Document:

Exhibit
10.1

 

EMPLOYMENT
agreement

 

This
Employment Agreement (this “Agreement”) is made and entered into by and between HOF Village Newco, LLC (“HOF Newco”)
and Hall of Fame Resort & Entertainment Company (“Hall of Fame Resort”) (Hall of Fame Resort, together with HOF Newco,
the “Company”), on the one hand, and Benjamin J. Lee (the “Employee”), on the other hand, and shall be effective
on the Effective Date (defined below).

 

RECITALS

 

A.       The
Company desires to employ the Employee on and after the Effective Date, and the Employee desires to be employed by the Company on and
after the Effective Date, all on the terms and subject to the conditions set forth herein.

 

B.       The
Employee is willing to enter into this Agreement in consideration of the terms, conditions, and benefits that the Employee will receive
under the terms hereof, and the Company is willing to enter into this Agreement in consideration of the promises and covenants by Employee
contained herein.

 

AGREEMENT

 

In
consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the parties agree as follows:

 

1.       ROLE
OF EMPLOYEE.

 

1.1.       Duties
and Status. HOF Newco and Hall of Fame Resort hereby engage the Employee as Chief Financial Officer for the Employment Period,
as defined in Section 3.1 hereof, and the Employee accepts such employment, on the terms and subject to the conditions set forth in this
Agreement. The Employee shall faithfully exercise in good faith such authority and perform such duties on behalf of the Company that
are typically associated with such position and all other duties that may be assigned to the Employee by the Company’s Chief Executive
Officer (“CEO”) from time to time.

 

1.2.       Time
and Effort. During the Employment Period, the Employee shall devote the Employee’s entire working time, energy, and efforts
to the performance of the Employee’s duties hereunder in a manner that will faithfully and diligently further the business and
interests of the Company. Notwithstanding the foregoing, this Section 1.2 shall not be interpreted to prohibit the Employee from making
personal investments of time that do not require more than a de minimis time commitment, performing pro bono, charitable or civic
acts or services or serving on the board of a non-profit organization, or conducting private business affairs if those activities do
not materially interfere with the services required under this Agreement or violate the provisions of Section 4.

 

1.3.       Principal
Place of Employment. The Employee’s principal work location shall be in Canton, Ohio. The Parties agree that there will
be a transition period of fifteen (15) months from the Effective Date, during which time Employee will be permitted to work on a hybrid
in-office and remote schedule (the “Transition Period”). During this Transition Period, Employee shall work in the office
in Canton no less than three (3) days a week or such greater number of days as determined by the CEO to ensure the satisfactory performance
of the Employee’s duties under this Agreement. Thereafter, Employee shall work in Canton on a full-time basis, subject to any further
extension of the Transition Period as mutually agreed in writing by the Parties.

 

     

    

    

 

2.       COMPENSATION
AND BENEFITS.

 

2.1.       Annual
Base Salary. For all of the services rendered by the Employee to the Company during the Employment Period, the Company shall
pay the Employee an annual base salary (“Annual Base Salary”) equal to $350,000.00. The Annual Base Salary shall be payable
in accordance with the practice of the Company in effect from time to time for the payment of salaries to employees of the Company and
shall be subject to applicable withholdings and deductions. The Company will periodically review the Employee’s Annual Base Salary
and implement an increase (but no decrease), if any, as the Company shall determine in its sole discretion is reasonable and appropriate.

 

2.2.       Annual
Bonus. For each calendar year during the Employment Period, Employee shall be eligible to receive an annual bonus (the “Annual
Bonus”). The target for the Annual Bonus opportunity shall be 40% of the Employee’s Annual Base Salary for each such calendar
year and be based on the Company’s achievement of commercially-reasonable Key Performance Indicators (“KPI’s”)
determined by the Company in writing. The Annual Bonus for calendar year 2022 shall be pro-rated. The Annual Bonus shall be paid in cash,
an equity award under the Company’s long-term incentive plan, or a combination thereof, determined in the sole discretion of the
Company. The Annual Bonus, whether payable and cash and/or equity, may be subject to a vesting schedule and other terms and conditions,
including a payment schedule, as determined by the Company in its sole discretion. In order to have earned the Annual Bonus for a particular
calendar year, the Employee must remain employed in a full time capacity through the end of that calendar year and must not (a) have
been, as of the date of payment or settlement, terminated by the Company for Cause (as defined below) or (b) as of the date of payment
or settlement, have ended Employee’s employment with the Company without Good Reason (as defined below), to be entitled to receive
an Annual Bonus.

 

2.3.       Restricted
Stock Award. Subject to the approval of the Board of Directors (the “Board”) of Hall of Fame Resort, the Employee
shall be granted an award of restricted stock units (a “Restricted Stock Unit Award”) that entitles the Employee to receive
one share of Hall of Fame Resort & Entertainment Company (“Hall of Fame Resort”) common stock for each restricted stock
unit that vests in accordance with this Section 2.3 (such grant, a “Restricted Stock Unit Award”).

 

(a)       In
connection with Hall of Fame Resort filing a Form S-8 with the United States Securities and Exchange Commission, and subject to the approval
of the Board, the Employee shall receive a Restricted Stock Unit Award for a number of shares of common stock of the Company equal to
$600,000 divided by the average closing price of Hall of Fame Resort’s common stock for the five trading days preceding, but not
including, the Effective Date.

 

(b)       The
Restricted Stock Unit Award shall be evidenced by an award agreement between Hall of Fame Resort and the Employee.  The award agreement
shall provide that the Employee’s rights in the Restricted Stock Unit Award shall vest and be transferable in 3 equal or nearly
equal installments on (1) the first Anniversary of the Effective Date, (2) the second anniversary of the Effective Date, and (3) the
third anniversary of the Effective Date, if the Employee remains in the continuous employ or service of the Company or an affiliate of
the Company on a full time basis from the Effective Date until the applicable vesting date.  The award agreement shall provide that
any Restricted Stock Units that have not vested on or before the date the Employee ceases to be a full time employee of the Company or
an affiliate shall be forfeited on the date that such employment or services ends for any reason. 

 

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2.4.       Benefits.
The Employee shall be entitled to participate in such benefit plans including, without limitation, any and all retirement, disability,
group life, sickness, accident, vision, dental, and health insurance programs, as the Company may provide from time to time to its employees
generally. The Employee shall be allowed to enroll in the health insurance benefits provided by the Company on the first day of Employee’s
employment with the Company.

 

2.5.       Vacation.
The Employee shall be entitled to 15 days of paid vacation per year during the first and second year of the Employment Period and 25
days of paid vacation per year during the third year of the Employment Period and any year thereafter during the Employment Period. Unused
vacation days for a particular year shall roll over to, and be available for Employee’s use during, the first twelve weeks of the
following year, and any such carry-over vacation days not used by the Employee during the first twelve weeks of the following year shall
be paid out as compensation to the Employee on the first regularly-scheduled payroll date following the end of the twelve-week period.

 

2.6.       Expenses.
Subject to, and in accordance with, such policies as may, from time to time, be established by the Company, the Company shall pay or
reimburse the Employee for all reasonable expenses actually incurred or paid by the Employee in the furtherance of or in connection with
the performance of the Employee’s duties under this Agreement, upon presentation of expense statements or vouchers or such other
supporting information as the Company may reasonably require.

 

2.7.       Travel
and Relocation. In addition to the above, the Company shall pay or reimburse the Employee for all reasonable expenses up to $10,000
actually incurred or paid by the Employee in connection with travel to and from Canton, Ohio during the Transition Period and/or relocation
to Canton, Ohio, upon presentation of expense statements or vouchers or such other supporting information as the Company may reasonably
require. In the event that you voluntarily resign employment within 12 months of the commencement of the Employment Period (as defined
herein), you agree to repay the Company the full amount of all such funds actually received by you pursuant to this Section 2.7 within
30 days of your last date of employment.

 

3.       TERM
AND TERMINATION.

 

3.1.       Employment
Period. Subject to Section 3.2 hereof, the Employee’s employment under this Agreement (the “Employment Period”)
shall commence on March 15, 2022, or such other date as mutually agreed in writing by the parties, provided such date shall be no later
than March 31, 2022, (the “Effective Date”) and shall terminate on the earlier of: (a) the third anniversary of the
Effective Date (such period, the “Initial Term”); provided, however, that on the third anniversary of the Effective
Date and each subsequent anniversary thereafter, the term shall automatically renew for successive 12-month periods unless either party
provides written notice of non-renewal to the other party at least 90 days in advance of the expiration of the Initial Term or the then-current
12-month period (the Initial Term, as may be automatically extended as provided herein, the “Term”); or (b) termination of
this Agreement and the Employee’s employment pursuant to Section 3.2 hereof.

 

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3.2.       Termination
of Employment. Each party shall have the right to terminate the Employee’s employment hereunder before the Term expires
as permitted by this Section 3.2.

 

(a)       By
the Company.

 

(i)       For
Cause. The Company shall have the right to terminate this Agreement and the Employee’s employment hereunder at any time upon
delivery of written notice of termination for Cause (as defined below) to the Employee by the Company, such employment to terminate immediately
upon delivery of such notice for a termination under 3.2(a)(i)(A) or (B), unless otherwise specified in such notice, or upon expiration
of the notice and cure period described herein for a termination under 3.2(a)(i)(C) or (D). As used herein, “Cause” means
that the Company has determined that the Employee: (A) has misappropriated, stolen, or embezzled funds or property from the Company
or, without the permission of the Company, secured or attempted to secure personally any profit in connection with any transaction entered
into on behalf of the Company; (B) has been charged with a felony which in the reasonable opinion of the Company brings the Employee
into disrepute or is likely to cause material harm to the Company’s business, customer, or supplier relations, financial condition,
prospects, or reputation; (C) has willfully failed to perform the Employee’s duties to the Company in a manner reasonably satisfactory
to the Company; or (D) has willfully violated or breached any provision of this Agreement or any law or regulation, where, in the reasonable
opinion of the Company, such violation or breach is to the material detriment of the Company or its business. A termination by the Company
shall not be for Cause under Section 3.2(a)(i)(C) or (D) unless: (1) the Company gives the Employee written notice specifying the event
or condition that the Company asserts authorizes termination for Cause under Section 3.2(a)(i)(C) or (D) and (2) during the 30 days following
receipt of such notice, the Employee fails to remedy or cure the event or condition. Any termination of employment pursuant to this Section
3.2(a)(i) shall entitle the Employee to receive only the payments referred to in Section 3.3(a) hereof.

 

(ii)       Without
Cause. The Company shall have the right to terminate this Agreement and the Employee’s employment hereunder without Cause after
60 days’ prior written notice by the Company to the Employee. Any termination of employment pursuant to this Section 3.2(a)(ii)
shall entitle the Employee to receive the payments referred to in Section 3.3(a) and (b) hereof.

 

(iii)       Upon
Total Disability. The Company shall have the right to terminate this Agreement and the Employee’s employment hereunder upon
five days’ prior written notice to the Employee if the Company determines that the Employee is unable to perform the Employee’s
duties by reason of Total Disability. As used herein, “Total Disability” shall mean the inability of the Employee, due to
physical or mental illness or injury, and with the benefit of any reasonable accommodation requested by and provided to the Employee,
to perform the Employee’s essential duties hereunder for any period of 180 consecutive days.  The return of the Employee to
the Employee’s duties for periods of 30 days or less shall not interrupt such 180-day period. Upon any termination of employment
pursuant to this Section 3.2(a)(iii), the Employee shall only be entitled to receive the payments referred to in Section 3.3(a) hereof.

 

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(b)       By
the Employee.

 

(i)       For
Good Reason. The Employee shall have the right to terminate this Agreement and his employment hereunder for Good Reason, such employment
to terminate upon expiration of the notice and cure period described herein. As used herein, “Good Reason” shall mean: (A)
any material failure by the Company to comply with any provision of this Agreement; (B) a material diminution in the Employee’s
overall duties and responsibilities as a result of any merger or business combination to which the Company is a party; or (C) the permanent
relocation of the Employee’s principal place of employment to a location that is more than 50 miles from Canton, Ohio. A termination
by the Employee shall not be for Good Reason unless: (1) the Employee gives the Company written notice specifying the event or condition
that the Employee asserts authorizes termination for Good Reason; (2) the Employee did not cause the event or condition that Employee
asserts authorizes Employee’s termination for Good Reason or knowingly allow such event or condition to occur (but only if Employee
had the authority and power to cause the event not to occur and knowingly chose not to exercise such power or authority); (3) such notice
is given no more than 30 days after the occurrence of the event or the initial existence of the condition that Employee asserts authorizes
termination for Good Reason; (4) during the 30 days following receipt of such notice, the Company fails to remedy or cure the event or
condition; and (5) Employee terminates Employee’s employment within 30 days after the end of such cure period. In the event that
the Employee elects to terminate his employment pursuant to Section 3.2(b)(i) and in accordance with the notice and cure requirements
in subparts (1) through (5) above, the Employee shall be entitled to receive the payments referred to in Section 3.3(a) and (b) hereof.

 

(ii)       Without
Good Reason. The Employee shall have the right to terminate this Agreement and his employment hereunder without Good Reason after
60 days’ prior written notice by the Employee to the Company. If the Employee gives 60 days’ notice of termination without
Good Reason under this Section 3.2(b)(ii), the Company in its sole discretion can elect to make the Employee’s resignation of employment
effective immediately at any time during the 60-day notice period, and any such termination by the Company shall not convert Employee’s
resignation into a termination by the Company without Cause. In the event the Employee elects to terminate his employment pursuant to
Section 3.2(b)(ii), the Employee shall be entitled to receive only the payments referred to in Section 3.3(a) hereof. Further, if the
Employee fails to give 60 days’ notice of termination without Good Reason under this Section 3.2(b)(ii), the Employee shall not
be entitled to receive payment for any accrued but unused vacation as of the Termination Date.

 

(c)       By
Expiration of Agreement. This Agreement and the Employee’s employment hereunder shall terminate upon the date of the expiration
of the then-current Term in the event either party elects not to renew the then-current Term pursuant to Section 3.1. In the event the
employment of the Employee is terminated by the expiration of the then-current Term, the Employee shall be entitled to receive only the
payments referred to in Section 3.3(a) hereof.

 

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(d)       Death
of Employee. This Agreement and the Employee’s employment hereunder shall terminate upon the death of the Employee. In
such an event, the Employee’s surviving spouse, or if none, the Employee’s estate shall be entitled to receive only the payments
referred to in Section 3.3(a) hereof.

 

3.3.       Compensation
and Benefits Following Termination. Except as specifically provided in this Section 3.3, any and all obligations of the Company
to make payments to the Employee under this Agreement shall cease as of the date the Employment Period expires under Section 3.1 or as
of the date the Employee’s employment is terminated under Section 3.2, as the case may be (either such date, the “Termination
Date”). From the date of any notice of termination through the Termination Date (to the extent they are different), the Employee
shall continue to perform the normal duties of the Employee’s employment hereunder (unless waived by the Company) and shall be
entitled to receive when due all compensation and benefits applicable to the Employee hereunder.

 

(a)       Standard
Termination Payments. In the event that the Employee’s employment terminates for any reason under any provision in Section
3.2, the Company shall, within the period prescribed by applicable State law but no later than 30 days after the Termination Date, pay
the Standard Termination Payments (as defined below) to the Employee or, in the case of termination pursuant to Section 3.2(d) on account
of the death of the Employee, to the Employee’s surviving spouse or estate as appropriate. For purposes of this Section 3.3, “Standard
Termination Payments” shall mean (i) the Employee’s earned and unpaid Annual Base Salary through the Termination Date; (ii)
any unreimbursed business and entertainment expenses that are reimbursable through the Termination Date; and (iii) any accrued but unused
vacation as of the Termination Date. Moreover, for any such termination, the Employee shall be entitled to receive any vested benefits
to which the Employee has a right under the Company’s benefit plans and programs, including without limitation continuation coverage
under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, which benefits will be provided in accordance with the
applicable plan terms.

 

(b)       By
Company Without Cause or by Employee for Good Reason. In the event that the Company elects to terminate this Agreement and the
Employee’s employment hereunder without Cause under Section 3.2(a)(ii) or the Employee elects to terminate this Agreement and his
employment hereunder for Good Reason under Section 3.2(b)(i), in addition to the Standard Termination Payments provided in Section 3.3(a),
and subject to the Employee’s execution of a release on or after the Termination Date that becomes effective and irrevocable as
described in Section 3.4, the Company shall continue to pay the Employee his then-current Annual Base Salary, less applicable deductions
and withholdings, for twelve months after the Termination Date. The first salary continuation payment will be paid to the Employee on
the first Company payroll date that is ten days after the date that the release described in Section 3.4 becomes effective and irrevocable
and will include any salary continuation payments for payroll dates between the Termination Date and the first salary continuation payment
date.

 

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3.4.       Release.
The Company will have no obligation to the Employee for the severance continuation payments under Section 3.3(b) unless the Employee
has executed, on or after the Termination Date, and delivered to the Company, on or before the 50th day following the Termination
Date, an effective and irrevocable general release and waiver of claims that releases the Company and all of its related entities, affiliates,
investors, owners, and employees from, and promises not to sue them for, all claims and liabilities arising on or before the date the
Employee signs the release, including claims related to the Employee’s employment with and separation from the Company, in the
form of Exhibit A attached hereto with such changes as may be necessary under applicable law or as agreed to by the parties.

 

3.5.       Resignation.
Upon termination of the Employee’s employment, the Employee hereby agrees that the Employee shall automatically be treated as having
resigned from any offices or positions related to the Company or any of its affiliates.

 

4.       RESTRICTIVE
COVENANTS.

 

4.1.       Recitals.
While employed with the Company, the Employee will be employed in a position of trust and confidence, and as a result, the Employee will
be provided with the Company’s trade secrets and confidential or proprietary information, including but not limited to information
related to (a) reports, pricing, selling, purchasing, and pricing procedures, and financing methods of the Company, and any specific
and proprietary techniques utilized by the Company in designing, developing, testing, or marketing its products or in performing services
for clients, customers, and accounts of the Company; (b) the business plans and financial statements, reports, and projections of the
Company; (c) identities, addresses, contact persons, purchasing habits, and all other information related to the Company’s customers,
clients, and investors, purchasers, lenders, or any other confidential information relating to or dealing with the business operations
or activities of the Company; and (d) information concerning the licenses, permits, or other authorizations relevant to the Company’s
business, made known to the Employee or acquired by the Employee in the course of the Employee’s employment at the Company (collectively,
“Confidential Information”). Notwithstanding the foregoing, Confidential Information shall not include information or materials
(a) that was or becomes generally available to the public other than as a result of breach of this Agreement by the Employee or (b) which
the Employee had in his possession prior to disclosure by the Company or receives from a third party who, to the Employee’s knowledge,
is not bound by a duty of confidentiality to the Company. The Employee acknowledges that the Company takes reasonable steps to protect
its Confidential Information and to prevent disclosure of its Confidential Information to the public. Moreover, the Employee acknowledges
that during Employee’s employment with the Company, the Employee will be put in a position of trust and confidence with the Company’s
customers, employees, and consultants. The Employee agrees and acknowledges, therefore, that it is fair and reasonable for the Company
to take steps necessary to protect its Confidential Information; protect against the risk of misappropriation of such Confidential Information;
and protect the Company’s relationship with its customers, employees, and consultants.

 

4.2.       Non-Recruitment.
By and in consideration of the Company’s entering into this Agreement, and in further consideration of the Employee’s exposure
to the Confidential Information of the Company and its affiliates, the Employee agrees that the Employee shall not, during the Employee’s
employment with the Company and for a period of six (6) months after the Employee’s employment with the Company is terminated by
either party for any reason (the “Restricted Period”): (a) directly or indirectly hire, induce, or solicit (or assist any
person or entity to hire, induce, or solicit) for employment any person who is, or within six (6) months prior to the date of such hiring,
inducement, or solicitation was, an employee of the Company or (b) induce or solicit (or assist any person or entity to induce or solicit)
any person who is an employee of the Company to terminate his/her employment relationship with the Company. The foregoing does not apply
to any employee who responds to any general public advertisement by the Employee or is referred by an employment agency, so long as the
advertisement or agency search was not directed towards any such employee or group of employees of the Company.

 

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4.3.       Confidential
Information. This covenant is independent of, and in addition to, those set forth above.

 

(a)       In
order to protect the Company’s Confidential Information, the Employee hereby covenants and agrees that the Employee will at all
times hold the Confidential Information in confidence, will take all reasonable and necessary measures to prevent the disclosure of the
Confidential Information, and will not use or disclose any Confidential Information, except for the benefit of the Company and to authorized
representatives of the Company, to professional advisors (including without limitation attorneys, accountants, and financial advisors),
or except as required by any governmental, regulatory, or judicial authority.

 

(b)       The
Employee acknowledges that all Confidential Information are and shall remain the sole, exclusive, and valuable property of the Company
and that the Employee has and shall acquire no right, title, or interest therein. Any and all printed, typed, written, or other material
that the Employee may have or obtain with respect to Confidential Information shall be and remain the exclusive property of the Company,
and any and all material (including any copies) shall, upon request of the Company, be promptly delivered by the Employee to the Company.

 

(c)       If
the Employee becomes compelled by law, by regulatory or judicial process or by any other proceeding to make any disclosure that is prohibited
by this Section 4.3, the Employee shall, to the extent legally permissible, provide the Company with prompt notice of such compulsion
so that the Company may seek an appropriate protective order or other appropriate remedy or waive compliance with the provisions of this
Section 4.3. In the absence of a protective order or other remedy, the Employee may disclose that portion (and only that portion) of
the Confidential Information that, based upon the opinion of the Employee’s counsel, the Employee is legally compelled to disclose;
provided, however, that the Employee shall use commercially reasonable efforts to obtain written assurance that any person to
whom any Confidential Information is so disclosed shall accord confidential treatment to such Confidential Information.

 

(d)       Nothing
in this Agreement prohibits Employee from disclosing a Company trade secret (i) in confidence to a Federal, State, or local government
official, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law or (ii) in a complaint
or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Moreover, if Employee files a lawsuit for
retaliation by an employer for reporting a suspected violation of law, Employee may disclose a Company trade secret to the Employee’s
attorney and use the trade secret information in the court proceeding if the Employee files any document containing the trade secret
under seal and does not disclose the trade secret except pursuant to court order.

 

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4.4.       Scope
and Reasonableness.

 

(a)       The
parties agree that it is not their intention to violate any public policy, rule of public order, or statutory or common law. The parties
intend that the provisions of this Agreement be enforced to the fullest extent permissible under the laws and public policies applied
in each jurisdiction in which enforcement is sought. If any provision of this Agreement is found by a court to be unenforceable, the
parties authorize the court to amend or modify the provision to make it enforceable in the most restrictive fashion permitted by law.

 

(b)       The
Employee acknowledges that the restrictions contained in this Section 4, in view of the nature of the business in which the Company is
engaged and in view of the Confidential Information to which the Employee will be exposed, are reasonable and necessary in order to protect
the Confidential Information of the Company and the Company’s relationships with its customers, employees, and consultants, and
that any violation thereof would result in irreparable injuries to the Company, and the Employee therefore acknowledges that, in the
event of the Employee’s violation of any of these restrictions, the Company shall be entitled to seek from any court of competent
jurisdiction (in any jurisdiction) preliminary and permanent injunctive relief as well as damages and an equitable accounting of all
earnings, profits, and other rights or remedies to which the Company may be entitled. Notwithstanding the foregoing to the contrary,
under no circumstances shall the Employee be liable for special, consequential, or punitive damages for any breach of this Agreement
or otherwise. If the Employee violates any of the restrictions contained in the foregoing Section 4.2, the Restricted Period shall not
run in favor of the Employee from the time of the commencement of any such violation until such violation shall be cured by the Employee
to the reasonable satisfaction of Company.

 

4.5.       Survival.
Any provision of this Agreement to the contrary notwithstanding, if this Agreement is terminated for any reason, the provisions and covenants
of this Section 4 shall nevertheless remain in full force and effect in accordance with their respective terms.

 

5.       MISCELLANEOUS.

 

5.1.       Code
Section 409A.

 

(a)       This
Agreement and the amounts payable and other benefits provided under this Agreement are intended to comply with, or otherwise be exempt
from, Section 409A of the Internal Revenue Code (“Section 409A”), after giving effect to the exemptions in Treasury Regulation
section 1.409A-1(b)(3) through (b)(12). This Agreement shall be administered, interpreted and construed in a manner consistent with the
requirements and exemptions under Section 409A. If any provision of this Agreement is found not to comply with, or otherwise not be exempt
from, the provisions of Section 409A, it shall be modified and given effect, in the sole reasonable discretion of the Employer and without
requiring the Employee’s consent, in such manner as the Employer reasonably determines to be necessary or appropriate to comply
with, or to effectuate an exemption from, Section 409A; provided, however, that in exercising its discretion, the Employer shall
modify this Agreement in the least restrictive manner necessary and provided further that the Employer have no obligation to indemnify
the Employee or hold the Employee harmless from any adverse tax consequences related to any failure to comply with Section 409A. Each
payment under this Agreement shall be treated as a separate identified payment for purposes of Section 409A.

 

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(b)       With
respect to any reimbursement of expenses of, or any provision of in-kind benefits to, the Employee, as provided under this Agreement,
such reimbursement of expenses or provision of in-kind benefits shall be subject to the following limitations: (i) the expenses eligible
for reimbursement or the amount of in-kind benefits provided in one taxable year shall not affect the expenses eligible for reimbursement
or the amount of in-kind benefits provided in any other taxable year, except for any medical reimbursement arrangement providing for
the reimbursement of expenses referred to in Section 105(b) of the Internal Revenue Code; (ii) the reimbursement of an eligible expense
shall be made as specified in this Agreement and in accordance with Employer’s normal reimbursement procedures for senior management,
and (iii) the right to reimbursement or in-kind benefit shall not be subject to liquidation or exchange for another benefit.

 

(c)       If
a payment obligation under this Agreement arises on account of the Employee’s termination of his employment and such payment obligation
constitutes “deferred compensation” (as defined under Treasury Regulation section 1.409A-1(b)(1), after giving effect to
the exemptions in Treasury Regulation section 1.409A-1(b)(3) through (b)(12)), it shall be payable only after the Employee’s “separation
from service” (as defined under Treasury Regulation section 1.409A-1(h)); provided, however, that if the Employee is a “specified
employee” (as defined under Treasury Regulation section 1.409A-1(i)), any such payment obligation that is scheduled to be paid
within six months after such separation from service shall accrue without interest and shall be paid on the first day of the seventh
month beginning after the date of the Employee’s separation from service or, if earlier, within fifteen days after the appointment
of the personal representative or executor of the Employee’s estate following the Employee’s death.

 

5.2.       Applicable
Law. This Agreement shall be construed and interpreted according to the laws of the State of Ohio, without regard to the conflicts
of law rules thereof.

 

5.3.       Headings.
The headings and captions set forth herein are for convenience of reference only and shall not affect the construction or interpretation
hereof.

 

5.4.       Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of successors and permitted assigns of the parties.
This Agreement may not be assigned, nor may performance of any duty hereunder be delegated, by either party without the prior written
consent of the other; provided, however, the Company may assign this Agreement to any successor to its business or to any affiliate.

 

5.5.       Entire
Agreement; Termination of Services Agreement. This Agreement sets forth the entire agreement and understanding of the parties
with respect to the subject matter hereof, and there are no other contemporaneous written or oral agreements, undertakings, promises,
warranties, or covenants not specifically referred to or contained herein. This Agreement specifically supersedes any and all prior agreements
and understandings of the parties with respect to the subject matter hereof, all of which prior agreements and understandings are hereby
terminated and of no further force and effect.

 

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5.6.       Amendments.
This Agreement may be amended, modified, or terminated only by a written instrument signed by the parties hereto.

 

5.7.       Waiver.
The Company’s failure to enforce any provision or provisions in this Agreement shall not in any way be construed as a waiver of
any provision or provisions of this Agreement, or prevent the Company from thereafter enforcing each and every provision of this Agreement.

 

5.8.       Execution
in Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all
of which together shall constitute one and the same Agreement. This Agreement may be delivered by facsimile transmission or email attachment
of an originally executed copy.

 

5.9.       Severability.
If any section, provision, clause or part of this Agreement, or the applications thereof under certain circumstances, is held invalid
or unenforceable for any reason, the remainder of this Agreement, or the application of such section, provision, clause or part under
other circumstances, shall not be affected thereby.

 

5.10.       Incorporation
of Recitals. The Recitals to this Agreement are an integral part of, and by this reference are hereby incorporated into, this
Agreement.

 

5.11.       Withholdings.
Each payment of compensation or benefits to or on behalf of the Employee under this Agreement shall be reduced by authorized deductions.

 

[Signatures
on Following Page]

 

    11

    

    

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written below.

 

	 	HOF VIllage
    newco, llc
	 	 	 
	 	By:	/s/ Michael Crawford
	 	Name:	Michael Crawford  
	 	Title:	President and CEO
	 	Date:	2/14/2022
	 	 	 
	 	Hall of Fame
    Resort & Entertainment Company
	 	 	 
	 	By:	/s/ Michael Crawford
	 	Name:	Michael Crawford  
	 	Title:	President and CEO
	 	Date:	2/14/2022
	 	 	 
	 	Benjamin
    J. Lee
	 	 	 
	 	/s/ Benjamin J. Lee
	 	Benjamin J. Lee, Individually
	 	 	 
	 	2/14/2022 
	 	Date

 

[Signature
Page to Lee Employment Agreement]

 

    12

    

    

 

Exhibit
A

 

Form
of Release

 

GENERAL
RELEASE AND WAIVER

 

THIS
GENERAL RELEASE AND WAIVER (this “Release”) is entered into by and between [___] (the “Company”) and [●]
(the “Employee”). The Company and the Employee hereby agree as follows:

 

1.       Employment
Status. The Employee’s employment with the Company terminated effective as of [●].

 

2.       Payment
and Benefits. The Company shall provide the Employee with the salary continuation payments specified in and subject to the provisions
of Section 3.3(b) of the Employment Agreement dated as of [●], by and between the Company and the Employee (the “Employment
Agreement”); provided, that such payment is subject to certain terms and conditions, including without limitation this Release
becoming effective, as provided in the Employment Agreement.

 

3.       No
Liability. This Release does not constitute an admission by any of the Company Releasees (as defined below) of any unlawful acts
or of any violation of federal, state, or local laws.

 

4.       Release.
In consideration of the payments and benefits set forth in the Employment Agreement, the Employee, for the Employee, the Employee’s
heirs, administrators, representatives, executors, successors, and assigns (collectively, the “Employee Releasors”), hereby
irrevocably and unconditionally releases, acquits, and forever discharges the Company and its current and former parents, affiliates,
subsidiaries, divisions, successors, assigns, trustees, officers, directors, partners, shareholders, agents, parents, employees, including
without limitation all persons acting by, through, under, or in concert with any of them (collectively, the “Company Releasees”)
from any and all charges, complaints, claims, liabilities, obligations, promises, agreements, controversies, damages, remedies, actions,
causes of action, suits, rights, demands, costs, losses, debts, and expenses (including attorneys’ fees and costs) of any nature
whatsoever, known or unknown, whether in law or equity and whether arising under federal, state, or local law that the Employee Releasors
had, now have, or may hereafter claim to have had against each or any of the Company Releasees by reason of any matter, cause, or thing
occurring, done, or omitted to be done on or before the date of Employee’s execution of this Release. Without limitation, this
Release includes a knowing and voluntary waiver of any and all rights, claims, and causes of action for discrimination based upon race,
color, ethnicity, sex, national origin, religion, disability, and age (including without limitation under the Age Discrimination in Employment
Act of 1967 as amended by the Older Workers Benefit Protection Act (“ADEA”), Title VII of the Civil Rights Act of 1964 as
amended by the Civil Rights Act of 1991, the Equal Pay Act of 1962, the Americans with Disabilities Act of 1990, and any other federal,
state, or local anti-discrimination law) or any other unlawful criterion or circumstance. Employee is not waiving or releasing any claims
that may arise after the date that the Employee executes this Release or claims related to the Equity Award Agreement. Moreover, this
Release does not cover the Employee’s right to file a charge with or participate in a charge by the Equal Employment Opportunity
Commission, or any other local, state, or federal administrative body or government agency that is authorized to enforce or administer
laws related to employment, against the Company Releasees (with the understanding that any such filing or participation does not give
the Employee the right to recover any monetary damages against the Company Releasees; the Employee’s release of claims herein bars
the Employee from recovering such monetary relief from the Company Releasees).

 

    13

    

    

 

In
addition, for purposes of this Release, the Employee represents that the Employee is not aware of any claims against the Company Releasees.

 

5.       Restrictive
Covenants. The Employee expressly acknowledges and agrees that Employee will continue to be bound by the obligations set forth in
Section 4 of the Employment Agreement for the periods set forth therein.

 

6.       Company
Property. By signing this Release, the Employee acknowledges that the Employee has returned to the Company all originals and copies
of Company documents and all Company property, including without limitation, keys, computer files, diskettes, database information, client
information, sales documents, financial statements, budgets and forecasts, and any similar information. The Employee further represents
that the Employee has left intact all of the Company’s electronic files, including those that Employee developed or helped develop
during the Employee’s employment with the Company.

 

7.       Bar.
The Employee acknowledges and agrees that, if the Employee should hereafter make any claim or demand or commence or threaten to commence
any action, claim, or proceeding against the Company Releasees with respect to any cause, matter, or thing which is the subject of the
release under Paragraph 4 of this Release, this Release may be raised as a complete bar to any such action, claim, or proceeding, and
the applicable Company Releasee may recover from the Employee all expenses and costs incurred in connection with such action, claim,
or proceeding, including attorneys’ fees.

 

8.       Non-Disparagement.
The Employee agrees not to make any statement, oral or written, that would reasonably be considered disparaging of the Company, its programs,
or its services, or any of the Company Releasees. The Company agrees that then-current members of its Employee management team acting
in their capacity as employees of the Company will not make any statement, oral or written, that would reasonably be considered to be
disparaging of the Employee. Nothing in this Section 8 shall prevent the Employee or the Company from providing truthful information
if compelled to do so by law or by regulatory or judicial process.

 

9.       Governing
Law; Interpretation. This Release shall be governed by and construed in accordance with the laws of the State of Ohio, without regard
to the conflicts of law rules thereof. If for any reason any part of this Release shall be determined to be unenforceable, the remaining
terms and conditions shall be enforced to the fullest extent possible.

 

10.       Acknowledgments.
The Employee acknowledges that the Employee has been advised in writing to consult with an attorney before signing this Agreement. The
Employee further acknowledges that the Employee has been given sufficient time to review this Release, the Employee has read and fully
understands its provisions, the Employee voluntarily accepts its terms, and the Employee has a period of twenty-one (21) days in which
to consider entering into this Release. If the Employee executes the Release in less than twenty-one (21) days, the Employee acknowledges
that the Employee is doing so voluntarily and that the Employee is waiving the Employee’s right to the full twenty-one (21) days
to consider the Release.

 

    14

    

    

 

11.       Revocation.
The Employee has a period of seven (7) days following the execution of this Release during which the Employee may revoke this Release,
and this Release shall not become effective or enforceable until such revocation period has expired.

 

12.       Counterparts.
This Release may be executed by the parties hereto in counterparts, which taken together shall be deemed one original. This Release may
be delivered by facsimile transmission or email attachment of an originally executed copy.

 

THE
UNDERSIGNED HAVE CAREFULLY READ THIS RELEASE; THEY KNOW AND UNDERSTAND ITS TERMS; THEY FREELY AND VOLUNTARILY AGREE TO ABIDE BY ITS TERMS;
AND THEY HAVE NOT BEEN COERCED INTO SIGNING THIS AGREEMENT.

 

	 	 
	[____]	 	 
	 	 	 
	 	 
	Date	 	 
	 	 	 
	[___]	 	 
	 	 	 
	By:	 	 
	Title:	 	 
	 	 	 
	 	 
	Date	 	 

 

 

15Exhibit 4.1

DESCRIPTION OF THE REGISTRANT’S SECURITIES REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934
​
In this document, the “Company,” “we,” “us” and “our” refer to Latham Group, Inc., a Delaware corporation. The following description of our capital stock summarizes certain provisions of our amended and restated certificate of incorporation (the “certificate of incorporation”) and our amended and restated bylaws (the “bylaws”). The description is intended as a summary, and is qualified in its entirety by reference to our certificate of incorporation and our bylaws, copies of which have been filed as exhibits to this Annual Report on Form 10-K.
Authorized Capital 

Our authorized capital stock consists of: 
		●	900,000,000 shares of common stock, par value $0.0001 per share; and

		●	100,000,000 shares of preferred stock, par value $0.0001 per share.

Our common stock is registered under Section 12(b) of the Securities Exchange Act of 1934, as amended and listed on The Nasdaq Global Select Market (“NASDAQ”) under the symbol “SWIM.” 
Common Stock 
Voting Rights. Holders of our common stock are entitled to one vote for each share held of record on all matters to which stockholders are entitled to vote generally, including the election or removal of directors. The holders of our common stock do not have cumulative voting rights in the election of directors.
Dividend Rights. The Delaware General Corporation Law (the “DGCL”) permits a corporation to declare and pay dividends out of “surplus” or, if there is no “surplus,” out of its net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year. “Surplus” is defined as the excess of the net assets of the corporation over the amount determined to be the capital of the corporation by the board of directors. The capital of the corporation is typically calculated to be (and cannot be less than) the aggregate par value of all issued shares of capital stock. Net assets equals the fair value of the total assets minus total liabilities. The DGCL also provides that dividends may not be paid out of net profits if, after the payment of the dividend, capital is less than the capital represented by the outstanding stock of all classes having a preference upon the distribution of assets. 
Declaration and payment of any dividend is subject to the discretion of our board of directors. The time and amount of dividends is dependent upon our financial condition, operations, cash requirements and availability, debt repayment obligations, capital expenditure needs and restrictions in our debt instruments, industry trends, the provisions of Delaware law affecting the payment of dividends to stockholders and any other factors our board of directors may consider relevant.
Liquidation Rights. Upon our liquidation, dissolution or winding up and after payment in full of all amounts required to be paid to creditors and to the holders of preferred stock having liquidation preferences, if any, the holders of our common stock will be entitled to receive pro rata our remaining assets available for distribution.
Rights and Preferences. Holders of our common stock do not have preemptive, subscription, redemption or conversion rights. The common stock is not be subject to further calls or assessment by us. There are no redemption or sinking fund provisions applicable to the common stock. All shares of our common stock currently outstanding are fully paid and non-assessable. The rights, powers, preferences and privileges of holders of our common stock will be subject to those of the holders of any shares of our preferred stock we may authorize and issue in the future. 

2

Preferred Stock 

Our certificate of incorporation authorizes our board of directors to establish one or more series of preferred stock (including convertible preferred stock). Unless required by law or by NASDAQ, the authorized shares of preferred stock will be available for issuance without further action by you. Our board of directors may determine, with respect to any series of preferred stock, the powers (including voting powers), preferences and relative participations, optional or other special rights, and the qualifications, limitations or restrictions thereof, of that series, including, without limitation: 
		●	the designation of the series; 

		●	the number of shares of the series, which our board of directors may, except where otherwise provided in the preferred stock designation, increase (but not above the total number of authorized shares of the class) or decrease (but not below the number of shares then outstanding); 

		●	whether dividends, if any, will be cumulative or non-cumulative and the dividend rate of the series; 

		●	the dates at which dividends, if any, will be payable; 

		●	the redemption rights and price or prices, if any, for shares of the series; 

		●	the terms and amounts of any sinking fund provided for the purchase or redemption of shares of the series; 

		●	the amounts payable on shares of the series in the event of any voluntary or involuntary liquidation, dissolution or winding-up of the affairs of our Company; 

		●	whether the shares of the series will be convertible into shares of any other class or series, or any other security, of our Company or any other corporation, and, if so, the specification of the other class or series or other security, the conversion price or prices or rate or rates, any rate adjustments, the date or dates as of which the shares will be convertible and all other terms and conditions upon which the conversion may be made; 

		●	restrictions on the issuance of shares of the same series or of any other class or series; and 

		●	the voting rights, if any, of the holders of the series. 

We could issue a series of preferred stock that could, depending on the terms of the series, impede or discourage an acquisition attempt or other transaction that some, or a majority, of you might believe to be in your best interests or in which you might receive a premium for your common stock over the market price of the common stock. Additionally, the issuance of preferred stock may adversely affect the holders of our common stock by restricting dividends on the common stock, diluting the voting power of the common stock or subordinating the liquidation rights of the common stock. As a result of these or other factors, the issuance of preferred stock could have an adverse impact on the market price of our common stock. 
Anti-Takeover Effects of Our Certificate of Incorporation and Bylaws and Certain Provisions of Delaware Law 

Our certificate of incorporation, bylaws and the DGCL, which are summarized in the following paragraphs, contain provisions that are intended to enhance the likelihood of continuity and stability in the composition of our board of directors. These provisions are intended to avoid costly takeover battles, reduce our vulnerability to a hostile change of control and enhance the ability of our board of directors to maximize stockholder value in connection with any unsolicited offer to acquire us. However, these provisions may have an anti-takeover effect and 

3

may delay, deter or prevent a merger or acquisition of our Company by means of a tender offer, a proxy contest or other takeover attempt that a stockholder might consider in its best interest, including those attempts that might result in a premium over the prevailing market price for the shares of common stock held by stockholders. 
Authorized but Unissued Capital Stock 

Delaware law does not require stockholder approval for any issuance of authorized shares. However, the listing requirements of NASDAQ, which would apply if and so long as our common stock remains listed on NASDAQ, require stockholder approval of certain issuances equal to or exceeding 20% of the then outstanding voting power or then outstanding number of shares of common stock. These additional shares may be used for a variety of corporate purposes, including future public offerings, to raise additional capital or to facilitate acquisitions. 
Our board of directors may generally issue preferred shares on terms calculated to discourage, delay or prevent a change of control of our Company or the removal of our management. Moreover, our authorized but unissued shares of preferred stock will be available for future issuances without stockholder approval and could be utilized for a variety of corporate purposes, including future offerings to raise additional capital, acquisitions and employee benefit plans. 
One of the effects of the existence of unissued and unreserved common stock or preferred stock may be to enable our board of directors to issue shares to persons friendly to current management, which issuance could render more difficult or discourage an attempt to obtain control of our Company by means of a merger, tender offer, proxy contest or otherwise, and thereby protect the continuity of our management and possibly deprive our stockholders of opportunities to sell their shares of common stock at prices higher than prevailing market prices. 
Classified Board of Directors 

Our certificate of incorporation provides that our board of directors is divided into three classes of directors, with the classes to be as nearly equal in number as possible, and with the directors serving three-year terms. As a result, approximately one-third of our board of directors are elected each year. The classification of directors has the effect of making it more difficult for stockholders to change the composition of our board of directors. Our certificate of incorporation and bylaws provide that, subject to any rights of holders of preferred stock to elect additional directors under specified circumstances or to any rights granted to our Principal Stockholders under our stockholders agreement, the number of directors is fixed from time to time exclusively pursuant to a resolution adopted by the board of directors. References to our “Principal Stockholders” refer to the Pamplona Capital Partners V, L.P., an investment fund managed by affiliates of Pamplona Capital Management, LLC and Wynnchurch Capital Partners IV, L.P.  and WC Partners Executive IV, L. P. managed by affiliates of Wynnchurch Capital, L.P.
Business Combinations 

We have opted out of Section 203 of the DGCL; however, our certificate of incorporation contains similar provisions providing that we may not engage in certain “business combinations” with any “interested stockholder” for a three-year period following the time that the stockholder became an interested stockholder, unless: 
		●	prior to such time, our board of directors approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder; 

		●	upon consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of our voting stock outstanding at the time the transaction commenced, excluding certain shares; or 

4

		●	at or subsequent to that time, the business combination is approved by our board of directors and by the affirmative vote of holders of at least 66 2/3% of the outstanding voting stock that is not owned by the interested stockholder. 

Generally, a “business combination” includes a merger, asset or stock sale or other transaction resulting in a financial benefit to the interested stockholder. Subject to certain exceptions, an “interested stockholder” is a person who, together with that person’s affiliates and associates, owns, or within the previous three years owned, 15% or more of our voting stock. For purposes of this section only, “voting stock” has the meaning given to it in Section 203 of the DGCL. 
Under certain circumstances, this provision will make it more difficult for a person who would be an “interested stockholder” to effect various business combinations with a corporation for a three-year period. This provision may encourage companies interested in acquiring our Company to negotiate in advance with our board of directors because the stockholder approval requirement would be avoided if our board of directors approves either the business combination or the transaction which results in the stockholder becoming an interested stockholder. These provisions also may have the effect of preventing changes in our board of directors and may make it more difficult to accomplish transactions which stockholders may otherwise deem to be in their best interests. 
Our certificate of incorporation provides that our Principal Stockholders and their affiliates and any of their respective direct or indirect transferees and any group as to which such persons are a party do not constitute “interested stockholders” for purposes of this provision. 
Removal of Directors; Vacancies 

Under the DGCL, unless otherwise provided in our certificate of incorporation, directors serving on a classified board may be removed by the stockholders only for cause. Our certificate of incorporation provides that directors may be removed with or without cause upon the affirmative vote of a majority in voting power of all outstanding shares of stock entitled to vote thereon, voting together as a single class; provided, however, at any time when our Principal Stockholders and their affiliates beneficially own, in the aggregate, less than 50% in voting power of the stock of the Company entitled to vote generally in the election of directors, directors may only be removed for cause, and only by the affirmative vote of holders of at least 66 2/3% in voting power of all the then-outstanding shares of stock of the Company entitled to vote thereon, voting together as a single class. In addition, our certificate of incorporation also provides that, subject to the rights granted to one or more series of preferred stock then outstanding or the rights granted under the stockholders agreement with affiliates of our Principal Stockholders, any vacancies on our board of directors are filled only by the affirmative vote of a majority of the remaining directors, even if less than a quorum, by a sole remaining director or by the stockholders; provided, however, at any time when our Principal Stockholders and their affiliates beneficially own, in the aggregate, less than a majority in voting power of the stock of the Company entitled to vote generally in the election of directors, any newly created directorship on the board of directors that results from an increase in the number of directors and any vacancy occurring in the board of directors may, subject to any rights granted to our Principal Stockholders under our stockholders agreement, only be filled by a majority of the directors then in office, although less than a quorum, or by a sole remaining director (and not by stockholders). 
No Cumulative Voting 

Under Delaware law, the right to vote cumulatively does not exist unless the certificate of incorporation specifically authorizes cumulative voting. Our certificate of incorporation does not authorize cumulative voting. Therefore, stockholders holding a majority in voting power of the shares of our stock entitled to vote generally in the election of directors are able to elect all our directors. 

5

Special Stockholder Meetings 

Our certificate of incorporation provides that special meetings of our stockholders may be called at any time only by or at the direction of the board of directors or the Chairman of the board of directors; provided, however, so long as our Principal Stockholders and their affiliates own, in the aggregate, at least a majority in voting power of the stock of the Company entitled to vote generally in the election of directors, special meetings of our stockholders shall also be called by or at the direction of the board of directors or the Chairman of the board of directors at the request of our Principal Stockholders and their affiliates. Our bylaws prohibit the conduct of any business at a special meeting other than as specified in the notice for such meeting. These provisions may have the effect of deferring, delaying or discouraging hostile takeovers, or changes in control or management of our Company. 
Requirements for Advance Notification of Director Nominations and Stockholder Proposals 

Our bylaws establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of the board of directors or a committee of the board of directors. In order for any matter to be “properly brought” before a meeting, a stockholder will have to comply with advance notice requirements and provide us with certain information. Generally, to be timely, a stockholder’s notice must be received at our principal executive offices not less than 90 days nor more than 120 days prior to the first anniversary date of the immediately preceding annual meeting of stockholders. Our bylaws also specify requirements as to the form and content of a stockholder’s notice. Our bylaws allow the chairman of the meeting at a meeting of the stockholders to adopt rules and regulations for the conduct of meetings which may have the effect of precluding the conduct of certain business at a meeting if the rules and regulations are not followed. These provisions may also defer, delay or discourage a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to influence or obtain control of our Company. 
Stockholder Action by Written Consent 

Pursuant to Section 228 of the DGCL, any action required to be taken at any annual or special meeting of the stockholders may be taken without a meeting, without prior notice and without a vote if a consent or consents in writing, setting forth the action so taken, is signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares of our stock entitled to vote thereon were present and voted, unless our certificate of incorporation provides otherwise. Our certificate of incorporation precludes stockholder action by written consent at any time when our Principal Stockholders and their affiliates beneficially own, in the aggregate, less than a majority in voting power of the stock of the Company entitled to vote generally in the election of directors; provided, that any action required or permitted to be taken by the holders of preferred stock, voting separately as a series or separately as a class with one or more other such series, may be taken by written consent to the extent provided by the applicable certificate of designation relating to such series. 
Supermajority Provisions 

Our certificate of incorporation and bylaws provide that the board of directors is expressly authorized to make, alter, amend, change, add to, rescind or repeal, in whole or in part, our bylaws without a stockholder vote in any matter not inconsistent with the laws of the State of Delaware or our certificate of incorporation. For as long as our Principal Stockholders and their affiliates beneficially own, in the aggregate, at least a majority in voting power of the stock of the Company entitled to vote generally in the election of directors, any amendment, alteration, rescission or repeal of our bylaws by our stockholders requires the affirmative vote of a majority in voting power of the outstanding shares of our stock present in person or represented by proxy and entitled to vote on such amendment, alteration, rescission or repeal. At any time when our Principal Stockholders and their affiliates beneficially own, in the aggregate, less than a majority in voting power of the stock of the Company entitled to vote 

6

generally in the election of directors, any amendment, alteration, rescission or repeal of our bylaws by our stockholders requires the affirmative vote of the holders of at least 66 2/3% in voting power of all the then-outstanding shares of stock of the Company entitled to vote thereon, voting together as a single class. 
The DGCL provides generally that the affirmative vote of a majority of the outstanding shares entitled to vote thereon, voting together as a single class, is required to amend a corporation’s certificate of incorporation, unless the certificate of incorporation requires a greater percentage. 
Our certificate of incorporation provides that at any time when our Principal Stockholders and their affiliates beneficially own, in the aggregate, less than a majority in voting power of the stock of the Company entitled to vote generally in the election of directors, the following provisions in our certificate of incorporation may be amended, altered, repealed or rescinded only by the affirmative vote of the holders of at least 66 2/3% in voting power of all the then-outstanding shares of stock of the Company entitled to vote thereon, voting together as a single class: 
		●	the provision requiring a 66 2/3% supermajority vote for stockholders to amend our bylaws; 

		●	the provisions providing for a classified board of directors (the election and term of our directors); 

		●	the provisions regarding resignation and removal of directors; 

		●	the provisions regarding competition and corporate opportunities; 

		●	the provisions regarding entering into business combinations with interested stockholders; 

		●	the provisions regarding stockholder action by written consent; 

		●	the provisions regarding calling special meetings of stockholders; 

		●	the provisions regarding filling vacancies on our board of directors and newly created directorships; 

		●	the provisions eliminating monetary damages for breaches of fiduciary duty by a director; and 

		●	the amendment provision requiring that the above provisions be amended only with a 66 2/3% supermajority vote. 

The combination of the classification of our board of directors, the lack of cumulative voting and the supermajority voting requirements make it more difficult for our existing stockholders to replace our board of directors, as well as for another party to obtain control of us by replacing our board of directors. Because our board of directors has the power to retain and discharge our officers, these provisions could also make it more difficult for existing stockholders or another party to effect a change in management. 
These provisions may have the effect of deterring hostile takeovers, delaying, or preventing changes in control of our management or our Company, such as a merger, reorganization or tender offer. These provisions are intended to enhance the likelihood of continued stability in the composition of our board of directors and its policies and to discourage certain types of transactions that may involve an actual or threatened acquisition of us. These provisions are designed to reduce our vulnerability to an unsolicited acquisition proposal. The provisions are also intended to discourage certain tactics that may be used in proxy fights. However, such provisions could have the effect of discouraging others from making tender offers for our shares and, as a consequence, they also may inhibit fluctuations in the market price of our shares that could result from actual or rumored takeover attempts. Such provisions may also have the effect of preventing changes in management. 

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Dissenters’ Rights of Appraisal and Payment 

Under the DGCL, with certain exceptions, our stockholders have appraisal rights in connection with a merger or consolidation of us. Pursuant to the DGCL, stockholders who properly request and perfect appraisal rights in connection with such merger or consolidation will have the right to receive payment of the fair value of their shares as determined by the Delaware Court of Chancery. 
Stockholders’ Derivative Actions 

Under the DGCL, any of our stockholders may bring an action in our name to procure a judgment in our favor, also known as a derivative action, provided that the stockholder bringing the action is a holder of our shares at the time of the transaction to which the action relates or such stockholder’s stock thereafter devolved by operation of law. 
Exclusive Forum 

Our certificate of incorporation provides that unless we consent to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall, to the fullest extent permitted by law, be the sole and exclusive forum for any (i) derivative action or proceeding brought on behalf of our Company, (ii) action asserting a claim of breach of a fiduciary duty owed by any director or officer of our Company to the Company or the Company’s stockholders, creditors or other constituents, (iii) action asserting a claim against the Company or any director or officer of the Company arising pursuant to any provision of the DGCL or our certificate of incorporation or our bylaws or (iv) action asserting a claim against the Company or any director or officer of the Company governed by the internal affairs doctrine; provided, that, if and only if the Court of Chancery of the State of Delaware dismisses any such action for lack of subject matter jurisdiction, such action may be brought in another state court sitting in the State of Delaware, or if no state court of the State of Delaware has jurisdiction, the federal district court for the District of Delaware, unless we consent in writing to the selection of an alternative forum. Additionally, our certificate of incorporation states that the foregoing provision does not apply to claims arising under the Securities Act, the Exchange Act or other federal securities laws for which there is exclusive federal or concurrent federal and state jurisdiction. Unless we consent in writing to the selection of an alternative forum, the federal district courts of the United States of America shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act. The exclusive forum provisions may limit a stockholder’s ability to bring a claim in a judicial forum that it finds favorable for disputes with us or any of our directors, officers or stockholders, which may discourage lawsuits with respect to such claims. Our stockholders will not be deemed to have waived our compliance with the federal securities laws and the rules and regulations thereunder as a result of our exclusive forum provisions. 
Conflicts of Interest 
Delaware law permits corporations to adopt provisions renouncing any interest or expectancy in certain opportunities that are presented to the corporation or its officers, directors or stockholders. Our certificate of incorporation, to the maximum extent permitted from time to time by Delaware law, renounces any interest or expectancy that we have in, or right to be offered an opportunity to participate in, specified business opportunities that are from time to time presented to our officers, directors or stockholders or their respective affiliates, other than those officers, directors, stockholders or affiliates who are our or our subsidiaries’ employees. Our certificate of incorporation provides that, to the fullest extent permitted by law, each of our Principal Stockholders or any of their affiliates or any director who is not employed by us (including any non-employee director who serves as one of our officers in both his director and officer capacities) or his or her affiliates has no duty to refrain from (i) engaging in a corporate opportunity in the same or similar lines of business in which we or our affiliates now engage or propose to engage or (ii) otherwise competing with us or our affiliates. In addition, to the fullest extent permitted by law, in the event that our Principal Stockholders or any of their affiliates or any non-employee director acquires knowledge of a potential transaction or other business opportunity which may be a corporate opportunity for itself or himself or its 

8

or his affiliates or for us or our affiliates, such person will have no duty to communicate or offer such transaction or business opportunity to us or any of our affiliates and they may take any such opportunity for themselves or offer it to another person or entity. Our certificate of incorporation does not renounce our interest in any business opportunity that is expressly offered to a non-employee director solely in his or her capacity as a director or officer of the Company. To the fullest extent permitted by law, no business opportunity will be deemed to be a potential corporate opportunity for us unless we would be permitted to undertake the opportunity under our certificate of incorporation, we have sufficient financial resources to undertake the opportunity and the opportunity would be in line with our business. 
Limitation of Liability and Indemnification 

Our certificate of incorporation limits the liability of our directors to the maximum extent permitted by the DGCL. The DGCL provides that directors will not be personally liable for monetary damages for breach of their fiduciary duties as directors, except liability: 
		●	for any breach of their duty of loyalty to the corporation or its stockholders; 

		●	for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of laws; 

		●	under Section 174 of the DGCL (governing distributions to stockholders); or 

		●	for any transaction from which the director derived an improper personal benefit. 

However, if the DGCL is amended to authorize corporate action further eliminating or limiting the personal liability of directors, then the liability of our directors will be eliminated or limited to the fullest extent permitted by the DGCL, as so amended. The modification or repeal of this provision of our certificate of incorporation will not adversely affect any right or protection of a director existing at the time of such modification or repeal. 
Our certificate of incorporation and bylaws provide that we will, to the fullest extent from time to time permitted by law, indemnify our directors and officers against all liabilities and expenses in any suit or proceeding, arising out of their status as an officer or director or their activities in these capacities. We will also indemnify any person who, at our request, is or was serving as a director, officer or employee of another corporation, partnership, joint venture, trust or other enterprise. We may, by action of our board of directors, provide indemnification to our employees and agents within the same scope and effect as the foregoing indemnification of directors and officers. 
The right to be indemnified will include the right of an officer or a director to be paid expenses in advance of the final disposition of any proceeding, provided that, if required by law, we receive an undertaking to repay such amount if it will be determined that he or she is not entitled to be indemnified. 
Our board of directors may take such action as it deems necessary to carry out these indemnification provisions, including adopting procedures for determining and enforcing indemnification rights and purchasing insurance policies. Our board of directors may also adopt bylaws, resolutions or contracts implementing indemnification arrangements as may be permitted by law. Neither the amendment nor the repeal of these indemnification provisions, nor any provision of our certificate of incorporation that is inconsistent with these indemnification provisions, will eliminate or reduce any rights to indemnification relating to their status or any activities prior to such amendment, repeal or adoption.

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