Document:

mchx-ex101_7.htm

 

 

 

 

Exhibit 10.1

 

Silicon Valley Bank

 

U.S. Small Business Administration Paycheck Protection Program

Note

 

			
	
SBA Loan No.
	
4123277210

	
SBA Loan Name
	
Borrower Legal Name
	
 

Marchex, Inc.

	
DBA
	
 

	
Date
	
5/4/2020

	
Loan Amount
	
$ 3970587

	
Interest Rate
	
1.0% per annum

	
Borrower
	
Marchex, Inc.

	
Operating Company
	
Not applicable

	
Lender
	
Silicon Valley Bank

 

 

	
 
	
1.
	
PROMISE TO PAY.

 

In   return   for   the   Loan,   Borrower   promises   to   pay   to   the   order   of   Lender   the   amount   of

$  3970587Dollars, interest on the unpaid principal

balance, and all other amounts required by this Note.

 

	
 
	
2.
	
DEFINITIONS.

 

“Collateral” means any property taken as security for payment of this Note or any guarantee of this Note.

 

“CARES Act” means the Coronavirus Aid, Relief, and Economic Security Act.

 

“Guarantor” means each person or entity that signs a guarantee of payment of this Note. “Loan” means the loan evidenced by this Note.

 

“Loan Documents” means the documents related to this loan signed by Borrower, any Guarantor, or anyone who pledges collateral.

 

“Paycheck Protection Program” means loan program created by Section 1102 of the CARES Act.

 

 

1

 

SBA Form 147 (06/03/02) Version 4.1

 

SVB Confidential

 
 

 

“Per Annum” means for a year deemed to be comprised of 360 days.

 

“SBA” means the Small Business Administration, an Agency of the United States of America.

 

	
 
	
3.
	
PAYMENT TERMS: Borrower must make all payments at the place Lender designates. The payment terms for this Note are:
	
 

 

	
 
	
A.
	
Conditions Precedent to Disbursement of Loan Proceeds.

 

Before the funding of the Loan, the following conditions must be satisfied:

 

	
 
	
1.
	
Lender has approved the request for the Loan.

 

	
 
	
2.
	
Lender has received approval from SBA to fund the Loan.

 

	
 
	
B.
	
No Payments During Deferral Period. There shall be no payments due by Borrower during the six- month period beginning on the date of this Note (the “Deferral Period”). However, during the Deferral Period interest will accrue at the Interest Rate on the unpaid principal balance computed on the basis of the actual number of days elapsed in a year of 360 days.
	
 

 

	
 
	
C.
	
Principal and Interest Payments. Commencing one month after the expiration of the Deferral Period, and continuing on the same day of each month thereafter until the Maturity Date, Borrower shall pay to Lender monthly payments of principal and interest, each in such equal amount required to fully amortize the principal amount outstanding on the Note on the last day of the Deferral Period by the Maturity Date.
	
 

 

	
 
	
D.
	
Maturity Date. On the date which is twenty-four (24) months from the date of this Note (the “Maturity Date”), Borrower shall pay to Lender any and all unpaid principal plus accrued and unpaid interest plus interest accrued during the Deferral Period. This Note will mature on the Maturity Date.
	
 

 

	
 
	
E.
	
Not a Business Day. If any payment is due on a date for which there is no numerical equivalent in a particular calendar month then it shall be due on the last day of such month. If any payment is due on a day that is a Saturday, Sunday or any other day on which California chartered banks are authorized to be closed, the payment will be made on the next business day.
	
 

 

	
 
	
F.
	
Payment Allocation. Payments shall be allocated among principal and interest at the discretion of Lender unless otherwise agreed or required by applicable law (including the CARES Act). Notwithstanding, in the event the Loan, or any portion thereof, is forgiven pursuant to the Paycheck Protection Program under the federal CARES Act, the amount so forgiven shall be applied to principal.
	
 

 

	
 
	
F.
	
Prepayments. Borrower may prepay this Note at any time without payment of any penalty or premium.
	
 

 

2

 

SBA Form 147 (06/03/02) Version 4.1

 

SVB Confidential

 
 

 

	
 
	
G.
	
Borrower Certifications.

 

Borrower certifies to Lender as follows:

 

	
 
	
1.
	
Current economic uncertainty makes this Loan necessary to support the ongoing operations of Borrower.
	
 

 

	
 
	
2.
	
Loan funds will be used by Borrower to retain its workers and maintain its payroll or make its mortgage payments, lease payments, and utility payments.
	
 

 

	
 
	
3.
	
For the period beginning on February 15, 2020 and ending on December 31, 2020, Borrower did not receive, and agrees it will not apply for or receive, another loan under the Paycheck Protection Program.
	
 

 

	
 
	
4.
	
Borrower was in operation on February 15, 2020 and (i) had employees for whom it paid salaries and payroll taxes or (ii) paid independent contractors as reported on a 1099-Misc.
	
 

 

	
 
	
5.
	
Borrower has reviewed and understands Sections 1102 and 1106 of the CARES Act and the related guidelines and has completed the Application, including Borrower’s eligibility in conformity with those provisions.
	
 

 

	
 
	
6.
	
Borrower has taken its “affiliates” (as defined by the SBA) into account when determining the number of employees and the total amount of loans permitted under the Paycheck Protection Program.
	
 

 

	
 
	
7.
	
Borrower is a small business concern or is otherwise eligible to receive a covered loan.

 

	
 
	
8.
	
The person who has completed and signed the application, this Note and the Loan Documents has been validly authorized by Borrower to enter into borrowings on behalf of Borrower.
	
 

 

	
 
	
H.
	
Agreements.

 

Borrower understands and agrees, and waives and releases Lender, its affiliates and their respective directors, officers, agents and employees, as follows:

 

	
 
	
1.
	
The Loan will be made under the SBA’s Paycheck Protection Program. Accordingly, this Note and the other Loan Documents must be submitted to and approved by the SBA. There is limited funding available under the Paycheck Protection Program and accordingly, all applications submitted will not be approved by the SBA.
	
 

 

	
 
	
2.
	
Lender is participating in the Payroll Protection Program to help businesses impacted by the economic impact from COVID-19. However, Lender anticipates high volumes and there may be processing delays and system failures along with other issues that interfere with submission of Borrower’s application to SBA. Lender does not represent or guarantee that it will submit the application while SBA funding remains available under the Payroll Protection Program or at all. Borrower hereby agrees that Lender is not responsible or liable to Borrower or any of its affiliates (i) if the Lender does not submit Borrower’s application to the SBA until after the date that SBA stops approving
	
 

 

3

 

SBA Form 147 (06/03/02) Version 4.1

 

SVB Confidential

 
 

 

applications under the Paycheck Protection Program, for any reason or (ii) if the application is not processed by Lender. Borrower forever releases and waives any claims against Lender, its affiliates and their respective directors, officers, agents and employees concerning failure to obtain the Loan. This release and waiver applies to, but is not limited to, any claims concerning Lender’s (i) pace, manner or systems for processing or prioritizing applications, or (ii) representations by Lender regarding the application process, the Paycheck Protection Program, or availability of funding. This agreement to release and waiver supersedes any prior communications, understandings, agreements or communications on the issues set forth herein.

 

	
 
	
3.
	
Forgiveness of the Loan is only available for principal that is used for the limited purposes that expressly qualify for forgiveness under SBA requirements, and that to obtain forgiveness, Borrower must request forgiveness from the Lender, provide documentation in accordance with the SBA requirements, and certify that the amounts Borrower is requesting to be forgiven qualify under those requirements. Borrower also understands that Borrower shall remain responsible under the Loan for any amounts not forgiven, and that interest payable under the Loan will not be forgiven, but that the SBA may pay the Loan interest on forgiven amounts.
	
 

 

	
 
	
4.
	
Forgiveness of the Loan is not automatic and Borrower must request forgiveness of the Loan from Lender. Borrower is not relying on Lender for its understanding of the requirements for forgiveness such as eligible expenditures, necessary records/documentation, or possible reductions due to changes in number of employees or compensation. Borrower agrees that will consult the SBA’s program materials and consult with its own counsel regarding the criteria forgiveness.
	
 

 

	
 
	
5.
	
The Loan Documents are subject to review, and Borrower may not receive the Loan. The Loan also remains subject to availability of funds under the SBA’s Payment Protection Program, and to the SBA issuing an SBA loan number.
	
 

 

	
 
	
6.
	
Borrower's liability under this Note will continue with respect to any amounts SBA may pay Bank based on an SBA guarantee of this Note. Any agreement with Bank under which SBA may guarantee this Note does not create any third party rights or benefits for Borrower and, if SBA pays Bank under such an agreement, SBA or Bank may then seek recovery from Borrower of amounts paid by SBA.
	
 

 

	
 
	
7.
	
Lender reserves the right to modify the Note Amount based on documentation received from Borrower.
	
 

 

	
 
	
8.
	
Borrower’s execution of this Note has been duly authorized by all necessary actions of its governing body. The person signing this Note is duly authorized to do so on behalf of Borrower.
	
 

 

	
 
	
9.
	
This Note shall not be governed by any existing or future credit agreement or loan agreement with Lender. The liabilities guaranteed pursuant to any existing or future guaranty in favor of Lender shall not include this Note. The liabilities secured by any existing or future security instrument in favor of Lender shall not include the Loan.
	
 

 

4

 

SBA Form 147 (06/03/02) Version 4.1

 

SVB Confidential

 
 

 

	
 
	
10.
	
The proceeds of the Loan will be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, as specified under the Paycheck Protection Program Rule. Borrower understands that if the funds are knowingly used for unauthorized purposes, the federal government may hold Borrower legally liable, such as for charges of fraud.
	
 

 

Electronic Execution of Loan Documents.

 

The words “execution,” “signed,” “signature” and words of like import in this Note and any Loan Document shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity and enforceability as a manually executed signature or the use of a paper-based recordkeeping systems, as the case may be, to the extent and as provided for in any applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act.

 

	
 
	
4.
	
DEFAULT:

 

Borrower is in default under this Note if Borrower does not make a payment when due under this Note, or if Borrower or Operating Company:

 

	
 
	
A.
	
Fails to do anything required by this Note and other Loan Documents;

 

	
 
	
B.
	
Defaults on any other loan with Lender;

 

	
 
	
C.
	
Does not preserve, or account to Lender’s satisfaction for, any of the Collateral or its proceeds;

 

	
 
	
D.
	
Does not disclose, or anyone acting on their behalf does not disclose, any material fact to Lender or SBA;
	
 

 

	
 
	
E.
	
Makes, or anyone acting on their behalf makes, a materially false or misleading representation to Lender or SBA;
	
 

 

	
 
	
F.
	
Defaults on any loan or agreement with another creditor, if Lender believes the default may materially affect Borrower’s ability to pay this Note;
	
 

 

	
 
	
G.
	
Fails to pay any taxes when due;

 

	
 
	
H.
	
Becomes the subject of a proceeding under any bankruptcy or insolvency law;

 

	
 
	
I.
	
Has a receiver or liquidator appointed for any part of their business or property;

 

	
 
	
J.
	
Makes an assignment for the benefit of creditors;

 

	
 
	
K.
	
Has any adverse change in financial condition or business operation that Lender believes may materially affect Borrower’s ability to pay this Note;
	
 

 

	
 
	
L.
	
Reorganizes, merges, consolidates, or otherwise changes ownership or business structure without Lender’s prior written consent; or
	
 

 

5

 

SBA Form 147 (06/03/02) Version 4.1

 

SVB Confidential

 
 

 

	
 
	
M.
	
Becomes the subject of a civil or criminal action that Lender believes may materially affect Borrower’s ability to pay this Note.
	
 

 

	
 
	
5.
	
LENDER’S RIGHTS IF THERE IS A DEFAULT.

 

Without notice or demand and without giving up any of its rights, Lender may:

 

	
 
	
A.
	
Require immediate payment of all amounts owing under this Note;

 

	
 
	
B.
	
Collect all amounts owing from any Borrower or Guarantor;

 

	
 
	
C.
	
File suit and obtain judgment.

 

	
 
	
D.
	
Take possession of any Collateral; or

 

	
 
	
E.
	
Sell, lease, or otherwise dispose of, any Collateral at public or private sale, with or without advertisement.
	
 

 

	
 
	
6.
	
LENDER’S GENERAL POWERS.

 

Without notice and without Borrower’s consent, Lender may:

 

	
 
	
A.
	
Bid on or buy the Collateral at its sale or the sale of another lienholder, at any price it chooses;

 

	
 
	
B.
	
Incur expenses to collect amounts due under this Note, enforce the terms of this Note or any other Loan Document, and preserve or dispose of the Collateral. Among other things, the expenses may include payments for property taxes, prior liens, insurance, appraisals,
	
 

environmental remediation costs, and reasonable attorney’s fees and costs. If Lender incurs such expenses, it may demand immediate repayment from Borrower or add the expenses to the principal balance;

 

	
 
	
C.
	
Release anyone obligated to pay this Note;

 

	
 
	
D.
	
Compromise, release, renew, extend or substitute any of the Collateral; and

 

	
 
	
E.
	
Take any action necessary to protect the Collateral or collect amounts owing on this Note.

 

	
 
	
7.
	
WHEN FEDERAL LAW APPLIES; GOVERNING LAW; FORUM SELECTION.

 

When SBA is the holder, this Note will be interpreted and enforced under federal law, including SBA regulations. Lender or SBA may use state or local procedures for filing papers, recording documents, giving notice, foreclosing liens, and other purposes. By using such procedures, SBA does not waive any federal immunity from state or local control, penalty, tax, or liability. As to this Note, Borrower may not claim or assert against SBA any local or state law to deny any obligation, defeat any claim of SBA, or preempt federal law.

 

6

 

SBA Form 147 (06/03/02) Version 4.1

 

SVB Confidential

 
 

 

	
 
	
8.
	
SUCCESSORS AND ASSIGNS.

 

Under this Note, Borrower and Operating Company includes its successors, and Lender includes its successors and assigns.

 

	
 
	
9.
	
GENERAL PROVISIONS.

 

	
 
	
A.
	
All individuals and entities signing this Note are jointly and severally liable.

 

	
 
	
B.
	
Borrower waives all suretyship defenses.

 

	
 
	
C.
	
Borrower must sign all documents necessary at any time to comply with the Loan Documents and to enable Lender to acquire, perfect, or maintain Lender’s liens on Collateral.
	
 

 

	
 
	
D.
	
Lender may exercise any of its rights separately or together, as many times and in any order it chooses. Lender may delay or forgo enforcing any of its rights without giving up any of them.
	
 

E.Borrower may not use an oral statement of Lender or SBA to contradict or alter the written terms of this Note.

 

	
 
	
E.
	
If any part of this Note is unenforceable, all other parts remain in effect.

 

	
 
	
F.
	
To the extent allowed by law, Borrower waives all demands and notices in connection with this Note, including presentment, demand, protest, and notice of dishonor. Borrower also waives any defenses based upon any claim that Lender did not obtain any guarantee; did not obtain, perfect, or maintain a lien upon Collateral; impaired Collateral; or did not obtain the fair market value of Collateral at a sale.
	
 

 

	
 
	
10.
	
STATE-SPECIFIC PROVISIONS:

 

If the SBA is not the holder, this Note shall be governed by and construed in accordance with the laws of the State of California where the main office of Lender is located. MATTERS REGARDING INTEREST TO BE CHARGED BY LENDER AND THE EXPORTATION OF INTEREST SHALL BE GOVERNED BY FEDERAL LAW (INCLUDING WITHOUT LIMITATION 12 U.S.C. SECTIONS 85 AND 1831(u) AND THE LAW OF THE STATE OF

CALIFORNIA. Borrower agrees that any legal action or proceeding with respect to any of its obligations under this Note may be brought by Lender in any state or federal court located in the State of California, as Lender in its sole discretion may elect. Borrower submits to and accepts in respect of its property, generally and unconditionally, the non-exclusive jurisdiction of those courts. Borrower waives any claim that the State of California is not a convenient forum or the proper venue for any such suit, action or proceeding. The extension of credit that is the subject of this Note is being made by Lender in California.

 

7

 

SBA Form 147 (06/03/02) Version 4.1

 

SVB Confidential

 
 

 

	
 
	
11.
	
BORROWER’S NAME(S) AND SIGNATURE(S).

 

BORROWER CERTIFIES THAT THE INFORMATION PROVIDED IN THIS APPLICATION AND THE INFORMATION PROVIDED IN ALL SUPPORTING DOCUMENTS AND FORMS IS TRUE AND ACCURATE IN ALL MATERIAL RESPECTS. BORROWER UNDERSTANDS THAT KNOWINGLY MAKING A FALSE STATEMENT TO OBTAIN A GUARANTEED LOAN FROM SBA IS PUNISHABLE UNDER THE LAW, INCLUDING UNDER 18 USC 1001 AND 3571 BY IMPRISONMENT OF NOT MORE THAN FIVE YEARS AND/OR A FINE OF UP TO $250,000; UNDER

15 USC 645 BY IMPRISONMENT OF NOT MORE THAN TWO YEARS AND/OR A FINE OF NOT MORE THAN

$5,000; AND, IF SUBMITTED TO A FEDERALLY INSURED INSTITUTION, UNDER 18 USC 1014 BY IMPRISONMENT OF NOT MORE THAN THIRTY YEARS AND/OR A FINE OF NOT MORE THAN $1,000,000.

 

By signing below, each individual or entity becomes obligated under this Note as Borrower.

Funds will be credited to your Deposit Account Number ending in:

 

8511

 

			
	
  BORROWER:

 

	
By:
	
 
	
/s/ MICHAEL A. ARENDS

	
Name:
	
 
	
Michael Arends

	
Title:
	
 
	
Authorized Signer

	
Date:
	
 
	
5/4/2020

 

 

 

 

 

 

 

 

8

 

SBA Form 147 (06/03/02) Version 4.1

 

SVB Confidentialtvty-ex101_244.htm

Exhibit 10.1

 

SEPARATION AND RELEASE AGREEMENT

 

Tivity Health, Inc. and its subsidiaries (collectively, the “Company”) and Dawn M. Zier (“Executive”) (together, the “Parties”) enter into this Separation and Release Agreement (“Agreement”) as of the date shown below Executive’s signature on the last page of this Agreement.

 

RECITALS

 

WHEREAS, Executive has been employed by the Company as the President and Chief Operating Officer of the Company;

 

WHEREAS, Executive and the Company entered into an employment agreement effective as of March 8, 2019 (the “Employment Agreement”) that provides for certain payments and benefits upon Executive’s termination of employment with the Company (capitalized terms not defined herein shall have the meanings set forth in the Employment Agreement);

 

WHEREAS, Executive and the Company have agreed that Executive’s employment with the Company will terminate as of December 4, 2019; and

 

WHEREAS, Executive and the Company have negotiated and reached an agreement with respect to all rights, duties and obligations arising between them, including, but in no way limited to, any rights, duties and obligations that have arisen or might arise out of or are in any way related to Executive’s employment with the Company and the conclusion of that employment.

 

NOW, THEREFORE, in consideration of the covenants and mutual promises herein contained, it is agreed as follows:

 

AGREEMENT

 

	
1.
	
Separation Date. Executive's employment with the Company shall terminate on December 4, 2019 (the “Separation Date”). The Separation Date is intended to constitute Executive’s “separation from service” within the meaning of Section 409A. As of the date hereof, Executive shall resign from and no longer be a member of the Board of Directors of the Company. As of the Separation Date, Executive shall resign from and no longer be an employee, officer, director and/or manager (or any equivalent position) of the Company and its subsidiaries, and Executive agrees she shall execute all documents necessary to effect such resignations. The Parties hereby agree that, for purposes of the Employment Agreement and the Award Agreements (as defined below), Executive's termination of employment will be treated as a termination by the Company without Cause (as defined in the Employment Agreement).
	
 

 

	
2.
	
Separation Payments and Benefits. Provided Executive timely executes the Release and Waiver attached as Exhibit A hereto (the “Release”) and returns it to the Company no later than 5pm E.S.T. on December 25, 2019, and does not revoke the Release within the period specified therein, then it is agreed as follows:
	
 

 

 

(a)Executive will receive from the Company (i) any unpaid Base Salary through the Separation Date, payable within 30 days following the Separation Date; (ii) reimbursement for any unreimbursed business expenses incurred through the Separation Date within 30 days following the Separation Date; and (iii) any vested benefits payable under the terms of any applicable plan and in accordance therewith;

 

(b)Executive will receive from the Company continued payment of Executive’s Base Salary in effect on the Separation Date for a period of two years following the Separation Date (the “Severance Period”), totaling $1,750,000, on the Company’s customary payroll schedule for a period of 24 months, which payments will commence on the first day of the seventh month following the Separation Date (the “Initial Payment Date”), with the initial payment to include all payments that would have occurred prior to the Initial Payment Date and the remaining payments occurring according to the Company’s customary payroll practices until the expiration of the Severance Period;

 

(c)The Executive will receive from the Company a monthly payment equal to $1,143.03 for a period of 18 months (the “COBRA Payment”), which represents the portion of the monthly COBRA premium that exceeds the active employee cost of group health coverage under the Company’s group health plan; provided, however, the parties acknowledge that the COBRA Payment due under this Section 2(c) shall be included in Executive's gross income to the extent the provision of such payment is deemed to be discriminatory under Section 105(h) of the Internal Revenue Code of 1986, as amended (the “Code”).

 

(d)Executive will receive a pro-rata portion of Executive’s Bonus, if any, for fiscal year 2019 based on actual results for such year (determined by multiplying the amount of such Bonus which would be due for 2019 by a fraction, the numerator of which is the number of days during the fiscal year of termination that Executive is employed by the Company (i.e., 337 days)  and the denominator of which is 365), payable in 2020 in accordance with the terms of the applicable Bonus plan at the same time the Bonus would have been paid if Executive continued to be employed by the Company; and

 

(e)The Company will provide direct payment to the service providers of Executive’s choice of the reasonable costs of up to 12 months of executive outplacement benefits, up to a maximum aggregate of $50,000. 

 

	
3.
	
Equity Awards. Executive’s outstanding equity awards, each granted pursuant to an award agreement evidencing such equity award (the “Award Agreements,” a complete schedule of which is attached hereto as Exhibit B), will remain subject in all respects to the terms, conditions and restrictions of such Award Agreements, the Nutrisystem Stock Incentive Plan and the Tivity Health, Inc. Amended and Restated 2014 Stock Incentive Plan (the “Tivity Stock Incentive Plan”) as detailed on Exhibit B.  Specifically, the Company and Executive agree and acknowledge that, as further detailed on Exhibit B, (i) the special retention restricted stock units granted to Executive on March 8, 2019 will immediately vest on the Separation Date; (ii) a pro-rata portion of the special retention performance stock units granted to Executive on March 8, 
	
 

2

 
 

		
2019 will vest in accordance with the terms of the award agreement evidencing such grant; (iii) one-third of the annual restricted stock units granted to Executive on April 11, 2019 will immediately vest on the Separation Date; (iv) 100% of the annual performance stock units granted to Executive on April 11, 2019 will be forfeited on the Separation Date; and (v) all assumed 2017 and 2018 restricted stock units held by Executive as of the date hereof that have not vested as of the Separation Date will be forfeited as of the Separation Date (together with the associated dividend equivalents).  In the event that a Change in Control (as defined in the Tivity Stock Incentive Plan) occurs on or prior to the last Distribution Date (as defined on Exhibit B), all vested equity awards will be subject to the same treatment in such Change in Control as the treatment provided to other similar vested equity awards.
	
 

 

	
4.
	
Tax Withholding. The Company shall be entitled to withhold from any amounts otherwise payable hereunder to Executive any amounts required to be withheld in respect of federal, state or local taxes. 
	
 

 

	
5.
	
Continuing Obligations. The Nondisclosure and Noncompete Agreement between the Company and Executive, dated as of March 8, 2019 (the “Noncompete Agreement”), and Sections VI.G, VI.H, X and XII of the Employment Agreement (“Timing of Payments,” “Date of Termination,” “Indemnification” and “Liability Insurance”) shall continue to apply and shall be deemed a part hereof as if set forth herein in full.
	
 

 

	
6.
	
Governing Law; Venue. This Agreement, its Exhibit A, Exhibit B and all rights, duties and remedies hereunder shall be governed by and construed and enforced in accordance with the laws of the State of Delaware, without reference to its choice of law rules, except as preempted by federal law. Any disputes, actions, claims or causes of action arising out of or in connection with this Agreement or the employment relationship between the Company and Executive shall be subject to the exclusive jurisdiction of the United States District Court for the District of Delaware.
	
 

 

7.Successors and Assigns. This Agreement will be binding upon and inure to the benefit of (a) the heirs, executors and legal representatives of Executive upon Executive’s death and (b) any successor of the Company. Any such successor of the Company will be deemed substituted for the Company under the terms of this Agreement for all purposes. For this purpose, “successor” means any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company. None of the rights of Executive to receive any form of compensation payable pursuant to this Agreement may be assigned or transferred except by will or the laws of descent and distribution. Any other attempted assignment, transfer, conveyance or other disposition of Executive’s right to compensation or other benefits will be null and void.

 

8.Amendments. This Agreement may not be amended or modified other than by a written instrument signed by an authorized representative of the Company and Executive.

 

9.Interpretation. The section headings contained herein are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement. Each of the 

3

 
 

Parties has participated in the drafting and negotiation of this Agreement. If any ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if it was drafted by both Parties, and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of authorship of any of the provisions of this Agreement.

 

10.Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. Facsimile and .pdf signatures will suffice as original signatures.

 

11.Entire Agreement. This Agreement, together with the Noncompete Agreement and the other agreements specifically referenced in this Agreement, contain all the understandings between the Parties pertaining to the matters referred to herein, and supersedes any other undertakings and agreements (including, without limitation, the Employment Agreement and all other agreements between the Company and Executive, each of which is hereby terminated), whether oral or written, previously entered into by them with respect thereto. Executive represents that, in executing this Agreement, Executive does not rely and has not relied upon any representation or statement not set forth herein made by the Company with regard to the subject matter or effect of this Agreement or otherwise and that Executive has had the opportunity to be represented by counsel of Executive’s choosing.

 

12.Notice. All notices hereunder shall be in writing and delivered personally or sent by email or United States registered or certified mail, postage prepaid and return receipt requested:

 

If to the Company:

Tivity Health, Inc. 
701 Cool Springs Blvd. 
Franklin, TN 37067

Attn: Chief Legal & Administrative Officer

 

If to Executive:

To the address on file. 

 

4

 
 

IN WITNESS WHEREOF, the Parties hereto have executed and delivered this Agreement.

 

TIVITY HEALTH, INC.

 

 

  /s/ Mary S. Flipse

 

 

Date: 12-4-2019

 

 

Accepted and agreed to.

 

EXECUTIVE:

 

 

  /s/ Dawn M. Zier

  Dawn M. Zier

 

Date: 12-4-2019

 

[Signature Page to Separation and Mutual Release Agreement]

 
 

EXHIBIT A

 

Release and Waiver 

 

In consideration of the payments and other benefits set forth in Section 2 and Section 3 of the Separation and Release Agreement dated December 4, 2019 to which this form is attached (the “Separation Agreement”), Dawn M. Zier (“Executive”), hereby furnishes Tivity Health, Inc. (the “Company”), with the following release and waiver (“Release and Waiver”).

 

In exchange for the consideration provided to Executive by the Company, that Executive is not otherwise entitled to receive, Executive (individually and on behalf of herself, her executors, heirs, administrators, and assigns) hereby release and forever discharge the Company together with its directors, managers, officers, employees, members, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates, and assigns (the “Released Parties”) from any and all claims, liabilities and obligations, both known and unknown, suspected or claimed against any of the Released Parties related to (a) Executive’s employment with the Company or the termination of that employment; (b) Executive’s compensation or benefits from the Company or any of the Released Parties, including, but not limited to, salary, bonuses, commissions, vacation pay, severance pay, or fringe benefits, except to the extent provided below; (c) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing, to the extent related to Executive’s employment with the Company or the termination of that employment (d) all tort claims, including, but not limited to, claims for fraud, defamation, emotional distress, and discharge in violation of public policy, to the extent related to Executive’s employment with the Company or the termination of that employment; (e) all federal, state, and local statutory claims, including, but not limited to, claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Family and Medical Leave Act, the Age Discrimination in Employment Act of 1967 (“ADEA”), and the Employee Retirement Income Security Act; each as may be amended from time to time, to the extent related to Executive’s employment with the Company or the termination of that employment and (f) any applicable local, state or federal equal employment opportunity or anti-discrimination law, statute, policy, order, ordinance or regulation, to the extent related to Executive’s employment with the Company or the termination of that employment.

 

Nothing in this Release and Waiver shall be construed to waive any right that is not subject to waiver by private agreement under federal, state or local employment or other laws, such as claims for workers’ compensation or unemployment benefits.  In addition, nothing in this Release and Waiver will be construed to affect any of the following claims, all rights in respect of which Executive reserves: (a) reimbursement of unreimbursed business expenses properly incurred prior to Executive’s termination date in accordance with the Company’s policy; (b) claims under the Separation Agreement; (c) claims under the Award Agreements (as such term is defined in the Separation Agreement) in respect of vested Restricted Stock Units or Performance Stock Units (each as defined in the applicable Award Agreement) detailed on Exhibit B to the Separation Agreement and claims in respect of such Restricted Stock Units or Performance Stock Units solely in Executive’s capacity as a holder of Restricted Stock Units or Performance Stock Units; (d) claims as an equityholder in the Company (including any rights Executive has arising under operative documents applicable to Executive in such capacity); (e) any vested benefits to which Executive is entitled under any employee 

 

benefit plans or programs of the Company in which Executive participates; (f) any claim for unemployment compensation or workers’ compensation administered by a state government to which Executive is presently or may become entitled; (g) any claim that the Company has breached this Release and Waiver; and (h) indemnification as an officer or director of the Company (including as a fiduciary of any employee benefit plan), or inclusion as a beneficiary of any insurance policy related to Executive’s service in such capacity.

Executive acknowledges and agrees that as of the date Executive executes this Release and Waiver, Executive has no knowledge of any facts or circumstances that give rise or could give rise to any claims under any of the laws listed in the preceding paragraphs, or that any such matters have been disclosed to Executive, in writing. 

 

Executive represents and warrants that Executive has not previously filed, and to the maximum extent permitted by law, agrees that Executive will not file, a complaint, charge, or lawsuit against the Company regarding any of the claims released herein. If, notwithstanding this representation and warranty, Executive has filed or file such a complaint, charge, or lawsuit, Executive agrees that Executive shall cause such complaint, charge, or lawsuit to be dismissed with prejudice and shall pay any and all costs required in obtaining dismissal of such complaint, charge, or lawsuit, including without limitation the attorneys’ fees of the Company.  Executive acknowledges that in accordance with 29 C.F.R. § 1625.23(b), this covenant not to sue is not intended to preclude Executive from bringing a lawsuit to challenge the validity of the release language contained in this Release and Waiver. 

 

Moreover, Executive agrees that this Release and Waiver will not prevent Executive from filing a charge of discrimination with the Equal Employment Opportunity Commission, or its equivalent state or local agencies, or otherwise participating in an administrative investigation.  However, to the fullest extent permitted by law, Executive agrees to relinquish and forgo all legal relief, equitable relief, statutory relief, reinstatement, back pay, front pay, and any other damages, benefits, remedies, and relief to which she may be entitled as a result of any claim, charge, or complaint against the Company, and Executive agrees to forgo and relinquish reinstatement, all back pay, front pay, and other damages, benefits, remedies, and relief that she could receive from claims, actions, or suits filed or charges instituted or pursued by any agency or commission based upon or arising out of the matters that are released and waived by this Release and Waiver.  The parties intend that this paragraph and the release of claims herein be construed as broadly as lawfully possible.

 

Executive acknowledges that, among other rights, Executive is waiving and releasing any rights Executive may have under the ADEA, that this Release and Waiver is knowing and voluntary, and that the consideration given for this Release and Waiver is in addition to anything of value to which Executive was already entitled as an executive of the Company. If Executive is 40 years of age or older upon execution of this Release and Waiver, Executive further acknowledges that she has been advised, as required by the Older Workers Benefit Protection Act, that: (a) the Release and Waiver granted herein does not relate to claims under the ADEA which may arise after this Release and Waiver is executed; (b) Executive should consult with an attorney prior to executing this Release and Waiver; (c) Executive has twenty-one (21) days in which to consider this Release and Waiver (although Executive may choose voluntarily to execute this Release and Waiver earlier); (d) Executive has seven (7) days following the execution of this Release and Waiver to revoke Executive’s consent 

 

to this Release and Waiver; and (e) this Release and Waiver shall not be effective until the eighth day after Executive executes this Release and Waiver and the revocation period has expired.

 

Executive acknowledges Executive’s continuing obligations under the certain Nondisclosure and Noncompete Agreement, dated as of March 8, 2019, by and between Executive and the Company, as may be amended from time to time (the “Nondisclosure and Noncompete Agreement”) and agrees that Executive’s right to the severance pay Executive is receiving in exchange for Executive’s agreement to the terms of this Release and Waiver is contingent upon Executive’s continued compliance with her obligations under the Nondisclosure and Noncompete Agreement.

 

This Release and Waiver constitutes the complete, final and exclusive embodiment of the entire agreement between the Company and Executive with regard to the subject matter hereof. Executive is not relying on any promise or representation by any member of the Company or any other person released hereunder that is not expressly stated herein. This Release and Waiver may only be modified by a writing signed by both Executive and a duly authorized officer of the Company (other than Executive).

 

Date:By:

Dawn M. Zier

 

Date:By:

Company Representative

 

EXHIBIT B

 

Award Agreements

 

	
 
	
1.
	
Restricted Stock Unit Award Agreement, dated March 8, 2019, by and between Tivity Health, Inc. and Dawn M. Zier – 102,987 restricted stock units will vest as of the Separation Date.  Distribution in respect of vested units will be made promptly following the Separation Date and after the Release set forth in Exhibit A above has become irrevocable.

 

	
 
	
2.
	
Performance Stock Unit Award Agreement, dated March 8, 2019, by and between Tivity Health, Inc. and Dawn M. Zier – 24,967 performance stock units will vest as of the Separation Date and the rest will be forfeited as of the Separation Date. Distribution in respect of vested units will be made promptly following December 31, 2021 and after the Release set forth in Exhibit A above has become irrevocable.

 

	
 
	
3.
	
2017 Restricted Stock Unit Award Agreement, dated March 8, 2019, by and between Tivity Health, Inc. and Dawn M. Zier – unvested restricted stock units as of the Separation Date (i.e., 3,504 units) will be forfeited (together with associated $2,910.85 in dividend equivalents) and the rest will have vested (i.e., 136,530 units and $113,418.35 in dividend equivalents). Distribution in respect of vested units (and payment of associated dividend equivalents) will be made on or about January 6, 2020 and after the Release set forth in Exhibit A above has become irrevocable.

 

	
 
	
4.
	
2018 Restricted Stock Unit Award Agreement, dated March 8, 2019, by and between Tivity Health, Inc. and Dawn M. Zier – unvested restricted stock units as of the Separation Date (i.e., 66,251) will be forfeited (together with associated $32,349.18 in dividend equivalents) and the rest will have vested (i.e., 118,340 units and $57,783.31 in dividend equivalents). Distribution in respect of vested units (and payment of associated dividend equivalents) will be made in January 2021 and after the Release set forth in Exhibit A above has become irrevocable.

 

	
 
	
5.
	
2019 Restricted Stock Unit Award Agreement, dated as of April 11, 2019, by and between Tivity Health, Inc. and Dawn M. Zier – 19,441 restricted stock units will vest as of the Separation Date, and the rest will be forfeited as of the Separation Date.  Distribution in respect of vested units will be made promptly following the Separation Date and after the Release set forth in Exhibit A above has become irrevocable.

 

	
 
	
6.
	
2019 Performance Stock Unit Award Agreement, dated as of April 11, 2019, by and between Tivity Health, Inc. and Dawn M. Zier – 100% of performance stock units will be forfeited as of the Separation Date.

 

Each of the dates on which a distribution in respect of vested units is to occur in accordance with the foregoing provisions of this Exhibit B, a “Distribution Date.”

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00309-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00309-of-00352.parquet"}]]