Document:

Exhibit 10.1          

PLACEMENT AGENCY AGREEMENT

 

March 2, 2012

 

CONFIDENTIAL

 

Sunrise Securities Corp.

600 Lexington Avenue, 23rd Floor

New York, NY 10022

 

Ladies and Gentlemen:

 

LiqTech International, Inc., a Nevada
corporation (the “Company”), proposes to issue and sell registered securities of the Company, consisting
of up to 8,333,333 shares of Common Stock (the “Shares” or the “Securities”).
“Common Stock” means the Company’s common stock, $0.001 par value per share.

 

Subject to the terms of this Placement
Agency Agreement (the “Agreement”), Sunrise Securities Corp. (“Sunrise” or
the “Placement Agent”) shall serve as the exclusive placement agent for the Company, on a “best
efforts” basis, in connection with the proposed offering of the Securities (the “Placement”). The
terms of such Placement shall be mutually agreed upon by the Company and the purchasers (each, a “Purchaser”
and collectively, the “Purchasers”) and nothing herein constitutes that the Placement Agent would have
the power or authority to bind the Company or any Purchaser or creates an obligation for the Company to issue any Securities or
complete the Placement. This Agreement and the documents executed and delivered by the Company to the Purchasers in connection
with the Placement shall be collectively referred to herein as the “Transaction Documents.”

 

The Company expressly acknowledges and
agrees that the Placement Agent’s obligations hereunder are on a best efforts basis only and that the execution of this Agreement
does not constitute a commitment by the Placement Agent to purchase any of the Securities and does not ensure the successful placement
of the Securities or any portion thereof, or the success of the Placement Agent with respect to securing any other financing on
behalf of the Company. The Placement Agent shall have no authority to bind the Company with respect to any prospective offer to
purchase Securities and the Company shall have the sole right to accept offers to purchase Securities and may reject any such offer,
in whole or in part.

 

The Company acknowledges that Sunrise
may rely on other broker-dealers who are members of the Financial Investment Regulatory Authority to participate in placing a portion
of the Placement provided that such other broker-dealers (including any co-placement) are acceptable to the Company and Sunrise
and that the Company and Sunrise consent to such participation in advance and in writing.

 

Section 1. Compensation and Other
Fees. As compensation for the services provided by the Placement Agent hereunder, the Company agrees to pay to the Placement
Agent:

 

(i) 7.00% times the aggregate gross proceeds
raised in the Placement; and

 

(ii) warrants, exercisable for a period
of five years from the effective date of the registration statement, which shall entitle the Placement Agent to purchase a number
of shares of Common Stock equal to an aggregate of 5% of the shares of Common Stock sold by the Placement Agent in the Placement.
The warrants will have an exercise price equal to 125% of the offering price of the shares sold in the Placement.

 

The warrants will be subject to a lock-up
restriction for 180 days pursuant to FINRA Rule 5110(g). The warrants shall be sold to the Placement Agent for $100.

 

Section 2. Registration Statement
and Prospectus. The Company represents and warrants to, and agrees with, the Placement Agent that:

 

    	 

    	 

    

 

(a) The Company has prepared and filed
with the Securities and Exchange Commission (the “Commission”) a registration statement, on Form S-1
(Registration File No. 333-178837) (the "Registration Statement"), under the Securities Act of 1933, as
amended (the “Securities Act”), which became effective on February 13, 2012, for the registration under
the Securities Act of the Shares. “Preliminary Prospectus” refers to any preliminary prospectus related
to the Registration Statement, including any prospectus that is included in the Registration Statement immediately prior to the
effectiveness of the Registration Statement. The form of the final prospectus dated the effective date of the Registration Statement
(or, if applicable, the form of final prospectus containing information permitted to be omitted at the time of effectiveness by
Rule 430A of the Securities Act filed with the Commission pursuant to Rule 424 of the Securities Act), is hereinafter called the
“Prospectus.” For purposes of this Agreement, “Time of Sale”,
as used in the Act, means 9:00 a.m., New York City time, on the date of this Agreement. Prior to the Time of Sale, the Company
prepared a Preliminary Prospectus, dated February 13, 2012, and a supplement to such Preliminary Prospectus, dated February 29,
2012, for distribution by the Placement Agent (collectively, the “Statutory Prospectus”).

 

Any reference in this Agreement to
the Registration Statement shall be deemed to refer to and include the appendixes to the Registration Statement and the documents
incorporated by reference therein (the “Incorporated Documents”) including those which were filed under
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), on or before the date of this Agreement.
Any reference in this Agreement to the terms “amend,” “amendment” or “supplement” with respect
to the Registration Statement shall be deemed to refer to and include the filing of any document under the Exchange Act after the
date of this Agreement deemed to be incorporated therein by reference. All references in this Agreement to financial statements
and schedules and other information which is “contained,” “included,” “described,” “referenced,”
“set forth” or “stated” in the Registration Statement (and all other references of like import) shall be
deemed to mean and include all such financial statements and schedules and other information which is or is deemed to be incorporated
by reference in the Registration Statement.

 

No stop order suspending the effectiveness
of the Registration Statement has been issued, and no proceeding for any such purpose is pending or has been initiated or, to the
Company’s knowledge, is threatened by the Commission. For purposes of this Agreement, the term “knowledge”
as used in this Agreement with respect to the Company shall mean actual knowledge of the Company’s officers and directors
after due and reasonable inquiry.

 

(b) The Registration Statement (and
any further documents to be filed with the Commission in connection with the Placement) contains or will contain, as applicable,
all exhibits and schedules as required by the Securities Act and the rules and regulations of the Commission promulgated thereunder
(the “Rules and Regulations”). The Registration Statement and any post-effective amendment thereto, at
the time it became effective, complied in all material respects with the Securities Act and the applicable Rules and Regulations
and did not and, as amended or supplemented, if applicable, will not, contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein not misleading. As of its date,
the Closing Date (as defined in Section 4), the Prospectus (together with any supplement thereto) did not and will not include
any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading. At the Time of Sale, the Statutory Prospectus did not
include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein,
in light of the circumstances under which they were made, not misleading. No post-effective amendment to the Registration Statement
reflecting any facts or events arising after the date thereof which represent, individually or in the aggregate, a fundamental
change in the information set forth therein is required to be filed with the Commission. There are no documents required to be
filed with the Commission in connection with the transaction contemplated hereby that (x) have not been filed as required pursuant
to the Securities Act or (y) will not be filed within the requisite time period. There are no contracts or other documents required
to be described in the Registration Statement, or to be filed as exhibits or schedules to the Registration Statement, which have
not been described or filed as required.

 

(c) The Company had a reasonable basis
for, and made in good faith, each “forward-looking statement” (within the meaning of Section 27A of the Securities
Act or Section 21E of the Exchange Act) contained in the Registration Statement.

 

(d) All statistical or market-related
data included in the Statutory Prospectus and the Prospectus are based on or derived from sources that the Company reasonably believes
to be reliable and accurate, and, to the extent necessary, the Company has obtained the written consent to the use of such data
from such sources.

 

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(e) The Company has delivered, or will
as promptly as practicable deliver, to the Placement Agent complete conformed copies of the Registration Statement and of each
consent and certificate of experts, as applicable, filed as a part thereof, and conformed copies of the Registration Statement
(without exhibits), any Preliminary Prospectus and the Prospectus, as amended or supplemented, in such quantities and at such places
as the Placement Agent reasonably requests. Neither the Company nor any of its directors and officers has distributed and none
of them will distribute, prior to the Closing Date, any offering material in connection with the offering and sale of the Securities
other than the Registration Statement, the Preliminary Prospectus or the Prospectus and any other materials permitted by the Securities
Act.

 

Section 3. Representations Warranties
and Certain Agreements. The Company represents and warrants to, and agrees with, the Placement Agent that:

 

(a) Organization and Qualification.
All of the direct and indirect “significant subsidiaries” (as defined in Rule 1-02(w) of Regulation S-X) (individually,
a “Subsidiary”) of the Company are set forth in Exhibit 21.1 of the Registration Statement. Except as
set forth in the Preliminary Prospectus and the Prospectus, the Company owns, directly or indirectly, all of the capital stock
or other equity interests of each Subsidiary free and clear of any “Liens” (which for purposes of this
Agreement shall mean a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction,
other than restrictions imposed by applicable securities laws). All the issued and outstanding shares of capital stock of each
Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or
purchase securities. The Company and each of the Subsidiaries is an entity validly existing and in good standing under the laws
of the jurisdiction of its incorporation or organization (as applicable), with the requisite power and authority to own and use
its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation
or default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational
or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as
a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it
makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would
not have or reasonably be expected to result in (i) a material adverse effect on the legality, validity or enforceability of any
Transaction Document, (ii) a material adverse effect on the results of operations, assets, business or condition (financial or
otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability
to perform in any material respect its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material
Adverse Effect”) and, to the Company’s knowledge, no “Proceeding” (which for purposes
of this Agreement shall mean any action, claim, suit, investigation or proceeding (including, without limitation, an investigation
or partial proceeding, such as a deposition), whether commenced or threatened) has been instituted in any such jurisdiction revoking,
limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

(b) Authorization; Enforcement.
The Company has the requisite corporate power and authority to enter into each of the Transaction Documents, to consummate the
transactions contemplated hereby and thereby, and otherwise to carry out its obligations hereunder and thereunder. The execution
and delivery of each of the Transaction Documents by the Company and the consummation by it of the transactions contemplated thereby
have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company,
its board of directors or its shareholders in connection therewith other than in connection with the Required Approvals (as defined
in Section 3(d) below). Each Transaction Document has been (or upon delivery will have been) duly executed by the Company and,
when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company
enforceable against the Company in accordance with its terms except (i) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by
laws relating to the availability of specific performance, injunctive relief or other equitable remedies, or (iii) as enforceability
of any indemnification or contribution provision may be limited under the foreign, federal and state securities laws.

 

(c) No Conflicts. The execution,
delivery and performance of the Transaction Documents by the Company, the issuance and sale of the Securities and the consummation
by the Company of the other transactions contemplated hereby and thereby do not and will not (i) conflict with or violate any provision
of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter
documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a
default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give
to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of,
any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding
to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or
affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order,
judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is
subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary
is bound or affected; except in the case of each of clauses (ii) and (iii), such as would not have or reasonably be expected to
result in a Material Adverse Effect.

 

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(d) Filings, Consents and Approvals.
The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or
registration with, any court or other federal, state, local or other governmental authority or other “Person”
(defined as an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited
liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind)) in connection
with the execution, delivery and performance by the Company of the Transaction Documents, other than such filings as are required
to be made under applicable federal and state securities laws, and rules and regulations promulgated by FINRA (collectively, the
“Required Approvals”), all of which will be made in a timely manner to the extent such filings are required
or desirable to be made by the Company, with the exception of filings with FINRA, which the parties have agreed will be made by
Sunrise.

 

(e) Issuance of the Securities;
Registration. The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction
Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. The
Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to the
Transaction Documents. The issuance by the Company of the Securities has been registered under the Securities Act and all of such
shares are freely transferable and tradable by the Purchasers without restriction (other than any restrictions arising solely from
an act or omission of a Purchaser). The Securities are being issued pursuant to the Registration Statement and the issuance of
the Securities has been registered by the Company under the Securities Act. The Registration Statement was declared effective on
February 13, 2012 and is available for the issuance of the Securities thereunder and the Company has not received any notice that
the Commission has issued or intends to issue a stop-order with respect to the Registration Statement or that the Commission otherwise
has suspended or withdrawn the effectiveness of the Registration Statement, either temporarily or permanently, or intends or has
threatened in writing to do so. The Purchasers will have good and marketable title to the Shares upon receipt of such Shares, and
such securities will be freely tradable on the “Trading Market” (which, for purposes of this Agreement
shall mean the Over-the-Counter Bulletin Board).

 

(f) Capitalization. The capitalization
of the Company is as set forth in the “Actual” column in the table contained in the heading “Capitalization”
in the Statutory Prospectus and the Prospectus. No Person has any right of first refusal, preemptive right, right of participation,
or any similar right to participate in the transactions contemplated by the Transaction Documents. Except as disclosed in the Statutory
Prospectus and the Prospectus or pursuant to equity compensation plans or agreements filed as exhibits to the Registration Statement,
there are no outstanding options, warrants, script rights to subscribe to, calls or commitments of any character whatsoever relating
to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to
subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company
or any Subsidiary is or may become bound to issue additional shares of Common Stock. The issuance and sale of the Securities will
not obligate the Company to issue shares of Common Stock or other securities to any Person (other than the Purchasers and Sunrise)
and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price
under such securities. All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully
paid and nonassessable, have been issued in compliance with all 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 securities. No further approval
or authorization of any shareholder, the Board of Directors of the Company or others is required for the issuance and sale of the
Securities. There are no shareholders agreements, voting agreements or other similar agreements with respect to the Company’s
capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s
shareholders.

 

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(g) SEC Reports; Financial Statements.
From and after the date on which the Company initially filed its “Form 10 information” (as defined in Rule 144 of the
Securities Act), the Company has complied in all material respects with requirements to file reports, schedules, forms, statements
and other documents under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof (the foregoing
materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein
as the “SEC Reports”). From and after the date on which the Company initially filed its “Form 10
information”, the Company has filed on a timely basis, or has received a valid extension of such time of filing and has filed
any such reports prior to the expiration of any such extension, all reports, schedules, forms, statements and other documents required
to be filed by it under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof. As of their
respective dates, the SEC Reports complied in all material respects with the requirements of the Exchange Act and the rules and
regulations of the Commission promulgated thereunder, and none of the SEC Reports, when filed, contained any untrue statement of
a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading. The financial statements of the Company
included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations
of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance
with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”),
except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements
may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company
and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods
then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

(h) Material Changes; Undisclosed
Events, Liabilities or Developments. Since the date of the latest audited financial statements included in the
Statutory Prospectus and the Prospectus, except as specifically disclosed in the Statutory Prospectus and the Prospectus (including
in any interim financial information included in the Statutory Prospectus and the Prospectus), (i) there has been no event, occurrence
or development that has had or that would reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not
incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary
course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial
statements pursuant to GAAP or required to be disclosed in filings made with the Commission, (iii) the Company has not altered
its method of accounting, and (iv) the Company has not declared or made any dividend or distribution of cash or other property
to its shareholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock. Except
for the issuance of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with
respect to the Company or its Subsidiaries or their respective business, properties, operations or financial condition, that would
be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not
been publicly disclosed prior to the date that this representation is made.

 

(i) Litigation. Except as disclosed
in the Statutory Prospectus and the Prospectus, there is no action, suit, inquiry, notice of violation, Proceeding or investigation
pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective
properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county,
local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality,
validity or enforceability of any of the Transaction Documents or the Securities, or (ii) would reasonably be expected to result
in a Material Adverse Effect. Except as disclosed to the Placement Agent in writing, neither the Company nor any Subsidiary, nor,
to the Company’s knowledge, any director or officer thereof, is or has been the subject of any Action involving a claim of
violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and
to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company
or, to the Company’s knowledge, any director or officer of the Company. The Commission has not issued any stop order or other
order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act
or the Securities Act.

 

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(j) Employment and Labor Relations.
No executive officer, to the knowledge of the Company, is, or is now expected to be, in violation of any material term of any employment
contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract
or agreement or any restrictive covenant, and, to the Company’s knowledge, the continued employment of each such executive
officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters.
The Company and its Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws and regulations relating
to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be
in compliance would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. No material
labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company which
would reasonably be expected to result in a Material Adverse Effect.

 

(k) Compliance. Neither the
Company nor any Subsidiary (i) is in default under or in violation of (and no event has occurred that has not been waived that,
with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or
any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit
agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether
or not such default or violation has been waived), (ii) is in violation of any order of any court, arbitrator or governmental body,
or (iii) is or has been in violation of, or has received any notice of violation relating to, any statute, rule or regulation of
any governmental authority, in each case which would reasonably be expected to result in a Material Adverse Effect.

 

(l) Regulatory Permits. The
Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local
or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports, except where
the failure to possess such permits would not have or reasonably be expected to result in a Material Adverse Effect (“Material
Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation
or modification of any Material Permit, except where such potential revocation or modification would not reasonably be expected
to result in a Material Adverse Effect.

 

(m) Title to Assets. The Company
and the Subsidiaries have good and marketable title in fee simple to all real property owned by them that is material to the business
of the Company and the Subsidiaries and good and marketable title in all personal property owned by them that is material to the
business of the Company and the Subsidiaries, in each case free and clear of all Liens, except as set forth in the Statutory Prospectus
and the Prosepctus and except for Liens created under license or collaboration agreements relating to the Company’s products
or Intellectual Property Rights and Liens as do not materially affect the value of such property and do not materially interfere
with the use made and proposed to be made of such property by the Company and the Subsidiaries and Liens for the payment of federal,
state or other taxes, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held
under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases of which the Company
and the Subsidiaries are in compliance with the provisions thereof, except where such non-compliance would not have a Material
Adverse Effect.

 

(n) Patents and Trademarks.
The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark applications,
service marks, trade names, trade secrets, inventions, copyrights, licenses and other similar intellectual property rights necessary
or material for use in connection with their respective businesses as described in the Statutory Prospectus and the Prospectus
(collectively, the “Intellectual Property Rights”). To the knowledge of the Company, all such Intellectual
Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights
of the Company which would reasonably be expected to have a Material Adverse Effect. To the knowledge of the Company, none of the
Intellectual Property Rights used by the Company or any Subsidiary violates or infringes upon the rights of any Person. The Company
and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their
intellectual properties, except where failure to do so would not, individually or in the aggregate, reasonably be expected to have
a Material Adverse Effect.

 

(o) Insurance. The Company and
the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts
as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including, but not limited
to, directors and officers insurance coverage in an amount prudent and customary in the businesses in which the Company and the
Subsidiaries are engaged. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its
existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary
to continue its business at a cost that would not have a Material Adverse Effect.

 

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(p) Transactions With Officers.
Except as set forth in the Statutory Prospectus and the Prospectus, none of the officers or directors of the Company is presently
a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including
any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or
personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge
of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director,
trustee or partner, in each case in excess of $120,000, other than for (i) payment of salary or consulting fees for services rendered,
(ii) reimbursement for expenses incurred on behalf of the Company and (iii) other employee benefits, including but not limited
to stock option agreements under any stock option or other equity incentive plan of the Company.

 

(q) Internal Accounting Controls;
Sarbanes-Oxley; Disclosure Controls. The Company maintains a system of internal accounting controls sufficient to provide reasonable
assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability,
(iii) access to assets is permitted only in accordance with management’s general or specific authorization, and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken
with respect to any differences.

 

The Company is in material compliance
with all provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it as of the date of this Agreement. The Company
maintains disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the Exchange Act) that are effective
in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Exchange
Act is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the Commission,
including, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company
in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management,
including its principal executive officer or officers and its principal financial officer or officers, as appropriate, to allow
timely decisions regarding required disclosure.

 

(r) Certain Fees. Except as
otherwise provided in this Agreement or as set forth in Statutory Prospectus and the Prospectus, no brokerage or finder’s
fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent,
investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents, and there are
no other arrangements, agreements, understandings, payments or issuances with respect to the Company that may affect the Placement
Agent’s compensation, as determined by FINRA. The Company has not made any direct or indirect payments (in cash, securities
or otherwise) to (i) any person, as a finder’s fee, investing fee or otherwise, in consideration of such person raising capital
for the Company or introducing to the Company persons who provided capital to the Company, (ii) any FINRA member, or (iii) any
person or entity that has any direct or indirect affiliation or association with any FINRA member. The Purchasers shall have no
obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated
in this Section 3(r) that may be due in connection with the transactions contemplated by the Transaction Documents. Other than
Sunrise, no person has the right to act as a placement agent, underwriter or as a financial advisor in connection with the sale
of the Securities contemplated hereby.

 

(s) Investment Company. The
Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will not be or be an Affiliate
of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

 

(t) Registration Rights. No
Person has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company.

 

(u) Tax Status. Except for matters
that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, the Company
and each Subsidiary has filed all necessary federal, state and foreign income and franchise tax returns and has paid or accrued
all taxes shown as due thereon, and the Company has no knowledge of a tax deficiency which has been asserted or threatened against
the Company or any Subsidiary.

 

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(v) Foreign Corrupt Practices; OFAC.
Neither the Company, nor to the knowledge of the Company, any agent or other person acting on behalf of the Company, has (i) directly
or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or
domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any
foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by
the Company (or made by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated
in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

 

Neither the Company nor any of its
Subsidiaries nor, to the Company’s knowledge, any director, officer, employee, representative, agent or affiliate of the
Company or any of its Subsidiaries 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 directly or indirectly use the proceeds
of the Placement contemplated hereby, or lend, contribute or otherwise make available such proceeds to any person or entity, for
the purpose of financing the activities of any person currently subject to any U.S. sanctions administered by OFAC.

 

(w) Accountants. The Company’s
accountants are Gregory & Associates, LLC, independent registered public accountants. To the knowledge of the Company, such
accountants are a registered public accounting firm as required by the Securities Act.

 

(x) Regulation M Compliance.
The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action designed
to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or
resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any of the
Securities or (iii) paid or agreed to pay to any person any compensation for soliciting another to purchase any other securities
of the Company other than, in the case of clauses (ii) and (iii), services under this Agreement.

 

(y) FINRA Affiliations. There
are no affiliations with any FINRA member firm among the Company’s officers, directors or, to the knowledge of the Company,
any five percent (5%) or greater shareholder of the Company. The Company will advise Sunrise and its counsel if it becomes aware
that any officer, director or shareholder of the Company or its subsidiaries is or becomes an affiliate or associated person of
a FINRA member participating in the Placement.

 

(z) Business Relationships.
No supplier, customer, distributor or sales agent of the Company has notified the Company that it intends to discontinue or decrease
the rate of business done with the Company, except where such decrease is not reasonably likely to result in a Material Adverse
Effect or has been set forth in the SEC Reports.

 

(aa) Other Filings with the Commission.
The Company shall have prepared and filed with the Commission a Current Report on Form 8-K with respect to the Placement, including
as an exhibit thereto this Agreement, within the timeframe required for the filing of such form by the Commission.

 

Section 4. Closing and Settlement.
Subject to the terms and conditions hereof, payment of the purchase price for, and delivery of, the Securities shall be made
at one or more closings (each a “Closing” and the date on which each Closing occurs, a “Closing
Date”) at the offices of Sunrise Securities Corp. (or at such other place as shall be agreed upon by Sunrise and
the Company), the first such Closing to take place at 10:00 a.m., New York City time, on March 7, 2012 (unless another time shall
be agreed to by Sunrise and the Company). On each Closing, (i) the Company will deliver, or cause to
be delivered, to the Placement Agent by authorizing the release of the Shares to the Purchasers via DWAC delivery prior to the
release of payment for such Shares, and (ii) each Purchaser will deliver, or cause to be delivered, to the Company, the aggregate
purchase price for the Shares no later than one business day after receipt of the Purchaser’s Shares.

 

    	8

    	 

    

 

Section 5. Restriction on Issuances.
The Company hereby agrees that, without the prior written consent of the Placement Agent, it will not, during the period ending
180 days after the date hereof (“Lock-Up Period”), (i) offer, pledge, issue, sell, contract to sell,
purchase, contract to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or
any securities convertible into or exercisable or exchangeable for Common Stock; or (ii) enter into any swap or other arrangement
that transfers to another, in whole or in part, any of the economic consequences of ownership of the Common Stock, whether any
such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or such other securities, in
cash or otherwise; or (iii) file any registration statement with the Commission relating to the offering of any shares of Common
Stock or any securities convertible into or exercisable or exchangeable for Common Stock. The restrictions contained in the preceding
sentence shall not apply to (1) the Securities to be sold hereunder, (2) the issuance of Common Stock upon the exercise of options
or warrants disclosed as outstanding (or to be outstanding in connection with the Placement) in the Preliminary Prospectus and
the Prospectus, (3) the issuance of Common Stock, stock options, stock appreciation rights, restricted stock units, or other forms
of equity compensation as bona fide compensation to the Company’s officers, directors, employees, consultants or agents under
the Company’s equity incentive plans or employee stock purchase plan, under any agreements that the Company may have with
such persons, or as may be determined by the Compensation Committee of the Board of Directors, (4) the filing of a registration
statement or amendment to a registration statement on Form S-8, or (5) the issuance of shares of Common Stock in connection
with any strategic investment or alliance, joint venture or corporate partnership arrangement that may be entered into by the Company
that is valued at $10 million or more. Notwithstanding the foregoing, if (x) the Company issues an earnings release or material
news, or a material event relating to the Company occurs, during the last 17 days of the Lock-Up Period, or (y) prior to the expiration
of the Lock-Up Period, the Company announces that it will release earnings results during the 16-day period beginning on the last
day of the Lock-Up Period, the restrictions imposed by this clause shall continue to apply until the expiration of the 18-day period
beginning on the issuance of the earnings release or the occurrence of the material news or material event, unless the Placement
Agent waives such extension in writing. The Company’s officers, directors or, to the knowledge of the Company, any five percent
(5%) or greater shareholder of the Company shall each sign a Lock-Up Agreement in the form of Addendum A.

 

Section 6. Indemnification.
The Company agrees to the indemnification and other agreements set forth in the indemnification provisions attached hereto
as Addendum B (“Indemnification Provisions”), the provisions of which are incorporated
herein by reference and shall survive the termination or expiration of this Agreement.

 

Section 7. Engagement Term.
Unless terminated pursuant to Section 14, the Placement Agent’s engagement hereunder will be for the period of ten (10)
days or, if longer, until the occurrence of a closing of a sale of the Securities under one or more subscription agreements entered
into by the Company and one or more Purchasers during such ten (10)-day term. Notwithstanding anything to the contrary contained
herein, the provisions concerning confidentiality, indemnification, contribution and the Company’s obligations to reimburse
expenses contained herein and the Company’s obligations contained in the Indemnification Provisions will survive any expiration
or termination of this Agreement.

 

Section 8. Placement Agent
Information. The Company agrees that any information or advice rendered by the Placement Agent in connection with this engagement
is for the confidential use of the Company only in their evaluation of the Placement and, except as otherwise required by law,
the Company will not disclose or otherwise refer to the advice or information in any manner without the Placement Agent’s
prior written consent.

 

Section 9. No Fiduciary Relationship.
The Company acknowledges and agrees that: (a) Sunrise has been retained solely to act as placement agent in connection with
the sale of the Securities and that no fiduciary, advisory or agency relationship between the Company and Sunrise has been created
in respect of any of the transactions contemplated by this Agreement, irrespective of whether Sunrise has advised or is advising
the Company on other matters; (b) the price and other terms of the Securities set forth in this Agreement were established by Sunrise
and the Purchasers following discussions and arms-length negotiations and the Company is capable of evaluating and understanding
and understands and accepts the terms, risks and conditions of the transactions contemplated by this Agreement; (c) it has been
advised that Sunrise and its affiliates are engaged in a broad range of transactions that may involve interests that differ from
those of the Company and that Sunrise has no obligation to disclose such interest and transactions to the Company by virtue of
any fiduciary, advisory or agency relationship; (d) it has been advised that Sunrise is acting, in respect of the transactions
contemplated by this Agreement, solely for the benefit of Sunrise, and not on behalf of the Company.

 

Section 10. No Limitations. Nothing
in this Agreement shall be construed to limit the ability of Sunrise or its affiliates to (a) trade in the Company’s or any
other company’s securities or publish research on the Company or any other company, subject to applicable law, or (b) pursue
or engage in investment banking, financial advisory or other business relationships with entities that may be engaged in or contemplate
engaging in, or acquiring or disposing of, businesses that are similar to or competitive with the business of the Company.

 

    	9

    	 

    

 

Section 11. Persons Entitled to Benefit
of Agreement. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors
and assigns and, solely in respect of Section 6 to this Agreement, the Indemnified Persons (as defined in Addendum B)
pursuant to Section 6. In addition, the investors who purchase Securities pursuant to the subscription agreements shall be entitled
to rely on the representations, warranties, covenants and agreements of the Company contained in this Agreement and shall be third
party beneficiaries thereof. Except as indicated above, nothing in this Agreement is intended or shall be construed to give to
any other person, firm or corporation any legal or equitable remedy or claim under or in respect of this Agreement or any provision
herein contained.

 

Section 12. Conditions to Closing.
The obligations of the Placement Agent and the Purchasers, and the closing of the sale of the Securities contemplated hereby
are subject to the following conditions:

 

(a) Representations and Warranties.
The representations and warranties of the Company contained herein shall be true and correct in all material respects as of the
date when made and as of the Closing Date, as though made on and as of the Closing Date, except for representations and warranties
that speak as of a specific date which shall be true and correct in all material respects as of such date.

 

(b) Performance. The Company
shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by
the Transaction Documents to be performed, satisfied or complied with by it at or prior to the closing of the Placement.

 

(c) No FINRA Objection. FINRA
shall have raised no objection to the fairness and reasonableness of the placement agency terms and arrangements.

 

(d) Contents of Statutory Prospectus
and Prospectus. The Placement Agent shall not have discovered and disclosed to the Company on or prior to the Closing Date
that the Statutory Prospectus and the Prospectus or any amendment or supplement thereto contains an untrue statement of a fact
which, in the opinion of counsel for the Placement Agent, is material or omits to state any fact which, in the opinion of such
counsel, is material and is required to be stated therein or is necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

 

(e) Authorizations. All corporate
proceedings and other legal matters incident to the authorization, form, execution, delivery and validity of each of this Agreement,
the Securities, the Registration Statement and all other legal matters relating to this Agreement and the transactions contemplated
hereby shall be reasonably satisfactory in all material respects to counsel for the Placement Agent, and the Company shall have
furnished to such counsel all documents and information that they may reasonably request to enable them to pass upon such matters.

 

(f) Opinion of Counsel to the Company.
The Placement Agent shall have received from counsel to the Company such counsel’s written opinion, addressed to the Placement
Agent and dated as of the Closing Date, in form and substance reasonably satisfactory to the Placement Agent.

 

(g) Letter from Auditors. The
Placement Agent shall have received a letter from Gregory & Associates, LLC on the date hereof and on the applicable Closing
Date addressed to the Placement Agent, confirming that they are independent public accountants within the meaning of the Securities
Act and are in compliance with the applicable requirements relating to the qualifications of accountants under Rule 2-01 of Regulation
S X of the Commission, and confirming, as of the date of each such letter, the conclusions and findings of said firm with respect
to the financial information, including any financial information contained in reports filed by the Company with the Commission
pursuant to the reporting requirements of the Exchange Act, and other matters required by the Placement Agent.

 

    	10

    	 

    

 

(h) Absence of Material Change.
Neither the Company nor any of its Subsidiaries shall have sustained since the date of the latest audited financial statements
included in the Statutory Prospectus and the Prospectus, (i) any material loss or interference with its business from fire, explosion,
flood, terrorist act or other calamity, whether or not covered by insurance, or from any labor dispute or court or governmental
action, order or decree, otherwise than as set forth in or contemplated by the Statutory Prospectus and the Prospectus, and (ii)
since such date there shall not have been any material change in the capital stock or material increase in the long-term debt of
the Company or any of its Subsidiaries or any material change, or any development involving a prospective material change, in or
affecting the business, general affairs, management, financial position, shareholders’ equity, results of operations or prospects
of the Company and its Subsidiaries, otherwise than as included in, or contemplated by, the Statutory Prospectus and the Prospectus,
the effect of which, in any such case described in clause (i) or (ii), is, in the judgment of the Placement Agent, so material
and adverse as to make it impracticable or inadvisable to proceed with the sale or delivery of the Securities on the terms and
in the manner contemplated by the Registration Statement.

 

(i) Continued Registration; Listing
on Trading Market. The Common Stock is registered under the Exchange Act and, as of the Closing Date, the Shares shall be quoted
and authorized for trading on the Company’s Trading Market, and satisfactory evidence of such actions shall have been provided
to the Placement Agent. The Company shall have taken no action designed to, or likely to have the effect of terminating the registration
of the Common Stock under the Exchange Act or suspending from trading the Common Stock from the Company’s Trading Market,
nor has the Company received any information suggesting that the Commission or the Company’s Trading Market is contemplating
terminating such registration or listing.

 

(j) Absence of Certain Events.
Subsequent to the execution and delivery of this Agreement, there shall not have occurred any of the following: (i) trading in
securities generally on any Trading Market or in the over-the-counter market, or trading in any securities of the Company on any
Trading Market or in the over-the-counter market, shall have been suspended or minimum or maximum prices or maximum ranges for
prices shall have been established on any such exchange or such market by the Commission, by such exchange or by any other regulatory
body or governmental authority having jurisdiction, (ii) a banking moratorium shall have been declared by federal or state authorities
or a material disruption has occurred in commercial banking or securities settlement or clearance services in the United States,
(iii) the United States shall have become engaged in hostilities in which it is not currently engaged, the subject of an act of
terrorism, there shall have been an escalation in hostilities involving the United States, or there shall have been a declaration
of a national emergency or war by the United States, or (iv) there shall have occurred any other calamity or crisis or any change
in general economic, political or financial conditions in the United States or elsewhere, if the effect of any such event in clause
(iii) or (iv) makes it, in the sole judgment of the Placement Agent, impracticable or inadvisable to proceed with the sale or delivery
of the Securities on the terms and in the manner contemplated by the Registration Statement.

 

(k) Prevention of Issuance.
No action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any governmental
agency or body which would, as of the Closing Date, prevent the issuance or sale of the Securities or result in a Material Adverse
Effect; and no injunction, restraining order or order of any other nature by any federal or state court of competent jurisdiction
shall have been issued as of the Closing Date which would prevent the issuance or sale of the Securities or result in Material
Adverse Effect.

 

(l) [RESERVED].

 

(m) Subscription Agreements.
The Company shall have entered into subscription agreements with each of the Purchasers and such agreements shall be in full force
and effect on the Closing Date.

 

(n) Officers’ Certificate.
On the Closing Date, there shall have been furnished to the Placement Agent, a certificate, dated such Closing Date and addressed
to the Placement Agent, signed by the principal executive officer and by the principal financial and accounting officer of the
Company, certifying to the fulfillment of the conditions specified in Section 12(a), (b), (e) and (h) (other than, in respect clause
(h), the judgment of the Placement Agent). Any certificate signed by any officer of the Company shall be deemed a representation
and warranty by the Company to the Placement Agent as to the matters covered thereby.

 

(o) Secretary’s Certificate.
On the Closing Date, the Company shall have furnished to the Placement Agent a certificate of the Secretary of the Company (the
“Secretary’s Certificate”), dated as of the Closing Date, (i) certifying the resolutions adopted
by the Board of Directors of the Company approving the transactions contemplated by this Agreement and the other Transaction Documents
and the issuance of the Securities, (ii) certifying the current versions of the articles of incorporation, as amended and by-laws,
as amended, of the Company and (iii) certifying as to the signatures and authority of persons signing the Transaction Documents
and related documents on behalf of the Company.

 

    	11

    	 

    

 

(p) Prior to the Closing Date, the
Company shall have furnished to the Placement Agent such further information, certificates and documents as the Placement Agent
may reasonably request.

 

All opinions, letters, evidence and
certificates mentioned above or elsewhere in this Agreement shall be deemed to be in compliance with the provisions hereof only
if they are in form and substance reasonably satisfactory to counsel for the Placement Agent.

 

Section 13. Notices. All notices or other communications
required or permitted to be provided hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery
to the party to be notified, (b) when sent by confirmed e-mail, telex or facsimile if sent during normal business hours of the
recipient, if not, then on the next business day, (c) five days after having been sent by registered or certified mail, return
receipt requested, postage prepaid, or (d) one day after deposit with a nationally recognized overnight courier, specifying next
day delivery, with written verification of receipt. The address for such notices and communications shall be as set forth on the
signature pages hereto or at such other address as such recipient has designated by two days advance written notice to the other
parties hereto.

 

Section 14. Termination of this Agreement.

 

(a) The Placement Agent shall have
the right to terminate this Agreement (and the obligations of the Purchasers under subscription agreements entered into with the
Company) by giving notice as hereinafter specified at any time at or prior to the Closing Date, without liability on the part of
the Placement Agent to the Company, if (i) prior to delivery and payment for the Securities (A) trading in securities generally
shall have been suspended on or by any Trading Market, (B) trading in the Common Stock of the Company shall have been suspended
on any exchange, in the over-the-counter market or by the Commission, (C) a general moratorium on commercial banking activities
shall have been declared by federal or state authorities or a material disruption shall have occurred in commercial banking or
securities settlement or clearance services in the United States, (D) there shall have occurred any outbreak or material escalation
of hostilities or acts of terrorism involving the United States or there shall have been a declaration by the United States of
a national emergency or war, (E) there shall have occurred any other calamity or crisis or any material change in general economic,
political or financial conditions in the United States or elsewhere, if the effect of any such event specified in clause (D) or
(E), in the judgment of the Placement Agent, is material and adverse and makes it impractical or inadvisable to proceed with the
completion of the sale of and payment for the Securities on the Closing Date on the terms and in the manner contemplated by this
Agreement, the Statutory Prospectus and the Prospectus, (ii) since the time of execution of this Agreement, there has been any
Material Adverse Change or the Company or any Subsidiary shall have sustained a loss or interference with its business by strike,
fire, flood, earthquake, accident or other calamity, whether or not covered by insurance, in each case which is not described in
the Statutory Prospectus and the Prospectus, and is of such character that in the judgment of the Placement Agent would, individually
or in the aggregate, result in a Material Adverse Change and which would, in the judgment of the Placement Agent, make it impracticable
or inadvisable to proceed with the offering or the delivery of the Securities on the terms and in the manner contemplated in this
Agreement, the Statutory Prospectus and the Prospectus, (iii) the Company shall have failed, refused or been unable to comply with
the terms or perform any agreement or obligation of this Agreement or any subscription agreement entered into with Purchasers,
other than by reason of a default by the Placement Agent, or (iv) any condition of the Placement Agent’s obligations hereunder
is not fulfilled. Any such termination shall be without liability of any party to any other party, except that the Company will
reimburse the Placement Agent for all of their out-of-pocket expenses actually incurred by them in connection with the Placement
and that the provisions of Section 6, and Section 15 hereof shall at all times be effective notwithstanding such termination.

 

(b) If the Placement Agent elects to
terminate this Agreement as provided in this Section 14, the Company shall be notified promptly by the Placement Agent by telephone,
confirmed by letter.

 

Section 15. Governing Law.
All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by
and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts
of law thereof. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT
TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
If either party shall commence a Proceeding to endorse any provisions of a Transaction Document, then the prevailing party in such
Proceeding shall be reimbursed by the other party for its reasonable attorney’s fees and other reasonable costs and expenses
incurred with the investigation, preparation and prosecution of such Proceeding.

 

    	12

    	 

    

 

Section 16. Entire Agreement;
Miscellaneous. This Agreement (including the attached Indemnification Provisions) embodies the entire agreement and understanding
between the parties hereto, and supersedes all prior agreements and understandings, relating to the subject matter hereof. If any
provision of this Agreement is determined to be invalid or unenforceable in any respect, such determination will not affect such
provision in any other respect or any other provision of this Agreement, which will remain in full force and effect. This Agreement
may not be amended or otherwise modified or waived except by an instrument in writing signed by each of the Placement Agent and
the Company. The representations, warranties, agreements and covenants contained herein shall survive the closing of the Placement
and delivery of the Securities. This Agreement shall be binding upon and inure to the benefit of the parties hereto, and their
respective successors and permitted assigns. This Agreement may be executed in two or more counterparts, all of which when taken
together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party
and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any
signature is delivered by facsimile transmission or a .pdf format file, such signature shall create a valid and binding obligation
of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or .pdf
signature page were an original thereof.

 

Section 17. Construction. The
parties hereto have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question
of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.

 

[Signature page follows]

 

    	13

    	 

    

 

Please confirm that the foregoing correctly
sets forth our agreement by signing and returning to the Placement Agent the enclosed copy of this Agreement.

 

	 	LIQTECH INTERNATIONAL, INC.
	 	 	 	 
	 	By:	/s/ Lasse Andreassen
	 	 	 	 
	 	 	Name:	Lasse Andreassen
	 	 	 	 
	 	 	Title:	Chief Executive Officer
	 	 	 	 
	 	Address for Notice:
	 	LiqTech International, Inc.
	 	c/o LiqTech North America Inc.
	 	1804 Buerkle Road
	 	White Bear Lake, MN 55110
	 	Attention: Soren Degn
	 	Facsimile: (651) 773-5850
	 	 
	 	With a copy to:
	 	Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
	 	The Chrysler Center
	 	666 Third Avenue
	 	New York, NY 10017
	 	Attention: Kenneth R. Koch and Jeffrey P. Schultz 
	 	Facsimile: (212) 983-3115
	 	 
	 	Accepted and agreed to as of the date first written above:
	 	 
	 	SUNRISE SECURITIES CORP.
	 	 	 	 
	 	By:	/s/ Nathan Low
	 	 	 	 
	 	 	Name:	Nathan Low
	 	 	 	 
	 	 	Title:	President
	 	 	 	 
	 	Address for Notice:
	 	Sunrise Securities Corp.
	 	600 Lexington Avenue, 23rd Floor
	 	New York, NY 10022
	 	Facsimile:
	 	 
	 	With a copy to:
	 	Richardson & Patel LLP
	 	750 Third Avenue
	 	New York, NY 10017
	 	Attention: David Feldman
	 	Facsimile: (917) 591-6898

 

    	 

    	 

    

 

ADDENDUM A

 

Form of Lock-Up Agreement

Sunrise Securities Corp.

600 Lexington Avenue, 23rd Floor

New York, NY 10022

 

Re: LiqTech International, Inc.
Public Offering of Common Stock

 

Dear Sirs:

 

In order to induce
Sunrise Securities Corp. (“Sunrise”) to enter in to a certain Placement Agency Agreement with LiqTech International,
Inc., a Nevada corporation (the “Company”), with respect to the public offering of shares of the Company’s
Common Stock, par value $0.001 per share (“Common Stock”), the undersigned hereby agrees that for a period (the
“lock-up period”) of 180 days following the date of the final registration statement filed by the Company with
the Securities and Exchange Commission in connection with such public offering (the “Registration Statement”),
the undersigned will not, without the prior written consent of the Representatives, directly or indirectly, (i) offer, sell, assign,
transfer, pledge, contract to sell, or otherwise dispose of, any shares of Common Stock or securities convertible into or exercisable
or exchangeable for Common Stock (including, without limitation, shares of Common Stock or any such securities which may be deemed
to be beneficially owned by the undersigned in accordance with the rules and regulations promulgated under the Securities Act of
1933, as the same may be amended or supplemented from time to time (such shares or securities, the “Beneficially Owned
Shares”)), (ii) enter into any swap, hedge or other agreement or arrangement that transfers in whole or in part, the
economic risk of ownership of any Beneficially Owned Shares, Common Stock or securities convertible into or exercisable or exchangeable
for Common Stock, or (iii) engage in any short selling of any Beneficially Owned Shares, Common Stock or securities convertible
into or exercisable or exchangeable for Common Stock.

 

If (i) the Company
issues an earnings release or material news or a material event relating to the Company occurs during the last seventeen (17) days
of the lock-up period, or (ii) prior to the expiration of the lock-up period, the Company announces that it will release earnings
results during the sixteen (16)-day period beginning on the last day of the lock-up period, the restrictions imposed by this Agreement
shall continue to apply until the expiration of the eighteen (18)-day period beginning on the issuance of the earnings release
or the occurrence of the material news or material event.

 

Notwithstanding
the foregoing, the foregoing restrictions shall not in any event apply to transfers of shares of Common Stock or Beneficially Owned
Shares (i) as a bona fide gift or gifts or pledge, provided that the undersigned provides prior written notice of such gift
or gifts or pledge to the Representatives and the donee or donees or pledgee or pledgees (as the case may be) thereof agree to
be bound by the restrictions set forth herein, (ii) either during the undersigned’s lifetime or on death by will or intestacy
to the undersigned’s immediate family or to a trust, the beneficiaries of which are exclusively the undersigned and a member
or members of the undersigned’s immediate family, provided that the transferee thereof agrees to be bound by the restrictions
set forth herein, (iii) to the undersigned and/or any member of the immediate family of the undersigned from or by a grantor retained
(or like-kind) annuity trust which exists as of the date hereof and was established for the direct or indirect benefit of the undersigned
and/or any member of the immediate family of the undersigned pursuant to the terms of such trust, (iv) if the undersigned is a
corporation, partnership or other business entity (A) to another corporation, partnership or other business entity that is
an affiliate (as defined under Rule 12b-2 of the Exchange Act) of the undersigned or (B) any distribution or dividend
to equity holders of the undersigned as part of a distribution or dividend by the undersigned (including upon the liquidation and
dissolution of the undersigned pursuant to a plan of liquidation approved by the undersigned’s equity holders), or if
the undersigned is a trust, to a grantor or beneficiary of the trust, (v) in the event of a default under a pledge which exists
as of the date hereof as security for a margin or loan account pursuant to the terms of such account, (vi) pursuant to any 10b5-1
trading plans in effect as of the date of the Offering and (vii) with the prior written consent of the Representatives. Any permitted
transferee noted in (i), (ii), (iii) and (iv) above shall execute a duplicate form of this Lock-Up Agreement or execute an agreement,
reasonably satisfactory to the Representatives, pursuant to which each transferee shall agree to receive and hold such Common Stock
or Beneficially Owned Shares subject to the provisions hereof, and there shall be no further transfer except in accordance with
the provisions hereof. For the purposes of this paragraph, “immediate family” shall mean spouse, domestic partner,
lineal descendant (including adopted children), father, mother, brother or sister of the transferor. Furthermore, the undersigned
shall be permitted to exercise of options to purchase shares of Common Stock or receive shares of Common Stock upon the vesting
of equity awards and the related transfer of shares of Common Stock to the Company (i) deemed to occur upon the cashless exercise
of such options or (ii) for the primary purpose of paying the exercise price of such options or for paying taxes (including
estimated taxes) due as a result of the exercise of such options or as a result of the vesting of such shares of Common Stock under
such equity awards.

 

    	 

    	 

    

 

In addition, the
undersigned hereby waives, from the date hereof until the expiration of the 180 day period following the date of the Registration
Statement, any and all rights, if any, to request or demand registration pursuant to the Securities Act of 1933, as amended, of
any shares of Common Stock or securities convertible into or exercisable or exchangeable for Common Stock that are registered in
the name of the undersigned or that are Beneficially Owned Shares. In order to enable the aforesaid covenants to be enforced, the
undersigned hereby consents to the placing of legends and/or stop-transfer orders with the transfer agent of the Common Stock with
respect to any shares of Common Stock, securities convertible into or exercisable or exchangeable for Common Stock or Beneficially
Owned Shares.

 

	 	[Signatory]	 
	 	 	 	 
	 	By:	 	 
	 	 	 	 
	 	 	Name:	 
	 	 	 	 
	 	 	Title:	 

 

    	 

    	 

    

 

ADDENDUM B

 

Sunrise Securities Corp.

600 Lexington Avenue, 23rd Floor

New York, NY 10022

 

Ladies and Gentlemen:

 

1. In connection
with our engagement of Sunrise Securities Corp. (the “Placement Agent” or "Sunrise") as Placement Agent,
LiqTech International, Inc. (the "Company") agrees to indemnify and hold harmless Sunrise and each of the other Indemnified
Parties (as hereinafter defined) from and against any and all losses, claims, damages, obligations, penalties, judgments, awards,
liabilities, costs, expenses and disbursements, and any and all pending or threatened actions, suits, proceedings and investigations
in respect thereof and any and all legal and other costs, expenses and disbursements in giving testimony or furnishing documents
in response to a subpoena or otherwise (including, without limitation, the costs, expenses and disbursements, as and when incurred,
of investigating, preparing, pursuing or defending any such action, suit, proceeding or investigation (whether or not in connection
with litigation in which any Indemnified Party is a party (collectively, "Losses"), directly or indirectly, caused by,
relating to, based upon, arising out of, or in connection with, Sunrise's acting for the Company, including, without limitation,
any act or omission by Sunrise in connection with its acceptance of or the performance or non-performance of its obligations under
the Placement Agency Agreement, any material breach by the Company of any representation, warranty, covenant or agreement contained
in the Placement Agency Agreement (or in any instrument, document or agreement relating thereto), or the enforcement by Sunrise
of their rights under the Placement Agency Agreement or these indemnification provisions, except to the extent that any such Losses
are the result of a settlement by an Indemnified Party effected without the Company's prior written consent (not to be unreasonably
withheld) or are found in a final judgment by a court of competent jurisdiction (not subject to further appeal) to have resulted
primarily from the gross negligence or willful misconduct of any Indemnified Party. The Company also agrees that no Indemnified
Party shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Company for or in connection
with the engagement of Sunrise by the Company or for any other reason, except to the extent that any such liability is found in
a final judgment by a court of competent jurisdiction (not subject to further appeal) to have resulted primarily and directly from
such Indemnified Party's gross negligence or willful misconduct.

 

2. These indemnification
provisions shall extend to the following persons (collectively, the "Indemnified Parties"): Sunrise and any sub-placement
agent that the Company and Sunrise consent to in writing, their present and former affiliated entities, partners, employees, legal
counsel, agents and controlling persons (within the meaning of the federal securities laws), and the officers, directors, partners,
stockholders, members, managers, employees, legal counsel, agents and controlling persons of any of them. These indemnification
provisions shall be in addition to any liability which the Company may otherwise have to any Indemnified Party.

 

3. If any action,
suit, proceeding or investigation is commenced, as to which an Indemnified Party proposes to demand indemnification, it shall notify
the Company with reasonable promptness; provided, however, that any failure by an Indemnified Party to notify the
Company shall not relieve the Company from their respective obligations hereunder. The Company shall provide for the engagement
of one law firm reasonably acceptable to the Indemnified Parties to provide legal representation to the Indemnified Parties, and
the reasonable fees, expenses and disbursements of such counsel shall be borne by the Company; provided, however, that any Indemnified
Person may retain his or her own legal counsel if a conflict would exist with such first firm of legal counsel. Any such counsel
shall, to the extent consistent with its professional responsibilities, cooperate with the Company and any counsel designated by
the Company, as applicable. The Company shall be liable for any settlement of any claim against any Indemnified Party made with
the prior written consent of the Company (which consent shall not be unreasonably withheld or delayed). The Company shall not,
without the prior written consent of Sunrise, settle or compromise any claim, or permit a default or consent to the entry of any
judgment in respect thereof, unless such settlement, compromise or consent (a) includes, as an unconditional term thereof, the
giving by the claimant to all of the Indemnified Parties of an unconditional release from all liability in respect of such claim,
and (b) does not contain any factual or legal admission by or with respect to an Indemnified Party or an adverse statement with
respect to the character, professionalism, expertise or reputation of any Indemnified Party or any action or inaction of any Indemnified
Party.

 

    	 

    	 

    

 

4. In order to provide
for just and equitable contribution, if a claim for indemnification pursuant to these indemnification provisions is made but it
is found in a final judgment by a court of competent jurisdiction (not subject to further appeal) that such indemnification may
not be enforced in such case, even though the express provisions hereof provide for indemnification in such case, then the Company
shall contribute to the Losses to which any Indemnified Party may be subject (a) in accordance with the relative benefits received
by the Company and its respective stockholders, subsidiaries and affiliates, on the one hand, and the Indemnified Party, on the
other hand, and (b) if (and only if) the allocation provided in clause (a) of this sentence is not permitted by applicable law
or by any such court, in such proportion as to reflect not only the relative benefits, but also the relative fault of the Company,
on the one hand, and the Indemnified Party, on the other hand, in connection with the statements, acts or omissions which resulted
in such Losses as well as any relevant equitable considerations. No person found liable for a fraudulent misrepresentation shall
be entitled to contribution from any person who is not also found liable for such fraudulent misrepresentation. The relative benefits
received (or anticipated to be received) by the Company and its respective stockholders, subsidiaries and affiliates shall be deemed
to be equal to the aggregate consideration payable or receivable by such parties in connection with the transaction or transactions
to which the Placement Agency Agreement relates relative to the amount of fees actually received by Sunrise in connection with
such transaction or transactions. Notwithstanding the foregoing, in no event shall the amount contributed by all Indemnified Parties
exceed the amount of fees previously received by Sunrise pursuant to the Placement Agency Agreement.

 

5. Neither termination
nor completion of the engagement of Sunrise referred to above shall effect these indemnification provisions which shall remain
operative and in full force and effect and shall be in addition to any liability that the Company might otherwise have to any Indemnified
Party under the Placement Agency Agreement or otherwise. The indemnification provisions shall be binding upon the Company and its
respective successors and assigns and shall inure to the benefit of the Indemnified Parties and their respective successors, assigns,
heirs and personal representatives.

 

These Indemnification
Provisions may be executed in any number of counterparts, each of which shall be deemed an original but all of which when taken
together shall constitute one and the same instrument. Facsimile signatures shall be deemed originals for all purposes hereunder.

 

The provisions of this agreement shall
remain in full force and effect following the completion or termination of the Placement Agent’s engagement.

 

	 	LIQTECH INTERNATIONAL, INC.
	 	 	 	 	 
	 	By:	/s/ Soren Degn 	 
	 	 	 	 	 
	 	 	Name:	Soren Degn	 
	 	 	 	 	 
	 	 	Title:	Chief Financial Officer	 
	 	 	 	 	 
	Accepted and agreed to as of	SUNRISE SECURITIES CORP.	 
	the date first written above:	 	 
	 	 	 	 	 
	 	By:	/s/ Nathan Low 	 
	 	 	 	 	 
	 	 	Name:	Nathan Low	 
	 	 	 	 	 
	 	 	Title:	PresidentADOPTION AGREEMENT

FOR

SPECIMEN SECTION 451

DEFERRED COMPENSATION PLAN

 

By executing this Adoption
Agreement, the Employer named below establishes the SPECIMEN SECTION 451 DEFERRED COMPENSATION PLAN, as set forth in this
Adoption Agreement and in the Specimen Section 451 Deferred Compensation Plan document (the “Plan Document”), which
is incorporated by reference into this Adoption Agreement.

 

THE FAILURE PROPERLY
TO FILL OUT THIS ADOPTION AGREEMENT MAY RESULT IN ADVERSE TAX CONSEQUENCES TO PLAN PARTICIPANTS AND SIGNIFICANT LIABILITY TO THE
EMPLOYER.

 

THIS PLAN IS TO BE USED
ONLY BY FOR-PROFIT EMPLOYERS.

 

IF YOU HAVE ANY QUESTIONS
CONCERNING THE ADOPTION AGREEMENT OR THE PLAN, CONTACT CPI QUALIFIED PLAN CONSULTANTS.

 

ALL CAPITALIZED TERMS
USED BUT NOT OTHERWISE DEFINED IN THIS ADOPTION AGREEMENT SHALL HAVE THE MEANINGS ASSIGNED TO SUCH TERMS IN THE PLAN DOCUMENT.

 

		A1.	Name of Plan

 

	 	Education Realty Trust Deferred Compensation
    Plan

 

EMPLOYER INFORMATION

 

		B1.	Name of Employer (Sponsor of the Plan)

 

	 	Education Realty Trust

 

		B2,	Address

  

	 	530 Oak Court Drive Suite 300
	 	Street Address (Not a P.O. Box)
	 	 
	 	Memphis, TN  38117
	 	City, State and Zip Code
	 	 
	 	901-259-2508
	 	Telephone Number

 

		B3.	Employer’s Federal Tax Identification Number;

 

	 	20-1352180

 

    	 

    	 

    

 

		B4.	Affiliated Employers

 

	 	The following affiliated employers will participate in the Plan:
	 	 
	 	1)  Allen & O’Hara Education Services, Inc.
	 	 
	 	2)  Education Realty Trust Employment Resources, LLC
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	Each affiliated employer that adopts the Plan must execute this Adoption Agreement.

 

PLAN INFORMATION

 

		C1.	Effective Date

 

(Select One)

 

This Adoption Agreement
shall:

 

(x)          establish
a new Plan effective as of  October 1, 2011  the “Effective Date”.

 

( )          constitute
an amendment and restatement in its entirety of a previously established Code section 451 Plan of the Employer which initially
was effective as of _______________. This amendment and restatement is adopted as of ______________, the “Effective Date”.

 

YOU SHOULD CONSULT WITH
COMPETENT ERISA COUNSEL BEFORE AMENDING AND RESTATING. A PRE-JANUARY 1, 2005 PLAN AS DOING SO MAY RESULT IN CERTAIN ADVERSE TAX
CONSEQUENCES.

 

		C2.	Name of Plan Administrator

 

(Select One)

 

(x) The Employer, using
the Employer’s address.

 

(  )          Other _________________.
If other is selected, complete the following:

			   (Name)

 

		(x)	Use Employer’s Address

 

		(  )	Use the
following address, telephone number and Federal Taxpayer Identification Number:

 

    	 

    	 

    

 

	 	 
	 	Street Address (Not a P.O. Box)
	 	 
	 	 
	 	City, State and Zip Code
	 	 
	 	 
	 	Telephone Number
	 	 
	 	 
	 	Federal Tax Identification Number

 

		C3.	Trust

 

(Select One)

 

( )          The Employer
will not enter into a “rabbi trust” to establish a source from which to pay benefits under the Plan, Rather, Plan benefits
will be paid from the Employer’s general assets.

 

(x)          The
Employer (and any adopting Affiliated Employers) will enter into a “rabbi trust” to establish a source from which to
pay benefits under the Plan. The Trustee(s) shall be:

 

	 	Central Bank and Trust
	 	Name of Licensed Trust Company or Individuals Who Will Serve as Trustee(s)
	 	 
	 	 
	 	Street Address
	 	 
	 	 
	 	City, State and Zip Code
	 	 
	 	 
	 	Telephone Number

 

UNDER THE PENSION PROTECTION
ACT OF 2006, AN EMPLOYER THAT ALSO SPONSORS AN UNDERFUNDED DEFINED BENEFIT PLAN, MAY HAVE TO CEASE SETTING ASIDE ANY ASSETS IN
A “RABBI TRUST’ IN CERTAIN CIRCUMSTANCES. PLEASE CONSULT WITH COMPETENT ERISA COUNSEL BEFORE SETTING ASIDE ANY AMOUNTS
IN A “RABBI TRUST” IN SUCH A SITUATION.

 

ELIGIBILITY

 

ONLY INDIVIDUALS WHO ARE
MEMBERS OF A SELECT GROUP OF THE EMPLOYER’ S MANAGEMENT OR HIGHLY COMPENSATED EMPLOYEES ARE PERMITTED BY LAW TO PARTICIPATE
IN THE PLAN.

 

    	 

    	 

    

 

(Complete all that apply)

 

		D1.	As of the Effective Date, eligibility will be limited to:

 

(  )          The following
named individuals, each of whom is classified as a member of a select group of the Employer’s management or highly compensated
employees:

 

	 	 

 

IN THE FUTURE, THE EMPLOYER MAY CHANGE THE
INDIVIDUALS WHO ARE ELIGIBLE FOR PLAN PARTICIPATION BY RESOLUTION OF THE EMPLOYER’S GOVERNING BODY.

 

(  )          Individuals
holding the following policy-making positions within the Employer:

 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

 

IN THE FUTURE, THE EMPLOYER MAY CHANGE THE
POSITIONS THAT ARE ELIGIBLE FOR PLAN PARTICIPATION BY RESOLUTION OF THE EMPLOYER’S GOVERNING BODY.

 

(  )           Other:
[Please Describe]

 

	 	Employees designated as eligible in writing by the Vice President of Human
	 	 
	 	Resources.
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

 

		D2.	The Entry Date for individuals determined to be eligible to participate in the Plan is

 

(Select One)

 

 (  )        The
first day of the payroll period occurring on or after the date on which he or she is eligible to participate.

 

    	 

    	 

    

 

(x)          The
beginning of the calendar Quarter (e.g., January 1) occurring on or after the date on which he or she is eligible to participate.

 

CONTRIBUTIONS

 

		E1.	Participant Compensation Deferrals (Section 3.1 of the Plan Document)

 

(Select One)

 

(x)          will

 

(  )          will not

 

be permitted.

 

E2.The Employer (Section 3.1 of the Plan
Document)

 

(Select One)

 

(x)          will

 

(  )          will not

 

permit Participants to
defer Performance-Based Compensation.

 

		E3.	The Employer (Section 3.1 and Section 3.3 of the Plan Document)

 

(Select One)

 

		(  )	will

 

(x)          will
not

 

link this Plan
to the Employer’s Qualified Plan. The Compensation Deferrals that a Participant may make shall be limited as provided under
the Plan. A Participant who makes a Compensation Deferral election with respect to this Plan that is linked to the Employer’s
Qualified Plan will not be permitted to make a separate salary deferral election with respect to the Employer’s Qualified
Plan for the Plan Year for which the Compensation Deferral election is made. Amounts deferred under this Plan (up to the maximum
amount of pre-tax deferrals that could have been made to the Employer’s Qualified Plan as required by law and the terms of
the Qualified Plan for the Plan Year in question) will be transferred to the trust established for the Employer’s Qualified
Plan as soon as administratively feasible following the end of the Plan Year for which the Compensation Deferral election is made.
Any amounts deferred under the Plan that cannot be transferred into the Employer’s Qualified Plan shall be held under this
Plan.

 

		E4.	Employer Contributions (Section 3.2 of the Plan Document)

 

(Select One)

 

(x)          might

 

(  )          will not

 

be made.

 

    	 

    	 

    

 

		E5.	Employer Contributions will be:

 

(Select One)

 

( )          N/A

 

(x)          Made
on a participant—by-participant basis at the discretion of the Employer

 

( )          Based on
a participant’s “compensation” for the Plan year, in the following manner:

 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

 

A participant’s “compensation”,
for purposes of determining the amount of the Employer’s contribution on behalf of a participant, shall consist of the following
(Select One and Complete if necessary):

 

(x)         N/A
See Superseding Provision Agreement

( )          W-2 earnings

( )          W-2 earnings
plus _______________________________________________________________

( )          W-2 earnings
minus ______________________________________________________________

( )          W-2 earnings
plus ___________________________________________________________ , and

			minus _________________________________________________________________________

 

INVESTMENT OF ACCOUNTS (Section 4.1 of the
Plan Document)

 

		F1.	The deemed investment of participant contributions (and earnings thereon) shall be directed by:

 

( )          N/A

 

(x)          The
participant

 

( )          The employer

 

		F2.	The deemed investment of employer contributions (and earnings thereon) shall be directed by:

 

( )          N/A

 

(x)          The
participant

 

( )          The employer

 

    	 

    	 

    

 

VESTING

 

IT IS THE EMPLOYERS RESPONSIBILITY
TO INFORM THE PLAN ADMINISTRATOR OF A PARTICIPANT’S VESTING DATE.

 

		G1.	A Participant shall become vested in his or her Employer Contribution Credit Account under the
Plan in accordance with the following schedule:

 

(Select One)

 

(  )          N/A. A
Participant shall be fully vested in his or her Employer Contribution Credit Account at all times.

 

	 	(  )	Years of Service	Vested Percentage	 
	 	 	Under 3 Years	 	0%	 	 
	 	 	3 Years of More	 	100%	 	 
	 	 	 	 	 	 	 
	 	(  )	Years of Service	Vested Percentage	 
	 	 	Under 5 Years	 	0%	 	 
	 	 	5 Years of More	 	100%	 	 
	 	 	 	 	 	 	 
	 	(  )	Years of Service	Vested Percentage	 
	 	 	1 Year	 	0%	 	 
	 	 	2 Years but not 3 Years	 	20%	 	 
	 	 	3 Years but not 4 Years	 	40%	 	 
	 	 	4 Years but not 5 Years	 	60%	 	 
	 	 	5 Years but not 6 Years	 	80%	 	 
	 	 	6 Years or More	 	100%	 	 
	 	 	 	 	 	 	 
	 	(  )	Years of Service	Vested Percentage	 
	 	 	Under 1 Year	 	0%	 	 
	 	 	1 Year but not 2 Years	 	10%	 	 
	 	 	2 Years but not 3 Years	 	20%	 	 
	 	 	3 Years but not 4 Years	 	30%	 	 
	 	 	4 Years but not 5 Years	 	40%	 	 
	 	 	5 Years but not 6 Years	 	50%	 	 
	 	 	6 Years but not 7 Years	 	60%	 	 
	 	 	7 Years but not 8 Years	 	70%	 	 
	 	 	8 Years but not 9 Years	 	80%	 	 
	 	 	9 Years but not 10 Years	 	90%	 	 
	 	 	10 Years or More	 	100%	 	 
	 	(x)	Other  See Superseding Provision Agreement	 	 	 	 

 

 

 

 

    	 

    	 

    

 

PARTICIPANTS ARE FULLY ‘VESTED AT
ALL VIES IN THEIR COMPENSATION DEFERRAL ACCOUNTS, YEARS OF SERVICE SHALL BE AS DETERMINED BY THE EMPLOYER IN ITS DISCRETION.

 

DISTRIBUTIONS

 

A PARTICIPANT’S ACCOUNT, TO THE EXTENT
VESTED, WILL BECOME DISTRIBUTABLE TO THE PARTICIPANT UPON THE DISTRIBUTION DAZE THAT THE PARTICIPANT ELECTS ON THE APPROPRIATE
ELECTION FORM. IT IS THE EMPLOYER’S RESPONSIBILITY TO NOTIFY THE PLAN ADMINISTRATOR OF DISTRIBUTION DATE(S).

 

		H1.	Distribution Timing under the Plan (Section 5.1 of the Plan Document)

 

As elected by the Participant in accordance
with the terms of the Plan, a Participant will receive a distribution (or commencement of distributions) of his or her vested Account
upon:

 

(Select all that the Employer chooses to permit
— the Employer must select at least one of the following)

 

( )          the fixed
payment date elected by the Participant on the appropriate Election Form

 

( )          ninety
(90) days following the Participant’s Separation from Service with the Employer

 

( )          at the
earlier of the fixed payment date elected by the Participant or ninety (90) days following the Participant’s Separation from
Service with the Employer

 

(x)          at
the earlier of (i) the fixed payment date elected by the Participant, (ii) ninety (90) days following the Participant’s Separation
from Service with the Employer, or (iii) ninety (90) days after a Change in Control of the Employer

 

IF A PARTICIPANT FAILS TO DESIGNATE PROPERLY
THE TIMING OF DISTRIBUTION OF THE PARTICIPANT’S BENEFIT UNDER THE PLAN, THE PARTICIPANT WILL BE DEEMED TO HAVE ELECTED DISTRIBUTION
(OR COMMENCEMENT OF DISTRIBUTION) OF HIS OR HER VESTED ACCOUNT NINETY DAYS FOLLOWING SEPARATION FROM SERVICE (SUBJECT TO THE SIX
MONTH DELAY RULE FOR SPECIFIED EMPLOYEES).

 

Select the below if Unforeseeable Emergency
distributions are permitted (Section 5.2 of the Plan Document):

 

(x)          A
Participant may receive a distribution if the Participant incurs an Unforeseeable Emergency (in accordance with the rules established
by the Plan).

 

    	 

    	 

    

 

		H2.	If a fixed payment date is elected in Section H1 above, the participant

 

(Select One)

 

(x)          may

 

( )          may not

 

elect to delay the fixed
payment date on a continual basis in accordance with the rules established in the Plan. (Sections 5.1 and 6.2 of the Plan Document)

 

H3.Form of Distribution. (Section 6.2 of
the Plan Document)

 

Distributions under the
Plan may be made (Select one or both):

 

(x)          In
lump sum form.

 

( )          In annual
installments over a period up to 10 years, as selected by the Participant in accordance with the rules established by the Plan.

 

IF A PARTICIPANT FAILS
TO DESIGNATE PROPERLY THE FORM OF DISTRIBUTION OF THE PARTICIPANTS BENEFIT UNDER THE PLAN, THE PARTICIPANT WELL BE DEEMED TO HAVE
ELECTED DISTRIBUTION (OR COMMENCEMENT OF DISTRIBUTIONS) OF HIS OR HER VESTED ACCOUNT IN A LUMP SUM.

 

MISCELLANEOUS

 

		I1.	Expenses incurred in connection with the Plan

 

(Select One)

 

( )          shall be
charged against the balance in each individual’s Plan Account and paid out of the amounts held in the Trust attributable
to the individual’s Plan Account.

 

(x)          shall
be paid by the Employer from its general assets.

 

(x)          Fund
expenses paid at the Fund level

 

BY SIGNING THIS ADOPTION
AGREEMENT, THE EMPLOYER (i) CERTIFIES THAT IT HAS CONSULTED WITH LEGAL COUNSEL REGARDING THE EFFECTS OF THIS PLAN AND THE TRUST,
AS APPLICABLE, ON ALL PARTIES, (ii) ACKNOWLEDGES RECEIPT OF THE CURRENT PROSPECTUS(ES) FOR THE FUNDS TO BE OFFERED UNDER THE PLAN
(WHETHER THE INVESTMENTS ARE IN A TRUST OR HELD AS GENERAL ASSETS OF THE EMPLOYER), IF APPLICABLE, AND (iii) REPRESENTS THAT EACH
PARTICIPANT WITH THE RIGHT TO DIRECT PLAN INVESTMENTS WILL RECEIVE A PROSPECTUS FOR EACH FUND IN WHICH CONTRIBUTIONS ATTRIBUTABLE
TO HIS OR HER PLAN ACCOUNT MAY BE INVESTED.

 

    	 

    	 

    

 

PLAN ADOPTION:

 

IN WITNESS WHEREOF, the Employer (and adopting
Affiliated Employer, if any) hereby cause this Plan to be executed on this _29_ day of __September__, ___2011____.

 

	Education Realty Trust	By:	/s/  Randy Brown	 
	Type or Print Employer’s Name	 	 	 
	 	Type or Print Name and Title of Signing Officer	 
	 	 	 	 
	 	Randy Brown	 
	 	 	 
	 	Executive Vice President	 
	 	 	 	 
	Allen & O’Hara Education Services, Inc.	By:	/s/  Randy Brown	 
	Type or Print Affiliated	 	 	 
	Employer’s Name	Type or Print Name and Title of Signing Officer	 
	 	 	 
	 	Randy Brown	 
	 	 	 
	 	Executive Vice President	 
	 	 	 	 
	Education Realty Trust Employment	By:	/s/  Randy Brown	 
	Resources, LLC	 	 	 
	Type or Print Affiliated	Type or Print Name and Title of Signing Officer	 
	Employer’s Name	 	 
	 	Randy Brown	 
	 	 	 
	 	Executive Vice President	 

 

    	 

    	 

    

 

EDUCATION REALTY TRUST INC. 

NONQUALIFIED DEFERRED COMPENSATION PLAN

 

Superseding Provision Agreement

 

Effective October 15, 2011,
the following provisions are added to the Education Realty Trust Inc. Nonqualified Deferred Compensation Plan (the “Plan”)
and supersede all provisions to the contrary.

 

CLARIFICATION – Official Name of Plan

 

The official name of the
Plan is Education Realty Trust Inc. Nonqualified Deferred Compensation Plan.

 

FIRST CHANGE - Compensation

 

For purposes of determining
a Participant’s Compensation Deferrals and the amount of Employer’s Contribution on behalf of a Participant, “Compensation
shall mean: A Participant’s wages as defined in Section 3401(a) of the Code and all other payments of compensation to a Participant
by the Employer (in the course of the Employer’s trade or business) for which the Employer is required to furnish the Participant
a written statement under Sections 6041(d) and 6051(a)(3) of the Code, excluding reimbursements or other expense allowances, fringe
benefits (cash and non-cash), moving expenses, deferred compensation and welfare benefits, but including amounts that are not includable
in the gross income of the Participant under a salary reduction agreement by reason of the application of Sections 125, 132(f)(4),
402(e)(3), 403(h) or 403(b) of the Code. Compensation shall be determined without regard to any rules under Section 3401(a) of
the Code that limit the remuneration included in wages based on the nature or location of the employment or the services performed
(such as the exception for agricultural labor in Section 3401(a)(2) of the Code). Compensation shall include any quarterly bonuses
or nonperformance-based bonuses awarded to a Participant during a Plan Year. In addition, Compensation shall include any amounts
deferred under this Plan by the Participant. Notwithstanding the foregoing, Compensation shall not include commissions, the value
of an incentive stock option or a non-qualified stock option granted to a Participant by the Employer to the extent such value
is includable in the Participant’s taxable income, auto and gas allowance, relocation allowance and the value of a restricted
stock award granted to a Participant by the Employer to the extent such value is includable in the Participant’s taxable
income.

 

SECOND CHANGE – Vesting Schedule

 

A Participant shall become
vested in his or her Employer Contribution Credit Account under the Plan in accordance with the following vesting schedule:

 

    	 

    	 

    

 

	Years of Employment	 	Vested %
	 	 	 
	0	 	0
	 	 	 
	1	 	25%
	 	 	 
	2	 	50%
	 	 	 
	3	 	100%

 

A Participant’s Account shall
become one hundred percent (100%) vested upon his death or upon the occurrence of a Change in Control.

 

THIRD CHANGE - Expenses

 

Expenses and fees in connection
with the administration of the Plan shall be paid in either of the following manners as determined by the Employer in its sole
discretion:

 

(1)          The expenses may be paid directly
by the Employer from its general assets; or

(2)          The expenses may be paid out
of the Trust (subject to any restriction contained in such trust or required by law).

 

Effective as of the date
set forth above, the Employer hereby adopts this Superseding Provision Agreement, and ratifies and confirms the Plan as so amended
in all respects.

 

	 	EDUCATION REALTY TRUST, INC.
	 	 	 
	 	By:	/s/  SusanArrison
	 	 	 
	 	Title:	Vice President - HR
	 	 	 
	 	Date:	10-13-11

 

    	 

    	 

    

 

SPECIMEN SECTION 451

 

DEFERRED COMPENSATION PLAN

 

(For Use With The Adoption Agreement For

the Specimen Section 451

Deferred Compensation Plan)

 

    	 

    	 

    

 

SPECIMEN SECTION 451

DEFERRED COMPENSATION PLAN

 

TABLE OF CONTENTS

 

ARTICLE 1

DEFINITIONS

 

	article 1 DEFINITIONS	1
	1.1	ACCOUNT	1
	1.2	AGREEMENT	1
	1.3	BENEFICIARY	1
	1.4	BOARD	1
	1.5	CHANGE IN CONTROL	1
	1.6	CODE	2
	1.7	COMPENSATION	2
	1.8	COMPENSATION DEFERRAL ACCOUNT	2
	1.9	COMPENSATION DEFERRALS	2
	1.10	DISABILITY	2
	1.11	EFFECTIVE DATE	2
	1.12	ELECTION FORM	2
	1.13	ELIGIBLE EMPLOYEE	2
	1.14	EMPLOYER	2
	1.15	EMPLOYER CONTRIBUTION CREDIT ACCOUNT	2
	1.16	EMPLOYER CONTRIBUTION CREDITS	2
	1.17	ENTRY DATE	3
	1.18	PARTICIPANT	3
	1.19	PERFORMANCE-BASED COMPENSATION	3
	1.20	PLAN	3
	1.21	PLAN YEAR	3
	1.22	SEPARATION FROM SERVICE	3
	1.23	SPECIFIED EMPLOYEE	3
	1.24	TRUST	3
	1.25	TRUSTEE	3
	1.26	VALUATION DATE	3
	 	 	
	ARTICLE 2 ELIGIBILITY AND PARTICIPATION	4
	2.1	REQUIREMENTS	4
	2.2	RE-EMPLOYMENT	4
	2.3	CHANGE OF EMPLOYMENT CATEGORY	4
	 	 	
	ARTICLE 3 CONTRIBUTIONS AND CREDITS	4
	3.1	PARTICIPANT COMPENSATION DEFERRALS	4
	3.2	EMPLOYER CONTRIBUTION CREDITS	6
	3.3	CONTRIBUTIONS TO THE TRUST	6

 

    	i

    	 

    

 

	ARTICLE 4 ALLOCATION OF FUNDS	7
	 	 	
	4.1	INVESTMENT AUTHORITY OVER ACCOUNT	7
	4.2	ACCOUNTING FOR DISTRIBUTIONS	7
	4.3	SEPARATE ACCOUNTS	7
	4.4	DEEMED INVESTMENT DIRECTIONS	7
	4.5	EXPENSES AND TAXES	8
	 	 	
	ARTICLE 5 ENTITLEMENT TO BENEFITS	9
	5.1	PAYMENT DATES	9
	5.2	UNFORESEEABLE EMERGENCY DISTRIBUTIONS	10
	5.3	DEATH, DISABILITY	10
	5.4	FORFEITURES	10
	 	 	
	ARTICLE 6 DISTRIBUTION OF BENEFITS	11
	6.1	AMOUNT	11
	6.2	METHOD OF PAYMENT.	11
	6.3	ACCELERATIONS	12
	6.4	DEATH OR DISABILITY BENEFITS	12
	6.5	DELAYS	12
	6.6	PAYMENT OF BENEFITS	13
	 	 	
	ARTICLE 7 BENEFICIARIES; PARTICIPANT DATA	13
	7.1	DESIGNATION OF BENEFICIARIES	13
	7.2	INFORMATION TO BE FURNISHED BY PARTICIPANTS AND BENEFICIARIES: INABILITY TO LOCATE PARTICIPANTS OR BENEFICIARIES	13
	 	 	
	ARTICLE 8 ADMINISTRATION	14
	8.1	ADMINISTRATIVE AUTHORITY	14
	8.2	LITIGATION	14
	8.3	CLAIMS PROCEDURE	15
	 	 	
	ARTICLE 9 AMENDMENT	18
	9.1	RIGHT TO AMEND	18
	9.2	AMENDMENTS TO ENSURE PROPER CHARACTERIZATION OF PLAN	18
	 	 	
	ARTICLE 10 SUSPENSION OR TERMINATION OF THE PLAN	18
	10.1	EMPLOYER’S RIGHT TO SUSPEND PLAN	18
	10.2	AUTOMATIC TERMINATION OF PLAN	18
	10.3	TERMINATION AND LIQUIDATION OF THE PLAN	19
	 	 	
	ARTICLE 11 THE TRUST	19
	11.1	ESTABLISHMENT OF TRUST	19

 

    	ii

    	 

    

 

	ARTICLE 12 MISCELLANEOUS	19
	12.1	LIABILITY OF EMPLOYER: LIMITATIONS ON LIABILITY OF EMPLOYER	19
	12.2	CONSTRUCTION	20
	12.3	SPENDTHRIFT PROVISION	20
	12.4	DISTRIBUTION TIMING	20
	12.5	AGGREGATION OF EMPLOYERS	20
	12.6	AGGREGATION OF PLANS	21
	12.7	USERRA	21
	12.8	TAX WITHHOLDING	21

 

    	iii

    	 

    

 

 SPECIMEN SECTION 451

DEFERRED COMPENSATION PLAN

 

RECITALS

 

By executing the attached
Adoption Agreement (the “Agreement”), the Employer, as identified in the Agreement, has adopted this Specimen Section
451 Deferred Compensation Plan (the “Plan”) effective as provided in the Agreement. This Plan is intended to offer
a select group of the Employer’s management or highly compensated employees an opportunity to elect to defer the receipt
of compensation in order to provide deferred compensation benefits taxable pursuant to section 451 of the Internal Revenue Code
of 1986, as amended (the “Code”), and to provide a deferred compensation vehicle to which the Employer, in its discretion,
may credit certain amounts on behalf of participants. The Plan is intended to be a “top-hat” plan (i.e., an unfunded
deferred compensation plan maintained for a select group of management or highly-compensated employees) under sections 201(2),
301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). The Plan also
is intended to comply with the requirements of Code section 409A and any authoritative guidance issued under that section. Participation
in this Plan shall not be construed to create an employment contract between any Participant and the Employer.

 

Accordingly, the following
Plan is adopted.

 

article
1

DEFINITIONS

 

Whenever used in the Plan
or the Agreement, the following terms shall have the meanings as set forth in this Article unless a different meaning is clearly
required by the context,

 

1.1           ACCOUNT
means the balance credited to a Participant’s or Beneficiary’s Plan account, including amounts credited to the
Participant’s Compensation Deferral Account (if any) and the Participant’s Employer Contribution Credit Account
(if any) and deemed income, gains and losses (as determined by the Employer, in its discretion) credited to those Accounts
(if any). A Participant’s or Beneficiary’s Account shall be determined as of the date of reference.

 

1.2           AGREEMENT
means the Adoption Agreement for the Specimen Section 451 Deferred Compensation Plan that was executed by the Employer.

 

1.3           BENEFICIARY
means any person or person so designated in accordance with the provisions of Article 7.

 

1.4           BOARD
means the Employer’s Board of Directors, or a committee of the Employer’s Board of Directors duly authorized to
make determinations and act for the Board under this Plan.

 

1.5           CHANGE
IN CONTROL means a change in the ownership or effective control of the Employer within the meaning of Code section 409A
and IRS guidance under Code section 409A.

 

    	1

    	 

    

 

1.6           CODE
means the Internal Revenue Code of 1986 and the Treasury regulations and other authoritative guidance issued under the Code,
as amended from time to time.

 

1.7           COMPENSATION
means the cash remuneration paid by the Employer to an Eligible Employee with respect to his or her service for the Employer
(as determined in accordance with the Agreement).

 

1.8           COMPENSATION
DEFERRAL ACCOUNT is described in Section 3.1.

 

1.9           COMPENSATION
DEFERRALS is described in Section 3.1.

 

1.10         DISABILITY
means a period of disability during which the Participant (i) is unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than twelve months, (ii) is, by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of
not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident
and health plan covering employees of the Employer or (iii) is determined to be totally disabled by the Social Security
Administration.

 

1.11         EFFECTIVE
DATE means the effective date of this Plan specified in the Agreement.

 

1.12         ELECTION
FORM means the form or forms on which a Participant elects to defer Compensation under this Plan and the Agreement and/or
on which the Participant makes certain other designations as required under this Plan and the Agreement.

 

1.13         ELIGIBLE
EMPLOYEE means, for any Plan Year (or applicable portion thereof), an employee of the Employer who is determined by the
Employer to be a member of a select group of management or highly compensated employees of the Employer and who is designated
by the Board to be an Eligible Employee under the Plan.

 

Prior to the beginning of
each Plan Year, the Employer shall notify those individuals, if any, who will be Eligible Employees for the next Plan Year. If
the Employer determines that an individual first becomes an Eligible Employee during a Plan Year, the Employer shall notify such
individual of its determination and the individual shall first become an Eligible Employee as of the date of the notification.

 

1.14         EMPLOYER
means (individually or collectively, as required by the context), the entity or entities that execute the Agreement as the
Employer (or affiliated employers), or any successors that adopt the Plan.

 

1.15         EMPLOYER
CONTRIBUTION CREDIT ACCOUNT is described in Section 3.2.

 

1.16         EMPLOYER
CONTRIBUTION CREDITS is described in Section 3.2.

 

    	2

    	 

    

 

1.17         ENTRY
DATE with respect to an individual means the first day of the pay period following the date on which the individual
becomes an Eligible Employee or the date(s) specified as Entry Date(s) in the Adoption Agreement, if different.

 

1.18         PARTICIPANT
means any person so designated in accordance with the provisions of Article 2, including, where appropriate according to the
context of the Plan, any former employee who is or may become (or whose Beneficiaries may become) eligible to receive a
benefit under the Plan.

 

1.19         PERFORMANCE-BASED
COMPENSATION means that portion (if any) of an Eligible Employee’s Compensation which is contingent on the
satisfaction of pre-established organizational or individual performance criteria related to a performance period of at least
12 consecutive months, and which meets the requirements for “performance-based compensation” under Code section
409A, including the requirement that the performance criteria be established in writing by not later than (i) 90 days after
the commencement of the period of service to which the criteria relates and (ii) the date the outcome ceases to be
substantially uncertain.

 

1.20         PLAN
means this Specimen Section 451 Deferred Compensation Plan, as amended from time to time.

 

1.21         PLAN
YEAR means the twelve (12) month period ending on the December 31 of each year during which the Plan is in effect. The
Plan may experience a short Plan Year from its Effective Date until the following December 31.

 

1.22         SEPARATION
FROM SERVICE means “separation from service” within the meaning of Code section 409A, treating as a
Separation from Service an anticipated permanent reduction in the level of bona fide services to be performed by the
Participant to 20% or less of the average level of bona fide services performed by the Participant over the immediately
preceding 36 month period (or the full period during which the Participant performed services for the Employer, if that is
less than 36 months).

 

1.23         SPECIFIED
EMPLOYEE means, with respect to a corporation any stock of which is publicly traded on an established securities market
or otherwise, a key employee, as defined in Code section 416(i) (without regard to paragraph (5) of that section) to mean an
employee of the Employer who, at any time during the Plan Year, is (1) an officer of the Employer having an annual
compensation greater than one hundred thirty-five thousand dollars ($135,000) for 2005 (indexed for inflation in future
years); (ii) a five-percent (5%) owner of the Employer; or (iii) a one-percent (1%) owner of the Employer having an annual
compensation from the Employer of more than one hundred fifty thousand dollars ($150,000).

 

1.24         TRUST
means (if a Trust is elected in the Agreement and established) the Trust described in Article 11.

 

1.25         TRUSTEE
means (if a Trust is elected in the Agreement and established) the trustee of the Trust described in Article 11.

 

1.26         VALUATION
DATE means each day of each Plan Year.

 

    	3

    	 

    

 

ARTICLE
2

ELIGIBILITY
AND PARTICIPATION

 

2.1           REQUIREMENTS.
Every Eligible Employee on the Effective Date shall be eligible to become a Participant on the Effective Date. Every other Eligible
Employee shall be eligible to become a Participant on his or her first Entry Date. No individual shall become a Participant, however,
if he or she is not an Eligible Employee on the date his or her participation is to begin.

 

Participation in the Compensation
Deferral portion of the Plan (if Compensation Deferrals are elected in the Agreement) is voluntary. In order to participate in
the Compensation Deferral portion of the Plan, an otherwise Eligible Employee must make written application on an Election Form
at such time and in such manner as may be required by Section 3.1 and by the Employer and must agree to make Compensation Deferrals
as provided in Article 3.

 

Participation in the Employer
Contribution Credit Account portion of the Plan (if Employer Contribution Credits are elected in the Agreement) is automatic and
does not require a Participant’s election to participate.

 

2.2           RE-EMPLOYMENT.
Subject to Code section 409A, a Participant whose employment with the Employer is terminated shall become a Participant in accordance
with the provisions of Section 2.1.

 

2.3           CHANGE
OF EMPLOYMENT CATEGORY. During any period in which a Participant remains in the employ of the Employer, but ceases to be an
Eligible Employee, he or she shall not be eligible to make further Compensation Deferral elections or receive Employer Contribution
Credits.

 

ARTICLE
3

CONTRIBUTIONS
AND CREDITS

 

3.1           PARTICIPANT
COMPENSATION DEFERRALS. If Compensation Deferrals are elected in the Agreement, subject to the remaining paragraphs of this
Section and in accordance with rules established by the Employer and subject to such amount limitations as might be imposed by
the Employer in its discretion, a Participant may elect to defer Compensation which is due to be earned and which would otherwise
be paid to the Participant, in any fixed periodic dollar amounts or percentages designated by the Participant. Amounts so deferred
will be considered a Participant’s “Compensation Deferrals.” Except as provided below, a Participant shall make
such election(s) under this paragraph with respect to a coming twelve (12) month Plan Year during the period beginning sixty days
before the end of the Plan Year and ending on the last day of the Plan Year, or during such other period as might be established
by the Employer, which period ends no later than the last day of the Plan Year preceding the Plan Year in which the services giving
rise to the Compensation to be deferred are to be performed.

 

    	4

    	 

    

 

In the case of the first
Plan Year in which an Eligible Employee initially becomes eligible to become a Participant (or again becomes eligible after having
been ineligible for at least 24 months), if and to the extent permitted by the Employer, the Eligible Employee may make an irrevocable
election, no later than 30 days after the date he or she becomes eligible to become a Participant, to defer Compensation for services
to be performed after the election. For this purpose, an election will be deemed to apply to bonus Compensation for services performed
after the election if the election applies to no more than an amount equal to the total bonus for the performance period multiplied
by the ratio of the number of days remaining in the performance period after the election over the total number of days in the
performance period.

 

If and to the extent permitted
by the Employer, a Participant may make an election to defer that portion (if any) of his or her Compensation which qualifies as
Performance-Based Compensation no later than (and the election shall become irrevocable no later than) six months prior to the
last day of the period over which the services giving rise to the Performance-Based Compensation are performed (provided that the
Participant performs services continuously from the later of the beginning of the performance period or the date the performance
criteria are established through the date of the deferral election, and provided further that in no event may an election to defer
be made with respect to any portion of the Performance-Based Compensation that has become reasonably ascertainable, as defined
under Code section 409A, prior to making the election).

 

Compensation Deferrals shall
be made through regular payroll deductions or deferrals of bonuses, if applicable, After the deadline for making a deferral election
for a Plan Year (as set forth above) has passed, the Participant may not change or revoke his or her Compensation Deferral election
until the following Plan Year, except to the extent permitted by the Employer and under Code section 409A upon a disability or
a hardship distribution pursuant to section 1.401(k)-1(d)(3) of the Treasury Regulations, For purposes of this paragraph only,
“disability” means any medically determinable physical or mental impairment resulting in the Participant’s inability
to perform the duties of his or her position or any substantially similar position, where such impairment can be expected to result
in death or can be expected to last for a continuous period of not less than six months.

 

Once made, a Compensation
Deferral regular payroll deduction election shall continue in force only for the Plan Year to which the election relates, unless
cancelled as provided above. A Compensation Deferral bonus payment election shall continue in force only for the bonus payment
for which the election is specifically effective, unless cancelled as provided above.

 

There shall be established
and maintained by the Employer a separate Compensation Deferral Account in the name of each Participant, which shall become vested
in the Participant as specified below, and to which shall be credited or debited: (a) amounts equal to the Participant’s
Compensation Deferrals; and (b) any deemed earnings and losses allocated to the Compensation Deferral Account. Compensation Deferrals
shall be deducted by the Employer from the Compensation of the Participant and shall be credited to his or her Compensation Deferral
Account. Amounts equal to the Compensation Deferrals will be paid by the Employer to the Trust with reasonable promptness after
the total of Compensation Deferrals during any period has been determined.

 

A Participant shall at all
times be 100% vested in amounts credited to his or her Compensation Deferral Account.

 

    	5

    	 

    

 

If the Employer elects in
the Agreement to link this Plan to the Employer’s qualified retirement plan, a Participant may elect to defer Compensation
which is due to be earned by the Participant in any fixed periodic dollar or percentage amount that does not exceed the limit with
respect to elective deferrals under Code section 402(g) in effect for the taxable year in which such deferrals are made (not taking
into account any catch-up contributions permitted under Code section 414(v)).

 

3.2           EMPLOYER
CONTRIBUTION CREDITS. If Employer Contribution Credits are elected in the Agreement, there shall be established and maintained
a separate Employer Contribution Credit Account in the name of each Participant. Each such Employer Contribution Credit Account
shall be credited or debited, as applicable, with (i) amounts equal to the Employer’s Contribution Credits, if any, credited
to that Account; and (ii) amounts equal to any deemed earnings and losses (to the extent realized, based upon deemed fair market
value of the Account’s deemed assets as determined by the Employer, in its discretion) allocated to that Account.

 

The Employer Contribution
Credits credited to a Participant’s Employer Contribution Credit Account for any particular Plan Year shall be an amount
(if any) identified in the Agreement, The Employer shall credit such contributions on behalf of such individuals, in such amounts
and with such frequency as the Board determines in its sole discretion. A Participant shall become vested in amounts credited to
his or her Employer Contribution Credit Account according to the vesting schedule established in the Agreement. Notwithstanding
the preceding, a Participant will only receive a matching contribution (if any) under this Plan if the Participant has made the
maximum elected deferral permitted under the Employer’s 401(k) Plan.

 

3.3           CONTRIBUTIONS
TO THE TRUST. An amount shall be contributed by the Employer to the Trust (if any) maintained under Section 11.1 equal to
the amount(s) required to be credited to the Participant’s Account under Sections 3.1 and 3.2. The Employer shall make a
good faith effort to contribute these amounts to the Trust as soon as practicable following the date on which the contribution
credit amount(s) are determined.

 

If elected in the Agreement,
as soon as administratively feasible following the end of each Plan Year (or as otherwise required by the Code), the Employer or
the Trustee, if any, shall transfer, on behalf of each Participant, from the general assets of the Employer or the Trust, if any,
to the trust established for the Employer’s qualified retirement plan, an amount equal to the lesser of (a) the maximum amount
of pre-tax deferrals that the Participant could have made to the Employer’s qualified retirement plan for that previous Plan
Year, within the limits imposed under the terms of the Employer’s qualified retirement plan and the Code (including Code
sections 402(g), 401(k) and 401(m)), or (b) the amount of Compensation Deferrals the Participant actually deferred under the terms
of this Plan for that Plan Year; provided however, the Employer or the Trustee shall not transfer any amounts attributable to earnings,
and the Trustee shall not transfer an amount of Compensation Deferrals that exceeds the limit with respect to elective deferrals
under Code section 402(g) in effect for the taxable year for which such transfer occurs.

 

    	6

    	 

    

 

ARTICLE
4

ALLOCATION
OF FUNDS

 

4.1           INVESTMENT
AUTHORITY OVER ACCOUNT.

 

(a)          Participant
Direction. If elected in the Agreement, each Participant shall have the right to direct the Employer as to how amounts in his
or her Compensation Deferral Account and/or Employer Contribution Credit Account (as applicable) shall be deemed to be invested.

 

(b)          Employer
Direction. If elected in the Agreement, the Employer (or its designee) shall have the right to direct how amounts in a Participant’s
Compensation Deferral Account and/or Employer Contribution Credit Account (as applicable) shall be deemed to be invested.

 

(c)          Update
on Accounts to Reflect Investment Performance. On a daily basis, a Participant’s Account will be credited or debited
to reflect the Participant’s deemed pro rata portion of the value of each deemed investment position maintained under the
Plan.

 

4.2           ACCOUNTING
FOR DISTRIBUTIONS. As of the date of any distribution under this Plan, the distribution made to the Participant or his or
her Beneficiary or Beneficiaries shall be charged to such Participant’s Account. The amount of the distribution shall be
charged on a pro rata basis against the investments in which the Participant’s Account is deemed to be invested (or shall
be charged in any other manner acceptable to the Employer and directed by the person or entity with investment authority over
the Account).

 

The fact that an allocation
has been made will not operate to vest in any Participant any right, title or interest in any benefit under the Plan. Vesting shall
occur only as provided in Article 3 and in the Agreement.

 

4.3           SEPARATE
ACCOUNTS. A separate bookkeeping account under the Plan shall be established and maintained by the Employer to reflect the
Account for each Participant with bookkeeping sub-accounts to show separately the Participant’s Compensation Deferral Account
(if applicable) and the Participant’s Employer Contribution Credit Account (if applicable), Each sub-account will separately
account for the credits and debits described in Article 3.

 

4.4           DEEMED
INVESTMENT DIRECTIONS. Subject to such limitations as may from time to time be required by law, imposed by the Employer, the
Trustee (if applicable) or contained elsewhere in the Plan, and subject to such operating rules and procedures as may be imposed
from time to time by the Employer, the person or entity having control over the investment of the Account (as determined in the
Agreement) will have the right to make the initial investment election by submission of a written form or an electronic form via
a web site, Each person or entity having control over the investment of an Account may give the Employer a direction (in accordance
with (a), below) as to how the applicable Plan Account should be deemed to be invested among such categories of deemed investments
as may be made available by the Employer under this Plan, which may be unlimited, at the Employer’s sole discretion. Such
direction shall designate the percentage (in any whole percent multiples) of each portion of the Participant’s Plan Accounts
which is requested to be deemed to be invested in such categories of deemed investments, and shall be subject to the following
rules:

 

    	7

    	 

    

 

(a)          Any
initial or subsequent deemed investment direction shall be in writing, on a form supplied by and filed with the Employer, and/or,
as required or permitted by the Employer, shall be by oral designation and/or electronic transmission designation. A designation
shall be effective as of the date following the date the direction is received and accepted by the Employer on which it would be
reasonably practicable for the Employer to effect the designation. Generally, any initial or subsequent deemed investment direction
shall be effective no later than the second business day after which the investment direction is received.

 

(b)          All
amounts credited to the Participant’s Account shall be deemed to be invested in accordance with the then effective deemed
investment direction, and as of the effective date of any new deemed investment direction, all or a portion of the Participant’s
Account at that date shall be reallocated among the designated deemed investment funds according to the percentages specified in
the new deemed investment direction unless and until a subsequent deemed investment direction shall be filed and become effective.
An election concerning deemed investment choices shall continue indefinitely as provided in the Participant’s most recent
investment direction form provided by and filed with the Employer.

 

(c)          If
the Employer receives an initial or revised deemed investment direction which it deems to be incomplete, unclear or improper, the
Participant’s investment direction then in effect shall remain in effect (or, in the case of a deficiency in an initial deemed
investment direction, the Participant shall be deemed to have filed no deemed investment direction) until the Participant completes
a new investment direction.

 

(d)          If
the Employer possesses (or is deemed to possess as provided in (c), above) at any time directions as to the deemed investment of
less than all of a Participant’s Account, the Participant shall be deemed to have directed that the undesignated portion
of the Account be deemed to be invested in a fund made available under the Plan as determined by the Employer in its discretion.

 

(e)          Each
Participant, as a condition to his or her participation in this Plan, agrees to indemnify and hold harmless the Employer and its
agents and representatives from any losses or damages of any kind relating to the deemed investment of the Participant’s
Account.

 

(f)          Each
reference in this Section to a Participant shall be deemed to include, where applicable, a reference to a Beneficiary of a deceased
Participant.

 

4.5           EXPENSES
AND TAXES. Expenses, including Trustee fees (if any), associated with the administration or operation of the Plan shall be
paid by the Employer from its general assets unless the Employer elects to charge such expenses against the appropriate Participant’s
Account or Participants’ Accounts. Any taxes allocable to an Account (or portion thereof) maintained under the Plan which
are payable prior to the distribution of the Account (or portion thereof), as determined by the Employer, shall be paid by the
Employer unless the Employer elects to charge such taxes against the appropriate Participant’s Account or Participants’
Accounts.

 

    	8

    	 

    

 

ARTICLE
5

ENTITLEMENT
TO BENEFITS

 

5.1           PAYMENT
DATES. This Section shall apply only as elected by the Employer in the Agreement.

 

At the earlier of the time
the Participant makes his or her initial Compensation Deferral election or the time the Participant first has a legally binding
right to Employer Contribution Credits, a Participant shall elect to receive payment of his or her vested Account, which payment
will be valued and paid according to the provisions of Article 6: (i) ninety (90) days following the Participant’s Separation
from Service with the Employer; (ii) on a fixed payment date or dates (the “Fixed Payment Date(s)”); (iii) at the earlier
of the preceding event or date(s); or (iv) at the earlier of ninety (90) days after a Change in Control and one or more of the
preceding events or date(s).

 

Notwithstanding the foregoing,
if and when the Employer becomes a corporation whose stock is publicly traded on an established securities market or otherwise,
any Participant who is a Specified Employee and who incurs a Separation from Service with the Employer shall not be entitled to
receive any portion of his or her vested Account under this Section prior to the date which is at least six (6) months after the
date or his or her Separation from Service (or, if earlier, his or her death).

 

Any Fixed Payment Date elected
by a Participant must be a date no earlier than the January 1 of the third calendar year after the calendar year in which the earliest
Compensation Deferrals and/or Employer Contribution Credits subject to the Fixed Payment Date are to be made by or on behalf of
the Participant (or, if applicable, the January 1 of the third calendar year in which a new Compensation Deferral and/or Employer
Contribution Credit is made after the Participant has received a distribution of his or her previously vested Account). By way
of example, an Eligible Employee who enrolls as a Participant in the Plan in November 2006 and who elects to defer Compensation
to be earned during 2007 may elect at that time as his or her initial Fixed Payment Date any date which is no earlier than January
1, 2010, in which case the Participant’s vested Plan Account as of December 31, 2009 (including his or her 2007, 2008 and
2009 Compensation Deferrals and/or Employer Contribution Credits, and any earnings on those amounts) shall be paid on January 1,
2010.

 

If permitted by the Employer
in the Agreement, any Fixed Payment Date may be delayed, to a later Fixed Payment Date, so long as any election to delay the date
is made by the Participant at least twelve (12) months prior to the date on which the distribution is to be made and such delay
is at least five (5) full calendar years in length. Such Fixed Payment Date may not be accelerated, except as provided in the remaining
Sections of this Article. Any election to change the Fixed Payment Date shall not take effect for twelve (12) months after the
date on which the election is made.

 

    	9

    	 

    

 

Notwithstanding the preceding,
to the extent permitted under Code section 409A and by the Employer, the Participant may elect the timing of distributions during
(i) 2007 (except that a Participant cannot in 2007 change payment elections with respect to payments that the Participant would
otherwise receive in 2007, or in 2007 make an election that causes post-2007 scheduled payments to be made in 2007) or (ii) 2008
(except that a Participant cannot in 2008 change payment elections with respect to payments that the Participant would otherwise
receive in 2008, or in 2008 make an election that causes post-2008 scheduled payments to be made in 2008), and such election shall
not be treated as a change in the form and timing of payment or an acceleration of payment.

 

5.2           UNFORESEEABLE
EMERGENCY DISTRIBUTIONS. If permitted by the Employer in the Agreement, in the event the Participant incurs an unforeseeable
emergency, as defined below, the Participant may apply to the Employer for the distribution of all or any part of his or her Account
attributable to Compensation Deferrals and/or fully vested Employer Contribution Credits. The Employer shall consider the circumstances
of each such case, and the best interests of the Participant and his or her family, and shall have the right, in its sole discretion,
if applicable, to allow such distribution, or, if applicable, to direct a distribution of part of the amount requested, or to
refuse to allow any distribution; provided, however, that such distribution shall be permitted solely to the extent permitted
under Code section 409A. Upon a finding of unforeseeable emergency, the Employer shall direct that the appropriate distribution
is made to the Participant with respect to the Participant’s vested Account in a lump sum payment. In no event shall the
aggregate amount of the distribution exceed either the full value of the Participant’s vested Account or the amount determined
by the Employer to be necessary to satisfy the unforeseeable emergency plus amounts necessary to pay taxes reasonably anticipated
as a result of the distribution, after taking into account the extent to which the hardship is or may be relieved through reimbursement
or compensation by insurance or otherwise or by liquidation of the Participant’s assets (to the extent the liquidation of
assets would not itself cause severe financial hardship), or by cessation of deferrals under the Plan. For purposes of this Section,
the value of the Participant’s vested Account shall be determined as of the date of the distribution.

 

For purposes of this Section,
“unforeseeable emergency” means (a) a severe financial hardship to the Participant resulting from an illness or accident
of the Participant, the Participant’s spouse, beneficiary or a dependent (as defined in Code section 152(a)) of the Participant,
(b) loss of the Participant’s property due to casualty, or (c) other similar extraordinary and unforeseeable circumstances
arising as a result of events beyond the control of the Participant, each as determined to exist by the Employer. A distribution
may be made under this Section only with the consent of the Employer.

 

5.3           DEATH,
DISABILITY. Upon the Participant’s death or Disability, the Participant’s vested Account shall be valued and paid
to the Participant or the Participant’s designated Beneficiary(ies), as applicable, as provided in Article 6.

 

5.4           FORFEITURES.
The vested portion of a Participant’s Plan Account shall be payable as provided in this Article. The unvested portion of
such Plan Account shall be forfeited and allocated in the manner described below. Forfeitures of Employer Contribution Credits
may be used first to pay any expenses payable by the Trust (if any) for the Plan Year and then shall be used to reduce the Employer
Contribution Credits, if any, for the Plan Year (or shall be returned to the Employer if future Employer Contributions equal to
the amount of the forfeitures are not anticipated).

 

    	10

    	 

    

 

ARTICLE
6

DISTRIBUTION
OF BENEFITS

 

6.1         AMOUNT.
A Participant (or his or her Beneficiary) shall become entitled to receive a distribution (or commencement of distributions) in
an aggregate amount equal to the Participant’s vested Account. If a Trust is elected under the Agreement, any payment due
under the terms of the Plan from the Trust which is not paid by the Trust for any reason will be paid by the Employer from its
general assets.

 

6.2         METHOD
OF PAYMENT.

 

(a)          Cash
Payments. All payments under the Plan shall be made in cash.

 

(b)          Timing
and Manner of Payment. Except as otherwise provided in this Plan, on the date or dates determined in accordance with Article
5, an aggregate amount equal to the Participant’s vested Account will be paid by the Trust or the Employer, as provided in
Section 6.1 (and as elected in the Agreement), in (i) a lump sum, or (ii) in up to ten annual installments (adjusted for gains
and losses), as selected by the Participant at the time he or she makes his or her initial Compensation Deferral election or the
time the Participant first has a legally binding right to Employer Contribution Credits. If a Participant fails to designate properly
the manner of payment of the Participant’s benefit under the Plan, the Participant will be deemed to have elected a lump
sum payment. If a Participant fails to designate properly the timing of payment of the Participant’s benefit under the Plan,
the Participant will be deemed to have elected payment of his or her vested Account ninety (90) days following Separation from
Service (subject to the six month delay rule described in Section 5,1).

 

Subject to Section 6.3 and
if elected by the Employer in the Agreement, the Participant may change his or her above-described timing and manner of payment
elections (or deemed elections) by submitting a new Election Form to the Employer, provided that any such Election Form is submitted
at least twelve (12) months prior to the date on which the distribution is to be made (or commence) and delays the distribution
(or commencement of distributions) date at least five (5) full calendar years from the previously scheduled distribution date.
Any such election will not take effect for 12 months after it is made.

 

Notwithstanding the preceding,
to the extent permitted under Code section 409A and by the Employer, the Participant may select the form of payment during (i)
2007 (except that a Participant cannot in 2007 change payment elections with respect to payments that the Participant would otherwise
receive in 2007, or in 2007 make an election that causes post-2007 scheduled payments to be made in 2007) or (ii) 2008 (except
that a Participant cannot in 2008 change payment elections with respect to payments that the Participant would otherwise receive
in 2008, or in 2008 make an election that causes post-2008 scheduled payments to be made in 2008), and such election shall not
be treated as a change in the form and timing of payment or an acceleration of payment.

 

If the whole or any part
of a payment under this Plan is to be in installments, the total to be so paid shall continue to be deemed to be invested pursuant
to Article 4 under such procedures as the Employer may establish, in which case any deemed income, gain, loss or expense or tax
allocable thereto (as determined by the Employer, in its discretion) shall be reflected in the installment payments, using such
method for the calculation of the installments as the Employer shall reasonably determine.

 

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6.3           ACCELERATIONS.
Notwithstanding anything in the Plan to the contrary, no change submitted on a Participant’s election form shall be accepted
by the Employer if the change accelerates the date on which distributions shall be made to the Participant (except as otherwise
permitted by Code section 409A) and the Employer shall deny any change made to an election if the Employer determines that the
change violates the requirement under Code section 409A that the first payment with respect to which such election is made be
deferred for a period of not less than five years from the date such payment would otherwise have been made.

 

Notwithstanding the preceding,
the Employer, in its discretion (without any direct or indirect election on the part of any Participant), may accelerate a distribution
under the Plan to the extent permitted under Code section 409A (e.g., Treas. Reg. 1.409A-3(j)(4)), including, but not limited to,
making payments necessary to comply with a domestic relations order, payments necessary to comply with certain conflict of interest
rules, and certain de minimis payments related to the participant’s termination of his or her interest in the plan.

 

6.4           DEATH
OR DISABILITY BENEFITS. If a Participant dies or becomes Disabled before incurring a Separation from Service and before the
commencement of payments to the Participant under this Plan, the entire value of the Participant’s vested Account shall
be paid ninety (90) days following the Participant’s death or Disability, as applicable, in a lump sum, to the Participant
or to the person or persons designated in accordance with Section 7.1, as applicable.

 

Upon the death or Disability
of a Participant after payments under this Plan have begun but before he or she has received all payments to which he or she is
entitled under the Plan, the remaining benefit payments shall be paid ninety (90) days following the Participant’s death
or Disability, as applicable, in a lump sum, to the Participant or the person or persons designated in accordance with Section
7.1, as applicable.

 

6.5           DELAYS.
If the Employer reasonably anticipates that any payment scheduled to be made under this Plan would jeopardize the ability of the
Employer to continue as a going concern if paid as scheduled, then the Employer may defer that payment, provided the Employer
treats payments to all similarly situated Participants on a reasonably consistent basis. In addition, the Employer may, in its
discretion, delay a payment upon such other events and conditions as the IRS may prescribe, provided the Employer treats payments
to all similarly situated Participants on a reasonably consistent basis. Any amounts deferred pursuant to this Section shall continue
to be credited or debited on the books of the Employer with additional amounts in accordance with Article 4 above. The amounts
so deferred and amounts credited or debited thereon shall be distributed to the Participant or his or her Beneficiary (in the
event of the Participant’s death) at the earliest possible date on which the Employer reasonably anticipates that such violation
or material harm would be avoided or as otherwise prescribed by the IRS.

 

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6.6           PAYMENT
OF BENEFITS. Any payment made under this Article 6 shall be made no later than the later of (i) the last day of the calendar
year in which the payment event occurs, or, if later, the 15th day of the third calendar month following the date of the payment
event, or (ii) the last day of such other, extended period as the IRS may prescribe, such as in the case of disputed payments
or refusals to pay, provided the conditions of such extension have been satisfied.

 

ARTICLE
7

BENEFICIARIES; PARTICIPANT DATA

 

7.1           DESIGNATION
OF BENEFICIARIES. Each Participant from time to time may designate any person or persons (who may be named contingently or
successively) to receive such benefits as may be payable under the Plan upon or after the Participant’s death, and such
designation may be changed from time to time by the Participant by filing a new designation. Each designation will revoke all
prior designations by the same Participant, shall be in a form prescribed by the Employer, and will be effective only when filed
in writing with the Employer during the Participant’s lifetime.

 

In the absence of a valid
Beneficiary designation, or if at the time any benefit payment is due to a Beneficiary, there is no living Beneficiary validly
named by the Participant, the Employer shall pay any such benefit payment to the Participant’s spouse, if then living, but
otherwise to the Participant’s then living descendants, if any, per stirpes, but, if none, to the Participant’s estate.
In determining the existence or identity of anyone entitled to a death benefit payment, the Employer may rely conclusively upon
information supplied by the Participant’s personal representative, executor or administrator. If a question arises as to
the existence or identity of anyone entitled to receive a benefit payment as aforesaid, or if a dispute arises with respect to
any such payment, then, notwithstanding the foregoing, the Employer, in its sole discretion, may distribute or direct the Trustee
(if any) to distribute such payment to the Participant’s estate without liability for any tax or other consequences which
might flow therefrom, or may take such other action as the Employer deems to be appropriate.

 

7.2           INFORMATION
TO BE FURNISHED BY PARTICIPANTS AND BENEFICIARIES: INABILITY TO LOCATE PARTICIPANTS OR BENEFICIARIES. Any communication, statement
or notice addressed to a Participant or to a Beneficiary at his or her last post office address as shown on the Employer’s
records shall be binding on the Participant or Beneficiary for all purposes of the Plan. Neither the Trustee nor the Employer
shall be obliged to search for any Participant or Beneficiary beyond the sending of a registered letter to the last known address.
If the Employer notifies any Participant or Beneficiary that he or she is entitled to an amount under the Plan and the Participant
or Beneficiary fails to claim the amount or make his or her location known to the Employer within ninety (90) days of the latest
date upon which the payment could have been timely made in accordance with the terms of the Plan and Code section 409A (unless,
if not paid, the Participant or Beneficiary takes further enforcement measures within one hundred eighty (180) days after such
latest date) then, except as otherwise required by law, the amount payable shall be deemed to be a forfeiture. If a benefit payable
to an unlocated Participant or Beneficiary is subject to escheat pursuant to applicable State law, neither the Trustee nor the
Employer shall be liable to any person for any payment made in accordance with that law.

 

    	13

    	 

    

 

ARTICLE
8

ADMINISTRATION

 

8.1           ADMINISTRATIVE
AUTHORITY. Except as otherwise specifically provided herein, the Employer shall be the Plan administrator (the “Plan
Administrator”) and shall have the sole responsibility for and the sole control of the operation and administration of the
Plan, and shall have the power and authority to take all action and to make all decisions and interpretations which may be necessary
or appropriate in order to administer and operate the Plan, including, without limiting the generality of the foregoing, the power,
duty and responsibility to:

 

(a)          Resolve
and determine all disputes or questions arising under the Plan, and to remedy any ambiguities, inconsistencies or omissions in
the Plan.

 

(b)          Adopt
such rules of procedure and regulations as in its opinion may be necessary for the proper and efficient administration of the Plan
and as are consistent with the Plan.

 

(c)          Implement
the Plan in accordance with its terms and the rules and regulations adopted as above.

 

(d)          Make
determinations with respect to the eligibility of any Eligible Employee as a Participant and make determinations concerning the
crediting of Plan Accounts.

 

(e)          Appoint
any persons or firms, or otherwise act to secure specialized advice or assistance, as it deems necessary or desirable in connection
with the administration and operation of the Plan, and the Employer shall be entitled to rely conclusively upon, and shall be fully
protected in any action or omission taken by it in good faith reliance upon, the advice or opinion of such firms or persons. The
Employer shall have the power and authority to delegate from time to time by written instrument all or any part of its duties,
powers or responsibilities under the Plan, both ministerial and discretionary, as it deems appropriate, to any person or committee,
and in the same manner to revoke any such delegation of duties, powers or responsibilities, Any action of such person or committee
in the exercise of such delegated duties, powers or responsibilities shall have the same force and effect for all purposes under
this Plan as if such action had been taken by the Employer. Further, the Employer may authorize one or more persons to execute
any certificate or document on behalf of the Employer, in which event any person notified by the Employer of such authorization
shall be entitled to accept and conclusively rely upon any such certificate or document executed by such person as representing
action by the Employer until such notified person shall have been notified of the revocation of such authority.

 

8.2           LITIGATION.
Except as may be otherwise required by law, in any action or judicial proceeding affecting the Plan, no Participant or Beneficiary
shall be entitled to any notice or service of process, and any final judgment entered in such action shall be binding on all persons
interested in, or claiming under, the Plan.

 

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8.3           CLAIMS
PROCEDURE. This Section 8.3 is based on final regulations issued by the Department of Labor and published in the Federal Register
on November 21, 2000 and codified at section 2560.503-1 of the Department of Labor Regulations. If any provision of this Section
8.3 conflicts with the requirements of those regulations, the requirements of those regulations will prevail.

 

(a)          Initial
Claim. A Participant or Beneficiary who believes he or she is entitled to any Benefit (a “Claimant”) under this
Plan may file a claim with the Plan Administrator. The Plan Administrator will review the claim itself or appoint another individual
or entity to review the claim.

 

(i)          Benefit
Claims that do not Require a Determination of Disability. If the claim is for a benefit other than a disability benefit, the
Claimant will be notified within ninety (90) days after the claim is filed whether the claim is allowed or denied, unless the Claimant
receives written notice from the Plan Administrator or appointee of the Plan Administrator before the end of the ninety (90) day
period stating that special circumstances require an extension of the time for decision, such extension not to extend beyond the
day which is one hundred eighty (180) days after the day the claim is filed.

 

(ii)         Disability
Benefit Claims. In the case of a benefits claim that requires a determination by the Plan Administrator of a Participant’s
disability status, the Plan Administrator will notify the Claimant of the Plan’s adverse benefit determination within a reasonable
period of time, but not later than forty-five (45) days after receipt of the claim. If, due to matters beyond the control of the
Plan, the Plan Administrator needs additional time to process a claim, the Claimant will be notified, within forty-five (45) days
after the Plan Administrator receives the claim, of those circumstances and of when the Plan Administrator expects to make its
decision but not beyond seventy-five (75) days. If, prior to the end of the extension period, due to matters beyond the control
of the Plan, a decision cannot be rendered within that extension period, the period for making the determination may be extended
for up to one hundred five (105) days, provided that the Plan Administrator notifies the Claimant of the circumstances requiring
the extension and the date as of which the Plan expects to render a decision. The extension notice will specifically explain the
standards on which entitlement to a disability benefit is based, the unresolved issues that prevent a decision on the claim and
the additional information needed from the Claimant to resolve those issues, and the Claimant will be afforded at least forty-five
(45) days within which to provide the specified information.

 

(iii)        Manner
and Content of Denial of Initial Claims. If the Plan Administrator denies a claim, it must provide to the Claimant, in writing
or by electronic communication:

 

(A)         The
specific reasons for the denial;

 

(B)         A
reference to the Plan provision or insurance contract provision upon which the denial is based;

 

(C)         A
description of any additional information or material that the Claimant must provide in order to perfect the claim;

 

(D)         An
explanation of why such additional material or information is necessary;

 

    	15

    	 

    

 

(E)         Notice
that the Claimant has a right to request a review of the claim denial and information on the steps to be taken if the Claimant
wishes to request a review of the claim denial; and

 

(F)         A
statement of the participant’s right to bring a civil action under ERISA section 502(a) following a denial on review of the
initial denial.

 

In addition, in the case
of a denial of disability benefits on the basis of the Plan Administrator’s independent determination of the Participant’s
disability status, the Plan Administrator will provide a copy of any rule, guideline, protocol, or other similar criterion relied
upon in making the adverse determination (or a statement that the same will be provided upon request by the Claimant and without
charge).

 

(b)          Review
Procedures.

 

(i)          Benefit
Claims that do not Require a Determination of Disability. Except for claims requiring an independent determination of a Participant’s
disability status, a request for review of a denied claim must be made in writing to the Plan Administrator within sixty (60) days
after receiving notice of denial. The decision upon review will be made within sixty (60) days after the Plan Administrator’s
receipt of a request for review, unless special circumstances require an extension of time for processing, in which case a decision
will be rendered not later than one hundred twenty (120) days after receipt of a request for review. A notice of such an extension
must be provided to the Claimant within the initial sixty (60) day period and must explain the special circumstances and provide
an expected date of decision.

 

The reviewer will afford
the Claimant an opportunity to review and receive, without charge, all relevant documents, information and records and to submit
issues and comments in writing to the Plan Administrator. The reviewer will take into account all comments, documents, records
and other information submitted by the Claimant relating to the claim regardless of whether the information was submitted or considered
in the initial benefit determination.

 

(ii)         Disability
Benefit Claims. In addition to having the right to review documents and submit comments as described in (i) above, a Claimant
whose claim for disability benefits requires an independent determination by the Plan Administrator of the Participant’s
disability status has at least one hundred eighty (180) days following receipt of a notification of an adverse benefit determination
within which to request a review of the initial determination. In such cases, the review will meet the following requirements:

 

(A)         The
Plan will provide a review that does not afford deference to the initial adverse benefit determination and that is conducted by
an appropriate named fiduciary of the Plan who did not make the initial determination that is the subject of the appeal, nor is
a subordinate of the individual who made the determination.

 

(B)         The
appropriate named fiduciary of the Plan will consult with a health care professional who has appropriate training and experience
in the field of medicine involved in the medical judgment before making a decision on review of any adverse initial determination
based in whole or in part on a medical judgment. The professional engaged for purposes of a consultation in the preceding sentence
will not be an individual who was consulted in connection with the initial determination that is the subject of the appeal or the
subordinate of any such individual,

 

    	16

    	 

    

 

(C)         The
Plan will identify to the Claimant the medical or vocational experts whose advice was obtained on behalf of the Plan in connection
with the review, without regard to whether the advice was relied upon in making the benefit review determination.

 

(D)         The
decision on review will be made within forty-five (45) days after the Plan Administrator’s receipt of a request for review,
unless special circumstances require an extension of time for processing, in which case a decision will be rendered not later than
ninety (90) days after receipt of a request for review. A notice of such an extension must be provided to the Claimant within the
initial forty-five (45) day period and must explain the special circumstances and provide an expected date of decision.

 

(iii)        Manner
and Content of Notice of Decision on Review. Upon completion of its review of an adverse initial claim determination, the Plan
Administrator will give the Claimant, in writing or by electronic notification, a notice containing:

 

(A)         its
decision;

 

(B)         the
specific reasons for the decision;

 

(C)         the
relevant Plan provisions or insurance contract provisions on which its decision is based;

 

(D)         a
statement that the Claimant is entitled to receive, upon request and without charge, reasonable access to, and copies of, all documents,
records and other information in the Plan’s files which is relevant to the Claimant’s claim for benefits;

 

(E)         a
statement describing the Claimant’s right to bring an action for judicial review under ERISA section 502(a); and

 

(F)         if
an internal rule, guideline, protocol or other similar criterion was relied upon in making the adverse determination on review,
a statement that a copy of the rule, guideline, protocol or other similar criterion will be provided without charge to the Claimant
upon request.

 

(c)          Calculation
of Time Periods. For purposes of the time periods specified in this Section, the period of time during which a benefit determination
is required to be made begins at the time a claim is filed in accordance with the Plan procedures without regard to whether all
the information necessary to make a decision accompanies the claim. If a period of time is extended due to a Claimant’s failure
to submit all information necessary, the period for making the determination shall be tolled from the date the notification is
sent to the Claimant until the date the Claimant responds.

 

    	17

    	 

    

 

(d)          Failure
of Plan to Follow Procedures. If the Plan fails to follow the claims procedures required by this Section 8.3, a Claimant shall
be deemed to have exhausted the administrative remedies available under the Plan and shall be entitled to pursue any available
remedy under ERISA section 502(a) on the basis that the Plan has failed to provide a. reasonable claims procedure that would yield
a decision on the merits of the claim.

 

(e)          Failure
of Claimant to Follow Procedures. A Claimant’s compliance with the foregoing provisions of this Section 8.3 is a mandatory
prerequisite to the Claimant’s right to commence any legal action with respect to any claim for benefits under the Plan.

 

ARTICLE
9

AMENDMENT

 

9.1           RIGHT
TO AMEND. Subject to Code section 409A, the Employer, by action of its Board, shall have the right to amend the Plan, at any
time and with respect to any provisions hereof, and all parties hereto or claiming any interest under this Plan shall be bound
by such amendment; provided, however, that no such amendment shall deprive a Participant or a Beneficiary of a benefit amount
accrued prior to the date of the amendment.

 

9.2           AMENDMENTS
TO ENSURE PROPER CHARACTERIZATION OF PLAN. Notwithstanding the provisions of Section 9.1, the Plan may be amended by the Employer
at any time, retroactively if required, in the opinion of the Employer, in order to ensure that the Plan is characterized as “top-hat”
plan as described under ERISA sections 201(2), 301(a)(3), and 401(a)(1), to ensure that the Trust that may be established is characterized
as a grantor trust as described in Code sections 671 through 679, to conform the Plan to the provisions of Code section 409A and
to conform the Plan and Trust (if any) to the provisions and requirements of any applicable law (including ERISA and the Code).
No such amendment shall be considered prejudicial to any interest of a Participant or a Beneficiary in the Plan.

 

ARTICLE
10

SUSPENSION OR TERMINATION OF THE PLAN

 

10.1         EMPLOYER’S
RIGHT TO SUSPEND PLAN. The Employer reserves the right to suspend the operation of the Plan for a fixed or indeterminate period
of time, by action of the Board. In the event of a suspension of the Plan, during the period of the suspension, the Employer shall
continue all aspects of the Plan other than allowing further Compensation Deferral elections. Payments of distributions will continue
to be made during the period of the suspension in accordance with Articles 5 and 6.

 

10.2         AUTOMATIC
TERMINATION OF PLAN. The Plan, but not the Trust, automatically shall terminate upon the dissolution of the Employer, or upon
a merger into or consolidation with any other corporation or business organization if there is a failure by the surviving corporation
or business organization to adopt specifically and agree to continue the Plan. If the merger or consolidation qualifies as a change
in the ownership or effective control of a corporation, or a change in the ownership of a substantial portion of the assets of
a corporation as defined in Treas. Reg. 1.409A-3(i)(5), the Plan shall be liquidated upon such a termination in accordance with
Treas. Reg. 1.409A-3(j)(4)(ix)(B), If the Plan is not liquidated, payments of distributions will continue to be made following
the termination in accordance with Articles 5 and 6.

 

    	18

    	 

    

 

10.3         TERMINATION
AND LIQUIDATION OF THE PLAN. The Employer may terminate and liquidate the Plan in connection with a corporate dissolution
or approval by a bankruptcy court, certain change in control events, or the termination and liquidation of all plans that are
required to be aggregated, as described under Treas. Reg. 1.409A-3(j)(4)(ix). Upon the date of termination, the value of the vested
Accounts of all affected Participants and Beneficiaries shall be determined. After deduction of estimated expenses in liquidating
and paying Plan benefits, vested Accounts shall be paid to Participants and Beneficiaries in a lump sum distribution in accordance
with Treas. Reg. 1.409A-3(j)(4)(ix).

 

ARTICLE
11

THE TRUST

 

11.1         ESTABLISHMENT
OF TRUST. If elected in the Agreement, the Employer shall establish the Trust with the Trustee pursuant to such terms and
conditions as are set forth in the Trust agreement to be entered into between the Employer and the Trustee or the Employer shall
cause to be maintained one or more separate subaccounts in an existing Trust maintained with the Trustee with respect to one or
more other plans of the Employer, which subaccount or subaccounts represent Participants’ interests in the Plan. Any such
Trust shall be intended to be treated as a “grantor trust” under the Code and the establishment of the Trust or the
utilization of any existing Trust for Plan benefits, as applicable, shall not be intended to cause any Participant to realize
current income on amounts contributed thereto, and the Trust shall be so interpreted,

 

ARTICLE
12

MISCELLANEOUS

 

12.1         LIABILITY
OF EMPLOYER: LIMITATIONS ON LIABILITY OF EMPLOYER. Notwithstanding anything herein that may suggest otherwise, the Employer
shall be solely liable for the payment of any benefits due under this Plan. However, neither the establishment of the Plan nor
any modification thereof, nor the creation of any Account under the Plan, nor the payment of any benefits under the Plan shall
be construed as giving to any Participant or other person any legal or equitable right against the Employer or any officer or
employer thereof except as provided by law or by any Plan provision. The Employer shall not in any way guarantee any Participant’s
Account from loss or depreciation, whether caused by poor investment performance of a deemed investment or the inability to realize
upon an investment due to an insolvency affecting an investment vehicle or any other reason. In no event shall the Employer or
any successor, employee, officer, director or stockholder of the Employer, be liable to any person on account of any claim arising
by reason of the provisions of the Plan or of any instrument or instruments implementing its provisions, or for the failure of
any Participant, Beneficiary or other person to be entitled to any particular tax consequences with respect to the Plan, or any
credit or distribution under the Plan.

 

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12.2         CONSTRUCTION.
 If any provision of the Plan is held to be illegal or void, such illegality or invalidity shall not affect the remaining
provisions of the Plan, but shall be fully severable, and the Plan shall be construed and enforced as if said illegal or
invalid provision had never been inserted herein; except to the extent that Code Section 409A requires that this Section be
disregarded because it purports to nullify Plan terms that are not in compliance with Code section 409A. For all purposes of
the Plan, where the context admits, the singular shall include the plural, and the plural shall include the singular.
Headings of Articles and Sections herein are inserted only for convenience of reference and are not to be considered in the
construction of the Plan. The laws of the state of the Employer's principal place of business shall govern, control and
determine all questions of law arising with respect to the Plan and the interpretation and validity of its respective
provisions, except where those laws are preempted by the laws of the United States. Participation under the Plan will not
give any Participant the right to be retained in the service of the Employer, or any right or claim to any benefit under the
Plan unless such right or claim has specifically accrued under the Plan. The Plan is intended to be and at all times shall be
interpreted and administered so as to qualify as an unfunded deferred compensation plan, and no provision of the Plan shall
be interpreted so as to give any individual any right in any assets of the Employer which is greater than the rights of a
general unsecured creditor of the Employer.

 

12.3         SPENDTHRIFT
PROVISION. No amount payable to a Participant or a Beneficiary under the Plan will, except as otherwise specifically provided
by law, be subject in any manner to anticipation, alienation, attachment, garnishment, sale, transfer, assignment (either at law
or in equity), levy, execution, pledge, encumbrance, charge or any other legal or equitable process, and any attempt to do so
will be void; nor will any benefit be in any manner liable for or subject to the debts, contracts, liabilities, engagements or
torts of the person entitled thereto. Further, subject to Code section 409A, (i) the withholding of taxes from Plan benefit payments,
(ii) the recovery under the Plan of overpayments of benefits previously made to a Participant or Beneficiary, (iii) if applicable,
the transfer of benefit rights from the Plan to another plan, or (iv) the direct deposit of benefit payments to an account in
a banking institution (if not actually part of an arrangement constituting an assignment or alienation) shall not be construed
as an assignment or alienation.

 

12.4         DISTRIBUTION
TIMING. This Section shall take precedence over any other provision of the Plan or this Article 12 to the contrary. If the
timing of any distribution would result in any tax or other penalty (other than ordinarily payable Federal, state or local income
or payroll taxes), which tax or penalty can be avoided by payment of the distribution at a later time, then the distribution shall
be made on (or as soon as practicable after) the first date on which such distribution can be made without such tax or penalty;
except to the extent that Code section 409A requires that this Section 12.4 be disregarded because it purports to nullify Plan
terms that are not in compliance with Code section 409A.

 

12.5         AGGREGATION
OF EMPLOYERS. If the Employer is a member of a controlled group of corporations or a group of trades or business under common
control (as described in Code Section 414(b) or (c), but substituting a 50% ownership level for the 80% level set forth in those
Code Sections), all members of the group shall be treated as a single Employer for purposes of whether there has occurred a Separation
from Service and for any other purposes under the Plan as Code section 409A shall require. For purposes of Article 10, in the
case of a change in control event, the entities to be treated as a single Employer shall be determined immediately following the
change in control event.

 

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12.6         AGGREGATION
OF PLANS. If the Employer offers other account balance deferred compensation plans in addition to the Plan, those plans together
with the Plan shall be treated as a single plan to the extent required under Code section 409A for purposes of determining whether
an Eligible Employee may make a deferral election pursuant to Section 3.1 within thirty (30) days of becoming eligible to participate
in the Plan, for purposes of cashing out de minimis amounts pursuant to Section 6.3 and for any other purposes under the Plan
as Code section 409A shall require.

 

12.7         USERRA.
Notwithstanding anything herein to the contrary, any distribution election provided to a Participant as necessary to satisfy the
requirements of the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended, shall be permissible hereunder.

 

12.8         TAX
WITHHOLDING. All distributions under the Plan are subject to any applicable tax withholding, as determined by the Employer
in its discretion. The Employer shall have the right to deduct from a Participant's Compensation that is not being deferred under
this Plan any federal, state, local or employment taxes which it deems are required by law to be withheld with respect to any
Compensation Deferrals, vested Employer Contribution Credits or Plan distributions. If necessary, prior to the date a Participant's
Compensation Deferral election becomes irrevocable pursuant to Section 3.1, the Employer may reduce the Participant's Compensation
Deferrals in order to comply with this Section.

 

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