Document:

Exhibit

 

EMPLOYMENT AGREEMENT

This Employment Agreement (this “Agreement”) is made by and between Fluent, Inc. (the “Company”) and the individual identified on Exhibit A attached hereto (the “Employee”) effective as of the Effective Date.

RECITALS

WHEREAS, the Company’s wholly-owned subsidiary, Fluent, LLC, and its subsidiaries engage in the business of performance-based digital advertising and marketing services and solutions to advertisers, publishers, and advertising agencies using proprietary and third-party platforms; and

WHEREAS, from and after the date hereof, the Company desires to retain the services of the Employee pursuant to the terms and conditions set forth herein and the Employee desires to be employed by the Company on such terms and conditions.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Employee agree as follows:

AGREEMENT

1.Term of Agreement. This Agreement will be effective on the Effective Date. The initial term of the Executive’s employment shall be for the period set forth on Exhibit A attached hereto (the “Initial Term”); provided that, at the end of the Initial Term, the term of this Agreement shall automatically renew for successive one (1) year terms (each, a “Renewal Term” and collectively with the Initial Term, the “Term”), unless either party provides written notice to the other of a non-renewal of the Term no less than sixty (60) days prior to the commencement of a Renewal Term.  The Employee’s employment shall terminate upon a non-renewal of the Term.

2.Position and Duties. During the Term, the Employee shall serve the Company in the position and perform the duties as are set forth on Exhibit A attached hereto.

3.Full Business Time and Attention. Except as otherwise set forth in this Agreement, the Employee shall (a) devote all of his business time, attention, skill and energy to the duties and responsibilities of Employee’s position (allowing for management of his personal affairs that do not interfere with his duties and responsibilities to the Company); (b) service the Company faithfully, diligently and to the best of Employee’s ability; (c) use Employee’s best reasonable efforts to promote the success of the Company; and (d) cooperate fully with the Company’s Board of Directors (the “Board”) in the advancement of the Company’s best interests to assure full and efficient performance of Employee’s duties hereunder.

4.Compensation and Benefits. During the Term:

a.    Base Salary. The Employee shall be paid the annual base salary set forth on Exhibit A attached hereto, or such greater amount as may be determined by the Company from time to time 

in its sole discretion, payable in equal periodic installments according to the Company’s customary payroll practices, but not less frequently than monthly (the “Base Salary”). The Base Salary may be increased but not decreased without the Employee’s written consent.

b.    Benefits. The Employee shall, during the Term, be eligible to participate, commensurate with the Employee’s position, in such retirement, life insurance, hospitalization, major medical, fringe and other employee benefit plans that the Company generally maintains for its full-time employees (collectively, the “Benefits”). Notwithstanding the foregoing, the Company may discontinue or terminate at any time any employee benefit plan, policy or program now existing or hereafter adopted and will not be required to compensate the Employee for such discontinuance or termination; provided, however, that the Company shall be required to offer to the Employee any rights or benefits extended to other employees in the event of termination of such plans or benefits, including, but not limited to coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”).

c.    Bonus. During the Term, the Employee shall have an annual target cash bonus opportunity of no less than forty (40%) of one (1) year’s Base Salary (the “Bonus”), based on the achievement of Company and individual performance objectives to be determined in good faith by the Board in advance and in consultation with the Employee.

d.    Clawback. Notwithstanding any other provisions in this Agreement to the contrary, any incentive-based compensation, or any other compensation, paid to the Employee pursuant to this Agreement or any other agreement or arrangement with the Company which is subject to recovery under any law, government regulation, or stock exchange listing requirement, will be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation, or stock exchange listing requirement (or any policy adopted by the Company pursuant to any such law, government regulation or stock exchange listing requirement).

e.    Reimbursement. If the Company is required to restate its financial information due to material non-compliance, as a result of misconduct, with financial reporting requirements under federal securities laws, the Employee must reimburse the Company for any bonuses paid to and profits received by Employee from sale of company securities during the twelve (12) months after such financial information was initially reported.

f.    Equity Incentive Compensation. The Employee shall be entitled to participate, commensurate with the Employee’s position, in the Fluent, Inc. 2018 Stock Incentive Plan (together with any successor plan, the “Incentive Plan”), as further described on Exhibit A attached hereto.

g.    Expenses. The Company shall pay on behalf of the Employee (or reimburse Employee for) reasonable documented expenses incurred by Employee in the performance of Employee’s duties under this Agreement and, in accordance with the Company’s existing policies and procedures pertaining to the reimbursement of expenses to employees in general.  In addition, the Company shall promptly pay (or reimburse the Employee for) the documented attorney fees that he incurs in connection with entering into this Agreement, in an amount not to exceed $7,500.  

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Notwithstanding anything herein to the contrary or otherwise, except to the extent any expense or reimbursement provided pursuant to this Section 4.e does not constitute a “deferral of compensation” within the meaning of Section 409A of the Code (as defined below): (i) the amount of expenses eligible for reimbursement provided to the Employee during any calendar year will not affect the amount of expenses eligible for reimbursement or in-kind benefits provided to the Employee in any other calendar year, (ii) the reimbursements for expenses for which the Employee is entitled to be reimbursed shall be made on or before the last day of the calendar year following the calendar year in which the applicable expense is incurred, (iii) the right to payment or reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit and (iv) the reimbursements shall be made pursuant to objectively determinable and nondiscretionary Company policies and procedures regarding such reimbursement of expenses.

		
	5.
	Termination of Employment.

a.    By the Company. The Company may terminate the Term and Employee’s employment, for the following reasons:

		
	i.
	Death. The Term shall terminate immediately upon the death of the Employee.

		
	ii. 
	Disability. The Company may terminate the Term and the Employee’s employment with the Company immediately upon a determination of Disability. For purposes of this Agreement the Employee has a “Disability” if, for physical or mental reasons, the Employee is unable to perform the essential duties required of the Employee under this Agreement, even with a reasonable accommodation, for a period of six (6) consecutive months or a period of one-hundred eighty (180) days during any twelve (12) month period, as determined by an independent medical professional mutually acceptable to the parties. The Employee shall submit to a reasonable number of examinations by the independent medical professional making the determination of Disability.

     
		
	iii. 
	For Cause. The Company may terminate the Term and the Employee’s employment with the Company at any time for Cause.  For purposes of this Agreement and the Incentive Plan, “Cause” shall mean: (1) Employee’s conviction of or plea of guilty or nolo contendere to a felony involving moral turpitude or which results in material harm to the Company, (2) Employee’s fraud against the Company or any breach of fiduciary duty owed to the Company, (3) Employee’s theft, misappropriation or embezzlement of the assets or funds of the Company or any customer, or engagement in misconduct, that is materially injurious to the Company, (4) Employee’s gross negligence or willful misconduct in the performance of Employee’s duties under this Agreement, and (5) Employee’s material breach of this Agreement, including any material violation of any of the restrictions set forth in Section 7, or any Company policies, including the Company’s Code of Ethics and Sexual Harassment Policy, which breach or violation, if capable of being cured, is not cured to the Board’s reasonable satisfaction within ten (10) business days after written notice thereof to the Employee.

		
	iv. 
	Without Cause. The Company may terminate the Term and the Employee’s employment at any time without Cause by providing the Employee with sixty (60) days’ prior written notice; provided, that during such sixty (60) day notice period, the Company may, in its discretion, place restrictions upon the Employee’s contact with the workplace, customers and other business-related parties.

b.    By Employee. The Employee may terminate the Term and his employment with the Company for any of the following reasons:

		
	i.
	For Any Reason. Upon sixty (60) days’ prior written notice delivered at any time, the Employee may terminate the Term and his employment hereunder, for any reason or no reason at all.

		
	ii. 
	For Good Reason. The Employee may terminate the Term and Employee’s employment hereunder for “Good Reason” (as hereinafter defined). For purposes of this Agreement and the Incentive Plan, “Good Reason” shall mean any one of the conditions set forth below, so long as (1) Employee has provided written notice to the Company of the existence of such condition within sixty (60) days of his initial knowledge of its existence, (2) the Company has not remedied the condition caused by the occurrence within thirty (30) days of such notice, to the extent such condition is capable of being cured, and (3) the Employee gives a notice of his termination of employment within thirty (30) days after the end of such thirty (30) day period to remedy such condition. The following conditions will constitute “Good Reason”: (A) a material diminution in the Employee’s duties, responsibilities or authority; (B) a material breach by the Company of this Agreement or any other material agreement with the Company (e.g., an equity award); (C) the Company materially reduces the Employee’s Base Salary or incentive opportunities, as in effect from time to time, without the Employee’s prior written consent; (D) the Company requests that the Employee participate in an unlawful act; or (E) a change in the geographic location in which the Employee must provide services of more than 25 miles from Manhattan.

		
	c.
	Compensation Upon Termination.

		
	i.
	Death. Within thirty (30) days following the termination of the Term due to the Employee’s death, the Company shall pay to the Employee’s estate the Employee’s Base Salary, any Bonus for the year prior to the year in which the Employee’s death occurs (to the extent unpaid) and Benefits accrued 

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through the date of the Employee’s death. Upon payment to the Employee of the foregoing amounts, the Company shall have no further obligation or liability to the Employee for duplicative payments or benefits under any other agreement, except as required by applicable law.

		
	ii. 
	Disability. Within thirty (30) days following the termination of the Term due to the Employee’s Disability, the Company shall pay to the Employee the Employee’s Base Salary, any Bonus for the year prior to the year in which the Employee’s termination due to Disability occurs (to the extent unpaid) and Benefits accrued through the date of the Employee’s termination. Upon payment to the Employee of the foregoing amounts, the Company shall have no further obligation or liability to or for the benefit of the Employee for duplicative payments or benefits under any other agreement, except as required by applicable law.

		
	iii. 
	For Cause. Upon termination of the Term for Cause, the Company shall pay to the Employee the Employee’s Base Salary and Benefits accrued through the date of the Employee’s termination. Upon payment to the Employee of the foregoing amounts, the Company shall have no further obligation or liability to or for the benefit of the Employee for duplicative payments or benefits under any other agreement, except as required by applicable law.

		
	iv. 
	Without Cause; Non-Renewal of Term by the Company. In the event that either (x) the Company terminates the Term and the Employee’s employment without Cause or (y) the Term expires after a notice of non-renewal is delivered by the Company (as described in Section 1), the Company shall pay or provide to the Employee: (1) the greater of (A) the Employee’s Base Salary for the remainder of the Term and (B) twelve (12) months’ Base Salary; (2) the Bonus for the year prior to the year in which the termination occurs, to the extent unpaid; (3) the Bonus for the year in which the termination occurs, based on actual performance and prorated based on the number of days in such year prior to the date of termination; (4) the Employee’s Base Salary and Benefits accrued through the date of the Employee’s termination; and (5) the additional vesting of Incentive Plan awards described in Exhibit A.  Items (1) and (2) above shall be paid in accordance with the Company’s payroll practices in effect from time to time, but not less frequently than monthly, and Item (3) above shall be paid in the calendar year following the year with respect to which the Bonus relates, at the same time that such bonuses are paid to other Company executives; provided, however, the Employee is not in material violation of any of the restrictions set forth in Section 7, which breach or violation, if capable of being cured, is not cured to the Board’s reasonable satisfaction within ten (10) business days after written notice thereof to the Employee.  Upon payment to the Employee of the foregoing amounts, the Company shall have no further obligation or liability to or for the benefit of the Employee for duplicative payments or benefits under any other agreement, except as required by applicable law.

		
	v. 
	For Any Reason. In the event the Employee terminates his employment with the Company during the Term for any reason other than Good Reason, the Company shall pay to the Employee the Employee’s Base Salary, any Bonus for the year prior to the year in which the Employee’s termination occurs (to the extent unpaid) and Benefits accrued through the date of the Employee’s termination. Upon payment to the Employee of the foregoing amounts, the Company shall have no further obligation or liability to or for the benefit of the Employee for duplicative payments or benefits under any other agreement, except as required by applicable law. 

		
	vi. 
	For Good Reason. If the Employee terminates the Term and the Employee’s employment for Good Reason, the Company shall pay or provide to the Employee: (1) the greater of (A) the Employee’s Base Salary for the remainder of the Term and (B) twelve (12) months’ Base Salary; (2) the Bonus for the year prior to the year in which the termination occurs, to the extent unpaid; (3) the Bonus for the year in which the termination occurs, based on actual performance and prorated based on the number of days in such year prior to the date of termination; (4) the Employee’s Base Salary and Benefits accrued through the date of termination; and (5) the additional vesting of Incentive Plan awards described in Exhibit A. Items (1) and (2) above shall be paid in accordance with the Company’s payroll practices in effect from time to time, but not less frequently than monthly, and Item (3) above shall be paid in the calendar year following the year with respect to which the Bonus relates, at the same time that such bonuses are paid to other Company executives; provided, however, the Employee is not in material violation of any of the restrictions set forth in Section 7, which breach or violation, if capable of being cured, is not cured to the Board’s reasonable satisfaction within ten (10) business days after written notice thereof to the Employee. Upon payment to the Employee of the foregoing amounts, the Company shall have no duplicative obligation or liability to or for the benefit of the Employee under any other agreement, except as required by applicable law.

		
	vii.
	Release. As an additional prerequisite for receipt of the severance benefits described in Section 5(a)(iv) and (vi) above (in excess of Base Salary and Benefits accrued through the date of termination), the Employee must execute, deliver to the Company, and not revoke (to the extent the Employee is allowed to do so) a Release (as defined below) within forty-five (45) days of the date of the Employee’s termination of employment (the “Release Period”). “Release” shall mean a release of all claims that the Employee has or may have against the Company, its board of directors, any of its subsidiaries or affiliates, or any of their employees, directors, officers, employees, agents, plan sponsors, administrators, successors, fiduciaries, or attorneys, arising out of the Employee’s employment with, and termination of employment from, the Company, except for any claims to enforce the terms of this Agreement and the then-applicable terms of any other written agreement, plan or arrangement of the Company or any of its subsidiaries or affiliates. The Release shall not impose any additional restrictions on the Executive’s post-employment activities, shall be in a form that is otherwise reasonably acceptable to the Company or the Board, and shall not be required if it is not delivered by the Company to the Employee within ten (10) business days of the date of Employee’s termination. Notwithstanding anything to the contrary in this Agreement, if the Release Period straddles two calendar years, no severance benefits shall be paid to the Employee until the second calendar year (with any missed severance payments being paid to the Employee on the first payroll date occurring in the second calendar year).

6.Indemnification and Insurance. 

a.Indemnification.  The Employee shall be indemnified (and advanced expenses) to the fullest extent permitted or authorized by the Certificate of Incorporation or Bylaws of the Company. 

b.D&O Insurance.  A directors’ and officers’ liability insurance policy (or policies) shall be kept in place by the Company, during the Term and thereafter until the later of (x) the sixth anniversary of the date of the Employee’s termination of employment and (y) the date on which all claims against the Employee that would otherwise be covered by such policy (or policies) become fully time-barred, providing coverage to the Employee that is no less favorable to him in any respect (including, without limitation, with respect to scope, exclusions, amounts and deductibles) than the coverage then being provided to any other present or former senior executive or director of the Company.

7.Restrictive Covenants.

a.    Confidentiality. The Employee acknowledges that the Confidential Information (as defined below) is a valuable, special, sensitive and unique asset of the business of the Company, the continued confidentiality of which is essential to the continuation of its business, and the improper disclosure or use of which could severely and irreparably damage the Company. The Employee agrees, for and on behalf of himself, the Employee’s legal representatives, and the Employee’s successors and assigns that all Confidential Information is the property of the Company (and not of the Employee). The Employee further agrees that during the Term and at all times thereafter, the Employee (i) will continue to keep all Confidential Information strictly confidential and not disclose the Confidential Information to any other person or entity and (ii) shall not, directly or indirectly, disclose, communicate or divulge to any person, or use or cause or authorize any person to use any Confidential Information, except as may be used in the performance of the Employee’s duties hereunder in compliance with this Agreement and in the best interests of the 

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Company. “Confidential Information” means all information, data and items relating to the Company (or any of its customers) which is valuable, confidential or proprietary, including, without limitation, information relating to the Company’s software, software code, accounts, receivables, customers and customer lists and data, prospective customers and prospective customer lists and data, Work Product, vendors and vendor lists and data, business methods and procedures, pricing techniques, business leads, budgets, memoranda, correspondence, designs, plans, schematics, patents, copyrights, equipment, tools, works of authorship, reports, records, processes, pricing, costs, products, services, margins, systems, software, service data, inventions, analyses, plans, intellectual property, trade secrets, manuals, training materials and methods, sales and marketing materials and compilations of and other items derived (in whole or in part) from the foregoing. Confidential Information may be in either paper, electronic or computer readable form. Notwithstanding the foregoing, “Confidential Information” shall not include information that: (i) becomes publicly known without breach of the Employee’s obligations under this Section 7(a), or (ii) is required to be disclosed by law or by court order or government order; provided, however, that if the Employee is required to disclose any Confidential Information pursuant to any law, court order or government order, (x) the Employee shall promptly notify the Company of any such requirement so that the Company may seek an appropriate protective order or waive compliance with the provisions of this Agreement, (y) the Employee shall reasonably cooperate with the Company to obtain such a protective order at the Company’s cost and expense, and (z) if such order is not obtained, or the Company waives compliance with the provisions of this Section 7(a), the Employee shall disclose only that portion of the Confidential Information which the Employee is advised by counsel that the Employee is legally required to so disclose. The Employee will notify the Company promptly and in writing of any circumstances of which the Employee has knowledge relating to any unauthorized possession or use of any Confidential Information by any Person.

b.    Immunity Notice. The Employee shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that: (i) is made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and made solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Should the Employee file a lawsuit against the Company for retaliation for reporting a suspected violation of law, the Employee may disclose the trade secret to the Employee’s attorney and use the trade secret information in the court proceeding, if the Employee: (x) files any document containing the trade secret under seal, and (y) does not disclose the trade secret, except pursuant to court order.

c.    Return of Company Property. The Employee will deliver to the Company at the termination of the Employee’s employment with the Company, or at any other time the Company may request, all equipment, files, property, memoranda, notes, plans, records, reports, computer tapes, printouts, Confidential Information, Work Product, software, documents and data (and all electronic, paper or other copies thereof) belonging to the Company, which the Employee may then possess or have under the Employee’s control. However, nothing in this Agreement or elsewhere shall prohibit the Employee from retaining (and using appropriately) copies of documents relating to his personal rights and obligations.

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d.    Intellectual Property Rights. The Employee acknowledges and agrees that all inventions, technology, processes, innovations, ideas, improvements, developments, methods, designs, analyses, trademarks, service marks, and other indicia of origin, writings, audiovisual works, concepts, drawings, reports and all similar, related, or derivative information or works (whether or not patentable or subject to copyright), including but not limited to all patents, copyrights, copyright registrations, trademarks, and trademark registrations in and to any of the foregoing, along with the right to practice, employ, exploit, use, develop, reproduce, copy, distribute copies, publish, license, or create works derivative of any of the foregoing, and the right to choose not to do or permit any of the aforementioned actions, which relate to the Company of its actual or anticipated business, research and development or existing or future products or services and which are conceived, developed or made by the Employee while employed by the Company (collectively, the “Work Product”) belong to the Company. All Work Product created by the Employee while employed by the Company (whether or not on the premises) will be considered “work made for hire,” and as such, the Company is the sole owner of all rights, title, and interests therein. All other rights to any new Work Product, including but not limited to all of the Employee’s rights to any copyrights or copyright registrations related thereto, are hereby conveyed, assigned and transferred to the Company. The Employee will promptly disclose and deliver such Work Product to the Company and, at the Company’s expense, perform all actions reasonably requested by the Company (whether during or after the Term) to establish, confirm and protect such ownership (including, without limitation, the execution of assignments, copyright registrations, consents, licenses, powers of attorney and other instruments).

e.    Non-Competition. While employed by the Company and for a period of one (1) year thereafter (the “Restricted Period”), the Employee shall not, directly or indirectly, enter into the employment of, render any services to, engage, manage, operate, join, or own, or otherwise offer other assistance to or participate in, as an officer, director, employee, principal, agent, proprietor, representative, stockholder, partner, associate, consultant, sole proprietor or otherwise, any person that, directly or indirectly, is engaged in the Business anywhere in the Restricted Area (as hereinafter defined). Notwithstanding the foregoing, the Employee may own up to two percent (2%) of the outstanding stock of a publicly held corporation which constitutes or is affiliated with any entity that is engaged in the Business so long as the Employee is not an officer, director, employee or consultant or otherwise maintains voting control, whether by contract or otherwise, of such entity, and Employee may be a passive owner of shares of common stock of the Company or securities convertible into or exercisable for shares of common stock of the Company. For purposes of this Section 7, “Restricted Area” means any U.S. state or territory in which the Company, Fluent, LLC or any of their subsidiaries has conducted or proposes to conduct business or offers any services, or any other jurisdiction in or to which the Company, Fluent, LLC or any of their subsidiaries has conducted or proposes to conduct any business or offers any services. For purposes of this Section 7, “Business” means the business of the Company, Fluent, LLC and its subsidiaries as described in the recitals to this Agreement, the actual business of the Company, Fluent, LLC and its subsidiaries as conducted as of the date of termination, and any anticipated business considered by the Board towards which the Company, Fluent, LLC or any subsidiaries thereof has taken material steps or incurred material expenditures in furtherance thereof prior to the termination date.

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f.    Non-Solicitation. During the Restricted Period, the Employee shall not, directly or indirectly, whether for the Employee’s own account or for the account of any other person, (i) attempt to hire, or hire, any person who is employed by the Company, Fluent, LLC or any of their subsidiaries, or solicit or attempt to solicit any such employee to terminate employment with the Company, Fluent, LLC or any of their subsidiaries, or (ii) endeavor to entice away from the Company, or otherwise interfere with (whether by reason of cancellation, withdrawal, modification of relationship or otherwise), any actual or prospective relationship of the Company, Fluent, LLC or any of their subsidiaries, with respect to any person (x) who is employed by or otherwise engaged to perform services for the Company, Fluent, LLC or any of their subsidiaries, including, but not limited to, any independent contractor or representative or (y) who is an actual or bona fide prospective licensee, landlord, customer, supplier, or client of the Company, Fluent, LLC or any of their subsidiaries (or other person with which the Company, Fluent, LLC or any of their subsidiaries had an actual or prospective bona fide business relationship).  However, the Employee shall not be deemed to be in violation of this Section 7 if he hires an individual who responds to a general, non-targeted advertisement of employment.  

g.    Non-Disparagement. The Employee agrees that the Employee will not make or publish any statement or communication which is false, negative, unflattering or disparaging with respect to the Company, Fluent, LLC or any of their respective affiliates and/or any of their respective direct or indirect shareholders, officers, directors, members, managers, employees or agents. The foregoing shall not be violated by (i) statements as required in response to legal proceedings or governmental investigations (including, without limitation, depositions in connection with such proceedings), (ii) statements made in the context of prosecuting or defending any legal dispute (whether or not litigation has commenced) as between the Employee on the one hand and the Company on the other, and (iii) truthful information that is required to be disclosed by applicable law. 

h.    Non-Interference with Employee’s Agency Rights. The Employee understands that the terms of this Agreement, including the provisions regarding confidentiality and non-disparagement, are not intended to interfere with or waive any right (if any such right otherwise existed) to file a charge, cooperate, testify or participate in an investigation with any appropriate federal or state governmental agency, including the ability to communicate with such agency, such as, but not limited to, the Securities and Exchange Commission (“SEC”), the Financial Industry Regulatory Authority (“FINRA”), any other securities regulatory agency or authority, or any other self-regulatory organization, or any other federal or state regulatory authority (“Government Agencies”), whether in connection with reporting a possible securities law violation or otherwise, without notice to Company. This Agreement further does not limit the Employee’s right to receive a bounty or reward for information provided to any such Government Agencies, to the SEC staff, or to any other securities regulatory agency or authority.

i.    Rationale for and Scope of Covenants. If any of the covenants contained in this Section 7 are held to be invalid or unenforceable due to the unreasonableness of the time, geographic area, or range of activities covered by such covenants, such covenants shall nevertheless be enforced to the maximum extent permitted by law and effective for such period of time, over such geographical area, or for such range of activities as may be determined to be reasonable by a court of competent 

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jurisdiction and the parties hereby consent and agree that the scope of such covenants may be judicially modified, accordingly, in any proceeding brought to enforce such covenants. The Employee agrees that the Employee’s services hereunder are of a special, unique, extraordinary and intellectual character and the Employee’s position with the Company places the Employee in a position of confidence and trust with the customers, suppliers and employees of the Company. The Employee and the Company agree that, in the course of employment hereunder, the Employee has and will continue to develop a personal relationship with the Company’s customers, and a knowledge of these customers’ affairs and requirements as well as confidential and proprietary information developed by the Company after the date of this Agreement. The Employee agrees that it is reasonable and necessary for the protection of the goodwill, confidential and proprietary information, and legitimate business interests of the Company that the Employee make the covenants contained herein, that the covenants are a material inducement for the Company to employ or continue to employ the Employee and to enter into this Agreement. For the avoidance of doubt, for purposes of this Section 7, the term “Company” includes Fluent, LLC and each of its other direct and indirect subsidiaries of the Company.

j.    Remedies.

		
	i.
	The Employee consents and agrees that if the Employee violates any covenants contained in this Section 7, the Company would sustain irreparable harm and, therefore, in addition to any other remedies which may be available to it, the Company shall be entitled to seek an injunction restraining the Employee from committing or continuing any such violation of this Section 7. Nothing in this Agreement shall be construed as prohibiting the Company or the Employee from pursuing any other remedies including, without limitation, recovery of damages. The Employee acknowledges that Company and each of its direct and indirect subsidiaries is an express third-party beneficiary of this Agreement and that it may enforce these rights as a third-party beneficiary. The Company has fully performed all obligations entitling it to the restrictive covenants, and the restrictive covenants therefore are not executory or otherwise subject to rejection and are enforceable under the Bankruptcy Code.  However, if the Company or its subsidiaries is in material breach of any obligation to the Employee under this Agreement or any other material written agreement to which the Employee is a party, the Restricted Period shall terminate if such breach is not cured to the Employee’s reasonable satisfaction within ten (10) days after the Employee provides the Company with written notice of such breach. In the event of the breach by the Employee of any of the provisions of this Section 7, the Company shall be entitled, in addition to all other available rights and remedies, to terminate the Employee’s employment status hereunder.  The Company may assign the restrictive covenants set forth in this Section 7 in connection with the acquisition of all or substantially all of the assets of the Company and its subsidiaries, and any such assignee or successor shall be entitled to enforce the rights and remedies set forth in this Section 7. The Employee acknowledges and agrees that the Restricted Period for a violated provision 

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of this Section 7 shall be tolled on a day for day basis for all periods in which the Employee is found to have violated such provision so that the Company receives the full benefit of the Restricted Period to which the Employee has agreed.

		
	ii.
	In addition, and without limitation to the foregoing, except as required by law, if (A) the Company files a civil action against the Employee based on the Employee’s alleged breach of the Employee’s obligations under Section 7 hereof, and (B) a court of competent jurisdiction issues a judgment that the Employee has breached any of such obligations and has issued injunctive relief, then the Employee shall promptly repay to the Company any such severance payments the Employee previously received pursuant to Section 5(c) in excess of the Employee’s Base Salary and Benefits accrued through the date of the Employee’s termination, and the Company will have no obligation to pay any of such excess amounts that remain payable by the Company under Section 5.c.

8.Notice. Any notice required or desired to be given under this Agreement shall be in writing and shall be addressed as follows:

If to Company:     Fluent, Inc.
33 Whitehall Street
15th Floor
New York, NY 10004
Attn: Daniel J Barsky, General Counsel

If to Employee:     Fluent, LLC
33 Whitehall Street
15th Floor
New York, NY 10004
Attn: Alexander E. Mandel

Notice shall be deemed given on the date it is deposited in the United States mail, first class postage prepaid and addressed in accordance with the foregoing, or the date otherwise delivered in person, whichever is earlier. The address to which any notice must be sent may be changed by providing written notice in accordance with this Section 8.

9.General Provisions.

a.    Amendments. This Agreement (together with its Exhibits) contains the entire agreement between the parties regarding the subject matter hereof. No agreements or representations, verbal or otherwise, express or implied, with respect to the subject matter of this Agreement have been made by either party which are not set forth expressly in this Agreement. This Agreement may only be altered or amended by the express mutual written consent of the Company and the Employee.  In the event of any conflict between the provisions of this Agreement 

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and the provisions of any Incentive Plan agreement, the provisions of this Agreement shall control to the extent they are more favorable to the Employee.

b.    Applicable Law. This Agreement shall be governed in accordance with the laws of the State of New York regardless of the conflict of laws rules or statutes of any jurisdiction.

c.    Successors and Assigns. This Agreement will be binding upon the Employee’s heirs, executors, administrators or other legal representatives or assigns. This Agreement will not be assignable by the Employee, but shall be assigned by the Company in connection with the sale, lease, license, assignment, merger, consolidation, share exchange, liquidation, transfer, conveyance or other disposition (whether direct or indirect) of all or substantially all of its business and/or assets in one or a series of related transactions (individually and/or collectively, a “Fundamental Transaction”). The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this Employment Agreement. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Employment Agreement referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Employment Agreement with the same effect as if such Successor Entity had been named as the Company herein. 

d.    No Waiver. The failure of any party to this Agreement to enforce at any time any of the provisions of this Agreement shall in no way be construed to be a waiver of any such provision, nor in any way to affect the validity of this Agreement or any part thereof or the right of any party under this Agreement to enforce each and every such provision. No waiver of any breach of this Agreement shall be effective unless it is expressly acknowledged in a writing executed by the party against whom it is sought to be enforced, and any such waiver shall not constitute a waiver of any other or subsequent breach.

e.    Section Headings, Construction. The headings used in this Agreement are provided for convenience only and shall not affect the construction or interpretation of this Agreement. All words used in this Agreement shall be construed to be of such gender or number as the circumstances require. In no event shall the terms or provisions hereof be construed against any party on the basis that such party or counsel for such party drafted this Agreement or the attachments hereto.

f.    Severability. If any provision of this Agreement is held to be invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement shall remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree shall remain in full force and effect to the extent not held invalid or unenforceable.

g.    Survival. The provisions of Sections 5, 6, 7, and 9 of this Agreement shall survive the termination of the Term for any reason. 

10

h.    Counterparts. This Agreement may be executed in one or more counterparts each of which shall be deemed to be an original of this Agreement and all of which, when taken together, shall be deemed to constitute one and the same agreement.  Signatures delivered electronically (including, without limitation, by portable document format attached to an email) shall be effective for all purposes.

i.    Opportunity to Review. The Employee represents that the Employee has been provided with an opportunity to review the terms of the Agreement with legal counsel.

j.    Compliance with Code Section 409A. This Agreement is intended, and shall be construed and interpreted, to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) or an exemption therefrom. For purposes of Code Section 409A, each payment of compensation under this Agreement shall be treated as a separate payment of compensation. Any amounts payable solely on account of an involuntary termination shall be excludible from the requirements of Code Section 409A, either as separation pay or as short-term deferrals to the maximum possible extent. Any reference to the Employee’s “termination,” “termination of employment” or “termination of the Term” shall mean the Employee’s “separation from service” as defined in Code Section 409A from the Company and all entities with whom the Company would be treated as a single employer for purposes of Code Section 409A. Nothing herein shall be construed as a guarantee of any particular tax treatment to Employee and the Company shall have no liability to the Employee with respect to any penalties that might be imposed on the Employee by Code Section 409A for any failure of this Agreement to comply with Code Section 409A. In the event that the Employee is a “specified employee” (as described in Code Section 409A), and any payment or benefit payable pursuant to this Agreement constitutes deferred compensation under Code Section 409A, then no such payment or benefit shall be made before the date that is six months after the Employee’s “separation from service” (as described in Code Section 409A) (or, if earlier, the date of the Employee’s death). Any payment or benefit delayed by reason of the prior sentence shall be paid out or provided in a single lump sum at the end of such required delay period in order to catch up to the original payment schedule. 

k.    Attorney’s Fees. In any action or proceeding (including any appeals) brought to enforce any provision of this Agreement, each party shall be responsible for its own attorneys’ fees and costs; provided, however, that the Company shall reimburse the Employee for his attorneys’ fees and costs incurred in such action or proceeding, to the extent that the Employee is finally determined to have substantially prevailed on the claims at issue.

11

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
as of the day and year first written above.

FLUENT, INC.                        ALEXANDER E. MANDEL

By:         /s/ Daniel J Barsky                                   /s/ Alexander E. Mandel                
Name:     Daniel J Barsky                                  Date:    January 30, 2019             

12

EXHIBIT A

		
	1.
	Effective Date and Initial Term: February 1, 2019 (Effective Date) through December 31, 2020 (Initial Term)

		
	2.
	Employee Name: Alexander E. Mandel

		
	3.
	Position: Chief Financial Officer, Principal Financial Officer and Principal Accounting Officer 

		
	4.
	Duties: Lead and oversee the Accounting and Financial functions, in consultation with the Chief Executive Officer, and such other duties and responsibilities that are typically exercised by an individual serving as the chief financial officer at entities of the size and nature of the Company.

		
	5.
	Location of Employment: Manhattan, New York

		
	6.
	Term: Commencing on the Effective Date and ending on December 31, 2020, as renewed in accordance with Section 1.

		
	7.
	Base Salary: $300,000 per annum

		
	8.
	Equity: During the Term, the Employee shall participate in all incentive awards made under the Incentive Plan to senior executives generally, as such awards are granted from time to time by the Compensation Committee of the Board, in each case at a level, and on terms and conditions, that are (x) commensurate with his positions and responsibilities at the Company and (y) appropriate in light of his performance and of corresponding awards (if any) to other senior executives of the Company.  In addition, effective as of the Effective Date, the Employee shall be granted an award of 75,000 Restricted Stock Units (the “RSUs”) under the Incentive Plan, which grant shall vest ratably over the three (3) years from the Effective Date, and in full upon a Change in Control (as defined in the Incentive Plan as of the Effective Date).  The 75,000 RSUs granted on the Effective Date as well as the RSUs granted on or about the Effective Date pursuant to the Pay Governance Equity Incentive Plan Design, as approved by the Compensation Committee on January 28, 2019, to the extent that they are scheduled to vest within one year after a termination of employment (if employment had continued), shall also become immediately vested (and if applicable, exercisable for at least 90 days) upon a termination or non-renewal covered by Section 5(c)(iv) or (vi).  The Award Agreements for the two RSU grants shall be deemed to include the extended vesting described above.

13EX-10.1

 Exhibit 10.1 

REPORTING EXTENSION AGREEMENT AND WAIVER 

This REPORTING EXTENSION AGREEMENT AND WAIVER (this “Agreement”), is dated as of May 9, 2019 (the
“Effective Date”), by and among WAGEWORKS, INC., a Delaware corporation (the “Borrower”), the several financial institutions from time to time party to the Credit Agreement (as defined below), as lenders (the
“Lenders”), and MUFG UNION BANK, N.A., as administrative agent for the Lenders (in such capacity, the “Agent”) and as Swing Line Lender and L/C Issuer. 

BACKGROUND 
 A.
Borrower, Lenders and Agent are parties to the Second Amended and Restated Credit Agreement, dated as of April 4, 2017, as amended, modified, supplemented, extended or restated from time to time (collectively, the “Credit
Agreement”), pursuant to which the Lenders have agreed, subject to and on the terms and conditions set forth therein, to make certain loans and other credit accommodations to or for the benefit of Borrower. 

B. Pursuant to the Credit Agreement, after giving effect to the Reporting Extension Agreements, dated as of March 22, 2018, June 28,
2018, and March 14, 2019, each by and among Borrower, the Required Lenders and Agent (the “Existing Extension Agreements”): 

i. On or before March 19, 2019, Borrower was required to deliver to Agent and the Lenders, among other things, the “FY2016 Restated
Compliance Certificate,” the “FY2017 Compliance Certificate,” and the “FY2016 and FY2017 Quarterly Restated Compliance Certificates,” as such terms are defined in the Reporting Extension Agreement dated as of March 14,
2019 by and among Borrower, the Required Lenders and Agent (collectively, the “Restated Compliance Certificates”); 
 ii. On
or before May 10, 2019 (or if earlier, five (5) Business Days after the date filed with the SEC), Borrower is required to deliver to Agent and the Lenders, (a) Borrower’s audited consolidated financial statements for the fiscal
year ending December 31, 2018 (“FY2018 Audited Financial Statements”) and (b) accompanying Compliance Certificate (“FY2018 Restated Compliance Certificate”); and 

iii. On or before May 10, 2019 (or if earlier, five (5) Business Days after the date filed with the SEC), Borrower is required to
have filed with the SEC, and delivered to Agent and the Lenders, Borrower’s Form 10-K Annual Report for the fiscal year ending December 31, 2018 (the “FY2018
10-K”); and 
 C. Borrower has delivered to Agent and the Lenders, Borrower’s unaudited
consolidated balance sheet as of the end of Borrower’s fiscal year ending December 31, 2018, and the related unaudited consolidated statements of income or operations, changes in stockholders’ equity and cash flows for such fiscal
year, prepared in accordance with GAAP, subject only to audit adjustments and the absence of footnotes (the “FY2018 Internally Prepared Financial Statements”) and an accompanying Compliance Certificate. 

D. Borrower has delivered to Agent and the Lenders notice that (i) although Borrower delivered the Restated Compliance Certificates on
March 27, 2019, an Event of Default has occurred and is continuing under the Credit Agreement due to Borrower’s failure to timely deliver the Restated Compliance Certificates as required on or before March 19, 2019 (the
“Existing Default”), and (ii) Borrower is not able to comply with, and intends not to comply with, the reporting requirements of Sections 7.01 and 7.02 of the Credit Agreement and the Existing Extension Agreements
with respect to the FY2018 Audited Financial Statements, the FY2018 Restated Compliance Certificate, and the FY2018 10-K, and Borrower has requested that Agent and Lenders waive the Existing Default and extend
the dates by which delivery of the foregoing is required under the Credit Agreement and the Existing Extension Agreements, as set forth herein. 

 E. While they are under no obligation to do so, the Required Lenders party hereto and Agent,
are willing to waive the Existing Default and extend such reporting deadlines under the Credit Agreement on and subject to the terms and conditions set forth herein. 

AGREEMENT 
 NOW
THEREFORE, in consideration of the mutual covenants and agreements herein contained and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby
agree as follows: 
 1. Incorporation of Recitals: Definitions. Each of the above recitals is incorporated herein as true and correct
and is relied upon by Agent and each Lender in agreeing to the terms of this Agreement. Any capitalized term used but not defined herein shall have the meaning ascribed thereto in the Credit Agreement. 

2. Limited Extensions; Limited Default Waiver. 

a. Subject to the satisfaction of each of the conditions set forth herein, Agent and Lenders hereby extend the date by which Borrower must
deliver to Agent and the Lenders (and file with the SEC, as applicable) the FY2018 Audited Financial Statements, the FY2018 Restated Compliance Certificate, and the FY2018 10-K, to May 31, 2019 (or if
earlier, five (5) Business Days after the date filed with the SEC) (“Outside Extended Delivery Date”). 
 b. Without
limiting the conditions set forth in Section 5 below, the extensions set forth above are subject to compliance by Borrower with the following covenants, and Borrower hereby covenants and agrees that it shall comply with
each of the following: 
 i. by no later than the Outside Extended Delivery Date, Borrower shall deliver to Agent and the
Lenders, and file with the SEC, as applicable, the items listed in Section 2.a. above; 
 ii. Borrower shall promptly
report to Agent any findings in the preparation of the FY2018 Audited Financial Statements which are materially different than as reported in the FY2018 Internally Prepared Financial Statements; 

iii. there shall be no material difference, as determined by Agent in its good faith business judgment, between the FY2018
Internally Prepared Financial Statements and the FY2018 Audited Financial Statements; and 
 iv. Borrower shall pay to Agent,
to be distributed ratably to each Lender providing its consent to this Agreement (each a “Consenting Lender”) based on the percentage (carried out to the ninth decimal place) of the Aggregate Commitments of all Consenting Lenders
represented by such Lender’s Commitment, a fee in the amount of Fifty Thousand Dollars ($50,000) (the “Fourth Extension Fee”), which shall be fully-earned and non-refundable as of the
date of this Agreement, and shall be payable on the Effective Date of this Agreement. 

  
 2 

 c. Borrower hereby acknowledges, and subject to and on the terms set forth herein, Agent and
the Required Lenders hereby waive, the Existing Default (the “Default Waiver”). Borrower acknowledges and agrees that, but for the Default Waiver, the Existing Defaults would have entitled Agent and the Lenders to exercise all the
remedies available under the Credit Agreement and the other Loan Documents and all applicable Laws. 
 3. Event of Default; Updated
Compliance Certificates. Failure to deliver the items noted in Section 2 above by the deadlines noted therein, and/or any failure to comply with, or any violation of, any of the covenants in Section 2 hereof shall result in an
immediate Event of Default without the benefit of any cure or grace period. Any and all updated quarterly and annual Compliance Certificates, including the FY2018 Restated Compliance Certificate, shall include certifications regarding any changes to
the financial covenants and ratios under Section 7.13 of the Credit Agreement that were previously reported by Borrower for the applicable periods. Borrower acknowledges and agrees that any change to a previously reported
Consolidated Leverage Ratio that results in a higher Applicable Rate for the relevant period, will result in additional interest and/or fees owing by Borrower under Section 2.10(b) of the Credit Agreement, and Borrower
agrees to pay such amounts upon demand by Agent. 
 4. Representations and Warranties. Borrower represents and warrants to, and
covenants and agrees for the benefit of, Agent and each Lender that: 
 a. All of the representations and warranties of Borrower set forth in
the Credit Agreement and each other Loan Document to which Borrower is a party were true and correct as of the date originally made, and are true and correct in all material respects as of the date hereof (except to the extent such representations
and warranties expressly refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date); provided that the foregoing materiality qualifications shall not apply to any representations or
warranties that are qualified by materiality in the text thereof, which representations and warranties shall be true in all respects; 
 b.
Borrower has the power and authority to execute this Agreement, and the execution, delivery, and performance by Borrower of this Agreement and the other documents, instruments and agreements to which Borrower is a party delivered or to be delivered
in connection herewith (i) are within the corporate powers of Borrower and have been duly authorized by all necessary corporate action on the part of Borrower, (ii) do not require any approval or consent of any Governmental Authority or
any other third party consent, except those which have been duly obtained and are in full force and effect and those the failure of which to obtain could not be reasonably expected to have a Material Adverse Effect, (iii) do not and will not
conflict with or violate any applicable Law or Borrower’s Organization Documents, (iv) do not result in any breach of or constitute a default under any Contractual Obligation to which Borrower is a party, and (v) do not result in or
require the creation or imposition of any Lien upon any of the assets or properties of Borrower or any of its Subsidiaries; 
 c. This
Agreement and the other certificates, instruments, documents and agreements delivered or to be delivered by Borrower in connection herewith have been duly executed and delivered by Borrower and constitute the legal, valid, and binding obligation of
Borrower, enforceable against Borrower in accordance with their respective terms, except to the extent that (i) enforcement may be limited by Debtor Relief Law, (ii) enforcement may be subject to general principles of equity, and
(iii) the availability of the remedies of specific performance and injunctive relief may be subject to the discretion of the court before which any proceedings for such remedies may be brought; 

d. Other than the Existing Default, no event has occurred or failed to occur, and after and as a result of giving effect to this Agreement will
occur, that is, or, with notice or lapse of time or both would constitute, a Default, an Event of Default, or a breach or failure of any condition under any Loan Document; 

  
 3 

 e. As of the date hereof, Borrower has no Material Subsidiaries, or Subsidiaries that are
required to be designated as Material Subsidiaries under the Loan Documents; 
 f. After and as a result of giving effect to this Agreement,
Borrower has no offset, defense, claim, counterclaim, dispute or disagreement of any kind or nature whatsoever with respect to Agent or any Lender or with respect to its liabilities, obligations and indebtedness arising under or in connection with
the Credit Agreement or any of the other Loan Documents; and 
 g. In connection with the preparation of the FY2018 Audited Financial
Statements Borrower has not become aware of any items that are materially different than as reported in the FY2018 Internally Prepared Financial Statements. 

5. Conditions Precedent. Borrower understands that this Agreement shall not be effective and shall have no force or effect until each of
the following conditions precedent has been satisfied, or waived in writing by Agent (in Agent’s sole discretion): 
 a. Borrower shall
have duly executed and delivered to Agent and each Lender this Agreement; 
 b. Borrower shall have paid to Agent for the account of each
Lender providing its consent to this Agreement, the Fourth Extension Fee; 
 c. The representations and warranties of Borrower under the
Credit Agreement, the other Loan Documents and this Agreement, as applicable, shall be true and correct in all material respects as of the date hereof (except to the extent such representations and warranties expressly refer to an earlier date, in
which case they are true and correct in all material respects as of such earlier date); provided that the foregoing materiality qualifications shall not apply to any representations or warranties that are qualified by materiality in the text
thereof, which representations and warranties shall be true in all respects; 
 d. Agent shall have received, in immediately available funds,
all out-of-pocket costs and expenses (including reasonable attorneys’ fees and costs) incurred by Agent in connection with this Agreement and the transactions
contemplated hereby and invoiced to Borrower prior to the date on which this Agreement is otherwise to become effective; provided that the failure to invoice any such amounts to Borrower prior to such date shall not preclude Agent from
seeking reimbursement of such amounts, or excuse any Loan Party from paying or reimbursing such amounts, following the effective date of this Agreement; and 

e. Agent shall have received such other documents, and completion of such other matters, as Agent may reasonably deem necessary or appropriate
in connection with this Agreement. 
 6. Ratification and Confirmation of Loan Documents. Except as expressly set forth in
Section 2 hereof, the execution, delivery, and performance of this Agreement shall not alter, modify, amend, or in any way affect any of the terms, conditions, obligations, covenants, or agreements contained in the Credit
Agreement or any other Loan Document, and shall not operate as a waiver of any right, power, or remedy of Agent or any Lender under the Credit Agreement or any other Loan Document. The Credit Agreement, all promissory notes, guaranties, security
agreements, and all other instruments, documents and agreements entered into in connection with the Credit Agreement and each other Loan Document shall be and remain in full force and effect in accordance with their respective terms and hereby are
ratified, reaffirmed and confirmed by Borrower in all respects. 

  
 4 

 7. No Waivers. The extension, agreements and waiver set forth herein shall be limited
precisely as written and shall not be deemed to be an extension or agreement to any other act by Borrower which is prohibited by the Credit Agreement or a waiver of any covenant, liability or obligation of Borrower, except as expressly set forth
herein. This Agreement: (a) except as specifically provided in Section 2 above, in no way shall be deemed to be a consent or an agreement on the part of Agent or any Lender to waive any covenant, liability or
obligation of Borrower, any Guarantor or any third party or to waive any right, power, or remedy of Agent or any Lender; (b) in no way shall be deemed to imply a willingness on the part of Agent or any Lender to grant any similar or other
future waivers or to agree to any future consents, amendments or modifications to any of the terms and conditions of the Credit Agreement or the other Loan Documents; (c) shall not in any way, prejudice, limit, impair or otherwise affect any
rights or remedies of Agent or any Lender under the Credit Agreement or any of the other Loan Documents, including, without limitation, Agent’s or any Lender’s right to demand strict performance of each Loan Party’s liabilities and
obligations to Agent and the Lenders and the Obligations under the Loan Documents at all times; (d) in no way shall obligate Agent or any Lender to make any future amendments, waivers, consents or modifications to the Credit Agreement or any
other Loan Document; and (e) is not a continuing waiver with respect to any failure to perform any Obligation. Borrower acknowledges and agrees that: (i) except as expressly set forth herein, the Credit Agreement has not been amended or
modified in any way by this Agreement, (ii) neither Agent nor any Lender waives any failure by Borrower to perform its Obligations under the Credit Agreement or any of the other Loan Documents after giving effect to the extension provided
herein, and (iii) Agent and each Lender is relying upon Borrower’s representations, warranties and agreements, as set forth herein and in the Loan Documents in entering into this Agreement. Nothing in this Agreement shall constitute a
satisfaction of Borrower’s Obligations. This Agreement shall be deemed to be one of the Loan Documents. 
 8. Release. Borrower
hereby, for itself, its successors, heirs, executors, administrators and assigns (each a “Releasing Party” and collectively, the “Releasing Parties”), releases, acquits and forever discharges Agent and each Lender,
and their respective directors, officers, employees, agents, attorneys, affiliates, successors, administrators and assigns (“Released Parties”) of and from any and all claims, actions, causes of action, demands, rights, damages,
costs, loss of service, expenses and compensation whatsoever which any Releasing Party might have because of anything done, omitted to be done, or allowed to be done by any of the Released Parties and in any way arising out of or connected with the
Credit Agreement or the other Loan Documents as of the date of execution of this Agreement, WHETHER KNOWN OR UNKNOWN, FORESEEN OR UNFORESEEN, including, without limitation, any specific claim raised by any Releasing Party, (the “Released
Matters”). Releasing Parties each further agrees never to commence, aid or participate in (except to the extent required by order or legal process issued by a court or governmental agency of competent jurisdiction) any legal action or other
proceeding based in whole or in part upon the Released Matters. In furtherance of this general release, Releasing Parties each acknowledges and waives the benefits of California Civil Code Section 1542 (and all similar ordinances and statutory,
regulatory, or judicially created laws or rules of any other jurisdiction), which provides: 
 A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.

  
 5 

 Releasing Parties each agree that this waiver and release is an essential and material term of this
Agreement and that the agreements in this paragraph are intended to be in full satisfaction of any alleged injuries or damages in connection with the Released Matters. Each of the Releasing Parties represents and warrants that it has not purported
to convey, transfer or assign any right, title or interest in any Released Matter to any other person or entity and that the foregoing constitutes a full and complete release of the Released Matters. Releasing Parties each also understands that this
release shall apply to all unknown or unanticipated results of the transactions and occurrences described above, as well as those known and anticipated. Releasing Parties each has consulted with legal counsel prior to signing this release, or had an
opportunity to obtain such counsel and knowingly chose not to do so, and executes such release voluntarily, with the intention of fully and finally extinguishing all Released Matters. Notwithstanding anything in this Agreement, Borrower does not
waive any of Agent’s or any Lender’s obligations under the terms of the Credit Agreement as amended by this Agreement. 
 9.
Miscellaneous. Borrower acknowledges and agrees that the representations and warranties set forth herein are material inducements to Agent and the Lenders to deliver this Agreement. This Agreement shall be binding upon and inure to the
benefit of and be enforceable by the parties hereto, and their respective permitted successors and assigns. This Agreement and the Credit Agreement shall be read together as one document. No course of dealing on the part of Agent, the Lenders or any
of their respective officers, nor any failure or delay in the exercise of any right by Agent or the Lenders, shall operate as a waiver thereof, and any single or partial exercise of any such right shall not preclude any later exercise of any such
right. The failure at any time to require strict performance by Borrower of any provision of the Loan Documents shall not affect any right of Agent or the Lenders thereafter to demand strict compliance and performance. Any suspension or waiver of a
right must be in writing signed by an officer of Agent and/or the Lenders, as applicable. No other Person shall be entitled to claim any right or benefit hereunder, including, without limitation, the status of a third party beneficiary hereunder
other than Secured Parties. This Agreement shall be governed by and construed in accordance with the laws of the State of California without reference to conflicts of law rules. If any provision of this Agreement or any of the other Loan Documents
shall be determined by a court of competent jurisdiction to be invalid, illegal or unenforceable, that portion shall be deemed severed herefrom or therefrom, as applicable, and the remaining parts shall remain in full force as though the invalid,
illegal or unenforceable portion had never been a part hereof or thereof, as applicable. This Agreement shall be construed without regard to any presumption or rule requiring that it be construed against the party causing this Agreement or any part
hereof to be drafted. The headings used in this Agreement are for convenience only and shall be disregarded in interpreting the substantive provisions of this Agreement. This Agreement may be executed in any number of counterparts, including by
electronic or facsimile transmission, each of which when so delivered shall be deemed an original, but all such counterparts taken together shall constitute but one and the same instrument. 

[Remainder of Page Left Blank] 

[Signature Pages Follow] 

  
 6 

 IN WITNESS WHEREOF, Borrower, Agent and the Required Lenders have caused this Agreement to
be executed as of the date first written above. 
  

							
	BORROWER:	 		 	WAGEWORKS, INC.
				
		 		 	By:	 	 /s/ Ismail Dawood

		 		 	Name:	 	Ismail Dawood
		 		 	Its:	 	Chief Financial Officer

 [Signature Page to Reporting Extension Agreement and Waiver] 

 IN WITNESS WHEREOF, Borrower, Agent and the Required Lenders have caused this Agreement to
be executed as of the date first written above. 
  

							
	AGENT:	 		 	MUFG UNION BANK, N.A., as Agent
				
		 		 	By:	 	 /s/ J. William Bloore

		 		 	Name:	 	J. William Bloore
		 		 	Title:	 	Managing Director
			
	LENDER:	 		 	MUFG UNION BANK, N.A., as Lender, Swing Line Lender and L/C Issuer
				
		 		 	By:	 	 /s/ J. William Bloore

		 		 	Name:	 	J. William Bloore
		 		 	Title:	 	Managing Director

 [Signature Page to Reporting Extension Agreement and Waiver] 

 IN WITNESS WHEREOF, Borrower, Agent and the Required Lenders have caused this Agreement to
be executed as of the date first written above. 
  

							
	LENDER:	 		 	WELLS FARGO BANK, N.A., as Lender
				
		 		 	By:	 	 /s/ Tracie Plummer

		 		 	Name:	 	Tracie Plummer
		 		 	Title:	 	Director

 [Signature Page to Reporting Extension Agreement and Waiver] 

 IN WITNESS WHEREOF, Borrower, Agent and the Required Lenders have caused this Agreement to
be executed as of the date first written above. 
  

							
	LENDER:	 		 	SUNTRUST BANK, as Lender
				
		 		 	By:	 	 /s/ Christian Sumulong

		 		 	Name:	 	Christian Sumulong
		 		 	Title:	 	Vice President

 [Signature Page to Reporting Extension Agreement and Waiver] 

 IN WITNESS WHEREOF, Borrower, Agent and the Required Lenders have caused this Agreement to
be executed as of the date first written above. 
  

							
	LENDER:	 		 	UMB BANK N.A., as Lender
				
		 		 	By:	 	 /s/ Cory Miller

		 		 	Name:	 	Cory Miller
		 		 	Title:	 	Senior Vice President

 [Signature Page to Reporting Extension Agreement and Waiver] 

 IN WITNESS WHEREOF, Borrower, Agent and the Required Lenders have caused this Agreement to
be executed as of the date first written above. 
  

							
	 LENDER:
	 		 	KEYBANK NATIONAL ASSOCIATION, as Lender
				
		 		 	By:	 	 /s/ Marc Evans

		 		 	 Name:
	 	 Marc Evans

		 		 	 Title:
	 	 Vice President

 [Signature Page to Reporting Extension Agreement and Waiver] 

 IN WITNESS WHEREOF, Borrower, Agent and the Required Lenders have caused this Agreement to
be executed as of the date first written above. 
  

							
	 LENDER:
	 		 	COMERICA BANK, as Lender
				
		 		 	By:	 	 /s/ Bradley J. Bell

		 		 	 Name:
	 	 Bradley J. Bell

		 		 	 Title:
	 	 Senior Vice President

 [Signature Page to Reporting Extension Agreement and Waiver]

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