Document:

Exhibit 10.1

 

SETTLEMENT AGREEMENT AND GENERAL RELEASE

 

PARTIES

 

This Settlement Agreement
and General Release (the “Agreement”) is made and entered into as of the 22nd day of - March, 2019 by
and between RedHawk Holdings Corp., on behalf of itself and its shareholders, officers, directors, employees, agents, attorneys,
affiliates, successors and assigns (collectively “RedHawk”); Beechwood Properties, LLC, on behalf of
itself and its members, managers, officers, directors, employees, agents, attorneys, affiliates, successors and assigns (collectively
“Beechwood”); G. Darcy Klug, on behalf of himself and his personal representatives, executors, administrators,
employees, agents, attorneys, heirs, devisees, beneficiaries, successors and assigns (collectively, “Mr. Klug”),
on the one hand, and Daniel J. Schreiber, on behalf of himself and his personal representatives, executors, administrators, employees,
agents, attorneys, heirs, devisees, beneficiaries, successors and assigns (collectively, “Mr. Schreiber”);
Andrea Schreiber on behalf of herself and her personal representatives, executors, administrators, employees, agents, attorneys,
heirs, devisees, beneficiaries, successors and assigns (collectively, “Ms. Schreiber”); and Mr. Schreiber
and Ms. Schreiber in their capacities as Co-Trustees of the Daniel J. Schreiber Living Trust – Dtd 2/08/95, on behalf of
themselves as Trustee, their personal representatives, executors, administrators, employees, agents, attorneys, heirs, devisees,
beneficiaries, successors and assigns, all trust beneficiaries (collectively, the “Schreiber Trust”)
on the other hand (all parties to this Agreement are collectively referred to as the “Parties”).

 

RECITALS

 

WHEREAS, the
Parties had a dispute related to the ownership of RedHawk stock by Mr. Schreiber and/or the Schreiber Trust; and

 

WHEREAS, on
January 31, 2017, RedHawk and Beechwood filed suit against Mr. Schreiber and the Schreiber Trust in the United States District
Court for the Eastern District of Louisiana under Civil Action No. 2:2017cv819-B(3) (the “Louisiana Lawsuit”);
and

 

WHEREAS, Mr.
Schreiber and the Schreiber Trust answered the Lawsuit and counter-claimed against RedHawk and Beechwood and made additional claims
against Mr. Klug in the Lawsuit; and

 

WHEREAS, on
April 24, 2017, Mr. Schreiber and the Schreiber Trust also filed suit against RedHawk, Mr. Klug and six other defendants in the
United States District Court for the Southern District of California under Civil Action No. 3:17-cv-00824-WQH-BLM which case was
dismissed without prejudice on September 26, 2017 (the “California Lawsuit”); and

 

WHEREAS, it
is now the intention of the parties hereto to resolve all issues between them in any way related to the Louisiana Lawsuit and the
California Lawsuit (collectively, the “Litigation”) or arising out of the subject matter of the Litigation;
and

 

    Page 1 of 11 

     

    

 

WHEREAS, the
Parties seek to resolve the claims that they have against each other arising out of the subject matter of the Lawsuits.

 

GENERAL RELEASE AND PROMISES

 

NOW, THEREFORE,
in consideration of the mutual promises, covenants and conditions herein, and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the undersigned parties expressly agree to the following terms and conditions
in full settlement, compromise, and satisfaction of the claims which were alleged or could have been alleged against one another
in the Litigation:

 

1.            Consideration to RedHawk From Mr. Schreiber and the Schreiber Trust. In consideration for the releases
granted herein and the monetary consideration described herein, Mr. Schreiber and the Schreiber Trust shall, concurrent with the
execution of this Agreement, transfer all RedHawk stock they presently own to RedHawk.

 

2.            Consideration to Mr. Schreiber and the Schreiber Trust From Redhawk. In consideration for the releases
granted herein and timely delivery of RedHawk stock pursuant to Section 1 hereof, and consistent with the provisions of the Settlement
Terms incorporated herein as Exhibit A, RedHawk shall deliver to the Schreiber Trust, concurrent with the execution of this Agreement:

 

		a.	A cash payment of Two Hundred Fifty Thousand and 00/100 Dollars (US$250,000.00) due upon signing
of this Agreement; and

 

		b.	A Non-interest bearing Promissory Note substantially in the form attached hereto as Exhibit
A. in the amount of Two Hundred Thousand and 00/100 Dollars (US$200,000.00), which shall be due and payable on or before
September 6, 2020 (“Note 1”); and

 

		c.	A Non-interest bearing Promissory Note substantially in the form attached hereto as Exhibit
B. in the amount of Two Hundred Thousand and 00/100 Dollars (US$200,000.00), which shall be due and payable on or before
September 5, 2021 (“Note 2”);

 

3.            Consideration to Mr. Schreiber and the Schreiber Trust from Beechwood and Mr. Klug. As additional consideration
for the foregoing, Beechwood and Mr. Klug shall secure RedHawk’s obligations to the Schreiber Trust by granting first-priority
security interests in the following assets:

 

		a.	1,000 shares of Mr. Klug’s Series B Preferred RedHawk Stock; and 1,473 shares of Mr. Klug’s
Series A Preferred RedHawk Stock as provided in the Stock and Membership Interest Security Agreement attached hereto as Exhibit
C, and

 

		b.	Beechwood’s interest in the Tower Hotels Fund 2014, LLC as provided in the Stock and Membership
Interest Security Agreement attached hereto as Exhibit C. Should Beechwood elect to sell its interest in the Tower
Hotels Fund 2014, it shall substitute a $150,000.00 Certificate of Deposit for the Tower Hotel membership interest.

 

    Page 2 of 11 

     

    

 

4.            Early Pay-off Option for RedHawk. As additional consideration for the foregoing, RedHawk shall have
the option to fully satisfy and retire both Note 1 and Note 2 for a single payment of Three Hundred Thousand Dollars (US$300,000.00)
provided such payment is made to the Schreiber Trust on or before September 4, 2019.

 

5.            Substitute Security.

 

		a.	If RedHawk applies for a name change, symbol change and/or reverse stock split authority that is
refused by FINRA based on the fact that Schreiber holds a security interest in the Series A shares and/or the Series B shares,
as shown by an actual letter from FINRA stating that the denial is based on the lien, security interest or Schreiber’s potential
ownership of the Series A and/or the Series B shares as a result of the security interest , then RedHawk has the right to substitute
collateral as described in the following provisions 5(b) through 5(e).

 

		b.	Schreiber will be given a perfectable security interest in RedHawk’s SANDD needle destruction
technology (U.S. Patent Number US2003/0010754 A1) (the “Needle Destruction Technology”). 

 

		c.	Schreiber will sign an agreed advance subordination agreement to a third party lender who uses the Needle Destruction Technology
for security for financing to the company.  That subordination agreement will be substantially in the form of Exhibit E.

 

		d.	If after the settlement a lender requires a subordination agreement in that lender’s own
form used in the ordinary course of that lender’s business and required by that lender in order to provide financing to the
company, Schreiber will agree to promptly sign that as well.

 

		e.	The penalty for failing to sign a legitimate request for subordination by a third-party lender
within ten (10) days after it has been provided to him in writing will be a forfeiture of any amounts RedHawk owes Schreiber at
the time. 

 

6.     
Acceleration. Note 1 and Note 2 will also be subject to these terms: 

 

		a.	If Klug sells any holdings in RedHawk at an aggregate price greater than $250,000 before Note 1
and Note 2 are paid off in their entirety, Note 1 and Note 2 will become immediately due and payable. 

 

		b.	If RedHawk defaults on any future Note payments, it will have a thirty day grace period within
which to cure the payment default; at the end of that grace period:

 

		i.	All amounts due on the Notes will be accelerated and become immediately due and payable

 

    Page 3 of 11 

     

    

 

		ii.	Interest will be added to all of the outstanding debt (including the accelerated amounts) in an
amount of 18% simple interest charged back to the date of this Settlement Agreement.

		iii.	The company will owe a $15,000 late payment fee for any payment which is paid after the due date
but during the grace period. This late payment fee shall apply individually to each Note 1 and Note 2.

 

		c.	While any amounts are due to Schreiber, the Company agrees that if it issues any shares of any
series or class for cash, it shall use 50% of all monetary proceeds received from the issuance to reduce the debts owed to Schreiber.

 

		d.	Schreiber will be entitled to actual reasonable attorneys’ fees or 10% of the amounts due,
whichever is greater, for any sums expended after expiration of the 30-day grace period in pursuing any payment not made timely.

 

7.            Release of Claims of RedHawk. In return for the foregoing, and subject to subject to the terms of this
Agreement, RedHawk, for and on behalf of itself and its shareholders, officers, directors, employees, agents, attorneys, affiliates,
successors and assigns does hereby irrevocably, unconditionally, fully, finally, and forever release and discharge (i) Mr. Schreiber
and all of his personal representatives, executors, administrators, employees, agents, attorneys, heirs, devisees, beneficiaries,
successors and assigns; (ii) Ms. Schreiber and all of her personal representatives, executors, administrators, employees, agents,
attorneys, heirs, devisees, beneficiaries, successors and assigns; and (iii) Mr. Schreiber and Ms. Schreiber in their capacities
as Co-Trustees of the Schreiber Trust of and from any and claims, judgments, actions, causes of action, suits, sums of money, demands,
rights, damages, injuries, costs, obligations, contracts, agreements, promises, liabilities, losses, debts, harms, expenses, fees
(including attorneys’ fees), and compensation of every kind or nature whatsoever, whether based on tort, contract, statute
or any other theory of recovery, in law or in equity, whether for compensatory or punitive damages, whether known or unknown and
whether foreseen or unforeseen, which RedHawk, has ever had or claimed to have, now has or claims to have, against Mr. Schreiber,
Ms. Schreiber and/or the Schreiber Trust, (whether through operation of law, assignment or subrogation) insofar as such claims
arise from the subject matter of the Lawsuits.

 

8.            Release of Claims of Beechwood In return for the foregoing, and subject to subject to the terms of
this Agreement, Beechwood, for and on behalf of itself and its members, managers, officers, directors, employees, agents, attorneys,
affiliates, successors and assigns does hereby irrevocably, unconditionally, fully, finally, and forever release and discharge
(i) Mr. Schreiber and all of his personal representatives, executors, administrators, employees, agents, attorneys, heirs, devisees,
beneficiaries, successors and assigns; (ii) Ms. Schreiber and all of her personal representatives, executors, administrators, employees,
agents, attorneys, heirs, devisees, beneficiaries, successors and assigns; and (iii) Mr. Schreiber and Ms. Schreiber in their capacities
as Co-Trustees of the Schreiber Trust of and from any and claims, judgments, actions, causes of action, suits, sums of money, demands,
rights, damages, injuries, costs, obligations, contracts, agreements, promises, liabilities, losses, debts, harms, expenses, fees
(including attorneys’ fees), and compensation of every kind or nature whatsoever, whether based on tort, contract, statute
or any other theory of recovery, in law or in equity, whether for compensatory or punitive damages, whether known or unknown and
whether foreseen or unforeseen, which RedHawk, has ever had or claimed to have, now has or claims to have, against Mr. Schreiber,
Ms. Schreiber and/or the Schreiber Trust, (whether through operation of law, assignment or subrogation) insofar as such claims
arise from the subject matter of the Lawsuits.

 

    Page 4 of 11 

     

    

 

9.            Release of Claims of Mr. Klug. In return for the foregoing, Mr. Klug, for and on behalf of himself
and his personal representatives, executors, administrators, employees, agents, attorneys, heirs, devisees, beneficiaries, successors
and assigns does hereby irrevocably, unconditionally, fully, finally, and forever release and discharge (i) Mr. Schreiber and all
of his personal representatives, executors, administrators, employees, agents, attorneys, heirs, devisees, beneficiaries, successors
and assigns; (ii) Ms. Schreiber and all of her personal representatives, executors, administrators, employees, agents, attorneys,
heirs, devisees, beneficiaries, successors and assigns; and (iii) Mr. Schreiber and Ms. Schreiber in their capacities as (iii)
Mr. Schreiber and Ms. Schreiber in their capacities as Co-Trustees of the Schreiber Trust of and from any and claims, judgments,
actions, causes of action, suits, sums of money, demands, rights, damages, injuries, costs, obligations, contracts, agreements,
promises, liabilities, losses, debts, harms, expenses, fees (including attorneys’ fees), and compensation of every kind or
nature whatsoever, whether based on tort, contract, statute or any other theory of recovery, in law or in equity, whether for compensatory
or punitive damages, whether known or unknown and whether foreseen or unforeseen, which RedHawk, has ever had or claimed to have,
now has or claims to have, against Mr. Schreiber, Ms. Schreiber and/or the Schreiber Trust, (whether through operation of law,
assignment or subrogation) insofar as such claims arise from the subject matter of the Lawsuits.

 

10.          Release of Claims of Mr. Schreiber. In return for the foregoing, Mr. Schreiber, for and on behalf of
himself and his personal representatives, executors, administrators, employees, agents, attorneys, heirs, devisees, beneficiaries,
successors and assigns does hereby irrevocably, unconditionally, fully, finally, and forever release and discharge (i) RedHawk
and all of its past, present and future members, managers, officers, directors, employees, agents, attorneys, affiliates, successors
and assigns and all other persons, partners, entities, associations, partnerships and corporations with whom any of the former
have been, are now or may hereafter be affiliated; (ii) Beechwood and all of its past, present and future members, managers, officers,
directors, employees, agents, attorneys, affiliates, successors and assigns and all other persons, partners, entities, associations,
partnerships and corporations with whom any of the former have been, are now or may hereafter be affiliated; and (iii) Mr. Klug
and all of his personal representatives, executors, administrators, employees, agents, attorneys, heirs, devisees, beneficiaries,
successors and assigns of and from any and claims, judgments, actions, causes of action, suits, sums of money, demands, rights,
damages, injuries, costs, obligations, contracts, agreements, promises, liabilities, losses, debts, harms, expenses, fees (including
attorneys’ fees), and compensation of every kind or nature whatsoever, whether based on tort, contract, statute or any other
theory of recovery, in law or in equity, whether for compensatory or punitive damages, whether known or unknown and whether foreseen
or unforeseen, which South Oil, has ever had or claimed to have, now has or claims to have, against RedHawk, Beechwood and/or Mr.
Klug, (whether through operation of law, assignment or subrogation) insofar as such claims arise from the subject matter of the
Lawsuits. .

 

    Page 5 of 11 

     

    

 

11.          Release of Claims of Ms. Schreiber. In return for the foregoing, Ms. Schreiber, for and on behalf of
herself and her personal representatives, executors, administrators, employees, agents, attorneys, heirs, devisees, beneficiaries,
successors and assigns does hereby irrevocably, unconditionally, fully, finally, and forever release and discharge (i) RedHawk
and all of its past, present and future members, managers, officers, directors, employees, agents, attorneys, affiliates, successors
and assigns and all other persons, partners, entities, associations, partnerships and corporations with whom any of the former
have been, are now or may hereafter be affiliated; (ii) Beechwood and all of its past, present and future members, managers, officers,
directors, employees, agents, attorneys, affiliates, successors and assigns and all other persons, partners, entities, associations,
partnerships and corporations with whom any of the former have been, are now or may hereafter be affiliated; and (iii) Mr. Klug
and all of his personal representatives, executors, administrators, employees, agents, attorneys, heirs, devisees, beneficiaries,
successors and assigns of and from any and claims, judgments, actions, causes of action, suits, sums of money, demands, rights,
damages, injuries, costs, obligations, contracts, agreements, promises, liabilities, losses, debts, harms, expenses, fees (including
attorneys’ fees), and compensation of every kind or nature whatsoever, whether based on tort, contract, statute or any other
theory of recovery, in law or in equity, whether for compensatory or punitive damages, whether known or unknown and whether foreseen
or unforeseen, which South Oil, has ever had or claimed to have, now has or claims to have, against RedHawk, Beechwood and/or Mr.
Klug, (whether through operation of law, assignment or subrogation) specifically including, but not limited to, those in any way
connected with or asserted in the Litigation from the beginning of the world to the day of the date of this Agreement. RedHawk,
Beechwood and/or Mr. Klug shall be entitled to enforce their rights and remedies pursuant to this Agreement.

 

12.          Release of Claims of the Schreiber Trust. In return for the foregoing, Mr. Schreiber and Ms. Schreiber
in their capacities as Co-Trustees of the Daniel J. Schreiber Living Trust – Dtd 2/08/95, together with their personal representatives,
executors, administrators, employees, agents, attorneys, heirs, devisees, beneficiaries, successors and assigns, all trust beneficiaries
do hereby irrevocably, unconditionally, fully, finally, and forever release and discharge (i) RedHawk and all of its past, present
and future members, managers, officers, directors, employees, agents, attorneys, affiliates, successors and assigns and all other
persons, partners, entities, associations, partnerships and corporations with whom any of the former have been, are now or may
hereafter be affiliated; (ii) Beechwood and all of its past, present and future members, managers, officers, directors, employees,
agents, attorneys, affiliates, successors and assigns and all other persons, partners, entities, associations, partnerships and
corporations with whom any of the former have been, are now or may hereafter be affiliated; and (iii) Mr. Klug and all of his personal
representatives, executors, administrators, employees, agents, attorneys, heirs, devisees, beneficiaries, successors and assigns
of and from any and claims, judgments, actions, causes of action, suits, sums of money, demands, rights, damages, injuries, costs,
obligations, contracts, agreements, promises, liabilities, losses, debts, harms, expenses, fees (including attorneys’ fees),
and compensation of every kind or nature whatsoever, whether based on tort, contract, statute or any other theory of recovery,
in law or in equity, whether for compensatory or punitive damages, whether known or unknown and whether foreseen or unforeseen,
which South Oil, has ever had or claimed to have, now has or claims to have, against RedHawk, Beechwood and/or Mr. Klug, (whether
through operation of law, assignment or subrogation) insofar as such claims arise from the subject matter of the Lawsuits.

 

13.          Motions to Dismiss. All Parties shall direct their counsel to execute the Motions to Dismiss with Prejudice attached as Exhibits D and E.

 

    Page 6 of 11 

     

    

 

OTHER REPRESENTATIONS
AND WARRANTIES

 

14.          Entire Agreement. This Agreement contains the entire, complete and integrated statement of each and
every term and provision agreed to by and among the parties. It contains the entire agreement and understanding between the parties
relating to the subject matter contained herein, superseding any prior oral or written agreements pertaining to said subject matter.
No other promises, representations or other inducements have been made to any party hereto in exchange for this Agreement.

 

15.          Neutral Interpretation. In the event any dispute arises among the parties with regard to the interpretation
of any term of this Agreement, all of the parties shall be considered collectively to be the drafting party and any rule of construction
to the effect that ambiguities are to be resolved against the drafting party shall be inapplicable.

 

16.          Modification. No provision of this Agreement may be waived, altered, amended, or modified in any respect
or particular whatsoever except by written agreement duly executed by each of the parties to this Agreement.

 

17.          Severability. If any provision of this Agreement is held to be invalid, void or unenforceable, the
balance of its provisions will, nevertheless, remain in full force and effect and will in no way be affected, impaired or invalidated.

 

18.          Full Authority. The parties hereto represent that they have full authority to enter into this Agreement,
and the individual parties are competent and of the age majority.

 

19.          Terms Read and Understood. Each party hereto represents that he, she, or it has carefully read and
fully understands the terms, conditions, meaning and intent of this Agreement, and that each party has had an opportunity to discuss
the terms, conditions and provisions with legal counsel prior to the execution hereof. Each party specifically hereby acknowledges
receipt of a copy of this Agreement before signing it and understands that each and every provision of this Agreement is contractual,
legally binding and not mere recitals.

 

20.          No Duress. Each party acknowledges that it is executing this Agreement after having received from independent
legal counsel of its own choosing, legal advice as to its rights hereunder and the legal effect thereof, to the extent each party
deemed appropriate. Each party agrees to sign this Agreement as its own voluntary act and deed, and represents that such execution
was not the result of any duress, coercion or undue influence upon it.

 

21.          No Representations. Each of the parties hereto represents and warrants that no representations about
the nature and extent of the claims or about any damages, loss or injury or about the nature and extent of the legal liability
or financial responsibility, if any, made by any opposing party nor any representations about income tax consequences, have induced
them to enter into this Agreement. In determining and agreeing to the terms and conditions provided in this Agreement, each of
the parties hereto has taken into consideration not only all known facts, damages and losses, but also the fact that consequences
not now known may result from occurrences or events that may have given rise to the claims released in this Agreement. The parties
further recognize that the facts relating to the underlying claims released by this Agreement may turn out to be different from
the facts now known or believed to be true by each of the parties. Each of the parties expressly assumes the risk of the facts
turning out to be different, and agrees that this Agreement shall not be subject to termination by reason of any different facts.

 

    Page 7 of 11 

     

    

 

22.          Successors and Assigns. The provisions of this Agreement shall be binding and inure to the benefit
of each of the parties and their respective heirs, executors, administrators, agents, representatives, successors and assigns.

 

23.          Attorneys’ Fees and Costs. Each of the parties shall bear its own attorneys’ fees, expenses
and costs incurred in connection with this Agreement, provided however, that in the event of litigation, arbitration or other proceeding
is brought concerning the interpretation or enforcement of this Agreement, or because of an alleged dispute, default, misrepresentation
or breach in connection with any of the provisions of this Agreement, the successful or prevailing party shall be entitled to recover
reasonable attorneys’ fees, expenses and costs actually incurred in connection therewith, in addition to any other relief
to which it may be entitled.

 

24.          Governing Law. This Agreement, as well as the parties’ rights and obligations hereunder, shall
be in all respects interpreted, enforced and governed by and under the laws of the State of Louisiana.

 

25.          Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same instrument.

 

26.          Headings. The headings of this Agreement are for convenience or reference only, and shall not limit,
expand, modify or otherwise affect the meaning hereof.

 

27.          Notice. All notices to be sent or information to be provided under this Settlement Agreement shall
be sent to the following:

 

		a.	To RedHawk, Beechwood and Mr. Klug –

 

Samuel E. Masur

Email: smasur@gamb.law

Gordon, Arata, Montgomery, Barnett,
McCollam, Duplantis & Eagan, LLC

400 East Kaliste Saloom Road, Suite
4200

Lafayette, Louisiana 70508

Phone: (337) 237-0132

Fax: (337) 237-3451

 

    Page 8 of 11 

     

    

 

		b.	To Mr. Schreiber, Ms. Schreiber and the Schreiber Trust -

 

Paul Matthew Jones, T.A. (#19641)

Email: mjones@liskow.com

LISKOW & LEWIS

822 Harding Street

Post Office Box 52008

Lafayette, Louisiana 70505-2008

Telephone: (337) 232-7424

Facsimile: (337) 267-2399

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement consisting of eleven (11) pages, including the signature pages but excluding referenced
exhibits, as of the date and year first above written.

 

[SIGNATURE PAGES FOLLOW]

 

    Page 9 of 11 

     

    

 

	 	 	 	 
	 	RedHawk
    Holdings Corp.
	 	 	 	 
	 	By:	/s/
    G. Darcy Klug
	 	Name:	G.
    Darcy Klug

STATE
OF LOUISIANA 

PARISH
OF LAFAYETTE

 

        I
certify that the following person(s) personally appeared before me this day, each acknowledging to me that he or she signed the
foregoing document: G. Darcy Klug  

	 	 	 	 	 
	Date:	March
    19, 2019	 	/s/
    Samuel E Masur
	 	 	 	Notary
    Public	 
	 	 	 	 	 
	 	 	 	(Printed
    Name of Notary)
	 	 	 	My Commission Expires:	 	 

	 	 	 	 
	 	Beechwood
    Properties, LLC
	 	 	 	 
	 	By:	 	/s/
    G. Darcy Klug
	 	Name:	G.
    Darcy Klug

STATE
OF LOUISIANA 

PARISH
OF LAFAYETTE

 

I
certify that the following person(s) personally appeared before me this day, each acknowledging to me that he or she signed the
foregoing document: G. Darcy Klug 

 

	 	 	 	 	 
	Date:	March
    19, 2019	 	/s/
    Samuel E Masur
	 	 	 	Notary
    Public	 
	 	 	 	 	 
	 	 	 	(Printed
    Name of Notary)
	 	 	 	My Commission Expires:	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

	 	 	 
	 	G. Darcy
    Klug
	 	 	 
	 	By:	/s/
    G. Darcy Klug

STATE
OF LOUISIANA 

PARISH
OF LAFAYETTE

 

I
certify that the following person(s) personally appeared before me this day, each acknowledging to me that he or she signed the
foregoing document: G. Darcy Klug 

	 	 	 	 	 
	Date:	March
    19, 2019	 	/s/
    Samuel E Masur
	 	 	 	Notary
    Public	 
	 	 	 	 	 
	 	 	 	(Printed
    Name of Notary)
	 	 	 	My Commission Expires:	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

    Page 10 of 11 

     

    

 

	 	 	 
	 	Daniel
    J. Schreiber
	 	 	 
	 	/s/
    Daniel J. Schreiber

 

STATE
OF NEW YORK

COUNTY
OF NEW YORK

 

        I
certify that the following person(s) personally appeared before me this day, each acknowledging to me that he or she signed the
foregoing document: Settlement Agreement and General Release 

	 	 	 	 	 
	Date:	3/19/19	 	/s/
    Paul A. Rachmuth
	 	 	 	Notary
    Public	 
	 	 	 	/s/ Paul
    A. Rachmuth	 
	 	 	 	(Printed
    Name of Notary)
	 	 	 	My Commission Expires:	7/8/19

	 	 	 
	 	Andrea
    Schreiber
	 	 	 
	 	By:	/s/
    Andrea Schreiber
	 	Name:	Andrea Schreiber

STATE
OF NEW YORK 

COUNTY
OF NEW YORK

 

I
certify that the following person(s) personally appeared before me this day, each acknowledging to me that he or she signed the
foregoing document: Settlement Agreement and General Release  

	 	 	 	 	 
	Date:	3/19/19	 	/s/
    Paul A. Rachmuth
	 	 	 	Notary
    Public	 
	 	 	 	 	 
	 	 	 	(Printed
    Name of Notary)
	 	 	 	My Commission Expires:	7/8/19
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

	 	 	 	 
	 	The
    Daniel J. Schreiber Living Trust - Dtd 2/08/09
	 	 	 	 
	Dated: ____________,
    2019.	 	By:	/s/
    Daniel J. Schreiber
	 	 	Daniel
    J. Schreiber, Trustee,
	 	By:	/s/
    Andrea Schreiber
	 	 	Andrea
    Schreiber, Trustee,

STATE
OF NEW YORK 

PARISH
OF NEW YORK

 

I
certify that the following person(s) personally appeared before me this day, each acknowledging to me that he or she signed the
foregoing document: ________________

	 	 	 	 	 
	Date:	3/19/19	 	/s/
    Paul A. Rachmuth
	 	 	 	Notary
    Public	 
	 	 	 	/s/ Paul
    A. Rachmuth	 
	 	 	 	(Printed
    Name of Notary)
	 	 	 	My Commission Expires:	7/8/19
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

    Page 11 of 11scvl-ex101_6.htm

Exhibit 10.1

SHOE CARNIVAL, INC.

2017 EQUITY INCENTIVE PLAN

 

Performance Stock Unit Award Agreement

(Executive Officers)

 

Shoe Carnival, Inc. (the “Company”), pursuant to its 2017 Equity Incentive Plan (the “Plan”), hereby grants an award of Performance Stock Units to you, the Participant named below.  The terms and conditions of this Award are set forth in this Performance Stock Unit Award Agreement (the “Agreement”), consisting of this cover page and the Terms and Conditions on the following pages and the attached Exhibit A, and in the Plan document, a copy of which has been provided or otherwise made available to you and is incorporated by reference and made a part of this Agreement.  Any capitalized term that is used but not defined in this Agreement shall have the meaning set forth in the Plan as it currently exists or as it is amended in the future.

 

	
	
Name of Participant: [_______________________]

	
Number of Performance Stock Units:
Target Number of Performance Stock UnitsMaximum Number of Performance Stock Units[                 ][                 ]
 

	
Grant Date:  [                      ]

	
Performance Period:  The fiscal year ending [                             ] (“fiscal 20[       ]”)

	
Vesting Schedule:  The number of Units determined in accordance with Exhibit A to have been earned as of the end of the Performance Period will vest* one-half on March 31, 20[      ] and one-half on March 31, 20[       ]

*Assumes you remain a Service Provider continuously from the Grant Date to the vesting date

	
Performance Goals:  See Exhibit A 

 

By signing below or otherwise evidencing your acceptance of this Agreement in a manner approved by the Company, you agree to all of the terms and conditions contained in this Agreement and in the Plan document.  You acknowledge that you have received and reviewed these documents.

 

PARTICIPANT:SHOE CARNIVAL, INC.

 

 

By:______________________________________

[Name]Name:  

Title:

 

 

Shoe Carnival, Inc.

2017 Equity Incentive Plan

Performance Stock Unit Award Agreement

 

Terms and Conditions

 

1.Award of Performance Stock Units.  The Company hereby grants to you, as of the Grant Date specified on the cover page of this Agreement (the “Grant Date”) and subject to the terms and conditions in this Agreement and the Plan, an Award of Performance Stock Units (the “Units”) in an amount initially equal to the Target Number of Performance Stock Units specified on the cover page of this Agreement.  The number of Units that may actually be earned and become eligible to vest pursuant to this Award can be between 25% and 125% of the Target Number of Performance Stock Units, but may not exceed the Maximum Number of Performance Stock Units specified on the cover page of this Agreement.  Each Unit that is earned as a result of the performance goals specified in Exhibit A to this Agreement having been satisfied and which thereafter vests represents the right to receive one Share of the Company’s Stock.  Prior to their settlement or forfeiture in accordance with the terms of this Agreement, the Units granted to you will be credited to an account in your name maintained by the Company.  This account shall be unfunded and maintained for book-keeping purposes only, with the Units simply representing an unfunded and unsecured contingent obligation of the Company.  

 

2.Restrictions Applicable to Units.  Neither this Award nor the Units subject to this Award may be sold, assigned, transferred, exchanged or encumbered, voluntarily or involuntarily, other than a transfer upon your death in accordance with your will, by the laws of descent and distribution or pursuant to a beneficiary designation submitted in accordance with Section 6(d) of the Plan.  Following any such transfer, this Award shall continue to be subject to the same terms and conditions that were applicable to this Award immediately prior to its transfer.  Any attempted transfer in violation of this Section 2 shall be void and without effect.  The Units and your right to receive Shares in settlement of any Units under this Agreement shall be subject to forfeiture except to the extent the Units have been earned and thereafter vest as provided in Section 3 and Section 5 of this Agreement.

 

3.Vesting and Forfeiture of Units.  As soon as practicable following the approval of the Company’s audited results for fiscal 20[    ] by the Audit Committee of the Company’s Board of Directors, the Committee shall determine whether and the extent to which the performance goals set forth in Exhibit A have been satisfied and the number of Units, if any, that you have earned.  The date on which the Committee makes its determination is hereinafter referred to as the “Determination Date.”  As permitted by Section 6(e)(ii) and Section 12 of the Plan, the Units shall vest at the earliest of the following times and to the degree specified (and not as specified in such sections of the Plan):  

 

(a)Scheduled Vesting.  One-half of any Units that have been earned, as determined by the Committee in accordance with Exhibit A, will vest on March 31, 20[     ] (the “Initial Vesting Date”), and the remaining one-half of such Units will vest on March 31, 20[     ] (the “Final Vesting Date”), so long as your Service has been continuous from the Grant Date through such vesting date. For purposes of this Agreement, the “Vesting Period” is the period from the Grant Date through the Final Vesting Date.

 

(b)Death or Disability.  If your Service terminates prior to the Final Vesting Date due to your death or Disability, the Ratable Portion of the Units will vest and will not be forfeited, which Ratable Portion will be determined on the later of the Determination Date or the date of your death 

 

 

or Disability, based on the Company’s Actual EPS (as defined in Exhibit A) at the end of fiscal 20[     ] and the portion of the Vesting Period that had elapsed since the Grant Date on the date of such death or Disability; all of the non-Ratable Portion of the Units will automatically be forfeited.  For purpose of this Award, “Ratable Portion” shall be equal to (x) the number of Units multiplied by the portion of the Vesting Period that had elapsed since the Grant Date on the date of such death or Disability, measured on the basis of full months, reduced by (y) the number of Units that had previously vested as of the date of such death or Disability.

 

(c)Change in Control.  If a Change in Control occurs while you continue to be a Service Provider and prior to the Final Vesting Date, the following provisions shall apply:

 

	
 
	
(i)
	
If the Change in Control occurs prior to the Determination Date, the Company’s fully diluted earnings per share as of the effective time of the Change in Control, with the threshold, target and maximum levels of fully diluted earnings per share appropriately adjusted to reflect the portion of fiscal 20[     ] that has elapsed as of the effective time of the Change in Control, will be used to determine the number of Units that will be converted to time-vesting Units (the “Converted Award”).

	
 
	
(A)
	
If and to the extent that this Converted Award is not continued, assumed or replaced in connection with the Change in Control, the restrictions on all Units underlying the Converted Award will expire and all such Units will become fully vested.

	
 
	
(B)
	
If and to the extent that this Converted Award is continued, assumed or replaced in connection with the Change in Control (with such adjustments as may be required or permitted by the Plan), this Converted Award or replacement therefor will remain outstanding and will vest on the Initial Vesting Date and the Final Vesting Date in accordance with subsection (a) above, subject to your Service continuing through such date; provided, however, that if within 24 months after the Change in Control your Service terminates due to a termination by the Company without Cause or by you for Good Reason (each as defined in your [Amended and Restated] Employment and Noncompetition Agreement dated [                          ]), the restrictions on all Units underlying the Converted Award will expire and all such Units will become fully vested. 

	
 
	
(ii)
	
If the Change in Control occurs after the Determination Date but prior to the Final Vesting Date, any Units that remain unvested at the time of such Change in Control will be treated the same as a Converted Award, as described in (i)(A) and (B) above.

	
 
	
(iii)
	
For purposes of this Section 3(c), this Award will be considered assumed or replaced under the circumstances specified in Section 12(b)(i) of the Plan.

Notwithstanding the vesting and subsequent settlement of this Award, it shall remain subject to the provisions of Section 17 of the Plan.

 

 

 

4.Effect of Termination of Service.  Except as otherwise provided in accordance with Section 3(b) or 3(c) of this Agreement, if you cease to be a Service Provider, you will immediately forfeit all unvested Units.  

 

5.Settlement of Units.  As soon as practicable after any date on which Units vest (but no later than the 15th day of the third calendar month following such vesting date), the Company will cause to be issued and delivered to you (or to your personal representative or your designated beneficiary or estate in the event of your death, as applicable), one Share in payment and settlement of each vested Unit.  Delivery of the Shares shall be effected by the issuance of a stock certificate to you, by an appropriate entry in the stock register maintained by the Company’s transfer agent with a notice of issuance provided to you, or by the electronic delivery of the Shares to a brokerage account you designate, and shall be subject to the tax withholding provisions of Section 8 of this Agreement and compliance with all applicable legal requirements as provided in Section 18(c) of the Plan, and shall be in complete satisfaction and settlement of such vested Units. The Company will pay any original issue or transfer taxes with respect to the issue and transfer of Shares to you pursuant to this Agreement, and all fees and expenses incurred by it in connection therewith. 

 

6.Dividend Equivalents. On any date that a number of earned Units has been determined to have vested in accordance with the terms of this Agreement, a total dividend equivalent amount will be determined by multiplying the number of Units determined to have vested on such date by the per share amount of each cash dividend paid on the Company’s Stock with a record date and payment date occurring between the Grant Date and the applicable vesting date, and adding those products together.  The total dividend equivalent amount, net of any amount required to satisfy withholding tax obligations as provided in Section 8 of this Agreement, will be paid to you (or your permitted transferee) in cash at the time the vested Units are settled as provided in Section 5 of this Agreement.  

7.No Right to Continued Service or Future Awards. This Agreement awards Units to you, but does not impose any obligation on the Company to make any future grants or issue any future awards to you or otherwise continue your participation under the Plan. This Agreement does not give you a right to continued Service with the Company or any Affiliate, and the Company or any such Affiliate may terminate your Service at any time without regard to the effect it may have upon you under this Agreement.

8.Tax Consequences and Withholding.  As a condition precedent to the delivery of Shares in settlement of vested Units, you are required to make arrangements acceptable to the Company for payment of any federal, state, local or foreign withholding taxes that may be due as a result of the delivery of the Shares. The Company will retain a portion of the Shares that would otherwise be delivered to you in settlement of vested Units, which retained Shares shall have a Fair Market Value on the date the taxes are required to be withheld equal to the amount of taxes required to be withheld, unless you provide notice to the Company prior to the vesting date of the Units that you desire to pay cash or direct the Company (or any Affiliate) to withhold from payroll or other amounts payable to you any sums required to satisfy such withholding tax obligations, and otherwise agree to satisfy such obligations in accordance with the provisions of Section 14 of the Plan. Delivery of Shares in settlement of vested Units is subject to the satisfaction of applicable withholding tax obligations.

9.No Shareholder Rights.  The Units subject to this Award do not entitle you to any rights of a holder of the Company’s Stock.  You will not have any of the rights of a shareholder of the Company in connection with any Units granted or earned pursuant to this Agreement unless and until Shares are issued to you in settlement of the earned and vested Units as provided in Section 5 of this Agreement.  

 

 

10.Governing Plan Document.  This Agreement and the Award are subject to all the provisions of the Plan, including the confidentiality, non-solicitation, forfeiture and recovery provisions set forth in Section 17 of the Plan, and to all interpretations, rules and regulations which may, from time to time, be adopted and promulgated by the Board or the Committee pursuant to the Plan.  All interpretations of the Committee and all related decisions or resolutions of the Board or the Committee shall be final and binding on the Company and you. If there is any conflict between the provisions of this Agreement and the Plan, the provisions of the Plan will govern, except to the extent that the terms and conditions of the Plan are supplemented or modified by this Agreement, as authorized by the Plan.

 

11.Choice of Law.  This Agreement, the parties’ performance hereunder, and the relationship between them shall be governed by, construed, and enforced in accordance with the laws of the State of Indiana, without giving effect to the choice of law principles thereof.  

 

12.Severability.  The provisions of this Agreement shall be severable and if any provision of this Agreement is found by any court to be unenforceable, in whole or in part, the remainder of this Agreement shall nevertheless be enforceable and binding on the parties.  You also agree that any trier of fact may modify any invalid, overbroad or unenforceable provision of this Agreement so that such provision, as modified, is valid and enforceable under applicable law.

 

13.Binding Effect.  This Agreement will be binding in all respects on your heirs, representatives, successors and assigns, and on the successors and assigns of the Company.

 

 14.Section 409A of the Code.  The award of Units as provided in this Agreement and any issuance of Shares or payment pursuant to this Agreement are intended to be exempt from Section 409A of the Code under the short-term deferral exception specified in Treas. Reg. § 1.409A-l(b)(4).

 

15.Electronic Delivery and Acceptance.  The Company may deliver any documents related to this Performance Stock Unit Award by electronic means and request your acceptance of this Agreement by electronic means.  You hereby consent to receive all applicable documentation by electronic delivery and to participate in the Plan through an on-line (and/or voice activated) system established and maintained by the Company or the Company’s third-party stock plan administrator.

 

 

 

 

 
EXHIBIT A
 

Performance Goal:

	
 
	
Threshold
	
Target
	
Maximum

	
Earnings Per Share (Fiscal 20[     ])
	
$[         ]
	
$[           ]
	
$[         ]

	
Number of Units Earned
	
[                ]
	
[                ]
	
[                 ]

 

 

If the Company’s fully diluted earnings per share for fiscal 20[     ] (“Actual EPS”) equals or exceeds the maximum earnings per share set forth above, the maximum number of Units will be earned.  If the Company’s Actual EPS is less than the threshold earnings per share set forth above, all of the Units will be forfeited on the Determination Date. If the Company’s Actual EPS falls between the threshold, target and maximum levels specified in the table above, the number of Units that will be earned, and the number of Units that will be forfeited on the Determination Date, will be interpolated.

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