Document:

EdgarFiling

Exhibit 10.1

 

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (the “Agreement”)
is entered into effective as of June 30, 2021 (the “Effective Date”) between BJ'S RESTAURANTS, INC., a California corporation
(the “Company”) and GREGORY LEVIN (the “Executive”).

 

1.        Term.
Subject to the termination provisions of Section 7 below, the term of this Agreement (“Term”) shall commence on September
1, 2021 (the "Commencement Date") and end on December 31, 2026 (“Termination Date”). This Agreement
shall automatically be extended for additional one year terms beyond the Termination Date (the “Extended Termination Date”)
or the then current Extended Termination Date unless at least six (6) months prior to the Termination Date or the then current Extended
Termination Date, Executive or the Company shall have given written notice that he or it does not wish to extend the Agreement (such six
(6) month period prior to the Termination Date being referred to herein as the “Transition Period” to the extent it
occurs following notice of non-extension). Notwithstanding anything to the contrary contained in this Agreement, notice of the Company’s
intention not to extend the Agreement shall not be deemed to be a termination of Executive without Cause.

 

2.        Employment.
During the Term (and any extension thereof), Executive shall be employed as and hold the title of Chief Executive Officer ("CEO")
and will also serve as President, unless and until the Board of Directors of the Company (the "Board") elects to appoint
a different President who reports solely to the CEO, other than reports to the Board at its meetings in the ordinary course. Executive,
for so long as he serves as President, will have the full range of executive duties and responsibilities that are customary for public
company President positions and, in his capacity as CEO, will have the full range of executive duties and responsibilities that are customary
for public company CEO positions. Executive shall have such other powers and duties as may be from time to time reasonably assigned to
him by the Board. Executive will also serve, at the request of the Board and for no additional compensation, as a director and/or officer
of one or more of the Company's subsidiaries. Executive shall devote substantially all of his time, attention and energies to the business
and affairs of the Company. Subject at all times to any fiduciary duties of the Board to the Company and its shareholders, during the
Term the Company and the Board shall take all reasonable action within their control to cause Executive at all times while he is serving
as CEO of the Company (i) to be nominated for election to the Board at each annual meeting of Shareholders (commencing with the 2022 annual
meeting) and, if elected, (ii) to remain on the Board. The Company and the Board shall take all reasonable actions within their control
to cause Executive to be appointed to the Board promptly following the Commencement Date and thereafter through the Term of the Agreement.

 

3.        Salary.
As of the Commencement Date, the Company shall pay Executive salary at an annual rate of $750,000.00 less applicable deductions (the “Base
Salary”) in accordance with the Company’s normal payroll practices. Such Base Salary will be reviewed by the Compensation
Committee of the Board at least annually and will be increased to a minimum of $800,000.00 effective January 1, 2023 and to a minimum
of $850,000.00 effective January 1, 2024 but may not be decreased below such levels without consent of Executive.

 

4.        Annual
Bonus Opportunity. Executive shall be eligible for an annual cash bonus (“Bonus”) opportunity for each fiscal year
of the Term which shall be targeted at no less than 90% of the Base Salary. The actual amount of any annual Bonus shall be determined
by the Board of Directors based upon performance criteria that will be established by the Compensation Committee of the Board after consultation
with Executive each year. The Bonus, if any, shall be paid in full as soon as the relevant information is reasonably available but in
no event later than 74 days following the end of the Company's fiscal year in which earned.

 

5.       Equity
Incentive Plan Participation; Supplemental and 2022 Annual Awards.

 

(a)Executive
shall be eligible to participate in and receive grants of equity awards ("Awards") under the Company's Equity Incentive
Plan (as it may be amended from time) or any successor equity incentive plan maintained by the Company for the benefit of its employees
or officers (collectively, the "Plan"). Except as otherwise specifically provided in this Section 5, any Awards granted
under the Plan shall be in such form and in such amounts and on such terms as may be approved by the Board and/or the Compensation Committee
of the Board. Vesting or payment of Awards may be subject to performance criteria established by the Board or the Compensation Committee
of the Board. 

 

     

     

    

(b)Stock
options to purchase shares of Company common stock (“Options”) and restricted stock units representing a right to receive
shares of Company common stock or the value of such shares in cash on the vesting date (“RSUs”) shall be evidenced
by the Company’s standard forms of award agreements (related Notice of Grant and Grant Summary) consistent with the provisions of
this Agreement and the Plan (each, an “Award Agreement” and collectively, the “Award Agreements”).
Options shall be exercisable by Executive at any time after vesting and shall have an outside expiration date that is on the tenth yearly
anniversary of the grant date unless the Compensation Committee determines that an earlier expiration date is appropriate. The Award Agreement
for the Options shall permit the purchase price for any shares of Company common stock subject to the Options to be paid by any means
permitted under the Plan, as well as on a “net exercise” basis in accordance with the Company's current net exercise program
for optionholders. 

 

(c) The Company
agrees that in January 2022 (concurrently with the Company's normal annual grants to other employees under the Plan and so long as Executive
is employed by the Company on the grant date) Executive shall receive a long-term equity incentive grant under the Plan (the "2022
Annual Grant") having an aggregate grant date fair market value of $1,500,000 and consisting of a combination of one or more
of non-qualified Options (as defined below), RSU's (as defined below) and performance share units, with the vesting of, and allocation
among, such Award types being determined by the Board consistent with the vesting and allocation of Awards to other senior executives.

 

(d)In addition to the 2022 Annual Grant, on
the Commencement Date, Executive shall receive a supplemental equity Award (the "Supplemental Award") having an aggregate
grant date fair market value of $750,000 which shall be subject to a three year "cliff" vesting period and be equally divided
between RSU's and Options based on grant date fair value. For purposes of the Supplemental Award and the 2022 Annual Grant, "fair
market value" of an Award shall be determined by the Company using the same methodology used to value the Company's annual equity
incentive grants, including a Black-Scholes or similar valuation method for Options. Notwithstanding anything to the contrary contained
in this Agreement or any Award Agreement, (i) if, during the first twenty-four (24) months following the Commencement Date, Executive's
employment is terminated by the Company without Cause (as defined in Section 7 of this Agreement) or by Executive with Good Reason (as
defined in Section 7 of this Agreement), then the RSU’s and Options that comprise the Supplemental Award shall become fully (100%)
vested as of the date of Executive’s termination of employment, and (ii) if Executive's employment is terminated by the Company
without Cause or by Executive with Good Reason in the period subsequent to twenty-four (24) months following the Commencement Date but
prior to the thirty-six (36) month anniversary of the Commencement Date, then the RSU's and Options that comprise the Supplemental Award
shall vest pro rata based on the number of months elapsed from the Commencement Date to such termination, divided by thirty-six (36).

 

(e) Notwithstanding
anything to the contrary contained in any agreement evidencing any Award (including any outstanding Awards granted to Executive prior
to the date of this Agreement), but subject in all events to the provisions of Section 9 hereof, in the event Executive is terminated
by the Company without Cause, resigns for Good Reason, dies or suffers a Disability during the Term, Executive (or his estate or designated
representative) shall have twelve (12) months to exercise any stock option Awards ("Options") to the extent such stock
Options vested on or before the date of such termination, death or Disability (but not beyond the outside expiration date of such Options),
after which time the Options shall expire. If Executive is terminated by the Company for Cause, the Options shall expire on the date of
such termination. Notwithstanding anything to the contrary contained in this Section 5(e): (i) in the event of any Change of Control (as
defined in the Plan) that results in acceleration of vesting of Options under the Plan, the provisions of this Section 5(e) shall not
apply and the period for exercise of the Options shall be as specified in the Plan and (ii) no Option may be exercised beyond any time-frame
permissible under Code Section 409A.

 

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6.       Benefits.

 

(a)
       Executive shall be entitled to paid vacation and business expense reimbursement in accordance
with the Company’s policies. Executive shall also be entitled to participate with other similarly situated executive officers of
the Company based on position, tenure and salary in any plan of the Company relating to health insurance, stock purchases, pension, thrift,
profit sharing, life insurance, disability insurance, education, or other retirement or executive benefits that the Company has adopted
or may hereafter adopt for the benefit of its executive officers. 

 

(b)       Executive
shall be entitled to (i) a car allowance of $1,800 per month; provided, however, that the Company may, with the Executive's consent, substitute
a company-provided leased vehicle in lieu of the car allowance so long as the Company expense associated with such lease vehicle (lease
payments, license, taxes and insurance) does not exceed $1,800 per month, and (ii) other perquisites consistent with those offered to
Executive prior to the Commencement Date in his capacity as President and Chief Financial Officer. 

 

(c)Executive shall be reimbursed for his reasonable
legal fees incurred in connection with negotiating and drafting this agreement up to a maximum of $24,000.

 

(d)The Company shall pay all unreimbursed out-of-pocket
costs associated with an annual physical examination of Executive, such amount not to exceed $3,000 per year.

 

(e)Subject to insurability, plan limits, and
underwriting standards under the Company's group life insurance plan as in effect from time to time (the "Group Life Plan"),
during the Term (for so long as the Group Life Plan is in effect and coverage of Executive under the Group Life Plan is available at reasonable
rates), the Company will provide life insurance coverage for Executive under the Group Life Plan in an amount equal to the maximum coverage
amount thereunder. Nothing in this Section 6(d) shall require the Company to continue to maintain a Group Life Plan or to modify or refrain
from modifying the benefits available under the Group Life Plan.

 

7.        Termination;
Severance.

 

(a)       Executive’s
employment may be terminated by the Company at any time with or without Cause by delivery of written notice of termination to Executive.
Upon any termination of Executive's employment for any reason, Executive shall automatically be deemed to have resigned all positions
as an officer of the Company and any subsidiary of the Company. Unless otherwise requested by the Board, Executive shall be deemed to
have resigned from his position as a director of the Company and any subsidiaries upon termination of his employment for any reason.

 

(b)Subject to the provisions of Sections 7(c),
(d) and (e) below, in the event the Company terminates Executive without Cause (for reasons other than his death, but including termination
as a result of his Disability) on or after the Effective Date (including a termination without Cause on or after the Effective Date but
prior to the Commencement Date, in which case the provisions of this Section 7 shall supersede any other severance arrangement in effect
for Executive) or Executive resigns for Good Reason on or after the Commencement Date, in addition to any accrued but unpaid compensation
due to him under applicable law, any earned but unpaid Bonus (the timing of which shall be governed by Section 4 hereof) and performance-based
equity for the fiscal year ending immediately before the year of termination of employment, and any Other Benefits (as defined below),
Executive shall be entitled to receive the following: (i) continuation of health insurance (or reimbursement of Executive for the costs
of such continuation) under COBRA for a period equal to the lesser of eighteen (18) months following termination of employment or the
maximum continuation coverage period allowed under the Consolidated Omnibus Budget Reconciliation Act ("COBRA"); provided,
however, that the Company's obligation to pay the costs of continuation health insurance coverage shall terminate at such time as
Executive is covered under any other group health insurance plan; plus (ii) an aggregate cash payment totaling 150% of Executive's then
current Base Salary, which amount shall be payable in installments (but no less frequently than monthly) over the eighteen (18) month
period following the date of termination of employment in accordance with the Company's normal payroll practices (the "Periodic
Payments"); plus (iii) a lump sum cash payment (the "Lump Sum Payment") equal to (A) the lesser of the prior
fiscal year Bonus paid or payable to Executive or 100% of the target Bonus for the fiscal year of termination, multiplied by (B) a fraction
equal to the number of days elapsed in such fiscal year divided by 365; plus (iv) other than with respect to the Supplemental Award (which
shall be governed by Section 5(d)), immediate vesting of any equity to the extent such equity would have become vested had Executive remained
in continuous service with the Company for ninety (90) days after the termination of his employment occurred. Payment of the Periodic
Payments shall commence, and the Lump Sum Payment shall be paid, sixty (60) days following the date of Executive's Separation from Service
(as defined in Section 9 below). The Periodic Payments and Lump Sum Payment shall be conditioned expressly upon Executive executing the
Company’s standard form of general release of the Company and its affiliates, which release shall be provided to Executive no later
than the date of his Separation from Service and which release shall be legally effective on or prior to the 60th day subsequent
to Executive’s Separation from Service. Notwithstanding anything to the contrary contained in this Agreement, (i) the total Periodic
Payments and Lump Sum Payment shall be reduced by the amount of any payments Executive is entitled to receive under any Company-provided
disability policy, to the extent permissible under Code Section 409A, and (ii) in addition to any rights and remedies available to it
under this Agreement or applicable law, the Company shall have the right to immediately terminate payments due under clauses (i) through
(iii) of this Section 7(b) in the event of Executive's breach of his obligations under Section 8 of this Agreement.

 

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(c)In lieu of any payments due pursuant to
Section 7(b) above, in the event the Company terminates Executive without Cause (for reasons other than his death or Disability) or Executive
resigns for Good Reason within the period ninety (90) days prior to, or twelve (12) months following, a Change of Control (as defined
in the Plan), and in addition to any accrued but unpaid compensation due to him under applicable law, any earned but unpaid Bonus (the
timing of which shall be governed by Section 4 hereof) and performance-based equity for the fiscal year ending immediately before the
year of termination of employment, and any Other Benefits (as defined below), Executive shall be entitled to receive the following: (i)
reimbursement to Executive of the costs of continuation of health insurance coverage under COBRA for a period equal to the lesser of eighteen
(18) months following termination of employment or the maximum continuation coverage period allowed under COBRA; plus (ii) a lump sum
cash payment, payable within 60 days of Executive’s Separation from Service (as defined in Section 9 below), equal to 200% of Executive's
then current Base Salary plus the lesser of (A) the prior fiscal year Bonus paid or payable to Executive or (B) 100% of the target Bonus
for the fiscal year of termination, plus (iii) to the extent vesting is not automatically accelerated under the terms of the Plan, immediate
100% vesting of any equity, including vesting of any performance-based equity as if 100% of the target performance goals for the fiscal
year of termination of employment had been achieved (provided that no such vested option, if any, may be exercised beyond any time-frame
permissible under Code Section 409A). The payments set forth in this Section 7(c) shall be conditioned expressly upon Executive executing
the Company’s standard form of general release of the Company and its affiliates, which release shall be provided to Executive no
later than the date of his Separation from Service and which release shall be legally effective on or prior to the 60th day
subsequent to Executive’s Separation from Service.

 

(d) In the event Executive resigns or voluntarily
terminates his employment for any reason (other than for Good Reason) or Executive’s employment is terminated for Cause or as a
result of his death, the Company shall only be required to pay Executive (i)  any unpaid Base Salary and accrued vacation pay earned
prior to the date of Executive’s termination, (ii) any unpaid reimbursements due Executive for expenses incurred by Executive
prior to the date of Executive’s termination, (iii) any accrued but unpaid car allowance accrued prior to the date of Executive’s
termination, and (iv) any benefits that are required, or to which Executive is entitled, under any plan, contract or arrangement maintained
by the Company as of the end of his employment, in each case on the date on which such payment or benefit would otherwise have been payable
to Executive under the Company’s payroll practices or the terms of the applicable contract or plan (or, in the case of accrued vacation
day, on the 60th day following the date of Executive’s Separation from Service); provided, however, nothing in
this clause (iv) shall require the continuation of such benefits following termination unless such continuation is required under applicable
law or the specific terms of the plan, contract or arrangement (together, the “Other Benefits”).

 

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(e) For purposes of this Agreement, “Cause”
shall mean (i) an act or acts of dishonesty undertaken by Executive and intended to result in material personal gain or enrichment of
Executive or others at the expense of the Company, (ii) gross misconduct that is willful or deliberate on Executive’s part and that,
in either event, is materially injurious to the Company, (iii) the conviction or plea of nolo contendere of Executive of a felony, (iv)
the commission by Executive of any act involving moral turpitude which (A) brings the Company or any of its affiliates into public disrepute
or disgrace, or (B) causes material injury to the customer relations, operations or the business prospects of the Company or its affiliates,
in each case notwithstanding written notice of objection from the Board and the failure of Executive to substantially cure such harm in
the reasonable opinion of the Board within 30 calendar days after such notice is received by Executive, (v) the ongoing and repeated material
neglect of his duties on a general basis (other than as a result of illness or Disability), notwithstanding written notice of objection
from the Board and the failure of Executive to substantially cure any resulting harm in the reasonable opinion of the Board within 30
calendar days after such notice is received by Executive, or (vi) the material breach of any terms and conditions of this Agreement by
Executive, which breach has not been substantially cured by Executive in the reasonable opinion of the Board within 30 days after written
notice thereof is received by Executive from the Company. The cessation of employment by Executive shall not be deemed to be for Cause
unless and until there shall have been delivered to Executive a copy of a resolution, duly adopted by the affirmative vote of not less
than a majority of the entire non-employee membership of the Board (for the sake of clarity, not including Executive) at a meeting of
the Board called and held for such purpose (after reasonable notice to Executive and an opportunity for him, together with his counsel,
to be heard before the Board), finding that, in the good faith opinion of the Board, one or more causes for termination exist under this
Section 7(e), and specifying the particulars thereof in reasonable detail.

 

(f) For purposes of this Agreement, "Good
Reason" shall mean:

 

(i)
       any removal of Executive as CEO, or any failure by the Company to nominate or seek re-election
of Executive to the Board of Directors while serving as CEO, except in connection with termination of Executive’s employment for
death, Disability, Cause or his voluntary resignation; 

 

(ii)       any
(1) involuntary material reduction in Executive's then-current Base Salary, (2) involuntary reduction in Executive’s target
Bonus percentage below 90%, or (3) involuntary material reduction in Executive's comprehensive benefit package (other than changes, if
any, required by group insurance carriers applicable to all persons covered under such plans or changes required under applicable law).
For the avoidance of doubt, such benefit package shall not be deemed to include awards under the Company's equity incentive compensation
plans; 

 

(iii)       the
assignment to Executive of duties that represent or constitute a material adverse change in Executive’s position, duties, responsibilities
and status with the Company;

 

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(iv)       an
involuntary material adverse change in Executive's authorities or reporting responsibilities; except in connection with the termination
of Executive's employment for Cause, upon the death of Executive, or upon the voluntary resignation by Executive;

 

(v)
a relocation of the Company’s principal executive offices to a location that is more than 60 miles from the location of Executive’s
primary residence as of the date of this Agreement (Manhattan Beach, California) that was not recommended by the Executive to the Board;
or 

 

(vi)
the material breach of any terms and conditions of this Agreement by the Company, including without limitation Section 13;

 

provided, however,
that a termination shall not be considered for Good Reason unless Executive has given notice to the Company of the event constituting
Good Reason within ninety (90) days of the initial occurrence thereof, such event has not been cured by the Company within thirty (30)
days after written notice thereof to the Company from Executive, and Executive resigns no later than 180 days after the initial occurrence
of such event. Notwithstanding anything to the contrary contained in this Agreement, (1) notice of the Company’s intention not to
extend the Agreement shall not be deemed to be Good Reason, (2) the appointment of a new Chief Executive Officer or President (regardless
of whether such President reports solely to the Executive) during the Transition Period shall not constitute Good Reason under clauses
(i), (iii), (iv) or (vi) above, and (3) appointment of a person other than Executive as President shall not be deemed to be Good Reason
if such President reports solely to Executive, other than reports to the Board at its meetings in the ordinary course.

 

(g)Notwithstanding any other provision hereof,
any amounts payable to Executive under this Section 7 during the first six months and one day following the date of Executive’s
Separation from Service pursuant to this Section 7 that constitute nonqualified deferred compensation within the meaning of Section 409A
of the Code, shall be deferred until the date six months and one day following such Separation from Service (or if earlier, the date of
Executive’s death) to the extent necessary to avoid adverse tax consequences under Section 409A, and if such payments are required
to be so deferred, the first payment shall be in an amount equal to the total amount to which Executive would otherwise have been entitled
to during the period following the date of Separation from Service if the deferral had not been required. Subsequent payments shall be
made in accordance with the dates and terms set forth herein.

 

(h)For purposes of this Agreement, "Disability"
shall mean Executive’s incapacity due to physical or mental illness which has resulted in him being absent from the full time performance
of substantially all of his material duties with the Company for 90 consecutive days or 180 days total within any 12-month period, as
determined in good faith by the Board.

 

8.        Covenants.

 

(a)        Confidential
Information. During the term of this Agreement and thereafter, Executive shall not, except as may be required to perform his duties
hereunder or as required by applicable law or court order, disclose to others for use, whether directly or indirectly, any Confidential
Information regarding the Company. “Confidential Information” shall mean information about the Company, its subsidiaries
and affiliates, and their respective clients and customers that is not available to the general public or that does not otherwise become
available to the general public, and that was learned by Executive in the course of his employment by the Company, including, without
limitation, any data, formulae, recipes, methods, information, proprietary knowledge, trade secrets and client and customer lists and
all papers, resumes, records and other documents containing such Confidential Information. Executive acknowledges that such Confidential
Information is specialized, unique in nature and of great value to the Company, and that such information gives the Company a competitive
advantage. Upon the termination of his employment, Executive will promptly deliver to the Company all documents, maintained in any format,
including electronic or print, (and all copies thereof) in his possession containing any Confidential Information.

 

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(b) Noncompetition. Except as otherwise
provided herein, Executive agrees that during the term of this Agreement and, to the extent applicable, the period during which he is
receiving Periodic Payments under Section 7(b), he will not, directly or indirectly, without the prior written consent of the Company,
provide consulting services with or without pay, or own, manage, operate, join, control, participate in, or be connected as a stockholder,
partner, or otherwise with any business, individual, partner, firm, corporation, or other entity which is then in competition with the
Company or any present affiliate of the Company in the industry of owning or operating full-menu table service casual dining restaurants;
provided, however, that the “beneficial ownership” by Executive, either individually or as a member of a “group,”
as such terms are used in Rule 13d under the Securities Exchange Act of 1934, as amended (the "Exchange Act") of not
more than 5% of the voting stock of any corporation shall not be a violation of this Agreement.

 

(c) Right to Company Materials. Executive
agrees that all styles, designs, recipes, lists, materials, books, files, reports, correspondence, records, and other documents (“Company
Material”) used, prepared, or made available to Executive, shall be and shall remain the property of the Company. Upon the termination
of his employment and/or the expiration of this Agreement, all Company Materials shall be returned immediately to the Company, and Executive
shall not make or retain any copies thereof.

 

(d) Non-Solicitation. Executive understands
and agrees that in the course of employment with the Company, Executive will obtain access to and/or acquire Company trade secrets, including
Confidential Information, which are solely the property of the Company. Therefore, to protect such trade secrets, Executive promises and
agrees that during the term of this Agreement, and for a period thereafter equal to the greater of (i) one year or (ii) the period during
which Executive is entitled to receive Periodic Payments under Section 7(b), he will not actively solicit or assist or instruct others
in soliciting any employees, customers, franchisees, landlords, or suppliers of the Company or any of its present or future subsidiaries
or affiliates, to divert their employment or business to or with any individual, partnership, firm, corporation or other entity then in
competition with the business of the Company, or any subsidiary or affiliate of the Company. The Company acknowledges in this regard that
its customers, landlords and suppliers do have existing relationships and likely will have future relationships with the Company’s
direct and indirect competitors in the restaurant industry in the ordinary course of their activities. For purposes of this Section 8,
“solicit” shall not include general advertisements or other communications in any media not targeted specifically at such
employees, customers, franchisees, landlords, or suppliers, and any responses by such persons thereto.

 

(e) Non-Disparagement. Except for statements
of fact, internal Company communications relating to the performance of the Company, disclosures required under applicable law or in connection
with any legal proceedings with respect to which Executive is a party or witness, Executive will not make any disparaging remarks regarding
the Company at any time during or after the termination of his employment with the Company. Except for statements of fact, internal communications
relating to the performance of Executive, and disclosures required under applicable law or in connection with any legal proceedings with
respect to which the Company is a party or witness, the Company will not make any disparaging remarks regarding Executive at any time
during or after the termination of his employment with the Company.

 

9.        Tax
Matters; Code Sections 280G and 409A.

 

(a)       Notwithstanding
any other provision of this Agreement, in the event that Executive becomes entitled to receive or receives any payments, options, awards
or benefits (including, without limitation, the monetary value of any non-cash benefits and the accelerated vesting of stock options or
restricted stock) under this Agreement or under any other plan, agreement or arrangement with the Company, from any person whose actions
result in any change described in Section 280G(b)(2)(A)(i) (a “Section 280G Transaction”) of the Internal
Revenue Code of 1986, as amended, and the Treasury Regulations thereunder (the "Code") or from any person affiliated
with the Company or such person (collectively, the “Payments”) that may separately or in the aggregate constitute “parachute
payments” within the meaning of Code Section 280G, if it is determined that, but for this Section 9(a), any of the Payments
will be subject to any excise tax pursuant to Code Section 4999 or any similar or successor provision (the “Excise Tax”),
the Company shall pay to Executive either (i) the full amount of the Company Payments (as defined below) or (ii) an amount equal
to the Company Payments (as defined below), reduced by the minimum amount necessary to prevent any portion of the Payments from being
an “excess parachute payment” (within the meaning of Code Section 280G) (the “Capped Payments”), whichever
of the foregoing amounts results in the receipt by Executive, on an after-tax basis, of the greatest amount of Payments notwithstanding
that all or some portion of the Payments may be subject to the Excise Tax.  For purposes of determining whether Executive would receive
a greater after-tax benefit from receipt of the Capped Payments than from receipt of the full amount of the Payments, (i) there shall
be taken into account any Excise Tax and all applicable federal, state and local taxes required to be paid by Executive in respect of
the receipt of such payments and (ii) such payments shall be deemed to be subject to federal income taxes at the highest rate of
federal income taxation applicable to individuals that is in effect for the calendar year in which the benefits are to be paid, and state
and local income taxes at the highest rate of taxation applicable to individuals in the state and locality of employee’s residence
on the effective date of the Section 280G Transaction, net of the maximum reduction in federal income taxes which could be obtained
from deduction of such state and local taxes (as determined by assuming that such deduction is subject to the maximum limitation applicable
to itemized deductions under Code Section 68 and any other limitations applicable to the deduction of state and local income taxes
under the Code).

 

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(b)   In the event that Section 9(a) applies
and a reduction is required to be applied to the Company Payments thereunder, the Company Payments shall be reduced by the Company in
its reasonable discretion in the following order and in a manner that complies with Code Section 409A (as determined by the Company):
(i) reduction of any cash payments otherwise payable to Executive that are exempt from Code Section 409A; (ii) reduction
of any cash payments otherwise payable to Executive that are subject Code Section 409A on a pro-rata basis or such other manner that
complies with Code Section 409A, as determined by the Company, (iii) cancellation of accelerated vesting of equity awards (other
than stock options) that are exempt from Code Section 409A; (iv) cancellation of accelerated vesting of stock options that are exempt
from Code Section 409A; and (v) reduction of any other payments and benefits otherwise payable to the Executive by the Company
on a pro-rata basis or such other manner that complies with Code Section 409A, as determined by the Company.  If acceleration
of vesting of Executive’s stock options or other equity awards is to be reduced pursuant to clauses (iii) or (iv) of the
immediately preceding sentence, such acceleration of vesting shall be accomplished by first canceling such acceleration for the vesting
installment that will vest last and continuing to the extent necessary by canceling such acceleration for the next vesting installment
with the latest vesting.  For purposes of this Section 9, the term “Company Payments” means any payments,
options, awards or benefits (including, without limitation, the monetary value of any non-cash benefits and the accelerated vesting of
stock options or restricted stock) under this Agreement or under any other plan, agreement or arrangement with the Company.

 

(c)   All calculations and determinations
under this Section 9, including application and interpretation of the Code and related regulatory, administrative and judicial authorities,
shall be made by an accounting firm selected by the Company and reasonably acceptable to Executive which is designated as one of the four
largest accounting firms in the United States (the “Accounting Firm”).  All determinations made by the Accounting
Firm under this Section 9 shall be conclusive and binding on both the Company and Executive, and the Company shall cause the Accounting
Firm to provide its determinations and any supporting calculations with respect to Executive to the Company and Executive.  The Company
shall bear all fees and expenses charged by the Accounting Firm in connection with its services.  For purposes of making the calculations
and determinations under this Section 9, after taking into account the information provided by the Company and Executive, the Accounting
Firm may make reasonable, good faith assumptions and approximations concerning the application of Code Sections 280G and 4999.  The
Company and Executive shall furnish the Accounting Firm with such information and documents as the Accounting Firm may reasonably request
to assist the Accounting Firm in making calculations and determinations under this Section 9.

 

    	 	8	 

     

    

(d)        The parties
agree that all provisions of this Agreement are intended to meet, and to operate in accordance with the requirements of paragraphs (2),
(3), and (4) of Section 409A(a) of the Code, and any guidance from the Department of Treasury or Internal Revenue Service thereunder,
but only to the extent any compensation or benefits provided hereunder are not excepted or excluded from such requirements pursuant to
the short-term deferral exception described in Treasury Regulations Section 1.409A-1(b)(4), the involuntary separation pay plan exception
described in Treasury Regulations Section 1.409A-1(b)(9)(iii), or otherwise. In this regard each severance payment under Section 7 of
this Agreement shall be treated as a separate payment for purposes of Section 409A of the Code. Where ambiguity or uncertainty exists,
this Agreement shall be interpreted in a manner which would qualify any compensation payable hereunder to satisfy the requirements for
exception to or exclusion from Section 409A and the taxes imposed thereunder. In the event either party reasonably determines any item
payable by the Company to the Executive pursuant to this Agreement that is not subject to a substantial risk of forfeiture would not meet,
or is reasonably likely not to meet, the requirements of paragraphs (2), (3) and (4) of Section 409A, or to qualify as excepted or
excluded from Section 409A, such party shall notify the other in writing. Any such notice shall specify in reasonable detail the basis
and reasons for such party’s determination. The parties agree to negotiate in good faith the terms and conditions of an amendment
to this Agreement and to avoid the inclusion of such item in a tax year before the Executive’s actual receipt of such item of income;
provided, however, nothing in this Section 9 shall be construed or interpreted to require the Company to increase any amounts
payable to the Executive pursuant to this Agreement or to consent to any amendment that would materially and adversely change the Company’s
financial, accounting or tax treatment of the payments to the Executive under this Agreement. Any item payable under this Agreement that
the Company reasonably determines is subject to Section 409A(a)(2)(B)(i) of the Code, shall not be paid or commence to be paid before
the later of (a) six months after the date of the Executive’s Separation from Service and (b) the payment date or commencement
date specified in this Agreement for such item.

 

All compensation shall be made on the dates provided
herein and no request to accelerate or defer any compensation under this Agreement shall be considered or approved, except as permitted
under Code Section 409A. Executive may not directly or indirectly designate the calendar year of the commencement of any payment hereunder,
nor may the parties accelerate, offset or assign any deferred payment, except in compliance with Code Section 409A. Notwithstanding the
foregoing, in the event that it is reasonably determined by the Company that, as a result of Code Section 409A, any of the payments that
Executive is entitled to under the terms of this Agreement may not be made at the time contemplated by this Agreement, the Company shall
pay such compensation on the first subsequent day permissible under Section 409A, provided that such payment does not result in additional
taxes, penalties or interest under Section 409A.

 

Any payment or benefit due upon a termination of Executive’s
employment that represents a “deferral of compensation” within the meaning of Section 409A of the Code shall be paid or provided
to Executive only upon a Separation from Service.

 

Except as otherwise expressly provided herein, to the
extent any expense reimbursement or the provision of any in-kind benefit under this Agreement is determined to be subject to Section 409A
of the Code, the amount of any such expenses eligible for reimbursement, or the provision of any in-kind benefit, in one calendar year
shall not affect the expenses eligible for reimbursement in any other taxable year, in no event shall any expenses be reimbursed after
the last day of the calendar year following the calendar year in which Executive incurred such expenses, and in no event shall any right
to reimbursement or the provision of any in-kind benefit be subject to liquidation or exchange for another benefit.

 

    	 	9	 

     

    

(e)       In any case
where Executive’s Separation from Service and the date by which Executive is required to deliver a release pursuant to Section 7(b)
or (c) fall in two separate taxable years, any amount required to be paid to Executive that is conditioned on the effectiveness of a release
and is treated as nonqualified deferred compensation for purposes of Code Section 409A shall be paid in the later taxable year.

 

(f)        For purposes
of this Agreement, "Separation from Service" shall mean a "separation from service" within the meaning of Section
409A(2)(A)(i) of the Code and the underlying Treasury Regulations. Notwithstanding anything to the contrary contained in this Agreement,
a termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment
of any amounts or benefits upon or following a termination of employment unless such termination is also a “separation from service”
within the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,”
“termination of employment” or like terms shall mean “Separation from Service.”

 

(g)        Notwithstanding
any other provision to the contrary, and subject to (and only to the extent permissible under) the requirements of Treasury Regulation
Section 1.409A-2(b)(7)(i), the Company, in its sole discretion, may delay payment to Executive to the extent necessary to avoid application
of the deduction limitation under Code Section 162(m).

 

(h)        The Company
may withhold from any amounts payable hereunder all applicable federal, state, local and foreign taxes required to be withheld by applicable
laws or regulations. The Company does not guaranty or warrant the tax consequences of this Agreement or any other agreement referenced
herein or ancillary thereto, and Executive is solely responsible for consulting with an accountant, legal counsel or other tax advisor
regarding such tax consequences. The Company shall have no obligation to indemnify or hold Executive harmless from any or all of such
liabilities (whether taxes, interest or penalties).

 

10.       Indemnity.
The Company shall to the fullest extent permitted by law, indemnify and hold Executive harmless from costs, expense or liability arising
out of or relating to any acts or decisions made by Executive in the course of his employment to the same extent the Company indemnifies
and holds harmless other officers and directors of the Company in accordance with the Company’s established policies and indemnification
agreements. This indemnity shall include, without limitation, advancing Executive attorneys’ fees to the fullest extent permitted
by applicable law. The Company agrees to continuously maintain directors' and officers' liability insurance with reasonable limits of
coverage as determined by the Board of Directors and to include Executive within said coverage while Executive is employed by the Company
and for at least six (6) years after the termination of Executive's employment by the Company.

 

11.        Representations
and Warranties; Compliance With Company Policies. Executive understands and agrees that, as an officer and director of a publicly
traded company subject to the reporting requirements under the Exchange Act and the listing and other requirements of applicable securities
exchanges, he will be subject to and agrees to abide by Company policies applicable to executive officers and/or directors of the Company
as in effect from time to time (including, without limit, insider trading policies and a Code of Integrity, Ethics and Conduct, copies
of which have been provided to Executive) (collectively, the "Company Policies"). Executive acknowledges and agrees that such
Company Policies and the application thereof to Executive and other officers and/or directors of the Company shall not constitute grounds
for a Good Reason termination by Executive.

 

12.        Severability.
The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the
validity or enforceability of the other provisions hereof.

 

    	 	10	 

     

    

13.       Assumption
by Successor. The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the
same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in
this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as
aforesaid which assumes this Agreement by operation of law, or otherwise.

 

14.        Arbitration.
Except as provided herein, any controversy or claim arising out of or relating in any way to this Agreement or the breach thereof, or
Executive's employment and any statutory claims including all claims of employment discrimination shall be subject to private and confidential
arbitration in Orange County or Los Angeles, California in accordance with the laws of the State of California. The arbitration shall
be conducted in a procedurally fair manner by a mutually agreed upon neutral arbitrator selected in accordance with the National Rules
for the Resolution of Employment Disputes (“Rules”) of the American Arbitration Association or if none can be mutually
agreed upon, then by one arbitrator appointed pursuant to the Rules. The arbitration shall be conducted confidentially in accordance with
the Rules. The arbitration fees shall be paid by the Company. Each party shall have the right to conduct discovery including depositions,
requests for production of documents and such other discovery as permitted under the Rules or ordered by the arbitrator. The statute of
limitations or any cause of action shall be that prescribed by law. The arbitrator shall have the authority to award any damages authorized
by law for the claims presented including punitive damages and shall have the authority to award reasonable attorneys’ fees to the
prevailing party in accordance with applicable law. The decision of the arbitrator shall be final and binding on all parties and shall
be the exclusive remedy of the parties. The award shall be in writing in accordance with the Rules, and shall be subject to judicial enforcement
in accordance with California law. Notwithstanding anything to the contrary contained in this Section 14, nothing herein shall prevent
or restrict the Company or Executive from seeking provisional injunctive relief from any forum having competent jurisdiction over the
parties.

 

15.        Miscellaneous.
No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing
and signed by Executive and such officer as may be specifically designated by the Board. No waiver by either party hereto at any time
of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other
party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. This
Agreement constitutes the entire understanding of the parties hereto as to the subject matter hereof and supersedes any prior oral or
written agreements between the parties relating to the subject matter hereof. No agreements or representations, oral or otherwise, express
or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement.
Sections 8, 9, 10, 12, 14 and 15 and, in the event of Executive’s termination without Cause, including on account of Disability,
or resignation for Good Reason during the original or extended Term of the Agreement, the Company’s obligation under Section 7 to
make Periodic Payments, shall survive and continue in full force and effect in accordance with their terms, notwithstanding any termination
of this Agreement. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State
of California without regard to its conflicts of law principles.

 

[Signature page immediately follows]

 

    	 	11	 

     

    

IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement
on the date first indicated above.

 

BJ'S RESTAURANTS, INC.

 

By: /s/ GERALD W. DEITCHLE                                                

Gerald W. Deitchle, Chairman of the Board

 

By: /s/ LEA ANNE OTTINGER                                                  

Lea Anne Ottinger, Compensation Committee Chair

 

EXECUTIVE:

 

 

 

/s/ GREGORY LEVIN                                                                   

GREGORY LEVIN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

12EX-10.1

  Exhibit 10.1

  EARN-OUT AGREEMENT

  This EARN-OUT AGREEMENT (this “Agreement”), dated as of July 1, 2021, is made by and between Entravision Digital Holdings, LLC, a Delaware limited liability company, (“Buyer”), Jim Dorian Kramp (“Seller Representative”), in its capacity as the Seller Representative for all Sellers (as defined below) pursuant to the authority granted under Section 12.1 of the Purchase Agreement (as defined below), Pieter-Jan De Kroon, an individual (“P. De Kroon”), Jim Dorian Kramp, an individual (“J. Kramp”), Luc Theodoor Franciscus Maria De Kroon, an individual (“L. De Kroon” and together with P. De Kroon and J. Kramp, the “Sellers”) and Entravision Communications Corporation, a Delaware corporation (“Guarantor”).  The parties to this Agreement are collectively referred to herein as “Parties” and each of them individually as a “Party”.  Capitalized terms used herein and not otherwise defined shall have the meaning ascribed to such term in the Purchase Agreement (as defined below). 

  RECITALS

  A.	This Agreement is being executed and delivered pursuant to that certain Securities Purchase Agreement, dated as of June 4, 2021 (the “Purchase Agreement”), by and among Buyer, MediaDonuts Pte. Ltd., a company organized under the laws of Singapore (the “Company”), the Guarantor, the Sellers and the Seller Representative, pursuant to which Buyer will purchase from the Sellers all of the issued and outstanding Shares in the Company. 

  B.	The parties hereto have agreed to execute and deliver this Agreement in order to provide for the contingent consideration set forth herein on the terms and subject to the conditions set forth herein.

  NOW, THEREFORE, in consideration of the foregoing and the respective covenants and agreements set forth in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

  1. Definitions and Interpretive Matters.  For purposes of this Agreement, the following terms shall have the meanings specified in this Section 1:

  a.     “2020 EBITDA” means $3,690,000.

  b.     “2021 EBITDA” means the EBITDA of the Business for calendar year 2021.

  c.     “2021 EBITDA Target” means $5,375,000.

  d.     “2022 EBITDA” means the EBITDA of the Business for calendar year 2022.

  e.     “2022 EBITDA Target” means $7,250,000.

  f.      “2023 EBITDA” means the EBITDA of the Business for calendar year 2023.

  g.     “2024 EBITDA” means the EBITDA of the Business for calendar year 2024.

  h.     “Agreement” has the meaning set forth in the preamble.

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  i.      “ASC” means the Accounting Standards Council in Singapore.

  j.     “Board” means the Board of Directors (or similar governing body) of the Company.

  k.    “Business” means the business of developing, operating, providing, marketing and/or selling Company Products and Services by the Acquired Companies and their respective Subsidiaries or any successor entity(ies) or business unit, as applicable.

  l.    “Buyer” has the meaning set forth in the preamble.

  m.   “Buyer Response Notice” has the meaning set forth in Section ‎2(b).

  n.      “COGS” means the costs that are directly related to creating or providing the Company Products and Services, calculated in accordance with SFRS. 

  o.   “Company Products and Services” means all products and services developed, operated, provided, marketed and/or sold by the Company and its Subsidiaries.  

  p.     “Confidential Information” has the meaning set forth in Section ‎6.

  q.      “Disputed Item” has the meaning set forth in Section ‎2(b).

  r.   “Earn-Out Payment(s)” means the Period 1 Earn-Out Payment, Period 2 Earn-Out Payment, Period 3 Earn-Out Payment or Period 4 Earn-Out Payment and all of them collectively, as applicable.

  s.   “Earn-Out Period” means Period 1, Period 2, Period 3 or Period 4, as applicable.

  t.       “Earn-Out Statement” has the meaning set forth in Section ‎2(a).

  u.     “EBITDA” means an amount in U.S. Dollars equal to (i) Net Revenue for the applicable Earn-Out Period, minus (ii) the Expenses for the applicable Earn-Out Period, in each case calculated in accordance with SFRS.  By way of example only, the calculation of 2020 EBITDA is set forth on Schedule 1, attached hereto.

  v.    “Entravision” means Entravision Communications Corporation, a Delaware corporation.

  w.    “Expenses” means the expenses of the Business related to the development, provision, marketing, sale and other operations related to the Company Products and Services during the Earn-Out Period, as determined in accordance with SFRS. Without limiting the generality of the foregoing, “Expenses” will include the following costs, fees and expenses: 

  i.   COGS; and

  ii.  the following operating expenses, without duplication: 

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  1.      travel and entertainment (and related) expenses; 

  2.      expenses relating to marketing and public relations related to Company Products and Services; 

  3.      all rent and other payments pursuant to leases for real estate; 

  4.      all legal expenses and fees incurred or accrued by the Business, including all costs and expense so incurred, accrued or allocated by or on behalf of the Business in connection with any dispute, claim or legal proceeding; 

  5.      all expenses and fees incurred or accrued relating to human resources and other administrative and operational expenses related to the Business; 

  6.      any costs, Taxes or expenses associated with severance paid to terminated employees;

  7.      all technology and IT expenses, including related to the research, development or deployment of any Company Products and Services, but excluding any such expenses that are capitalized in accordance with SFRS; 

  8.      all foreign currency transaction gains and losses with respect to the Business;

  9.      all selling, general, and administrative expenses related to the Business; and 

  10.    all expenses actually incurred for items identified in the annual budget relating to accounting, bookkeeping and financial reporting with respect to the operation of the Business including the Chief Financial Officer of the Company and its Subsidiaries and the financial and accounting staff.

  Notwithstanding anything in the foregoing to the contrary, the following will be excluded from Expenses during the Relevant Measurement Period: 

  (a) all third-party interest expenses, 

  (b) all income tax expenses, 

  (c) all depreciation and amortization expenses and impairment of assets,

  (d) any costs related to the transactions contemplated by this Agreement or the Purchase Agreement, 

  (e) any costs incurred to convert the books and records of the Company from SFRS to GAAP, 

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  (f) any management/holding fees imposed by the Buyer or any of its Affiliates on any Acquired Company, 

  (g)  any overhead charges or costs charged by the Buyer or any of its Affiliates to any Acquired Company to the extent that these charges or costs are higher than the cost price of such service (i.e. no margin should be charged) or the applicable terms and conditions of such service are not on arm’s length basis or there is no good and sound business practices to do so,

  (h) any Losses of the Acquired Companies which have been compensated by the Sellers pursuant to the provisions of the Purchase Agreement, and

  (i) expenses that are (1) actually incurred during the Relevant Measurement Period, (2) identified as an expense to be excluded from Expenses pursuant to the Annual Budget or a written request by the Key Managers to the Board setting forth in detail the intended use and amount of such expense, and (3) approved by the Board to be excluded from Expenses, related to the following: (i) any extraordinary item, or (ii) any merger or acquisition by the Company of another business, restructuring by the Company or incurred in the development of or launch of new lines of business or new publishers.

  x.    “GAAP” means U.S. Generally Accepted Accounting Principles as applied by Entravision in the preparation of its financial statements.

  y.     “Independent Accountant” means PricewaterhouseCoopers in Singapore, or if such firm is not independent of all parties, unable or unwilling to act in such capacity, the Independent Accountant will be such “Big 4” accounting firm in Singapore selected by agreement of Buyer and the Sellers Representative, provided that Buyer and the Sellers Representative agree that such firm shall not have any existing material commercial or professional relationship with any of the parties hereto.

  z.    “Key Managers” means each of (i) Pieter-Jan de Kroon, (ii) Pancharee Sitthisenee and (iii) Mylen Lara.

  aa.    “Net Revenue” means, with respect to the applicable Earn-Out Period, an amount equal to (i) gross revenue generated from the sale of Company Products and Services to third parties, less (ii) third party advertising agency commissions, less (iii) ordinary adjustments for under-delivery of advertising or other rebates or write-offs as uncollectible; in each case of (i), (ii), and (iii) calculated in accordance with SFRS. 

  bb.    “Objection Notice” has the meaning set forth in Section ‎2(b).

  cc.    “Objection Period” has the meaning set forth in Section ‎2(b).

  dd.    “Period 1” means the calendar year ended December 31, 2021.

  ee.    “Period 1 Earn-Out Payment” shall be an amount calculated as follows:

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  i.    In the event 2021 EBITDA is equal to or greater than the 2021 EBITDA Target, the Period 1 Earn-Out Payment shall be an amount equal to 2020 EBITDA;

  ii.      In the event 2021 EBITDA is equal to or greater than 75% of the 2021 EBITDA Target but less than the 2021 EBITDA Target, the Period 1 Earn-Out Payment shall be an amount equal to 2020 EBITDA multiplied by the Realized EBITDA Percentage for Period 1; or

  iii.    In the event 2021 EBITDA is less than 75% of the 2021 EBITDA Target, then the Period 1 Earn-Out Payment will be $0.

  ff.     “Period 2” means the calendar year ended December 31, 2022.

  gg.    “Period 2 Earn-Out Payment” shall be an amount calculated as follows:

  i.    In the event 2022 EBITDA is equal to or greater than the 2022 EBITDA Target, the Period 2 Earn-Out Payment shall be an amount equal to 2020 EBITDA;

  ii.    In the event 2022 EBITDA is equal to or greater than 75% of the 2022 EBITDA Target but less than the 2022 EBITDA Target, the Period 2 Earn-Out Payment shall be an amount equal to 2020 EBITDA multiplied by the Realized EBITDA Percentage for Period 2; or

  iii.    In the event 2021 EBITDA is less than 75% of the 2021 EBITDA Target, then the Period 1 Earn-Out Payment will be $0.

  hh.    “Period 3” means the calendar year ended December 31, 2023.

  ii.     “Period 3 Earn-Out Payment” shall be an amount calculated as follows:

  i.     In the event 2023 EBITDA is equal to or greater than 130% of 2022 EBITDA, the Period 3 Earn-Out Payment shall be an amount equal to 2023 EBITDA, multiplied by 8.0, multiplied by 20%;

  ii.     In the event 2023 EBITDA is equal to or greater than 115% of the 2022 EBITDA but less than 130% of 2022 EBITDA, the Period 3 Earn-Out Payment shall be an amount equal to 2023 EBITDA, multiplied by 7.0, multiplied by 20%;

  iii.     In the event 2023 EBITDA is equal to or greater than 100% of the 2022 EBITDA but less than 115% of 2022 EBITDA, the Period 3 Earn-Out Payment shall be an amount equal to 2023 EBITDA, multiplied by 6.0, multiplied by 20%; or

  iv.     In the event 2023 EBITDA is less than 100% of 2022 EBITDA, the Period 3 Earn-Out Payment shall be an amount equal to 2023 EBITDA, multiplied by 4.0, multiplied by 20%.

  jj.     “Period 4” means the calendar year ended December 31, 2024.

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  kk.    “Period 4 Earn-Out Payment” shall be an amount calculated as follows:

  i.     In the event 2024 EBITDA is equal to or greater than 130% of 2023 EBITDA, the Period 4 Earn-Out Payment shall be an amount equal to 2024 EBITDA, multiplied by 8.0, multiplied by 29%;

  ii.     In the event 2024 EBITDA is equal to or greater than 115% of the 2023 EBITDA but less than 130% of 2023 EBITDA, the Period 4 Earn-Out Payment shall be an amount equal to 2023 EBITDA, multiplied by 7.0, multiplied by 29%;

  iii.     In the event 2024 EBITDA is equal to or greater than 100% of the 2023 EBITDA but less than 115% of 2023 EBITDA, the Period 4 Earn-Out Payment shall be an amount equal to 2024 EBITDA, multiplied by 6.0, multiplied by 29%; or

  iv.     In the event 2024 EBITDA is less than 100% of 2023 EBITDA, the Period 4 Earn-Out Payment shall be an amount equal to 2024 EBITDA, multiplied by 4.0, multiplied by 29%.

  ll.      “Purchase Agreement” has the meaning set forth in the recitals.

  mm.  “Realized EBITDA Percentage” means, for the applicable Earn-Out Period, a percentage equal to 100 percent less one percentage point for every one full percentage point that EBITDA for such Earn-Out Period is less than either (i) the 2021 EBITDA Target for purposes of Period 1 Earn-Out Payment or (ii) the 2022 EBITDA Target for purposes of the Period 2 Earn-Out Payment.  For example, if 2021 EBITDA is 80.2 percent of the 2021 EBITDA Target, then the Realized EBITDA Percentage for such Earn-Out Period would be 81%. 

  nn.   “Response Date” has the meaning set forth in Section ‎2(a).

  oo.   “Seller(s)” has the meaning set forth in the recitals.

  pp.   “Seller Representative” has the meaning set forth in the preamble.

  qq.  “SFRS” means the Financial Reporting Standards and Interpretations of Financial Reporting Standards issued by the ASC, as may be amended from time to time, as consistently applied by the Company (to the extent in accordance with SFRS).

  2. Earn-Out Determination.  

  a.     As promptly as practical after the end of an Earn-Out Period, but not later than 90 calendar days after the last day of the applicable Earn-Out Period, Buyer will prepare and deliver, or cause to be prepared and delivered, to the Seller Representative, a written statement setting forth (i) the Buyer’s calculation (supported by a breakdown in reasonable detail) of EBITDA for such Earn-Out Period, and (ii) based upon Buyer’s calculation of EBITDA, the applicable Earn-Out Payment owing with respect to such Earn-Out Period (each, an “Earn-Out Statement”).

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  b.     Dispute.  The Seller Representative will have 20 Business Days from its receipt of each Earn-Out Statement (the “Objection Period”) to review the applicable Earn-Out Statement. Upon the expiration of the applicable Objection Period, the Seller Representative will be deemed to have accepted (and will be deemed to have waived all rights with respect to), and will be bound by, the applicable Earn-Out Statement and the calculation of any Earn-Out Payment set forth therein, unless the Seller Representative has notified the Buyer in writing of its disagreement with the applicable Earn-Out Statement prior to the expiration of the applicable Objection Period (the “Objection Notice”), specifying each disputed item (each, a “Disputed Item”) and setting forth in reasonable detail the basis for each dispute.  The Buyer will have 20 Business Days from the date on which it receives the Objection Notice (the date on which such twenty-day period ends, the “Response Date”) to review and respond in good faith to such Objection (“Buyer Response Notice”).  To the extent the Buyer and the Seller Representative are able to negotiate in good faith mutually agreeable resolutions for each Disputed Item, the applicable Earn-Out Statement will be modified as necessary to reflect such mutually agreed resolution(s).  If the Buyer and the Seller Representative are able to resolve all Disputed Items, the applicable Earn-Out Statement and the calculation of the Earn-Out Payment set forth therein, as modified by such resolutions, will be deemed final, non-appealable and binding among the Buyer, the Sellers and the Seller Representative for all purposes of this Agreement. 

  c.     Arbitration of Disputes.  If the Seller Representative and the Buyer are unable to resolve all Disputed Items within 20 Business Days after delivery of the Buyer Response Notice (or such longer period as may be mutually agreed by the Buyer and the Seller Representative) (the “Disputed Item Negotiation Period”), then all unresolved Disputed Items shall be submitted to the Independent Accountant, which shall be jointly engaged by the Buyer and the Seller Representative, to promptly review the applicable Earn-Out Statement and resolve the Disputed Items.  The Buyer and the Seller Representative will request that the Independent Accountant render its determination within 60 days following submission to it of such Disputed Items.  The scope of the disputes to be resolved by the Independent Accountant is limited to the Disputed Items.  In resolving any Disputed Item, the Independent Accountant (i) will determine the resolution of the Disputed Items for purposes of establishing the Company’s EBITDA for the corresponding Earn-Out Period, and the resulting Earn-Out Payment for such Earn-Out Period, each in accordance with the provisions of this Agreement, including the definitions, calculations and accounting rules set forth herein, (ii) may not assign a value to any item greater than the greatest value claimed for such item by either the Buyer or the Seller Representative or less than the smallest value claimed for such item by either the Buyer of the Seller Representative and (iii) will base its determination solely on written materials submitted by the Buyer and the Seller Representative (and not on any independent review).  Furthermore, the Parties acknowledge and agree that the Independent Accountant shall have the sole and exclusive authority to resolve the Disputed Items even if the resolution of legal issues is required to resolve the Disputed Items.  The Parties further agree that the Independent Accountant shall also have the sole authority to determine whether any such legal issues exist and, to the extent they do, to retain and consult with legal counsel of Independent Accountant’s choosing with respect to legal conclusions or judgments arising from the Disputed Items, provided that the Parties agree that such legal counsel shall not have any material commercial or professional relationship with any of the Parties.  The costs of any fees and expenses of the Independent Accountant will be borne in equal parts by the Buyer, on the one hand, and the Sellers, on the other hand. All determinations made by the Independent Accountant will be final, conclusive and binding on the Parties, absent fraud or 

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  manifest error on the part of the Independent Accountant, upon which the Independent Accountant will deliver to the Buyer and the Seller Representative a revised Earn-Out Statement setting forth the updated calculation of Company’s EBITDA for the applicable Earn-Out Period and the applicable Earn-Out Payment, as modified by the Independent Accountant’s final determinations, which will be deemed final, non-appealable and binding among the parties hereto for all purposes of this Agreement, and upon which a judgment may be rendered by a court of competent jurisdiction, and will not be subject to further appeal or review.  

  d.     Access.  For purposes of complying with the terms of this Section ‎2(d), each Party will cooperate with and make available to the other parties and its representatives (i) information, records, data and working papers, and (ii) will permit access to its facilities and personnel, upon advance written notice of not less than two Business Days and during normal business hours, in each case as may be reasonably required in connection with the analysis of the applicable Earn-Out Statement and the resolution of the Disputed Items so long as directly relevant to such analysis; provided, however, (A) in no event will any Party be required to produce information that cannot be provided by such Party through its respective accounting or Tax reporting principles, methods or policies and reporting systems in the Ordinary Course of Business, (B) the provision of any information or access pursuant to this Section ‎2(d) will be subject to execution of confidentiality agreements as requested by the applicable Party providing such information or access, and (C) nothing in this Section ‎2(d) will require any Party to disclose information that is subject to any applicable privilege, including, without limitation, attorney-client privilege or the privilege of attorney work product.  

  3. Payments.  

  a.     Earn-Out Payments.  The Earn-Out Payments, if any is owing pursuant to the terms of this Agreement, shall be paid by Buyer in accordance with the following schedule: 

  i.    The Period 1 Earn-Out Payment (if any) shall be paid by Buyer on or before April 30, 2023; 

  ii.    The Period 2 Earn-Out Payment (if any) shall be paid by Buyer on or before April 30, 2023; 

  iii.    The Period 3 Earn-Out Payment shall be paid by Buyer on or before April 30, 2025; and

  iv.    The Period 4 Earn-Out Payment shall be paid by Buyer on or before April 30, 2025;

  provided, however, that if the Seller Representative has timely delivered an Objection Notice with respect to the Earn-Out Statement for Earn-Out Period and the Disputed Item identified in the Objection Notice has not been resolved pursuant to Section 2 hereof on or before the date on which the applicable Earn-Out Payment is to be paid pursuant to Section 3(a)(i), (ii), (iii) or (iv), then (y) the Buyer will promptly (and in any event, within 10 days) following conclusion of the Disputed Item Negotiation Period pay to Sellers the undisputed portion of the applicable Earn-Out Payment set forth in the Earn-Out Statement (the “Interim Earn-Out Payment”) and (z) the Buyer will promptly (and in any event within 30 days) following final resolution of such Disputed Item and 

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  final determination of the applicable Earn-Out Payment pursuant to Section 2 hereof, pay to Sellers the applicable Earn-Out Payment less the applicable Interim Earn-Out Payment. Each Earn-Out payment shall be paid to the Sellers in accordance with their underlying Participation Percentage (as defined in the Purchase Agreement) pursuant to wire instructions delivered by the Seller Representative to the Buyer on not less than three (3) Business Days’ advance written notice.

  b.     Set-Off.  The Sellers and the Seller Representative acknowledge and agree that the Earn-Out Payments payable pursuant to this Agreement are subject to set-off pursuant to Section 9.4 of the Purchase Agreement.  Accordingly, in the event Buyer delivers a Claims Notice (as defined in the Purchase Agreement), the Buyer shall be entitled to set-off and retain any Earn-Out Payment, the amount of Losses (as defined in the Purchase Agreement) set forth in such Claims Notice pending final resolution of the Liability Claim (as defined in the Purchase Agreement) set forth in such Claims Notice, at which time the Buyer shall be entitled to retain the amount of Losses finally determined with respect to such Liability Claim and pay the balance of any amounts retained by the Buyer to the Sellers pursuant to this Agreement.  Additionally, in the event the Buyer and the Seller Representative agree upon a Downward Adjustment Amount (as defined in the Purchase Agreement) pursuant to Section 2.3(f)(i) of the Purchase Agreement, the Buyer shall be entitled to set-off and retain an amount equal to the Downward Adjustment Amount against any Earn-Out Payment.  

  c.     No Certificate; No Ownership Interest.  Each Seller’s right to receive the Earn-Out Payments shall not be represented by a certificate or other instrument, shall not represent an ownership interest in Buyer, any of the Acquired Companies or any of their respective Affiliates, and shall not entitle the Sellers to any rights common to any holder of Buyer’s, any Acquired Companies’, or any of their respective Affiliates common stock or other ownership interests.  The right to receive the Earn-Out Payments shall not bear any interest unless the Earn-Out Payments are not paid within the agreed period of time (which amounts will bear interest at the simple rate of three percent (3%) per annum, non-compounding).  Neither Buyer nor the Seller Representative nor the Sellers shall take any action which may cause the Earn-Out Payments payable to the Sellers to be treated as anything other than purchase price consideration for the Shares for Tax purposes and for the purposes of SFRS.

  4. Earn-Out Period Operations.  

  a.   Board of Directors.  From and after the closing of the transactions contemplated by the Purchase Agreement, the Buyer shall control the Board of the Company and the constituent boards of each of the Acquired Companies, and shall appoint a majority of the members to each such board.  From and after the closing through the conclusion of the final Earn-Out Period (including with respect to calculation of the Earn-Out Acceleration (as defined below)), the Buyer acknowledges and agrees that the Sellers shall be entitled to designate up to two (2) members of the Board of the Company (each, a “Seller Director”) and Buyer hereby agrees to vote its shares to appoint such Seller Directors to the Board of the Company. The Chairman of the Board shall be appointed by the Buyer.  

  b.   Chief Executive Officer.  The Chief Executive Officer will have the management authority to operate the day-to-day aspects of the Business pursuant to the approved Annual Budget (as defined below); provided, however, that the Chief Executive Officer may not 

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  cause any Acquired Company to exceed any particular expense line-item in the Annual Budget without the approval of the Board.  Pieter-Jan De Kroon shall initially be the Chief Executive Officer of the Company; provided, however that subject to the provisions of Section 5 hereof, he may be removed as Chief Executive Officer by the Board at any time. 

  c.     Chief Financial Officer and Accounting Controls.  The Chief Financial Officer of the Acquired Companies will be identified and proposed by the Buyer, after consultation with the Chief Executive Offer, to the Board.  The Chief Financial Officer shall report to the Board and to the Chief Executive Officer of the Company.  The costs and expenses related to the appointment and maintenance of a Chief Financial Officer and his/her finance team shall be managed in accordance with the provisions of the Annual Budget.  The Parties acknowledge and agree that the Company, the Chief Executive Officer of the Company and the Chief Financial Officer of the Company will comply with any audits, internal controls, accounting and financial reporting protocols established by the Buyer and approved by the Board.

  d.     Covenants.  Except as expressly set forth in this Agreement, the Parties acknowledge and agree that no Party is making any implied or express covenant relating to the operation of the Business after the date hereof to any other Party.

  e.     Annual Budget.  Not later than 90 days prior to the commencement of each calendar year, the Chief Executive Officer will submit to the Board a draft annual budget and business plan update (the “Annual Budget”) of the Business for the following calendar year, which draft Annual Budget shall include, among other things, (i) a description of all capital expenditures to be undertaken and the related investments and costs, (ii) a description of all anticipated acquisition or disposition of businesses or assets outside of the Ordinary Course of Business, (iii) a comprehensive and detailed summary of all Expenses expected to be incurred for the calendar year, including all Expenses related to the appointment and maintenance of the Chief Financial Officer and his/her finance team, and (iv) a reasonable estimate of all Net Revenues expected to be received during such calendar year. The Chief Executive Officer of the Group will collaborate in good faith with the Board on the preparation of the applicable Annual Budget, provided that the Board of Directors will have the authority to approve the final applicable Annual Budget.  In the event the Board and the Chief Executive Officer are unable in good faith to agree upon an Annual Budget, the Annual Budget for the prior year will remain in place and applicable to the then-current year.  The Annual Budget for calendar year 2021 is set forth in that certain letter agreement delivered by the Sellers to the Buyer on June __, 2021.

  5. Acceleration of Earn-Out Payments.  Upon the occurrence of an Acceleration Event (as defined below), the Seller Representative may elect to accelerate the Earn-Out Payments (an “Earn-Out Acceleration”) and in connection therewith receive an amount determined in accordance with the provisions of Schedule 2, attached hereto; provided, however, that the Seller Representative may not elect to accelerate any portion of the Earn-Out Payment with respect to any Earn-Out Period which has concluded prior to the occurrence of the Acceleration Event.  The Seller Representative will have a period of sixty (60) days following the  occurrence of the Acceleration Event (the “Earn-Out Acceleration Period”) to elect an Earn-Out Acceleration by delivering written notice of such election to the Buyer (an “Earn-Out Acceleration Notice”).  In the event an Earn-Out Acceleration Notice has not been delivered prior to the conclusion of the Earn-Out Acceleration Period, Seller Representative, on behalf of the Sellers, will be deemed to 

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  have elected not to exercise the Earn-Out Acceleration.  The Accelerated Earn-Out Payment, as defined and calculated pursuant to Schedule 2, attached hereto, shall be paid to the Sellers promptly (and in any event within thirty (30) days) following final determination of the Accelerated Earn-Out Payment, in accordance with their underlying Participation Percentage pursuant to wire instructions delivered by the Seller Representative to Buyer on not less than three (3) Business Days’ advance written notice.  For purposes hereof, the term “Acceleration Event” shall mean: (a) the dismissal of Pieter-Jan De Kroon as Chief Executive Officer of the Company without Cause (as such term is defined in the underlying employment agreement between Pieter-Jan De Kroon and the Company), (b) a sale of more than 50% of the outstanding equity in one or more of the Acquired Companies or of all or substantially all of the assets of one or more Acquired Companies, (c) a Competition Event (as defined below), (d) (save in case of an insolvency event) any action for the winding up or dissolution of the Company or any active Acquired Company.  Following payment of the Accelerated Earn-Out Payment, the Sellers will have no further right to, and Buyer will be under no further obligation to make, any further Earn-Out Payments under this Agreement.  A “Competition  Event” means the closing of an acquisition by Guarantor, directly or indirectly, of any entity or business that markets and/or sells digital advertising on a third party publisher digital platform that is a Material Supplier of the Acquired Companies as of the Closing Date in an location within the countries in which the Business operates as of the Closing (i.e., Singapore, Thailand, the Philippines, Vietnam, India, Malaysia or Indonesia).

  6. Limitation on Liability.  Except for claims determined by a court of competent jurisdiction to involve fraudulent or intentional misrepresentation, neither Buyer nor its Affiliates shall have any liability or indemnification obligation from and against any Losses, in the aggregate, directly resulting from, directly relating to, or caused by any breach of Buyer or its Affiliates under this Agreement in excess of the aggregate amount of all Earn-Out Payments as calculated in accordance with the terms of this Agreement.  Notwithstanding anything to the contrary in this Agreement, the Sellers do not have any individual rights to make a claim under this Agreement against Buyer or its Affiliates.  Any and all claims made on behalf of the Sellers may be made only by the Seller Representative. The Sellers will not be entitled to liability or indemnification for consequential damages, indirect damages, exemplary damages, incidental damages, punitive damages, special damages or other similar damages.

  7. Confidentiality.  The Seller Representative acknowledges that the Earn-Out Statements, the information and data furnished to them or their representatives in accordance therewith or pursuant to any dispute thereof and this Agreement are confidential (the “Confidential Information”) and agrees not to disclose any Confidential Information, or any summary thereof or work product derived therefrom, to any third party (i) without Buyer’s express written consent or (ii) unless pursuant to court order or judicial process or as necessary under applicable law.  When such disclosures are made, each such Party shall advise the third party or parties of the confidentiality of the information and request that they too accord the information confidential treatment.  All such Confidential Information shall be used exclusively for the purpose of evaluating the Earn-Out Statement and any dispute arising out of such Earn-Out Statement and no other purpose, and each such Party agrees, upon final determination of the Earn-Out Statement and any resulting Earn-Out Payment, to return all such Confidential Information delivered to it or its representatives or destroy the same and certify to its destruction under penalty of perjury.  The term Confidential Information does not include information or data which is or becomes generally available to the public, other than through a breach hereof.  

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  8. Guaranty.  To include Sellers to enter into the Purchase Agreement and this Agreement, which will provide substantial benefit to Guarantor, Guarantor hereby absolutely, unconditionally and irrevocably guarantees to the Sellers, as an independent continuing obligation, the prompt and complete payment of each and every obligation of the Buyer under this Agreement, when and as due, as primary obligor and not merely as surety, for the benefit of each of the Sellers. 

  9. Miscellaneous.

  a.    Seller Representative.  The rights and obligations of the Seller Representative with respect to the Sellers are contained in the Purchase Agreement.  In the event that the Sellers designate a successor to the Seller Representative in accordance with the Purchase Agreement, notwithstanding anything to the contrary contained herein, such successor shall automatically be substituted for the Seller Representative hereunder and shall be deemed to be the Seller Representative for all purposes of this Agreement.

  b.    Assignment.  Neither this Agreement nor any right, interest or obligation under this Agreement may be assigned or delegated by any Party by operation of Law or otherwise without the prior written consent of the other parties to this Agreement and any attempt to do so will be void, except that the Buyer may assign and delegate any or all of its rights, interests and obligations under this Agreement to any Affiliate as long as such Affiliate agrees in writing to be bound by all of the terms, conditions and provisions contained in this Agreement, but no such assignment or delegation will relieve the Buyer of its obligations under this Agreement if such assignee does not perform such obligations. The terms, conditions and provisions of this Agreement shall inure to the benefit of, and be binding upon, the respective successors, permitted assigns, heirs, executors and administrators of the parties to this Agreement.

  c.    Headings.  The headings contained in this Agreement are included for purposes of convenience only, and do not affect the meaning or interpretation of this Agreement. 

  d.    Entire Agreement.  This Agreement, the Purchase Agreement and the other Ancillary Agreements, including all exhibits, annexes and schedules hereto and thereto, constitute the entire agreement of the parties hereto with respect to the subject matter hereof and supersede all prior agreements, term sheets, letters of interest, correspondence (including email) and undertakings, both written and oral, between any of the Acquired Companies, the Seller Representative or any Seller, on the one hand, and Buyer, on the other hand, with respect to the subject matter hereof.

  e.    Amendment.  Buyer and the Seller Representative (on behalf of all of the Sellers) may cause this Agreement to be amended at any time by execution of an instrument in writing signed on behalf of Buyer and the Seller Representative (on behalf of all of the Sellers).

  f.    Extension; Waiver.  Any Party may, to the extent legally allowed, (a) extend the time for the performance of any of the obligations or other acts of the other parties, (b) waive any breaches of any representations and warranties made to such Party herein or in any document delivered pursuant hereto, and (c) waive compliance with any of the agreements or conditions for the benefit of such Party contained herein.  In addition, the Seller Representative (on behalf of all the Sellers) and Buyer may (i) extend the time for the performance of any of the obligations or 

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  other acts of the other, (ii) waive any breaches of the representations and warranties made to Buyer (in the case of a waiver by Buyer) or made to the Sellers (in the case of a waiver by the Seller Representative (on behalf of the Sellers)) herein or in any document delivered pursuant hereto, and (iii) waive compliance with any of the agreements or conditions for the benefit of Buyer (in the case of a waiver by Buyer) or made to the Sellers (in the case of a waiver by the Seller Representative (on behalf of the Sellers)).  Any agreement on the part of a Party to any such extension or waiver will be valid only if set forth in an instrument in writing signed on behalf of such Party.  Without limiting the generality or effect of the preceding sentence, no delay in exercising any right under this Agreement will constitute a waiver of such right, and no waiver of any breach or default will be deemed a waiver of any other breach or default of the same or any other provision in this Agreement.

  g.    Construction.  The parties have participated jointly in the negotiation and drafting of this Agreement.  In the event an ambiguity or question of intent or interpretation arises, then this Agreement shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue of the authorship of any of the provisions of this Agreement.  Unless otherwise indicated to the contrary herein by the context or use thereof:  (a) any reference to any federal, state, local or foreign statute or law will be deemed also to refer to all rules and regulations promulgated thereunder; (b) all references to the preamble, recitals, sections, articles, exhibits or schedules are to the preamble, recitals, sections, articles, exhibits or schedules of or to this Agreement; (c) the words “herein,” “hereto,” “hereof” and words of similar import refer to this Agreement as a whole and not to any particular section or paragraph hereof; (d) masculine gender shall also include the feminine and neutral genders, and vice versa; (e) words importing the singular shall also include the plural, and vice versa; (f) the words “include,” “including” and “or” shall mean without limitation by reason of enumeration; and (g) all references to “$” or dollar amounts are to lawful currency of the United States of America.  Where any amounts to be calculated pursuant to this Agreement are wholly or partly denominated in any currency other than United States Dollars, then such amounts, to the extent so denominated, shall be calculated in the equivalent amount of United States Dollars using the exchange rate published by The Wall Street Journal on the date that is (i) three (3) Business Days prior to the funding date or (ii) the date such calculation is to be made (for the avoidance of doubt, in respect of Working Capital – using the exchange rate published by the The Wall Street Journal on the Closing Date).

  h.    Severability.  If any provision of this Agreement or the application of any provision of this Agreement to any Party or circumstance is, to any extent, adjudged invalid or unenforceable, then the application of the remainder of such provision to such Party or circumstance, the application of such provision to other parties or circumstances, and the application of the remainder of this Agreement shall not be affected thereby. The Parties shall negotiate to replace any provision of this Agreement adjudged invalid or unenforceable with another valid and enforceable provision that would implement the original intent of the Parties to the maximum extent permitted by applicable Law.

  i.    Notices.  All notices and other communications under this Agreement shall be in writing and shall be deemed given in accordance with the Notice section of the Purchase Agreement, which is incorporated herein by reference.  

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  j.    Third Party Beneficiaries.  Each Party intends that this Agreement does not benefit or create any right or cause of action in or on behalf of any Person other than the parties. 

  k.    Further Assurances.  From and after the date hereof, at the request of Buyer, the Seller Representative (on behalf of the Sellers) will execute and deliver or cause to be executed and delivered to Buyer such instruments and other documents as Buyer may request in order to implement the transactions contemplated by this Agreement. 

  l.    Governing Law.  This Agreement and any non-contractual obligations arising out of or in connection with this Agreement shall be governed by and construed in accordance with the laws of Singapore.

  m.    Arbitration.  Each party agrees that any dispute arising out of or in connection with this Agreement or any document or transaction in connection with this Agreement (including any question as to the validity, existence or termination of this Agreement and/or this Section ‎9(m)), shall be referred to and finally resolved by arbitration in Singapore to the exclusion of the ordinary courts, in accordance with the Arbitration Rules of the Singapore International Arbitration Center (“SIAC”) for the time being in force, which rules are deemed to be incorporated by reference in this clause. The set of the arbitration shall be in Singapore and the arbitration shall be conducted in English by a single arbitrator appointed in accordance with the rules of SIAC. The arbitral award made and granted by the arbitrator(s) shall be final, binding and incontestable, may be enforced by a party against the assets of the other party wherever those assets are located or may be found and may be used as a basis for judgment thereon in Singapore or elsewhere.  

  n.    Counterparts; Electronic Transmission.  This Agreement may be executed in separate counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.  Delivery of an executed signature page to this Agreement by facsimile or other electronic transmission (including documents in Adobe PDF format) will be effective as delivery of a manually executed counterpart to this Agreement.

  [Signature Page Follows]

   

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  IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed effective as of the date first written above.

   

  BUYER:

  ENTRAVISION DIGITAL HOLDINGS, LLC

  By:	/s/ Walter Ulloa	

  	Name:	Walter Ulloa

  	Title:	Chairman and Chief Executive 	Officer
of Entravision Communications 	Corporation, 
its Sole Member and Manager

   

   

   

  GUARANTOR:

   

  ENTRAVISION COMMUNICATIONS CORPORATION

   

   

  By:	/s/ Walter Ulloa	

  	Name:	Walter Ulloa

  	Title:	Chairman and Chief Executive 	Officer

   

   

   

   

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  SELLERS:

   

  /s/ Pieter-Jan de Kroon				
PIETER-JAN DE KROON, an individual

   

   

  /s/ Luc Theodoor Franciscus Maria de Kroon	
LUC THEODOOR FRANCISCUS MARIA DE KROON, an individual

   

   

  /s/ Jim Dorian Kramp					
JIM DORIAN KRAMP, an individual

   

  SELLER REPRESENTATIVE:

   

  /s/ Jim Dorian Kramp					
JIM DORIAN KRAMP, an individual

   

   

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  SCHEDULE 2

  ACCELERATED EARN-OUT PAYMENT

   

  In the event the Seller Representative, on behalf of the Sellers, timely elects an Earn-Out Acceleration, the amount  payable to the Sellers in connection with such Earn-Out Acceleration (the “Accelerated Earn-Out Payment”) shall be calculated as follows: 

   

  If Period 1 has not concluded as of the occurrence of the Acceleration Event, an amount equal to the 2020 EBITDA, plus 

   

  If Period 2 has not concluded as of the occurrence of the Acceleration Event, an amount equal to the 2020 EBITDA, plus
 

  An amount calculated as follows:
 

  oIf the EBITDA for the most recently completed four (4) calendar quarters immediately prior to the occurrence of the Acceleration Event (the “Acceleration Event EBITDA”) is equal to or greater than 130% of the EBITDA for the prior four (4) calendar quarters (the “Prior Period EBITDA”), an amount equal to the Acceleration Event EBITDA, multiplied by the EBITDA Multiplier (as defined below), multiplied by 49%; or 

   

  oIf the Acceleration Event EBITDA is equal to or greater than 115% of the Prior Period EBITDA but less 130% of the Prior Period EBITDA, an amount equal to the Acceleration Event EBITDA, multiplied by 7.0, multiplied by 49%; or

   

  oIf the Acceleration Event EBITDA is equal to or greater than 100% of the Prior Period EBITDA but less 115% of the Prior Period EBITDA, an amount equal to the Acceleration Event EBITDA, multiplied by 6.0, multiplied by 49%; or

   

  oIf the Acceleration Event EBITDA is less than 100% of the Prior Period EBITDA, an amount equal to the Acceleration Event EBITDA, multiplied by 4.0, multiplied by 49%

   

  In the event that the Seller Representative, on behalf of the Sellers, timely elects an Earn-Out Acceleration during the calendar year 2024, the multiple in the above formula will not be 49% but 20%. 

   

  Promptly (and in any event within sixty (60) following receipt of an Earn-Out Acceleration Notice, the Buyer will deliver to the Seller Representative a statement setting forth the Accelerated Earn-Out Payment.  Any disputes with respect to the Buyer’s determination of the Accelerated Earn-Out Payment shall be handled pursuant to the procedures and timelines set forth in Sections 2(b) – (d) hereof. 

   

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  The “EBITDA Multiplier” shall be (i) 9.0 if the Acceleration Event occurs prior to the conclusion of Period 2 or (ii) 8.0 if the Acceleration Event occurs after the conclusion of Period 2. 

   

   

   

   

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