricing of an award is subject to the limitations set forth in Section 3.2(g).

8.6.5

Limitations
on Amendments to Plan and Awards. No amendment, suspension or termination of this Plan or change of or affecting any outstanding
award shall, without written consent of the participant, affect in any manner materially adverse to the participant any rights
or benefits of the participant or obligations of the Corporation under any award granted under this Plan. Changes, settlements
and other actions contemplated by Section 7 shall not be deemed to constitute changes or amendments for purposes of this Section 8.6.

 

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8.7

Privileges of
Stock Ownership. Except as otherwise expressly authorized by the Administrator or this Plan, a participant shall not be
entitled to any privilege of stock ownership as to any shares of Common Stock not actually delivered to and held of record by the
participant. Except as expressly provided herein, no adjustment will be made for dividends or other rights as a stockholder of
the Corporation for which a record date is prior to such date of delivery.

8.8

Governing Law;
Construction; Severability.

8.8.1

Choice
of Law. This Plan, the awards, all documents evidencing awards and all other related documents shall be governed by, and
construed in accordance with the laws of the State in which the Corporation is incorporated.

8.8.2

Severability.
If a court of competent jurisdiction holds any provision of this Plan invalid and unenforceable, the remaining provisions of this
Plan shall continue in effect.

8.8.3

Plan Construction.

(a)

Rule 16b-3.
It is the intent of the Corporation that the awards and transactions permitted by awards be interpreted in a manner that, in the
case of participants who are or may be subject to Section 16 of the Exchange Act, qualify, to the maximum extent compatible
with the express terms of the award, for exemption from matching liability under Rule 16b-3 promulgated under the Exchange
Act. Notwithstanding the foregoing, the Corporation shall have no liability to any participant for Section 16 consequences
of awards or events under awards if an award or event does not so qualify.

(b)

Compliance
with Section 409A of the Code. The Board intends that, except as may be otherwise determined by the Administrator, any
awards under the Plan will be either exempt from or satisfy the requirements of Section 409A of the Code and related regulations
and Treasury pronouncements (“Section 409A”) to avoid the imposition of any taxes, including additional
income or penalty taxes, thereunder. If the Administrator determines that an award, award agreement, acceleration, adjustment to
the terms of an award, payment, distribution, deferral election, transaction or any other action or arrangement contemplated by
the provisions of the Plan would, if undertaken, cause a participant’s award to become subject to Section 409A, unless
the Administrator expressly determines otherwise, such award, award agreement, payment, acceleration, adjustment, distribution,
deferral election, transaction or other action or arrangement shall not be undertaken and the related provisions of the Plan and/or
award agreement will be deemed modified or, if necessary, rescinded in order to comply with the requirements of Section 409A
to the extent determined by the Administrator without the consent of or notice to the participant. Notwithstanding the foregoing,
neither the Corporation nor the Administrator shall have any obligation to take any action to prevent the assessment of any excise
tax or penalty on any participant under Section 409A and neither the Corporation nor the Administrator will have any liability
to any participant for such tax or penalty.

 

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(c)

No Guarantee
of Favorable Tax Treatment. Although the Corporation intends that awards under the Plan will be exempt from, or will comply
with, the requirements of Section 409A of the Code, the Corporation does not warrant that any award under the Plan will qualify
for favorable tax treatment under Section 409A of the Code or any other provision of federal, state, local or foreign law.
The Corporation shall not be liable to any participant for any tax, interest or penalties the participant might owe as a result
of the grant, holding, vesting, exercise or payment of any award under the Plan.

8.9

Captions.
Captions and headings are given to the sections and subsections of this Plan solely as a convenience to facilitate reference. Such
headings shall not be deemed in any way material or relevant to the construction or interpretation of this Plan or any provision
thereof.

8.10

Stock-Based
Awards in Substitution for Stock Options or Awards Granted by Other Corporation. Awards may be granted to Eligible Persons
in substitution for or in connection with an assumption of employee stock options, SARs, restricted stock or other stock-based
awards granted by other entities to persons who are or who will become Eligible Persons in respect of the Corporation or one of
its Subsidiaries, in connection with a distribution, arrangement, business combination, merger or other reorganization by or with
the granting entity or an affiliated entity, or the acquisition by the Corporation or one of its Subsidiaries, directly or indirectly,
of all or a substantial part of the stock or assets of the employing entity. The awards so granted need not comply with other specific
terms of this Plan, provided the awards reflect only adjustments giving effect to the assumption or substitution consistent with
the conversion applicable to the Common Stock in the transaction and any change in the issuer of the security. Any shares that
are delivered and any awards that are granted by, or become obligations of, the Corporation, as a result of the assumption by the
Corporation of, or in substitution for, outstanding awards previously granted by an acquired company (or previously granted by
a predecessor employer (or direct or indirect parent thereof) in the case of persons that become employed by the Corporation or
one of its Subsidiaries in connection with a business or asset acquisition or similar transaction) shall not be counted against
the Share Limit or other limits on the number of shares available for issuance under this Plan, except as may otherwise be provided
by the Administrator at the time of such assumption or substitution or as may be required to comply with the requirements of any
applicable stock exchange.

8.11

Non-Exclusivity
of Plan. Nothing in this Plan shall limit or be deemed to limit the authority of the Board or the Administrator to grant
awards or authorize any other compensation, with or without reference to the Common Stock, under any other plan or authority.

8.12

No Corporate
Action Restriction. The existence of this Plan, the award agreements and the awards granted hereunder shall not limit,
affect or restrict in any way the right or power of the Board or the stockholders of the Corporation to make or authorize: (a) any
adjustment, recapitalization, reorganization or other change in the capital structure or business of the Corporation or any Subsidiary,
(b) any merger, arrangement, business combination, amalgamation, consolidation or change in the ownership of the Corporation
or any Subsidiary, (c) any issue of bonds, debentures, capital, preferred or prior preference stock ahead of or affecting
the capital stock (or the rights thereof) of the Corporation or any Subsidiary, (d) any dissolution or liquidation of the
Corporation or any Subsidiary, (e) any sale or transfer of all or any part of the assets or business of the Corporation or
any Subsidiary, or (f) any other corporate act or proceeding by the Corporation or any Subsidiary. No participant, beneficiary
or any other person shall have any claim under any award or award agreement against any member of the Board or the Administrator,
or the Corporation or any employees, officers or agents of the Corporation or any Subsidiary, as a result of any such action.

 

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8.13

Other Corporation
Benefit and Compensation Programs. Payments and other benefits received by a participant under an award made pursuant to
this Plan shall not be deemed a part of a participant’s compensation for purposes of the determination of benefits under
any other employee welfare or benefit plans or arrangements, if any, provided by the Corporation or any Subsidiary, except where
the Administrator expressly otherwise provides or authorizes in writing or except as otherwise specifically set forth in the terms
and conditions of such other employee welfare or benefit plan or arrangement. Awards under this Plan may be made in addition to,
in combination with, as alternatives to or in payment of grants, awards or commitments under any other plans or arrangements of
the Corporation or its Subsidiaries.

8.14

Non-Competition,
Code of Ethics and Clawback Policy. By accepting awards and as a condition to the exercise of awards and the enjoyment
of any benefits of the Plan, including participation therein, each participant agrees to be bound by and subject to non-competition,
confidentiality and invention ownership agreements acceptable to the Administrator and the Corporation’s code of ethics policy
and other policies applicable to such participant as is in effect from time to time. Awards shall be subject to any clawback policy
adopted by the Corporation from time to time.

9.

DIRECTOR
COMPENSATION PROVISIONS

9.1

Plan Exclusive
Vehicle for Non-Employee Director Cash and Equity Compensation. All cash and equity compensation paid or provided to the
Corporation’s non-employee directors shall be awarded under the terms and conditions of this Plan.

9.2

Non-Employee
Director Compensation. Non-employee directors may be awarded any of the types of awards described in Section 5 above for
which they are eligible under the terms and conditions of Section 5, above.

9.2.1

Cash Awards.
Cash awards (as described in Section 5.1.5) may take any form determined by the Administrator in its sole and absolute discretion,
including, but not limited to, retainers, committee fees, chairperson fees, per meeting fees, and special fees for committee service.
In no event shall Cash awards paid to any non-employee director exceed $400,000 in any fiscal year.

9.2.2

Equity
Awards. Equity Awards (described in Sections 5.1.1, 5.1.3, 5.1.4. and 5.1.5) may take any form determined by the Administrator
in its sole and absolute discretion, provided, however, that in no event shall awards granted to an non-employee director in any
fiscal year cover more than 50,000 shares of Common Stock (with the number of shares covered by awards determined based on the
maximum number of shares potentially issuable pursuant to such awards).

As adopted by the Board of Directors
of Where Food Comes From, Inc. on March 15, 2016.

 

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