Document:

EX-10.4

 Exhibit 10.4 

SEVERANCE AND CHANGE IN CONTROL AGREEMENT 

THIS SEVERANCE AND CHANGE IN CONTROL AGREEMENT (this “Agreement”), is entered into this 30th day of June, 2017 (“Effective Date”) by and among United Community Financial Corp., a bank holding company incorporated under Ohio law (“UCFC”), Home Savings Bank, an Ohio
charted bank (“Home Savings”) (collectively with UCFC, the “Company”) and Barbara J. Radis, an individual (hereinafter referred to as the “Executive”). 

WITNESSETH: 
 WHEREAS, the
Executive and the Company desire to enter into this Agreement to provide Executive with the opportunity to receive severance protections in connection with termination of employment or a Change in Control (defined below) of the Company. The purpose
of the Agreement is to retain talent and to assure the present and future continuity, objectivity and dedication of management in the event of any Change in Control in order to maximize the value of the Company on a Change in Control. 

NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, and for other good and valuable consideration, the
receipt and sufficiency of which is acknowledged by the parties, the Company and the Executive, each party intending to be legally bound, hereby agree as follows: 

1.        Term. 

(a)        Term. Upon the terms and subject to the conditions of this Agreement, the Agreement
shall be effective on the Effective Date and shall end one year from the date thereof (the “Term”), except as otherwise provided in Section 1(b). The Term may be terminated as set forth in this Section 2 of this Agreement. 

(b)        Renewal. The Term of this Agreement shall be extended automatically for an
additional period of 12 months, unless either the Company or the Executive provides the other party with written notice that the Term shall not be so extended within at least 90 days prior to the end of the Term. 

2.        Termination of Employment and this Agreement. For purposes of this Agreement, any reference to the
Executive’s “termination of employment” (or any form thereof) shall mean the Executive’s “separation from service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”), and Treasury Regulation §1.409A-1(h). 
 (a)        Death of
Executive. The Term will terminate upon the Executive’s termination of employment due to his death, and the Executive’s beneficiary (as designated by the Executive in writing with the Company prior to the Executive’s death) will
be entitled to the following payments and benefits: 
  

	 	(i)	Any Base Salary that is accrued but unpaid and any business expenses that are unreimbursed – all, as of the date of termination of employment, paid within 30 days after the date of the Executive’s death;

  

	 	(ii)	Any rights and benefits (if any) provided under any employee benefit plans and programs of the Company, determined in accordance with the 

	 	applicable terms and provisions of such plans and programs (the payments described in Sections 2(a)(i) and (ii) are hereinafter collectively referred to as the “Accrued Obligations”); and

  

	 	(iii)	An amount equal to 3 months of Executive’s Base Salary, paid within 60 days of death. 

 In
the absence of a beneficiary designation by the Executive, or, if the Executive’s designated beneficiary does not survive the Executive, payments and benefits described in this Section 2(a) will be paid to the Executive’s estate. 

(b)        Disability. For purposes of this Agreement, “Permanent Disability” means a
physical or mental impairment that renders the Executive incapable of performing the essential functions of the Executive’s job, on a full-time basis, even taking into account reasonable accommodation required by law, as determined by a
physician who is selected by the agreement of the Executive and the Company, for a period of greater than 150 days. 
  

	 	(i)	During any period that the Executive fails to perform the Executive’s duties hereunder as a result of a Permanent Disability (“Disability Period”), the Executive will continue to receive the
Executive’s Base Salary at the rate then in effect for such period until the Executive’s employment is terminated; provided, however, that payments of Base Salary so made to the Executive will be reduced by the sum of the amounts, if any,
that were payable to the Executive at or before the time of any such salary payment under any disability benefit plan or plans of the Company and that were not previously applied to reduce any payment of Base Salary. 

 

	 	(ii)	The Company shall pay the Executive a lump sum payment equal to 18 months of COBRA premiums for the coverage Executive had in place, if any, at the date of termination of employment, at the rate of premium in effect at
the time of such eligibility, paid within 60 days of such eligibility. 

  

	 	(iii)	In the event that the Company elects to terminate the Executive’s employment due to Disability, the Executive will be entitled to payment of the Accrued Obligations as described in Section 2(a);

  

	 	(iv)	 In the event that the Company elects to terminate the Executive’s employment due to Disability, the
Executive will be entitled to payment of an amount equal to 2 (two) times the Executive’s Base Salary plus an amount equal to 2 (two) times target annual incentive compensation in effect on the date of the Executive’s termination of
employment, provided that for purposes of this Section 2(b)(iv), Base Salary shall not be reduced for any disability benefits as described under Section 2(b)(i) (nor shall Base Salary be deemed to include any disability benefits payable
under Sections 2(b)(ii) – (v)). Except as otherwise prohibited by applicable Federal or state law or regulation and as otherwise mutually agreed to by the Executive and the Company, the payment due under this Section 2(b)(iv) shall be paid
immediately following the date of 

  
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termination and be made in accordance with the Company’s normal payroll practices. 

  

	 	(v)	In the event that the Company elects to terminate the Executive’s employment due to Disability, the Executive will also be entitled to payment of any accrued but unpaid annual incentive award, which shall be paid
pursuant to the terms of the applicable incentive plan. 

 (c)        For Cause
Termination. In the event that the Company terminates the Executive’s employment for “Cause,” the Term of this Agreement shall end as of such termination of employment, and the Executive will only be entitled to payment of the
Accrued Obligations in accordance with the schedule described in Section 2(a). For purposes of this Agreement, “Cause” means: 
  

	 	(i)	the Executive’s continued intentional failure or refusal to perform substantially the Executive’s assigned duties (other than as a result of total or partial incapacity due to physical or mental illness) for a
period of ten days following written notice by the Company to the Executive of such failure; 

  

	 	(ii)	the Executive’s engagement in willful misconduct, including without limitation, fraud, embezzlement, theft or dishonesty in the course of the Executive’s employment with the Company; 

 

	 	(iii)	the Executive’s conviction of, or plea of guilty or nolo contendere to a felony or a crime other than a felony, which felony or crime involves moral turpitude or a breach of trust or fiduciary duty owed to the
Company or any of their Affiliates; or 

  

	 	(iv)	the Executive’s disclosure of trade secrets or material, non-public confidential information of the Company or any of its Affiliates in violation of the Company’s or its Affiliates’ policies that applies
to the Executive or any agreement with the Company or any of its Affiliates in respect of confidentiality, nondisclosure or otherwise. 

(d)        Termination Without Cause. If the Executive’s employment is terminated by the
Company for any reason other than the reasons set forth in subsections (a), (b), (c), (e) or (f) of this Section 2, the Executive will be entitled to the following payments and benefits: 

 

	 	(i)	Payment of the Accrued Obligations as described in Section 2(a); 

  

	 	(ii)	 Payment of an amount equal to 2 (two) times the Executive’s Base Salary plus an amount equal to 2 (two)
times target annual incentive compensation in effect on the date of the Executive’s termination of employment, provided that for purposes of this Section 2(d)(ii), Base Salary shall not be reduced for any disability benefits as described
under Section 2(b)(i) (nor shall Base Salary be deemed to include any disability benefits payable under Sections 2(b)(ii) – (v)). Except as otherwise prohibited by applicable Federal or state law or regulation and as otherwise mutually
agreed to by the Executive and the Company, the 

  
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payment due under this Section 2(d)(ii) shall be paid immediately following the date of termination and be made in accordance with the Company’s normal payroll practices.

  

	 	(iii)	Payment of any accrued but unpaid annual incentive award, which shall be paid pursuant to the terms of the applicable incentive plan; and 

 

	 	(iv)	A lump sum payment equal to 18 months of COBRA premiums for the coverage Executive had in place, if any, at the date of termination of employment, at the rate of premium in effect at the date of termination of
employment, paid within 60 days of termination of employment. 

 (e)        Good
Reason Termination. The Executive may resign and terminate the Term and the Executive’s employment with the Company for “Good Reason” upon not less than 30 days prior written notice to the Company if the Company fails to fully
cure the effect of such condition within 30 days following receipt of Executive’s written notice. 
  

	 	(i)	For purposes of this Agreement, the Executive will have “Good Reason” to terminate the Executive’s employment with the Company if any of the following events occur without the Executive’s consent:

  

	 	(A)	A material diminution in the Executive’s Base Salary; 

  

	 	(B)	A material reduction by the Company of Executive’s duties, responsibilities, authority, or reporting relationship such that Executive no longer serves in as substantive, senior executive role for the Company
comparable in stature to Executive’s current role; 

  

	 	(C)	A material diminution in title; 

  

	 	(D)	A material change in the geographic location in which the Executive must perform services under this Agreement. For purposes of this Agreement, a material change in the geographic location shall mean the relocation of
the Executive’s principal place of employment to a new location that is over 50 miles from the former location(s); 

  

	 	(E)	The Company provides 90 days’ notice to the Executive that it will not renew the Agreement or offer the Executive a substantially similar agreement; or 

 

	 	(F)	Any other action or inaction that constitutes a material breach of this Agreement. 

Notwithstanding the foregoing, Good Reason shall cease to exist for an event on the 90th day following the later of its occurrence or the
Executive’s knowledge thereof, unless the Executive has given the Company written notice of the Executive’s intent to terminate prior to such date. 

  
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 The mere occurrence of a Change in Control shall not constitute “Good Reason” for the
Executive to voluntarily terminate the Term and the Executive’s employment. 
  

	 	(ii)	In the event that the Executive terminates the Executive’s employment with the Company for Good Reason pursuant to Section 2(e)(i)(A), or (D)-(F), the Term of this Agreement shall end as of such termination
from employment, and the Executive will be entitled to: 

  

	 	(A)	Payment of the Accrued Obligations as described in Section 2(a); 

  

	 	(B)	Payment of an amount equal to 2 (two) times the Executive’s Base Salary plus an amount equal to 2 (two) times target annual incentive compensation in effect on the date of the Executive’s termination of
employment, provided that for purposes of this Section 2(e)(ii), Base Salary shall not be reduced for any disability benefits as described under Section 2(b)(i) (nor shall Base Salary be deemed to include any disability benefits payable
under Sections 2(b)(ii) – (v)). Except as otherwise prohibited by applicable Federal or state law or regulation and as otherwise mutually agreed to by the Executive and the Company, the payment due under this Section 2(e)(ii) shall be paid
immediately following the date of termination and be made in accordance with the Company’s normal payroll practices. 

  

	 	(C)	Payment of any accrued but unpaid annual incentive award, which shall be paid pursuant to the terms of the applicable incentive plan; and 

 

	 	(D)	A lump sum payment equal to 18 months of COBRA premiums for the coverage Executive had in place, if any, at the date of termination of employment, at the rate of premium in effect at the date of termination of
employment, paid within 60 days of termination of employment. 

  

	 	(iii)	In the event that the Executive terminates the Executive’s employment with the Company for Good Reason pursuant to Section 2(e)(i)(B) or (C), the Term of this Agreement shall end as of such termination from
employment, and the Executive will be entitled to the payments and benefits described above in Sections 2(e)(ii)(A), (C) and (D), and further entitled to: 

  

	 	(A)	 Payment of an amount equal to 1 (one) time the Executive’s Base Salary plus an amount equal to 1(one) time
target annual incentive compensation in effect on the date of the Executive’s termination of employment, provided that for purposes of this Section 2(e)(iii), Base Salary shall not be reduced for any disability benefits as described under
Section 2(b)(i) (nor shall Base Salary be deemed to include any disability benefits payable under Sections 2(b)(ii) – 

  
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(v)). Except as otherwise prohibited by applicable Federal or state law or regulation and as otherwise mutually agreed to by the Executive and the Company, the payment due under this
Section 2(e)(iii) shall be paid immediately following the date of termination and be made in accordance with the Company’s normal payroll practices. 

(f)        Termination in Connection with Change In Control. In the event that during the Term,
a Change in Control of the Company occurs and, within 9 months prior or 12 months following such Change in Control, this Agreement and the Executive’s employment is terminated by the Company or its successor without Cause as described in
Section 2(d) or is terminated for Good Reason by the Executive as described in Section 2(e), then in lieu of any payment that might be provided under such Section 2(d) or 2(e), as applicable, of this Agreement, the Executive will be
entitled to the following payments and benefits from the Company or its successors: 
  

	 	(i)	Payment of the Accrued Obligations as described in Section 2(a); 

  

	 	(ii)	Payment of an amount equal to 2 (two) times the Executive’s Base Salary plus an amount equal to 2 (two) times target annual incentive compensation in effect on the date of the Executive’s termination of
employment, provided that for purposes of this Section 2(f)(ii), Base Salary shall not be reduced for any disability benefits as described under Section 2(b)(i) (nor shall Base Salary be deemed to include any disability benefits payable
under Sections 2(b)(ii) – (v)). Except as otherwise prohibited by applicable Federal or state law or regulation and as otherwise reasonably requested by the Executive, the payment due under this Section 2(f)(ii) shall be paid immediately
following the date of termination and be made in accordance with the Company’s normal payroll practices. 

  

	 	(iii)	Payment of any accrued but unpaid annual incentive award, which shall be paid pursuant to the terms of the applicable incentive plan; and 

 

	 	(iv)	A lump sum payment equal to 18 months of COBRA premiums for the coverage Executive had in place, if any, at the date of termination of employment, at the rate of premium in effect at the date of termination of
employment, paid within 60 days of termination of employment. 

(g)        Definition of Change in Control. For purposes of this Agreement, a “Change in
Control” shall mean the occurrence of any of the following events: 
  

	 	(i)	The date any one person, or more than one person acting as a group acquires ownership of shares of UCFC possessing 25% or more of the total voting power of the shares of UCFC; 

 

	 	(ii)	The date that any one person, or more than one person acting as a group, acquires the ability to control the election of a majority of the directors of UCFC or Home Savings; 

  
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	 	(iii)	The date a majority of the members of the Board of UCFC or Home Savings is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of such Board before
the date of the appointment or election; or 

  

	 	(iv)	The acquisition by any person, or more than one person acting as a group, of “control” of UCFC or Home Savings within the meaning of 12 C.F.R. Section 303.81(c). 

For purposes of this subsection (g), the term “person” refers to an individual or corporation, partnership, trust, association,
limited liability company or other organization, but does not include the Executive and any person or persons with whom the Executive is “acting in concert” within the meaning of 12 C.F.R. Section 303.81(b). 

(h)        Treatment of Taxes. If payments provided under this Agreement, when combined with
payments and benefits under all other plans and programs maintained by the Company, constitute “parachute payments” within the meaning of Code Section 280G, the Company or its successor will reduce the Executive’s payments and
benefits under this Agreement and/or the other plans and programs maintained by the Company so that the Executive’s total payments and benefits under this Agreement and all other plans and programs will be $1.00 less than the amount that would
be considered a “parachute payment.” Any reduction pursuant to this Section 2(h) shall be applied consistent with the requirements of Code Section 409A. In addition, in the event of any subsequent inquiries regarding the
treatment of tax payments under this Section 2(h), the parties will agree to the procedures to be followed in order to deal with such inquiries. 

(i)        Release. As a condition to receiving any payments, other than payment of the Accrued
Obligations and accrued but unpaid bonus (if any), pursuant to this Agreement, the Executive agrees to release the Company and all of its Affiliates, employees and directors from any and all claims that the Executive may have against the Company and
all of its Affiliates, employees and directors up to and including the date the Executive signs a Waiver and Release of Claims (“Release”) in the form provided by the Company, which form shall provide for such waivers and/or revocation
periods as are required by, or advisable under, applicable Federal law and/or regulation, and which Release shall be substantially similar to the Form of General Release set forth in Appendix A to this Agreement. Notwithstanding anything to the
contrary in this Agreement, the Executive acknowledges that the Executive is not entitled to receive, and will not receive, any payments pursuant to this Agreement unless and until the Executive provides the Company with said Release prior to the
first date that payment is to be made or is to commence; and if the release execution period begins in one taxable year and ends in another taxable year, payment shall not be made until the beginning of the second taxable year. 

(j)        Coordination of Benefits. If the Executive’s employment is terminated for any
reason described in Sections 2(b), 2(d) or 2(e) and, after such termination, Executive becomes entitled to payments under Section 2(f), the Executive shall receive the payments described in Section 2(f), at the time and in the form
described in Section 2(f), less the amount of any payments previously paid that are described in Sections 2(b)(ii)-(v), 2(d) or 2(e). 

(k)        Attorney’s Fees. It is the intent of the Company that the Executive obtain the
benefits of this Agreement without reduction due to the need to expend funds to pay legal fees or expenses to enforce this Agreement. Therefore, in the event the Executive determines it is 

  
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necessary to expend such funds to obtain any payments due hereunder in a timely manner, the Company shall promptly advance all reasonable legal fees and expenses incurred by Executive to obtain
such payments. The Executive shall repay such funds to such Company if and only if Executive brings a legal action to enforce this Agreement and a final non-appealable order is entered in such action that all of Executive’s claims are
frivolous. 
 3.        Withholding. All payments required to be made by the Company hereunder to the
Executive shall be subject to the withholding of such amounts, if any, relating to Federal, State and local tax and other payroll deductions as the Company may reasonably determine should be withheld pursuant to any applicable law or regulation.

 4.        Special Regulatory Events. Notwithstanding anything to the contrary contained herein, the
Executive acknowledges and agrees that any payments made to the Executive pursuant to this Agreement are subject to and conditioned on compliance with the provisions of 12 U.S.C. §1828(k) and Part 359 of the Federal Deposit Insurance
Corporation (FDIC) regulations (12 C.F.R. Part 359), which contain certain prohibitions and limitations on the making of “golden parachute” and certain indemnification payments by FDIC-insured institutions and their holding companies. In
the event any payments to the Executive pursuant to this Agreement are prohibited or limited by the provisions of such statute or regulation, UCFC or Home Savings, as the case may be, will use its commercially reasonable efforts to obtain the
consent of the appropriate regulatory authorities to the payment to the Executive of the maximum amount that is permitted (up to the full amount due under the terms of this Agreement). 

5.        Consolidation, Merger or Sale of Assets. Nothing in this Agreement shall preclude the Company from
consolidating with, merging into, or transferring all, or substantially all, of their assets to another corporation that assumes all their obligations and undertakings hereunder. Upon such a consolidation, merger or transfer of assets, the term
“Company” as used herein, shall mean such other corporation or entity, and this Agreement shall continue in full force and effect. 

6.        Non-Solicitation Covenant. The Executive agrees that, during the Term, including any extension
thereof, and for a period of one year following the Executive’s termination of employment, the Executive shall not, without the express written consent of the Company: 

(a)        Call upon or solicit, either for the Executive or for any other person or firm that engages
in competition with any business operation actively conducted by the Company or any Affiliate during the Term, any customer with whom the Company or any Affiliate directly conducts business during the Term; or interfere with any relationship,
contractual or otherwise, between the Company or any Affiliate and any customer with whom the Company or any Affiliate directly conducts business during the Term; or 

(b)        Induce or solicit any person who is at the date of termination or was during the 12 months
preceding termination an employee, officer or agent of the Company or any Affiliate to terminate said relationship, except as pursuant to Executive’s duties for the Company. 

In the event of a breach by the Executive of any covenant set forth in this Section 6, the term of such covenant will be extended by the
period of the duration of such breach and such covenant as so extended will survive any termination of this Agreement. 

  
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 The restrictions on solicitation provided herein shall be in addition to any restrictions on
solicitation contained in any other agreement between the Company and the Executive and may be enforced by the Company and/or any successor thereto, by an action to recover payments made under this Agreement, an action for injunction, and/or an
action for damages. The provisions of this Section 6 constitute an essential element of this Agreement, without which the Company would not have entered into this Agreement. Notwithstanding any other remedy available to the Company at law or at
equity, the parties hereto agree that the Company or any successor thereto, will have the right, at any and all times, to seek injunctive relief in order to enforce the terms and conditions of this Section 6. 

If the scope of any restriction contained in this Section 6 is too broad to permit enforcement of such restriction to its fullest extent,
then such restriction will be enforced to the maximum extent permitted by law, and the Executive hereby consents and agrees that such scope may be judicially modified accordingly in any proceeding brought to enforce such restriction. 

7.        Confidential Information. The Executive will hold in a fiduciary capacity, for the benefit of the
Company, all secret or confidential information, knowledge, and data relating to the Company and their Affiliates (“Confidential Information”), that shall have been obtained by the Executive in connection the Executive’s employment
with the Company and that is not public knowledge (other than by acts by the Executive or the Executive’s representatives in violation of this Agreement). During the Term and after termination of the Executive’s employment with the
Company, the Executive will not, without the prior written consent of the Company, communicate or divulge any material non-public Confidential Information to anyone other than the Company or those designated by them, unless the communication of such
information, knowledge or data is required pursuant to a compulsory proceeding in which the Executive’s failure to provide such information, knowledge, or data would subject the Executive to criminal or civil sanctions and then only if the
Executive provides notice to the Company prior to disclosure. 
 The restrictions imposed on the release of information described in this
Section 7 may be enforced by the Company and/or any successor thereto, by an action for injunction or an action for damages. The provisions of this Section 7 constitute an essential element of this Agreement, without which the Company
would not have entered into this Agreement. Notwithstanding any other remedy available to the Company at law or at equity, the parties hereto agree that the Company or any successor thereto, will have the right, at any and all times, to seek
injunctive relief in order to enforce the terms and conditions of this Section 7. 
 If the scope of any restriction contained in this
Section 7 is too broad to permit enforcement of such restriction to its fullest extent, then such restriction will be enforced to the maximum extent permitted by law, and the Executive hereby consents and agrees that such scope may be
judicially modified accordingly in any proceeding brought to enforce such restriction. 

8.        Non-Assignability. Neither this Agreement nor any right or interest hereunder shall be assignable by
the Executive, his beneficiaries or legal representatives without the Company’s prior written consent; provided, however, that nothing in this Section 8 shall preclude the Executive from designating a beneficiary to receive any benefits
payable hereunder upon his death or the executors, administrators or legal representatives of the Executive or his estate from assigning any rights hereunder to the person or persons entitled thereto. 

  
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 9.        No Attachment. Except as required by law, no right to
receive payment under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge or hypothecation or to execution, attachment, levy, or similar process of assignment by operation of law,
and any attempt, voluntary or involuntary, to effect any such action shall be null, void and of no effect. 

10.        Binding Agreement. This Agreement shall be binding upon, and inure to the benefit of, the Executive
and the Company and their successors and assigns. 
 11.        Amendment of Agreement. This Agreement may
not be modified or amended, except by an instrument in writing signed by the parties hereto. 

12.        Waiver. No term or condition of this Agreement shall be deemed to have been waived, nor shall there
be an estoppel against the enforcement of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel. No such written waiver shall be deemed a continuing waiver, unless specifically stated
therein, and each waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than the act specifically waived. 

13.        Severability. If, for any reason, any provision of this Agreement is held invalid, such invalidity
shall not affect the other provisions of this Agreement not held so invalid, and each such other provision shall, to the full extent consistent with applicable law, continue in full force and effect. If this Agreement is held invalid or cannot be
enforced, then any prior Agreement between the Company (or any predecessor thereof) and the Executive shall be deemed reinstated to the full extent permitted by law, as this Agreement had not been executed. 

14.        Headings. The headings of the paragraphs herein are included solely for convenience of reference and
shall not control the meaning or interpretation of any of the provisions of this Agreement. 
 15.        Effect
of Prior Agreements. This Agreement contains the entire understanding between the parties hereto and supersedes any prior employment agreement between the Company or any predecessor of the Company and the Executive. 

16.        Governing Law. This Agreement has been executed and delivered in the State of Ohio and its validity,
interpretation, performance, and enforcement shall be governed by the laws of the State of Ohio, except to the extent that federal law is governing. 

17.        WAIVER OF JURY TRIAL. THE COMPANY AND EXECUTIVE, EACH AFTER CONSULTING OR HAVING HAD THE
OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION ARISING OUT OF, OR RELATED TO, THIS AGREEMENT. NO PARTY SHALL SEEK TO CONSOLIDATE, BY
COUNTERCLAIM OR OTHERWISE, ANY LITIGATION IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER LITIGATION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. 

  
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 18.        Notices. Any notice required or permitted under this
Agreement shall be in writing and either delivered personally or sent by nationally recognized overnight courier, express mail, or certified or registered mail, postage prepaid, return receipt requested, at the following respective address unless
the party notifies the other party in writing of a change of address: 
 If to the Company: 

Chief Executive Officer 
 The
Home Savings and Loan Company of Youngstown, Ohio 
 275 West Federal Street 

Youngstown, Ohio 44503-1203 
 With a copy to:

 General Counsel 
 The Home
Savings and Loan Company of Youngstown, Ohio 
 275 West Federal Street 

Youngstown, Ohio 44503-1203 
 If to the
Executive: 
  

			
		 	Barbara J. Radis
		 	      

		 	      

 A notice delivered personally shall be deemed delivered and effective as of the date of delivery. A notice
sent by overnight courier or express mail shall be deemed delivered and effective one (1) business day after it is deposited with the postal authority or commercial carrier. A notice sent by certified or registered mail shall be deemed
delivered and effective two (2) business days after it is deposited with the postal authority. 

19.        Code Section 409A Requirements. 

(a)        Treatment of Reimbursements and/or In-Kind Benefits. Notwithstanding anything in
this Agreement to the contrary, any reimbursements or in-kind benefits provided under this Agreement (including any reimbursement for or provision or in-kind medical benefits beyond the period of time described in Treasury Regulation
§1.409A-1(b)(9)) shall be made or provided in accordance with the requirements of Section 409A of the Code, including, where applicable, the requirements that: (1) any reimbursement is for expenses incurred during the period of time
specified in this Agreement, (2) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during any taxable year of the Executive may not affect the expenses eligible for reimbursement, or in-kind benefits to be
provided, in any other taxable year of the Executive, (3) the reimbursement of an eligible expense will be made no later than the last day of the Executive’s taxable year following the year in which the expense is incurred, and
(4) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit. 

(b)        Six-Month Distribution Delay for Specified Employees. Notwithstanding anything in
this Agreement to the contrary, in the event that the Executive is a “specified 

  
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employee” (as defined in Code Section 409A) of the Company, or their Affiliates, as determined pursuant to the Company’s policies for identifying specified employees, on the date
of the Executive’s termination of employment and the Executive is entitled to a payment and/or a benefit under this Agreement that is required to be delayed pursuant to Code Section 409A(a)(2)(B)(i), then such payment or benefit, as
applicable, shall not be paid or provided (or begin to be paid or provided) until the first day of the seventh month following the date of the Executive’s termination of employment (or, if earlier, the date of the Executive’s death). The
first payment that can be made to the Executive following such period shall include the cumulative amount of any payments or benefits that could not be paid or provided during such period due to the application of Code Section 409A(a)(2)(B)(i).

 (c)        Compliance with Code Section 409A. The parties intend that this Agreement
comply with, or be exempt from, the requirements of Code Section 409A, as applicable, and, to the maximum extent permitted by law, shall administer, operate and construe this Agreement accordingly. For purposes of the limitations on
nonqualified deferred compensation under Code Section 409A, each payment of compensation under this Agreement shall be treated as a separate payment of compensation for purposes of applying the deferral election rules of Code Section 409A
and the exclusion from Code Section 409A for certain “short-term deferrals”. Any amounts payable solely on account of an “involuntary separation from service” within the meaning of Code Section 409A shall be excludible
from the requirements of Code Section 409A, either as “separation pay” or as a “short-term deferral” to the maximum possible extent. Nothing herein shall be construed as the guarantee of any particular tax treatment to the
Executive, and none of the Company, their Boards of Directors, or any Affiliates shall have any liability with respect to any failure to comply with the requirements of Code Section 409A. 

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 IN WITNESS WHEREOF, the Company have caused this Agreement to be executed by its duly authorized
officer and the Executive has signed this Agreement, each as of the day and year first above written. 
  

			
	HOME SAVINGS BANK
		
	By:	 	/s/ Gary M. Small
	Name:	 	Gary M. Small
	Title:	 	President & Chief Executive Officer

  

			
	UNITED COMMUNITY FINANCIAL CORP.
		
	By:	 	/s/ Gary M. Small
	Name:	 	Gary M. Small
	Title:	 	President & Chief Executive Officer

  

			
		
		 	/s/ Barbara J. Radis
	Name:	 	Barbara J. Radis

  
 13 

 Appendix A 

FORM OF WAIVER AND RELEASE 

The parties to this Waiver and Release (this “Agreement”), United Community Financial Corp., a bank holding company incorporated
under Ohio law (“UCFC”), Home Savings Bank, an Ohio chartered bank (“Home Savings”) and their respective affiliates, parents, successors, predecessors, and subsidiaries (collectively, the “Company”) and
                    , an individual (hereinafter referred to as the “Executive”) agree that: 

The Company employed Employee on an at-will basis, meaning that Employee or the Company could terminate the employment relationship at any
time and for any reason, not contrary to law. Employee and the Company now wish to terminate their employment relationship effective
                            , 20         (the
“Separation Date”) in a manner that is satisfactory to both Employee and the Company. 
 Executive and the Company, for the good
and valuable consideration stated below, the sufficiency of which is acknowledged, agree as follows: 
 1.        In
exchange for the Company’s promises in this Agreement, Executive, including Executive’s heirs, administrators, executors, spouse, if any, successors, estate, representatives and assigns and all others claiming by or through Executive,
voluntarily and knowingly releases the Company, parent companies, their subsidiaries, divisions, affiliates, related companies, predecessors, successors, partners, members, directors, officers, trustees, employees, independent contractors,
consultants, stockholders, owners, attorneys, agents, benefit plans, subrogees, insurers, representatives and assigns, whether alleged to have acted in their official capacities or personally (collectively, the “Released Parties”)
completely and forever, from any and all claims, causes of action, suits, contracts, promises, or demands of any kind, which Executive may now have, whether known or unknown, intentional or otherwise, from the beginning of time to the Effective Date
of this Agreement, with the sole and limited exception of the rights and claims reserved in Paragraph 2.1. The Effective Date of this Agreement is the date it is signed by Executive. 

2.        Executive understands and agrees that this Agreement covers all claims described in Paragraph 1, including,
but not limited to, any alleged violation of: 
  

	 	•	 	the Civil Rights Act of 1991; 

  

	 	•	 	Title VII of the Civil Rights Act of 1964, as amended; 

  

	 	•	 	Americans with Disabilities Act; 

  

	 	•	 	Employee Retirement Income Security Act; 

  

	 	•	 	the Worker Adjustment and Retraining Notification Act; 

  

	 	•	 	the Family Medical Leave Act; 

  
 A-1 

	 	•	 	the Age Discrimination in Employment Act as amended by the Older Workers Benefit Protection Act; 

  

	 	•	 	the Fair Labor Standards Act, to the extent permitted by law; 

  

	 	•	 	the Occupational Safety and Health Act of 1970; 

  

	 	•	 	The Ohio Fair Employment Practices Law, including but not limited to O.R.C. Title 41 § 4112.01 et seq; 

  

	 	•	 	the Ohio Fair Employment Practices Law, ORC, Title 41 § 4112-01 et seq., as amended; 

  

	 	•	 	the Ohio Commission Policies Statement on Aids; 

  

	 	•	 	the Ohio Equal Pay Law, O.R.C. Title 41 § 4111.13, 4111.17, and 4111.99, et seq., as amended; 

  

	 	•	 	retaliation for exercise of rights under the Ohio Workers’ Compensation Law; 

  

	 	•	 	Workers’ Compensation Anti-Retaliation Act, Ohio Rev. Code § 4123.90; 

  

	 	•	 	Whistleblower Protection Act for Public Employees, Ohio Rev. Code § 124.341; 

  

	 	•	 	Ohio Whistleblower Statute, Ohio Rev. Code § 4113.52; 

  

	 	•	 	Ohio State Wage Payment and Work Hour Laws—Ohio Rev. Code Ann. § 4111.01, et seq.; 

  

	 	•	 	Ohio Political Action of Employees Laws; 

  

	 	•	 	Ohio Witness and Juror Leave Laws—Ohio Rev. Code Ann. § 2313.18, et seq.; 

  

	 	•	 	Ohio Voting Leave Laws—Ohio Rev. Code Ann. § 3599.06, et seq.; 

  

	 	•	 	Ohio Military Family Medical Leave Act—Ohio Rev. Code Ann. § 5906.01, et seq.; 

  

	 	•	 	and any other federal, state or local civil, labor, pension, wage-hour or human rights law, federal or state public policy, contract or tort law; 

 

	 	•	 	any claim arising under federal or state common law, including, but not limited to, constructive or wrongful discharge or intentional or negligent infliction of emotional distress; 

 

	 	•	 	and any claim for costs or attorney’s fees. 

2.1        This Agreement does not include, and Executive does not waive, any rights or
claims: (1) which may arise after Executive signs this Agreement; (2) for alleged workplace injuries or occupational disease that arise under any state’s workers’ compensation laws (Executive does waive and fully release the
Released Parties from any claims under Ohio Rev. 

  
 A-2 

 
Code § 4123.90); (3) for benefits in which Executive has a vested right under any pension plans; (4) which cannot be released by law; (5) to enforce this Agreement; or
(6) to participate in any proceedings before an administrative agency responsible for enforcing labor and/or employment laws, e.g., the Equal Employment Opportunity Commission. Executive agrees, however, to waive and release any right to
receive any monetary award from such proceedings. Nothing in this Agreement (including the confidentiality and non-disparagement provisions) shall be construed to limit Executive’s right to participate in administrative proceedings, as
described in this Paragraph 2.1, to provide information to an agency responsible for enforcing unemployment compensation laws, or to file an action to enforce this Agreement. 

This Agreement does not include, and Employee does not waive, any rights or claims: (1) which may arise after Employee signs this
Agreement; (2) for alleged workplace injuries or occupational disease that arise under any state’s workers’ compensation laws; (3) which cannot be released by law; (4) to enforce this Agreement; or (5) to participate in
any proceedings before and administrative agency responsible for enforcing labor and/or employment laws, e.g., the Equal Employment Opportunity Commission. Employee agrees, however, to waive and release any right to receive any monetary award
from proceedings before the Equal Employment Opportunity Commission and parallel state agencies. 
 Nothing in this Agreement
(including the confidentiality and non-disparagement provisions) shall be construed to limit Employee’s right to (1) respond accurately and fully to any question, inquiry or request for information when required by legal process or from
initiating communications directly with, or responding to any inquiry from, or providing testimony before, any self-regulatory organization or state or federal regulatory authority, regarding the Company, Employee’s employment, or this
Agreement. Employee is not required to contact the Company regarding the subject matter of any such communications before engaging in such communications; (2) disclose information to an administrative agency responsible for enforcing labor
and/or employment laws; or (3) to provide information to an agency responsible for enforcing unemployment compensation laws. 

3.        Executive agrees to keep the terms of this Agreement confidential and not to disclose the terms of this
Agreement to any third party at any time, other than to Executive’s attorneys, taxing authorities, accountants, or as otherwise required by law. Executive agrees to use Executive’s best efforts to ensure that the terms of this Agreement
are kept confidential by Executive’s spouse, heirs, assigns, attorneys, etc. 

3.1        Executive is not prohibited from disclosing the terms of this Agreement to Executive’s
spouse, if any, attorney, if any, or accountant, in a proceeding to enforce its terms, or as otherwise required by law or court order. Should Executive receive legal papers or process that Executive believes would require Executive to disclose the
terms of this Agreement, Executive agrees to notify, in writing and within 7 days of Executive’s receipt of such legal papers or process, Jude J. Nohra, Executive Vice President, General Counsel & Secretary, Home Savings Bank, 275 W.
Federal Street, Youngstown, Ohio 44503, 330.742.0572. 
 4.        In exchange for Executive’s promises
contained herein, the Company agrees to pay Executive in accordance with the Severance and Change in Control Agreement. 

5.        The parties agree that if any provision of this Agreement is declared illegal or unenforceable by any court
of competent jurisdiction and cannot be modified to be enforceable, 

  
 A-3 

 
including the general release language, the provision declared illegal or unenforceable will immediately become null and void, leaving the remainder of this Agreement in full force and effect.

 6.        Executive declares and expressly warrants that Executive is not Medicare eligible, that Executive is
not a Medicare beneficiary, and that Executive is not within 30 months of becoming Medicare eligible; that Executive is not 65 years of age or older; that Executive is not suffering from end stage renal failure or amyotrophic lateral sclerosis; that
Executive has not received Social Security benefits for 24 months or longer; and/or that Executive has not applied for Social Security benefits, and/or has not been denied Social Security disability benefits and is not appealing any denial of Social
Security disability benefits. 
 6.1        Executive affirms, covenants and warrants that Executive
has made no claim for illness or injury against, nor is Executive aware of any facts supporting any claim against, the Released Parties under which the Released Parties could be liable for medical expenses incurred by Executive before or after the
execution of this Agreement. 
 6.2        Because Executive is not a Medicare recipient as of the
date of this release, Executive is aware of no medical expenses that Medicare paid and for which the Released Parties are or could be liable now or in the future. Executive agrees and affirms that, to the best of Executive’s knowledge, no liens
of any governmental entities, including those for Medicare conditional payments, exist. 
 7.        In compliance
with the Older Workers Benefit Protection Act, Executive is hereby advised to consult with an attorney regarding the terms, meaning and impact of this Agreement. 

7.1        IN ADDITION, EXECUTIVE UNDERSTANDS AND AGREES THAT: (A) BY SIGNING THIS AGREEMENT,
EXECUTIVE WAIVES AND RELEASES ANY CLAIMS EXECUTIVE MIGHT HAVE AGAINST ANY OF THE RELEASED PARTIES, INCLUDING, BUT NOT LIMITED TO, ANY CLAIMS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967; (B) EXECUTIVE HAS TWENTY-ONE (21) DAYS
FROM THE DATE OF RECEIPT OF THIS AGREEMENT TO CONSIDER WHETHER OR NOT TO EXECUTE THIS AGREEMENT, WHICH EXECUTIVE WAIVES BY VIRTUE OF EXECUTIVE’S EXECUTION OF THE AGREEMENT DURING THE CONSIDERATION PERIOD; AND (C) AFTER EXECUTIVE SIGNS THIS
AGREEMENT AND IT BECOMES EFFECTIVE, EXECUTIVE HAS SEVEN DAYS FROM THAT DATE TO CHANGE EXECUTIVE’S MIND AND REVOKE THE AGREEMENT. TO REVOKE THE AGREEMENT, EXECUTIVE MUST CLEARLY COMMUNICATE EXECUTIVE’S DECISION IN WRITING AS PROVIDED IN
PARAGRAPH 3.1 BY THE SEVENTH DAY FOLLOWING THE EFFECTIVE DATE OF THIS AGREEMENT. EXECUTIVE UNDERSTANDS AND AGREES THAT SHOULD EXECUTIVE REVOKE EXECUTIVE’S RELEASE AND WAIVER AS TO CLAIMS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF
1967, AS AMENDED, THE COMPANY’S OBLIGATIONS UNDER THIS AGREEMENT WILL BECOME NULL AND VOID. 

8.        Executive agrees that Executive will not, in any way, disparage the Company or any of the Released Parties.
The Company agrees that they will not, in any way, disparage Executive. 

  
 A-4 

 
Further, Executive and the Company agree that they will not make, nor solicit, any comments, statements, or the like to the media, or to others, that may be considered to be derogatory or
detrimental to the good name or business reputation of Executive or the Company. 
 9.        Executive acknowledges
that, through Executive’s employment with the Company, Executive has acquired and had access to the Company’s confidential and proprietary business information and trade secrets (“Confidential Information”). Executive
acknowledges and agrees that the Company prohibit the use or disclosure of its Confidential Information and that the Company have taken all reasonable steps necessary to protect the secrecy of such Confidential Information. Executive acknowledges
and agrees that “Confidential Information” includes any data or information that is valuable to the Company and not generally known to competitors of the Company or other outsiders, regardless of whether the confidential information is in
printed, written or electronic form, retained in Executive’s memory or has been compiled or created by Executive, including but not limited to: business plans; product designs, drawings and formulas; test and development data; customer or
prospective customer, vendor, supplier and distributor information; financial information; marketing strategies; pending projects and proposals; personnel and payroll records; pricing data; contract terms; proprietary production processes; third
party information that we have a duty to maintain as confidential; and other business-related information, which, if made available to our competitors or the public, would be advantageous to such competitors and detrimental to the Company. Executive
agrees that Executive has not and in the future will not use, or disclose to any third party, Confidential Information, unless compelled by law after reasonable advance notice to the Company, and further agrees to return all documents, disks, CDs,
DVDs, drives, storage devices or any other item or source containing Confidential Information, or any other of the Company’s property, to the Company upon execution of this Agreement. Employee understands that he shall not be held criminally or
civilly liable under any Federal or state trade secret law for the disclosure of a trade secret that: (1) is made (a) in confidence to a Federal, state, or local government official, either directly or indirectly, or to an attorney, and
(b) solely for the purpose of reporting or investigating a suspected violation of law; or (2) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Employee also understands
that disclosure of trade secrets to attorneys, made under seal, or pursuant to court order is also protected in certain circumstances under 18 U.S. Code §1833. If Executive has any question regarding what data or information would be considered
by the Company to be Confidential Information subject to this provision, Executive agrees to contact Jude J. Nohra, Executive Vice President, General Counsel & Secretary, Home Savings Bank, 275 W. Federal Street, Youngstown, Ohio 44503,
330.742.0572. 
 10.        THIS AGREEMENT CONTAINS THE COMPLETE UNDERSTANDING BETWEEN THE PARTIES. THE PARTIES
AGREE THAT NO PROMISES OR AGREEMENTS WILL BE BINDING OR WILL MODIFY THIS UNDERSTANDING UNLESS IN WRITING AND SIGNED BY BOTH PARTIES. THIS RELEASE SHALL NOT AFFECT THE VALIDITY OR ENFORCEABILITY OF ANY PRIOR WRITTEN AGREEMENTS BY AND BETWEEN COMPANY
AND EXECUTIVE. 
 11.        THE COMPANY AND EXECUTIVE, EACH AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY
TO CONSULT WITH LEGAL COUNSEL, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION ARISING OUT OF, OR 

  
 A-5 

 
RELATED TO, THIS AGREEMENT. NO PARTY SHALL SEEK TO CONSOLIDATE, BY COUNTERCLAIM OR OTHERWISE, ANY LITIGATION IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER LITIGATION IN WHICH A JURY
TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. 
 12.        This Agreement may be executed in multiple counterparts,
each of which will be considered an original, and all of which will be considered a single memorandum. If Executive signs a facsimile copy of this Agreement, Executive also will provide the Company with a conforming original copy. 

13.        The validity, construction, and interpretation of this Agreement and the rights and duties of the parties
to this Agreement will be governed by the laws of the State of Ohio without regard to any state conflict of law rules. 
 The parties agree
that they have read this Agreement, understand and agree to its terms, and have knowingly and voluntarily signed it on the dates written below. 
  

			
	“Executive”

 
			
		
	By:	 	   

 
			
	Name:	 	 

  

			
	HOME SAVINGS BANK

 
			
		
	By:	 	   

 
			
	Name:	 	 

 
			
	Title:	 	 

  

			
	UNITED COMMUNITY FINANCIAL CORP.

 
			
		
	By:	 	   

 
			
	Name:	 	 

 
			
	Title:	 	 

  
 A-6Blueprint

 

Exhibit
10.2

 

AMENDMENT
NO. 3 TO

SECURITIES
PURCHASE AGREEMENT

 

This
Amendment No. 3 (this “Amendment”) to Securities Purchase
Agreement dated as of September 9, 2016 (as amended, the
“Agreement”) is
made and entered into effective as of March 24, 2017 (the
“Effective
Date”), by and among root9B Holdings, Inc. (f/k/a
root9B Technologies, Inc.), a Delaware corporation (the
“Company”) and
the purchasers listed on Exhibit A of the Agreement (the
“Purchasers”).
Capitalized terms used but not otherwise defined herein shall have
the same meanings as set forth in the Agreement.

 

WHEREAS, the
Company previously sold secured convertible promissory notes (the
“Notes”) and
common stock purchase warrants (the “Warrants”) pursuant to the
Agreement.

 

WHEREAS, certain of
the Purchasers and new investors have agreed to purchase additional
Notes in the aggregate principal amount of $1,500,000 and Warrants
provided that the Agreement, the Notes and the Warrants are amended
to provide, among other things, (i) a conversion price and exercise
price of $10 per share (as previously adjusted for the
Company’s one-for-fifteen reverse stock split on December 1,
2016), (ii) Events of Default (as defined in the Notes) relating to
the Company’s ability to make payroll and maintain adequate
working capital levels, (iii) a new remedy allowing the Majority
Note Holders to nominate two (2) directors to the Company’s
Board of Directors upon the first occurrence of any Event of
Default, and (iv) a right of first refusal regarding any financing
or change in control transaction that arises after an Event of
Default (until cured).

 

WHEREAS, the
Company previously sold and issued securities, including certain
warrants (the “March
Warrants”) pursuant to that certain Amended and
Restated Securities Purchase Agreement, dated March 10, 2016 (the
“March
Agreement”) providing the holders with certain rights
upon the issuance of Additional Stock (as defined in the March
Agreement).

 

WHEREAS, the
Qualified Holders (as defined in the March Agreement) and the
Registered Holders (as defined in the March Warrant) under each
March Warrant, previously acknowledged and agreed that the Notes
and Warrants issued pursuant to the Agreement, any Shares issued
upon conversion of the Notes, any Shares issued upon exercise of
the Warrants, and any Interest Shares shall be excluded from the
definition of, and shall not constitute, Additional Stock (as that
term is defined in the March Agreement and the March Warrants)
under the March Agreement and the March Warrants, and waived any
rights that would arise in the event that any of the foregoing
securities constituted Additional Stock under the March Agreement
and/or the March Warrants.

 

WHEREAS,
concurrently herewith, the Qualified Holders and the Registered
Holders under each March Warrant will deliver to the Company a
waiver acknowledging and agreeing that the amendments to the Notes
and Warrants proposed by this Amendment, as well as the issuance of
the amended Notes and Warrants pursuant to the Agreement, any
Shares issued upon conversion of the Notes, any Shares issued upon
exercise of the Warrants, and any Interest Shares shall be excluded
from the definition of, and shall not constitute, Additional Stock
under the March Agreement and the March Warrants, and waiving any
rights that would arise in the event that any of the foregoing
securities constituted Additional Stock under the March Agreement
and/or the March Warrants (the “Waiver”).

 

 

 

 

 

WHEREAS,
Section 9(g) of the Agreement provides that any term of the
Agreement may be amended, waived or modified with the written
consent of the Company and the Purchasers holding a majority of the
aggregate principal amount of the Notes then outstanding, provided
that such amendment does not impose any additional liability or
financial obligations on the Purchasers.

 

WHEREAS, the Notes
and Warrants provide that any term of a Note or Warrant may be
amended, waived or modified with the written consent of the Company
and each holder of such Note and/or Warrant (the
“Holders”).

 

WHEREAS, the
Company, the Purchasers and each of the Holders each desire to
amend the Agreement, and hereby agree that it is in the best
interest of the Company to amend the Agreement, the Notes and the
Warrants, each as set forth herein.

 

NOW,
THEREFORE, in consideration of the mutual covenants and conditions
contained herein, the parties hereby agree as follows:

 

1.           Purchase
of Additional Notes and Warrants.

 

a.           Subject
to the terms and conditions of this Amendment, the parties
identified as New Purchasers on the signature page attached hereto
(the “New
Purchasers”), agree to purchase and the Company agrees
to sell and issue Notes with an aggregated principal amount of at
least $125,000. The purchase price of each Note shall be equal to
100% of the principal amount of such Note.

 

b.           Subject
to the terms and conditions of this Amendment and in connection
with the purchase of the Notes set forth in Section 1(a), the Company shall
sell and issue to each New Purchaser, and each New Purchaser agrees
to purchase, a Warrant to purchase that number of shares of the
Company’s Common Stock equal to 50% of the total principal
amount of Notes purchased by such New Purchaser, divided by $10.00,
rounded down to the nearest whole number, with an exercise price
equal to the Warrant Exercise Price (as defined in the Warrant).
The Company and the New Purchasers as a result of arm’s
length bargaining, agree that: (i) none of the New Purchasers nor
any of their affiliates have rendered or have agreed to render any
services to the Company in connection with this Agreement or the
issuance of the Note or any Warrant to such New Purchaser; and (ii)
the Warrant is not being issued to any New Purchaser as
compensation.

 

c.           Prior
to the sale and issuance of the Notes and Warrants pursuant to this
Section 1, the
Company shall have received the Waiver.

 

2.           Amendment
of Recital of the Agreement. The Recital of the Agreement is
hereby amended, restated and replaced in its entirety with the
following:

 

 

2

 

 

 

“The Company
desires to issue and sell and the Purchasers, severally and not
jointly, desire to purchase (i) secured convertible promissory
notes in substantially the form attached hereto as Exhibit B (the
“First
Form of Note”), the form attached hereto as
Exhibit E (the
“Second
Form of Note”) and/or the form attached hereto as
Exhibit F (the
“Third
Form of Note,” each First Form of Note, Second Form of
Note and Third Form of Note, a “Note” and
collectively, the “Notes”) and
(ii) warrants to purchase shares of the Company’s common
stock in substantially the form attached hereto as Exhibit C (the
“First
Form of Warrant”) and/or the form attached to this
Agreement as Exhibit
G (the “Second Form of
Warrant,” each First Form of Warrant and Second Form
of Warrant, a “Warrant” and
collectively, the “Warrants”).
The Notes will rank senior to all outstanding and future
indebtedness of the Company and will be secured by a first priority
perfected security interest in all of the existing and future
assets of the Company (other than the assets relating to IPSA (as
defined in the Security Agreement) and its direct and indirect
Subsidiaries as evidenced by a security agreement in the form
attached hereto as Exhibit
D (the “Security
Agreement”). The Notes, the shares of common stock
issued upon conversion thereof (the “Note Shares”),
the Warrants and the shares of common stock issuable upon
conversion thereof (the “Warrant
Shares” and, together with the Note Shares, the
“Underlying
Shares”) are collectively referred to herein as the
“Securities.”

 

3.           Amendment
of Section 3. Section 3 of the Agreement is hereby amended
to insert Sections 3(z) through 3(hh)as follows:

 

 

“(z)           Capitalization.
The capitalization of the Company as of the date hereof is as set
forth on Schedule 3(z). All of the outstanding shares of capital
stock of the Company are duly authorized, validly issued, fully
paid and non-assessable, have been issued in compliance in all
material respects with all applicable federal and state securities
laws, and none of such outstanding shares was issued in violation
of any preemptive rights or similar rights to subscribe for or
purchase any capital stock of the Company. Except as set forth in
the SEC Reports: (i) no shares of the Company’s outstanding
capital stock are subject to preemptive rights or any other similar
rights; (ii) there are no outstanding options, warrants, scrip,
rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities or rights convertible into,
or exercisable or exchangeable for, any shares of capital stock of
the Company, or contracts, commitments, understandings or
arrangements by which the Company is or may become bound to issue
additional shares of capital stock of the Company or options,
warrants, scrip, rights to subscribe to, calls or commitments of
any character whatsoever relating to, or securities or rights
convertible into, or exercisable or exchangeable for, any shares of
capital stock of the Company, that are not included as exhibits to
the SEC Reports; (iii) there are no material outstanding debt
securities, notes, credit agreements, credit facilities or other
agreements, documents or instruments evidencing indebtedness of the
Company or by which the Company is bound; (iv) except as set forth
in the SEC Reports, there are no agreements or arrangements under
which the Company is obligated to register the sale of any of their
securities under the Securities Act; (v) there are no outstanding
securities or instruments of the Company that contain any
redemption or similar provisions, and there are no contracts,
commitments, understandings or arrangements by which the Company is
or may become bound to redeem a security of the Company; (vi) the
Company does not have any stock appreciation rights or
“phantom stock” plans or agreements or any similar plan
or agreement; and (vii) the Company has no liabilities or
obligations other than those disclosed in the SEC Reports or those
which, individually or in the aggregate, will not have or could not
reasonably be expected to have a Material Adverse Effect. There are
no securities or instruments containing anti-dilution or similar
provisions that will be triggered by the issuance of the
Securities.

 

 

3

 

 

 

 

(aa)           No
Integrated Offering. Assuming the accuracy of the
Purchasers’ representations and warranties set forth in
Section 4, none of the Company, its Subsidiaries nor, to the
Company’s Knowledge, any of its Affiliates or any Person
acting on its behalf has, directly or indirectly, at any time
within the past six months, made any offers or sales of any Company
security or solicited any offers to buy any security under
circumstances that would (i) eliminate the availability of the
exemption from registration under Regulation D under the Securities
Act being relied upon in connection with the offer and sale by the
Company of the Securities or (ii) cause the offering of the
Securities pursuant to the Transaction Documents to be integrated
with prior offerings by the Company for purposes of any applicable
law, regulation or stockholder approval provisions, including,
without limitation, under the rules and regulations of any Trading
Market on which any of the securities of the Company are listed or
designated.

 

(bb)           Listing
and Maintenance Requirements. The Company has not, in the 12
months preceding the date hereof, received written notice from any
Trading Market on which the Common Stock is listed or quoted to the
effect that the Company is not in compliance with the listing or
maintenance requirements of such Trading Market. The Company is,
and has no reason to believe that it will not in the foreseeable
future continue to be, in compliance in all material respects with
the listing and maintenance requirements for continued trading of
the Common Stock on the Principal Trading Market.

 

(cc)           OFAC.
Neither the Company nor any Subsidiary nor, to the Company’s
Knowledge, any director, officer, agent, employee, Affiliate or
Person acting on behalf of the Company or any Subsidiary is
currently subject to any U.S. sanctions administered by the Office
of Foreign Assets Control of the U.S. Treasury Department
(“OFAC”); and
the Company will not knowingly directly or indirectly use the
proceeds of the sale of the Securities, or lend, contribute or
otherwise make available such proceeds to any Subsidiary, joint
venture partner or other Person or entity, towards any sales or
operations in Iran, Syria, Sudan, Myanmar or any other country
sanctioned by OFAC or for the purpose of financing the activities
of any Person currently subject to any U.S. sanctions administered
by OFAC.

 

(dd)           Money
Laundering Laws. The operations of each of the Company and
any Subsidiary are and have been conducted at all times in
compliance with the money laundering statutes of applicable
jurisdictions, the rules and regulations thereunder and any related
or similar rules, regulations or guidelines, issued, administered
or enforced by any applicable governmental agency (collectively,
the “Money Laundering
Laws”) and to the Company’s Knowledge, no
action, suit or proceeding by or before any court or governmental
agency, authority or body or any arbitrator involving the Company
and/or any Subsidiary with respect to the Money Laundering Laws is
pending or, to the Company’s Knowledge,
threatened.

 

(ee)           Transactions
With Affiliates and Employees. Except as set forth in the
SEC Reports and the grant of stock options or other equity awards
that are not individually or in the aggregate material in amount,
none of the officers or directors of the Company and, to the
Company’s Knowledge, none of the employees of the Company, is
presently a party to any transaction with the Company or to a
presently contemplated transaction (other than for services as
employees, officers and directors) that would be required to be
disclosed pursuant to Item 404 of Regulation S-K promulgated under
the Securities Act.

 

 

4

 

 

 

(ff)           Off
Balance Sheet Arrangements. There is no transaction,
arrangement, or other relationship between the Company (or any
Subsidiary) and an unconsolidated or other off balance sheet entity
that is required to be disclosed by the Company in its Exchange Act
filings and is not so disclosed and would have or reasonably be
expected to have a Material Adverse Effect.

 

(gg)        
ERISA. The
Company is in compliance in all material respects with all
presently applicable provisions of ERISA; no “reportable
event” (as defined in ERISA) has occurred with respect to any
“pension plan” (as defined in ERISA) for which the
Company would have any liability; the Company has not incurred and
does not expect to incur liability under (i) Title IV of ERISA with
respect to termination of, or withdrawal from, any “pension
plan”; or (ii) Sections 412 or 4971 of the Code; and each
“Pension Plan” for which the Company would have
liability that is intended to be qualified under Section 401(a) of
the Code is so qualified in all material respects and nothing has
occurred, whether by action or by failure to act, which would cause
the loss of such qualification.

 

(hh)        
Disclosure.
The Company confirms that neither it nor any of its officers or
directors nor any other Person acting on its or their behalf has
provided the Purchaser or its respective agents or counsel with any
information that it believes constitutes or could reasonably be
expected to constitute material, non-public information except
insofar as the existence, provisions and terms of the Transaction
Documents and the proposed transactions hereunder may constitute
such information, all of which will be disclosed by the Company as
contemplated by Section 7(g) hereof. The Company understands and
confirms that the Purchaser will rely on the foregoing
representations in effecting transactions in securities of the
Company. No event or circumstance has occurred or information
exists with respect to the Company or any of its Subsidiaries or
its or their business, properties, operations or financial
conditions, which, under applicable law, rule or regulation,
requires public disclosure or announcement by the Company but which
has not been so publicly announced or disclosed, except for the
announcement of this Agreement and related transactions and as may
be disclosed pursuant to Section 7(g).”

 

4.           Amendment
of Section 5(a). Section 5(a) of the Agreement is hereby
amended and restated in its entirety as follows:

 

“(a)           
Representations and
Warranties. The
representations and warranties of the Company contained in
Section 3 shall be true and correct on and as of the
applicable Closing with the same effect as though such
representations and warranties had been made on and as of the date
of the applicable Closing, except for those representations and
warranties which address matters only as of a particular date
(which will remain true and correct as of such date).

 

5.           Amendment
of Section 8. Section 8 of the Agreement is hereby amended
and restated in its entirety as follows:

 

 

5

 

 

 

“8.           
Registration
Rights.

 

(a)                 
At any time on or prior to June 30, 2017, the Company shall file a
Registration Statement covering the resale of the Warrants and the
Underlying Shares by the holders thereof and the securities not
otherwise eligible for resale in a single transaction pursuant to
Rule 144 without regard to the volume or manner-of-sale
restrictions pursuant to Rule 144 and without the requirement for
the Company to be in compliance with the current public information
requirement under Rule 144 issued pursuant to that certain Amended
and Restated Securities Purchase Agreement, dated March 10, 2016.
The Company shall use its commercially reasonable efforts to cause
the Registration Statement to be declared effective by the
Commission as promptly as possible after the filing thereof and
shall use commercially reasonable efforts to keep the Registration
Statement continuously effective under the Securities Act until the
earlier of (i) the date that all Registrable Securities covered by
such Registration Statement have been sold or may be sold without
volume or manner-of-sale restrictions pursuant to Rule 144 and
without the requirement for the Company to be in compliance with
the current public information requirement under Rule 144 or (ii)
the date that is five (5) years following the Closing Date (the
“Effectiveness
Period”). The Company shall notify the Purchasers in
writing promptly (and in any event within two Trading Days) after
receiving notification from the Commission that the Registration
Statement has been declared effective.

 

(b)                 
Notwithstanding anything in this Agreement to the contrary, the
Company may, by written notice to the Purchasers, suspend sales
under the Registration Statement after the Effective Date thereof
and/or require that the Purchasers immediately cease the sale of
shares of Common Stock pursuant thereto and/or defer the filing of
the Registration Statement if the Company is engaged in a material
merger, acquisition or sale or any other pending development that
the Company believes may be material, and the Board of Directors
determines in good faith, by appropriate resolutions, that, as a
result of such activity, (A) it would be materially detrimental to
the Company (other than as relating solely to the price of the
Common Stock) to maintain the Registration Statement at such time
or (B) it is in the best interests of the Company to suspend sales
under such registration at such time. Upon receipt of such notice,
each Purchaser agrees to immediately discontinue any sales of
Registrable Securities pursuant to the Registration Statement until
such Purchaser is advised in writing by the Company that the
current Prospectus or amended Prospectus, as applicable, may be
used. In no event, however, shall this right be exercised to
suspend sales beyond the period during which (in the good faith
determination of the Board of Directors) the failure to require
such suspension would be materially detrimental to the Company. The
Company’s rights under this Section 8(ii) may be exercised
for a period of no more than 20 Trading Days at a time with a
subsequent permitted trading window of at least 90 Trading Days,
and not more than two times in any twelve-month period. Immediately
after the end of any suspension period under this Section 8(ii),
the Company shall take all necessary actions (including filing any
required supplemental prospectus) to restore the effectiveness of
the Registration Statement and the ability of the Purchasers to
publicly resell their Registrable Securities pursuant to the
effective Registration Statement.

 

(c)                 
All expenses, other than underwriting discounts and commissions
relating to Registrable Securities and the fees and disbursements
of any counsel for the Purchasers, incurred in connection with
registrations, filings or qualifications pursuant to Section 8 for
each Purchaser, including (without limitation) all registration,
filing and qualification fees, printers’ and accounting fees,
fees and disbursements of counsel for the Company shall be borne by
the Company.

 

 

6

 

 

 

6.           Amendment
of Section 9(g). Section 9(g) of the Agreement is hereby amended
and restated in its entirety as follows:

 

“(g)           Amendments
and Waivers. Any term of this Agreement may be amended or
waived only with the written consent of the Company and the holders
of a majority in interest of the aggregate principal amount of the
then-outstanding Notes (the “Majority Note
Holders”), provided that such amendment does not
impose any additional liability or financial obligations on the
Purchasers, provided
further that Section 3 and Section 8 may not be amended
without the prior written consent of each holder of Notes who
together with its affiliates holds Notes with an aggregate
principal amount of at least $1,000,000. Any amendment or waiver
effected in accordance with this Section 9(g) shall be binding upon
the Purchasers and each transferee of the Securities, each future
holder of all such Securities, and the Company.”

 

7.           Amendment
of List of Exhibits to the Agreement. The List of Exhibits
of the Agreement is hereby amended, restated and replaced in its
entirety with the following:

 

“Exhibit A
-  Schedule of Purchasers

 

  Exhibit
B -   First Form of Note

 

  Exhibit
C -   First Form of Common Stock Purchase
Warrant

 

  Exhibit
D -   Form of Security Agreement

 

  Exhibit
E -   Second Form of Note

 

  Exhibit
F -   Third Form of Note

 

  Exhibit
G -  Second Form of Common Stock Purchase
Warrant”

 

8.           Addition
of Exhibit F to the Agreement. The Third Form of Secured
Convertible Promissory Note in the form attached hereto as
Exhibit A shall be
attached and added to the Agreement as Exhibit F.

 

9.           Addition
of Exhibit G to the Agreement. The Second Form of
Subordinated Convertible Promissory Note in the form attached
hereto as Exhibit B
shall be attached and added to the Agreement as Exhibit G.

 

10.        
Amendment to Notes.
By their signatures below, the undersigned parties hereby approve
Amendment No. 2 to Secured Convertible Promissory Note in the form
attached hereto as Exhibit
C.

 

11.        
Amendment to
Warrants. By their signatures below, the undersigned parties
hereby approve Amendment No. 1 to Common Stock Purchase Warrant in
the form attached hereto as Exhibit D.

 

 

7

 

 

 

12.           Securities
Laws Disclosure. The Company shall, by 9:30 a.m. (New York
City time) on the Trading Day following the date hereof, file a
Current Report on Form 8-K disclosing the material terms of the
transactions contemplated hereby. From and after the filing of such
8-K, the Company represents to the Purchaser that it shall have
publicly disclosed all material, non-public information delivered
to any of the Purchasers by the Company or any of its subsidiaries,
or any of their respective officers, directors, affiliates,
employees or agents in connection with the transactions
contemplated by this Amendment.

 

13.           Approval
of this Amendment. By their signatures below, the
undersigned parties hereby adopt this Amendment and acknowledges
and agrees to the matters set forth herein, including the
amendments to the Agreement, the Notes and the
Warrants.

 

14.           Joinder.
Upon execution of this Amendment, each Purchaser not currently a
party to the Agreement (each, an “Additional Purchaser”) shall
hereby become a party to the Agreement and shall thereafter be
deemed a Purchaser thereunder. Without limiting the foregoing, each
Additional Purchaser agrees to be bound by all of the obligations
as a Purchaser thereunder. The Company and the undersigned
Purchasers hereby consent to such joinder to the Agreement by each
Additional Purchaser and agree that no further action or consent by
the Company or the Purchasers shall be required.

 

15.           Further
Assurances. Each party hereto agrees to execute and deliver
all such other and additional instruments and documents and do all
such other acts and things as may be necessary to more fully
effectuate this Amendment.

 

16.           Governing
Law. This Amendment and all acts and transactions pursuant
hereto and the rights and obligations of the parties hereto shall
be governed, construed and interpreted in accordance with the laws
of the State of Delaware, without giving effect to principles of
conflicts of law.

 

17.           Continued
Validity. Except as otherwise expressly provided herein, the
Agreement shall remain in full force and effect.

 

18.           Independent
Counsel. Each of the Purchasers and the Company represents
that it has had the opportunity to consult with independent counsel
concerning entry into this Amendment, including, but not limited
to, any potential reporting requirements and trading restrictions
under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”),
arising from of in connection with the transactions contemplated by
this Amendment and the Agreement (including Sections 10, 13 and 16
of the Exchange Act).

 

19.           Counterparts;
Electronic Delivery. This Amendment may be executed in
counterparts, each of which shall be deemed an original and all of
which together shall constitute one instrument, and such
counterparts may be executed and delivered
electronically.

 

[Signature Page
Follows]

 

 

 

 

8

 

IN
WITNESS WHEREOF, the undersigned has executed this Amendment
effective as of the Effective Date.

 

 

	

 

	
ROOT9B
HOLDINGS, INC.

	

 

	

 

	

 

	

 

	

 

	
 

	
By:  

	
/s/ 

	

 

	

 

	

Name:

	
Dan
Wachtler

	

 

	

 

	Title:	

President &
Chief Operating Officer

	

 

 

 

 

 

 

Signature Page to
Amendment No. 3 to Securities Purchase
Agreement]

 

 

IN
WITNESS WHEREOF, the undersigned has executed this Amendment
effective as of the Effective Date.

 

 

	

 

	
PURCHASERS:

	

 

	

 

	

 

	

 

	

 

	
 

	
By:  

	
/s/ 

	

 

	

 

	Name:	
 

	

 

	

 

	Title:	

 

	

 

 

 
Signature Page to
Amendment No. 3 to Securities Purchase
Agreement]

 

 

Exhibit A

 

Third
Form of Note

 

 

Exhibit B

 

Second
Form of Common Stock Purchase Warrant

 

 

Exhibit C

 

Amendment No. 2 to
Secured Convertible Promissory Note

 

 

Exhibit D

 

Amendment No. 1 to
Common Stock Purchase Warrant

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