Document:

Exhibit 10.8

 

S CORPORATION TERMINATION AND TAX SHARING AGREEMENT

 

This S Corporation
Termination and Tax Sharing Agreement, dated as of July 27, 2020 (the “Agreement”), is made by and
between Vertex, Inc., a Delaware corporation (the “Company”), and the trusts and individuals identified
on the signature page hereto (each a “Shareholder” and collectively the “Shareholders”).

 

RECITALS:

 

A.           The
Company has elected to be an S corporation (the “S Election”) under Section 1362 of the Internal
Revenue Code of 1986, as amended (the “Code”).

 

B.            The
Company intends to conduct an initial public offering registered under the Securities Act of 1933, as amended (the “Public
Offering”).

 

C.           On
the Termination Date (as defined in Section 2.01) the Company’s status as an S corporation will terminate.

 

D.           The
Shareholders are currently the only shareholders of the Company and will continue to be so until immediately before the consummation
of the Public Offering.

 

E.            In
connection with the Public Offering, and in order to induce the investment by the public in the Company, the Company and the Shareholders
desire to provide for the termination of the Company’s status as an S Corporation and a tax allocation and indemnification
agreement in connection with the tax periods prior to and following the Termination Date, as well as the other agreements set forth
herein.

 

AGREEMENT:

 

NOW, THEREFORE, for
mutual consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Shareholders do hereby
covenant and agree as follows:

 

ARTICLE 1

DEFINITIONS

 

“AAA” shall mean
 “accumulated adjustments account” as set forth in Section 1368(e)(1) of the Code.

 

“Assumed
Tax Rate” shall mean, with respect to any tax period, the maximum combined federal income tax rate and applicable
state blended income tax rates (as determined in accordance with the Company’s past practices) for taxpayers who are married
and filing jointly, applicable for such period, taking into account the deductibility of state income tax for federal income tax
purposes.

 

“C Short
Year” shall have the meaning set forth in Section 1362(e)(1)(B) of the Code.

 

     

     

    

 

“Code”
shall have the meaning set forth in Recital A.

 

“Post-Termination
Distribution” shall mean a cash distribution during the Post-Termination Transition Period as set forth in Section 1371(e) of
the Code to the extent it does not exceed the AAA.

 

“Post-Termination
Transition Period” shall have the meaning set forth in Section 1377(b)(1) of the Code and shall begin on
the day after the last day of the Company’s S Short Year.

 

“Public
Offering” shall have the meaning set forth in Recital B.

 

“S Corporation”
shall have the meaning set forth in Section 1361 of the Code.

 

“S Corporation
Taxable Income” shall mean, for periods beginning on or after the date the Company became an S Corporation and ending
with the close of the last day of the Company’s S Short Year, the sum of (i) the Company’s items of separately
stated income and gain (within the meaning of Section 1366(a)(1)(A) of the Code) reduced, to the extent applicable, by
the Company’s separately stated items of deduction and loss (within the meaning of Section 1366(a)(1)(A) of the
Code) and (ii) the Company’s non-separately computed net income (within the meaning of Section 1366(a)(l)(B) of
the Code).

 

“S Corporation
Tax Year” shall mean any taxable period during which the Company had an S Election in effect, including the S Short
Year.

 

“S Election”
shall have the meaning set forth in Recital A.

 

“S Short
Year” shall have the meaning set forth in Section 1362(e)(1)(A) of the Code.

 

“S Termination
Year” shall have the meaning set forth in Section 1362(e)(4) of the Code.

 

“Tax Proceeding”
shall have the meaning set forth in Section 2.02.

 

“Termination
Date” shall have the meaning set forth in Section 2.01.

 

“Treasury
Regulations” shall mean the regulations promulgated by the United States Treasury Department under the Code.

 

     

     

    

 

ARTICLE 2

S CORPORATION TERMINATION AND TAX SHARING

 

2.01 Termination
of S Election. Pursuant to Section 1362(d) of the Code, the Company’s status as an S Corporation shall
terminate on the earlier of (i) the effective date of the Company’s revocation of the S Election as agreed by the
Shareholders holding more than one-half of the shares of the Company stock and set forth on the statement filed in accordance
with and in the manner provided by Treasury Regulations Section 1.1362-6(a)(3) or (ii) the day on which the
Company issues shares of the Company’s common stock in the Public Offering to one or more shareholders which causes the
Company to no longer qualify as an S Corporation (the “Termination Date”).

 

2.02 Payments Related
to Future Adjustments. In the event that any final determination of an adjustment (by reason of an amended return, claim for
refund, audit, judicial decision or otherwise, which determination occurs after the Termination Date (each, a “Tax
Proceeding”)) results in an increase in S Corporation Taxable Income, the Company shall distribute to each Shareholder
within 30 days of such final determination, cash in an amount equal to (i) the product of (A) the amount of increase
in taxable income to such Shareholder resulting from the adjustment and (B) the Assumed Tax Rate plus (ii) any interest
and penalties imposed thereon.

 

2.03 Liability for
Taxes Incurred During the S Short Year and for Tax Periods Ending Prior to the Termination Date. Each Shareholder severally,
and not jointly, covenants and agrees that: (i) such Shareholder has duly included (to the best of such Shareholder’s
knowledge), or will duly include, in such Shareholder’s federal, state and local income tax returns, such Shareholder’s
respective allocable shares of all items of income, gain, loss, deduction, or credit attributable to the S Short Year of the Company,
(ii) its federal, state and local income tax returns shall, to the extent required by applicable law, include such Shareholder’s
allocable share of S Corporation Taxable Income of the Company from all sources through and including the close of business on
the last day of the S Short Year of the Company, and (iii) such Shareholder shall, to the extent required by applicable law,
pay any and all taxes such Shareholder is required to pay, as a result of being a shareholder of the Company, for all taxable periods
(or that portion of any period) during which the Company was an S Corporation.

 

2.04 Shareholder
Indemnification for Tax Liabilities. The Shareholders severally (according to the relative percentage of the outstanding shares
of the Company’s common stock owned by each Shareholder on the last day of any applicable period to which a liability described
below relates) and not jointly, each hereby agree to indemnify and hold the Company harmless from, against and in respect of any
unpaid income tax liabilities of the Company (including interest and penalties imposed thereon) (i) which are attributable
to the Company’s S Corporation Taxable Income for the S Short Year or (ii) which are incurred by the Company as a result
of a final determination of an adjustment (by reason of a Tax Proceeding) to the taxable income of the Shareholders for any period,
including the S Short Year or thereafter, and which (in the case of this clause (ii)) are attributable to a decrease for any period
in the Shareholders’ taxable income and a corresponding increase for any period in the taxable income of the Company.

 

2.05 Company Indemnification
for Tax Liabilities. The Company hereby indemnifies and agrees to hold the Shareholders harmless from, against and in respect
of income tax liabilities (including interest and penalties imposed thereon), if any, incurred by the Shareholders as a result
of a final determination of an adjustment (by reason of a Tax Proceeding) to the taxable income of the Company for any period ending
after the Termination Date (including, without limitation, the C Short Year) which results in an increase for any period in the
taxable income of the Shareholders. The Company shall distribute to each Shareholder cash in an amount equal to (i) the product
of (A) the amount of such increase in the taxable income of such Shareholder resulting from such final determination and (B) the
Assumed Tax Rate, plus (ii) any interest and penalties imposed thereon.

 

     

     

    

 

2.06 Payments.
The Shareholders or the Company, as the case may be, shall make any payment required under Sections 2.04 or 2.05
within 30 days after receipt of notice from the other party that a final determination of an adjustment (by reason of a Tax Proceeding)
has occurred and a payment is due by such party to the appropriate taxing authority.

 

2.07 Termination
Payments to Shareholders. Immediately prior to the Termination Date, the Company shall distribute to the Shareholders their
pro rata share (the ownership of the shares of the Company’s common stock owned by each Shareholder) of an amount equal to
the estimated federal and state tax liabilities of the Shareholders attributable to the operations of the Company during the S
Short Year, and in respect of which no prior tax distribution shall have been made (the “Estimated Distribution”).
No later than June 30, 2021, the Company shall make any necessary adjustments to finalize the Company’s taxable income
for the S Short Year allocable to the Shareholders, and (x) if the amount of the Estimated Distribution to the Shareholders
is less than the adjusted income tax liability of the Shareholders taking into account such finalized taxable income of the Company
for the S Short Year, each Shareholder’s state income tax liabilities attributable to the operations of the Company for the
S Short Year, and the Assumed Tax Rate (the “Final Distribution”), then the Company shall, within 30
days thereafter, distribute to the Shareholders their pro rata share of an amount equal to the excess of the Final Distribution
over the Estimated Distribution; and (y) if the amount of the Final Distribution is less than the Estimated Distribution,
then each Shareholder shall, within 30 days thereafter, deliver to the Company such Shareholder’s pro rata share of an amount
equal to the excess of the Estimated Distribution over the Final Distribution. Promptly upon request, each Shareholder shall provide
the Company with information related to such Shareholder reasonably necessary to allow the Company to determine the Final Distribution.

 

ARTICLE 3

ALLOCATION OF INCOME

 

3.01 Short Taxable
Years. The parties acknowledge that the taxable year in which the Company’s status as an S Corporation is terminated
pursuant to Section 2.01 will be an S Termination Year with respect to the Company. Pursuant to Section 1362(e)(1) of
the Code, the S Termination Year of the Company shall be divided into two short taxable years: an “S Short Year” and
a “C Short Year.” The S Short Year shall be that portion of the Company’s S Termination Year ending on the day
immediately preceding the Termination Date. Pursuant to Section 1362(e)(1)(B) of the Code, that portion of the S Termination
Year beginning on the Termination Date and ending on the last day of the taxable year shall be the C Short Year of the Company.

 

     

     

    

 

3.02 Closing
of the Books. The Company and each Shareholder agree that for income tax purposes (including for purposes of determining
the Company’s S Corporation Taxable Income for its S Short Year), the Company shall allocate its items of income, gain,
loss, deduction and credit for its calendar year between the S Short Year and the C Short Year in accordance with normal tax
accounting rules (the “closing of the books” method). The Company shall timely make the election under
Section 1362(e)(3) of the Code. Each Shareholder and the Company agree to provide such information and
documentation (including any statement or consent required under Treasury Regulations Section 1.1362-6(b)) necessary to
permit the Company to make such election validly.

 

ARTICLE 4

TAX MATTERS

 

4.01. Refunds.
If the Company receives a refund of any income tax (including penalties and interest) for any period prior to the Termination Date,
or as to which it has previously been indemnified by any Shareholder pursuant to this Agreement, the Company shall pay an amount
equal to such refund, within 30 days after receipt thereof, to such Shareholder in accordance with such Shareholder’s proportionate
ownership of the shares of the Company’s common stock on the last day of any applicable period to which the refund relates.
If a Shareholder receives a refund of any income tax (including penalties and interest) as to which such Shareholder has previously
been indemnified by the Company pursuant to this Agreement, such Shareholder shall, within 30 days after receipt thereon, remit
an amount equal to such refund to the Company.

 

4.02. Notice and
Tax Proceedings.

 

		(a)	Each of the Company and the Shareholders agree that upon receipt of written notice of any Tax Proceeding
or related matters that may affect the income tax liability of a party under this Agreement, such person shall use reasonable efforts
to promptly (and in any event, not later than 10 days after receipt of such notice) notify each other party hereto.

 

		(b)	The Company will have the option to represent itself in any Tax Proceeding involving the Company
at its own expense and using advisors of the Company’s choice. Each Shareholder shall have the right, but not the obligation,
to participate in such Tax Proceeding at such Shareholder’s own expense.

 

		(c)	The Company and the Shareholders shall reasonably cooperate with each other in any applicable Tax
Proceeding, including executing all instruments reasonably required to effectuate the provisions of this Section 4.02.
The parties shall make available to each other, as reasonably requested, and to any taxing authority as required by applicable
law, all information, records or documents relating to the liability for taxes covered by this Agreement and will preserve any
such information, records or documents until the expiration of the applicable statute of limitations (taking into account extensions
thereof). The party requesting such information shall reimburse the other party for all reasonable out-of-pocket expenses incurred
in providing such requested information.

 

     

     

    

 

		(d)	Notwithstanding anything to the contrary herein, no party shall take any action in any Tax Proceeding
without the prior written consent of each affected party, which consent shall not be unreasonably withheld, conditioned or delayed.

 

		(e)	Breach by a Shareholder of any of the provisions of this Section 4.02 will terminate
the Company’s obligation to make payments to such Shareholder under Article 2  to the extent any such breach materially
prejudices the result of any Tax Proceeding.

 

4.03. Inconsistent
Reporting. If a Shareholder hereafter reports an item on such Shareholder’s income tax return in a manner materially
inconsistent with the tax treatment reflected in the Schedule K-1 or other tax information provided to the Shareholders by the
Company for a taxable period during which the Company’s S Election was in effect, the Shareholder shall notify the Company
of such treatment before filing the Shareholder’s income tax return. If such Shareholder fails to notify the Company of such
inconsistent reporting, such Shareholder shall be liable to the Company for any losses, costs or expenses (including reasonable
attorneys’ fees) arising from such inconsistent reporting, including an audit.

 

ARTICLE 5

MISCELLANEOUS

 

5.01 Post-Termination
Distributions. To the extent practicable and to the extent consistent with applicable law, payments or other distributions
made to the Shareholders pursuant to Article 2 will be treated as Post-Termination Distributions for U.S. federal income
tax purposes and any correspondingly applicable state and/or local tax purposes.

 

5.02 Other Distributions.
To the extent that the Company’s tax return preparers determine that such payments or distributions cannot be properly treated
as Post-Termination Distributions, then the amount of any distribution made to the Shareholders pursuant to Article 2
shall be increased by the amount of the Shareholders’ additional tax liability, if any, resulting from such payments or distributions,
as reasonably determined by the Company’s tax return preparers, assuming that the Shareholders pay tax at the Assumed Tax
Rate.

 

5.03 Confidentiality.
Each of the parties agrees that any information furnished pursuant to this Agreement is confidential and, except as and to the
extent required by law, or otherwise during the course of an audit or contest or other administrative or legal proceeding, shall
not be disclosed to any person or entity.

 

5.04 Successors
and Access to Information. This Agreement shall be binding upon and inure to the benefit of any successor, heirs or personal
representatives to any of the parties, by merger, acquisition of assets or stock in the Company or otherwise, to the same extent
as if the successor, heir or personal representative had been an original party to this Agreement or the applicable Shareholder
for the taxable period in question, and in such event, all references herein to a party shall refer instead to the successor, heir
or personal representative of such party; provided, however, that for purposes of calculating the tax liability to which
any payments under this Agreement would relate, an original Shareholder’s tax liability shall be taken into account, but
any payments in connection therewith shall be made to the successor, heir or personal representative of such original Shareholder.

 

     

     

    

 

5.05 Governing Law.
This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware excluding (to the greatest
extent permissible by law) any rule of law that would cause the application of the laws of any jurisdiction other than the
State of Delaware.

 

5.06 Headings.
The headings in this Agreement are for convenience only and shall not be deemed for any purpose to constitute a part or to affect
the interpretation of this Agreement.

 

5.07 Counterparts.
This Agreement may be executed simultaneously in two or more counterparts, each of which will be deemed an original, and it shall
not be necessary in making proof of this Agreement to produce or account for more than one counterpart.

 

5.08 Electronic
Transmission. Any facsimile or electronically transmitted copies hereof or signature hereon shall, for all purposes, be deemed
originals.

 

5.09 Notices.
Any notice or communication required or permitted to be given under this Agreement shall be in writing (including telecopy communication)
and mailed, telecopied or delivered to the parties at the addresses specified in the Company’s books and records relating
to ownership of Company stock or at such other address as one party may specify by notice to the other party. All such notices
and communications shall be effective when received. Any payment required to be made under this Agreement shall be mailed or delivered
to the parties at the addresses specified in the Company’s books and records relating to ownership of Company stock or at
such other address or account as one party may specify by notice to the other party.

 

5.10 Severability.
If any provision of this Agreement is held to be unenforceable for any reason, it shall be adjusted rather than voided, if possible,
in order to achieve the intent of the parties to the maximum extent practicable. In any event, all other provisions of this Agreement
shall be deemed valid, binding, and enforceable to their full extent.

 

5.12 Successor Provisions.
Any reference herein to any provisions of the Code or Treasury Regulations shall be deemed to include any amendments or successor
provisions thereto as appropriate.

 

5.13 Integration;
Amendments. Except as explicitly stated herein, this Agreement embodies the entire understanding between the parties relating
to its subject matter and supersedes and terminates all prior agreements and understandings among the parties with respect to such
matters. No promises, covenants or representations of any kind, other than those expressly stated herein, have been made to induce
any party to enter into this Agreement. This Agreement shall not be modified or terminated except by a writing duly signed by each
of the parties hereto, and no waiver of any provisions of this Agreement shall be effective unless in a writing duly signed by
the party sought to be bound.

 

5.14 Waiver of Jury
Trial. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY WITH RESPECT TO ANY DISPUTE ARISING OUT OF THIS AGREEMENT. EACH PARTY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 5.14.

 

[Signature Page Follows]

 

     

     

    

 

 

	 	VERTEX, INC.
	 	 
	 	By: 	/s/
    David DeStefano
	 	Name:  	David DeStefano
	 	Title: 	President, Chief Executive Officer and Chairperson
	 	 
	 	/s/
    Jeffrey R. Westphal
	 	Jeffrey
    R. Westphal
	 	 
	 	/s/
    Stefanie W. Thompson
	 	Stefanie
    W. Thompson
	 	 
	 	/s/
    Amanda W. Radcliffe
	 	Amanda
    W. Radcliffe
	 	 
	 	/s/
    Conrad J.J. Radcliffe
	 	Conrad
    J. J. Radcliffe
	 	 
	 	/s/
    Christopher J. Thompson
	 	Christopher
    J. Thompson
	 	 
	 	/s/
    Benjamin Schmerin
	 	Benjamin
    Schmerin
	 	 
	 	/s/
    John M. Ferraioli
	 	John
    M. Ferraioli
	 	 
	 	/s/
    John G. Hurley
	 	John
    G. Hurley

 

     

     

    

 

	 	ITEM SECOND IRREVOCABLE
    TRUST FBO KAILEY RADCLIFFE u/a of AMANDA W RADCLIFFE dated 10/05/2001
	 	 
	 	By:	/s/
    Conrad J.J. Radcliffe
	 	Name:	 Conrad J. J. Radcliffe
	 	Title: 	Trustee
	 	 
	 	By: 	/s/ Kailey
    A. Radcliffe
	 	Name:  	Kailey A. Radcliffe
	 	Title: 	Trustee
	 	 
	 	ITEM SECOND IRREVOCABLE
    TRUST FBO ANTOINETTE R. RADCLIFFE u/a of AMANDA W RADCLIFFE dated 10/05/2001
	 	 
	 	By: 	/s/ Conrad
    J.J. Radcliffe
	 	Name:	 Conrad J. J. Radcliffe
	 	Title: 	Trustee
	 	 
	 	By: 	/s/ Antoinette
    R. Radcliffe
	 	Name: 	Antoinette R. Radcliffe
	 	Title: 	Trustee
	 	 
	 	THIRD PARTY FUNDED SPECIAL
    NEEDS TRUST FOR CALLUM W. RADCLIFFE u/a of AMANDA W RADCLIFFE dated May 15, 2015
	 	 
	 	By:	/s/ Conrad
    J. J. Racliffe
	 	Name: 	Conrad J. J. Radcliffe
	 	Title: 	Trustee

 

     

     

    

 

	 	ITEM SECOND IRR. TRUST
    FBO ANNE MARIE WESTPHAL u/a of JEFFREY R. WESTPHAL dated October 5, 2001
	 	 
	 	By: 	/s/
    Anne Marie Westphal
	 	Name:  	Anne Marie Westphal
	 	Title: 	Trustee
	 	 
	 	By:	/s/ Joshua
    R. Levine
	 	Name: 	Joshua R. Levine
	 	Title: 	Trustee
	 	 
	 	By: 	/s/ Steve
    Treat
	 	Name: 	Steve Treat
	 	Title: 	Trustee
	 	 
	 	ITEM SECOND IRR. TRUST
    FBO KYLE R. WESTPHAL u/a of JEFFREY R. WESTPHAL dated October 5, 2001
	 	 
	 	By: 	/s/ Kyle
    R. Westphal
	 	Name: 	Kyle R. Westphal
	 	Title: 	Trustee
	 	 
	 	By:	/s/ Joshua
    R. Levine
	 	Name: 	Joshua R. Levine
	 	Title:	 Trustee
	 	 
	 	By: 	/s/ Steve
    Treat
	 	Name: 	Steve Treat
	 	Title: 	Trustee

 

     

     

    

 

	 	ITEM SECOND IRR. TRUST
    FBO JACOB J. WESTPHAL u/a of JEFFREY R. WESTPHAL dated October 5, 2001
	 	 
	 	By:	/s/
    Jacob J. Westphal
	 	Name: 	 Jacob J. Westphal
	 	Title:	 Trustee
	 	 
	 	By: 	/s/ Joshua
    R. Levine
	 	Name:	 Joshua R. Levine
	 	Title: 	Trustee
	 	 
	 	By: 	/s/ Steve
    Treat
	 	Name: 	Steve Treat
	 	Title: 	Trustee
	 	 
	 	ITEM SECOND IRR. TRUST
    FBO MELANIE H. LUCAS u/a of STEFANIE W. LUCAS dated October 5, 2001
	 	 
	 	By:	/s/ Melanie
    H. Lucas
	 	Name:	 Melanie H. Lucas
	 	Title:	 Trustee
	 	 
	 	ITEM SECOND IRR. TRUST
    FBO SAMANTHA W. LUCAS u/a of STEFANIE W. LUCAS dated October 5, 2001
	 	 
	 	By: 	/s/ Samantha
    W. Lucas
	 	Name: 	Samantha W. Lucas
	 	Title: 	Trustee
	 	 
	 	ITEM SECOND IRR. TRUST
    FBO MACKENZIE S. LUCAS u/a of STEFANIE W. LUCAS dated October 5, 2001
	 	 
	 	By: 	/s/ Mackenzie
    S. Lucas
	 	Name: 	Mackenzie S. Lucas
	 	Title: 	Trustee

 

     

     

    

 

 

	 	ITEM SECOND IRR. TRUST
    FBO ANDREA P. LUCAS u/a of STEFANIE W. LUCAS dated October 5, 2001
	 	 
	 	By:	/s/
    Andrea Schmerin
	 	Name: 	Andrea P. Schmerin (f/k/a Andrea
    P. Lucas)
	 	Title:	Trustee
	 	 
	 	The 2009 Jeffrey R. Westphal
    Generation Skipping Trust
	 	 
	 	By:	/s/ Jeffrey
    R. Westphal
	 	Name:	Jeffrey R. Westphal
	 	Title:	Trustee
	 	 
	 	The 2009 Stefanie Lucas
    Generation Skipping Trust
	 	 
	 	By:	/s/ Stefanie
    W. Thompson
	 	Name:	Stefanie W. Thompson (f/k/a
    Stefanie W. Lucas)
	 	Title:	Trustee
	 	 
	 	The 2009 Amanda W. Radcliffe
    Generation Skipping Trust
	 	 
	 	By:	/s/ Amanda
    W. Radcliffe
	 	Name:	Amanda W. Radcliffe
	 	Title:	Trustee

 

     

     

    

 

	 	The Irrevocable Deed of
    Trust of Antoinette M. Westphal, dated March 31, 1987, Stefanie W. Thompson and Sterling Trustees LLC, Trustees
	 	 
	 	By:	/s/
    Stefanie W. Thompson
	 	Name: 	Stefanie W. Thompson
	 	Title:	Trustee

 

		By:	Sterling
    Trustees LLC
	 	Title: 	Trustee

 

	 	By:	/s/
    Anthony Joffe
	 	Name: 	Anthony Joffe
	 	Title:	President

 

	 	Irrevocable Trust of Rainer
    J. Westphal, Settlor, dated July 19, 2007 – Separate Trust for Benefit of Stefanie W. Lucas
	 	 
	 	By:	/s/
    Stefanie W. Thompson
	 	Name: 	Stefanie W. Thompson (f/k/a
    Stefanie W. Lucas)
	 	Title:	Trustee
	 	 
	 	Irrevocable Trust of Rainer
    J. Westphal, Settlor, dated July 19, 2007 – Separate Trust for Benefit of Amanda W. Radcliffe
	 	 
	 	By:	/s/ Amanda
    W. Radcliffe
	 	Name:	Amanda W. Radcliffe
	 	Title:	Trustee
	 	 
	 	Irrevocable Trust of Rainer
    J. Westphal, Settlor, dated July 19, 2007 – Separate Trust for Benefit of Jeffrey Westphal
	 	 
	 	By:	/s/ Jeffrey
    R. Westphal
	 	Name:	Jeffrey R. Westphal
	 	Title:	Trustee

 

     

     

    

 

	 	2020 IRREVOCABLE TRUST
    FOR BENEFIT OF CONSTANCE A. THOMPSON
	 	 
	 	By:	/s/
    Constance A. Thompson
	 	Name: 	Constance A. Thompson
	 	Title:	Trustee
	 	 
	 	By:	/s/ Christopher
    J. Thompson
	 	Name:	Christopher J. Thompson
	 	Title:	Trustee
	 	 
	 	2020 IRREVOCABLE TRUST
    FOR BENEFIT OF NICHOLAS A. SHUHAN
	 	 
	 	By:	/s/ Nicholas
    A. Shuhan
	 	Name:	Nicholas A. Shuhan
	 	Title:	Trustee
	 	 
	 	By:	/s/ Joshua
    R. Levine
	 	Name:	Joshua R. Levine
	 	Title:	Trustee
	 	 
	 	By:	/s/ Stephen
    R. Treat
	 	Name:	Stephen R. Treat
	 	Title:	TrusteeEX-10.1

 Exhibit 10.1 

SEVENTH AMENDMENT TO 

EMPLOYMENT AGREEMENT 

This SEVENTH AMENDMENT TO EMPLOYMENT AGREEMENT (“Amendment”) is entered into as of this 9th day of
September, 2020, by and between CATALYST PHARMACEUTICALS, INC., a Delaware corporation (“Company”) and PATRICK J. MCENANY (“Employee”). 

Preliminary Statements 
  

	 	A.	 The parties have previously entered into that certain Employment Agreement, dated as of November 8,
2006 (the “Original Agreement”), as previously amended by that certain First Amendment to Employment Agreement, dated as of December 19, 2008 (the “First Amendment”), that certain Second Amendment to Employment
Agreement, dated as of November 8, 2009 (the “Second Amendment”), that certain Third Amendment to Employment Agreement, dated as of September 14, 2011 (the “Third Amendment”), that certain Fourth Amendment
to Employment Agreement, dated as of August 28, 2013 (the “Fourth Amendment”), that certain Fifth Amendment to Employment Agreement, dated as of June 23, 2016 (the “Fifth Amendment”), and that certain
Sixth Amendment to Employment Agreement, dated as of May 25, 2018 (the “Sixth Amendment”, and together with the Original Agreement, the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, and the
Fifth Amendment, the “Employment Agreement”). Unless otherwise defined, capitalized terms used herein shall have the meanings given to them in the Employment Agreement. 

 

	 	B.	 The parties wish to further amend the Employment Agreement to reflect the terms set forth below.

 Agreement 

NOW, THEREFORE, in consideration of the premises, the mutual covenants set forth herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
  

	 	1.	 Extension of Agreement. The outside date of the Term of the Employment Agreement is extended for a
two year period from the “fourteenth anniversary of the Effective Date” (November 8, 2020) until the “sixteenth anniversary of the Effective Date” (November 8, 2022). All references in the Employment Agreement to the “third
anniversary of the Effective Date”, the “fifth anniversary of the Effective Date”, the “seventh anniversary of the Effective Date”, the “tenth anniversary of the Effective Date”, the “twelfth anniversary of
the Effective Date,” or the “fourteenth anniversary of the effective date” shall be deemed by this Amendment to now refer to the “sixteenth anniversary of the Effective Date.” 

  
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	 	2.	 Additional Terms. The Employment Agreement is hereby amended to add the following sentence as an
additional sentence at the end of Section 7.5.2 of the Employment Agreement: 

 Further, upon a
Change in Control, (i) all outstanding stock options and other equity awards held by Employee that have not yet vested on time-based vesting provisions contained in such awards under which Employee would have vested over time had the Change in
Control not occurred, shall immediately vest, and (ii) all outstanding stock options and other equity awards held by Employee that have performance-based vesting provisions (such as achievement of a certain stock price) shall automatically vest
as of the date of the Change in Control, whether or not the performance-based vesting condition has been satisfied as of such date. 
  

	 	3.	 Employment Agreement Remains in Effect. Except as otherwise specifically amended herein, the terms
and provisions of the Employment Agreement remain in full force and effect. 

  

	 	4.	 Counterparts. This Amendment may be executed in counterparts. 

IN WITNESS WHEREOF, the parties have executed this Amendment, effective as of the date set forth above.

  

			
	CATALYST PHARMACEUTICALS, INC.
		
	 By:
	 	 /s/ Alicia Grande

		 	 Alicia Grande

		 	 Vice President, Treasurer and CFO

	
	EMPLOYEE:
	
	 /s/ Patrick J. McEnany

	 Patrick J. McEnany

  
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