Document:

Exhibit10.1

Exhibit 10.1

October 16, 2013
Mr. Jonathan F. Pedersen 
16 Shek O 
Hong Kong

Dear Jon:
We are pleased to offer you the position of Chief Legal Officer/General Counsel and Secretary at Waiter Investment Management Corp. (“Walter” or the “Company”). We believe that you have the potential to add significant value to the Walter business and look forward to your joining the team. The purpose of this letter agreement (this “Agreement”) is to outline the terms of your employment with the Company. This offer is contingent upon the satisfactory completion of background, reference and credit checks, and a drug test, which Walter acknowledges has been completed as of the date of execution.
		
	1.
	As Chief Legal Officer/General Counsel and Secretary, you will report to and serve at the direction of the Chief Executive Officer of the Company. In your capacity as Chief Legal Officer/General Counsel and Secretary, you will be responsible for managing corporate legal matters, advising management and the Board of Directors of the Company (the “Board of Directors” or the “Board”) on legal and corporate governance issues, serving as Secretary of the Company and its Board of Directors in accordance with its charter, by-laws and any legal requirements, ensuring compliance with Securities and Exchange Commission (“SEC”), stock exchange and other securities law and public reporting company matters, and providing senior management oversight and Board of Director support for executive compensation matters. Such responsibilities may change from time to time; provided that such changed responsibilities shall be consistent in all material respects with your title.

		
	2.
	While employed hereunder, you will be eligible to receive the following payments and benefits:

		
	(a)
	Base Salary

Your base salary will be $430,000 per year which shall be subject to annual review and potential increase (but not decrease) by the Board of Directors and paid in accordance with the regular payroll practices of the Company, as they may 

3000 Bayport Drive, Suite 1100, Tampa, Florida 33607
813.421.7600     www.walterinvestment.com
        

change from time to time. Your base salary, as in effect from time to time, is hereinafter referred to as the “Base Salary.”
		
	(b)
	Sign-On Bonus/Equity

		
	(i)
	We have agreed to pay you, in a cash lump sum payment, a signing bonus of $200,000 (the “Sign-On Bonus”), on the first payroll date to occur following the completion of 30 days of employment, provided you are employed on the payment date or your employment has been terminated by the Company other than for Cause (as defined below) prior to the payment date. In the event that you voluntarily leave the Company (other than as a result of Constructive Termination (as defined below)), or your employment is terminated by the Company for Cause, in either case, within three years of the date of the commencement of your employment with Walter (such actual commencement date, the “Start Date”), you will be required to repay, on a pro-rated basis based on a fraction, the numerator of which is 36 less the number of full months of employment with the Company you have completed since the Start Date and the denominator of which is 36, any Sign-On Bonus paid within thirty (30) days of the termination date.

		
	(ii)
	You will be granted an award of 20,000 restricted stock units (“RSUs”) on the Start Date, which shall be evidenced by a grant agreement incorporating the following terms. Subject to your continued employment through each applicable vesting date, the RSUs shall vest and all restrictions shall lapse as follows: 50% of the RSUs shall vest and the restrictions shall lapse on the date that is eighteen (18) months following the date of grant and the remaining 50% of the RSUs shall vest and the restrictions shall lapse on the date that is thirty-six (36) months following the date of grant and, in each case, the RSUs will be settled in shares of common stock of the Company as soon as administratively feasible after the applicable vesting date, but in no event more than thirty (30) days thereafter. In the event that, prior to the applicable vesting date, you voluntarily leave the Company (other than as a result of Constructive Termination), or your employment is terminated by the Company for Cause, any unvested RSUs will be forfeited. In the event that your employment terminates due to your death or Disability (as defined below), or there is a Change of Control (as defined below) of the Company and your position is eliminated within six months of such Change of Control, any outstanding unvested RSUs will vest immediately. In the event that you voluntarily leave the Company as a result of Constructive Termination or your employment is terminated by the Company other than for Cause, any outstanding unvested RSUs will vest immediately. For purposes of this Agreement, (x) “Change of Control” shall mean a change of ownership of the Company, a change in the effective control of the 

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Company, or a change in the ownership of a substantial portion of the assets of the Company, in each case, within the meaning of Treas. Reg. Section 1.409A-3(i)(5) and (y) “Disability” shall mean your inability or failure to perform your duties hereunder for a period of ninety (90) consecutive days or a total of one hundred twenty (120) days during any twelve (12) month period due to any physical or mental illness or impairment, or a determination by a medical doctor chosen by the Company to the effect that you are substantially unable to perform your duties hereunder due to any physical or mental illness or impairment. The RSUs shall be subject to such other terms and conditions as may be established by the Company’s Compensation Committee and shall be awarded under and subject to the terms and conditions of the Company’s 2011 Omnibus Incentive Plan.
		
	(c)
	Bonus

You will be eligible to participate in the Company’s Management Incentive Plan, as it may be amended from time to time (the “MIP”) and you will be eligible to earn an annual target bonus under the MIP of 150% of your Base Salary or $645,000 at your current Base Salary, with the potential to increase your bonus to a maximum of 200% of your Base Salary or $860,000 at your current Base Salary in accordance with the terms of the MIP; provided, however, that the actual amount of your bonus will be dependent upon the achievement of annual financial and other goals consistent with those established for other members of executive management, as well as the accomplishment of individual objectives, established annually no later than the end of the second quarter of the Company’s fiscal year and communicated to you in writing (the actual bonus awarded to you in any given year, which may be greater or less than your target bonus, and may be zero if minimum thresholds are not met, is referred to herein as your “Annual Bonus” for that year (the “Bonus Year”). Unless otherwise expressly provided for herein, in order to be eligible to receive an Annual Bonus you must be employed by the Company at the time the bonus is paid. The bonus for any Bonus Year will be payable to you in accordance with the terms of the MIP at the same time as other senior executives of the Company are paid, after the Company closes its books for the Bonus Year. Notwithstanding anything to the contrary in the MIP, provided that you are employed by the Company at the time your Annual Bonus in respect of the 2013 calendar year is paid, such bonus will be pro-rated based on the percentage of the 2013 calendar year that will have elapsed from your Start Date through December 31, 2013. For calendar year 2014, notwithstanding anything to the contrary in the MIP, provided that you are employed by the Company at the time the bonus is paid, you will be guaranteed an Annual Bonus in cash of 150% of your Base Salary or $645,000 at your current Base Salary, payable under the terms and conditions of the 2014 MIP (the “2014 Guaranteed Bonus”). Notwithstanding anything herein to the contrary, with respect to any Annual Bonus to be paid, such bonus shall be paid in accordance with the Company’s 

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annual 162(m) bonus plan and to the extent required, shall be structured to comply with Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”) as performance based compensation thereunder; provided however, any portion of the Annual Bonus not deductible by the Company, shall be deferred until it can be paid by the Company on a tax deductible basis.
		
	(d)
	Long-Term Incentive

You will be entitled to participate in the Company’s long-term incentive plan(s) as in effect from time to time, beginning with the 2014 Company award cycle, and, subject to your continued employment through and including the grant date, will receive a grant under the plan(s) with a minimum economic value of $500,000 on the date of the award. The components (including the equity vehicle) and terms of any award, and the methodology for determining the economic value for such awards shall be as provided in the plan(s) or otherwise as determined by the Company’s Compensation Committee in its discretion and provided to you in a grant document memorializing such terms.
		
	(e)
	Benefits

		
	(i)
	You will be entitled to receive from the Company prompt reimbursement for all reasonable out-of-pocket business expenses incurred by you in the performance of your duties hereunder, in accordance with the most favorable policies, practices and procedures of the Company relating to reimbursement of business expenses incurred by Company directors, officers or employees in effect at any time during the 12 month period preceding the date you incur the expenses; provided, however, that any such expense reimbursement will be made no later than the last day of the calendar year following the calendar year in which you incur the expense, will not affect the expenses eligible for reimbursement in any other calendar year, and cannot be liquidated or exchanged for any other benefit.

		
	(ii)
	You will be eligible to participate in the Company’s group life and health insurance benefit programs that are generally applicable to executives, in accordance with their terms, as they may change from time to time.

		
	(iii)
	You will be eligible to participate in the Company’s retirement plan that is generally applicable to salaried employees, as it may change from time to time and in accordance with its terms, Your eligibility to participate will be consistent with the requirements of ERISA.

		
	(iv)
	You will be entitled to 30 days of annual vacation with carryover to be treated as per the Company’s vacation policy, as it may change from time to time.

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	(v)
	Your Benefits under this Agreement, including grants to you under the Company’s long-term incentive plan(s), will be subject to periodic review and increase by the Board of Directors.

		
	(f)
	Recapitalization

Any equity award agreement will provide that in the event of any change in the capitalization of the Company such as a stock split or a corporate transaction such as a merger, consolidation, separation or otherwise, the number and class of any equity you may have received, shall be equitably adjusted by the Compensation Committee, in its sole discretion, to prevent dilution or enlargement of rights.
		
	(g)
	Relocation

It is agreed and understood that in order to perform the functions of your position you will be required to relocate to the Tampa, Florida area. Such relocation is reasonably expected to occur no later than 180 days following the Start Date. You will be provided with relocation assistance for your move to the Tampa area, up to a maximum reimbursement amount of $250,000, for reasonable rent (to the extent applicable) and reasonable relocation expenses, including the cost of packing, insuring and transporting normal household goods using a carrier acceptable to Walter, customary closing costs associated with the purchase of a new home and for broker fees on your current residence up to 6%, if you sell/list your home during the first 12 months of the Start Date; provided, however, that any such expense reimbursement will be made no later than the last day of the calendar year following the calendar year in which you incur the expense, will not affect the expenses eligible for reimbursement in any other calendar year, and cannot be liquidated or exchanged for any other benefit. Should you voluntarily terminate your employment (other than as a result of Constructive Termination) or if your employment is terminated by the Company for Cause, in each case, within two years of your Start Date, you will be required to repay your relocation assistance at a pro-rated amount, pro-rated, in the same manner as the Sign-On Bonus, within thirty (30) days of the termination date.
		
	3.
	It is agreed and understood that your employment with the Company is to be at will, and either you or the Company may terminate the employment relationship at any time for any reason, with or without Cause, and with or without notice to the other; nothing herein or elsewhere constitutes or shall be construed as a commitment to employ you or to pay you severance, other than as stated herein, for any period of time.

		
	4.
	Outside Interests: While employed by Walter, you agree to devote your full business time and best efforts to the performance of your duties hereunder and will not engage in any other business, profession or occupation for compensation or otherwise which would conflict or interfere with the rendition of such services either directly or indirectly without the prior written consent of the Chief Executive Officer. Notwithstanding the foregoing, you may manage your personal finances and engage in charitable and civic 

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activities, so long as such activities do not conflict or interfere with the performance of your responsibilities hereunder.
		
	5.
	You agree that all inventions, improvements, trade secrets, reports, manuals, computer programs, systems, tapes and other ideas and materials developed or invented by you during the period of your employment with the Company, either solely or in collaboration with others, which relate to the actual or anticipated business or research of the Company, which result from or are suggested by any work you may do for the Company, or which result from use of the Company’s premises or the Company’s customers’ property (collectively, the “Developments”) shall be the sole and exclusive property of Walter. You hereby assign to the Company your entire right and interest in any such Developments, and will hereafter execute any documents in connection therewith that Walter may reasonably request.

		
	6.
	As an inducement to the Company to make this offer to you, you represent and warrant that, as of the Start Date, you are not a party to any agreement or obligation for personal services, and there exists no impediment or restraint, contractual or otherwise on your power, right or ability to accept this offer and to perform the duties and obligations specified herein.

		
	7.
	In the event that your employment is terminated for any reason, you will receive (i) accrued but unpaid Base Salary earned through the date of termination, payable in accordance with the Company’s usual payment practices plus (ii) payment for any accrued but unused vacation days, to the extent, and in the amounts provided under the Company’s usual policies and arrangements (the “Accrued Obligations”).

Separately, and, in addition to the Accrued Obligations and any vesting of equity-based awards as expressly provided for herein, in the event that your employment(x) is terminated by the Company without Cause, (y) is terminated by you as a result of Constructive Termination, or (z) terminates due to Disability or death (clauses (x) —(z), each, a “Good Leaver Termination”), in each case, the Company will continue to pay (i) your Base Salary as in effect on the termination date for a period of eighteen (18) months, payable in accordance with the Company’s normal payroll practices, as they may change from time to time, (ii) your Annual Bonus (which shall be in an amount that is consistent with other Company executives of your level) for a period of eighteen (18) months, payable at the same time Annual Bonuses would otherwise be payable had you remained employed during such period, (iii) any earned but unpaid Annual Bonus for any year preceding the year in which the date of termination occurs and a pro-rated Annual Bonus for the year of termination, in each case, payable in accordance with the terms of the MIP, and (iv) the Company’s contribution towards your health, dental and vision benefits for a period of eighteen (18) months. In the event such termination occurs prior to the date on which payment of the 2014 Guaranteed Bonus would have been paid had your employment not terminated, the bonus calculation under this paragraph with regard to the payment of any bonus calculated using the 2014 calendar year shall be no less than $645,000 and that part of the bonus shall be paid in cash. For the sake of clarity, should 

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your employment terminate pursuant to clause (x), (y) or (z) above on June 30 of any given year, you will be paid the pro-rated Annual Bonus for the year in which your employment terminated, plus, the balance of the Annual Bonus for the remainder of the year in which your employment terminated (i.e., the Annual Bonus for the first six months of your 18 month severance period) plus the full Annual Bonus for the following year (the Annual Bonus for the remaining 12 months of the 18 month severance period).
Payment of the foregoing severance payments and benefits is subject to (a) your execution, delivery and non-revocation of a release, including a release of any claims against the Company and its subsidiaries, substantially in the form attached hereto as Appendix 1 within thirty (30) days following the termination of your employment, (b) your compliance with the provisions of Sections 8 and 9 of this Agreement, and (c) your resignation, effective as of the date of your termination of employment, as an officer and/or director of the Company or any of its subsidiaries or affiliates. In order to be entitled to the foregoing in the event of Constructive Termination, you must provide written notice, including details describing the basis of your claim, to the Company within 60 days of the occurrence of the event(s) giving rise to a claim of Constructive Termination, and the Company will have 30 days to remedy any non-compliance. In the event the Company fails or is unable to remedy any non-compliance, the effective date of your termination of employment shall be 90 days from the date the Company received notice, unless otherwise agreed in writing by you and the Company. Should you fail to provide the foregoing notice, you will thereafter be barred from receiving treatment under the Constructive Termination definition based upon the events giving rise to the claim.
Any grants of equity that you receive subsequent to the date of this Agreement and the disposition of such awards shall be subject to the terms and conditions of the plan or program under which the awards are granted; provided; however, that, to the extent not inconsistent with such plan or program, any such awards will provide that, in the event of a Good Leaver Termination, all such outstanding unvested awards shall immediately vest.
For purposes of this Agreement, “Cause” shall mean (A) conviction of, or plea of guilty or nolo contendere to, a felony arising from any act of fraud, embezzlement or willful dishonesty in relation to the business or affairs of the Company, (B) conviction of, or plea of guilty or nolo contendere to, any other felony which is materially injurious to the Company or its reputation or which compromises your ability to perform your job function, and/or act as a representative of the Company, or (C) a willful failure to attempt to substantially perform your duties (other than any such failure resulting from your Disability), after a written demand for substantial performance is delivered to you that specifically identifies the manner in which the Company believes that you have not attempted to substantially perform such duties, and you have failed to remedy the situation, to the extent possible, within fifteen (15) business days of such written notice from the Company or such longer time as may be reasonably required to remedy the situation, but no longer than forty-five (45) calendar days. For purposes of this definition, no act or failure to act on your part shall be considered to be Cause if done, or omitted to be done, by you in good faith and with the reasonable belief that the action or omission 

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was in the best interests of, or were not, in fact, materially detrimental to the Company or a Company subsidiary.
For purposes of this Agreement, “Constructive Termination” shall mean, without your written consent: (A) a material failure of the Company to comply with the provisions of this Agreement; (B) a material diminution of your position (including status, offices, title and reporting relationships), duties or responsibilities or pay; (C) any purported termination of your employment other than for Cause; or (D) if you are required to relocate more than 50 miles from the Company’s Tampa, Florida location; provided however, that any isolated, insubstantial or inadvertent change, condition, failure or breach described under clauses (A) — (D) above which is not taken in bad faith and is remedied by the Company promptly after the Company’s actual receipt of notice from you as provided in this Section 7 shall not constitute Constructive Termination. For purposes of this Agreement, a material diminution in pay shall not be deemed to have occurred if the amount of your bonus fluctuates due to (i) a failure of the Company to meet financial targets or performance considerations under the MP or other Company incentive plan applicable to you and in effect from time to time or (ii) you experience a reduction in salary that is relatively comparable to reductions imposed upon all senior executives of the Company. To be entitled to severance benefits on the basis of Constructive Termination, the event causing Constructive Termination must not be implemented for the purpose of avoiding the restrictions of Section 409A of the Code.
Notwithstanding anything herein or in any agreement you may enter into subsequent to the date of this Agreement to the contrary, in connection with any termination of employment by you due to “retirement”, you shall be treated generally in the same manner as any other senior executive of the Company who reports directly to the Chief Executive Officer who retires within six (6) months prior to or six (6) months following, in each case, the date of your termination due to “retirement”, as it relates to the definition of “retirement” and treatment of compensation, equity-based awards and benefits other than in the case of any special, unique or one-time “retirement” treatment for a senior executive of the Company as may be approved by the Company’s Compensation Committee in its sole and absolute discretion.
		
	8.
	Non-Compete/Non-Solicit. It is understood and agreed that you will have substantial relationships with specific businesses and personnel, prospective and existing, vendors, contractors, customers, and employees of the Company that result in the creation of customer goodwill. It is also understood and agreed that the business of the Company is national in scope and that your duties could be conducted remotely. Therefore, while employed by the Company and continuing for a period of eighteen (18) months following the termination of your employment for any reason (the “Restricted Period”), unless the Board of Directors approves an exception, you shall not, directly or indirectly, for yourself or on behalf of, or in conjunction with, any other person, persons, company, partnership, corporation, business entity or otherwise:

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	(a)
	Call upon, solicit, write, direct, divert, influence, accept business (either directly or indirectly) with respect to any account or customer or prospective customer of the Company or any corporation controlling, controlled by, under common control with, or otherwise related to the Company or its affiliates, in each case, for any purpose that is inconsistent with this non-compete provision;

		
	(b)
	Accept employment from or become an independent contractor for any Competitor (as defined below) of the Company pursuant to which you would have the same or substantially similar duties, in whole or in part, to the duties that you perform for the Company; provided, however, that the restrictions in this clause (b) shall be effective and binding only to the extent permissible under any applicable professional rules of conduct and/or ethics, including, but not limited to, Rule 4-5.6 of the Florida Rules of Professional Conduct; or

		
	(c)
	Hire away any independent contractors or personnel of Walter and/or entice any such persons to leave the employ of the Company without the prior written consent of the Company; provided, however, that the restriction contained in this clause (c) shall extend through the one (1) year anniversary of the expiration of the Restricted Period.

For purposes of this Agreement, “Competitor shall mean any business or division or unit of any business which provides, in whole or in part, in the United States of America, servicing for and/or the origination of mortgages and/or reverse mortgages.
		
	9.
	Non-Disparagement. Following the termination of your employment under this Agreement for any reason, neither you nor the Company shall, directly or indirectly, for yourself or itself, or on behalf of, or in conjunction with, any other person, persons, company, partnership, corporation, business entity or otherwise:

		
	(a)
	Make any statements or announcements or give anyone authority to make any public statements or announcements concerning the termination of your employment with the Company, other than a mutually agreeable press release, if any, or

		
	(b)
	Make any statements that are inflammatory, detrimental, slanderous, or negative in any way to the interests of you or the Company.

		
	(c)
	Nothing in this section shall prevent either party from testifying or responding truthfully to any request for discovery or testimony in any judicial or quasi-judicial proceeding or any government inquiry, investigation or other proceeding.

		
	10.
	You acknowledge and agree that you will respect and safeguard the Company’s property, trade secrets and confidential information. You acknowledge that the Company’s electronic communication systems (such as email and voicemail) are maintained to assist in the conduct of the Company’s business and that such systems and data exchanged or stored thereon are Company property. In the event that your employment with the 

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Company terminates for any reason, you agree not to disclose any Company trade secrets or confidential information you acquired while an employee of the Company to any other person or entity, including without limitation, a subsequent employer, or use such information in any manner; provided, however, that any information which enters the public domain other than by breach of this Agreement shall not be considered confidential and provided, further, that nothing in this section shall prevent either party from testifying or responding truthfully to any request for discovery or testimony in any judicial or quasi-judicial proceeding or any government inquiry, investigation or other proceeding.
		
	11.
	You understand and agree that if any of Walter’s financial statements are required to be restated due to errors, omissions, fraud, or misconduct, in each case, occurring after the Start Date, the Board may, in its sole discretion but acting in good faith, direct that the Company recover from you all or a portion of any past or future compensation paid by the Company to you after the Start Date with respect to any Walter fiscal year for which the financial results are negatively affected by such restatement. For purposes of this paragraph, errors, omissions, fraud, or misconduct may include and are not limited to circumstances where Walter has been required to prepare an accounting restatement due to material noncompliance with any financial reporting requirement, as enforced by the SEC, and the Board of Directors has determined in its sole discretion that you had knowledge of the material noncompliance or the circumstances that gave rise to such noncompliance and failed to take reasonable steps to bring it to the attention of the appropriate individuals within the Company, or you personally and knowingly engaged in practices which materially contributed to the circumstances that enabled a material noncompliance to occur.

		
	12.
	Tax Compliance Delay in Payment. This Agreement is intended to comply with Section 409A of the Code and will be interpreted accordingly. References under this Agreement to the termination of your employment shall be deemed to refer to the date upon which you have experienced a “separation from service” within the meaning of Section 409A of the Code. If the Company reasonably determines that any payment or benefit due under this Agreement, or any other amount that may become due to you after termination of employment, is subject to Section 409A of the Code, and also determines that you are a “specified employee,” as defined in Section 409A(a)(2)(B)(i) of the Code, upon your termination of employment for any reason other than death (whether by resignation or otherwise), no amount may be paid to you or on your behalf earlier than six months after the date of your termination of employment (or, if earlier, your death) if such payment would violate the provisions of Section 409A of the Code and the regulations issued thereunder, and payment shall be made, or commence to be made, as the case may be, on the date that is six months and one day after your termination of employment (or, if earlier, one day after your death). For this purpose, you will be considered a “specified employee” if you are employed by an employer, or a subsidiary of a company, that has its stock publicly traded on an established securities market or certain related entities have their stock traded on an established securities market and you are a “key employee”, with the exact meaning of “specified employee”, “key employee” and “publicly traded” 

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defined in Section 409A(a)(2)(B)(i) of the Code and the regulations thereunder. Notwithstanding the above, the Company hereby retains discretion to make determinations regarding the identification of “specified employees” and to take any necessary corporate action in connection with such determination. To the extent any reimbursements or in-kind benefits due to you under this Agreement constitute “deferred compensation” under Section 409A of the Code, any such reimbursements or in-kind benefits shall be paid to you in a manner consistent with Treasury Regulation Section 1.409A-3(i)(1)(iv). For purposes of Section 409A of the Code, each payment made under this Agreement shall be designated as a “separate payment” within the meaning of Section 409A of the Code.
		
	13.
	You acknowledge and agree that you have read this Agreement carefully, have been advised by the Company to consult with an attorney regarding its contents, and that you fully understand the same.

		
	14.
	The Company may withhold from any amounts payable under this Agreement such Federal, state and local taxes as may be required to be withheld pursuant to any applicable law or regulation.

		
	15.
	It is agreed and understood that this Agreement shall constitute our entire agreement with respect to the subject matter hereof and shall supersede all prior agreements, discussions, understandings and proposals (written or oral) relating to your employment with the Company. This Agreement will be interpreted under and in accordance with the laws of the State of Florida without regard to conflicts of laws. The parties hereto agree to resolve any dispute over the terms and conditions or application of this Agreement through binding arbitration pursuant to the rules of the American Arbitration Association (“AAA”). The arbitration will be heard by one arbitrator to be chosen as provided by the rules of the AAA and shall be held in Tampa, Florida. Notwithstanding the foregoing, in the event of a breach or threatened breach of the provisions of Sections 8-10, the party that is in breach or in threatened breach acknowledges and agrees that the other party will suffer irreparable harm that is not subject to being cured with monetary damages and that the aggrieved party shall be entitled to injunctive relief in a state court of the State of Florida. In any case, in the event you prevail in the dispute, the Company will pay your reasonable fees and costs in connection with the matter (including attorneys’ fees). Whether you have prevailed or not shall be determined by the arbitrator or the court, as the case may, or if the arbitrator or court declines to determine whether or not you have prevailed, you will be deemed to have prevailed if in the case of monetary damages you receive in excess of 50% of what you demanded, or if the case has been filed against you, if the Company receives less than 50% of what it has demanded.

		
	16.
	Any notice given to you under this Agreement shall be provided to you at the last known address on file with a copy to Evan Belosa, Esq., Cadwalader, Wickersham & Taft LLP, 1 World Financial Center, New York, New York 10281.

		
	17.
	Survival. The provisions of the following Sections shall survive termination or expiration of this Agreement, 5, 8, 9, 10, 11, 15, and 17.

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If the terms contained within this Agreement are acceptable, please sign one of the enclosed copies and return it to me in the envelope provided and retain one copy for your records.
Very truly yours,
Walter Investment Management Corp.

    
By:    Mark O’Brien
Its:    Chairman and Chief Executive Officer

ACCEPTANCE
I have read the foregoing, have been advised to consult with counsel of my choice concerning the same, and I fully understand the same. I approve and accept the terms set forth above as governing my employment relationship with the Company subject to the satisfactory completion of background, reference and credit checks, and a drug test.
Signature _________________________________________     Date _______________

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If the terms contained within this Agreement are acceptable, please sign one of the enclosed copies and return it to me in the envelope provided and retain one copy for your records.
Very truly yours,
Walter Investment Management Corp.

/s/ Mark O'Brien    
By:    Mark O’Brien
Its:    Chairman and Chief Executive Officer

ACCEPTANCE
I have read the foregoing, have been advised to consult with counsel of my choice concerning the same, and I fully understand the same. I approve and accept the terms set forth above as governing my employment relationship with the Company subject to the satisfactory completion of background, reference and credit checks, and a drug test.
Signature _/s/  Jonathan F. Pedersen_________________________     Date _October 16, 2013__

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APPENDIX 1
SEPARATION AGREEMENT
AND GENERAL RELEASE OF CLAIMS
This Separation Agreement and General Release of Claims (“Release”) is entered into by and between Walter Investment Management Corp., and its subsidiaries, predecessors, successors, assigns, affiliates, insurers and related entities, (hereinafter collectively referred to as “Employer”) and Jonathan F. Pedersen (hereinafter “Employee”). In consideration for the mutual promises set forth below, Employer and Employee agree as follows:
1.    Employer and Employee are parties to a contract of employment (“Employment Contract”) to which this Release has been attached and incorporated by reference. Employee’s employment with Employer has been terminated and, pursuant to the terms of the Employment Contract, Employee must execute this Release in order to receive the severance set forth in the Employment Contract.
2.    In consideration for the promises and covenants set forth in the Employment Contract and this Release, including, specifically but without limitation, the general release set forth in paragraph 3 below, Employee will be paid in accordance with Section 7 of the Employment Contract. Payments to Employee will be made at such times as are set forth in the Employment Contract.
3.    Employee agrees, on behalf of himself, and his heirs, executors, administrators, successors in interest and assigns that, except as specifically provided herein, Employee will not file, or cause to be filed, any charges, lawsuits, or other actions of any kind in any forum against Employer and/or its officers, directors, employees, agents, successors and assigns and does hereby further release and discharge Employer and all of its affiliated or related entities, and each of their respective parents, successors, officers, directors, employees, agents, successors and assigns (the “Released Parties”) from any and all claims, causes of action, rights, demands, and obligations of whatever nature kind or character which you may have, known or unknown, against them (including those seeking equitable relief) alleging, without limitation, breach of contract or any tort, legal actions under Title VII of the Civil Rights Act of 1964, as amended, Section 1981 of the Civil Rights Act of 1966, as amended, the Rehabilitation Act of 1973, as amended, the Employee Retirement Income Security Act of 1974, as amended, the Fair Labor Standards Act of 1938, as amended, the Age Discrimination in Employment Act of 1967, as amended, (the “ADEA”) (except to the extent claims under the ADEA arise after the date on which this Release is signed by Employee), the Older Workers’ Benefit Protection Act, as amended, the Americans with Disability Act, the Civil Rights Act of 1991, or any state, Federal, or local law or any tort, contract, and quasi-contract or other common law claim or cause of action concerning age, race, religion, national origin, handicap, or any other form of discrimination, or otherwise relating in any way to, Employee’s employment with the Company or Employee’s separation from the Company or the Company (in its capacities as Employee’s former employer or otherwise) or the other Released Parties, including any and all future claims, except claims arising in connection with rights and obligations under this Release or as 

15
        

specifically provided in paragraph 4 or 8 below. Employee further agrees to waive and release any claim for damages occurring at any time after the date of this Release because of any alleged continuing effect of any alleged acts or omissions involving Employee and/or Employer which occurred on or before the date of this Release.
4.    Notwithstanding anything contained in this Release to the contrary, the general release set forth in paragraph 3 shall not apply to any claims under any equity, option or other Employer incentive plan or award, which shall be governed by the terms and conditions of such plan(s) or award. Furthermore, claims to enforce the severance or surviving portions of the Employment Contract and any rights to indemnification are expressly not released.
5.    Employee represents that he has not filed any charges, including, but not limited to, charges against the Company with the Equal Employment Opportunity Commission (“EEOC”), suits, claims or complaints against the Company or a Released Party. This Release forever bars all actions, claims and suits which arose or might arise in the future from any occurrences arising prior to the date of this Release and authorizes any court or administrative agency to dismiss any claim filed by Employee with prejudice. If any administrative agency files any charge, claim or suit on Employee’s behalf, Employee agrees to waive all rights to recovery of any equitable or monetary relief and attorneys’ fees.
6.    Except as required by law, and unless and until this Release is disclosed by the Company or any of its affiliates as may be required by law, the parties to this Release agree that the existence and terms of this Release will remain confidential; provided that Employee may reveal the terms of the Release to Employee’s legal, tax and financial advisors, and immediate family, in deciding whether to execute this Release, so long as Employee advises each such person that they must keep its terms confidential on the same basis as is required of Employee.
7.    This Release shall not in any way be construed as an admission by Employer or Employee that they have acted wrongfully with respect to each other or that one party has any rights whatsoever against the other or the other Released Parties.
8.    Employee and Employer specifically acknowledge the following:
		
	a.
	Employee does not release or waive any right or claim which Employee may have which arises after the date of this Release.

		
	b.
	In exchange for this general release, Employee acknowledges that Employee has received separate consideration beyond that which Employee is otherwise entitled to under Employer’s policy or applicable law.

		
	c.
	Employee is releasing, among other rights, all claims and rights under the Age Discrimination in Employment Act (“ADEA”) and the Older Workers’ Benefit Protection Act (“OWBPA”), 29 U.S.C. §621, et seq.

16
        

		
	d.
	Employee has twenty-one (21) days to consider this Release.

		
	e.
	Employee has seven (7) days to revoke this Release after acceptance. However, this Release will not become effective and no consideration will be paid until after the revocation of the acceptance period has expired. Additionally, for the revocation to be effective, Employee must give written notice of Employee’s revocation to Employer’s [General Counsel], stating “I hereby revoke the Release and General Release of Claims I executed on [insert date]” and such revocation must be postmarked via certified mail within such seven (7) day period to Walter Investment Management Corp., attention Human Resources, 3000 Bayport Drive, Tampa, FL 33607.

		
	f.
	Employee will resign as an officer and/or director of Walter Investment Management Corp. or any of its affiliates or subsidiaries.

9.    Should Employee breach any provision of this Release, Employer’s obligation to continue to pay the consideration set forth herein shall cease and Employer shall have no further obligation to Employee. All other terms and conditions of this Release, including, but not limited to, the general release in paragraph 3 shall remain in full force and effect. Should Employer breach any provision of this Release, the Employee’s obligations hereunder shall cease and Employee shall have no further obligations pursuant to this Release.
10.    This Release shall be binding upon Employer, Employee and upon Employee’s heirs, administrators, representatives, executors, successors and assigns, and shall inure to the benefit of Employer and the other released parties and their successors and assigns.
11.    Employee and Employer acknowledge that this Release and the Employment Contract shall be considered as one document and that, except as set forth herein and therein, including without limitation the provisions of paragraphs 4 and 8 of this Release, any and all prior understandings and agreements between the parties to this Release with respect to the subject matter of this Release and/or the Employment Contract are merged into the Employment Contract and this Release, which fully and completely expresses the entire understanding of the parties with respect to the subject matter hereof and thereof.
12.    Employee represents that no inducements, statements, or representations have been made that are not set out in this Release and that Employee does not rely on any inducements, statements, or representations not set forth herein or therein. Employee further represents that he enters into this Release knowingly and voluntarily and on his own free will and choice and that he has been encouraged and given significant opportunity to consult with an attorney of his choice.
13.    This Release shall in all respects be interpreted, enforced and governed under the laws of the State of Florida. The language of all parts of this Release shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the parties to this 

17
        

Release. Should any provision of this Release be declared or be determined by any Court to be illegal or invalid, the validity of the remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid part, term or provision shall be deemed not to be a part of this Release.
14.    This Release may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall constitute one and the same instrument.
	
		
	JONATHAN F. PEDERSEN
	WALTER INVESTMENT MANAGEMENT CORP.

	 
	 

	 
	 

	   
	By:    

	 
	 

	Name Printed:    
	Title:    

	 
	 

	Date:    
	Date:    

18Exhibit 10.1

 

APPTIGO
INTERNATIONAL, INC.

2014
STOCK INCENTIVE PLAN

 

THE 2014 STOCK INCENTIVE
PLAN (the “Plan”) of Apptigo International, Inc., a Nevada corporation, is hereby adopted by its Board of Directors
as of June 19, 2014 (the “Effective Date”).

 

Article
1.

PURPOSES
OF THE PLAN

 

Section 1.01     Purposes.
The purposes of the Plan are (a) to enhance the Company’s ability to attract and retain the services of qualified employees,
officers, directors, consultants and other service providers upon whose judgment, initiative and efforts the successful conduct
and development of the Company’s business largely depends, and (b) to provide additional incentives to such persons or entities
to devote their utmost effort and skill to the advancement and betterment of the Company, by providing them an opportunity to
participate in the ownership of the Company and thereby have an interest in the success and increased value of the Company.

 

Article
2.

DEFINITIONS

 

For purposes of
this Plan, terms not otherwise defined herein shall have the meanings indicated below:

 

Section 2.01     Administrator. “Administrator” means the Board or, if the Board delegates responsibility for any matter
to the Committee or an officer or officers of the Company, the term Administrator shall mean the Committee or the Officer or Officers,
as applicable.

 

Section 2.02      Affiliated Company. “Affiliated Company” means:

 

a)           with respect to Incentive Options, any “parent corporation” or “subsidiary corporation” of the Company,
whether now existing or hereafter created or acquired, as those terms are defined in Sections 424(e) and 424(f) of the Code, respectively;
and

 

b)           with respect to Nonqualified Options, Restricted Stock Units, Stock Appreciation Rights, and Restricted Stock Grants any
entity described in paragraph (a) of this Section 2.02 above, plus any other corporation, limited liability company (“LLC”),
partnership or joint venture, whether now existing or hereafter created or acquired, with respect to which the Company beneficially
owns more than fifty percent (50%) of: (1) the total combined voting power of all outstanding voting securities or (2) the capital
or profits interests of an LLC, partnership or joint venture.

 

Section 2.03     Base Price. “Base Price” means the price per share of Common Stock for purposes of computing the amount
payable to a Participant who holds a Stock Appreciation Right upon exercise thereof.

 

Section 2.04      Board. “Board” means the Board of Directors of the Company.

 

Section 2.05      Change in Control. “Change in Control” means:

 

a)           The acquisition, directly or indirectly, in one transaction or a series of related transactions, by any person or group
(within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended) of the beneficial ownership of securities
of the Company possessing more than fifty percent (50%) of the total combined voting power of all outstanding securities of the
Company;

 

    	1

    	 

    

 

b)           A merger or consolidation in which the Company is not the surviving entity, except for a transaction in which the holders
of the outstanding voting securities of the Company immediately prior to such merger or consolidation hold as a result of holding
Company securities prior to such transaction, in the aggregate, securities possessing more than fifty percent (50%) of the total
combined voting power of all outstanding voting securities of the surviving entity (or the parent of the surviving entity) immediately
after such merger or consolidation;

 

c)           A reverse merger in which the Company is the surviving entity but in which the holders of the outstanding voting securities
of the Company immediately prior to such merger hold, in the aggregate, securities possessing less than fifty percent (50%) of
the total combined voting power of all outstanding voting securities of the Company or of the acquiring entity immediately after
such merger; or

 

d)           The sale, transfer or other disposition (in one transaction or a series of related transactions) of all or substantially
all of the assets of the Company, except for a transaction in which the holders of the outstanding voting securities of the Company
immediately prior to such transaction(s) receive as a distribution with respect to securities of the Company, in the aggregate,
securities possessing more than fifty percent (50%) of the total combined voting power of all outstanding voting securities of
the acquiring entity immediately after such transaction(s).

 

e)           In addition, a Change in Control will be deemed to have occurred if, at any time during any period of twelve (12) consecutive
months during the term of any Option Agreement, Restricted Stock Unit Agreement or Stock Appreciation Right Agreement under this
Plan, individuals who at the beginning of such period constituted the entire Board do not for any reason constitute a majority
of the Board, unless the election, or the nomination for election by the Company’s stockholders, of each new director was
approved by a vote of at least a majority of the directors then still in office who were directors at the beginning of the period
(but not including any new director whose election or nomination is in connection with an actual or threatened proxy contest relating
to the election of directors of the Company).

 

Notwithstanding the foregoing, a transaction
will not be deemed a Change in Control unless the transaction qualifies as a change in control event within the meaning of Section
409A of the Code.

 

Section 2.06      Code. “Code” means the Internal Revenue Code of 1986, as amended from time to time.

 

Section 2.07      Committee. “Committee” means a committee of two or more members of the Board appointed to administer the
Plan, as set forth in Section 9.01.

 

Section 2.08      Common Stock. “Common Stock” means the Common Stock of the Company, subject to adjustment pursuant to Section
4.02.

 

Section 2.09      Company. “Company” means Apptigo International, Inc., a Nevada corporation, or any entity that is a successor
to the Company. Except where the context otherwise requires, the term “Company” shall include any of
the Company’s present or future parent or subsidiary corporations

 

    	2

    	 

    

 

Section 2.10      Disability. “Disability” means permanent and total disability as defined in Section 22(e)(3) of the Code.
The Administrator’s determination of a Disability or the absence thereof shall be conclusive and binding on all interested
parties.

 

Section 2.11       Effective Date. “Effective Date” means the date on which the Plan was originally adopted by the Board, as
set forth on the first page hereof.

 

Section 2.12       Exchange Act. “Exchange Act” means the Securities and Exchange Act of 1934, as amended.

 

Section 2.13       Exercise Price. “Exercise Price” means the purchase price per share of Common Stock payable by the Optionee
to the Company upon exercise of an Option.

 

Section 2.14       Fair Market Value. “Fair Market Value” on any given date means the value of one share of Common Stock, determined
as follows:

 

a)           If the Common Stock is then listed or admitted to trading on The NASDAQ Stock Market or another stock exchange which reports
closing sale prices, the Fair Market Value shall be the closing sale price on the date of valuation on The NASDAQ Stock Market
or principal stock exchange on which the Common Stock is then listed or admitted to trading, or, if no closing sale price is quoted
on such day, then the Fair Market Value shall be the closing sale price of the Common Stock on The NASDAQ Stock Market or such
exchange on the next preceding day on which a closing sale price is reported.

 

b)           If the Common Stock is not then listed or admitted to trading on The NASDAQ Stock Market or a stock exchange which reports
closing sale prices, the Fair Market Value shall be the average of the closing bid and asked prices of the Common Stock in the
over-the-counter market on the date of valuation.

 

c)           If neither (a) nor (b) is applicable as of the date of valuation, then the Fair Market Value shall be determined by the
Administrator in good faith using any reasonable method of evaluation in a manner consistent with the valuation principles under
Section 409A of the Code, which determination shall be conclusive and binding on all interested parties.

 

Section 2.15       FINRA Dealer. “FINRA Dealer” means a broker-dealer that is a member of the Financial Industry Regulatory
Authority.

 

Section 2.16       Incentive Option. “Incentive Option” means any Option designated and qualified as an “incentive stock
option” as defined in Section 422 of the Code.

 

Section 2.17       Incentive Option Agreement. “Incentive Option Agreement” means an Option Agreement with respect to an Incentive
Option.

 

Section 2.18      Nonqualified Option. “Nonqualified Option” means any Option that is not an Incentive Option.  To the
extent that any Option designated as an Incentive Option fails in whole or in part to qualify as an Incentive Option, including,
without limitation, for failure to meet the limitations applicable to a 10% Stockholder or because it exceeds the annual limit
provided for in Section 5.07 below, it shall to that extent constitute a Nonqualified Option.

 

Section 2.19       Nonqualified Option Agreement. “Nonqualified Option Agreement” means an Option Agreement with respect to
a Nonqualified Option.

 

    	3

    	 

    

 

Section 2.20       Officer. “Officer” means any President, Chief Executive Officer, Chief Financial Officer, or Senior or Executive
Vice-President of the Company.

 

Section 2.21       Option. “Option” means any option to purchase Common Stock granted pursuant to this Plan.

 

Section 2.22      Option Agreement. “Option Agreement” means the written agreement entered into between the Company and the
Optionee with respect to an Option granted under this Plan.

 

Section 2.23      Optionee. “Optionee” means any Participant who holds an Option.

 

Section 2.24     Participant. “Participant” means an individual or entity that holds Options, Restricted Stock Units, Stock
Appreciation Rights, or Restricted Shares under this Plan.

 

Section 2.25     Performance Criteria. “Performance Criteria” means one or more of the following as established by the Administrator,
which may be stated as a target percentage or dollar amount, a percentage increase over a base period percentage or dollar amount
or the occurrence of a specific event or events:

 

a)           Revenue;

b)           Gross profit;

c)           Operating income;

d)           Pre-tax income;

e)           Earnings before interest, taxes, depreciation and amortization (“EBITDA”);

f)            Earnings per common share on a fully diluted basis (“EPS”);

g)           Consolidated net income of the Company
divided by the average consolidated common stockholders’ equity (“ROE”);

h) Cash and cash equivalents derived
from either (i) net cash flow from operations, or (ii) net cash flow from operations, financings and investing activities (“Cash
Flow”);

i)            Adjusted operating cash flow return on income;

j)            Cost containment or reduction;

k)           The percentage increase in the market price of the Company’s common stock over a stated period; and

l)            Individual business objectives.

 

Section 2.26      Restricted Shares. “Restricted Shares” means shares issued pursuant to the Stock Issuance Program in Article
8.

 

Section 2.27      Restricted Stock Unit. “Restricted Stock Unit” means a right to receive a share of Common Stock or an amount
equal to the Fair Market Value of one share of Common Stock, or combination thereof, issued pursuant to Article 6, subject to any
restrictions and conditions as are established pursuant to Article 6.

 

Section 2.28      Restricted Stock Unit Agreement. “Restricted Stock Unit Agreement” means the written agreement entered into
between the Company and a Participant evidencing the grant of Restricted Stock Units under the Plan.

 

Section 2.29      Service. “Service” shall mean the provision of services to the Company (or any Parent or Subsidiary) by
a person in the capacity of an employee, a non-employee member of the board of directors or a consultant or independent advisor,
except to the extent otherwise specifically provided in the documents evidencing the option grant.

 

    	4

    	 

    

 

Section 2.30       Service Provider. “Service Provider” means a consultant or other person or entity the Administrator authorizes
to become a  Participant in the Plan and who provides services to (i) the Company, (ii) an Affiliated Company, or (iii) any
other business venture designated by the Administrator in which the Company or an Affiliated Company has a significant ownership
interest.

 

Section 2.31      Stock Appreciation Right. “Stock Appreciation Right” means a right issued pursuant to Article 7, subject
to any restrictions and conditions as are established pursuant to Article 7 that is designated as a Stock Appreciation Right.

 

Section 2.32      Stock Appreciation Right Agreement. “Stock Appreciation Right Agreement” means the written agreement entered
into between the Company and a Participant evidencing the grant of Stock Appreciation Rights under the Plan.

 

Section 2.33       Stock Issuance Program. “Stock Issuance Program” means the program to issue restricted shares pursuant to
Article 8.

 

Section 2.34      10% Stockholder. “10% Stockholder” means a person who, as of a relevant date, owns or is deemed to own (by
reason of the attribution rules applicable under Section 424(d) of the Code) stock possessing more than 10% of the total combined
voting power of all classes of stock of the Company or of an Affiliated Company.

 

Article
3.

ELIGIBILITY

 

Section 3.01      Incentive Options. Only employees of the Company or of an Affiliated Company (including members of the Board if they
are employees of the Company or of an Affiliated Company) are eligible to receive Incentive Options under the Plan.

 

Section 3.02      Nonqualified Options; Restricted Stock Units, Restricted Shares and Stock Appreciation Rights. Employees of the Company
or of an Affiliated Company, members of the Board (whether or not employed by the Company or an Affiliated Company), and Service
Providers are eligible to receive Nonqualified Options, Restricted Stock Units, Restricted Shares, and Stock Appreciation Rights
under the Plan.

 

Article
4.

PLAN
SHARES

 

Section 4.01      Shares Subject to the Plan.

 

a)           The total number of shares of Common Stock initially reserved and available for issuance under the Plan shall be 4,500,000
shares. Shares of Common Stock under the Plan may consist, in whole or in part, of authorized and unissued shares or treasury shares.

 

b)           For purposes of the limitations set forth in Section 4.01(a) above, in the event that (a) all or any portion of any Options
or Stock Appreciation Rights granted under the Plan can no longer under any circumstances be exercised, (b) any shares of Common
Stock are reacquired by the Company pursuant to an Option Agreement, or (c) all or any portion of any Restricted Stock Units granted
under the Plan are forfeited or can no longer under any circumstances vest, the shares of Common Stock allocable to or covered
by the unexercised or unvested portion of such Options, Stock Appreciation Rights or Restricted Stock Units or the shares of Common
Stock so reacquired shall again be available for grant or issuance under the Plan. The following shares of Common Stock may not
again be made available for issuance as awards under the Plan: (i) shares of Common Stock not issued or delivered as a result of
the net settlement of outstanding Stock Appreciation Rights or Options, (ii) shares of Common Stock used to pay the Exercise Price
related to outstanding Options, (iii) shares of Common Stock used to pay withholding taxes related to outstanding Options, Stock
Appreciation Rights or Restricted Stock Units, or (iv) shares of Common Stock repurchased on the open market with the proceeds
of the Option Exercise Price.

 

    	5

    	 

    

 

Section 4.02      Changes in Capital Structure. In the event that the outstanding shares of Common Stock are hereafter increased or decreased
or changed into or exchanged for a different number or kind of shares or other securities of the Company by reason of a recapitalization,
stock split, reverse stock split, reclassification, stock dividend, or other change in the capital structure of the Company, then
appropriate adjustments shall be made by the Administrator to the aggregate number and kind of shares subject to this Plan, the
number and kind of shares and the price per share subject to or covered by outstanding Option Agreements, Restricted Stock Unit
Agreements or Stock Appreciation Right Agreements and the limit on the number of shares under Section 3.03, all in order to preserve,
as nearly as practical, but not to increase, the benefits to Participants.

 

Article
5.

OPTIONS

 

Section 5.01      Grant of Stock Options.  The Administrator shall have the right to grant pursuant to this Plan, Options subject
to such terms, restrictions and conditions as the Administrator may determine at the time of grant.  Such conditions may include,
but are not limited to, continued employment or the achievement of specified performance goals or objectives established by the
Administrator with respect to one or more Performance Criteria, which require the Administrator to certify in writing whether and
the extent to which such Performance Criteria were achieved.

 

Section 5.02      Option Agreements. Each Option granted pursuant to this Plan shall be evidenced by an Option Agreement which shall specify
the number of shares subject thereto, vesting provisions relating to such Option, the Exercise Price per share, and whether the
Option is an Incentive Option or Nonqualified Option. As soon as is practical following the grant of an Option, an Option Agreement
shall be duly executed and delivered by or on behalf of the Company to the Optionee to whom such Option was granted.  Each
Option Agreement shall be in such form and contain such additional terms and conditions, not inconsistent with the provisions of
this Plan, as the Administrator shall, from time to time, deem desirable.

 

Section 5.03      Exercise Price. The Exercise Price per share of Common Stock covered by each Option shall be determined by the Administrator,
subject to the following:  (a) the Exercise Price of an Incentive Option shall not be less than 100% of Fair Market Value
on the date the Incentive Option is granted, (b) the Exercise Price of a Nonqualified Option shall not be less than 85% of Fair
Market Value on the date the Nonqualified Option is granted, and (c) if the person to whom an Incentive Option is granted is a
10% Stockholder on the date of grant, the Exercise Price shall not be less than 110% of Fair Market Value on the date the Incentive
Option is granted. However, an Option may be granted with an Exercise Price lower than that set forth in the preceding sentence
if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of
Sections 409A and 424 of the Code.

 

    	6

    	 

    

 

Section 5.04      Payment of Exercise Price. Payment of the Exercise Price shall be made upon exercise of an Option and may be made, in
the discretion of the Administrator, subject to any legal restrictions, by: (a) cash; (b) check; (c) the surrender of shares of
Common Stock owned by the Optionee (provided that shares acquired pursuant to the exercise of options granted by the Company must
have been held by the Optionee for the requisite period necessary to avoid a charge to the Company’s earnings for financial
reporting purposes), which surrendered shares shall be valued at Fair Market Value as of the date of such exercise; (d) the cancellation
of indebtedness of the Company to the Optionee; (e) the waiver of compensation due or accrued to the Optionee for services
rendered; (f) provided that a public market for the Common Stock exists, a “same day sale” commitment from the Optionee
and a FINRA Dealer whereby the Optionee irrevocably elects to exercise the Option and to sell a portion of the shares so purchased
to pay for the Exercise Price and whereby the FINRA Dealer irrevocably commits upon receipt of such shares to forward the Exercise
Price directly to the Company; (g) provided that a public market for the Common Stock exists, a “margin” commitment
from the Optionee and a FINRA Dealer whereby the Optionee irrevocably elects to exercise the Option and to pledge the shares so
purchased to the FINRA Dealer in a margin account as security for a loan from the FINRA Dealer in the amount of the Exercise Price,
and whereby the FINRA Dealer irrevocably commits upon receipt of such shares to forward the Exercise Price directly to the Company;
or (h) any combination of the foregoing methods of payment or any other consideration or method of payment as shall be permitted
by applicable law.

 

Section 5.05      Term and Termination of Options. The term and provisions for termination of each Option shall be as fixed by the Administrator,
but no Option may be exercisable more than ten (10) years after the date it is granted.  An Incentive Option granted to a
person who is a 10% Stockholder on the date of grant shall not be exercisable more than five (5) years after the date it is granted.

 

Section 5.06      Vesting and Exercise of Options. Each Option shall vest and become exercisable in one or more installments at such time
or times and subject to such conditions, including without limitation the achievement of specified performance goals or objectives
established with respect to one or more Performance Criteria, as shall be determined by the Administrator.

 

Section 5.07      Annual Limit on Incentive Options. To the extent required for “incentive stock option” treatment under Section
422 of the Code, the aggregate Fair Market Value (determined as of the time of grant) of the Common Stock with respect to which
Incentive Options granted under this Plan and any other plan of the Company or any Affiliated Company become exercisable for the
first time by an Optionee during any calendar year shall not exceed $100,000.

 

Section 5.08      Nontransferability of Options. Except as otherwise provided in this Section 5.08, Options shall not be assignable or
transferable except by will, the laws of descent and distribution or to a revocable trust, and during the life of the Optionee,
Options shall be exercisable only by the Optionee. At the discretion of the Administrator and in accordance with rules it establishes
from time to time, Optionees may be permitted to transfer some or all of their Nonqualified Options to one or more “family
members,” which is not a “prohibited transfer for value,” provided that (i) the Optionee (or such Optionee’s
estate or representative) shall remain obligated to satisfy all income or other tax withholding obligations associated with the
exercise of such Nonqualified Option; (ii) the Optionee shall notify the Company in writing that such transfer has occurred and
disclose to the Company the name and address of the “family member” or “family members” and their relationship
to the Optionee, and (iii) such transfer shall be effected pursuant to transfer documents in a form approved by the Administrator.
For purposes of the foregoing, the terms “family members” and “prohibited transfer for value” have the
meaning ascribed to them in the General Instructions to Form S-8 (or any successor form) promulgated under the Securities Act of
1933, as amended.

 

    	7

    	 

    

 

Section 5.09       Effect of Termination of Employment.

 

a)           The following provisions shall govern the exercise of any Options held by the Optionee at the time of termination of employment,
disability, or death:

 

(1)          Should the Optionee’s employment be terminated for cause, then the Options shall terminate on the date of employment
is terminated.

 

(2)          Should the Optionee’s employment be terminated for disability, then the Optionee shall have a period of six (6) months
following the date of such termination during which to exercise each outstanding Option held by such Optionee at the time of disability.

 

(3)          If the Optionee dies while holding an outstanding Option, then the personal representative of his or her estate or the person
or persons to whom the Option is transferred pursuant to the Optionee’s will or the laws of inheritance shall have six (6)
months following the date of the Optionee’s death to exercise such Option.

 

(4)          Should Optionee’s employment be terminated by reason of his or her own voluntary termination, then the Optionee shall
have a period of thirty (30) days following the date of such voluntary termination during which to exercise each outstanding option
held by such Optionee.

 

(5)          Should Optionee’s employment be terminated by reason other than for cause, disability, death, or Optionee’s
voluntary termination, then the Optionee shall have a period of three (3) months following the date of such termination during
which to exercise each outstanding option held by such Optionee.

 

(6)          Under no circumstances, however, shall any such Option be exercisable after the specified expiration of the option term.

 

(7)          During the applicable post-Service exercise period, the Option may not be exercised in the aggregate for more than the number
of vested shares for which the Option is exercisable on the date of the Optionee’s termination of employment. Upon the expiration
of the applicable exercise period or (if earlier) upon the expiration of the Option term, the Option shall terminate and cease
to be outstanding for any vested shares for which the Option has not been exercised. However, the Option shall, immediately upon
the Optionee’s termination of employment, terminate and cease to be outstanding with respect to any and all Option shares
for which the option is not otherwise at the time exercisable or in which the Optionee is not otherwise at that time vested.

 

b)           The Administrator shall have the discretion, exercisable either at the time an Option is granted or at any time while the
Option remains outstanding, to:

 

(1)          extend the period of time for which the Option is to remain exercisable following Optionee’s termination of employment
or death from the limited period otherwise in effect for that Option to such greater period of time as the Administrator shall
deem appropriate, but in no event beyond the expiration of the Option term; and/or

 

(2)          permit the Option to be exercised, during the applicable post-termination exercise period, not only with respect to the
number of vested shares of Common Stock for which such Option is exercisable at the time of the Optionee’s termination of
employment but also with respect to one or more additional installments in which the Optionee would have vested under the Option
had the Optionee continued employment.

 

    	8

    	 

    

 

Section 5.10      Rights as a Stockholder. An Optionee or permitted transferee of an Option shall have no rights or privileges as a stockholder
with respect to any shares covered by an Option until such Option has been duly exercised and certificates representing shares
purchased upon such exercise have been issued to such person.

 

Article
6.

RESTRICTED
STOCK UNITS

 

Section 6.01      Grants of Restricted Stock Units. The Administrator shall have the right to grant pursuant to this Plan Restricted
Stock Units subject to such terms, restrictions and conditions as the Administrator may determine at the time of grant.  Such
conditions may include, but are not limited to, continued employment or the achievement of specified performance goals or objectives
established by the Administrator with respect to one or more Performance Criteria, which require the Administrator to certify
in writing whether and the extent to which such Performance Criteria were achieved.

 

Section 6.02      Restricted Stock Unit Agreements. A Participant shall have no rights with respect to the Restricted Stock Units covered
by a Restricted Stock Unit Agreement until the Participant has executed and delivered to the Company the applicable Restricted
Stock Unit Agreement. Each Restricted Stock Unit Agreement shall be in such form, and shall set forth such other terms, conditions
and restrictions of the Restricted Stock Unit Agreement, not inconsistent with the provisions of this Plan, as the Administrator
shall, from time to time, deem desirable. Each such Restricted Stock Unit Agreement may be different from each other Restricted
Stock Unit Agreement.

 

Section 6.03     Vesting of Restricted Stock Units. The Restricted Stock Unit Agreement shall specify the date or dates, the performance
goals, if any, established by the Administrator with respect to one or more Performance Criteria that must be achieved, and any
other conditions on which the Restricted Stock Units may vest.

 

Section 6.04      Form and Timing of Settlement. Settlement in respect of vested Restricted Stock Units will be automatic upon vesting
thereof.  Payment in respect thereof will be made no later than thirty (30) days thereafter and may, in the discretion of
the Administrator, be in cash, shares of Common Stock of equivalent Fair Market Value as of the date of exercise, or a combination
of both, except as specifically provided in the Restricted Stock Unit Agreement.

 

Section 6.05      Rights as a Stockholder. Holders of Restricted Stock Units shall have no rights or privileges as a stockholder with
respect to any shares of Common Stock covered thereby unless and until they become owners of shares of Common Stock following settlement
in respect of such Restricted Stock Units, in whole or in part, in shares of Common Stock pursuant to their respective Restricted
Stock Unit Agreements and the terms and conditions of the Plan.

 

Section 6.06      Restrictions. Restricted Stock Units may not be sold, pledged or otherwise encumbered or disposed of and shall not be
assignable or transferable except by will, the laws of descent and distribution or pursuant to a domestic relations order entered
by a court in settlement of marital property rights, except as specifically provided in the Restricted Stock Unit Agreement or
as authorized by the Administrator.

 

Article
7.

STOCK
APPRECIATION RIGHTS

 

Section 7.01      Grants of Stock Appreciation Rights. The Administrator shall have the right to grant pursuant to this Plan, Stock Appreciation
Rights subject to such terms, restrictions and conditions as the Administrator may determine at the time of grant. Such conditions
may include, but are not limited to, continued employment or the achievement of specified performance goals or objectives established
by the Administrator with respect to one or more Performance Criteria, which require the Administrator to certify in writing whether
and the extent to which such Performance Criteria were achieved.

 

    	9

    	 

    

 

Section 7.02      Stock Appreciation Right Agreements. A Participant shall have no rights with respect to the Stock Appreciation Rights
covered by a Stock Appreciation Right Agreement until the Participant has executed and delivered to the Company the applicable
Stock Appreciation Right Agreement. Each Stock Appreciation Right Agreement shall be in such form, and shall set forth the Base
Price and such other terms, conditions and restrictions of the Stock Appreciation Right Agreement, not inconsistent with the provisions
of this Plan, as the Administrator shall, from time to time, deem desirable. Each such Stock Appreciation Right Agreement may be
different from each other Stock Appreciation Right Agreement.

 

Section 7.03       Base Price. The Base Price per share of Common Stock covered by each Stock Appreciation Right shall be determined by
the Administrator and will be not less than 100% of Fair Market Value on the date the Stock Appreciation Right is granted.  However,
a Stock Appreciation Right may be granted with a Base Price lower than that set forth in the preceding sentence if such Stock Appreciation
Right is granted pursuant to an assumption or substitution for another stock appreciation right in a manner satisfying the provisions
of Section 409A of the Code.

 

Section 7.04       Term and Termination of Stock Appreciation Rights. The term and provisions for termination of each Stock Appreciation
Right shall be as fixed by the Administrator, but no Stock Appreciation Right may be exercisable more than ten (10) years after
the date it is granted.

 

Section 7.05       Vesting and Exercise of Stock Appreciation Rights. Each Stock Appreciation Right shall vest and become exercisable in
one or more installments at such time or times and subject to such conditions, including without limitation the achievement of
specified performance goals or objectives established with respect to one or more Performance Criteria, as shall be determined
by the Administrator.

 

Section 7.06       Amount, Form and Timing of Settlement. Upon exercise of a Stock Appreciation Right, the Participant who holds such Stock
Appreciation Right will be entitled to receive payment from the Company in an amount equal to the product of (a) the difference
between the Fair Market Value of a share of Common Stock on the date of exercise over the Base Price per share of Common Stock
covered by such Stock Appreciation Right and (b) the number of shares of Common Stock with respect to which such Stock Appreciation
Right is being exercised. Payment in respect thereof will be made no later than thirty (30) days after such exercise, provided
that such payment will be made in a manner such that no amount of compensation will be treated as deferred under Treasury Regulation
Section 1.409A-1(b)(5)(i)(D).  Such payment may, in the discretion of the Administrator, be in cash, shares of Common Stock
of equivalent Fair Market Value as of the date of exercise, or a combination of both, except as specifically provided in the Stock
Appreciation Right Agreement.

 

Section 7.07       Rights as a Stockholder. Holders of Stock Appreciation Rights shall have no rights or privileges as a stockholder with
respect to any shares of Common Stock covered thereby unless and until they become owners of shares of Common Stock following settlement
in respect of such Stock Appreciation Rights, in whole or in part, in shares of Common Stock pursuant to their respective Stock
Appreciation Right Agreements and the terms and conditions of the Plan.

 

Section 7.08       Restrictions. Stock Appreciation Rights may not be sold, pledged or otherwise encumbered or disposed of and shall not
be assignable or transferable except by will, the laws of descent and distribution or pursuant to a domestic relations order entered
by a court in settlement of marital property rights, except as specifically provided in the Stock Appreciation Right Agreement
or as authorized by the Administrator.

 

    	10

    	 

    

 

Article
8.

STOCK ISSUANCE PROGRAM

 

Section 8.01       Stock Issuance Terms. Shares of Common Stock may be issued under the Stock Issuance Program through direct and immediate
issuances of Restricted Shares without any intervening option grants. Each such stock grant shall be evidenced by a Stock Issuance
Agreement which complies with the terms specified below.

 

Section 8.02       Cost of Shares.  Grants of Restricted Shares under the Stock Issuance Program shall be made at such cost as the
Administrator shall determine and may be issued for no monetary consideration, subject to applicable state law.

 

Section 8.03        Vesting Provisions.

 

a)           Restricted Shares issued under the Stock Issuance Program may, in the discretion of the Administrator, be fully and immediately
vested upon issuance or may vest in one or more installments over the Participant’s period of Service or upon attainment
of specified performance objectives.

 

b)           Any new, substituted or additional securities or other property (including money paid other than as a regular cash dividend)
which the Participant may have the right to receive with respect to the Participant’s unvested Restricted Shares by reason
of any stock dividend, stock split, recapitalization, combination of shares, exchange of shares or other change affecting the outstanding
Common Stock as a class without the Company’s receipt of consideration shall be issued subject to (i) the same vesting requirements
applicable to the Participant’s unvested Restricted Shares and (ii) such escrow arrangements as the Administrator shall deem
appropriate.

 

c)           Unless specified otherwise in the Stock Issuance Agreement, the Participant shall have full shareholder rights with respect
to any Restricted Shares issued to the Participant under the Stock Issuance Program, whether or not the Participant’s interest
in those shares is vested, and accordingly, the Participant shall have the right to vote such shares and to receive any regular
cash dividends paid on such shares.

 

d)           Should the Participant cease to remain in Service while holding one or more unvested Restricted Shares issued under the
Stock Issuance Program or should the performance objectives not be attained with respect to one or more such unvested Restricted
shares, then those shares shall be immediately surrendered to the Company for cancellation, and the Participant shall have no further
shareholder rights with respect to those shares. To the extent the surrendered shares were previously issued to the Participant
for consideration paid in cash or cash equivalent (including the Participant’s purchase-money indebtedness), the Company
shall repay to the Participant the cash consideration paid for the surrendered shares and shall cancel the unpaid principal balance
of any outstanding purchase-money note of the Participant attributable to such surrendered shares.

 

e)           The Administrator may in its discretion waive the surrender and cancellation of one or more unvested Restricted Shares (or
other assets attributable thereto) which would otherwise occur upon the non-completion of the vesting schedule applicable to such
shares. Such waiver shall result in the immediate vesting of the Participant’s interest in the Restricted Shares as to which
the waiver applies. Such waiver may be effected at any time, whether before or after the Participant’s cessation of Service
or the attainment or non-attainment of the applicable performance objectives.

 

    	11

    	 

    

 

Section 8.04        Non-transferability. Restricted Shares granted under the Stock Issuance Program shall not be transferable until the
shares are vested.

 

Section 8.05        Share Escrow/Legends. Unvested Restricted Shares may, in the Administrator’s discretion, be held in escrow by
the Company until the Participant’s interest in such shares vests or may be issued directly to the Participant with restrictive
legends on the certificates evidencing those unvested shares.

 

Article
9.

ADMINISTRATION
OF THE PLAN

 

Section 9.01       Administrator. Authority to control and manage the operation and administration of the Plan shall be vested in the Board,
which may delegate such responsibilities in whole or in part to a committee consisting of two (2) or more members of the Board
(the “Committee”), each of whom shall meet the independence requirements under the then applicable rules, regulations
or listing requirements adopted by The NASDAQ Stock Market or the principal exchange on which the Company’s shares of Common
Stock are then listed or admitted to trading.  Members of the Committee may be appointed from time to time by, and shall serve
at the pleasure of, the Board. The Board may limit the composition of the Committee to those persons necessary to comply with the
requirements of Section 162(m) of the Code and Section 16 of the Exchange Act. In addition, the Board may authorize one or more
Officers of the Company (i) to designate the persons to be recipients of rights or options awarded pursuant to this Plan, and (ii)
to determine the number of rights or options to be received by such person; provided that the Board shall designate the maximum
number of rights or options such Officer or Officers may award, and further provided that the Board may not authorize an officer
to designate himself or herself as a recipient of the rights or options. As used herein, the term “Administrator” means
the Board or, with respect to any matter as to which responsibility has been delegated to the Committee or one or more Officers,
the term Administrator shall mean the Committee or such Officer or Officers.

 

Section 9.02       Powers of the Administrator. In addition to any other powers or authority conferred upon the Administrator elsewhere
in this Plan or by law, the Administrator shall have full power and authority:  (a) to determine the persons to whom,
and the time or times at which, Incentive Options, Nonqualified Options, Restricted Stock Units, Stock Appreciation Rights, or
Restricted Shares shall be granted, the number of shares to be represented by each Option Agreement or covered by each Restricted
Stock Unit Agreement or Stock Appreciation Right Agreement, and the Exercise Price of such Options and the Base Price of such Stock
Appreciation Rights; (b) to interpret the Plan; (c) to create, amend or rescind rules and regulations relating to the
Plan; (d) to determine the terms, conditions and restrictions contained in, and the form of, Option Agreements, Restricted
Stock Unit Agreements, Stock Appreciation Right Agreements, and Stock Issuance Agreement; (e) to determine the identity or
capacity of any persons who may be entitled to exercise a Participant’s rights under any Option Agreement, Restricted Stock
Unit Agreement, Stock Appreciation Right Agreement, or Stock Issuance Agreement under the Plan; (f) to correct any defect
or supply any omission or reconcile any inconsistency in the Plan or in any Option Agreement, Restricted Stock Unit Agreement,
Stock Appreciation Right Agreement, or Stock Issuance Agreement; (g) to accelerate the vesting of any Option, Restricted Stock
Unit, Stock Appreciation Right, or Restricted Shares; (h) to extend the expiration date of any Option Agreement, Stock
Appreciation Right Agreement, or Stock Issuance Agreement; (i) subject to Section 9.03, to amend outstanding Option Agreements,
Restricted Stock Unit Agreements, Stock Appreciation Right Agreements, or Stock Issuance Agreements to provide for, among other
things, any change or modification which the Administrator could have included in the original agreement or in furtherance of the
powers provided for herein; and (j) to make all other determinations necessary or advisable for the administration of this
Plan, but only to the extent not contrary to the express provisions of this Plan.  Any action, decision, interpretation or
determination made in good faith by the Administrator in the exercise of its authority conferred upon it under this Plan shall
be final and binding on the Company and all Participants.  Notwithstanding any term or provision in this Plan, the Administrator
shall not have the power or authority, by amendment or otherwise to extend the expiration date of an Option or Stock Appreciation
Right beyond the tenth (10th) anniversary of the date such Option or Stock Appreciation Right was granted.

 

    	12

    	 

    

 

Section 9.03        Repricing Prohibited. Subject to Section 4.02, and except in connection with a corporate transaction involving the Company
(including, without limitation, any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization,
merger, consolidation, split-up, spin-off, combination, or exchange of shares), neither the Committee nor the Board shall amend
the terms of outstanding awards to reduce the Exercise Price of outstanding Options or the Base Price of outstanding Stock Appreciation
Rights or cancel outstanding Options, Stock Appreciation Rights, or Restricted Shares in exchange for cash, other awards or Options
with an Exercise Price that is less than the Exercise Price of the original Options or Stock Appreciation Rights with a Base Price
that is less than the Base Price of the original Stock Appreciation Rights, without approval of the Company’s stockholders,
evidenced by a majority of votes cast at a meeting duly called and held or by written consent of shareholders holding a majority
of the voting control of the Company.

 

Section 9.0        Limitation
on Liability.  No employee of the Company or member of the Board or Committee shall be subject to any liability with
respect to duties under the Plan unless the person acts fraudulently or in bad faith.  To the extent permitted by law, the
Company shall indemnify each member of the Board or Committee, and any employee of the Company with duties under the Plan, who
was or is a party, or is threatened to be made a party, to any threatened, pending or completed proceeding, whether civil, criminal,
administrative or investigative, by reason of such person’s conduct in the performance of duties under the Plan.

 

Article
10.

CHANGE IN CONTROL

 

Section 10.01    Options and Stock Appreciation Rights. Vesting of all outstanding Options, Stock or Appreciation Rights shall accelerate
automatically effective as of immediately prior to the consummation of the Change in Control. In connection with such acceleration,
the Administrator in its discretion may provide, in connection with the Change in Control transaction, for the purchase or exchange
of each Option or Stock Appreciation Right for an amount of cash or other property having a value equal to (i) with respect to
each Option, the amount (or “spread”) by which, (x) the value of the cash or other property that the Optionee would
have received pursuant to the Change in Control transaction in exchange for the shares issuable upon exercise of the Option had
the Option been exercised immediately prior to the Change in Control, exceeds (y) the Exercise Price of the Option, and (ii) with
respect to each Stock Appreciation Right, the value of the cash or other property that the Participant would have received had
the Stock Appreciation Right been exercised immediately prior to the Change in Control. The Administrator shall have the discretion
to provide in each Option Agreement and Stock Appreciation Right Agreement other terms and conditions that relate to vesting of
such Option or Stock Appreciation Right in the event of a Change in Control. The aforementioned terms and conditions may vary in
each Option Agreement and Stock Appreciation Right Agreement, and may be different from and have precedence over the provisions
set forth in this Section 10.01.

 

    	13

    	 

    

 

Section 10.02    Restricted Stock Units and Restricted Shares. All Restricted Stock Units and unvested Restricted Shares shall vest in
full effective as of immediately prior to the consummation of the Change in Control. Except as otherwise provided in the specific
Restricted Stock Unit Agreement or the Stock Issuance Agreement, in connection with such acceleration, the Administrator in its
discretion may provide, in connection with the Change in Control transaction, for the purchase or exchange of each Restricted Stock
Unit or Restricted Share for an amount of cash or other property having a value equal to the value of the cash or other property
that the Participant would have received had the Restricted Stock Unit or Restricted Share vested immediately prior to the Change
in Control. The Administrator shall have the discretion to provide in each Restricted Stock Unit Agreement and Stock Issuance Agreement
other terms and conditions that relate to vesting of such Restricted Stock Units and Restricted Shares in the event of a Change
in Control. The aforementioned terms and conditions may vary in each Restricted Stock Unit Agreement and Stock Issuance Agreement,
and may be different from and have precedence over the provisions set forth in this Section 10.02.

 

Article
11.

AMENDMENT AND TERMINATION OF THE PLAN

 

Section 11.01    Amendments. The Board may from time to time alter, amend, suspend or terminate this Plan in such respects as the Board
may deem advisable. No such alteration, amendment, suspension or termination shall be made which shall substantially affect or
impair the rights of any Participant under an outstanding Option Agreement, Restricted Stock Unit Agreement, Stock Appreciation
Right Agreement, or Stock Issuance Agreement without such Participant’s consent. The Board may alter or amend the Plan to
comply with requirements under the Code relating to Incentive Options or other types of options which give Optionees more favorable
tax treatment than that applicable to Options granted under this Plan as of the date of its adoption. Upon any such alteration
or amendment, any outstanding Option granted hereunder may, if the Administrator so determines and if permitted by applicable law,
be subject to the more favorable tax treatment afforded to an Optionee pursuant to such terms and conditions.

 

Section 11.02    Plan Termination. Unless this Plan shall theretofore have been terminated, the Plan shall terminate on the tenth (10th)
anniversary of the Effective Date and no Options, Restricted Stock Units, Stock Appreciation Rights, or Restricted Shares may be
granted under the Plan thereafter, but Option Agreements, Restricted Stock Unit Agreements, Stock Appreciation Right Agreements,
and Stock Issuance Agreements then outstanding shall continue in effect in accordance with their respective terms.

 

Article
12.

TAXES

 

Section 12.01    Withholding. The Company shall have the power to withhold, or require a Participant to remit to the Company, an amount
sufficient to satisfy any applicable Federal, state, and local tax withholding requirements with respect to any Options, Restricted
Stock Units, Stock Appreciation Rights, or Restricted Shares. To the extent permissible under applicable tax, securities and other
laws, the Administrator may, in its sole discretion and upon such terms and conditions as it may deem appropriate, permit a Participant
to satisfy his or her obligation to pay any such tax, in whole or in part, up to an amount determined on the basis of the highest
marginal tax rate applicable to such Participant, by (a) directing the Company to apply shares of Common Stock to which the Participant
is entitled as a result of the exercise of an Option or Stock Appreciation Right or vesting of a Restricted Stock Unit or Restricted
Share, or (b) delivering to the Company shares of Common Stock owned by the Participant. The shares of Common Stock so applied
or delivered in satisfaction of the Participant’s tax withholding obligation shall be valued at their Fair Market Value as
of the date of measurement of the amount of income subject to withholding.

 

    	14

    	 

    

 

Section 12.02    Compliance with Section 409A of the Code. Options, Restricted Stock Units, Stock Appreciation Rights, and Restricted
Shares will be designed and operated in such a manner that they are either exempt from the application of, or comply with, the
requirements of Section 409A of the Code such that the grant, payment, settlement or deferral will not be subject to the additional
tax or interest applicable under Section 409A of the Code, except as otherwise determined in the sole discretion of the Administrator.
The Plan and each Option Agreement, Restricted Stock Unit Agreement, Stock Appreciation Right Agreement, and Stock Issuance Agreement
is intended to meet the requirements of Section 409A of the Code and will be construed and interpreted in accordance with such
intent, except as otherwise determined in the sole discretion of the Administrator. To the extent that an Option, Restricted Stock
Unit, Stock Appreciation Right, or Restricted Share, or grant, payment, settlement or deferral thereof is subject to Section 409A
of the Code such Option, Restricted Stock Unit, Stock Appreciation Right, or Restricted Share will be granted, paid, settled or
deferred in a manner that will meet the requirements of Section 409A of the Code, such that the grant, payment, settlement or deferral
thereof will not be subject to the additional tax or interest applicable under Section 409A of the Code.

 

Article
13.

MISCELLANEOUS

 

Section 13.01    Shareholder
Approval of the Plan. The Plan shall be approved by a majority of the outstanding securities entitled to vote by the later
of (i) within twelve (12) months before or after the date the Plan is adopted, or (2) prior to or within twelve (12) months of
the granting of any Incentive Options or Nonqualified Options, or the issuance of any Restricted Stock Units, Stock Appreciation
Rights, or Restricted Shares. If any Incentive Options or Nonqualified Options is exercised, or any Restricted Stock Units, Stock
Appreciation Rights, or Restricted Shares is issued before security holder approval is obtained shall be rescinded if security
holder approval is not obtained in the manner described in the preceding sentence.

 

Section 13.02    Benefits
Not Alienable. Other than as provided above, benefits under this Plan may not be assigned or alienated, whether voluntarily
or involuntarily. Any unauthorized attempt at assignment, transfer, pledge or other disposition shall be without effect.

 

Section 13.03    No
Enlargement of Employee Rights. This Plan is strictly a voluntary undertaking on the part of the Company and shall not be
deemed to constitute a contract between the Company and any Participant to be consideration for, or an inducement to, or a condition
of, the employment of any Participant. Nothing contained in the Plan shall be deemed to give the right to any Participant to be
retained as an employee of the Company or any Affiliated Company or to interfere with the right of the Company or any Affiliated
Company to discharge any Participant at any time.

 

Section 13.04    Application
of Funds. The proceeds received by the Company from the sale of Common Stock pursuant to Option Agreements, except as otherwise
provided herein, will be used for general corporate purposes.

 

 

[Shareholder approval of the Plan was obtained on June 23,
2014]

 

    	15

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