Document:

Exhibit 10.23

 

EXECUTION VERSION

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(this “Agreement”) is made and entered into as of January 31, 2021, by and between Playboy Enterprises, Inc.,
a Delaware corporation (the “Company”), and Bernhard L. Kohn III (“Executive” and, together
with the Company, the “Parties”).

 

RECITALS

 

WHEREAS, the Company,
Mountain Crest Acquisition Corp., a Delaware corporation (“Parent”) and the other parties named therein have
entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which Parent will acquire
the Company and adopt the name of “PLBY Group, Inc.”, on the terms and subject to the conditions set forth therein
(the “Acquisition”);

 

WHEREAS, in connection
with the Acquisition the Parties intend that Executive shall continue employment as the Chief Executive Officer and President of
the Company effective as of the Closing Date, immediately prior to and contingent upon the Closing, as such terms are defined in
the Merger Agreement (the “Employment Commencement Date”) and this Agreement shall be assumed by Parent on the
Closing. References to the “Company” in this Agreement shall also be deemed to refer to “Parent” following
the Closing, as applicable.

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt
of which are hereby acknowledged, the Parties hereto agree as follows:

 

1.            Term.
Executive’s employment with the Company under the terms and conditions of this Agreement will commence on the Employment
Commencement Date and shall continue until such time as Executive’s employment is terminated in accordance with the terms
and conditions of Section 5 of this Agreement (the “Term”). Notwithstanding any provision of this
Agreement to the contrary, Executive shall be employed on an “at-will” basis and Executive’s employment may be
terminated by either Party at any time.

 

2.            Title;
Services and Duties.

 

(a)            During
the Term, Executive will be employed by the Company as its Chief Executive Officer (“CEO”) and President, and
shall report to the Board of Directors of the Company (the “Board”). For so long as Executive is the Chief Executive
Officer, Executive shall be nominated to serve as a member of the Board.

 

(b)            During
the Term, Executive will (i) be a full-time employee of the Company and (ii) have such duties, responsibilities and authority
as are reasonably prescribed by the Board from time to time and normally associated with or not inconsistent with the role of a
CEO and President. Notwithstanding the foregoing, Executive may (w) serve as a director of SESAC; (x) serve as a director
or advisor of non-profit organizations without approval of the Board and as director or advisor of for profit companies with the
prior approval of the Board, (y) perform and participate in charitable civic, educational, professional, community, industry
affairs and other related activities, and (z) manage his and his family’s personal investments; provided, however,
that, in each case, such activities do not materially interfere, individually or in the aggregate, with the performance of his
duties hereunder, do not violate the provisions of Section ‎6, and do not create a fiduciary or business conflict.

 

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(c)            During
the Term, Executive shall devote all of the Executive’s business time, energy, business judgment, knowledge and skill and
Executive’s best efforts to the performance of Executive’s duties with the Company.

 

(d)            The
primary place of Executive’s employment with the Company will be the place principal duties are performed by Executive as
of the Employment Commencement Date and remote working arrangements in accordance with Company policy, although Executive understands
and agrees that Executive may be required to travel from time to time for business reasons.

 

3.            Compensation.

 

(a)            Base
Salary. The Company will pay Executive a base salary in the amount of eight-hundred-fifty-thousand dollars ($850,000) per annum
(the “Base Salary”) during the Term, payable in accordance the Company’s regular payroll practices as
in effect from time to time, but in no event less frequently than monthly. The Base Salary will be periodically reviewed by the
Board during the Term, and subject to increase but not decrease.

 

(b)            Cash
Bonus.

 

(i)             Executive
will be eligible to receive an annual cash bonus for each fiscal year of the Company during the Term with a target amount equal
to 100% of the Base Salary and a maximum amount equal to 200% of the Base Salary. The actual amount of the annual cash bonus, if
any, payable to Executive in respect of any fiscal year during the Term will be based on the achievement of performance criteria
which may relate to financial and non-financial metrics as reasonably determined by the Board after consultation with Executive.

 

(ii)            Any
annual cash bonus that becomes payable to Executive under this Section 3(b) will be paid to Executive, in cash,
as soon as practicable but no later than March 15 following the end of the fiscal year of the Company to which it relates.

 

(c)            Long-Term
Incentive Compensation.

 

(i)             During
the Company’s 2021 fiscal year and not later than the time annual equity grants are made generally to Company employees,
the Company shall grant Executive time-based equity awards with a grant date fair value for financial accounting purposes of two
million dollars ($2,000,000), comprised of 50% stock options to purchase Company common stock over a ten-year term (the “2021
Options”) and 50% restricted stock units that settle in shares of Company common stock (the “2021 RSUs”
and, together with the 2021 Options, the “2021 Equity Awards”), subject to the terms and conditions described
herein. The 2021 Options will be eligible to vest over a three year period, with the first one third (1/3) to cliff vest on the
first anniversary of the Employment Commencement Date and the remainder to vest in twenty-four (24) equal monthly installments
thereafter, and the 2021 RSUs will be eligible to vest in three equal installments on each of the first three anniversaries of
the Employment Commencement Date, in each case subject to Executive’s continued employment or service on the Board through
the applicable vesting dates.

 

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(ii)            Starting
in 2022 and for each subsequent fiscal year of the Company during the Term, Executive shall be eligible to receive long-term incentive
compensation grants with a target grant date fair value for financial accounting purposes of two million dollars ($2,000,000) (“Annual
Equity Awards”), including any performance-based grants at the target level which may be earned based on the achievement
of such performance criteria as established by the Board or the Compensation Committee of the Board (the “Committee”)
after consultation with Executive. On a termination of Executive’s employment by the Company without Cause or by Executive
for Good Reason (each, an “Involuntary Termination”), 100% of the then-outstanding Annual Equity Awards and
2021 Equity Awards will fully vest and become exercisable, with stock options remaining exercisable until the earlier of the end
of the term of the stock options or one year after the date of termination (except for those Annual Equity Awards and 2021 Equity
Awards that include performance based vesting conditions, which will remain outstanding and eligible to vest based on the level
of actual attainment of the relevant performance conditions) (the “Annual Equity Acceleration”).

 

(iii)           Following
the Closing, the Executive shall receive a special long-term incentive compensation grant comprised of (A) performance-based
restricted stock units, with a seven year term, that if earned will settle in a number of shares of Company common stock equal
to the target percentage of two-and-a-half percent (2.5%) of the fully diluted Company common shares outstanding on the date of
grant, determined on a post-money, post-conversion basis (including any equity awards granted to the Executive and other senior
level executives in connection with the Closing or within thirty (30) days of the filing of Form S-8 as described below) (“Initial
PSUs”) and (B) time-based restricted stock units, with a ten year term, that will settle in a number of shares of
Company common stock equal to a target percentage equal to (x) two-and-a-half percent (2.5%) of the fully diluted Company
common shares outstanding on the date of grant (determined as set forth above for the Initial PSUs), minus (y) the
percentage of fully diluted Company common shares outstanding on the date of grant (determined in the same manner) represented
by the initial option grant awarded to Executive on January 31, 2021 concurrently with the execution of this Agreement (the
 “Initial RSUs”). The Initial PSUs and Initial RSUs will be granted no later than thirty (30) days after (and
contingent upon) the listing of the shares of Company common stock on the Nasdaq Stock Market and the registration of the offer
and sale of the shares of common stock underlying such awards with the Securities and Exchange Commission on Form S-8 (which
is expected to occur approximately 60 days following the Closing). The Initial PSUs will be eligible to be earned 25% upon achieving
each of the following thirty (30) day volume-weighted average price milestones for a share of Company common stock, subject to
Executive’s continued employment or service on the Board through the applicable vesting date: $20, $30, $40 and $50. Any
Initial PSUs that satisfy such vesting terms will be settled within thirty (30) days after the applicable vesting date. The Initial
RSUs will be eligible to vest in three equal installments on each of the first three anniversaries of the Employment Commencement
Date, in each case subject to Executive’s continued employment or service on the Board through the applicable vesting dates.
Shares of Company common stock received upon the settlement of the Initial PSUs and Initial RSUs will be subject to transfer restrictions
for twelve-months from the date of settlement of the Initial PSUs or Initial RSUs, as applicable, net of a number of shares of
Company common stock in respect of the applicable required tax withholding, to the extent that the Company has cash reserves to
provide for such net settlement. Upon an Involuntary Termination, the Initial PSUs will remain outstanding and eligible to vest
based on attainment of the share-price milestones in the preceding sentence until the earlier of the end of the seven-year term
of the Initial PSUs or three years after the date of termination, and the Initial RSUs will fully vest (the “Special Equity
Treatment”). Upon an Involuntary Termination occurring within 24 months after a Change in Control, 100% of the then-outstanding
Initial PSUs and Initial RSUs will fully vest (the “Special Equity CIC Treatment”).

 

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4.            Employee
Benefits.

 

(a)            Retirement
and Welfare Benefits. During the Term, Executive will be eligible to participate in all benefit plans made available by the
Company to its senior executives, including health insurance, life insurance and participation in an Internal Revenue Code (the
 “Code”) Section 401(k) retirement plan. Such benefits will be subject to the applicable limitations
and requirements imposed by the terms of such benefit plans and will be governed in all respects in accordance with the terms of
such plans as in effect from time to time. Notwithstanding the foregoing, nothing in this Agreement shall adversely affect the
Company’s ability to modify or terminate any employee retirement, health or welfare benefit plan at any time.

 

(b)            Paid
Vacation. During the Term, Executive will be entitled to an unlimited amount of paid vacation per calendar year in accordance
with the terms and conditions of the Company’s vacation policies as in effect from time to time.

 

(c)            Reimbursement
of Business Expenses. The Company will reimburse Executive for any reasonable expenses incurred by Executive during the Term
in furtherance of Executive’s duties hereunder, including travel, meals and accommodations and in respect of technology required
to perform remote working arrangements, upon submission by Executive of vouchers or receipts in accordance with applicable Company
policies.

 

(d)            Life
and Disability Insurance. During the Term, the Company agrees to provide Executive with a life insurance policy, at the Company’s
expense, providing for a death benefit in the amount of $25 million and a disability insurance policy, at the Company’s expense,
with an annualized benefit not less than $5 million.

 

(e)            Insurance;
Indemnification. During and after the Term, (i) Executive will be covered by such directors’ and officers’
liability insurance on no less favorable terms as directors and officers (both during and after their term) of the Company or any
of the applicable Affiliates for which Executive serves as a director or officer and (ii) Executive will also be entitled
to indemnification rights and related expense advances and reimbursements to the same extent as any other director or officer (both
during and after their term) of the Company or any of its Affiliates for which Executive serves as a director or officer.

 

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5.            Termination
of Employment. Executive’s employment will be terminated at the earliest to occur of the following during the Term: (i) the
date on which the Company provides notice to Executive of termination for “Disability” (as defined below); (ii) the
date of Executive’s death; (iii) the date on which the Company provides notice to Executive of termination for “Cause”
(as defined below); (iv) the date which is thirty (30) days following the date on which the Company provides notice to Executive
of termination without Cause; (v) the date specified by Executive in any notice to the Company of termination of employment
other than for “Good Reason” (as defined below); or (vi) the applicable date as determined in accordance with
the definition of Good Reason if such termination is by Executive for Good Reason.

 

(a)            For
Cause; Resignation by Executive Other than for Good Reason; Death or Disability. If Executive’s employment with the Company
is terminated by the Company for Cause or as a result of Executive’s death or Disability, or Executive resigns his employment
other than for Good Reason, Executive will not be entitled to any further compensation or benefits other than, in each case if
applicable as of the date of termination: (i) any accrued but unpaid Base Salary (payable as provided in Section 3(a) hereof);
(ii) in the event that such termination is other than by the Company for Cause, an amount in cash equal to any annual cash
bonus payable to Executive in respect of any previously completed fiscal year of the Company in accordance with Section 3(b) but
unpaid as of the date of termination, payable on the same date on which annual cash bonuses are paid to executives of the Company
generally in respect of such fiscal year; (iii) reimbursement for any expenses properly incurred and reported by Executive
prior to the date of termination in accordance with Section 4(c) hereof, payable on the Company’s first
regularly scheduled payroll date which occurs at least 10 business days after the date of termination; and (iv) vested employee
benefits, if any, to which Executive may be entitled under the applicable terms of the Company’s employee benefit plans as
may be in effect as of the date of termination (collectively, the “Accrued Rights”). In addition, Executive
will also be eligible to receive the Pro-Rated Bonus (as defined below) if such termination is for death or Disability.

 

(b)            Termination
by the Company without Cause or Resignation for Good Reason. If Executive’s employment is terminated by the Company without
Cause or Executive resigns his employment for Good Reason, then Executive will be entitled to receive the Accrued Rights, and if
Executive executes a release of claims in the form attached as Exhibit A hereto, subject to any revisions necessary to reflect
changes in applicable law occurring after the date hereof (the “Release”), and the applicable revocation period
with respect to the Release expires within sixty (60) days (or such longer period as required by law) following the date of termination,
then Executive will receive the following:

 

(i)            An
amount in cash equal to one-and-a-half (1.5) times the sum of (A) the Base Salary as in effect immediately prior to the date
of termination (without regard to any reduction resulting in Good Reason) plus (B) the target annual bonus for the year of
termination, which total amount will be payable in regular installments in accordance with the Company’s normal payroll practices
(but in no event less frequently than monthly) over a period of eighteen (18) months following Executive’s last day of employment
with the Company; provided, however, that the first installment shall not occur until the first regularly scheduled
payroll date of the Company that occurs on or following the effective date of the Release as defined in Section 8 of the Release
and shall include all payments that would have been made had such installments commenced immediately following Executive’s
last day of employment; provided, further that to the extent that the period to consider the Release spans two calendar
years, such first installment shall occur in the second calendar year, to the extent that such installment constitutes nonqualified
deferred compensation for purposes of Section 409A of the Code;

 

(ii)            An
amount in cash equal to the product of (A) the annual cash bonus that the Board determines would have been paid to Executive
in accordance with Section 3(b) for the fiscal year in which the date of termination occurs had Executive remained
in employment and (B) a fraction, the numerator of which is the number of days Executive was employed during the fiscal year
in which the date of termination occurs, and the denominator of which is 365, payable on the same date on which annual cash bonuses
are paid to executives of the Company generally in respect of such fiscal year (the “Pro-Rated Bonus”);

 

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(iii)          If
Executive elects continuation coverage under the Company’s medical, dental and vision program pursuant to Part 6 of
Subtitle B of Title I of the Employee Retirement Income Security Act of 1974, as amended (“COBRA”), reimbursement
for the full COBRA premium payments (which reimbursement will be made within thirty (30) days following receipt of evidence from
Executive of Executive’s payment of such premiums), or, if it would result in a better after-tax benefit for the Executive,
direct payment to the provider for the full COBRA premium payments for the 18 calendar months immediately following the end of
the calendar month in which the date of termination occurs (provided that the Company may modify its obligation under this Section 5(b)(iii) to
the extent reasonably necessary (and to the minimum extent necessary) to avoid any penalty or excise taxes imposed on it in connection
with the continued payment of premiums by the Company under the Patient Protection and Affordable Care Act of 2010, as amended)
(the “Health Care Continuation”); provided, further that such contributions shall cease to be effective as of
the date that Executive obtains health, dental and vision benefits from a subsequent employer; and

 

(iv)          The
Annual Equity Acceleration and the Special Equity Treatment (without duplication).

 

(c)            Termination
by the Company without Cause or Resignation for Good Reason Following a Change in Control. If Executive’s employment
is terminated by the Company without Cause or Executive resigns his employment for Good Reason during the period beginning on a
Change in Control and ending twenty-four (24) months thereafter, then Executive will be entitled to receive the Accrued Rights,
and, if Executive executes the Release, and the applicable revocation period with respect to the Release expires within 60 days
(or such longer period as required by law) following the date of termination, then Executive will receive the following in lieu
of the amounts described in Section 5(b) above:

 

(i)            An
amount in cash equal to two-and-a-half (2.5) times the sum of (A) the Base Salary as in effect immediately prior to the date
of termination (without regard to any reduction resulting in Good Reason) plus (B) the target annual bonus for the year of
termination, which total amount will be payable in regular installments in accordance with the Company’s normal payroll practices
(but in no event less frequently than monthly) over a period of thirty (30) months following Executive’s last day of employment
with the Company; provided, however, that the first installment shall not occur until the first regularly scheduled
payroll date of the Company that occurs on or following the effective date of the Release as defined in Section 8 of the Release
and shall include all payments that would have been made had such installments commenced immediately following Executive’s
last day of employment; provided, further that to the extent that the period to consider the Release spans two calendar
years, such first installment shall occur in the second calendar year, to the extent that such installment constitutes nonqualified
deferred compensation for purposes of Section 409A of the Code;

 

(ii)            The
Pro-Rated Bonus;

(iii)           Health
Care Continuation; and

(iv)          The
Annual Equity Acceleration and the Special Equity CIC Treatment (without duplication).

 

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(d)            Definitions.
For purposes of this Agreement:

 

(i)            “Affiliate”
as applied to any Person, means any other Person directly or indirectly controlling, controlled by, or under common control with,
that Person. For the purposes of this definition “control” (including, with correlative meanings, the terms
 “controlling”, “controlled by” and “under common control with”), as applied
to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and
policies of that Person, whether through the ownership of voting securities (the ownership of more than 50% of the voting securities
of an entity shall for purposes of this definition be deemed to be “control”), by contract or otherwise.

 

(ii)            “Cause”
means (in each case, other than due to death or Disability): (A) Executive’s conviction of, or plea of guilty or nolo
contendere to, any felony; (B) any material act of theft, dishonesty, embezzlement or misappropriation by Executive against
the Company or any of its Affiliates; (C) Executive’s willful or material breach of a fiduciary obligation to the Company
or any willful malfeasance or gross negligence in the performance of Executive’s duties to the Company; (D) a material
violation by Executive of any written policy of the Company that results in material economic harm to the Company; (E) a willful
material breach by Executive of Section 6(b) or (c) of this Agreement; or (F) any continued willful failure
by Executive to follow the reasonable and lawful written directives of the Board that are related to Executive’s position
with the Company. Notwithstanding the foregoing, in no event will the occurrence of any such condition constitute Cause unless
(1) the Board provides written notice to Executive of the existence of the condition giving rise to Cause within thirty (30)
days following the Company’s knowledge of its existence and (2) Executive fails to cure such condition, if curable,
within thirty (30) days following the date of such notice, upon which failure to cure Executive’s employment will immediately
terminate for Cause; provided that Executive shall not be provided the ability to cure repeated occurrences of the same event.
For purposes of this Section 5(c)(ii), no act, or failure to act, by Executive will be considered “willful”
unless committed in bad faith and without a reasonable belief that the act or omission was in the best interests of the Company.

 

(iii)          “Change
in Control” has the meaning set forth in the Company 2021 Equity and Incentive Compensation Plan.

 

(iv)          “Disability”
means Executive is unable, due to physical or mental incapacity, to perform his duties to the Company under this Agreement, as
determined by the Board, for a period of either (A) ninety (90) consecutive days or (B) one-hundred-eighty (180) days
in any 12-month period.

 

(v)           “Good
Reason” means, in each case without Executive’s consent, (A) a decrease in Executive’s base salary,
target bonus or target long-term incentive compensation opportunity, other than a decrease of not less than 10% that is materially
consistent with similar decreases required of other senior executives of the Company; (B) a material diminution in Executive’s
duties, responsibilities or authority or an adverse change in Executive’s title (provided, however, that any change in duties,
responsibilities or authority solely due to the Company becoming privately owned will not constitute Good Reason so long as Executive
continues to be the principal executive officer of the Company following such transaction); (C) a requirement that Executive
report to anyone other than the Board or, following a Change in Control, the board of directors of any successor to the Company
or ultimate parent of any successor or surviving entity; (D) a relocation of Executive’s primary office location outside
of the greater Los Angeles, California metropolitan area; or (E) a material breach of this Agreement or any other material
compensatory arrangement with the Company by the Company. Notwithstanding the foregoing, in no event will the occurrence of any
such condition constitute Good Reason unless (1) Executive provides notice to the Company of the existence of the condition
giving rise to Good Reason within ninety (90) days following Executive’s knowledge of its existence and (2) the Company
fails to cure such condition within thirty (30) days following the date of such notice, and (3) Executive terminates employment
within thirty (30) days after the end of the cure period.

 

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(vi)          “Person”
means any individual, corporation, partnership, limited liability company, joint venture, association, trust or other entity or
organization, including a government or political subdivision or an agency or instrumentality thereof.

 

6.            Restrictive
Covenants.

 

(a)            Acknowledgment.
Executive agrees and acknowledges that, in the course of Executive’s employment, Executive will acquire access to and become
acquainted with information about the Company and its Affiliates that is non-public, confidential or proprietary in nature. Executive
recognizes that in order to guard the legitimate interests of the Company, it is necessary for it to protect all “Confidential
Information” (as defined below) and the disclosure of Confidential Information would place the Company at a competitive disadvantage.

 

(b)            Confidential
Information. During Executive’s employment and at all times following Executive’s termination of employment for
any reason, Executive will hold in confidence all non-public information, matters and materials of the Company, including, without
limitation, know-how, trade secrets, customer lists, pricing policies, operational methods, information relating to products, processes,
customers, services and other business and financial affairs and information as to customers or other third parties (collectively,
the “Confidential Information”), in each case to which Executive has had or may have access and will not, directly
or indirectly, use or disclose such Confidential Information to any Person other than (i) to the extent required in the course
of Executive’s employment or as otherwise expressly required in connection with court process or requested by a governmental
or regulatory body, (ii) as may be required by law (with advance notice to the Company prior to any such disclosure to the
extent legally permitted) or (iii) to Executive’s personal advisers for purposes of enforcing or interpreting this Agreement
(or in the case of any other litigation between Executive and the Company), or to a court or arbitrator for the purpose of enforcing
or interpreting this Agreement (or in the case of any other litigation between Executive and the Company), and who in each case
have been informed as to the confidential nature of such Confidential Information and, as to advisers, their obligation to keep
such Confidential Information confidential. “Confidential Information” will not include any information which is in
the public or industry domain during Executive’s employment, provided such information is not in the public or industry domain
as a consequence of any action or inaction by Executive in violation of this Agreement. Upon the termination of Executive’s
employment for any reason, Executive will deliver to the Company all documents, papers and records (including, but not limited
to, electronic media) in Executive’s possession or subject to Executive’s control that (x) belong to the Company
or (y) contain or reflect any Confidential Information concerning the Company.

 

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(c)            Non-Solicitation.
In consideration of the Company’s obligations hereunder, during Executive’s employment and for a period of 12 months
thereafter, Executive will not, whether for Executive’s own account or for any other Person, directly or indirectly, with
or without compensation solicit, retain, knowingly hire, knowingly offer to hire, entice away or in any manner persuade or attempt
to persuade any officer, employee of the Company or any of its subsidiaries who was employed, engaged or recruited during Executive’s
employment with the Company to discontinue his or her relationship with the Company. Executive will not directly or indirectly
at any time during Executive’s employment or for 12 months thereafter, attempt to disrupt, damage, impair or interfere with
the Company’s business by disrupting the relationship between the Company and any of its consultants, agents, representatives
or vendors. Executive acknowledges that this covenant is necessary to enable the Company to maintain a stable workforce and remain
in business. Non-targeted, general, solicitations to the public shall be deemed not to breach this Section 6(c).

 

(d)            Discoveries
and Inventions; Work Made for Hire.

 

(i)            Executive
agrees that upon conception and/or development of any idea, discovery, invention, improvement, software, writing or other material
or design that: (A) relates to the business of the Company, or (B) relates to the Company’s actual or demonstrably
anticipated research or development, or (C) results from any work performed by Executive for the Company, Executive hereby
assigns to the Company the entire right, title and interest in and to any such idea, discovery, invention, improvement, software,
writing or other material or design. Pursuant to California Labor Code Section 2870, Executive has no obligation to assign
an invention that the Executive developed entirely on his or her own time without using the Company’s equipment, supplies,
facilities, or trade secret information except for those inventions that either: (1) relate at the time of conception or reduction
to practice of the invention to the Company’s business, or actual or demonstrably anticipated research or development of
the Company; or (2) result from any work performed by the Executive for the Company. Executive agrees that any idea, discovery,
invention, improvement, software, writing or other material or design that relates to the business of the Company or relates to
the Company’s actual or demonstrably anticipated research or development which is conceived or suggested by Executive, either
solely or jointly with others, within one (1) year following termination of Executive’s employment with the Company
shall be presumed to have been so made, conceived or suggested in the course of such employment with the use of the Company’s
equipment, supplies, facilities, and/or trade secrets.

 

(ii)            In
order to determine the rights of Executive and the Company in any idea, discovery, invention, improvement, software, writing or
other material, and to insure the protection of the same, Executive agrees that during Executive’s employment, and for one
(1) year after termination of Executive’s employment with the Company, Executive will disclose immediately and fully
to the Company any idea, discovery, invention, improvement, software, writing or other material or design conceived, made or developed
by Executive solely or jointly with others. The Company agrees to keep any such disclosures confidential. Executive also agrees
to record descriptions of all work in the manner directed by the Company and agrees that all such records and copies, samples and
experimental materials will be the exclusive property of the Company. Executive agrees that at the request of and without charge
to the Company, but at the Company’s expense, Executive will execute a written assignment of the idea, discovery, invention,
improvement, software, writing or other material or design to the Company and will assign to the Company any application for letters
patent or for trademark registration made thereon, and to any common-law or statutory copyright therein; and that Executive will
do whatever may be necessary or desirable to enable the Company to secure any patent, trademark, copyright, or other property right
therein in the United States and in any foreign country, and any division, renewal, continuation, or continuation in part thereof,
or for any reissue of any patent issued thereon. In the event the Company is unable, after reasonable effort, and in any event
after ten (10) business days, to secure Executive’s signature on a written assignment to the Company of any application
for letters patent or to any common law or statutory copyright or other property right therein, whether because of Executive’s
physical or mental incapacity or for any other reason whatsoever, Executive irrevocably designates and appoints the Corporate Secretary
of the Company as Executive’s attorney-in-fact to act on Executive’s behalf to execute and file any such application
and to do all other lawfully permitted acts to further the prosecution and issuance of such letters patent, copyright or trademark.

 

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(iii)            Executive
acknowledges that, to the extent permitted by law, all work papers, reports, documentation, drawings, photographs, negatives, tapes
and masters therefor, prototypes and other materials (hereinafter, “items”) (including, without limitation,
any and all such items generated and maintained on any form of electronic media) generated by Executive during Executive’s
employment with the Company shall be considered a “work made for hire” and that ownership of any and all copyrights
in any and all such items shall belong to the Company.

 

(e)            Remedies
for Breach.

 

(i)            The
Company and Executive agree that the restrictive covenants contained in this Agreement are severable and separate, and the unenforceability
of any specific covenant herein will not affect the validity of any other covenant set forth herein. Executive acknowledges that
the Company will suffer irreparable harm as a result of a material breach of such restrictive covenants by Executive for which
an adequate monetary remedy does not exist and a remedy at law may prove to be inadequate. Accordingly, in the event of any actual
or threatened material breach by Executive of any provision of this Section 6, the Company will, in addition to any other
remedies permitted by law, be entitled to seek to obtain remedies in equity, including, without limitation, specific performance,
injunctive relief, a temporary restraining order, and/or a permanent injunction in any court of competent jurisdiction (each, an
 “Equitable Remedy”), to prevent or otherwise restrain a material breach of this Section 6, without the
necessity of proving damages, posting a bond or other security. Such relief will be in addition to and not in substitution of any
other remedies available to the Company. The existence of any claim or cause of action of Executive against the Company, whether
predicated on this Agreement or otherwise, will not constitute a defense to the enforcement by the Company of said covenants.

 

(ii)            Reasonableness.
Executive acknowledges that Executive’s obligations under this Agreement are reasonable in the context of the nature of the
Company’s business and the competitive injuries likely to be sustained by the Company if Executive were to violate such obligations
and that these obligations do not place an undue burden on Executive. It is the desire and intent of the parties hereto that the
provisions of this Agreement shall be enforced to the fullest extent legally permissible. Accordingly, if any particular provision(s) of
this Agreement shall be adjudicated to be invalid or unenforceable, the court may modify or sever such provision(s), such modification
or deletion to apply only with respect to the operation of such provision(s) in the particular jurisdiction in which such
adjudication is made. In addition, if any one or more of the provisions contained in this Agreement shall for any reason be held
to be excessively broad as to duration, geographical scope, activity or subject, it shall be construed by limiting and reducing
it, so as to be enforceable to the extent compatible with the applicable law as it shall then appear. The remaining provisions
of this Agreement shall remain in full force and effect.

 

    10

     

    

 

(f)            Permitted
Disclosures. Pursuant to 18 U.S.C. §1833(b), Executive will not be held criminally or civilly liable under any Federal
or State trade secret law for the disclosure of a trade secret of the Company that (i) is made (A) in confidence to a
Federal, State, or local government official, either directly or indirectly, or to Executive’s attorney, and (B) solely
for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document
that is filed under seal in a lawsuit or other proceeding. If Executive files a lawsuit for retaliation by the Company for reporting
a suspected violation of law, Executive may disclose the trade secret to Executive’s attorney and use the trade secret information
in the court proceeding, if Executive (1) files any document containing the trade secret under seal, and (2) does not
disclose the trade secret, except pursuant to court order. Nothing in this Agreement is intended to conflict with 18 U.S.C. §1833(b) or
create liability for disclosures of trade secrets that are expressly allowed by such section. Further, nothing in any agreement
Executive has with the Company will prohibit or restrict Executive from making any voluntary disclosure of information or documents
related to any violation of law to any governmental agency or legislative body, or any self-regulatory organization, in each case,
without advance notice to the Company.

 

7.            Assignment.
This Agreement, and all of the terms and conditions hereof, will bind the Company and its successors and assigns and will bind
Executive and Executive’s heirs, executors and administrators. No transfer or assignment of this Agreement will release the
Company from any obligation to Executive hereunder. Neither this Agreement, nor any of the Company’s rights or obligations
hereunder, may be assigned or otherwise subject to hypothecation by Executive, and any such attempted assignment or hypothecation
will be null and void. The Company may assign any of its rights hereunder, in whole or in part, to any successor or assign in connection
with the sale of all or substantially all of the Company’s assets or equity interests or in connection with any merger, acquisition
and/or reorganization.

 

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8.            General.

 

(a)            Notices.
All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed
to have been given: (i) when delivered by hand (with written confirmation of receipt); (ii) when received by the addressee
if sent by a nationally recognized overnight courier (receipt requested); (iii) on the date sent by facsimile or e-mail; or
(iv) on the third (3rd) day after the date mailed, by certified or registered mail, return receipt requested, postage
prepaid. Such communications must be sent to the respective parties at the following addresses (or at such other address for a
party as shall be specified in a notice given in accordance with this Section 9(a)):

 

To the Company:

 

Playboy Enterprises, Inc.

c/o Chris Riley, General Counsel

10960 Wilshire Blvd.,

Suite 2200

Los Angeles, CA 90024

 

To Executive:

 

At the address shown in the Company’s
personnel records.

 

(b)            Entire
Agreement. This Agreement (including any Exhibits hereto) constitutes the sole and entire agreement of the parties to this
Agreement with respect to the subject matter contained herein and therein, and, effective as of the Employment Commencement Date,
immediately prior to the Closing, supersedes all prior and contemporaneous representations, warranties, understandings and agreements,
both written and oral, with respect to such subject matter. Notwithstanding the foregoing, the restrictive covenants in Section 6
of this Agreement do not supersede, and are in addition to, any restrictive covenants in any other types of agreements entered
into after the date of this Agreement between Executive and the Company, such as shareholder agreements or incentive equity award
agreements. In the event that the Closing does not occur for any reason, this Agreement shall become null and void.

 

(c)            Headings.
The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

(d)            Amendment
and Modification; Waiver. This Agreement may only be amended, modified or supplemented by an agreement in writing signed by
all of the parties hereto. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this
Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power
or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

 

(e)            Governing
Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of California without
giving effect to any choice or conflict of law provision or rule (whether of the State of California or any other jurisdiction).

 

(f)             Survivorship.
The provisions of this Agreement necessary to carry out the intention of the parties as expressed herein will survive the termination
or expiration of this Agreement, including without limitation, the provisions of Section 6 hereof.

 

(g)            Construction.
The parties acknowledge that this Agreement is the result of arm’s-length negotiations between sophisticated parties, each
afforded representation by legal counsel. Each and every provision of this Agreement will be construed as though both parties participated
equally in the drafting of the same, and any rule of construction that a document will be construed against the drafting party
will not be applicable to this Agreement.

 

(h)            Withholding.
All compensation payable to Executive pursuant to this Agreement will be subject to any applicable statutory withholding taxes
and such other taxes as are required or permitted under applicable law and such other deductions or withholdings as authorized
by Executive to be collected with respect to compensation paid to Executive. Notwithstanding any provision of this Agreement, the
Company shall not be obligated to guarantee any particular tax result for Executive with respect to any payment provided to Executive
hereunder, and Executive shall be responsible for any personal income taxes imposed on Executive with respect to any such payment.

 

    12

     

    

 

(i)             Section 409A.
The intent of the parties is that payments and benefits under this Agreement comply with, or be exempt from, Section 409A
of the Code, to the extent subject thereto, and accordingly, to the maximum extent permitted, this Agreement shall be interpreted
and administered to be in compliance therewith. Notwithstanding anything contained herein to the contrary, Executive will not be
considered to have terminated employment with the Company for purposes of any payments under this Agreement which are subject to
Section 409A of the Code until Executive would be considered to have incurred a “separation from service” from
the Company within the meaning of Section 409A of the Code. Each amount to be paid or benefit to be provided under this Agreement
shall be construed as a separate identified payment for purposes of Section 409A of the Code. Without limiting the foregoing
and notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or
tax penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be
provided pursuant to this Agreement or any other arrangement between Executive and the Company during the six-month period immediately
following Executive’s separation from service shall instead be paid on the first business day after the date that is six
months following Executive’s separation from service (or, if earlier, Executive’s date of death). To the extent required
to avoid an accelerated or additional tax under Section 409A of the Code, amounts reimbursable to Executive under this Agreement
shall be paid to Executive on or before the last day of the year following the year in which the expense was incurred and the amount
of expenses eligible for reimbursement (and in kind benefits provided to Executive) during one year may not affect amounts reimbursable
or provided in any subsequent year. The Company makes no representation that any or all of the payments described in this Agreement
will be exempt from or comply with Section 409A of the Code and makes no undertaking to preclude Section 409A of the
Code from applying to any such payment.

 

(j)             No
Mitigation. The Company agrees that, upon termination of Executive’s employment hereunder, Executive is not required
to seek other employment or to attempt in any way to reduce any amounts payable to Executive by the Company under this Agreement
or otherwise. Furthermore, no payment or benefit provided for in this Agreement or elsewhere will be reduced by any compensation
earned by Executive as the result of employment by another employer.

 

(k)            Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed
to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission
shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

(l)             Legal
Fees. The Company agrees to reimburse Executive for all reasonable and customary attorneys’ fees and disbursements incurred
by the Executive in connection with the review, negotiation, preparation and execution of this Agreement and any related agreements,
and any other related equity or investment documentation (including but not limited to Executive’s initial equity award),
promptly upon the Executive’s presentation to the Company of a copy of the written invoice from the Executive’s legal
counsel evidencing such fees and disbursements (up to a maximum of $125,000).

 

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(m)            280G
Payments. In the event that any payment or benefit received or to be received by the Executive, whether pursuant to the terms
of this Agreement or any other plan, arrangement or agreement (each a “Payment” and all such payments and benefits
being hereinafter referred to as the “Total Payments”) would be subject, in whole or in part, to the excise
tax imposed under Section 4999 of the Code (the “Excise Tax”), then the Total Payments will be reduced,
but only to the extent that Executive would retain a greater amount on an after-tax basis than Executive would retain absent such
reduction, such that the value of the Total Payments that Executive is entitled to receive will be $1 less than the maximum amount
which Executive may receive without becoming subject to the Excise Tax. A nationally recognized accounting or consulting firm engaged
by the Company shall perform the foregoing calculations, and, in connection therewith, shall perform customary parachute mitigation
analysis and calculations. The Company shall bear all expenses with respect to the determinations by such accounting firm required
to be made hereunder. The accounting firm shall provide its calculations to the Company and Executive within fifteen (15) days
after the date on which Executive’s right to a Payment is triggered (if requested at that time by the Company or Executive)
or such other time as requested by the Company or Executive. Any good faith determinations of the accounting or consulting firm
made hereunder shall be final, binding and conclusive upon the Company and Executive. Any reduction in payments and/or benefits
pursuant to this Section 8(m) will occur in the following order: (1) reduction of cash payments; (2) cancellation
of accelerated vesting of equity awards other than stock options; (3) cancellation of accelerated vesting of stock options;
and (4) reduction of other benefits payable to Executive.

 

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IN WITNESS WHEREOF
AND INTENDING TO BE LEGALLY BOUND THEREBY, the parties hereto have executed and delivered this Agreement as of the year and date
first above written.

 

	 	PLAYBOY ENTERPRISES, INC.
	 	 
	 	By:	/s/ Chris Riley
	 	 	Name:	 Chris Riley
	 	 	Title:	 General Counsel and Secretary

 

	 	EXECUTIVE
	 	 
	 	/s/ Bernhard L. Kohn III
	 	Bernhard L. Kohn III

 

[Signature Page to Employment Agreement]

 

    15

     

    

 

Exhibit A

 

Form of General Release of Claims

 

This General Release
of Claims (this “Agreement”) is entered into by and between Playboy Enterprises, Inc., a Delaware corporation
(the “Company”), and Bernhard L. Kohn III (“Executive”) on the below-indicated date.

 

WHEREAS, Executive,
and the Company entered into an Employment Agreement dated as of January 31, 2021 (the “Employment Agreement”),
that provides Executive certain severance and other benefits in the event of certain terminations of Executive’s employment;

 

WHEREAS, Executive’s
employment has so terminated; and

 

WHEREAS, pursuant to
Section 5(b) or 5(c) of the Employment Agreement, a condition precedent to Executive’s entitlement
to certain severance and other benefits thereunder is his agreement to this Agreement.

 

NOW, THEREFORE, in
consideration of the severance and other benefits provided under Section 5(b) or 5(c) of the Employment Agreement,
the sufficiency of which Executive hereby acknowledges, Executive agrees as follows:

 

1.            General
Release of Claims. Executive, for and on behalf of Executive and Executive’s heirs, executors, administrators, successors
and assigns, hereby voluntarily, knowingly and willingly release and forever discharge the Company and all of its past and present
parents, subsidiaries, and affiliates, each of their respective members, officers, directors, stockholders, partners, employees,
agents, representatives and attorneys, and each of their respective subsidiaries, affiliates, estates, predecessors, successors,
and assigns (each, individually, a “Releasee,” collectively referred to as the “Releasees”)
from any and all rights, claims, charges, actions, causes of action, complaints, sums of money, suits, debts, covenants, contracts,
promises, obligations, damages, demands or liabilities of every kind whatsoever, in law or in equity, whether known or unknown,
suspected or unsuspected (collectively, “Claims”) which Executive or Executive’s heirs, executors, administrators,
successors or assigns ever had, now has or may hereafter claim to have by reason of any matter, cause or thing whatsoever: (i) arising
from the beginning of time up to the date Executive executes this Agreement with respect to (A) any such Claims relating in
any way to Executive’s employment relationship with the Company or any other Releasee, and (B) any such Claims arising
under any federal, local or state statute or regulation, including, without limitation, the Age Discrimination in Employment Act
of 1967, as amended by the Older Workers Benefit Protection Act, Title VII of the Civil Rights Act of 1964, the Americans with
Disabilities Act of 1990, the Employee Retirement Income Security Act of 1974, each as amended and including each of their respective
implementing regulations and/or any other federal, state, local or foreign law (statutory, regulatory or otherwise) that may be
legally waived and released; (ii) arising out of or relating to the termination of Executive’s employment; or (iii) arising
under or relating to any policy, agreement, understanding or promise, written or oral, formal or informal, between the Company
or any other Releasee and Executive.

 

     

     

    

 

2.            Exceptions
to General Release of Claims.

 

(a)            Nothing
contained in this Agreement will in any way diminish or impair: (i) any Claims Executive may have that cannot be waived under
applicable law, (ii) Executive’s rights to severance, the Accrued Rights and other vested benefits provided under Section 5
of the Employment Agreement, (iii) any rights Executive may have to indemnification from the Company or coverage under any
director and officer liability insurance policy or (v) any rights Executive may have in respect of any shares or other vested
equity interests Executive holds in the Company or any of its Affiliates. The Company acknowledges and agrees that this Agreement
does not preclude Executive from filing any charge with the Equal Employment Opportunity Commission, the National Labor Relations
Board, the Securities and Exchange Commission or any other governmental agency or from any way participating in any investigation,
hearing, or proceeding of any government agency. Executive does not need prior authorization from the Company to make any such
reports or disclosures and except as may otherwise be required by applicable law, is not required to notify the Company that Executive
has made such reports or disclosures. This Agreement does not limit Executive’s right to receive an award for information
provided to any governmental agency or entity.

 

(b)            Pursuant
to 18 U.S.C. §1833(b), Executive will not be held criminally or civilly liable under any Federal or State trade secret law
for the disclosure of a trade secret of the Company that (i) is made (A) in confidence to a Federal, State, or local
government official, either directly or indirectly, or to Executive’s attorney, and (B) solely for the purpose of reporting
or investigating a suspected violation of law; or (ii) is made in a complaint or other document that is filed under seal in
a lawsuit or other proceeding. If Executive files a lawsuit for retaliation by the Company for reporting a suspected violation
of law, Executive may disclose the trade secret to his attorney and use the trade secret information in the court proceeding, if
Executive (1) files any document containing the trade secret under seal, and (2) does not disclose the trade secret,
except pursuant to court order. Nothing in this Agreement is intended to conflict with 18 U.S.C. §1833(b) or create liability
for disclosures of trade secrets that are expressly allowed by such section. Further, nothing in any agreement Executive has with
the Company will prohibit or restrict Executive from making any voluntary disclosure of information or documents related to any
violation of law to any governmental agency or legislative body, or any self-regulatory organization, in each case, without advance
notice to the Company.

 

(c)            Executive
acknowledges and agrees that he is aware of California Civil Code Section 1542, which provides as follows:

 

A general release does not extend
to claims which the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing
the release and that, if known by him or her, would have materially affected his or settlement with the debtor or the released
party.

 

With full awareness and understanding of
the above provisions, Executive hereby waives any and all right he may have under Section 1542, as well as under any other
statutes or common law principles of similar effect. Executive intends to, and hereby does, release the Released Parties from claims
which he does not presently know or suspect to exist.

 

    2

     

    

 

3.            Affirmations.
Executive affirms that he has not filed, caused to be filed, or presently is a party to any claim, complaint, or action against
the Company or the other Releasees in any forum or form. Executive furthermore affirms that Executive has no known workplace injuries
or occupational diseases, and has been provided and has not been denied any leave requested under the Family and Medical Leave
Act. Executive disclaims and waives any right of reinstatement with the Company.

 

4.            Restrictive
Covenants. Executive acknowledges and agree that each of the restrictive covenants to which Executive is subject as of the
date hereof (including without limitation, the provisions set forth in Section 6 of the Employment Agreement) will
continue to apply in accordance with their terms for the applicable periods with respect thereto.

 

5.            Governing
Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of California without
giving effect to any choice or conflict of law provision or rule (whether of the State of California or any other jurisdiction).

 

6.            No
Admission of Wrongdoing. The parties agree that neither this Agreement nor the furnishing of the consideration set forth in
the Employment Agreement will be deemed or construed at any time for any purpose as an admission by any party of any liability,
wrongdoing or unlawful conduct of any kind.

 

7.            Consultation
With Attorney; Voluntary Agreement. Executive acknowledges that (a) the Company has advised Executive of Executive’s
right to consult with an attorney of Executive’s own choosing prior to executing this Agreement, (b) Executive has carefully
read and fully understands all of the provisions of this Agreement, (c) Executive is entering into this Agreement, including
the releases set forth in Section 1, knowingly, freely and voluntarily in exchange for good and valuable consideration and
(d) Executive would not be entitled to the benefits described in the applicable sections of the Employment Agreement in the
absence of this Agreement.

 

8.            Revocation.
Executive acknowledges that Executive has been given twenty-one (21) calendar days to consider the terms of this Agreement, although
Executive may sign it sooner. Executive agrees that any modifications, material or otherwise, made to this agreement do not restart
or affect in any manner the original twenty-one (21) calendar day consideration period. Executive will have seven calendar days
from the date on which Executive sign this Agreement to revoke Executive’s consent to the terms of this Agreement by providing
notice to the Company in accordance with Section 8(a) of the Employment Agreement. Notice of such revocation must
be received within the seven calendar days referenced above. In the event of such revocation by Executive, this Agreement will
not become effective and Executive will not have any rights under Section 5(b) or 5(c) of the Employment
Agreement. Provided that Executive does not revoke this Agreement within such seven calendar day period, this Agreement will become
effective on the eighth calendar day after the date on which Executive signs this Agreement.

 

[Remainder of page is left blank intentionally]

 

    3

     

    

 

IN WITNESS WHEREOF
AND INTENDING TO BE LEGALLY BOUND THEREBY, the parties hereto have executed and delivered this Agreement as of the date written
below.

 

	 	PLAYBOY ENTERPRISES, INC.

 

	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	 	EXECUTIVE
	 	 
	 	Bernhard L. Kohn III

 

[Signature Page to Release Agreement]Exhibit 10.24

 

EXECUTION
VERSION

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(this “Agreement”) is made and entered into as of February 10, 2021, by and between Playboy Enterprises, Inc.,
a Delaware corporation (the “Company”), and Chris Riley (“Executive” and, together with the
Company, the “Parties”).

 

RECITALS

 

WHEREAS, the Company,
Mountain Crest Acquisition Corp., a Delaware corporation (“Parent”) and the other parties named therein have
entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which Parent will acquire
the Company and adopt the name of “PLBY Group, Inc.”, on the terms and subject to the conditions set forth therein
(the “Acquisition”);

 

WHEREAS, in connection
with the Acquisition, the Parties intend that Executive shall continue employment as the General Counsel of the Company effective
as of the Closing Date, immediately prior to and contingent upon the Closing, as such terms are defined in the Merger Agreement
(the “Employment Commencement Date”) and this Agreement shall be assumed by Parent on the Closing. References
to the “Company” in this Agreement shall also be deemed to refer to “Parent” following the Closing, as
applicable.

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt
of which are hereby acknowledged, the Parties hereto agree as follows:

 

1.            Term.
Executive’s employment with the Company under the terms and conditions of this Agreement will commence on the Employment
Commencement Date and shall continue until such time as Executive’s employment is terminated in accordance with the terms
and conditions of Section 5 of this Agreement (the “Term”). Notwithstanding any provision of this
Agreement to the contrary, Executive shall be employed on an “at-will” basis and Executive’s employment may be
terminated by either Party at any time.

 

2.            Title;
Services and Duties.

 

(a)            During
the Term, Executive will be employed by the Company as its General Counsel, and shall report directly to the Chief Executive Officer
of the Company (the “CEO”).

 

(b)            During
the Term, Executive will (i) be a full-time employee of the Company and (ii) have such duties, responsibilities and authority
as are reasonably prescribed by the CEO or the Board of Directors of the Company (the “Board”) from time to
time and normally associated with or not inconsistent with the role of General Counsel. Notwithstanding the foregoing, Executive
may (x) serve as a director or advisor of non-profit organizations without approval of the Board and as director or advisor
of for profit companies with the prior approval of the Board, (y) perform and participate in charitable civic, educational,
professional, community, industry affairs and other related activities, and (z) manage his and his family’s personal
investments; provided, however, that, in each case, such activities do not materially interfere, individually or
in the aggregate, with the performance of his duties hereunder, do not violate the provisions of Section ‎6, and
do not create a fiduciary or business conflict.

 

    1 

     

    

 

(c)            During
the Term, Executive shall devote all of the Executive’s business time, energy, business judgment, knowledge and skill and
Executive’s best efforts to the performance of Executive’s duties with the Company.

 

(d)            The
primary place of Executive’s employment with the Company will be the place principal duties are performed by Executive as
of the Employment Commencement Date, although Executive understands and agrees that Executive may be required to travel from time
to time for business reasons.

 

3.            Compensation.

 

(a)            Base
Salary. The Company will pay Executive a base salary in the amount of four-hundred thousand dollars ($400,000) per annum (the
 “Base Salary”) during the Term, payable in accordance the Company’s regular payroll practices as in effect
from time to time, but in no event less frequently than monthly. The Base Salary will be reviewed by the Board annually during
the Term, and shall be subject to increase but not decrease.

 

(b)            Cash
Bonus.

 

(i)            Executive
will be eligible to receive an annual cash bonus for each fiscal year of the Company during the Term with a target amount equal
to 80% of the Base Salary. The actual amount of the annual cash bonus, if any, payable to Executive in respect of any fiscal year
during the Term will be based on the achievement of performance criteria which may relate to financial and non-financial metrics
as reasonably determined by the Board after consultation with Executive and the CEO.

 

(ii)           Any
annual cash bonus that becomes payable to Executive under this Section 3(b) will be paid to Executive, in cash,
when annual bonuses are paid to the Company’s other senior executives and as soon as practicable but no later than March 15
following the end of the fiscal year of the Company to which it relates.

 

(c)            Long-Term
Incentive Compensation.

 

(i)            Starting
in 2022 and for each subsequent fiscal year of the Company during the Term, Executive shall be eligible to receive long-term incentive
compensation grants with a target grant date fair value for financial accounting purposes of seven-hundred thousand ($700,000)
(“Annual Equity Awards”), including any performance-based grants at the target level which may be earned based
on the achievement of such performance criteria as established by the Board or the Compensation Committee of the Board (the “Committee”)
on terms no less favorable than those that apply to other senior executives of the Company, generally. On a termination of Executive’s
employment by the Company without Cause or by Executive for Good Reason (each, an “Involuntary Termination”),
100% of the then-outstanding Annual Equity Awards will fully vest and become exercisable, with stock options remaining exercisable
until the earlier of the end of the term of the stock options or one year after the date of termination (except for those Annual
Equity Awards that include performance-based vesting conditions, which will remain outstanding and eligible to vest based on the
level of actual attainment of the relevant performance conditions) (the “Annual Equity Acceleration”).

 

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(ii)            Following
the Closing, the Executive shall receive a special long-term incentive compensation grant comprised of: (A) performance-based
restricted stock units, with a seven year term, that if earned will settle in a number of shares of Company common stock equal
to the target percentage of 0.45% of the fully diluted Company common shares outstanding on the date of grant, determined on a
post-money, post-conversion basis (including any equity awards granted to the Executive and other senior level executives in connection
with the Closing or within thirty (30) days of the filing of Form S-8 as described below) (“Initial PSUs”)
and (B) stock options to purchase a number of shares of Company common stock, with a ten year term, equal to the target percentage
of 0.18% of the fully diluted Company common shares outstanding on the date of grant (determined as set forth above for the Initial
PSUs) (the “Initial Options”). The Initial PSUs and the Initial Options will be granted no later than thirty
(30) days after (and contingent upon) the listing of the shares of Company common stock on the Nasdaq Stock Market and the registration
of the offer and sale of the shares of common stock underlying such awards with the Securities and Exchange Commission on Form S-8
(which is expected to occur approximately 60 days following the Closing). In addition, if the fair market value of a share of Company
common stock on the date of grant is greater than the fair market value of a share of Company common stock on the Employment Commencement
Date, then a portion of the Initial Options will be converted into a number of time-based restricted stock units equal to (x) the
difference between the fair market value per share of Company common stock on the date of grant minus the fair market value per
share of Company common stock on the Employment Commencement Date, multiplied by (y) the number of Initial Options (determined
without regard to the conversion described in this sentence), divided by (z) the fair market value of a share of Company common
stock on the date of grant (the “Make-Up RSUs”), rounded down to the nearest whole number of shares. The Initial
PSUs will be eligible to be earned 25% upon achieving each of the following thirty (30) day volume-weighted average price milestones
for a share of Company common stock, subject to Executive’s continued employment or service on the Board through the applicable
vesting date: $20, $30, $40 and $50. Any Initial PSUs that satisfy such vesting terms will be settled within thirty (30) days after
the applicable vesting date. Shares of Company common stock received upon the settlement of the Initial PSUs (and, if applicable,
the Make-Up RSUs) will be subject to transfer restrictions for twelve-months from the date of settlement of the Initial PSUs (or,
if applicable, the Make-Up RSUs), net of a number of shares of Company common stock in respect of the applicable required tax withholding,
to the extent that the Company has cash reserves to provide for such net settlement. The Initial Options will vest 1/3 on the first
anniversary of the Employment Commencement Date and then monthly in twenty-four (24) equal installments commencing on the thirteenth
month anniversary of the Employment Commencement Date. If granted, the Make-Up RSUs will be eligible to vest in three equal installments
on each of the first three anniversaries of the Employment Commencement Date, in each case subject to Executive’s continued
employment through the applicable vesting dates. Upon an Involuntary Termination, the Initial PSUs will remain outstanding and
eligible to vest based on attainment of the share-price milestones set forth above until the earlier of the end of the seven-year
term of the Initial PSUs or ninety (90) days after the date of termination, and upon an Involuntary Termination that occurs within
12 months following the Employment Commencement Date, 1/3 of the Initial Options (and if applicable, 1/3 of the Make-Up RSUs) will
become immediately vested and exercisable upon the date of such termination (the “Special Equity Treatment”).
Upon an Involuntary Termination occurring 24 months after a Change in Control, 100% of the then-outstanding Initial PSUs will fully
vest, and the Initial Options will become immediately vested and exercisable upon the date of such termination and remain exercisable
until the earlier of the end of the ten-year term or three years after the date of termination (the “Special Equity CIC
Treatment”).

 

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4.            Employee
Benefits.

 

(a)            Retirement
and Welfare Benefits. During the Term, Executive will be eligible to participate in all benefit plans made available by the
Company to its senior executives, including health insurance, life insurance and participation in an Internal Revenue Code (the
 “Code”) Section 401(k) retirement plan. Such benefits will be subject to the applicable limitations
and requirements imposed by the terms of such benefit plans and will be governed in all respects in accordance with the terms of
such plans as in effect from time to time. Notwithstanding the foregoing, nothing in this Agreement shall adversely affect the
Company’s ability to modify or terminate any employee retirement, health or welfare benefit plan at any time.

 

(b)            Paid
Vacation. During the Term, Executive will be entitled to an unlimited amount of paid vacation, subject to the needs of the
business and approval of the CEO (which approval is not to be unreasonably withheld), in accordance with the terms and conditions
of the Company’s vacation policies as in effect from time to time.

 

(c)            Reimbursement
of Business Expenses. The Company will reimburse Executive to the same extent as other senior employees for any reasonable
expenses incurred by Executive during the Term in furtherance of Executive’s duties hereunder, including travel, meals and
accommodations and in respect of technology required to perform remote working arrangements, upon submission by Executive of vouchers
or receipts in accordance with applicable Company policies.

 

(d)            Life
and Disability Insurance. During the Term, the Company agrees to provide Executive with a life insurance policy, at the Company’s
expense, providing for a death benefit in the amount of $10 million and a disability insurance policy, at the Company’s expense,
with an annualized benefit not less than $2.5 million.

 

(e)            Insurance;
Indemnification. During and after the Term, (i) Executive will be covered by such directors’ and officers’
liability insurance on no less favorable terms as directors and officers (both during and after their term) of the Company or any
of the applicable Affiliates for which Executive serves as a director or officer and (ii) Executive will also be entitled
to indemnification rights and related expense advances and reimbursements to the same extent as any other director or officer (both
during and after their term) of the Company or any of its Affiliates for which Executive serves as a director or officer.

 

5.            Termination
of Employment. Executive’s employment will be terminated at the earliest to occur of the following during the Term: (i) the
date on which the Company provides notice to Executive of termination for “Disability” (as defined below); (ii) the
date of Executive’s death; (iii) the date on which the Company provides notice to Executive of termination for “Cause”
(as defined below); (iv) the date which is thirty (30) days following the date on which the Company provides notice to Executive
of termination without Cause; (v) the date specified by Executive in any notice to the Company of termination of employment
other than for “Good Reason” (as defined below); or (vi) the applicable date as determined in accordance with
the definition of Good Reason if such termination is by Executive for Good Reason.

 

    4 

     

    

 

(a)            For
Cause; Resignation by Executive Other than for Good Reason; Death or Disability. If Executive’s employment with the Company
is terminated by the Company for Cause or as a result of Executive’s death or Disability, or Executive resigns his employment
other than for Good Reason, Executive will not be entitled to any further compensation or benefits other than, in each case if
applicable as of the date of termination: (i) any accrued but unpaid Base Salary (payable as provided in Section 3(a) hereof);
(ii) in the event that such termination is other than by the Company for Cause, an amount in cash equal to any annual cash
bonus payable to Executive in respect of any previously completed fiscal year of the Company in accordance with Section 3(b) but
unpaid as of the date of termination, payable on the same date on which annual cash bonuses are paid to executives of the Company
generally in respect of such fiscal year; (iii) reimbursement for any expenses properly incurred and reported by Executive
prior to the date of termination in accordance with Section 4(c) hereof, payable on the Company’s first
regularly scheduled payroll date which occurs at least 10 business days after the date of termination; and (iv) vested employee
benefits, if any, to which Executive may be entitled under the applicable terms of the Company’s employee benefit plans as
may be in effect as of the date of termination (collectively, the “Accrued Rights”). In addition, Executive
will also be eligible to receive the Pro-Rated Bonus (as defined below) if such termination is for death or Disability.

 

(b)            Termination
by the Company without Cause or Resignation for Good Reason. If Executive’s employment is terminated by the Company without
Cause or Executive resigns his employment for Good Reason, then Executive will be entitled to receive the Accrued Rights, and if
Executive executes a release of claims in the form attached as Exhibit A hereto, subject to any revisions necessary to reflect
changes in applicable law occurring after the date hereof (the “Release”), and the applicable revocation period
with respect to the Release expires within sixty (60) days (or such longer period as required by law) following the date of termination,
then Executive will receive the following:

 

(i)            An
amount in cash equal to the sum of (A) the Base Salary as in effect immediately prior to the date of termination (without
regard to any reduction resulting in Good Reason) plus (B) the target annual bonus for the year of termination, which total
amount will be payable in regular installments in accordance with the Company’s normal payroll practices (but in no event
less frequently than monthly) over a period of twelve (12) months following Executive’s last day of employment with the Company;
provided, however, that the first installment shall not occur until the first regularly scheduled payroll date of
the Company that occurs on or following the effective date of the Release as defined in Section 8 of the Release and shall
include all payments that would have been made had such installments commenced immediately following Executive’s last day
of employment; provided, further that to the extent that the period to consider the Release spans two calendar years,
such first installment shall occur in the second calendar year, to the extent that such installment constitutes nonqualified deferred
compensation for purposes of Section 409A of the Code;

 

(ii)           An
amount in cash equal to the product of (A) Executive’s target annual cash bonus for the fiscal year in which the date
of termination occurs and (B) a fraction, the numerator of which is the number of days Executive was employed during the fiscal
year in which the date of termination occurs, and the denominator of which is 365, payable on the same date on which annual cash
bonuses are paid to executives of the Company generally in respect of such fiscal year (the “Pro-Rated Bonus”);

 

    5 

     

    

 

(iii)          If
Executive elects continuation coverage under the Company’s medical, dental and vision program pursuant to Part 6 of
Subtitle B of Title I of the Employee Retirement Income Security Act of 1974, as amended (“COBRA”), reimbursement
for the full COBRA premium payments (which reimbursement will be made within thirty (30) days following receipt of evidence from
Executive of Executive’s payment of such premiums), or, if it would result in a better after-tax benefit for the Executive,
direct payment to the provider for the full COBRA premium payments for the 18 calendar months immediately following the end of
the calendar month in which the date of termination occurs (provided that the Company may modify its obligation under this Section 5(b)(iii) to
the extent reasonably necessary (and to the minimum extent necessary) to avoid any penalty or excise taxes imposed on it in connection
with the continued payment of premiums by the Company under the Patient Protection and Affordable Care Act of 2010, as amended)
(the “Health Care Continuation”); provided, further that such contributions shall cease to be effective as of
the date that Executive obtains health, dental and vision benefits from a subsequent employer; and

 

(iv)          The
Annual Equity Acceleration and the Special Equity Treatment (without duplication).

 

(c)            Termination
by the Company without Cause or Resignation for Good Reason Following a Change in Control. If Executive’s employment
is terminated by the Company without Cause or Executive resigns his employment for Good Reason during the period beginning on a
Change in Control and ending twenty-four (24) months after such Change in Control, then Executive will be entitled to receive the
Accrued Rights, and, if Executive executes the Release, and the applicable revocation period with respect to the Release expires
within 60 days (or such longer period as required by law) following the date of termination, then Executive will receive the following
in lieu of the amounts described in Section 5(b) above:

 

(i)            An
amount equal to one-and-a-quarter (1.25) times the sum of (A) the Base Salary as in effect immediately prior to the date of
termination (without regard to any reduction resulting in Good Reason) plus (B) the target annual bonus for the year of termination,
which total amount will be payable in regular installments in accordance with the Company’s normal payroll practices (but
in no event less frequently than monthly) over a period of fifteen (15) months following Executive’s last day of employment
with the Company; provided, however, that the first installment shall not occur until the first regularly scheduled
payroll date of the Company that occurs on or following the effective date of the Release as defined in Section 8 of the Release
and shall include all payments that would have been made had such installments commenced immediately following Executive’s
last day of employment; provided, further that to the extent that the period to consider the Release spans two calendar
years, such first installment shall occur in the second calendar year, to the extent that such installment constitutes nonqualified
deferred compensation for purposes of Section 409A of the Code;

 

(ii)           The
Pro-Rated Bonus;

 

(iii)          Health
Care Continuation; and

 

(iv)          The
Annual Equity Acceleration and the Special Equity CIC Treatment (without duplication).

 

    6 

     

    

 

(d)          Definitions.
For purposes of this Agreement:

 

(i)            “Affiliate”
as applied to any Person, means any other Person directly or indirectly controlling, controlled by, or under common control with,
that Person. For the purposes of this definition “control” (including, with correlative meanings, the terms
 “controlling”, “controlled by” and “under common control with”), as applied
to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and
policies of that Person, whether through the ownership of voting securities (the ownership of more than 50% of the voting securities
of an entity shall for purposes of this definition be deemed to be “control”), by contract or otherwise.

 

(ii)           “Cause”
means (in each case, other than due to death or Disability): (A) Executive’s conviction of, or plea of guilty or nolo
contendere to, any felony; (B) any material act of theft, dishonesty, embezzlement or misappropriation by Executive against
the Company or any of its Affiliates; (C) Executive’s willful or material breach of a fiduciary obligation to the Company
or any willful malfeasance or gross negligence in the performance of Executive’s duties to the Company; (D) a material
violation by Executive of any written policy of the Company that results in material economic harm to the Company; (E) a
willful material breach by Executive of Section 6(b) or (c) of this Agreement; or (F) any continued willful
failure by Executive to follow the reasonable and lawful written directives of the CEO or the Board that are related to Executive’s
position with the Company. Notwithstanding the foregoing, in no event will the occurrence of any such condition constitute Cause
unless (1) the Company provides written notice to Executive of the existence of the condition giving rise to Cause within
thirty (30) days following the Company’s knowledge of its existence and (2) Executive fails to cure such condition,
if curable, within thirty (30) days following the date of such notice, upon which failure to cure Executive’s employment
will immediately terminate for Cause; provided that Executive shall not be provided the ability to cure repeated occurrences of
the same event. For purposes of this Section 5(c)(ii), no act, or failure to act, by Executive will be considered
 “willful” unless committed in bad faith and without a reasonable belief that the act or omission was in the best interests
of the Company.

 

(iii)          “Change
in Control” has the meaning set forth in the Company 2021 Equity and Incentive Compensation Plan.

 

(iv)          “Disability”
means Executive is unable, due to physical or mental incapacity, to perform his duties to the Company under this Agreement, as
determined by the Board, for a period of either (A) ninety (90) consecutive days or (B) one-hundred-eighty (180) days
in any 12-month period.

 

(v)           “Good
Reason” means, in each case without Executive’s consent, (A) a decrease in Executive’s base salary,
target bonus or target long-term incentive compensation opportunity, other than a decrease of not less than 10% that is materially
consistent with similar decreases required of other senior executives of the Company; (B) a material diminution in Executive’s
duties, responsibilities or authority or an adverse change in Executive’s title (provided, however, that any change in duties,
responsibilities or authority solely due to the Company becoming privately owned will not constitute Good Reason so long as Executive
continues to be the general counsel of the Company following such transaction); (C) a requirement that Executive report to
anyone other than the CEO or the Board or, following a Change in Control, the CEO or the board of directors of any successor to
the Company or ultimate parent of any successor or surviving entity; (D) a relocation of Executive’s primary office
location outside of the greater Los Angeles, California metropolitan area without his express written consent; or (E) a material
breach of this Agreement or any other material compensatory arrangement with the Company by the Company. Notwithstanding the foregoing,
in no event will the occurrence of any such condition constitute Good Reason unless (1) Executive provides notice to the Company
of the existence of the condition giving rise to Good Reason within ninety (90) days following Executive’s knowledge of its
existence and (2) the Company fails to cure such condition within thirty (30) days following the date of such notice, and
(3) Executive terminates employment within thirty (30) days after the end of the cure period.

 

    7 

     

    

 

(vi)          “Person”
means any individual, corporation, partnership, limited liability company, joint venture, association, trust or other entity or
organization, including a government or political subdivision or an agency or instrumentality thereof.

 

6.            Restrictive
Covenants.

 

(a)            Acknowledgment.
Executive agrees and acknowledges that, in the course of Executive’s employment, Executive will acquire access to and become
acquainted with information about the Company and its Affiliates that is non-public, confidential or proprietary in nature. Executive
recognizes that in order to guard the legitimate interests of the Company, it is necessary for it to protect all “Confidential
Information” (as defined below) and the disclosure of Confidential Information would place the Company at a competitive disadvantage.

 

(b)            Confidential
Information. During Executive’s employment and at all times following Executive’s termination of employment for
any reason, Executive will hold in confidence all non-public information, matters and materials of the Company, including, without
limitation, know-how, trade secrets, customer lists, pricing policies, operational methods, information relating to products, processes,
customers, services and other business and financial affairs and information as to customers or other third parties (collectively,
the “Confidential Information”), in each case to which Executive has had or may have access and will not, directly
or indirectly, use or disclose such Confidential Information to any Person other than (i) to the extent required in the course
of Executive’s employment or as otherwise expressly required in connection with court process or requested by a governmental
or regulatory body, (ii) as may be required by law(with advance notice to the Company prior to any such disclosure to the
extent legally permitted) or (iii) to Executive’s personal advisers for purposes of enforcing or interpreting this Agreement
(or in the case of any other litigation between Executive and the Company), or to a court or arbitrator for the purpose of enforcing
or interpreting this Agreement (or in the case of any other litigation between Executive and the Company), and who in each case
have been informed as to the confidential nature of such Confidential Information and, as to advisers, their obligation to keep
such Confidential Information confidential. “Confidential Information” will not include any information which is in
the public or industry domain during Executive’s employment, provided such information is not in the public or industry domain
as a consequence of any action or inaction by Executive in violation of this Agreement. Upon the termination of Executive’s
employment for any reason, Executive will deliver to the Company all documents, papers and records (including, but not limited
to, electronic media) in Executive’s possession or subject to Executive’s control that (x) belong to the Company
or (y) contain or reflect any Confidential Information concerning the Company.

 

    8 

     

    

 

(c)            Non-Solicitation.
In consideration of the Company’s obligations hereunder, during Executive’s employment and for a period of 12 months
thereafter, Executive will not, whether for Executive’s own account or for any other Person, directly or indirectly, with
or without compensation solicit, retain, knowingly hire, knowingly offer to hire, entice away or in any manner persuade or attempt
to persuade any officer or employee of the Company or any of its subsidiaries who was employed, engaged or recruited during Executive’s
employment with the Company to discontinue his or her relationship with the Company. Executive will not directly or indirectly
at any time during Executive’s employment or for 12 months thereafter, attempt to disrupt, damage, impair or interfere with
the Company’s business by disrupting the relationship between the Company and any of its consultants, agents, representatives
or vendors. Executive acknowledges that this covenant is necessary to enable the Company to maintain a stable workforce and remain
in business. Non-targeted, general, solicitations to the public shall be deemed not to breach this Section 6(c).

 

(d)            Discoveries
and Inventions; Work Made for Hire.

 

(i)            Executive
agrees that upon conception and/or development of any idea, discovery, invention, improvement, software, writing or other material
or design that: (A) relates to the business of the Company, or (B) relates to the Company’s actual or demonstrably
anticipated research or development, or (C) results from any work performed by Executive for the Company, Executive hereby
assigns to the Company the entire right, title and interest in and to any such idea, discovery, invention, improvement, software,
writing or other material or design. Pursuant to California Labor Code Section 2870, Executive has no obligation to assign
an invention that the Executive developed entirely on his or her own time without using the Company’s equipment, supplies,
facilities, or trade secret information except for those inventions that either: (1) relate at the time of conception or reduction
to practice of the invention to the Company’s business, or actual or demonstrably anticipated research or development of
the Company; or (2) result from any work performed by the Executive for the Company. Executive agrees that any idea, discovery,
invention, improvement, software, writing or other material or design that relates to the business of the Company or relates to
the Company’s actual or demonstrably anticipated research or development which is conceived or suggested by Executive, either
solely or jointly with others, within one (1) year following termination of Executive’s employment with the Company
shall be presumed to have been so made, conceived or suggested in the course of such employment with the use of the Company’s
equipment, supplies, facilities, and/or trade secrets.

 

(ii)           In
order to determine the rights of Executive and the Company in any idea, discovery, invention, improvement, software, writing or
other material, and to insure the protection of the same, Executive agrees that during Executive’s employment, and for one
(1) year after termination of Executive’s employment with the Company, Executive will disclose immediately and fully
to the Company any idea, discovery, invention, improvement, software, writing or other material or design conceived, made or developed
by Executive solely or jointly with others. The Company agrees to keep any such disclosures confidential. Executive also agrees
to record descriptions of all work in the manner directed by the Company and agrees that all such records and copies, samples and
experimental materials will be the exclusive property of the Company. Executive agrees that at the request of and without charge
to the Company, but at the Company’s expense, Executive will execute a written assignment of the idea, discovery, invention,
improvement, software, writing or other material or design to the Company and will assign to the Company any application for letters
patent or for trademark registration made thereon, and to any common-law or statutory copyright therein; and that Executive will
do whatever may be necessary or desirable to enable the Company to secure any patent, trademark, copyright, or other property right
therein in the United States and in any foreign country, and any division, renewal, continuation, or continuation in part thereof,
or for any reissue of any patent issued thereon. In the event the Company is unable, after reasonable effort, and in any event
after ten (10) business days, to secure Executive’s signature on a written assignment to the Company of any application
for letters patent or to any common law or statutory copyright or other property right therein, whether because of Executive’s
physical or mental incapacity or for any other reason whatsoever, Executive irrevocably designates and appoints the Corporate Secretary
of the Company as Executive’s attorney-in-fact to act on Executive’s behalf to execute and file any such application
and to do all other lawfully permitted acts to further the prosecution and issuance of such letters patent, copyright or trademark.

 

    9 

     

    

 

(iii)          Executive
acknowledges that, to the extent permitted by law, all work papers, reports, documentation, drawings, photographs, negatives,
tapes and masters therefor, prototypes and other materials (hereinafter, “items”) (including, without limitation,
any and all such items generated and maintained on any form of electronic media) generated by Executive during Executive’s
employment with the Company shall be considered a “work made for hire” and that ownership of any and all copyrights
in any and all such items shall belong to the Company.

 

(e)            Remedies
for Breach.

 

(i)            The
Company and Executive agree that the restrictive covenants contained in this Agreement are severable and separate, and the unenforceability
of any specific covenant herein will not affect the validity of any other covenant set forth herein. Executive acknowledges that
the Company will suffer irreparable harm as a result of a material breach of such restrictive covenants by Executive for which
an adequate monetary remedy does not exist and a remedy at law may prove to be inadequate. Accordingly, in the event of any actual
or threatened material breach by Executive of any provision of this Section 6, the Company will, in addition to any other
remedies permitted by law, be entitled to seek to obtain remedies in equity, including, without limitation, specific performance,
injunctive relief, a temporary restraining order, and/or a permanent injunction in any court of competent jurisdiction (each, an
 “Equitable Remedy”), to prevent or otherwise restrain a material breach of this Section 6, without the
necessity of proving damages, posting a bond or other security. Such relief will be in addition to and not in substitution of any
other remedies available to the Company. The existence of any claim or cause of action of Executive against the Company, whether
predicated on this Agreement or otherwise, will not constitute a defense to the enforcement by the Company of said covenants.

 

(ii)           Reasonableness.
Executive acknowledges that Executive’s obligations under this Agreement are reasonable in the context of the nature of the
Company’s business and the competitive injuries likely to be sustained by the Company if Executive were to violate such obligations
and that these obligations do not place an undue burden on Executive. It is the desire and intent of the parties hereto that the
provisions of this Agreement shall be enforced to the fullest extent legally permissible. Accordingly, if any particular provision(s) of
this Agreement shall be adjudicated to be invalid or unenforceable, the court may modify or sever such provision(s), such modification
or deletion to apply only with respect to the operation of such provision(s) in the particular jurisdiction in which such
adjudication is made. In addition, if any one or more of the provisions contained in this Agreement shall for any reason be held
to be excessively broad as to duration, geographical scope, activity or subject, it shall be construed by limiting and reducing
it, so as to be enforceable to the extent compatible with the applicable law as it shall then appear. The remaining provisions
of this Agreement shall remain in full force and effect.

 

    10 

     

    

 

(f)            Permitted
Disclosures. Pursuant to 18 U.S.C. §1833(b), Executive will not be held criminally or civilly liable under any Federal
or State trade secret law for the disclosure of a trade secret of the Company that (i) is made (A) in confidence to a
Federal, State, or local government official, either directly or indirectly, or to Executive’s attorney, and (B) solely
for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document
that is filed under seal in a lawsuit or other proceeding. If Executive files a lawsuit for retaliation by the Company for reporting
a suspected violation of law, Executive may disclose the trade secret to Executive’s attorney and use the trade secret information
in the court proceeding, if Executive (1) files any document containing the trade secret under seal, and (2) does not
disclose the trade secret, except pursuant to court order. Nothing in this Agreement is intended to conflict with 18 U.S.C. §1833(b) or
create liability for disclosures of trade secrets that are expressly allowed by such section. Further, nothing in any agreement
Executive has with the Company will prohibit or restrict Executive from making any voluntary disclosure of information or documents
related to any violation of law to any governmental agency or legislative body, or any self-regulatory organization, in each case,
without advance notice to the Company.

 

7.            Assignment.
This Agreement, and all of the terms and conditions hereof, will bind the Company and its successors and assigns and will bind
Executive and Executive’s heirs, executors and administrators. No transfer or assignment of this Agreement will release the
Company from any obligation to Executive hereunder. Neither this Agreement, nor any of the Company’s rights or obligations
hereunder, may be assigned or otherwise subject to hypothecation by Executive, and any such attempted assignment or hypothecation
will be null and void. The Company may assign any of its rights hereunder, in whole or in part, to any successor or assign in connection
with the sale of all or substantially all of the Company’s assets or equity interests or in connection with any merger, acquisition
and/or reorganization.

 

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8.            General.

 

(a)            Notices.
All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed
to have been given: (i) when delivered by hand (with written confirmation of receipt); (ii) when received by the addressee
if sent by a nationally recognized overnight courier (receipt requested); (iii) on the date sent by facsimile or e-mail; or
(iv) on the third (3rd) day after the date mailed, by certified or registered mail, return receipt requested, postage
prepaid. Such communications must be sent to the respective parties at the following addresses (or at such other address for a
party as shall be specified in a notice given in accordance with this Section 8(a)):

 

To the Company:

 

PLBY Group, Inc.

c/o Ben Kohn, CEO

10960 Wilshire Blvd.,

Suite 2200

Los Angeles, CA 90024

 

To Executive:

 

At the address shown in the Company’s
personnel records.

 

(b)            Entire
Agreement. This Agreement (including any Exhibits hereto) constitutes the sole and entire agreement of the parties to this
Agreement with respect to the subject matter contained herein and therein, and, effective as of the Employment Commencement Date
supersedes all prior and contemporaneous representations, warranties, understandings and agreements, both written and oral, with
respect to such subject matter. Notwithstanding the foregoing, the restrictive covenants in Section 6 of this Agreement
do not supersede, and are in addition to, any restrictive covenants in any other types of agreements entered into between Executive
and the Company, such as shareholder agreements or incentive equity award agreements. In the event that the Closing does not occur
for any reason, this Agreement shall become null and void.

 

(c)            Headings.
The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

(d)           Amendment
and Modification; Waiver. This Agreement may only be amended, modified or supplemented by an agreement in writing signed by
all of the parties hereto. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this
Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power
or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

 

(e)            Governing
Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of California without
giving effect to any choice or conflict of law provision or rule (whether of the State of California or any other jurisdiction).

 

(f)            Survivorship.
The provisions of this Agreement necessary to carry out the intention of the parties as expressed herein will survive the termination
or expiration of this Agreement, including without limitation, the provisions of Section 6 hereof.

 

(g)            Construction.
The parties acknowledge that this Agreement is the result of arm’s-length negotiations between sophisticated parties, each
afforded representation by legal counsel. Each and every provision of this Agreement will be construed as though both parties participated
equally in the drafting of the same, and any rule of construction that a document will be construed against the drafting party
will not be applicable to this Agreement.

 

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(h)          Withholding.
All compensation payable to Executive pursuant to this Agreement will be subject to any applicable statutory withholding taxes
and such other taxes as are required or permitted under applicable law and such other deductions or withholdings as authorized
by Executive to be collected with respect to compensation paid to Executive. Notwithstanding any provision of this Agreement, the
Company shall not be obligated to guarantee any particular tax result for Executive with respect to any payment provided to Executive
hereunder, and Executive shall be responsible for any personal income taxes imposed on Executive with respect to any such payment.

 

(i)            Section 409A.
The intent of the parties is that payments and benefits under this Agreement comply with, or be exempt from, Section 409A
of the Code, to the extent subject thereto, and accordingly, to the maximum extent permitted, this Agreement shall be interpreted
and administered to be in compliance therewith. Notwithstanding anything contained herein to the contrary, Executive will not be
considered to have terminated employment with the Company for purposes of any payments under this Agreement which are subject to
Section 409A of the Code until Executive would be considered to have incurred a “separation from service” from
the Company within the meaning of Section 409A of the Code. Each amount to be paid or benefit to be provided under this Agreement
shall be construed as a separate identified payment for purposes of Section 409A of the Code. Without limiting the foregoing
and notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or
tax penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be
provided pursuant to this Agreement or any other arrangement between Executive and the Company during the six-month period immediately
following Executive’s separation from service shall instead be paid on the first business day after the date that is six
months following Executive’s separation from service (or, if earlier, Executive’s date of death). To the extent required
to avoid an accelerated or additional tax under Section 409A of the Code, amounts reimbursable to Executive under this Agreement
shall be paid to Executive on or before the last day of the year following the year in which the expense was incurred and the amount
of expenses eligible for reimbursement (and in kind benefits provided to Executive) during one year may not affect amounts reimbursable
or provided in any subsequent year. The Company makes no representation that any or all of the payments described in this Agreement
will be exempt from or comply with Section 409A of the Code and makes no undertaking to preclude Section 409A of the
Code from applying to any such payment.

 

(j)           No
Mitigation. The Company agrees that, upon termination of Executive’s employment hereunder, Executive is not required
to seek other employment or to attempt in any way to reduce any amounts payable to Executive by the Company under this Agreement
or otherwise. Furthermore, no payment or benefit provided for in this Agreement or elsewhere will be reduced by any compensation
earned by Executive as the result of employment by another employer.

 

(k)          Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed
to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission
shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

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(l)            280G
Payments. In the event that any payment or benefit received or to be received by the Executive, whether pursuant to the terms
of this Agreement or any other plan, arrangement or agreement (each a “Payment” and all such payments and benefits
being hereinafter referred to as the “Total Payments”) would be subject, in whole or in part, to the excise
tax imposed under Section 4999 of the Code (the “Excise Tax”), then the Total Payments will be reduced,
but only to the extent that Executive would retain a greater amount on an after-tax basis than Executive would retain absent such
reduction, such that the value of the Total Payments that Executive is entitled to receive will be $1 less than the maximum amount
which Executive may receive without becoming subject to the Excise Tax. A nationally recognized accounting or consulting firm engaged
by the Company shall perform the foregoing calculations, and, in connection therewith, shall perform customary parachute mitigation
analysis and calculations. The Company shall bear all expenses with respect to the determinations by such accounting firm required
to be made hereunder. The accounting firm shall provide its calculations to the Company and Executive within fifteen (15) days
after the date on which Executive’s right to a Payment is triggered (if requested at that time by the Company or Executive)
or such other time as requested by the Company or Executive. Any good faith determinations of the accounting or consulting firm
made hereunder shall be final, binding and conclusive upon the Company and Executive. Any reduction in payments and/or benefits
pursuant to this Section 8(m) will occur in the following order: (1) reduction of cash payments; (2) cancellation
of accelerated vesting of equity awards other than stock options; (3) cancellation of accelerated vesting of stock options;
and (4) reduction of other benefits payable to Executive.

 

    14 

     

    

 

IN WITNESS WHEREOF
AND INTENDING TO BE LEGALLY BOUND THEREBY, the parties hereto have executed and delivered this Agreement as of the year and date
first above written.

 

	 	PLAYBOY ENTERPRISES INC.
	 	 
	 	By:	/s/ Ben Kohn
	 	 	Name: Ben Kohn
	 	 	Title: CEO
	 	 
	 	EXECUTIVE
	 	 
	 	/s/ Chris Riley
	 	Chris Riley

 

[Signature Page to Employment Agreement]

 

    15 

     

    

 

Exhibit A

 

Form of General Release of Claims

 

This General Release
of Claims (this “Agreement”) is entered into by and between Playboy Enterprises, Inc., a Delaware corporation
(the “Company”), and Chris Riley (“Executive”) on the below-indicated date.

 

WHEREAS, Executive,
and the Company entered into an Employment Agreement dated as of February 10, 2021 (the “Employment Agreement”),
that provides Executive certain severance and other benefits in the event of certain terminations of Executive’s employment;

 

WHEREAS, Executive’s
employment has so terminated; and

 

WHEREAS, pursuant to
Section 5(b) or 5(c) of the Employment Agreement, a condition precedent to Executive’s entitlement
to certain severance and other benefits thereunder is his agreement to this Agreement.

 

NOW, THEREFORE, in
consideration of the severance and other benefits provided under Section 5(b) or 5(c) of the Employment Agreement,
the sufficiency of which Executive hereby acknowledges, Executive agrees as follows:

 

1.            General
Release of Claims. Executive, for and on behalf of Executive and Executive’s heirs, executors, administrators, successors
and assigns, hereby voluntarily, knowingly and willingly release and forever discharge the Company and all of its past and present
parents, subsidiaries, and affiliates, each of their respective members, officers, directors, stockholders, partners, employees,
agents, representatives and attorneys, and each of their respective subsidiaries, affiliates, estates, predecessors, successors,
and assigns (each, individually, a “Releasee,” collectively referred to as the “Releasees”)
from any and all rights, claims, charges, actions, causes of action, complaints, sums of money, suits, debts, covenants, contracts,
promises, obligations, damages, demands or liabilities of every kind whatsoever, in law or in equity, whether known or unknown,
suspected or unsuspected (collectively, “Claims”) which Executive or Executive’s heirs, executors, administrators,
successors or assigns ever had, now has or may hereafter claim to have by reason of any matter, cause or thing whatsoever: (i) arising
from the beginning of time up to the date Executive executes this Agreement with respect to (A) any such Claims relating in
any way to Executive’s employment relationship with the Company or any other Releasee, and (B) any such Claims arising
under any federal, local or state statute or regulation, including, without limitation, the Age Discrimination in Employment Act
of 1967, as amended by the Older Workers Benefit Protection Act, Title VII of the Civil Rights Act of 1964, the Americans with
Disabilities Act of 1990, the Employee Retirement Income Security Act of 1974, each as amended and including each of their respective
implementing regulations and/or any other federal, state, local or foreign law (statutory, regulatory or otherwise) that may be
legally waived and released; (ii) arising out of or relating to the termination of Executive’s employment; or (iii) arising
under or relating to any policy, agreement, understanding or promise, written or oral, formal or informal, between the Company
or any other Releasee and Executive.

 

    

     

    

 

2.            Exceptions
to General Release of Claims.

 

(a)            Nothing
contained in this Agreement will in any way diminish or impair: (i) any Claims Executive may have that cannot be waived under
applicable law, (ii) Executive’s rights to severance, the Accrued Rights and other vested benefits provided under Section 5
of the Employment Agreement, (iii) any rights Executive may have to indemnification from the Company or coverage under any
director and officer liability insurance policy or (iv) any rights Executive may have in respect of any shares or other vested
equity interests Executive holds in the Company or any of its Affiliates. The Company acknowledges and agrees that this Agreement
does not preclude Executive from filing any charge with the Equal Employment Opportunity Commission, the National Labor Relations
Board, the Securities and Exchange Commission or any other governmental agency or from any way participating in any investigation,
hearing, or proceeding of any government agency. Executive does not need prior authorization from the Company to make any such
reports or disclosures and except as may otherwise be required by applicable law, is not required to notify the Company that Executive
has made such reports or disclosures. This Agreement does not limit Executive’s right to receive an award for information
provided to any governmental agency or entity.

 

(b)            Pursuant
to 18 U.S.C. §1833(b), Executive will not be held criminally or civilly liable under any Federal or State trade secret law
for the disclosure of a trade secret of the Company that (i) is made (A) in confidence to a Federal, State, or local
government official, either directly or indirectly, or to Executive’s attorney, and (B) solely for the purpose of reporting
or investigating a suspected violation of law; or (ii) is made in a complaint or other document that is filed under seal in
a lawsuit or other proceeding. If Executive files a lawsuit for retaliation by the Company for reporting a suspected violation
of law, Executive may disclose the trade secret to his attorney and use the trade secret information in the court proceeding, if
Executive (1) files any document containing the trade secret under seal, and (2) does not disclose the trade secret,
except pursuant to court order. Nothing in this Agreement is intended to conflict with 18 U.S.C. §1833(b) or create liability
for disclosures of trade secrets that are expressly allowed by such section. Further, nothing in any agreement Executive has with
the Company will prohibit or restrict Executive from making any voluntary disclosure of information or documents related to any
violation of law to any governmental agency or legislative body, or any self-regulatory organization, in each case, without advance
notice to the Company.

 

(c)            Executive
acknowledges and agrees that he is aware of California Civil Code Section 1542, which provides as follows:

 

A general release does not extend
to claims which the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing
the release and that, if known by him or her, would have materially affected his or settlement with the debtor or the released
party.

 

With full awareness and understanding of
the above provisions, Executive hereby waives any and all right he may have under Section 1542, as well as under any other
statutes or common law principles of similar effect. Executive intends to, and hereby does, release the Released Parties from claims
which he does not presently know or suspect to exist.

 

    2

     

    

 

3.            Affirmations.
Executive affirms that he has not filed, caused to be filed, or presently is a party to any claim, complaint, or action against
the Company or the other Releasees in any forum or form. Executive furthermore affirms that Executive has no known workplace injuries
or occupational diseases, and has been provided and has not been denied any leave requested under the Family and Medical Leave
Act. Executive disclaims and waives any right of reinstatement with the Company.

 

4.            Restrictive
Covenants. Executive acknowledges and agree that each of the restrictive covenants to which Executive is subject as of the
date hereof (including without limitation, the provisions set forth in Section 6 of the Employment Agreement) will
continue to apply in accordance with their terms for the applicable periods with respect thereto.

 

5.            Governing
Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of California without
giving effect to any choice or conflict of law provision or rule (whether of the State of California or any other jurisdiction).

 

6.            No
Admission of Wrongdoing. The parties agree that neither this Agreement nor the furnishing of the consideration set forth in
the Employment Agreement will be deemed or construed at any time for any purpose as an admission by any party of any liability,
wrongdoing or unlawful conduct of any kind.

 

7.            Consultation
With Attorney; Voluntary Agreement. Executive acknowledges that (a) the Company advised Executive of Executive’s
right to consult with an attorney of Executive’s own choosing prior to executing this Agreement, (b) Executive has carefully
read and fully understands all of the provisions of this Agreement, (c) Executive is entering into this Agreement, including
the releases set forth in Section 1, knowingly, freely and voluntarily in exchange for good and valuable consideration and
(d) Executive would not be entitled to the benefits described in the applicable sections of the Employment Agreement in the
absence of this Agreement.

 

8.            Revocation.
Executive acknowledges that Executive has been given twenty-one (21) calendar days to consider the terms of this Agreement, although
Executive may sign it sooner. Executive agrees that any modifications, material or otherwise, made to this agreement do not restart
or affect in any manner the original twenty-one (21) calendar day consideration period. Executive will have seven calendar days
from the date on which Executive sign this Agreement to revoke Executive’s consent to the terms of this Agreement by providing
notice to the Company in accordance with Section 8(a) of the Employment Agreement. Notice of such revocation must
be received within the seven calendar days referenced above. In the event of such revocation by Executive, this Agreement will
not become effective and Executive will not have any rights under Section 5(b) or 5(c) of the Employment
Agreement. Provided that Executive does not revoke this Agreement within such seven calendar day period, this Agreement will become
effective on the eighth calendar day after the date on which Executive signs this Agreement.

 

[Remainder of page is left blank intentionally]

 

    3

     

    

 

IN WITNESS WHEREOF
AND INTENDING TO BE LEGALLY BOUND THEREBY, the parties hereto have executed and delivered this Agreement as of the date written
below.

 

	 	PLAYBOY ENTERPRISES INC.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	EXECUTIVE
	 	 
	 	 
	 	Chris Riley

 

[Signature Page to Release Agreement]

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