Document:

ex_220750.htm

Exhibit 10.2

 

 

Execution Version

 

January 11, 2021

 

STRICTLY CONFIDENTIAL

 

TransEnterix, Inc.

635 Davis Drive, Suite 300

Morrisville, North Carolina 27560

 

Attn: Anthony Fernando, President and Chief Executive Officer

 

Dear Mr. Fernando:

 

This letter agreement (this “Agreement”) constitutes the agreement between TransEnterix, Inc. (the “Company”) and H.C. Wainwright & Co., LLC (“Wainwright”), that Wainwright shall serve as the exclusive agent, advisor or underwriter in any offering (each, an “Offering”) of securities of the Company (the “Securities”) during the Term (as hereinafter defined) of this Agreement. The terms of each Offering and the Securities issued in connection therewith shall be mutually agreed upon by the Company and Wainwright and nothing herein implies that Wainwright would have the power or authority to bind the Company and nothing herein implies that the Company shall have an obligation to issue any Securities. It is understood that Wainwright’s assistance in an Offering will be subject to the satisfactory completion of such investigation and inquiry into the affairs of the Company as Wainwright deems appropriate under the circumstances and to the receipt of all internal approvals of Wainwright in connection with an Offering. The Company expressly acknowledges and agrees that Wainwright’s involvement in an Offering is strictly on a reasonable best efforts basis and that the consummation of an Offering will be subject to, among other things, market conditions. The execution of this Agreement does not constitute a commitment by Wainwright to purchase the Securities and does not ensure a successful Offering of the Securities or the success of Wainwright with respect to securing any other financing on behalf of the Company. Wainwright may retain other brokers, dealers, agents or underwriters on its behalf in connection with an Offering.

 

A.              Compensation; Reimbursement. At the closing of each Offering (each, a “Closing”), the Company shall compensate Wainwright as follows:

 

	 	
			1.

				
			Cash Fee. The Company shall pay to Wainwright a cash fee, or as to an underwritten Offering an underwriter discount, equal to 7.75% of the aggregate gross proceeds raised in each Offering; provided, however, the fee for the potential investors identified on Exhibit A shall be 3.875% of the gross proceeds raised from such investors.

			

 

 

 

 

	 	
			2.

				
			Expense Allowance. Out of the proceeds of each Closing, the Company also agrees to pay Wainwright (a) $35,000 for non-accountable expenses (to be increased to $42,500 in case of a public Offering); (b) up to $50,000 for fees and expenses of legal counsel and other out-of-pocket expenses (to be increased to $100,000 in case of a public Offering); plus the additional amount payable by the Company pursuant to Paragraph D.3 hereunder and, if applicable, the costs associated with the use of a third-party electronic road show service (such as NetRoadshow); provided, however, that such amount in no way limits or impairs the indemnification and contribution provisions of this Agreement.

			

 

	 	
			3.

				
			Tail. Wainwright shall be entitled to compensation under clauses (1) and (2) hereunder, calculated in the manner set forth therein, with respect to any public or private offering or other financing or capital-raising transaction of any kind (“Tail Financing”) to the extent that such financing or capital is provided to the Company by investors whom Wainwright had brought over-the-wall in connection with an Offering during the Term, if such Tail Financing is consummated at any time within the 6-month period following the expiration or termination of this Agreement.

			

 

	 	
			4.

				
			Right of First Refusal. If, from the date hereof until the 6-month anniversary following consummation of each Offering, the Company or any of its subsidiaries (a) decides to finance or refinance any indebtedness, Wainwright (or any affiliate designated by Wainwright) shall have the right to act as sole book-runner, sole manager, sole placement agent or sole agent with respect to such financing or refinancing; or (b) decides to raise funds by means of a public offering (excluding any at-the-market facility) or a private placement or any other capital-raising financing of equity, equity-linked or debt securities, Wainwright (or any affiliate designated by Wainwright) shall have the right to act as sole book-running manager, sole underwriter or sole placement agent for such financing. If Wainwright or one of its affiliates decides to accept any such engagement, the agreement governing such engagement will contain, among other things, provisions for customary fees for transactions of similar size and nature and the provisions of this Agreement, including indemnification, which are appropriate to such a transaction.

			

 

B.            Term and Termination of Engagement; Exclusivity. The term of Wainwright’s exclusive engagement will begin on the date hereof and end thirty (30) days thereafter (the “Term”). Notwithstanding anything to the contrary contained herein, the Company agrees that the provisions relating to the payment of fees, reimbursement of expenses, right of first refusal, tail, indemnification and contribution, confidentiality, conflicts, independent contractor and waiver of the right to trial by jury will survive any termination or expiration of this Agreement. Notwithstanding anything to the contrary contained herein, the Company has the right to terminate the Agreement for cause in compliance with FINRA Rule 5110(g)(5)(B)(i). The exercise of such right of termination for cause eliminates the Company’s obligations with respect to the provisions relating to the tail fees and right of first refusal. Notwithstanding anything to the contrary contained in this Agreement, in the event that an Offering pursuant to this Agreement shall not be carried out for any reason whatsoever during the Term, the Company shall be obligated to pay to Wainwright its actual and accountable out-of-pocket expenses related to an Offering (including the fees and disbursements of Wainwright’s legal counsel) and, if applicable, for electronic road show service used in connection with an Offering. During Wainwright’s engagement hereunder: (i) the Company will not, and will not permit its representatives to, other than in coordination with Wainwright, contact or solicit institutions, corporations or other entities or individuals as potential purchasers of the Securities and (ii) the Company will not pursue any financing transaction which would be in lieu of an Offering. Furthermore, the Company agrees that during Wainwright’s engagement hereunder, all inquiries from prospective investors will be referred to Wainwright. Additionally, except as set forth hereunder, the Company represents, warrants and covenants that no brokerage or finder’s fees or commissions are or will be payable by the Company or any subsidiary of the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other third-party with respect to any Offering.

 

 

 

 

C.             Information; Reliance. The Company shall furnish, or cause to be furnished, to Wainwright all information requested by Wainwright for the purpose of rendering services hereunder and conducting due diligence (all such information being the “Information”). In addition, the Company agrees to make available to Wainwright upon request from time to time the officers, directors, accountants, counsel and other advisors of the Company. The Company recognizes and confirms that Wainwright (a) will use and rely on the Information, including any documents provided to investors in each Offering (the “Offering Documents”) which shall include any Purchase Agreement (as defined hereunder), and on information available from generally recognized public sources in performing the services contemplated by this Agreement without having independently verified the same; (b) does not assume responsibility for the accuracy or completeness of the Offering Documents or the Information and such other information; and (c) will not make an appraisal of any of the assets or liabilities of the Company. Upon reasonable request, the Company will meet with Wainwright or its representatives to discuss all information relevant for disclosure in the Offering Documents and will cooperate in any investigation undertaken by Wainwright thereof, including any document included or incorporated by reference therein. At each Offering, at the request of Wainwright, the Company shall deliver such legal letters (including, without limitation, negative assurance letters), opinions, comfort letters, officers’ and secretary certificates and good standing certificates, all in form and substance satisfactory to Wainwright and its counsel as is customary for such Offering. Wainwright shall be a third party beneficiary of any representations, warranties, covenants, closing conditions and closing deliverables made by the Company in any Offering Documents, including representations, warranties, covenants, closing conditions and closing deliverables made to any investor in an Offering.

 

D.              Related Agreements. At each Offering, the Company shall enter into the following additional agreements:

 

	 	
			1.

				
			Underwritten Offering. If an Offering is an underwritten Offering, the Company and Wainwright shall enter into a customary underwriting agreement in form and substance satisfactory to Wainwright and its counsel.

			

 

 

 

 

	 	
			2.

				
			Best Efforts Offering. If an Offering is on a best efforts basis, the sale of Securities to the investors in the Offering will be evidenced by a purchase agreement (“Purchase Agreement”) between the Company and such investors in a form reasonably satisfactory to the Company and Wainwright. Wainwright shall be a third party beneficiary with respect to the representations, warranties, covenants, closing conditions and closing deliverables included in the Purchase Agreement. Prior to the signing of any Purchase Agreement, officers of the Company with responsibility for financial affairs will be available to answer inquiries from prospective investors.

			

 

	 	
			3.

				
			Escrow, Settlement and Closing. If each Offering is not settled via delivery versus payment (“DVP”), the Company and Wainwright shall enter into an escrow agreement with a third party escrow agent pursuant to which Wainwright’s compensation and expenses shall be paid from the gross proceeds of the Securities sold. If the Offering is settled in whole or in part via DVP, Wainwright shall arrange for its clearing agent to provide the funds to facilitate such settlement. The Company shall pay Wainwright closing costs, which shall also include the reimbursement of the out-of-pocket cost of the escrow agent or clearing agent, as applicable, which closing costs shall not exceed $15,950.

			

 

	 	
			4.

				
			FINRA Amendments. Notwithstanding anything herein to the contrary, in the event that Wainwright determines that any of the terms provided for hereunder shall not comply with a FINRA rule, including but not limited to FINRA Rule 5110, then the Company shall agree to amend this Agreement (or include such revisions in the final underwriting agreement) in writing upon the request of Wainwright to comply with any such rules; provided that any such amendments shall not provide for terms that are less favorable to the Company than are reflected in this Agreement.

			

 

E.              Confidentiality. In the event of the consummation or public announcement of any Offering, Wainwright shall have the right to disclose its participation in such Offering, including, without limitation, the Offering at its cost of “tombstone” advertisements in financial and other newspapers and journals.

 

F.               Indemnity.

 

	 	
			1.

				
			In connection with the Company’s engagement of Wainwright hereunder, the Company hereby agrees to indemnify and hold harmless Wainwright and its affiliates, and the respective controlling persons, directors, officers, members, shareholders, agents and employees of any of the foregoing (collectively the “Indemnified Persons”), from and against any and all claims, actions, suits, proceedings (including those of shareholders), damages, liabilities and expenses incurred by any of them (including the reasonable fees and expenses of counsel), as incurred, whether or not the Company is a party thereto (collectively a “Claim”), that are (A) related to or arise out of (i) any actions taken or omitted to be taken (including any untrue statements made or any statements omitted to be made) by the Company, or (ii) any actions taken or omitted to be taken by any Indemnified Person in connection with the Company’s engagement of Wainwright, or (B) otherwise relate to or arise out of Wainwright’s activities on the Company’s behalf under Wainwright’s engagement, and the Company shall reimburse any Indemnified Person for all expenses (including the reasonable fees and expenses of counsel) as incurred by such Indemnified Person in connection with investigating, preparing or defending any such claim, action, suit or proceeding, whether or not in connection with pending or threatened litigation in which any Indemnified Person is a party. The Company will not, however, be responsible for any Claim that is finally judicially determined to have resulted from the gross negligence or willful misconduct of any such Indemnified Person for such Claim. The Company further agrees that no Indemnified Person shall have any liability to the Company for or in connection with the Company’s engagement of Wainwright except for any Claim incurred by the Company as a result of such Indemnified Person’s gross negligence or willful misconduct.

			

 

 

 

 

	 	
			2.

				
			The Company further agrees that it will not, without the prior written consent of Wainwright, settle, compromise or consent to the entry of any judgment in any pending or threatened Claim in respect of which indemnification may be sought hereunder (whether or not any Indemnified Person is an actual or potential party to such Claim), unless such settlement, compromise or consent includes an unconditional, irrevocable release of each Indemnified Person from any and all liability arising out of such Claim.

			

 

	 	
			3.

				
			Promptly upon receipt by an Indemnified Person of notice of any complaint or the assertion or institution of any Claim with respect to which indemnification is being sought hereunder, such Indemnified Person shall notify the Company in writing of such complaint or of such assertion or institution but failure to so notify the Company shall not relieve the Company from any obligation it may have hereunder, except and only to the extent such failure results in the forfeiture by the Company of substantial rights and defenses. If the Company is requested by such Indemnified Person, the Company will assume the defense of such Claim, including the employment of counsel for such Indemnified Person and the payment of the fees and expenses of such counsel, provided, however, that such counsel shall be satisfactory to the Indemnified Person and provided further that if the legal counsel to such Indemnified Person reasonably determines that having common counsel would present such counsel with a conflict of interest or if the defendant in, or target of, any such Claim, includes an Indemnified Person and the Company, and legal counsel to such Indemnified Person reasonably concludes that there may be legal defenses available to it or other Indemnified Persons different from or in addition to those available to the Company, such Indemnified Person will employ its own separate counsel (including local counsel, if necessary) to represent or defend him, her or it in any such Claim and the Company shall pay the reasonable fees and expenses of such counsel. If such Indemnified Person does not request that the Company assume the defense of such Claim, such Indemnified Person will employ its own separate counsel (including local counsel, if necessary) to represent or defend him, her or it in any such Claim and the Company shall pay the reasonable fees and expenses of such counsel. Notwithstanding anything herein to the contrary, if the Company fails timely or diligently to defend, contest, or otherwise protect against any Claim, the relevant Indemnified Person shall have the right, but not the obligation, to defend, contest, compromise, settle, assert crossclaims, or counterclaims or otherwise protect against the same, and shall be fully indemnified by the Company therefor, including without limitation, for the reasonable fees and expenses of its counsel and all amounts paid as a result of such Claim or the compromise or settlement thereof. In addition, with respect to any Claim in which the Company assumes the defense, the Indemnified Person shall have the right to participate in such Claim and to retain his, her or its own counsel therefor at his, her or its own expense.

			

 

 

 

 

	 	
			4.

				
			The Company agrees that if any indemnity sought by an Indemnified Person hereunder is held by a court to be unavailable for any reason then (whether or not Wainwright is the Indemnified Person), the Company and Wainwright shall contribute to the Claim for which such indemnity is held unavailable in such proportion as is appropriate to reflect the relative benefits to the Company, on the one hand, and Wainwright on the other, in connection with Wainwright’s engagement referred to above, subject to the limitation that in no event shall the amount of Wainwright’s contribution to such Claim exceed the amount of fees actually received by Wainwright from the Company pursuant to Wainwright’s engagement. The Company hereby agrees that the relative benefits to the Company, on the one hand, and Wainwright on the other, with respect to Wainwright’s engagement shall be deemed to be in the same proportion as (a) the total value paid or proposed to be paid or received by the Company pursuant to the applicable Offering (whether or not consummated) for which Wainwright is engaged to render services bears to (b) the fee paid or proposed to be paid to Wainwright in connection with such engagement.

			

 

	 	
			5.

				
			The Company’s indemnity, reimbursement and contribution obligations under this Agreement (a) shall be in addition to, and shall in no way limit or otherwise adversely affect any rights that any Indemnified Person may have at law or at equity and (b) shall be effective whether or not the Company is at fault in any way.

			

 

G.           Limitation of Engagement to the Company. The Company acknowledges that Wainwright has been retained only by the Company, that Wainwright is providing services hereunder as an independent contractor (and not in any fiduciary or agency capacity) and that the Company’s engagement of Wainwright is not deemed to be on behalf of, and is not intended to confer rights upon, any shareholder, owner or partner of the Company or any other person not a party hereto as against Wainwright or any of its affiliates, or any of its or their respective officers, directors, controlling persons (within the meaning of Section 15 of the Securities Act or Section 20 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), employees or agents. Unless otherwise expressly agreed in writing by Wainwright, no one other than the Company is authorized to rely upon this Agreement or any other statements or conduct of Wainwright, and no one other than the Company is intended to be a beneficiary of this Agreement. The Company acknowledges that any recommendation or advice, written or oral, given by Wainwright to the Company in connection with Wainwright’s engagement is intended solely for the benefit and use of the Company’s management and directors in considering a possible Offering, and any such recommendation or advice is not on behalf of, and shall not confer any rights or remedies upon, any other person or be used or relied upon for any other purpose. Wainwright shall not have the authority to make any commitment binding on the Company. The Company, in its sole discretion, shall have the right to reject any investor introduced to it by Wainwright.

 

 

 

 

H.            Limitation of Wainwright’s Liability to the Company. Wainwright and the Company further agree that neither Wainwright nor any of its affiliates or any of its or their respective officers, directors, controlling persons (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act), employees or agents shall have any liability to the Company, its security holders or creditors, or any person asserting claims on behalf of or in the right of the Company (whether direct or indirect, in contract, tort, for an act of negligence or otherwise) for any losses, fees, damages, liabilities, costs, expenses or equitable relief arising out of or relating to this Agreement or the services rendered hereunder, except for losses, fees, damages, liabilities, costs or expenses that arise out of or are based on any action of or failure to act by Wainwright and that are finally judicially determined to have resulted solely from the gross negligence or willful misconduct of Wainwright.

 

I.               Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to agreements made and to be fully performed therein. Any disputes that arise under this Agreement, even after the termination of this Agreement, will be heard only in the state or federal courts located in the City of New York, State of New York. The parties hereto expressly agree to submit themselves to the jurisdiction of the foregoing courts in the City of New York, State of New York. The parties hereto expressly waive any rights they may have to contest the jurisdiction, venue or authority of any court sitting in the City and State of New York. In the event Wainwright or any Indemnified Person is successful in any action, or suit against the Company, arising out of or relating to this Agreement, the final judgment or award entered shall be entitled to have and recover from the Company the costs and expenses incurred in connection therewith, including its reasonable attorneys’ fees. Any rights to trial by jury with respect to any such action, proceeding or suit are hereby waived by Wainwright and the Company.

 

J.              Notices. All notices hereunder will be in writing and sent by certified mail, hand delivery, overnight delivery or e-mail, if sent to Wainwright, at the address set forth on the first page hereof, e-mail: notices@hcwco.com, Attention: Head of Investment Banking, and if sent to the Company, to the address set forth on the first page hereof, e-mail: afernando@transenterix.com, Attention: Chief Executive Officer. Notices sent by certified mail shall be deemed received five days thereafter, notices sent by hand delivery or overnight delivery shall be deemed received on the date of the relevant written record of receipt, notices sent by e-mail shall be deemed received as of the date and time they were sent.

 

 

 

 

K.            Conflicts. The Company acknowledges that Wainwright and its affiliates may have and may continue to have investment banking and other relationships with parties other than the Company pursuant to which Wainwright may acquire information of interest to the Company. Wainwright shall have no obligation to disclose such information to the Company or to use such information in connection with any contemplated transaction.

 

L.          Anti-Money Laundering. To help the United States government fight the funding of terrorism and money laundering, the federal laws of the United States require all financial institutions to obtain, verify and record information that identifies each person with whom they do business. This means Wainwright must ask the Company for certain identifying information, including a government-issued identification number (e.g., a U.S. taxpayer identification number) and such other information or documents that Wainwright considers appropriate to verify the Company’s identity, such as certified articles of incorporation, a government-issued business license, a partnership agreement or a trust instrument.

 

M.           Miscellaneous. The Company represents and warrants that it has all requisite power and authority to enter into and carry out the terms and provisions of this Agreement and the execution, delivery and performance of this Agreement does not breach or conflict with any agreement, document or instrument to which it is a party or bound. This Agreement shall not be modified or amended except in writing signed by Wainwright and the Company. This Agreement shall be binding upon and inure to the benefit of both Wainwright and the Company and their respective assigns, successors, and legal representatives. This Agreement constitutes the entire agreement of Wainwright and the Company with respect to the subject matter hereof and supersedes any prior agreements with respect to the subject matter hereof. If any provision of this Agreement is determined to be invalid or unenforceable in any respect, such determination will not affect such provision in any other respect, and the remainder of the Agreement shall remain in full force and effect. This Agreement may be executed in counterparts (including facsimile or electronic counterparts), each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

 

*********************

 

 

 

 

In acknowledgment that the foregoing correctly sets forth the understanding reached by Wainwright and the Company, please sign in the space provided below, whereupon this letter shall constitute a binding Agreement as of the date indicated above.

 

	 	 	 	Very truly yours,	 
	 	 	 	 	 	 
	 	 	 	H.C. WAINWRIGHT & CO., LLC	 
	 	 	 	 	 	 
	 	 	 	By:	/s/ Edward D. Silvera	 
	 	 	 	 	Name: Edward D. Silvera	 
	 	 	 	 	Title: Chief Operating Officer	 
	 	 	 	 	Date: 1/11/2021	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	Accepted and Agreed:	 	 	 	 
	 	 	 	 	 	 
	TransEnterix, Inc.	 	 	 	 
	 	 	 	 	 	 
	By:	/s/ Anthony Fernando	 	 	 	 
	 	Name: Anthony Fernando	 	 	 	 
	 	Title: President & CEOExhibit
10.1

 

 

Maven
Executive Bonus Plan

 

TheMaven,
Inc. (“Company”) has established this Executive Bonus Plan (“Plan”) to reward eligible employees
for their individual performance and their contribution to the successful performance of the Company. This document describes
the Plan’s features.

 

Plan
Year: The Plan operates on a calendar year basis, sometimes referred to as the Plan Year.

 

Eligibility:
Executive employees of the Company will participate as described in their individual employment agreements, or as specifically
designated by the Company, in its sole discretion, apart from an individual employment agreement.

 

Establishment
of the Bonus Targets

 

Target
Bonus Pool: The Company will establish a target bonus pool (“Target Bonus Pool”), which will be based on
the aggregate Target Bonuses of all eligible executive employees and adjusted to take into account the Company’s expected
cash position and EBITDA with respect to each Plan Year. At the same time, the Company will establish its Target EBITDA
and Target Cash Position for the Plan Year. For the purposes of the Plan, “EBITDA” is defined as earnings before
(i) any accrual for bonuses under the Plan (as well as accruals under the Company’s Annual Bonus Plan for non-executives)
and (ii) interest, taxes, depreciation, amortization, non-cash stock compensation expense and other non-cash or non-recurring
charges (all as determined by the Company). The amount allocated to the Target Bonus Pool will be at the sole discretion of the
Company.

 

Executive
Bonus and Targets: An eligible executive’s actual bonus (“Executive Actual Bonus Amount”) will be
derived from two factors: (1) the executive’s designated Target Bonus Amount, as defined in the executive’s employment
agreement and (2) the Company’s performance relative to its EBITDA target for the Plan Year and each calendar quarter of
the Plan Year. As described more fully below, following each calendar quarter an “advance” or “draw” against
an executive’s bonus will be paid if quarterly targets are achieved, measured on a cumulative basis. Schedule A illustrates
how these three considerations determine a bonus payment, including quarterly draws.

 

Calculation
of the Actual Bonus Pool 

 

Actual
Bonus Pool: Within 75 days of the end of each Plan Year, the Company’s management, in its sole discretion, will determine
the “Actual Bonus Pool.” The calculation will be based on the lesser of the amount determined by the EBITDA
calculation or the amount determined based on the Target Cash Position.

 

	 	1.	The
    determination of the Actual Bonus Pool related to the Company EBITDA performance will be calculated as follows:

 

	 	a.	If
    actual EBITDA performance falls below 75% of Target EBITDA for the Plan Year, the Actual Bonus Pool will be $0.

 

    	1

    	 

    

 

	 	b.	From
    75% achievement to 100% achievement of the Target EBITDA for the Plan Year, the Actual Bonus Pool will be 50% of the Target
    Bonus Pool at 75% achievement of the Target EBITDA, increased by 2% of the Target Bonus Pool for every 1% increase in the
    percentage achievement of Target EBITDA, up to 100% of the Target Bonus Pool at 100% achievement of the Target EBITDA.
	 	c.	Above
    100% achievement of the Target EBITDA, the Actual Bonus Pool will increase by 2% of the Target Bonus Pool for every 1% increase
    in the percentage achievement of Target EBITDA, up to a maximum 200% of the Target Bonus Pool.

 

	 	2.	In
    order to qualify to pay out the Actual Bonus Pool, the Company must have the Target Cash Balance on hand after giving effect
    to the payment of the bonus pool determined in 1 above.  If the actual cash balance is less than the Target Cash
    Balance, then the amount determined in 1 above will be reduced to an amount that would yield the Target Cash Balance.  If
    the cash balance before giving effect to the bonus pool calculated in 1 above is less than the Target Cash Balance,
    then the Actual Bonus Pool will be $0.
	 	3.	Management’s
    computations of the Actual Bonus Pool will be subject to the review and approval of the Compensation Committee of the Board
    of Directors.

 

Actual
Executive Bonus: Each executive’s Actual Bonus Amount will be determined based on that executive’s two considerations,
as outlined above. The same ratio of the actual vs. target bonus pool determined in section 1 of the Actual Bonus Pool calculation
above will be used for every executive’s EBITDA performance factor. The resulting percentage will be multiplied by the executive’s
Target Bonus Amount to yield the individual’s Actual Bonus Amount. The formula for determining the Actual Bonus Amount is
as follows:

 

Executive
Target Bonus Amount x EBITDA Achievement % = Executive Actual Bonus Amount

 

The
Company reserves the right to apply positive or negative discretion to the Actual Bonus Amount payment to any individual executive.

 

Payouts—Quarterly
and Final

 

Within
30 days following the close of each of calendar quarter of the Plan Year, the Company will pay out up to 100% of one-quarter’s
allocation (i.e., 25%) of the Executive Target Bonus based on the criteria specified below. These minimum payments will offset
payment of the final Executive Actual Bonus Amount, but the quarterly payments are not subject to recoupment, regardless of what
the final Executive Actual Bonus Amount calculation turns out to be following the close of the Plan Year.

 

The
quarterly draws on an executive’s potential annual bonus will be calculated as follows:

 

	 	●	If
    at the end of the quarter the Company achieves less than 50% of the EBITDA target for that quarter, then no quarterly draw
    on the annual bonus will be paid.

 

    	2

    	 

    

 

	 	●	If
    at the end of the quarter the Company achieves 50% or more of the EBITDA target for that quarter, then the executive will
    receive, as a quarterly draw against the annual bonus, a payment equal to 25% of the Executive Target Bonus multiplied by
    the percentage of the EBITDA target for the quarter.  For example, if for a quarter the Company’s EBIDTA through
    the end of the quarter is 75% of target, then the executive would be paid as a quarterly draw against the annual bonus 75%
    of 25% (or 18.75%) of the Executive Target Bonus.
	 	●	With
    respect to calculations for the second, third and fourth quarters of a Plan Year, the determination of the Company’s
    achievement of the EBITDA goals will be cumulative—i.e., based on a consideration of that achievement in that quarter
    and any prior quarters in the Plan year.
	 	●	In
    no event will a quarterly draw against an annual bonus exceed 25% (i.e., 100% of 25%) of the Executive Target Bonus.

 

At
the end of the Plan Year, a final payment will be made in a lump sum on March 31 (or the next regular payroll date) following
the close of the Plan Year. Unless required otherwise under applicable law, an executive must be actively employed on that date
(as well as on the date of any quarterly minimum payment), or on an approved leave of absence, in order to receive a bonus payment
under the Plan, unless the Company decides, in its sole discretion, to waive the requirement.

 

Payments
under the Plan will be considered taxable income to participants and will be subject to applicable tax withholding.

 

General
Terms and Conditions

 

Amendment
and Termination. The Company reserves the right to amend, modify or discontinue the Plan at any time for any reason in its
sole discretion.

 

Program
Administration. The Plan will be administered by the Company’s President, or the individual(s) to whom the President
may delegate responsibility, or in the case of the President, the Compensation Committee (“Administrator”). The Administrator
has the sole authority to interpret the Plan and to make or nullify any rules and procedures, as necessary, for proper administration.
Any determination by the Administrator will be final and binding on all employees.

 

No
Right to Employment. Nothing in the Plan will confer upon any person the right to continue in the employment of the Company
(or any affiliate) or affect the right of the Company (or any affiliate) to terminate the employment of any executive employee.
Unless otherwise set forth in a customized individual employment agreement, all executive employees shall remain at-will employees.

 

Unfunded
Benefits. The benefits under the Plan will constitute an unsecured liability that is payable, if and when due, by the Company
out of its general assets.

 

Code
Section 409A. The Plan is intended to satisfy the requirements of Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”), by either satisfying the short-term deferral exemption or by having a fixed payment date. The Company
reserves the right to amend the Plan as necessary, in its sole discretion, to comply with Code Section 409A.

 

    	3

    	 

    

 

SCHEDULE
A

 

THE
MAVEN EXECUTIVE BONUS PLAN

 

EXAMPLE:
Jane is an executive, whose individual employment agreement designates a Target Bonus Percentage of 50%. If Jane’s annual
salary is $300,000, her Executive Target Bonus Amount would be $150,000.

 

Assume
that for a given Plan Year, Jane’s individual performance and the Company’s actual EBITDA through each quarter is
as follows:

 

	 	●	Through
    the 1st quarter the Company achieves 60% of target EBITDA
	 	●	Through
    the 2nd quarter the Company achieves 75% of target EBITDA
	 	●	Through
    the 3rd quarter the Company achieves 105% of target EBITDA
	 	●	Through
    the 4th quarter the Company achieves 125% of target EBITDA

 

With
a Target Bonus Amount of $150,000, each quarter’s allocation would be $37,500 (i.e., 25% of $150,000), and based on the
achievements described above, Jane’s quarterly bonus draws would be as follows:

 

	 	●	1st
    quarter—the achievement percentage is 60%, so the quarterly bonus draw would be $22,500 (i.e., 60% of $37,500)
	 	●	2nd
    quarter—the achievement percentage is 75%, so the quarterly bonus draw would be $28,125 (i.e., 75% of $37,500)
	 	●	3rd
    quarter—the achievement percentage is 90%, so the quarterly bonus draw would be $33,750 (i.e., 90% of $37,500)
	 	●	4th
    quarter—the achievement percentage is 100%, so the quarterly bonus draw would be $37,500 (i.e., again, 100% of
    $37,500)

 

The
quarterly bonus draws will offset payment of the final Actual Bonus Amount, but are not subject to recoupment, regardless of what
the final Actual Bonus Amount calculation turns out to be following the close of the Plan Year.

 

Assume
also for this same Plan Year the Company hits 95% of its EBITDA target. To determine Jane’s Actual Bonus Amount, multiply
her Executive Bonus Target by 90% (the payout % for 95% achievement). The result would be $135,000. The amount of $135,000 is
then reduced by the amount of the quarterly draws that have been made during the year (in this case, an aggregate amount of $121,875),
resulting in a final payment of $13,125. Note that in the event the Actual Bonus Amount totaled less than the aggregate amount
of minimum quarterly payments that had been made, Jane would not be required to return any of the minimum quarterly payments.

 

    	4

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