Document:

Exhibit 10.2

      

       

      

      
        EXECUTION VERSION

        

        

        BROOKLYN IMMUNOTHERAPEUTICS INC.

        

        

        REGISTRATION RIGHTS AGREEMENT

         

        
          

          
            

          

        

        
        

        

        Table of Contents

        

        

        	 	 	
                Page

              
	 	 	 
	
                1.

              	
                Definitions

              	
                1

              
	 	 	 
	
                2.

              	
                Registration Rights

              	
                3

              
	 	 	 
	
                3.

              	
                Effectiveness

              	
                4

              
	 	 	 
	
                4.

              	
                Rule 415; Cutback

              	
                4

              
	 	 	 
	
                5.

              	
                Brooklyn Obligations

              	
                5

              
	 	 	 
	
                6.

              	
                Obligations of the Holders

              	
                7

              
	 	 	 
	
                7.

              	
                Indemnification

              	
                8

              
	 	 	 
	
                8.

              	
                Existing Registration Statements

              	
                9

              
	 	 	 
	
                9.

              	
                Additional Holders

              	
                10

              
	 	 	 
	
                10.

              	
                Miscellaneous

              	
                10

              

        

        

        	
                Schedule I

              	
                -

              	
                Schedule of Holders

              
	
                Schedule II

              	
                -

              	
                Schedule of Additional Holders

              
	
                Exhibit A

              	
                -

              	
                Form of Joinder Agreement

              

         

        
          

          i

          
            

          

        

        
        

        

        This Registration
            Rights Agreement (this “Agreement”) is made as of July 16, 2021, by and among Brooklyn
          ImmunoTherapeutics, Inc., a Delaware corporation (“Brooklyn”), and the individuals and entities listed on Schedule I to this Agreement, (together with any subsequent securities holders, or transferees, who become parties to this Agreement as “Holders”
          pursuant to Section 9, the “Holders”
          and each individually a “Holder”). Capitalized terms used herein without definition shall have the respective meanings ascribed to
          such terms in the Acquisition Agreement (defined below).

        

        

        Whereas,
          reference is made to that certain Agreement and Plan of Acquisition, dated as of July 16, 2021 (as the same may be amended or modified from time to time, the “Acquisition Agreement”) by and among Brooklyn, Brooklyn Acquisition Sub, Inc., a Delaware corporation, Novellus LLC, a Delaware limited liability (“Seller”), Novellus, Inc., a Delaware corporation, and the Sellers’ Representative therein, and the transactions contemplated thereby (the “Transactions”);

        

        

        Whereas,
          after the closing of the Transactions, the Holders (together with the Additional Holders) will own shares of Common Stock; and

        

        

        Whereas,
          as a material inducement to the Holders entering into the Acquisition Agreement and consummating the Transactions, Brooklyn has agreed to enter into this Agreement in order to provide the Holders certain registration rights with respect to the
          Registrable Securities (as defined below) on the terms set forth herein.

        

        

        Now,
            Therefore, the parties hereto, intending to be legally bound, hereby agree as follows:

        

        

        1.       Definitions. For purposes of this Agreement:

        

        

        (a)      “Additional
              Holder” has the meaning set forth in Section
                9.

        

        

        (b)      “Agreement” has the meaning set forth in the Preamble.

        

        

        (c)      “Allowed Delay” has the meaning set forth in Section 3(b).

        

        

        (d)      “Acquisition
              Agreement” has the meaning set forth in the Recitals.

        

        

        (e)      “Brooklyn” has the meaning set forth in the Preamble.

        

        

        (f)      “Business Day” means a day other than a Saturday or Sunday on which commercial banks in New York, New York are open for business between the hours of 8:00 a.m. and 5:00
              p.m., Eastern time.

        

        

        (g)      “Common Stock” means common stock of Brooklyn, $0.005 par value per share.

        

        

        (h)      “Constructive
              Primary Offering” has the meaning set forth in Section 4.

        

        

        (i)      “Cut Back Shares” has the meaning set forth in Section 4.

        

        

        (j)      “Effectiveness
              Deadline” means, with respect to the Registration Statement, the sixtieth calendar day following the Filing Deadline (or, in the event the SEC
              reviews and has written comments to the Registration Statement, the calendar day that is one hundred twenty calendar days following the Filing Deadline); provided, that if the Effectiveness Deadline falls on a Saturday, Sunday or other day that the SEC is
              closed for business, the Effectiveness Deadline shall be extended to the next Business Day on which the SEC is open for business.

        

        

        (k)      “Effectiveness
              Period” has the meaning set forth in Section
                5(a).

         

        
          

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        (l)      “Exchange Act” means the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder.

        

        

        (m)     “Filing Deadline” has the meaning set forth in Section 2(a)(i).

        

        

        (n)      “Holder
              Information” has the meaning set forth in Section
                7(b).

        

        

        (o)      “Holder” has the meaning set forth in the Preamble.

        

        

        (p)      “Losses” has the meaning set forth in Section 7(a).

        

        

        (q)    “Prospectus” means (i) the prospectus included in any Registration Statement, as amended or supplemented by any prospectus supplement, with respect to the terms of
              the offering of any portion of the Registrable Securities covered by such Registration Statement and by all other amendments and supplements to the prospectus, including post-effective amendments and all material incorporated by reference in
              such prospectus, and (ii) any “free writing prospectus” as defined in Rule 405 under the Securities Act.

        

        

        (r)      “Qualification
              Date” has the meaning set forth in Section
                2(a)(ii).

        

        

        (s)      “Qualification
              Deadline” has the meaning set forth in Section
                2(a)(ii).

        

        

        (t)      “Questionnaire” has the meaning set forth in Section 6(a).

        

        

        (u)     “Register,” “registered” and “registration” refer to a registration made by preparing and filing a Registration Statement or similar document in compliance with the Securities Act, and the
              declaration or ordering of effectiveness of such Registration Statement or document.

        

        

        (v)     “Registrable
              Securities” means (i) the Shares and (ii) any other securities issued or issuable with respect to or in exchange for Shares, whether by
              merger, charter amendment or otherwise; provided, that a security shall cease to be a Registrable Security upon (A) sale pursuant to a Registration Statement or Rule 144, or (B) such security becoming eligible for sale without volume
              limitation pursuant to Rule 144.

        

        

        (w)    “Registration
              Statement” means any registration statement of Brooklyn under the Securities Act that covers the resale of any of the Registrable Securities
              pursuant to the provisions of this Agreement, amendments and supplements to such Registration Statement, including post-effective amendments, all exhibits and all material incorporated by reference in such Registration Statement.

        

        

        (x)     “Required
              Holders” means the Holders holding a majority of the Registrable Securities outstanding from time to time.

        

        

        (y)     “Restriction
              Termination Date” has the meaning set forth in Section 4.

        

        

        (z)     “Rule 144” means Rule 144 promulgated by the SEC pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation
              hereafter adopted by the SEC having substantially the same effect as such Rule.

        

        

        (aa)   “Rule 415” means Rule 415 promulgated by the SEC pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation
              hereafter adopted by the SEC having substantially the same effect as such Rule.

         

        
          

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        (bb)   “SEC” means the Securities and Exchange Commission.

        

        

        (cc)    “SEC
              Restrictions” has the meaning set forth in Section 4.

        

        

        (dd)    “Securities Act” means the Securities Act of 1933 and the rules and regulations promulgated thereunder.

        

        

        (ee)    “Seller” has the meaning set forth in the Recitals.

        

        

        (ff)    “Shares” means the shares of Common Stock issued to the Holders in connection with the Acquisition Agreement and listed on Schedules I and II.

        

        

        (gg)   “Shelf
              Registration Statement” has the meaning set forth in Section 2(a)(ii).

        

        

        (hh)   “Transactions” has the meaning set forth in the Recitals.

        

        

        2.       Registration Rights.

        

         

          

        (a)      Demand Registration.

        

        

        (i)          Promptly following the Closing Date, but no later than 30 days after the Closing Date (the “Filing Deadline”), Brooklyn shall
              prepare and file with the SEC one Registration Statement covering the resale of all of the Registrable Securities. No Holder shall be named as an “underwriter” in such Registration Statement without such Holder’s prior written consent, and if
              the SEC requests that the Holder be identified as a statutory underwriter in the Registration Statement, such Holder shall have an opportunity to withdraw its Registrable Securities from the Registration Statement. Such Registration Statement
              also shall cover, to the extent allowable under the Securities Act (including Rule 416), such indeterminate number of additional shares of Common Stock resulting from stock splits, stock dividends or similar transactions with respect to the
              Registrable Securities. Such Registration Statement shall not include any shares of Common Stock or other securities for the account of any other holder without the prior written consent of each of the Required Holders. Such Registration
              Statement (and each amendment or supplement thereto, and each request for acceleration of effectiveness thereof) shall be provided in accordance with Section 5(c) to the Holders prior to its filing or other submission. Further, Brooklyn shall provide a draft of the
              Registration Statement to the Holders for review at least three Business Days in advance of filing the Registration Statement; provided that, for the avoidance of doubt, in no event shall Brooklyn be required to delay or postpone the filing of such
              Registration Statement as a result of or in connection with any Holder’s review.

        

        

        (ii)          The Registration Statement referred to in Section 2(a)(i) shall be on Form S-3. In the event that Form S-3 is not available for
              the registration of the resale of Registrable Securities hereunder, Brooklyn shall (A) register the resale of the Registrable Securities on such other form as is available to Brooklyn and (B) so long as Registrable Securities remain
              outstanding, promptly following the date (the “Qualification Date”) upon which Brooklyn becomes eligible to use a registration statement on Form S-3 to register the Registrable Securities for resale, but in no event more than thirty days after the Qualification
              Date (the “Qualification Deadline”), file a registration statement on Form S-3 covering the Registrable Securities (or a post-effective amendment on Form S-3 to a registration statement on Form S-1) (a “Shelf Registration Statement”) and use commercially reasonable efforts to cause
              such Shelf Registration Statement to be declared effective as promptly as practicable thereafter; provided that Brooklyn shall maintain the effectiveness of the Registration Statement then in effect until such time as a Shelf Registration Statement covering the
              Registrable Securities has been declared effective by the SEC.

         

        
          

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        (b)     Expenses.
              Brooklyn will pay all expenses associated with each Registration Statement, including filing and printing fees, Brooklyn’s counsel and accounting fees and expenses, costs associated with clearing the Registrable Securities for sale under
              applicable state securities laws and listing fees, but excluding discounts, commissions, fees of underwriters, selling brokers, dealer managers or similar securities industry professionals with respect to the Registrable Securities being
              sold.

        

        

        3.      
          Effectiveness.

        

        

        (a)     Effectiveness Deadline. Brooklyn shall use commercially reasonable efforts to have each Registration Statement declared effective as soon as practicable after such Registration Statement has been filed with the SEC, but no later than the Effectiveness
              Deadline. By 5:30 p.m. Eastern time on the second Business Day following the date on which the Registration Statement is declared effective by the SEC, Brooklyn shall file with the SEC, in accordance with Rule 424 under the Securities Act,
              the final prospectus to be used in connection with sales pursuant to such Registration Statement. Brooklyn shall notify the Holders by e-mail as promptly as practicable, and in any event within 24 hours, after any Registration Statement is
              declared effective and shall simultaneously provide the Holders with copies of any related Prospectus to be used in connection with the sale or other disposition of the securities covered thereby.

        

        

        (b)     For not more than 30 consecutive days, and for not more than 60 total days, in each case, in any 12
              month period, Brooklyn may suspend the use of any Prospectus included in any Registration Statement contemplated by this Section 3 in the event that Brooklyn determines in good faith that such suspension is necessary to (i) delay the disclosure of material nonpublic information
              concerning Brooklyn, the disclosure of which at the time is not, in the good faith opinion of Brooklyn, in the best interests of Brooklyn or (ii) amend or supplement the affected Registration Statement or the related Prospectus so that such
              Registration Statement or Prospectus shall not include an 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, in the case of the Prospectus in the
              light of the circumstances under which they were made, not misleading (an “Allowed Delay”); provided, that Brooklyn shall promptly (w) notify each Holder in writing of the commencement of an Allowed Delay, but shall not (without the prior written consent of the Holder) disclose
              to such Holder any material nonpublic information giving rise to such Allowed Delay, (x) advise the Holders in writing to cease all sales under such Registration Statement until the end of such Allowed Delay, (y) use commercially reasonable
              efforts to terminate such Allowed Delay as promptly as practicable and (z) notify each Holder in writing within 24 hours when such Allowed Delay is terminated.

        

        

        4.     Rule 415; Cutback. If at any time the SEC takes the position that the offering of some or all of the
              Registrable Securities in a Registration Statement is a primary offering or not eligible to be made on a delayed or continuous basis under the provisions of Rule 415 under the Securities Act, or requires any Holder to be named as an
              “underwriter,” Brooklyn shall use commercially reasonable efforts to advocate before the SEC its reasonable position that the offering contemplated by such Registration Statement is a valid secondary offering and not an offering “by or on
              behalf of the issuer” as defined in Rule 415 (a “Constructive Primary Offering”) and that no Holder is an “underwriter.” One representative of the Holders (appointed by written consent of the Required Holders) and his, her or its counsel shall have the
              right to review and oversee any registration or matters pursuant to this Section 4, including participation in any meetings or discussions with the SEC regarding the SEC’s position, and to comment on any written submission made to the SEC with respect thereto. In the event
              that, despite Brooklyn’s commercially reasonable efforts, the SEC does not alter its position, Brooklyn shall (i) remove from such Registration Statement such portion of the Registrable Securities (the “Cut Back Shares”) and/or (ii) agree to such restrictions
              and limitations on the registration and resale of the Registrable Securities as the SEC may require to assure Brooklyn’s compliance with the requirements of Rule 415 (collectively, the “SEC Restrictions”); provided, that Brooklyn shall not agree to name any Holder as an “underwriter”
              in such Registration Statement without the prior written consent of such Holder. For the avoidance of doubt, for purposes of this Section
                4, the term “commercially reasonable efforts” shall not require Brooklyn to institute or maintain any action, suit or proceeding against
              the SEC or any member of the Staff of the SEC. Any cut-back imposed on the Holders pursuant to this Section 4 shall be allocated among the Holders on a pro rata basis and shall be applied first to any of the Registrable Securities of such Holder as such Holder
              shall designate, unless the SEC Restrictions otherwise require or provide or the Holders otherwise agree. The parties agree that Brooklyn’s delay or failure to have a Registration Statement declared effective, solely to the extent resulting
              from the SEC taking the position that the offering is a Constructive Primary Offering, shall not be a breach of any provision of this Agreement. From and after such date as Brooklyn is able to effect the registration of such Cut Back Shares
              in accordance with any SEC Restrictions applicable to such Cut Back Shares (such date, the “Restriction Termination Date”), all of the provisions of Sections 2, 3, 4 and 5 (including Brooklyn’s obligations with respect to the filing of a Registration Statement and its obligations to use commercially reasonable efforts to have such Registration
              Statement declared effective within the time periods set forth herein) shall again be applicable to such Cut Back Shares; provided, (i) that the Filing Deadline and/or the Qualification Deadline, as applicable, for such Registration Statement including such Cut Back Shares shall be
              ten Business Days after such Restriction Termination Date, and (ii) the date by which Brooklyn is required to obtain effectiveness with respect to such Cut Back Shares under Section 3 shall be the ninetieth day immediately after the Restriction Termination Date (or the
              one hindered twentieth day if the SEC reviews such Registration Statement).

         

        
          

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        5.      Brooklyn Obligations. Brooklyn will use commercially
              reasonable efforts to effect the registration of the Registrable Securities in accordance with the terms hereof, and pursuant thereto Brooklyn will, as expeditiously as possible:

        

        

        (a)     use commercially reasonable efforts to cause such Registration Statement to become effective and to
              remain continuously effective for a period that will terminate upon the earlier of (i) the date on which all Registrable Securities covered by such Registration Statement, as amended from time to time, have been sold, and (ii) the date on
              which all Shares cease to be Registrable Securities (the “Effectiveness Period”);

        

        

        (b)    prepare and file with the SEC such amendments and post-effective amendments to such Registration Statement and the related Prospectus as may be necessary to keep such Registration Statement effective for the
            Effectiveness Period and to comply with the provisions of the Securities Act and the Exchange Act with respect to the distribution of all of the Registrable Securities covered thereby;

        

        

        (c)     provide copies (in electronic form) to and permit each Holder to review each Registration Statement and all amendments and supplements thereto at least three Business Days prior to
            their filing with the SEC and a reasonable opportunity to furnish comments thereon;

        

        

        (d)     furnish to each Holder whose Registrable Securities are included in any Registration Statement (i) promptly after the same is prepared
              and filed with the SEC, a copy of any Registration Statement and any amendment thereto, each preliminary prospectus and Prospectus and each amendment or supplement thereto, and each letter written by or on behalf of Brooklyn to the SEC or the
              staff of the SEC, and each item of correspondence from the SEC or the staff of the SEC, in each case relating to such Registration Statement (other than any portion thereof which contains information for which Brooklyn has sought confidential
              treatment), and (ii) a copy of any Prospectus, including a preliminary prospectus, and all amendments and supplements thereto and any such other documents as each Holder may reasonably request in order to facilitate the disposition of the
              Registrable Securities owned by such Holder that are covered by such Registration Statement; provided, that in each case such documents may be provided by Brooklyn in electronic form;

         

        
          

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        (e)     use commercially reasonable efforts to (i) prevent the issuance of any stop order or other suspension of effectiveness and, (ii) if such order is issued, obtain the withdrawal of any such order at the earliest
            practical moment;

        

        

        (f)      use commercially reasonable efforts to cause all Registrable Securities covered by a Registration Statement to be listed on each securities exchange, interdealer quotation system or other market on which similar
            securities issued by Brooklyn are then listed;

        

        

        (g)    promptly notify the Holders, at any time prior to the end of the Effectiveness Period, upon discovery that, or upon the happening of any event as a result of which, the Prospectus
            includes an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing (provided that such
            notice shall not, without the prior written consent of the Holder, disclose to such Holder any material nonpublic information regarding Brooklyn), and promptly prepare, file with the SEC and furnish to such holder a supplement to or an
            amendment of such Prospectus as may be necessary so that such Prospectus shall not include an 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 in the light of the circumstances then existing;

        

        

        (h)    otherwise use commercially reasonable efforts to comply with all applicable rules and regulations of the SEC under the Securities Act and the Exchange Act, including Rule 172 under the Securities Act, file any
            final Prospectus, including any supplement or amendment thereof, with the SEC pursuant to Rule 424 under the Securities Act, promptly inform the Holders in writing if, at any time during the Effectiveness Period, Brooklyn does not satisfy the
            conditions specified in Rule 172 and, as a result thereof, the Holders are required to deliver a Prospectus in connection with any disposition of Registrable Securities and take such other actions as may be reasonably necessary to facilitate
            the registration of the Registrable Securities hereunder; and make available to its security holders, as soon as reasonably practicable, an earnings statement covering satisfying the provisions of Section 11(a) of the Securities Act;

        

        

        (i)      if requested by a Holder, Brooklyn shall: (i) as soon as practicable, incorporate in a prospectus supplement or post-effective amendment such information as such Holder reasonably requests to be included therein
            relating to the sale and distribution of Registrable Securities, including information with respect to the number of Registrable Securities being offered or sold, the purchase price being paid therefor and any other terms of the offering of the
            Registrable Securities to be sold in such offering; (ii) as soon as practicable, make all required filings of such prospectus supplement or post-effective amendment after being notified of the matters to be incorporated in such prospectus
            supplement or post-effective amendment; and (iii) as soon as practicable, supplement or make amendments to any Registration Statement if reasonably requested by such Holder holding any Registrable Securities;

        

        

        (j)      within one Business Day after a Registration Statement which covers Registrable Securities is declared effective by the SEC, Brooklyn shall deliver to the transfer agent for such Registrable Securities (with
            copies to the Holders whose Registrable Securities are included in such Registration Statement) confirmation that such Registration Statement has been declared effective by the SEC and instruct the transfer agent for such Registrable Securities
            to remove the restrictive legends from such Registrable Securities;

         

        
          

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        (k)    with a view to making available to the Holders the benefits of Rule 144 (or its successor rule) and any other rule or regulation of the SEC that may at any time permit the Holders to sell shares of Common Stock
            to the public without registration, Brooklyn covenants and agrees to: (i) make and keep adequate current public information available, as those terms are understood and defined in Rule 144, until the earlier of (A) six months after such date as
            all of the Registrable Securities may be sold without volume limitation by the holders thereof pursuant to Rule 144 or any other rule of similar effect or (B) such date as all of the Registrable Securities shall have been resold; (ii) file with
            the SEC in a timely manner all reports and other documents required of Brooklyn under the Exchange Act; and (iii) furnish to each Holder upon reasonable request, as long as such Holder owns any Registrable Securities, (A) a written statement by
            Brooklyn that it has complied with the reporting requirements of the Exchange Act, (B) a copy of Brooklyn’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q, and (C) such other information as may be reasonably requested
            in order to avail such Holder of any rule or regulation of the SEC that permits the selling of any such Registrable Securities without registration;

        

        

        (l)     in the event that the Registrable Securities cease to be “covered securities” within the meaning of Section 18(b)(1) of the Securities Act, (i) register of qualify such Registrable Securities under such other
            securities or blue sky laws of such jurisdictions as any Holder reasonably requests, (ii) keep such registration or qualification in effect for so long as the applicable Registration Statement remains in effect, and (iii) use its commercially
            reasonable efforts to do any and all other acts and things which may be reasonably necessary or advisable to enable such Holder to consummate the disposition in such jurisdiction of the Registrable Securities owned by such Holder.

        

        

        6.       Obligations of the Holders.

        

        

        (a)    Notwithstanding any other provision of the Agreement, no Holder may include any of its Registrable
              Securities in the Registration Statement pursuant to this Agreement unless such Holder furnishes to Brooklyn a completed questionnaire in a form of reasonably requested by Brooklyn the “Questionnaire”) for use in connection with the Registration Statement at least
              three Business Days prior to the anticipated filing date of the Registration Statement if such Holder elects to have any of the Registrable Securities included in such Registration Statement. In addition to the Questionnaire, each Holder
              shall furnish such other information as shall be reasonably required to effect the registration of such Registrable Securities, and shall execute such documents in connection with such registration as Brooklyn may reasonably request.

        

        

        (b)     Each Holder, by its acceptance of the Registrable Securities, agrees to cooperate with Brooklyn as reasonably requested by Brooklyn in connection with the preparation and filing of a Registration Statement
            hereunder, unless such Holder has notified Brooklyn in writing of its election to exclude all of its Registrable Securities from such Registration Statement.

        

        

        (c)     Each Holder agrees that, upon receipt of any notice from Brooklyn of either (i) the commencement of an Allowed Delay pursuant to Section 3(b) or (ii) the happening of an event
              specified in Section 5(g) hereof,
              such Holder will immediately discontinue disposition of Registrable Securities pursuant to any Registration Statement covering such Registrable Securities, until the Holder is advised by Brooklyn that such dispositions may again be made, provided that, no Holder shall be
              required to discontinue disposition of Registrable Securities under a Registration Statement by virtue of the delivery by Brooklyn of a notice of the occurrence of any event of the kind described in Section 3(b) for a period of more than 30 consecutive days or, and for
              a total of more than 60 total days, in each case, in any 12 month period.

         

        
          

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        (d)     Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable to it or an exemption therefrom in connection with sales of Registrable
            Securities pursuant to any Registration Statement.

        

        

        7.       Indemnification.

        

        

        (a)     Indemnification by Brooklyn. Brooklyn will indemnify and hold harmless each Holder and its Affiliates, and their respective directors, officers, trustees, members, partners, managers, employees, investment advisers and agents,
              and each other Person, if any, who controls such Holder within the meaning of the Securities Act, against any and all losses, claims, damages, liabilities and expenses (including any reasonable attorneys’ fees and expenses incurred in
              connection with defending or investigating any such action or claim) (collectively, “Losses”), joint or several, to which they may become subject under the Securities Act or otherwise, insofar as such Losses (or actions in respect thereof) arise out of or are
              based upon (i) any untrue or alleged untrue statement of any material fact contained in any Registration Statement, any preliminary Prospectus or final Prospectus, or any amendment or supplement thereof, (ii) any omission or alleged omission
              of a material fact required to be stated therein or necessary to make the statements in any preliminary Prospectus or final Prospectus, or any amendment or supplement thereof, in the light of the circumstances under which they were made not
              misleading or (iii) any violation or alleged violation by Brooklyn or any of its subsidiaries of any federal, state, foreign or common law rule or regulation applicable to Brooklyn or any of its subsidiaries and relating to action or inaction
              in connection with any such registration, disclosure document or other document or report, except to the extent that any such Losses arise out of or are based upon (x) an untrue statement or alleged untrue statement or omission or alleged
              omission so made in conformity with Holder Information, (y) the use by a Holder of an outdated or defective Prospectus after Brooklyn has notified such Holder in writing that such Prospectus is outdated or defective; or (z) a Holder’s failure
              to send or give a copy of the Prospectus or supplement (as then amended or supplemented), if required (and not exempted) to the Persons asserting an untrue statement or omission or alleged untrue statement or omission at or prior to the
              written confirmation of the sale of Registrable Securities. In no event shall Brooklyn be liable for fees and expenses of more than two counsels separate from its own counsel for all indemnified parties in connection with any one action or
              separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances.

        

        

        (b)     Indemnification by the Holders. Each Holder agrees, severally but not jointly, to indemnify and hold harmless, to the fullest extent permitted by law, Brooklyn, its directors, officers, employees, stockholders and each
              person who controls Brooklyn (within the meaning of the Securities Act) against any Losses resulting from any untrue statement of a material fact or any omission of a material fact required to be stated in any Registration Statement or
              Prospectus or preliminary Prospectus or amendment or supplement thereto or necessary to make the statements therein not misleading, to the extent, but only to the extent that such untrue statement or omission is contained in any information
              furnished in writing by such Holder, relating to such Holder, to Brooklyn specifically for inclusion in such Registration Statement or Prospectus or amendment or supplement thereto (“Holder Information”). In no event shall the liability of Holder be greater in
              amount than the dollar amount of the proceeds (net of all expense paid by such Holder in connection with any claim relating to this Section
                7 and the amount of any damages such Holder has otherwise been required to pay by reason of such untrue statement or omission) received
              by such Holder upon the sale of the Registrable Securities included in such Registration Statement giving rise to such indemnification obligation.

        

        

        (c)    Conduct of Indemnification Proceedings. Any person entitled to indemnification hereunder shall (i) give prompt written notice to the indemnifying party of any claim with respect to which it seeks indemnification and (ii) permit such indemnifying party to
              assume the defense of such claim with counsel reasonably satisfactory to the indemnified party; provided that any person entitled to indemnification hereunder shall have the right to employ separate counsel and to participate in the defense of such claim, but
              the fees and expenses of such counsel, other than reasonable costs of investigation, shall be at the expense of such person unless (A) the indemnifying party has agreed in writing to pay such fees or expenses, (B) the indemnifying party shall
              have failed to assume the defense of such claim and employ counsel reasonably satisfactory to such person or (C) in the reasonable judgment of any such person, based upon written advice of its counsel, a conflict of interest exists between
              such person and the indemnifying party with respect to such claims (in which case, if the person notifies the indemnifying party in writing that such person elects to employ separate counsel at the expense of the indemnifying party, the
              indemnifying party shall not have the right to assume the defense of such claim on behalf of such person); and provided, further, that the failure of any indemnified party to give written notice as provided herein shall not relieve the indemnifying party of its obligations
              hereunder, except to the extent that such failure to give notice shall materially adversely affect the indemnifying party in the defense of any such claim or litigation. It is understood that the indemnifying party shall not, in connection
              with any proceeding in the same jurisdiction, be liable for fees or expenses of more than two separate firms of attorneys at any time for all such indemnified parties. No indemnifying party will, except with the consent of the indemnified
              party, which shall not be unreasonably withheld or conditioned, consent to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof (i) the giving by the claimant or plaintiff to such
              indemnified party of a release from all liability in respect of such claim or litigation and (ii) a statement as to or an admission of fault, culpability or failure to act by, or on behalf of, any indemnified party.

         

        
          

          8

          
            

          

        

        

        

        (d)     Contribution. If
              for any reason the indemnification provided for in the preceding paragraphs (a) and (b) is unavailable to an indemnified party or insufficient to hold it harmless, other than as expressly specified therein, then the indemnifying party shall
              contribute to the amount paid or payable by the indemnified party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect the relative fault of the indemnified party and the indemnifying party, as
              well as any other relevant equitable considerations. No person guilty of fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act shall be entitled to contribution from any person not guilty of such fraudulent
              misrepresentation. In no event shall the contribution obligation of a Holder be greater in amount than the dollar amount of the proceeds (net of all expenses paid by such holder in connection with any claim relating to this Section 7 and the amount of any damages such
              holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission) received by it upon the sale of the Registrable Securities giving rise to such contribution obligation.

        

        

        8.      Existing Registration Statements. Notwithstanding
              anything herein to the contrary and subject to applicable law and regulation, Brooklyn may satisfy any obligation hereunder to file a Registration Statement or to have a Registration Statement become effective by a specified date by
              designating, by notice to the Holders, a Registration Statement that previously has been filed with the SEC or become effective, as the case may be, as the relevant Registration Statement for purposes of satisfying such obligation, and all
              references to any such obligation shall be construed accordingly; provided that such previously filed Registration Statement may be, and is, amended or, subject to applicable securities laws, supplemented to add the number of Registrable Securities,
              and, to the extent necessary, to identify as selling stockholders those Holders demanding the filing of a Registration Statement pursuant to the terms of this Agreement. To the extent this Agreement refers to the filing or effectiveness of
              other Registration Statements, by or at a specified time and Brooklyn has, in lieu of then filing such Registration Statements or having such Registration Statements become effective, designated a previously filed or effective Registration
              Statement as the relevant Registration Statement for such purposes, in accordance with the preceding sentence, such references shall be construed to refer to such designated Registration Statement, as amended or supplemented in the manner
              contemplated by the immediately preceding sentence.

         

        
          

          9

          
            

          

        

        

        

        9.      Additional Holders; Changes to Shares. Notwithstanding anything to the
              contrary contained herein, in the event of a Seller Transfer (as defined in the Acquisition Agreement) of shares of Common Stock to any of the individuals or entities set forth on Schedule II is completed prior to the time that a Registration
              Statement covering the resale of such shares of Common Stock is declared effective by the SEC, such individual or entity may become a party to this Agreement by executing and delivering a joinder to this Agreement in the form attached hereto
              as Exhibit A, and thereafter shall be deemed an “Additional Holder” for all purposes hereunder. No action or consent by the Holders shall be required for such joinder to this Agreement by such Additional Holder, so long as such Additional Holder has agreed in
              writing to be bound by all of the obligations as a “Holder” hereunder. In the event of any Seller Transfer to a Holder or Additional Holder prior to the time that a Registration Statement covering the resale of such shares of Common Stock is
              declared effective by the SEC, the number of Shares allocated to Novellus LLC on Schedule I shall be decreased and the number of Shares allocated to the applicable Holder on Schedule I or Additional Holder on Schedule II shall be increased, in each case
              by the by the number of shares of Common Stock subject to such Seller Transfer.

        

        

        10.     Miscellaneous.

         

            

        

        (a)     Governing Law.
              This Agreement and any controversy arising out of or relating to this Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to conflict of law principles that would result in the
              application of any law other than the laws of the State of Delaware.

        

        

        (b)    Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed
              an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any
              electronic signature complying with the Electronic Signatures in Global and National Commerce Act, e.g., www.docusign.com) or other
              transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

        

        

        (c)     Construction. As used in this Agreement:

        

        

        (i)     headings used in this Agreement are for convenience of reference only and shall not, for any purpose, be deemed a part of this Agreement;

        

        

        (ii)    any references in this Agreement to a Section, Schedule or Exhibit refer to a Section of, or Schedule or Exhibit attached to, this Agreement, unless specified otherwise;

        

        

        
          (iii)   the words “herein,” “hereof,” “hereby,” “hereto” and “hereunder” refer to this Agreement as a whole;

        

        

        

        (iv)   the words “include,” “includes” and “including” as used in this Agreement shall not be construed so as to exclude any other thing not referred to or described;

        

        

        (v)    the word “or” is not exclusive;

        

        

        (vi)   the definition given for any term in this Agreement shall apply equally to both the singular and plural forms of the term defined;

        

        

        (vii)  whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms;

        

        

        (viii) unless the context otherwise requires, (A) references in this Agreement to an agreement, instrument or other document mean such agreement, instrument or other document as amended, supplemented and modified from
            time to time to the extent permitted by the provisions thereof and (B) references in this Agreement to a statute means such statute as amended from time to time and includes any successor legislation thereto and any rules and regulations
            promulgated thereunder; and

         

        
          

          10

          
            

          

        

        

        

        (ix)   this Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted.

        

        

        (d)      Notices. All notices and other communications under this Agreement shall be in writing and shall be deemed duly given (a) on the date of delivery if delivered
              personally to, or upon other actual receipt by, the party to be notified, (b) if delivered by e-mail, (i) on the date sent if delivered on a Business Day prior to the end of normal business hours of the party to be notified or (ii) otherwise,
              on the first Business Day following the date sent, (c) on the first Business Day following the date of dispatch if delivered utilizing a next-day service by a recognized next-day courier or (d) on the earlier of confirmed receipt or the fifth
              Business Day following the date of mailing if delivered by registered or certified mail, return receipt requested, postage prepaid. All communications shall be sent to the respective Holders at their addresses as set forth on Schedule I or II, or to Brooklyn at its principal office, to the attention
              of the Chief Executive Officer, or by e-mail to hfederoff@brooklynitx.com, or to such other street or e-mail
              address as subsequently modified by written notice given in accordance with this Section 10(d).

        

        

        (e)      Amendments and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be
              waived (either generally or in a particular instance, and either retroactively or prospectively) only with the written consent of Brooklyn and the holders of a majority of the Registrable Securities then outstanding, provided that any provision of this Agreement may be waived by any waiving party on such party’s own behalf, without the consent of any other
              party. Notwithstanding the foregoing, this Agreement may not be amended or terminated and the observance of any term of this Agreement may not
              be waived with respect to any Holder without the written consent of such Holder, unless such amendment, termination, or waiver applies to all Holders in the same fashion (it being agreed that a waiver of the provisions of this Agreement with
              respect to a particular transaction shall be deemed to apply to all Holders in the same fashion if such waiver does so by its terms, notwithstanding the fact that certain Holders may nonetheless, by agreement with Brooklyn, purchase
              securities in such transaction). Brooklyn shall give prompt notice of any amendment or termination of this Agreement or waiver under this Agreement to any party to this Agreement that did not consent in writing to such amendment, termination,
              or waiver. Any amendment, termination, or waiver effected in accordance with this Section 10(e) shall be binding on all parties to this Agreement, regardless of whether any such party has consented to this Agreement. No waivers of or exceptions to any term, condition, or
              provision of this Agreement, in any one or more instances, shall be deemed to be or construed as a further or continuing waiver of any such term, condition, or provision.

        

        

        (f)     Severability. In case any one or more of the provisions contained in this Agreement is for any reason held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other
              provision of this Agreement, and such invalid, illegal, or unenforceable provision shall be reformed and construed so that it will be valid, legal, and enforceable to the maximum extent permitted by law.

        

        

        (g)     Aggregation of Stock. All shares of Registrable Securities held or acquired by Affiliates shall be aggregated together for the purpose of determining the availability of any rights under this Agreement and such Affiliated persons may apportion
              such rights as among themselves in any manner they deem appropriate.

         

        
          

          11

          
            

          

        

        

        

        (h)     Entire Agreement.
              This Agreement (including any Schedules and Exhibits to this Agreement) constitutes the full and entire understanding and agreement among the parties with respect to the subject matter of this Agreement, and any other written or oral agreement relating to the
              subject matter of this Agreement existing between the parties is expressly canceled.

        

        

        (i)     Dispute Resolution. The parties (i) irrevocably and unconditionally submit to the jurisdiction of the state courts of Delaware and any federal court located in the State of Delaware for the purpose of any suit, action or other proceeding
              arising out of or based upon this Agreement, (ii) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of Delaware or any federal court located in the State of
              Delaware, and (iii) waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its
              property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter of
              this Agreement may not be enforced in or by such court. Each party will bear its own costs in respect of any disputes arising under this Agreement.

        

        

        (j)     Waiver of Jury Trial. EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
              BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE
              SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND
              THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY
              TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

        

        

        (k)     Delays or Omissions. No delay or omission to exercise any right, power, or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power, or remedy of
              such nonbreaching or nondefaulting party, nor shall it be construed to be a waiver of or acquiescence to any such breach or default, or to any similar breach or default thereafter occurring, nor shall any waiver of any single breach or
              default be deemed a waiver of any other breach or default heretofore or thereafter occurring. All remedies, whether under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

        

        

        *****

         

        
          

          12

          
            

          

        

        

        

        In Witness Whereof,
          each of the parties has executed this Agreement or caused the same to be executed by its duly authorized representative as of the date first written above.

        

        

        	 	
                Brooklyn ImmunoTherapeutics, Inc.

              
	 	 	 
	 	
                By:

              	
                /s/ Howard J. Federoff

              
	 	 	
                Howard J. Federoff

              
	 	 	
                President

              
	 	 	 
	 	
                /s/ Leonard Mazur

              
	 	
                Leonard Mazur

              
	 	 	 
	 	
                Novellus LLC

              
	 	 	 
	 	
                By:

              	
                /s/ Christopher Rodhe

              
	 	 	
                Chrisopher Rodhe

              
	 	 	
                President

              

         

        
          

          
            

          

        

        

        

        Exhibit A

        

        

        Joinder Agreement

        

        

        Reference is hereby made to the Registration Rights Agreement, dated as of July 16, 2021, as amended from time to time (the “Agreement”), by and among Brooklyn ImmunoTherapeutics, Inc., a Delaware corporation (“Brooklyn”), and the individuals and entities listed on Schedule I thereto. Pursuant to and in accordance with Section
              9 of the Agreement, the undersigned hereby acknowledges that the undersigned has received and reviewed a complete copy of the Agreement and agrees that, upon execution of this Joinder Agreement by the undersigned and Brooklyn, the
          undersigned shall become a party to the Agreement and shall be fully bound by, and subject to, all of the covenants, terms and conditions of the Agreement as though an original party thereto and shall be deemed, and is hereby admitted as a
          “Holder,” as such term is defined in the Agreement, for all purposes thereof and entitled to all the rights incidental thereto.

        

        

        In Witness Whereof,
          the parties hereto have executed the Agreement as of the date set forth below. A signed copy of this Joinder Agreement delivered by e-mail or other means in accordance with Section 9 of the Agreement shall be deemed to have the same legal effect as delivery of an original signed copy of this Joinder Agreement.

        

        

        Date: ___________________

        

        

        	 	 	 
	 	 	 
	 	 	
                Name:

              

        

        

        Agreed and Accepted:

        

        

        	
                Brooklyn ImmunoTherapeutics, Inc.

              	 
	 	 	 
	
                By:

              	 	 
	 	
                Name:

              	 
	 	
                Title:azek-ex101_15.htm

Exhibit 10.1

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (“Agreement”), dated as of the 14th day of July, 2021, by and between CPG International LLC, a Delaware limited liability company doing business as The AZEK Company, and its successors and affiliates ( the “Employer”) and Peter Clifford (the “Executive”).

RECITALS

WHEREAS, Employer desires to procure the services of Executive as its Senior Vice President & Chief Financial Officer and Executive is willing to be employed by the Employer upon the terms and subject to the conditions hereinafter set forth; 

WHEREAS, Executive acknowledges and agrees that executing this Agreement is a necessary precondition for Executive to accept the offer of employment by the Employer and to receive the corresponding compensation and benefits;

WHEREAS, Executive acknowledges that this Agreement is reasonable and necessary because the Employer will provide Executive with access to its confidential, proprietary information, trade secrets and customers and prospective customers, all of which the Employer is entitled to protect from disclosure, misappropriation and/or unfair exploitation; and

WHEREAS, Executive further acknowledges that during Executive’s employment with the Employer, Executive may have access to certain confidential, proprietary information and trade secrets belonging to the Employer’s subsidiaries and/or affiliates, including but not limited to The AZEK Company Inc. (“AZEK”), CPG Building Products LLC, WES, LLC (including UltraLox Technology, LLC), CPG Sub I Corporation, Scranton Products Inc. (including Sanatec Sub I Corporation and Santana Products Inc.), Vycom Corp., Versatex Holdings, LLC (including Versatex Building Products, LLC), Return Polymers, Inc. and any other entities that are or become subsidiaries of, successors to or otherwise affiliated with the Employer on or after the date of this Agreement (collectively, the "Affiliates"), and Executive has an obligation not to disclose, misappropriate, and/or unfairly benefit from the Affiliates’ confidential, proprietary information, trade secrets, customers, prospective customers and good will.

NOW, THEREFORE, intending to be legally bound, and for good and valuable consideration, the Employer and Executive hereby agree as follows: 

PROVISIONS

1.Term and Duties.  The term of this Agreement shall commence on August 3, 2021 (the “Hire Date”) and continue during Executive’s employment with the Employer and thereafter for those provisions designed to survive employment. Executive’s employment shall be at-will and may be terminated by either party pursuant to Section 4. Executive acknowledges that Executive has continuing obligations under this Agreement including, but not limited to, Sections 5, 6, 7 and 21, in the event that Executive’s employment is terminated, regardless of reason. Executive shall serve as the Employer’s Senior Vice President & Chief Financial Officer beginning August 16, 2021. Executive’s title/position may change over the course of this Agreement by the Employer at its discretion subject to the terms herein. Subject to the provisions of this Agreement, Executive shall devote Executive’s best efforts and 

 

 

abilities to the performance of Executive’s duties on behalf of the Employer and to the promotion of its interests consistent with and subject to the direction of the Chief Executive Officer of Employer.

2.Exclusivity.  Executive shall devote all of Executive’s business time, energies, attention and abilities to the operation of the business of the Employer and shall not be actively involved in any other trade or business or as an employee of any other trade or business.  Executive acknowledges and agrees that Executive owes a fiduciary duty of loyalty, fidelity and allegiance to act at all times in the best interests of the Employer and to do no act which would directly or indirectly injure the Employer’s business, interests or reputation.  In keeping with Executive’s fiduciary duties to the Employer, the Employer agrees that Executive shall not become involved in a conflict of interest with the Employer, or upon discovery thereof, allow such a conflict to continue.  Moreover, Executive shall not engage in any activity that might involve a possible conflict of interest without first obtaining approval from the Employer.  It is understood that the foregoing provisions of this Section 2 are not intended to prevent Executive from serving on the board of directors or in a similar capacity for another business, religious, charitable or community organization, provided such service does not substantially interfere with the performance by Executive of his duties and responsibilities hereunder or violate Sections 5, 6 or 7 of this Agreement.

3.Compensation and Equity Participation.

(a)Base Compensation.  In consideration of the services to be rendered by Executive, Employer shall pay to the Executive base compensation at a rate of Six Hundred Thousand Dollars $600,000.00 (USD) per year (“Base Compensation”) (pro-rated for any partial years).  The Base Compensation shall be paid to Executive in accordance with the Employer’s standard payroll policies. Executive’s Base Compensation may be increased from time to time by the Employer at its discretion subject to the terms herein.  Executive shall not be entitled to receive the salary and benefits that are associated with the offered position unless Executive first executes and agrees to be bound by this Agreement.

(b)Annual Bonus and Long-Term Incentive Plan.  Executive will be eligible to participate in any annual bonus program made available to senior executives of the Employer (the “Bonus Plan”).  The Executive’s target bonus opportunity under the Bonus Plan for each year shall equal seventy-five percent (75%) of the Base Compensation.  The actual annual bonus paid for any year shall be subject to the terms and conditions of the Bonus Plan and may be lower or higher than the target amount, based on the attained level of achievement of the financial and individual performance objectives, and shall be subject to proration for any partial year of employment.  Participation is subject to Executive’s continuing to be employed on the date of payment unless (i) the Executive is employed by the Employer as of the last date of the period during which the achievement of the bonus is measured and (ii) the Executive’s employment is thereafter terminated pursuant to death or Disability (as defined in Section 4€ of this Agreement), by the Employer without Cause (as defined in Section 4(d) of this Agreement), or pursuant to a termination by Executive with Good Reason (as defined in Section 4(f) of this Agreement).

As a Senior Vice President of Employer, Executive will also be eligible to receive a grant of Restricted Stock Units (“RSUs”), Stock Options (“SOPs”) and Performance Share Units (“PSUs”) under The AZEK Company Inc. 2020 Omnibus Incentive Compensation Plan (the “Plan”).  The Executive’s target equity award is $1,000,000. The actual award may vary from the target depending on 

2

 

a number of factors, including, but not limited to, individual and company performance. Executive must be employed on the grant date to receive the award. There is no guarantee of employment or that the program will be offered in future years, or, if offered, that it will be similar to the current program. Any RSUs, SOPs and PSUs granted shall be subject to the terms and conditions set forth in the Plan, as it may be amended from time to time, and a grant agreement between the Executive and AZEK documenting such RSU, SOP and PSU grant, respectively.

In addition to the foregoing, as soon as practicable following the Hire Date or as otherwise mutually agreed, the Executive shall receive an initial equity grant valued at USD $2,300,000. The number of equity units awarded shall be determined based on the “fair market value” (closing price as reported on the New York Stock Exchange on Executive’s acceptance date of his offer of employment) of shares of AZEK’s Class A common stock. The equity grant shall be subject to the vesting and other terms and conditions of the grant agreement governing the award between Executive and AZEK as well as the terms of the Plan. 

Pursuant to Section 3.6.1 of The AZEK Companies Inc.’s 2020 Omnibus Incentive Compensation Plan (the “Incentive Compensation Plan”), as of the Change in Control Date (as defined in the Incentive Compensation Agreement) any outstanding performance-based awards shall be deemed earned at the target level at the date of the Change in Control with respect to all open performance periods and will cease to be subject to any performance conditions but will continue to be subject to time-based vesting following the Change in Control in accordance with the original performance period.

(c)Benefits.  During Executive’s employment, Executive shall be eligible to participate in such benefit programs offered by the Employer, subject to the generally applicable terms and conditions of the plan, benefit or program in question.  All matters of eligibility for coverage or benefits under any benefit plan or Employer policy shall be determined in accordance with the provisions of such plan or policy.  The Employer reserves the right to change, alter or terminate any benefit in its sole discretion.  The Executive shall be entitled to four (4) weeks’ vacation (pro-rated for any partial years) per calendar year, to be used subject to the terms of the Employer’s applicable policies and procedures.  Employer further agrees to pay or reimburse the Executive for reasonable relocation expenses in accordance with Employer’s executive relocation program.

4.Termination of Employment.

(a)Employer may terminate the Executive’s employment for any reason or no reason.  If the Executive’s employment is terminated for any reason, the Employer shall be obligated to pay the Executive all earned but unpaid Base Compensation through the date of termination, unpaid expense reimbursements to which the Executive is entitled and accrued but unused vacation (the “Accrued Amounts”).  If the Executive’s employment is terminated by Employer other than for Cause or is terminated by Executive for Good Reason, the Employer shall be obligated, in addition to the payment of the Accrued Amounts, to continue to pay to the Executive the Executive’s Base Compensation at the rate then in effect for a period of twelve (12) months following the termination date and the Employer will also pay a pro-rated annual bonus for the year at target (collectively, the “Termination Payments”).  Employer’s obligation to make the Termination Payments shall be conditioned upon (i) Executive’s compliance with the covenants set forth in Section 7 (the “Post-Employment Restrictive Covenants”) and Executive’s obligations with respect to Employer’s Confidential Information (as defined below) and (ii) the Executive’s execution, delivery and non-revocation of a valid and enforceable general release of 

3

 

claims in a form reasonably acceptable to Employer (the “Release”) that becomes effective within sixty (60) days following the date of termination of employment.  Subject to Section 4(b), the Termination Payments shall be paid in equal installments over the twelve-month period following Executive’s termination of employment on the Employer’s regular payroll dates commencing on the first payroll date following the sixtieth (60th) day after the date of termination of employment with the first such payment, including the aggregate amount that would have been paid to the Executive during the first sixty (60) days following the date of termination had the delay provided herein not applied.  The Accrued Amounts shall be paid within sixty (60) days following the termination date.  In addition, if the Executive’s employment is terminated by the Employer or any successor entity thereto without Cause, or is terminated by the Executive for Good Reason, within two (2) years after a Change in Control, as defined in the Incentive Compensation Plan, (i) each Award (as defined in the Incentive Compensation Plan) granted to the Executive prior to the Change in Control will become fully vested (including the lapsing of all restrictions and conditions) and, as applicable, exercisable and (ii) any Shares (as defined in the Incentive Compensation Plan) deliverable pursuant to restricted stock units will be delivered promptly (but no later than 15 days) following the Executive’s termination of Employment (as defined in the Incentive Compensation Plan)

(b)If the Executive is a “specified employee” for purposes of Section 409A of the Internal Revenue Code of 1986, as amended, any payments required to be made pursuant to this Section 4 which are subject to Section 409A shall not commence until six (6) months from the termination date, with the first payment to be equal to the aggregate amount that would have been paid to the Executive under this Section 4 during the first six (6) months immediately following the termination date had this Section 4(b) not been applicable.  Each installment of the Termination Payments shall be considered a “separate payment” for purposes of Section 409A.  Notwithstanding any provision of this Agreement to the contrary, Executive acknowledges and agrees that the Employer shall not be liable for, and nothing provided or contained in this Agreement shall be construed to obligate or cause the Employer to be liable for, any tax, interest or penalties imposed on Executive related to or arising with respect to any violation of Section 409A.

(c)The foregoing payments upon termination of the Executive’s employment as described in this Section 4 shall constitute the exclusive severance payments due to the Executive upon a termination of Executive’s employment.  For the avoidance of doubt, Executive is not entitled to any Termination Payments in the event that Executive resigns (regardless of reason).

(d)“Cause” as used herein shall mean the Executive’s (i) commission of an act which constitutes common law fraud or embezzlement (other than occasional, customary and de minimis use of Employer’s property for personal purposes); (ii) indictment for or conviction or entry of a plea of guilty or nolo contendere to (A) a felony or (B) any crime (whether or not a felony) involving moral turpitude; (iii) commission of any intentional tortious or unlawful act in either such case causing material harm to Employer’s business, standing or reputation or the business, standing or reputation of any of Employer’s Affiliates; (iv) gross negligence in the performance of Executive’s duties hereunder; (v) breach of Executive’s duty of loyalty or care to Employer or any of its Affiliates; (vi) other misconduct that is materially detrimental to Employer or any of its Affiliates; (vii) refusal or failure to perform the Executive’s duties or the deliberate and consistent refusal to conform to or follow any reasonable policy adopted by the Employer, in each case after receiving written notice describing Executive’s noncompliance and being given ten (10) business days to cure (to the extent curable) such non-compliance; (viii) breach of this Agreement or any other agreement with or for the benefit of Employer 

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or any of its Affiliates to which the Executive is a party or by which the Executive is bound, which breach is not cured (to the extent curable) within ten (10) business days following written notice from Employer; or (ix) Executive’s death or Disability.

 

(e)“Disability” as used herein shall mean that Executive is unable to perform the essential functions of Executive’s job, with a reasonable accommodation, due to illness or injury for such duration as entitles Executive to long-term disability payments under the Employer plan in which he participates.

 

(f)“Good Reason” as used herein shall mean a termination by Executive of his employment within ninety (90) days following the occurrence of any of the following events without the Executive’s consent that remains uncured for ten (10) business days after the receipt by Employer of written notice thereof from Executive: (i) a material reduction in Base Salary; (ii) a materially adverse change in title, duties or responsibilities (including reporting responsibilities); or (iii) a relocation of Executive’s principal place of business to a location that is more than 50 miles from Chicago, Illinois on the date of Executive’s employment commencement.

 

5.Nondisclosure of Confidential Information.  

(a)Executive recognizes and acknowledges that the Employer and its Affiliates continually obtain and develop Confidential Information (defined below).  During Executive’s employment and at all times thereafter, Executive shall hold in strictest confidence and shall not disclose, use, or publish any of the Confidential Information, except as such disclosure, use or publication may be required in connection with Executive’s work for the Employer.  If at any time (including after termination of Executive’s employment with the Employer), a person, entity, governmental agency or court of competent jurisdiction requests or demands that Executive disclose Confidential Information, to the extent permitted under applicable law or regulation, Executive shall promptly notify the Employer and shall cooperate with the Employer and/or its Affiliates in their efforts to prevent or limit such disclosure.  Disclosure of Confidential Information by Executive or by anyone else, whether done intentionally or inadvertently, shall not affect Executive’s continuing obligations under this Agreement as to the disclosed Confidential Information.  Notwithstanding anything herein to the contrary, Executive’s obligation to protect Confidential Information shall not prohibit Executive from disclosing matters that are protected under any applicable whistleblower laws, including reporting possible violations of laws or regulations, or responding to inquiries from, or testifying before, any governmental agency or self-regulating authority, all without notice to or consent from the Employer.  Executive is hereby notified that the immunity provisions in Section 1833 of title 18 of the United States Code provide that an individual cannot be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that is made (1) in confidence to federal, state or local government officials, either directly or indirectly, or to an attorney, and is solely for the purpose of reporting or investigating a suspected violation of the law, (2) under seal in a complaint or other document filed in a lawsuit or other proceeding, or (3) to Executive’s attorney in connection with a lawsuit for retaliation for reporting a suspected violation of law (and the trade secret may be used in the court proceedings for such lawsuit) as long as any document containing the trade secret is filed under seal and the trade secret is not disclosed except pursuant to court order.

(b)“Confidential Information” as used herein includes, but is not limited to, the Employer’s and its Affiliates’ trade secrets, proprietary information and confidential information, which 

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may include, but is not limited to, technical information, such as methods, processes, formulas, compositions, inventions, product development, product designs, computer programs, special hardware, product hardware, related software development, research projects, improvements, systems methods and other confidential technical data, and business information, such as sales, sales volume, sales methods, sales proposals, customers and prospective customers, identity of key purchasing personnel in the employ of customers and prospective customers, proposals, sales leads, profit margins, service reports, amount or kind of customers’ purchases from the Employer and/or its Affiliates, sources of supply, supply costs, system documentation, pricing data and policies (including general price lists and prices charged to specific customers), and business methods, strategies, production or merchandising systems or plans. 

6.Assignment of Intellectual Property.  Executive assigns to the Employer any rights Executive may have or acquire in the Confidential Information, and in any other intellectual property developed by Executive in whole or in part while employed by the Employer, including without limitation any development rights, drawings, patents, copyrights, and the like.  Executive agrees that all such intellectual property is the sole property of the Employer and its assigns.  Executive irrevocably designates and appoints the Employer and its duly authorized officers and agents as Executive’s agent and attorney in fact, which appointment is coupled with an interest, to act for and on Executive’s behalf to execute, verify and file any documents and to do all other lawfully permitted acts to further the purposes of this assignment, with the same legal force and effect as if executed by Executive.  

7.Post-Employment Restrictions.  In order to protect the business interests and good will of the Employer and its Affiliates and to protect the Confidential Information, and in consideration of the provisions of this Agreement, Executive covenants and agrees as follows:

(a)Non-solicitation of Customers or Prospective Customers.  Executive agrees that during Executive’s employment and for the twenty four (24) month period following Executive’s termination of employment with the Employer (regardless of reason), Executive shall not, as an agent or employee, or on behalf of any person or entity, directly or indirectly (1) solicit, attempt to obtain business from, accept business from, do business with or service any Customers or Prospective Customers (except that this non-solicitation provision shall not apply if Executive is acting on the Employer’s behalf), (2) induce or attempt to induce any Customer or Prospective Customer to terminate or reduce its relationship or otherwise cease doing business in whole or in part with the Employer or any of its Affiliates or (3) interfere with any relationship, contractual or otherwise, between the Employer or any of its Affiliates and any of its Customers or Prospective Customers.  

(i)“Customer” as used herein shall mean any person or entity that procured any products or services from the Employer or any of its Affiliates during the preceding two (2) years.  

(ii)“Prospective Customers” as used herein shall mean any person or entity that Executive, Employer or the Affiliates solicited, contacted and/or communicated with on the behalf of the Employer or any of its Affiliates for business purposes during the preceding two (2) years. 

(b)Non-solicitation of Employees and Independent Contractors.  

(i)Executive agrees that during Executive’s employment with the Employer and for the twenty-four (24) month period following termination of Executive’s employment (regardless 

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of reason), Executive shall not, directly or indirectly, induce or attempt to induce any Employee to terminate employment, hire or participate in the hiring of any Employee or interfere with or attempt to disrupt the relationship, contractual or otherwise, between the Employer or any of the Affiliates and any Employee.  “Employee” as used herein shall mean any person employed by the Employer or any of its Affiliates or any person who was employed by the Employer or any of its Affiliates during the one (1) year preceding Executive’s termination of employment.

(ii)Executive agrees that during Executive’s employment and for the twenty-four (24) month period following Executive’s termination of employment with the Employer (regardless of reason), Executive shall not, directly or indirectly, induce or attempt to induce any person or entity who is engaged by the Employer or any of its Affiliates as an independent contractor to terminate or change its relationship with the Employer or its Affiliates.

(c)Non-Competition.  Because of Employer’s legitimate business interest as described herein and the good and valuable consideration offered to Executive, Executive agrees that during Executive’s employment with the Employer and for the twenty four (24) month period following termination of Executive’s employment (regardless of reason), Executive shall not engage, directly or indirectly, whether as a consultant, independent contractor, agent, representative, employee, advisor, owner (except in the case of passive ownership of less than five percent (5%) of any publicly traded corporation) or otherwise, alone or in association with any other person, corporation or other entity, in any Competing Business in the United States.

(i)“Competing Business” shall mean any individual, corporation, partnership, business or other entity that provides or attempts to provide any products or services that are the same or similar to any products or services offered, under development or planned to be offered by the Employer or any of its Affiliates.

(ii)Executive acknowledges that the restrictions set forth in this Section extend nationwide.  Executive further acknowledges that the geographic limitation in the restriction set forth above is reasonable because the Employer and the Affiliates offer their products and services and/or plan to offer their products and services throughout this geographic market.  Executive further covenants and agrees that the geographic scope, length of term and types of activities restricted (including non-competition restrictions) contained in this Agreement are reasonable and necessary to protect the legitimate business interests of the Employer and the Affiliates because of the scope of the Employer’s business and its relationship with the Affiliates, which share Confidential Information on a need-to-know basis.  Executive acknowledges that these non-competition restrictions are reasonable and necessary and will not prevent Executive from being gainfully employed.

(d)Enforceability.  If a court of competent jurisdiction determines that one or more of these Post-Employment Restrictions are so broad as to be unenforceable, then such provision is to be reduced in scope or length, as the case may be, to the extent required to make it enforceable.  The foregoing is not an admission or evidence that any of the terms or conditions of this Agreement are unreasonable.

(e)Tacking.  If Executive violates any of the above Post-Employment Restrictions, the time period for such restriction shall be extended by that number of days which equals the aggregate of all days during which at any time any such violations occurred.

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(f)Notification by the Employer.  Executive consents to the Employer and any of its Affiliates providing notice to any person or entity regarding Executive’s Post-Employment Restrictions under this Agreement.

(g)Forfeiture of Termination Payments.  In the event Executive violates the Post-Employment Restrictions or confidentiality obligations as set forth in this Agreement in any way, Executive’s right to receive or retain any Termination Payment, as described in Section 4, immediately ceases, and Executive must forfeit and return to the Employer all Termination Payments paid after the date of the first violation.

8.Return of Employer Property.  Upon termination of Executive’s employment for any reason, Executive shall deliver to the Employer any and all Employer equipment and property, access codes, documents, drawings, notes, memoranda, specifications, devices and formulas, together with all copies thereof, and any other material (including, but not limited to, email messages and other material in electronic format) containing or disclosing any Confidential Information or other information regarding the Employer.

9.Consideration.  The Executive acknowledges and agrees that the consideration set forth in this Agreement and the rights and benefits hereunder are all and singularly valuable consideration, which is sufficient for any or all of the Executive’s covenants set forth herein.

10.No Prior Agreements.  The Executive represents and warrants that Executive’s performance of all the terms of this Agreement does not and shall not breach any fiduciary or other duty or any covenant, agreement or understanding (including, without limitation, any agreement relating to any proprietary information, knowledge or data acquired in confidence, trust or otherwise) to which Executive is a party or by the terms of which he may be bound.  The Executive further covenants and agrees not to enter into any agreement or understanding, either written or oral, in conflict with the provisions of this Agreement.

11.Equitable Relief.  Executive stipulates and agrees that any breach of Sections 5, 6, 7 and/or 21 of this Agreement by Executive will result in immediate and irreparable harm to the Employer and the Affiliates, the amount of which will be extremely difficult to ascertain, and that the Employer and the Affiliates could not be reasonably or adequately compensated by damages in an action at law.  For these reasons, the Employer and the Affiliates shall have the right, without objection from Executive, to obtain such preliminary, temporary or permanent injunctions or restraining orders or decrees as may be necessary to protect the Employer and the Affiliates against, or on account of, any breach by Executive of the provisions of this Agreement without requiring the Employer or the Affiliates to post any bond.  Such right to equitable relief is in addition to all other legal remedies the Employer and the Affiliates may have to protect their rights.  

12.Withholding.  All amounts paid to the Executive under this Agreement shall be subject to withholding and other employment taxes imposed by applicable law.  The Executive shall be solely responsible for the payment of all taxes imposed on him relating to the payment or provision of any amounts or benefits hereunder.

13.Notices.  All notices, requests, consents and demands by the parties hereto shall be delivered by hand, by confirmed facsimile or email transmission, by recognized national overnight 

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courier service or by deposit in the United States mail, postage prepaid, by registered or certified mail, return receipt requested, addressed to the party to be notified at the addresses set forth below:

if to the Executive:

To the most recent address for the Executive that appears on records of the Employer

Attention: Peter Clifford

Email: [redacted]

 

if to the Employer:

c/o CPG International LLC dba The AZEK Company, LLC

1330 West Fulton Street

Suite 350

Chicago, IL 60607

Attention: Paul Kardish, Chief Legal Officer

Email: [redacted] and [redacted]

 

Notices shall be effective immediately upon personal delivery or facsimile transmission, one (1) business day after deposit with an overnight courier service or three (3) business days after the date of mailing thereof.  Other notices shall be deemed given on the date of receipt.  Any party hereto may change the address specified herein by written notice to the other parties hereto.

14.Entire Agreement.  This Agreement is the final, complete and exclusive agreement of the parties with respect to its subject matter and supersedes and merges all prior or contemporaneous discussions or agreements, whether written or oral, regarding the subject matter of this Agreement.  No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing and signed by the party to be charged.  Any subsequent change or changes in Executive’s duties, salary, or benefits will not affect the validity or scope of this Agreement.

15.Severability.  In the event that any provision of this Agreement or application thereof to anyone or under any circumstance is found to be invalid or unenforceable in any jurisdiction to any extent for any reason, such invalidity or unenforceability shall not affect any other provision or application of this Agreement which can be given effect without the invalid or unenforceable provision or application and shall not invalidate or render unenforceable such provision or application in any other jurisdiction.

16.Remedies; Waiver.  No remedy conferred upon Employer by this Agreement is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition to any other remedy given hereunder or now or hereafter existing at law or in equity.  No delay or omission by Employer in exercising any right, remedy or power hereunder or existing at law or in equity shall be construed as a waiver thereof, and any such right, remedy or power may be exercised by the party possessing the same from time to time and as often as may be deemed expedient or necessary by such party in its sole discretion.

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17.Counterparts.  This Agreement may be executed in several counterparts, each of which is an original and all of which shall constitute one instrument.  It shall not be necessary in making proof of this Agreement or any counterpart hereof to produce or account for any of the other counterparts.

18.Choice of Law, Jurisdiction and Venue.  Executive shall be receiving resources and Confidential Information from Delaware and agrees to its laws governing this Agreement.  The parties further agree that the state and federal courts sitting in Wilmington, Delaware shall be the exclusive forum for the resolution of any dispute arising from or relating to this Agreement unless the Employer, in its sole discretion, brings a claim in another court of competent jurisdiction.  Each party consents to the personal jurisdiction and venue of any such federal or state court.  Executive irrevocably waives Executive’s right to object to or challenge the above selected forum on the basis of inconvenience or unfairness.

19.Successors and Assigns.  The Employer shall have the right to assign this Agreement to a successor or assign, and Executive agrees to be obligated by this Agreement to any successor, assign or surviving entity.  Any successor to or assignee of the Employer is an intended third-party beneficiary to this Agreement.  Executive may not assign this Agreement.  Employer further acknowledges and agrees that the Affiliates are third-party beneficiaries to this Agreement and shall be entitled to enforce this Agreement and the provisions herein to the extent Executive discloses or misappropriates Confidential Information belonging to them or unfairly competes with or solicits their customers, prospective customers, employees or independent contractors.  

20.Headings.  The captions and headings contained in this Agreement are for convenience only and shall not be construed as a part of this Agreement.

21.Non-disparagement.  During Executive’s employment and thereafter, Executive shall not make or publish (or assist or participate in the making or publication of) any untruthful, negative or derogatory comments, oral or written, directly, indirectly or by innuendo about the Employer, its officers, directors or employees, as well as the Affiliates and their officers, directors or employees, or otherwise malign the Employer’s or its Affiliates’ businesses or reputations. This Section 21 does not, in any way, restrict or impede the Executive from exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agent, provided that such compliance does not exceed that required by the law, regulation, or order. The Executive shall promptly provide written notice of any such order to Employer. During the Executive’s employment and thereafter, officers, directors and other senior management of the Employer and its Affiliates shall not make or publish (or assist or participate in the making or publication of) any untruthful, negative or derogatory comments, oral or written, directly, indirectly or by innuendo about the Executive or otherwise malign the Executive’s business and professional reputation. 

22.Survivability.  The terms of Sections 5, 6, 7 and 21 of this Agreement survive the termination of Executive’s employment with the Employer for any reason.

23.Section 409A.

(a)This Agreement is intended to comply with the requirements of Section 409A or an applicable exemption. Accordingly, all provisions of this Agreement shall be construed and 

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interpreted to comply with Section 409A. No payments provided for under this Agreement that are subject to Section 409A may be accelerated unless such acceleration is permitted by Section 409A. In no event shall the Executive, directly or indirectly, designate the calendar year of payment. Each payment pursuant to this Agreement is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b)(2). Unless otherwise expressly provided in writing, any payment of compensation by the Employer to Executive pursuant to this Agreement shall be made within seventy-five (75) days after the end of the later of the calendar year or the Employer’s fiscal year in which the Executive’s right to such payment vests (i.e., is not subject to a substantial risk of forfeiture for purposes of Section 409A). Neither the Employer nor the Executive, individually or in combination, may accelerate, offset or assign any such deferred payment, except in compliance with Section 409A, and no amount shall be paid prior to the earliest date on which it is permitted to be paid under Section 409A. Notwithstanding anything herein to the contrary, no amendment may be made to this Agreement if it would cause the Agreement or any payment hereunder to not be in compliance with the requirements of Section 409A. However, the terms set forth in this Agreement may be reformed to the extent necessary to comply with Section 409A, while preserving to the extent practicable the intended treatment of the original Agreement. 

(b)All reimbursements and in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A, including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during the Executive’s lifetime (or during a shorter period of time specific by this Agreement); (ii) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a single calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year; (iii) the reimbursement of an eligible expense will be made on or before the last day of the calendar year following the year in which the expense is incurred; and (iv) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

(c)No payments or benefits to be made to the Executive under this Agreement upon a termination of employment and that are subject to Section 409A shall be made unless such termination of employment constitutes a “separation from service” as defined in Section 409A.  

[signature pages follows]

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date and year first above written.

CPG INTERNATIONAL LLC

By: /s/ Jesse Singh
Name:  Jesse Singh
Title:  Chief Executive Officer

EXECUTIVE

/s/ Peter Clifford
Peter Clifford

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