Document:

Exhibit 10.1 

EMPLOYMENT
AGREEMENT

 

This
EMPLOYMENT AGREEMENT (“Agreement”) is made and dated as of October 1, 2020, between INTRICON CORPORATION, a Pennsylvania
corporation (the “Company”), and Scott Longval (“Executive”).

 

Background 

 

Executive
served as the Executive Vice President, Chief Operating Officer and Chief Financial Officer of the Company through September 30,
2020 and became the President and Chief Executive Officer of the Company effective October 1, 2020. Executive wishes to remain
employed by the Company pursuant to the terms and conditions contained in this Agreement. 

 

NOW,
THEREFORE, in consideration of the mutual agreements contained herein and intending to be legally bound, the Company agrees to
continue to employ Executive, and Executive agrees to continue his employment with the Company, under the following terms and
conditions: 

 

SECTION
1. CAPACITY AND DUTIES 

 

1.1       Title
and Responsibilities. Executive served as Executive Vice President, Chief Operating Officer and Chief Financial Officer
of the Company through September 30, 2020 and was promoted to and serves as President and Chief Executive Officer of the Company
effective October 1, 2020 (the “Promotion Date”). Executive also was appointed to the Board of Directors of the Company
(“Board of Directors”) effective as of the Promotion Date. Executive shall serve as an officer and director of the
Company’s subsidiaries consistent with this Section, subject to the discretion of the Board of Directors and the boards
of directors of its subsidiaries. Executive shall perform such duties and have such authority consistent with his position and
as may from time to time be specified by the Board of Directors. Executive also shall continue to serve as Chief Financial Officer
of the Company until a replacement for such position is appointed by the Board of Directors. 

 

1.2       Full
Business Efforts. Executive shall devote his full working time, energy, skill and best efforts to the performance of his
duties hereunder, in a manner that complies with the Company’s rules and policies and will faithfully and diligently further
the business and interests of the Company. Executive shall not be employed by, participate or engage in or otherwise be a part
of the management or operation of any business enterprise other than the Company and its subsidiaries without the prior written
consent of the Board of Directors, which may be granted or withheld in the sole discretion of the Board of Directors. 

 

SECTION
2. TERM OF EMPLOYMENT 

 

2.1       Term.
The term of Executive’s employment with the Company shall continue until terminated in accordance with Section 4 (Termination
of Employment) (the “Term”). 

 

     

     

    

 

SECTION
3. COMPENSATION 

 

3.1       Base
Salary. Executive’s gross annual salary effective as of the Promotion Date shall be $400,000. Executive’s
annual salary shall be adjusted, but not decreased (other than as part of an across-the-board salary reduction that applies in
the same manner to all senior executives), from time to time in the sole discretion of the Board of Directors or the Compensation
Committee of the Board of Directors. Executive’s annual salary, as determined in accordance with this Section, is referred
to as his “Base Salary,” and shall be paid in installments in accordance with the Company’s then current regular
payroll practices.

 

3.2       Performance
Bonuses. Executive shall be entitled to a performance bonus of up to such percentage of his Base Salary as the Compensation
Committee of the Board of Directors may determine. 

 

3.3       Employee
Benefits. During the Term, Executive shall be entitled to participate in the Company employee benefit plans and programs
available to similarly situated employees. On the date of this Agreement, Company shall issue Executive a grant of restricted
stock units under the 2015 Equity Incentive Plan equal to $200,000 divided by the closing price of the Company’s common
stock on the date of this Agreement. Such grant will vest in equal one-third annual installments beginning on the first anniversary
of the date of grant. 

 

3.4       Vacation.
During the Term, Executive shall be entitled to a paid vacation in accordance with the Company's then current vacation policy. 

 

3.5       Expense
Reimbursement. The Company shall reimburse Executive for all reasonable business expenses incurred in connection with
the performance of Executive’s duties for the Company, in accordance with the Company’s reimbursement policy. 

 

3.6       Annual
Physical. The Company shall reimburse Executive for the cost of an annual executive physical. 

 

SECTION
4. TERMINATION OF EMPLOYMENT 

 

4.1       Death
of Executive. If Executive dies during the Term, Executive’s employment shall terminate immediately and Company
shall only be obligated to pay to Executive’s estate amounts due and payable to Executive as of the date of Executive’s
death. If Executive’s spouse (if any) timely elects to continue health insurance coverage as a spouse and for eligible family
members under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) after Executive’s death, the Company
shall reimburse Executive’s spouse, on the first regularly scheduled payroll date of each month during the Section 4.1 COBRA
Period (as defined below), an amount equal to the percentage of Executive’s health care premium costs paid by the Company
as of the date of Executive’s death. “Section 4.1 COBRA Period” means the period beginning with the first day
of the calendar month following the date of Executive death and ending 24 months thereafter. 

 

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4.2       Disability
of Executive. If Executive becomes Disabled (as defined below), then the Board of Directors shall have the right to terminate
Executive’s employment upon 30 days’ prior written notice to Executive at any time during the continuation of such
Disability, in which event the Company shall not thereafter be obligated to make any further payments hereunder other than amounts
(including salary, bonuses, expense reimbursement, etc.) due and payable to Executive as of the date of such termination. If Executive
timely elects to continue health insurance coverage for Executive and his eligible family members under COBRA after Executive’s
termination of employment, the Company shall reimburse Executive, on the first regularly scheduled payroll date of each month
during the COBRA Period (as defined below), an amount equal to the percentage of Executive’s health care premium costs paid
by the Company as of the date of Executive’s termination. “COBRA Period” means the period beginning with the
first day of the calendar month following the date of Executive’s termination of employment and ending on the earlier of
(i) 18 months thereafter or (ii) the date Executive becomes eligible to receive health benefits from a new employer. Nothing in
this Agreement shall require Company to continue to pay any compensation to Executive for any period in which he is unable to
perform his duties hereunder due to physical or mental illness in excess of the Company’s paid sick leave policy period
(other than amounts due under any disability policy maintained by the Company). “Disability” of Executive or Executive
becoming “Disabled” means that Executive is or has been materially unable to perform his duties for 180 consecutive
days or for 180 days out of 360 consecutive days due to a physical or mental illness. Executive’s Disability shall be determined
in the reasonable judgment of the Board of Directors, provided, however, if Executive does not agree with a determination to terminate
his employment because of Disability, the question of Executive’s Disability shall be submitted to an impartial and reputable
physician selected by a mutual agreement of the parties or if the parties cannot agree on such physician, then each party shall
select a physician who shall make a determination, and if those two physicians have different opinions, then the two physicians
shall select a third physician and such third physician’s determination of Disability shall be binding on the parties. 

 

4.3       Termination
for Cause. Executive’s employment shall terminate immediately upon notice that the Board of Directors is terminating
Executive for Cause (as defined herein), in which event the Company shall not thereafter be obligated to make any further payments
hereunder other than amounts (including salary, expense reimbursement, etc., but excluding bonuses) due and payable to Executive
as of the termination. “Cause” means the following, provided that, in the case of circumstances described in clauses
(iv) through (vi) below, the Company shall have given written notice thereof to Executive, and Executive shall have failed to
remedy the circumstances as determined in the sole discretion of the Board of Directors within 30 days: 

 

(i)       fraud
or dishonesty in connection with Executive’s employment or theft, misappropriation or embezzlement of the Company’s
funds or other property; 

 

(ii)       conviction
of any felony, crime involving fraud or knowing misrepresentation, or of any other crime (whether or not such felony or crime
is connected with his employment) the effect of which in the reasonable judgment of the Board of Directors is likely to adversely
affect the Company or its affiliates; 

 

(iii)       material
breach of Executive’s obligations under this Agreement; 

 

(iv)       repeated
and consistent unauthorized failure of Executive to be present at work during normal business hours; 

 

(v)       willful
violation of any Company policy or any express lawful direction or requirement established by the Board of Directors, as determined
by a majority of Board of Directors; 

 

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(vi)       insubordination,
gross incompetence or misconduct in the performance of, or gross neglect of, Executive’s duties hereunder, as determined
by a majority of Board of Directors; or 

 

(vii)       use
of alcohol or other drugs which interfere with Executive’s performance of his duties, or use of any illegal drugs or narcotics. 

 

4.4       Termination
without Cause. 

 

(a)              If
Executive’s employment is terminated by the Company for any reason other than Cause or Executive’s death or Disability: 

 

(i)       the
Company shall pay Executive amounts (including salary, bonuses, expense reimbursement, etc.) due and payable to Executive as of
the termination of his employment and shall pay Executive an amount equal to Executive's then current Base Salary for a period
of two years after Executive’s termination of employment under this Section (“Severance Period”) payable in
installments in accordance with the Company’s then current regular payroll practices and dates, commencing as soon as administratively
practicable after the Release described in Section 4.9 (Release) becomes irrevocable as provided in Section 4.9, provided
that if the 60-day period described in Section 4.9 begins in one taxable year and ends in a second taxable year, such payments
shall not commence until the second taxable year; 

 

(ii)       in
the sole discretion of the Board of Directors, the Company may elect to pay Executive a prorated amount of the bonus that Executive
would have been entitled to, if he had remained employed, under Section 3.2, (Performance Bonuses), for the year in which
he was terminated (which, if determined to be paid by the Board, shall be payable as and when the bonus is paid to other similarly
situated officers); 

 

(iii)       if
Executive timely elects to continue health insurance coverage for Executive and his eligible family members under COBRA after
Executive’s termination of employment under this Section, the Company shall reimburse Executive, on the first regularly
scheduled payroll date of each month during the COBRA Period (as defined in Section 4.2), an amount equal to the percentage of
Executive’s health care premium costs paid by the Company as of the date of Executive’s termination of employment. 

 

(iv)       Executive
shall be entitled to have transferred to him any Company paid disability policy on the Executive, if the policy so permits, and
Executive shall then assume sole responsibility for payment of premiums on such disability policy; and 

 

(v)       Executive
shall be entitled to have transferred to him any Company paid life insurance policies on the Executive, if the policies so permit,
upon payment by the Executive to the Company of any cash surrender value of such policies, and Executive shall assume sole responsibility
for payment of premiums on such life insurance policies. 

 

(b)              Except
for the provisions of this Section and Section 4.8, Equity Awards, the Company shall have no further obligation to Executive
hereunder if Executive’s employment is terminated under this Section. 

 

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4.5       Voluntary
Termination. Executive may terminate his employment hereunder upon 60 days prior written notice to the Company. If Executive
voluntarily terminates his employment under this Section 4.5, the Company shall not be obligated to make any further payments
to Executive under this Agreement other than amounts (including salary, expense reimbursement, etc., but excluding bonuses) due
and payable to Executive as of his employment termination date. Additionally, the following provisions shall apply in the event
of a voluntary termination by Executive: 

 

(a)       Executive
shall be entitled to have transferred to him any Company paid disability policy on the Executive, if the policy so permits, and
Executive shall then assume sole responsibility for payment of premiums on such disability policy. 

 

(b)       Executive
shall be entitled to have transferred to him any Company paid life insurance policies on the Executive, if the policies so permit,
upon payment by the Executive to the Company of any cash surrender value of such policies, and Executive shall assume sole responsibility
for payment of premiums on such life insurance policies. 

 

4.6       Termination
following a Change of Control

 

(a)        If
a Change of Control (as hereinafter defined) of the Company occurs during the Term, and if Executive’s employment by the
Company is Involuntarily Terminated (as hereinafter defined) within one year after such Change of Control:

 

(i)       the
Company shall pay or cause to be paid to Executive, two year’s Base Salary at the rate being earned by Executive immediately
prior to the Change of Control or immediately prior to the Involuntary Termination, whichever is greater (the “Change of
Control Payment”), together with all accrued and unpaid bonus and Base Salary due and payable to Executive; provided, however,
that the Company need not make the Change of Control Payment if the Change of Control is an Asset Sale (as defined below) and
the purchaser in such Asset Sale or an affiliate of such purchaser offers to employ Executive commencing at the time of closing
of the Asset Sale in a position which does not represent a material diminution in the authority, duties, or responsibilities of
Executive at not less than the same rate of compensation (including Base Salary and good faith bonus potential) and a comparable
level of benefits as Executive was receiving immediately prior to the Asset Sale and agrees to employ Executive for at least a
one year period after the consummation of the Asset Sale.

 

(ii)       in
the sole discretion of the Board of Directors, the Company may elect to pay Executive a prorated amount of the bonus that Executive
would have been entitled to receive, if he had remained employed, under Section 3.2, Performance Bonuses, for the year
in which he was terminated (which, if determined to be paid, shall be payable as and when the bonus is paid to other similarly
situated officers);

 

(iii)       if
Executive timely elects to continue health insurance coverage for Executive and his eligible family members under COBRA after
Executive’s Involuntary Termination, the Company shall reimburse Executive, on the first regularly scheduled payroll date
of each month during the COBRA Period (as defined in Section 4.2), an amount equal to the percentage of Executive’s health
care premium costs paid by the Company as of the date of Executive’s termination. 

 

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(iv)       Executive
shall be entitled to have transferred to him any Company paid disability policy on the Executive, if the policy so permits, and
Executive shall then assume sole responsibility for payment of premiums on such disability policy.

 

(v)       Executive
shall be entitled to have transferred to him any Company paid life insurance policies on the Executive, if the policies so permit,
upon payment by the Executive to the Company of any cash surrender value of such policies, and Executive shall assume sole responsibility
for payment of premiums on such life insurance policies. 

 

(b)      The
Company agrees to use its commercially reasonable efforts to provide that any agreement concerning an Asset Sale shall include
a provision obligating the purchaser to fulfill any of the Company’s obligations to Executive under this Agreement if the
Company fails to fulfill said obligations.

 

(c)       Except
as otherwise provided in this Section, any Change of Control Payment or other sums to be paid to Executive under this Section
shall be paid in a lump sum as soon as administratively practicable after the Release described in Section 4.9 (Release)
becomes irrevocable as provided in Section 4.9, provided that if the 60-day period described in Section 4.9 begins in one taxable
year and ends in a second taxable year, such payment shall not commence until the second taxable year.

 

(d)      Notwithstanding
any other provision hereof, the obligations of the Company hereunder shall arise, if at all, only in connection with the first
Change of Control to occur after the date hereof; any second Change of Control which may occur following the first Change of Control
shall neither diminish nor trigger again the obligations set forth herein to the extent that such obligations may be applicable.

 

(e)      The
following terms used herein have the meanings set forth below:

 

(i)       “Asset
Sale” means the sale of the assets of the Company (including the stock or assets of subsidiaries of the Company) to which
are attributable 90% or more of the consolidated sales volume of the Company.

 

(ii)       “Change
of Control” of the Company means an “Asset Sale” or a “Change in Majority Stock Ownership.”

 

(iii)       “Change
in Majority Stock Ownership” means the acquisition by any “person” (as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934 (the “Exchange Act”), including any affiliate or associate as defined
in Rule 12b-2 under the Exchange Act of such person, or any group of persons acting in concert, other than the Company, any trustee
or other fiduciary holding securities under an employee benefit plan of the Company, or any corporation or other entity owned,
directly or indirectly, by the shareholders of the Company in substantially the same proportion as their ownership of capital
stock of the Company, of “beneficial ownership” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
of 50% or more of the combined voting power of the Company’s then outstanding securities.

 

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(iv)       “Involuntary
Termination” (or “Involuntarily Terminated”) means (a) any termination of employment of the Executive by Executive
following (i) a material diminution in the Executive's base compensation; (ii) a material diminution in the Executive's authority,
duties, or responsibilities; (iii) a material diminution in the authority, duties, or responsibilities of the supervisor to whom
the Executive is required to report, including a requirement that Executive report to a corporate officer or employee instead
of reporting directly to the Board of Directors; (iv) a material diminution in the budget over which the Executive retains authority;
(v) a material change in the principal geographic location at which the Executive must perform the services, unless such change
reduces the length of the Executive’s commute (measured either in time or miles); or (vi) any other action or inaction that
constitutes a material breach by the Company of this Agreement; or (b) any termination of the employment of Executive by the Company
other than for Cause, death or Disability; provided, however, that none of the events or conditions described in clause (a) of
this paragraph will constitute grounds for Involuntary Termination unless Executive: (i) shall have first provided written notice
to the Company of the existence of the condition proposed to be relied upon within 90 days of the initial existence of the condition,
(ii) shall have given the Company a period of 30 days during which it may remedy the condition, (iii) the Company shall have failed
to do so during such period and (iv) and Executive’s resigns his employment effective not later than 30 days following the
expiration of such remedy period. Anything in the Agreement to the contrary notwithstanding, Executive's employment with the Company
shall not be deemed terminated if he is transferred from one subsidiary of the Company to another subsidiary of the Company.

 

(f)       Upon
the occurrence of a Change of Control, the Company or its assignee waives, and will not assert, any right to set off the amount
of any claims, liabilities, damages or losses the Company or its assignee may have against any amounts payable by it to Executive
hereunder, and any amounts payable to Executive in respect of any period prior to the termination of this Agreement shall be paid
when due.

 

(g)      Nothing
in this Section shall diminish the Company’s right to terminate the employment of the Executive prior to a Change of Control
or impose any obligation to make any payment to the Executive in connection with any such termination otherwise than as provided
in the other Sections of this Agreement.

 

(h)      Nothing
in this Section shall prejudice Executive’s or his beneficiary’s right to receive any death, disability, pension,
401(k), qualified benefit, or other benefits under any contract or plan otherwise due to Executive upon or following termination.

 

4.7       Withholding;
Other Tax Matters. Any payment required under this Agreement shall be subject to all applicable requirements of law with
regard to withholding, filing, making of reports and the like.

 

4.8       Equity
Awards. If during the Term: (a) Executive’s employment is terminated by the Company for any reason other than for
Cause or (b) Executive terminates his employment under circumstances that would constitute an Involuntary Termination, then (i)
any stock options granted to Executive by the Company which are outstanding and have not been exercised by Executive prior to
Executive’s termination (X) if unvested, shall accelerate, vest and be exercisable on the later of the first anniversary
of the date of grant of such options and the date of termination of employment, and (Y) may be exercised by Executive or his legal
representative, estate, personal representative or beneficiary who acquired the right to exercise such options by bequest or inheritance,
as the case may be, for a period equal to the unexpired term of the stock option, notwithstanding Executive’s termination,
and (ii) any unvested restricted stock units granted to Executive by the Company shall automatically vest and become free of all
restrictions and conditions, less applicable withholdings, on the later of the first anniversary of the date of grant of such
restricted stock units and the date of termination of employment, notwithstanding Executive’s termination; provided, however,
that with respect to any acceleration of stock options or vesting of restricted stock units as a result of the termination of
Executive's employment under clause (a) or (b), it shall be a condition precedent to such acceleration that Executive shall have
complied with Section 4.9 (Release). For the avoidance of doubt, the treatment of Executive’s equity awards in the
event of a Change of Control shall be governed by the terms of the 2015 Equity Incentive Plan as it may be amended (or any applicable
successor plan). 

 

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4.9       Release.
In the event of the termination of Executive’s employment for any reason, the Company shall not be obligated to make
any payments or provide continuing benefits under this Agreement (other than payments and benefits earned by Executive and payable
prior to the date of termination) unless Executive executes and delivers within 60 days after presentation by the Company, and
does not revoke within 15 days after delivery by Executive, an agreement (“Release”) in a form acceptable to the Company,
that: (i) releases all claims by Executive against the Company and any of its subsidiaries and affiliates, through date of execution;
and (ii) requires Executive to indemnify the Company if he breaches the Release. 

 

SECTION
5. RESTRICTIVE COVENANTS. 

 

5.1       Confidentiality.
Executive acknowledges that the Company, which term includes subsidiaries and affiliates for purposes of this Section 5 (Restrictive
Covenants), is in a highly competitive business and he has been and will continue to be substantially involved with the Company’s
operations and management and has been and will continue to have access to trade secrets, proprietary information and other confidential
information relating to the Company and its customers, which provides the Company with a competitive advantage and which the Company
has a legitimate business interest in protecting. Executive therefore acknowledges a duty of confidentiality owed to the Company
and shall not, at any time during or after his employment by the Company, retain in writing, use, divulge, furnish, or make accessible
to any person or entity, without the express authorization of the Board of Directors, any trade secret, proprietary or confidential
information or knowledge of the Company obtained or acquired by him while so employed. All computer software, address books, rolodexes,
business cards, telephone lists, customer and prospect lists and preferences, pricing and sales information, contract forms, financial
and budgeting information, business strategies, marketing information, methods, catalogs, books, records, files and know-how acquired
while an employee of the Company are acknowledged to be the property of the Company and shall not be duplicated, removed from
the Company’s possession or premises or used other than in the pursuit of the Company’s business. Upon termination
of Executive’s employment for any reason (or, if earlier, upon request of the Company), Executive shall deliver to the Company
all Company property, including all electronic and paper documents, and copies and summaries thereof, which are in Executives
possession, custody or control. 

 

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5.2       Inventions
and Improvements. Executive shall promptly communicate to the Company all ideas, discoveries, inventions and business
opportunities which are or may be useful to the Company or its business. Executive acknowledges that all such ideas, discoveries,
inventions, and improvements which heretofore have been or are hereafter made, conceived, or reduced to practice by him at any
time during his employment with the Company and every item of knowledge relating to the Company’s business interests (including
business opportunities) heretofore or hereafter gained by him at any time during his employment with the Company are the property
of the Company, and Executive hereby irrevocably assigns all such ideas, discoveries, inventions, improvements, and knowledge
to the Company for its sole use and benefit, without additional compensation. The provisions of this Section 5.2 shall apply whether
such ideas, discoveries, inventions, improvements or knowledge were or are conceived, made or gained by him alone or with others,
whether during or after usual working hours, whether on or off the job, whether applicable to matters directly or indirectly related
to the Company’s business interests (including potential business interests), and whether or not within the specific realm
of his duties. It shall be conclusively presumed that ideas, discoveries, inventions, and improvements relating to the Company’s
business interests or potential business interests conceived by Executive during the six-month period following termination of
his employment are, for the purposes of this Agreement, conceived prior to termination of his employment hereunder. Executive
shall, upon request of the Company, but at no expense to Executive, at any time during or after his employment with the Company,
sign all instruments and documents reasonably requested by the Company and otherwise cooperate with the Company to protect its
right to such ideas, discoveries, inventions, improvements, and knowledge, including applying for, obtaining, and enforcing patents
and copyrights thereon in such countries as the Company shall determine. 

 

5.3       Non-competition
and Non-solicitation. During the term of Executive’s employment and for (a) one year after termination of employment,
or (b) two years after termination of employment if Executive is entitled to severance under Section 4.4 (Termination without
Cause) or a Change of Control Payment under Section 4.6 (Termination following a Change of Control), Executive shall
not directly or indirectly: (i) engage in any geographic market served by the Company or any of its subsidiaries in any activity
which competes in whole or in part with the products, services or activities of the Company at the time of such termination; (ii)
be or become a stockholder, partner, owner, officer, director or employee or agent of, or a consultant to or give financial or
other assistance to, any person or entity engaged in any such activities; (iii) seek in competition with the business of the Company
to procure orders from or do business with any customer or business relationship of the Company; (iv) solicit, or contact with
a view to, the engagement or employment by any person or entity of any person who is an employee or contractor of the Company;
(v) seek to contract with or engage (in such a way as to adversely affect or interfere with the business of the Company) any person
or entity which has been contracted with or engaged to manufacture, assemble, supply or deliver products, goods, materials or
services to the Company; or (vi) engage in or participate in any effort or act to induce any of the customers, vendors, manufacturers,
business contacts, consultants, or employees of the Company to take any action which might be disadvantageous to the Company;
provided, however, that nothing herein shall prohibit Executive and his affiliates from owning, as passive investors, in the aggregate
not more than 5% of the outstanding publicly traded stock of any corporation so engaged. The duration of Executive’s covenants
set forth in this Section shall be extended by a period of time equal to the number of days, if any, during which Executive is
in violation of the provisions hereof. To permit the Company to monitor compliance with this Section, Executive must advise the
Company of any new job, including the title and description of responsibilities and geographic scope, within fourteen (14) days
of receipt of acceptance of the offer. 

 

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5.4       Injunctive
and Other Relief. 

 

(a)       Executive
acknowledges and agrees that the covenants contained herein are reasonable to protect the Company’s legitimate business
interest, and fair in light of the Executive’s promotion, raise and equity award, which constitute adequate consideration.
Executive also acknowledges that the Company would be irreparably harmed by a breach of these covenants and that damages alone
would not be an adequate remedy and accordingly expressly agrees that, in addition to any other remedies which the Company may
have, the Company shall be entitled to injunctive or other equitable relief in any court of competent jurisdiction for any breach
or threatened breach of any such covenants by Executive. Nothing contained herein shall prevent or delay the Company from seeking,
in any court of competent jurisdiction, specific performance or other equitable remedies in the event of any breach or intended
breach by Executive of any of his obligations hereunder. 

 

(b)       Executive
understands that in addition to equitable relief available to the Company, the Company shall be entitled to monetary damages for
any period breach until the termination of such breach, in an amount deemed reasonable to cover all actual and consequential losses,
plus all monies received by Executive as a result of said breach and all costs and attorneys’ fees incurred by the Company
in enforcing this Agreement. If Executive should use or reveal to any other person or entity any confidential information, such
use or revelation is a continuing violation for as long as the confidential information is made available by Executive. 

 

(c)       If
any provision of this Section is found to be invalid or unenforceable by reason of its duration or scope, such term shall be reduced
to a duration or scope to the extent necessary to render it valid and enforceable. In such event, Executive shall negotiate in
good faith to provide the Company with lawful and enforceable protection that is most nearly equivalent to that found to be invalid
or unenforceable. 

 

(d)       The
existence of any claim or cause of action that Executive or any other person or entity may have against the Company shall not
constitute a defense or bar to the enforcement of this Section 5 (Restrictive Covenants). 

 

(e)       Nothing
in this Agreement prohibits Executive reporting possible violations of federal law or regulation to any governmental agency or
entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, Congress, the Occupational
Safety and Health Administration, and any agency Inspector General, or making other disclosures that are protected under the whistleblower
provisions of federal and state law or regulation, including the Defend Trade Secrets Act, which gives Executive immunity from
federal and state civil and criminal liability for disclosures of trade secrets. Under the Defend Trade Secrets Act, Executive
has the right to (i) disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney,
for the sole purpose of reporting or investigating a suspected violation of law, and (ii) disclose trade secrets in a document
filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure. Executive
does not need prior authorization from the Company to make any such reports or disclosures and are not required to notify the
Company that he has made such reports or disclosures. 

 

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SECTION
6. MISCELLANEOUS 

 

6.1       Duty
to Cooperate. At the request of the Company, Executive shall during and after his employment with the Company provide
reasonable assistance to the Company in connection with any litigation, audit, investigation or other proceeding or matter involving
the Company or any of its affiliates which Executive has any relevant knowledge or information. The Company will pay Executive
reasonable compensation as mutually agreed for any such services performed after the Term. The Company agrees that during the
Term that at all times it shall carry appropriate amounts of officers and directors liability insurance naming the Executive as
an insured party. 

 

6.2       Arbitration.
All claims and disputes relating to this Agreement or concerning Executive’s employment or termination, other than claims
by the Company of a breach of Section 5 (Restrictive Covenants), shall be conclusively resolved by arbitration in Minneapolis,
Minnesota, under the then existing rules of the American Arbitration Association. Judgment upon any award rendered may be entered
by either party in any court of competent jurisdiction. The cost of such arbitration shall be borne equally by the parties or
as otherwise directed by the arbitrators. 

 

6.3      Section
409A.  

 

(a)       Notwithstanding
anything to the contrary in this Agreement, no portion of the benefits or payments to be made under Section 4, Termination
of Employment, will be payable until Executive has a “separation from service” from the Company within the meaning
of Section 409A of the Internal Revenue Code of 1986 and its governing regulations and guidance (“Section 409A”).
In addition, to the extent compliance with the requirements of Treas. Reg. § 1.409A-3(i)(2) (or any successor provision)
is necessary to avoid the application of an additional tax under Section 409A to payments due to Executive upon or following his
“separation from service”, then notwithstanding any other provision of this Agreement (or any otherwise applicable
plan, policy, agreement or arrangement), any such payments that are otherwise due within six months following Executive’s
“separation from service” (taking into account the preceding sentence of this paragraph) will be deferred without
interest and paid to Executive in a lump sum immediately following the earlier to occur (i) the expiration of such six month period
or (ii) the death of Executive. For purposes of the application of Section 409A, each payment in a series of payments will be
deemed a separate payment. 

 

(b)       Notwithstanding
anything herein to the contrary or otherwise, except to the extent any expense, reimbursement or in-kind benefit provided to Executive
does not constitute a “deferral of compensation” within the meaning of Section 409A, (i) the amount of expenses eligible
for reimbursement or in-kind benefits provided to Executive during any calendar year will not affect the amount of expenses eligible
for reimbursement or in-kind benefits provided to Executive in any other calendar year, (ii) the reimbursements for expenses for
which Executive is entitled to be reimbursed shall be made on or before the last day of the calendar year following the calendar
year in which the applicable expense is incurred and (iii) the right to payment or reimbursement or in-kind benefits hereunder
may not be liquidated or exchanged for any other benefit. 

 

(c)       Anything
to the contrary herein notwithstanding, all benefits or payments provided by the Company to Executive that would be deemed to
constitute “nonqualified deferred compensation” within the meaning of Section 409A are intended to comply with, and
shall be interpreted as complying with, Section 409A and all benefits or payments provided by the Company to Executive that are
intended to be exempt from Section 409A shall be interpreted in a manner consistent with such intent. 

 

    11 

     

    

 

6.4         Notices.
All notices hereunder shall be in writing and shall be sufficiently given if hand-delivered, sent by documented overnight
delivery service or registered or certified mail, postage prepaid, return receipt requested or by telegram or email, receipt acknowledged,
addressed as set forth below or to such other person and/or at such other address as may be furnished in writing by any party
hereto to the other. Any such notice shall be deemed to have been given as of the date received, in the case of personal delivery,
or on the date shown on the receipt or confirmation therefor, in all other cases. Any and all service of process and any other
notice in any action, suit or proceeding-shall be effective against any party if given as provided in this Agreement; provided
that nothing herein shall be deemed to affect the right of any party to serve process in any other manner permitted by law. 

 

(a)            If
to the Company: 

 

IntriCon
Corporation

Arden
Hills Office

1260
Red Fox Road 

Arden
Hills, MN 55112 

Attention:
Sara Hill 

Chief
Human Resources Officer 

Email:
shill@intricon.com

 

(b)           If
to Executive: 

 

Scott
Longval

________________________

 

________________________ 

Email:
slongval@intricon.com 

 

6.5          Entire
Agreement; Modification; Advice of Counsel. 

 

(a)       This
Agreement constitutes the entire agreement between the parties hereto with respect to the matters contemplated herein and therein
and supersedes all prior agreements and understandings with respect thereto. Without limiting the generality of the foregoing,
this Agreement supersedes the Employment Agreement dated as of October 5, 2007, between Executive and the Company. No amendment,
modification, or waiver of this Agreement shall be effective unless in writing signed by both parties. Neither the failure nor
any delay on the part of any party to exercise any right or remedy hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any right or remedy preclude any other or further exercise of the same or of any other right or
remedy with respect to such occurrence or with respect to any other occurrence.

 

(b)       Executive
acknowledges that he has been afforded an opportunity to consult with his counsel with respect to this Agreement. The Company
agrees to reimburse Executive for the cost of consulting with counsel in an amount not to exceed $5,000. In view of the fact that
each of the parties hereto have been represented by their own counsel and this Agreement has been fully negotiated by all parties,
the legal principle that ambiguities in a document are construed against the draftsperson of that document shall not apply to
this Agreement. 

 

    12 

     

    

 

6.6       Governing
Law. This Agreement is made pursuant to, and shall be construed and enforced in accordance with, the laws of the State
of Minnesota and the federal laws of the United States of America, to the extent applicable, without giving effect to otherwise
applicable principles of conflicts of law. 

 

6.7       Headings;
Counterparts. The headings of paragraphs in this Agreement are for convenience only and shall not affect its interpretation.
This Agreement may be executed in counterparts (including by electronic or facsimile signature), each of which shall be deemed
to be an-original and all of which, when taken together, shall be deemed to constitute the same Agreement. 

 

6.9       Successors
and Assigns. This Agreement is intended to bind and inure to the benefit of and be enforceable by Executive and his heirs
and administrators and the Company and its successors and assigns (including, without limitation, by purchase of assets or stock,
or by merger, or otherwise). Executive may not assign Executive’s rights or delegate Executive’s obligations hereunder
without the prior written consent of the Company. The Company’s rights and obligations under this Agreement may be assigned
by the Company to the purchaser or its affiliate in connection with an Asset Sale if the Executive becomes an employee of the
purchaser or an affiliate immediately after the Asset Sale, in which case the assignee shall expressly assume and agree to perform
the obligations set forth in this Agreement in the same manner and to the same extent as if it were the Company and the Company
shall by virtue thereof and without further act be released from its obligations hereunder. 

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written intending to be legal bound.

 

	 	INTRICON CORPORATION
	 	 	 
	 	By	 /s/Sara Hill
	 	Name:	Sara Hill
	 	Title:	Vice President and Chief Human   Resources Officer
	 	 	 
	 	EXECUTIVE
	 	/s/Scott Longval
	 	Scott Longval

 

    13EX-10.1

 Exhibit 10.1 

CONFIDENTIAL 
 GORES HOLDINGS IV
SUBSCRIPTION AGREEMENT 
 This SUBSCRIPTION AGREEMENT is entered into this 22nd day of September, 2020 (this “Subscription
Agreement”), by and between Gores Holdings IV, Inc., a Delaware corporation (the “Company”), and the undersigned (“Subscriber”). 

WHEREAS, the Company concurrently herewith is entering into that certain Business Combination Agreement, dated as of the date hereof,
substantially in the form provided to Subscriber (the “Business Combination Agreement”), pursuant to which the Company will acquire SFS Holding Corp., on the terms and subject to the conditions set forth therein (the
“Transactions”); 
 WHEREAS, in connection with the Transactions, Subscriber desires to subscribe for and purchase from the
Company that number of shares of the Company’s Class A common stock, par value $0.0001 per share (“Class A Shares”) set forth on the signature page hereto (the “Acquired Shares”), for a purchase price
of $10.00 per share (“Per Share Purchase Price”), or the aggregate purchase price set forth on the signature page hereto (the “Purchase Price”), and the Company desires to issue and sell to Subscriber the Acquired
Shares in consideration of the payment of the Purchase Price by or on behalf of Subscriber to the Company on or prior to the Closing (as defined below); 

NOW, THEREFORE, in consideration of the foregoing and the mutual representations, warranties and covenants, and subject to the conditions,
herein contained, and intending to be legally bound hereby, the parties hereto hereby agree as follows: 
 1. Subscription. Subject to
the terms and conditions hereof, Subscriber hereby agrees to subscribe for and purchase, and the Company hereby agrees to issue and sell to Subscriber, upon the payment of the Purchase Price, the Acquired Shares (such subscription and issuance, the
“Subscription”). 
 2. Closing. 

a. The closing of the Subscription contemplated hereby (the “Closing”) is contingent upon the substantially concurrent
consummation of the Transactions and shall occur immediately prior thereto. Not less than seven (7) business days prior to the anticipated closing date of the Transactions (the “Closing Date”), the Company shall provide written
notice to Subscriber (the “Closing Notice”) specifying (i) the anticipated Closing Date, (ii) that the Company reasonably expects all conditions to the closing of the Transactions to be satisfied on a date that is not less
than seven (7) business days from the date of the Closing Notice and (iii) instructions for wiring the Purchase Price for the Acquired Shares. Subscriber shall deliver to the Company at least five (5) business days prior to the
anticipated Closing Date set forth in the Closing Notice, to be held in escrow until the Closing, the Purchase Price for the Acquired Shares by wire transfer of United States dollars in immediately available funds to the account specified by the
Company in the Closing Notice. On the Closing Date, the Company shall deliver to Subscriber (x) the Acquired Shares in book entry form, free and clear of any liens or other restrictions (other than those arising under this Subscription
Agreement or state or federal securities laws), in the name of the Subscriber and (y) not later than one (1) business day after the Closing Date, written notice from the transfer agent of the Company evidencing the issuance to

 
Subscriber of the Subscribed Securities on and as of the Closing Date, and the Purchase Price shall be released from escrow automatically and without further action by the Company or Subscriber.
In the event the Closing does not occur on the anticipated Closing Date set forth in the Closing Notice, the Company shall promptly (but not later than one (1) business day thereafter) return the Purchase Price to Subscriber. 

b. The Closing shall be subject to the conditions that, on the Closing Date: 

(i) no suspension of the qualification of the Acquired Shares for offering or sale or trading in any jurisdiction, or initiation or
threatening in writing of any proceedings for any of such purposes, shall have occurred; 
 (ii) all representations and warranties of the
Company and Subscriber contained in this Subscription Agreement shall be true and correct in all material respects as of the Closing Date, each party shall have performed, satisfied and complied in all material respects with its agreements hereunder
required to be performed, satisfied or complied with by it at or prior to Closing, and consummation of the Closing shall constitute a reaffirmation by each of the Company and Subscriber of each of the representations, warranties and agreements of
each such party contained in this Subscription Agreement as of the Closing Date; 
 (iii) no governmental authority shall have enacted,
issued, promulgated, enforced or entered any judgment, order, rule or regulation (whether temporary, preliminary or permanent) which is then in effect and has the effect of making consummation of the transactions contemplated hereby illegal or
otherwise restricting, prohibiting or enjoining consummation of the transactions contemplated hereby; and 
 (iv) all conditions precedent
to the closing of the Transactions set forth in the Business Combination Agreement, including the approval of the Company’s stockholders, shall have been satisfied or waived. 

c. At the Closing, the parties hereto shall execute and deliver such additional documents and take such additional actions as the parties
reasonably may deem to be practical and necessary in order to consummate the Subscription as contemplated by this Subscription Agreement. 

3. Company Representations and Warranties. The Company represents and warrants that: 

a. The Company has been duly incorporated and is validly existing as a corporation in good standing under the laws of the State of Delaware,
with corporate power and authority to own, lease and operate its properties and conduct its business as presently conducted and to enter into, deliver and perform its obligations under this Subscription Agreement. 

b. The Acquired Shares have been duly authorized and, when issued and delivered to Subscriber against full payment therefor in accordance with
the terms of this Subscription Agreement, the Acquired Shares will be validly issued, fully paid and non-assessable and will not have been issued in violation of or subject to any preemptive or similar rights
created under the Company’s amended and restated certificate of incorporation or under the Delaware General Corporation Law. 

  
 2 

 c. This Subscription Agreement has been duly authorized, executed and delivered by the
Company and is enforceable against it in accordance with its terms, except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the
rights of creditors generally, and (ii) principles of equity, whether considered at law or equity. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing on or registration
with, any court or other federal, state, local or other governmental authority, self-regulatory organization or other person in connection with the execution, delivery and performance of the company of this Subscription Agreement (including, without
limitation, the issuance of the Class A Shares), other than (i) filings with the U.S. Securities and Exchange Commission (the “SEC”) (ii) filings required by applicable state securities laws, (iii) filings required by
the Nasdaq Capital Market (“Nasdaq”), or such other applicable stock exchange on which the Company’s common stock is then listed and (iv) failure of which to obtain would not be reasonably likely to have, individually or
in the aggregate, a Material Adverse Effect. 
 d. As of their respective dates, all reports (“SEC Reports”) filed by the
Company with the SEC complied in all material respects with the requirements of the Securities Act (as defined below) and the Securities and Exchange Act of 1934 (the “Exchange Act”), and the rules and regulations of the SEC
promulgated thereunder, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein necessary in order to make the statements therein, in the light of
the circumstances under which they were made not misleading. The financial statements included in the SEC Reports comply in all material respects with applicable accounting requirements, and the rules and regulations of the SEC with respect thereto
as in effect at the time of filing and fairly present in all material respects the financial position of the entities subject thereto as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject,
in the case of unaudited statements, to normal, year-end audit adjustments. 
 e. Assuming the
accuracy of the Subscriber’s representations and warranties set forth in Section 4, no registration under the Securities Act is required for the offer and sale of the Shares by the Company to the Subscriber hereunder. The
Class A Shares (i) were not offered by any form of general solicitation or general advertising and (ii) are not being offered in a manner involving a public offering under, or in a distribution in violation of, the Securities Act, or
any state securities laws. 
 f. Except for such matters as have not had and would not be reasonably likely to have, individually or in the
aggregate, a Material Adverse Effect, as of the date hereof, there is no (i) action, suit, claim or other proceeding, in each case by or before any governmental authority pending, or, to the knowledge of the Company, threatened against the
Company or (ii) judgment, decree, injunction, ruling or order of any governmental entity or arbitrator outstanding against the Company. 

  
 3 

 g. The issued and outstanding Class A Shares are registered pursuant to
Section 12(b) of the Exchange Act, and are listed for trading on the Nasdaq. As of the date hereof, there is no suit, action, proceeding or investigation pending or, to the knowledge of the Company, threatened against the Company by Nasdaq or
the SEC, respectively, to prohibit or terminate the listing of the Class A Shares. The Company has taken no action that is designed to terminate the listing of the Class A Shares on Nasdaq or the registration of the Class A Shares
under the Exchange Act. 
 h. The issuance and sale of the Acquired Shares and the compliance by the Company with all of the provisions of
this Subscription Agreement and the consummation of the transactions contemplated herein will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or
imposition of any lien, charge or encumbrance upon any of the property or assets of the Company or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or
instrument to which the Company or any of its subsidiaries is a party or by which the Company or any of its subsidiaries is bound or to which any of the property or assets of the Company or any of its subsidiaries is subject, which would reasonably
be expected to have a material adverse effect on the business, properties, financial condition, stockholders’ equity or results of operations of the Company and its subsidiaries, taken as a whole (a “Material Adverse Effect”)
or materially affect the validity of the Acquired Shares or the legal authority of the Company to comply in all material respects with the terms of this Subscription Agreement; (ii) result in any violation of the provisions of the
organizational documents of the Company or any of its subsidiaries; or (iii) result in any violation of any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction
over the Company or any of its subsidiaries or any of their respective properties that would reasonably be expected to have a Material Adverse Effect or materially affect the validity of the Acquired Shares or the legal authority of the Company to
comply in all material respects with this Subscription Agreement. 
 i. The Company is not, and immediately after receipt of payment for the
Shares, will not be, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 
 4.
Subscriber Representations and Warranties. Subscriber represents and warrants that: 
 a. If Subscriber is not an individual,
Subscriber has been duly formed or incorporated and is validly existing in good standing under the laws of its jurisdiction of incorporation or formation, with power and authority to enter into, deliver and perform its obligations under this
Subscription Agreement. If Subscriber is an individual, Subscriber has the authority to enter into, deliver and perform its obligations under this Subscription Agreement. 

b. If Subscriber is not an individual, this Subscription Agreement has been duly authorized, executed and delivered by Subscriber. If
Subscriber is an individual, the signature on this Subscription Agreement is genuine, and Subscriber has legal competence and capacity to execute the same. This Subscription Agreement is enforceable against Subscriber in accordance with its terms,
except as may be limited or otherwise affected by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other laws relating to or affecting the rights of creditors generally, and (ii) principles of equity,
whether considered at law or equity. 

  
 4 

 c. The execution, delivery and performance by Subscriber of this Subscription Agreement and
the consummation of the transactions contemplated herein will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or
encumbrance upon any of the property or assets of Subscriber or any of its subsidiaries pursuant to the terms of (i) any indenture, mortgage, deed of trust, loan agreement, lease, license or other agreement or instrument to which Subscriber or
any of its subsidiaries is a party or by which Subscriber or any of its subsidiaries is bound or to which any of the property or assets of Subscriber or any of its subsidiaries is subject, which would reasonably be expected to have a material
adverse effect on the business, properties, financial condition, stockholders’ equity or results of operations of Subscriber and its subsidiaries, taken as a whole (a “Subscriber Material Adverse Effect”) or materially affect
the legal authority of Subscriber to comply in all material respects with the terms of this Subscription Agreement; (ii) if Subscriber is not an individual, result in any violation of the provisions of the organizational documents of Subscriber
or any of its subsidiaries; or (iii) result in any violation of any statute or any judgment, order, rule or regulation of any court or governmental agency or body, domestic or foreign, having jurisdiction over Subscriber or any of its
subsidiaries or any of their respective properties that would reasonably be expected to have a Subscriber Material Adverse Effect or materially affect the legal authority of Subscriber to comply in all material respects with this Subscription
Agreement. 
 d. Subscriber (i) is a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act of
1933, as amended (the “Securities Act”)) or an “accredited investor” (within the meaning of Rule 501(a) under the Securities Act) satisfying the applicable requirements set forth on Schedule A, (ii) is
acquiring the Acquired Shares only for its own account and not for the account of others, or if Subscriber is subscribing for the Acquired Shares as a fiduciary or agent for one or more investor accounts, each owner of such account is a qualified
institutional buyer and Subscriber has full investment discretion with respect to each such account, and the full power and authority to make the acknowledgements, representations and agreements herein on behalf of each owner of each such account,
and (iii) is not acquiring the Acquired Shares with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act (and shall provide the requested information on Schedule A following the
signature page hereto). Subscriber is not an entity formed for the specific purpose of acquiring the Acquired Shares. 
 e. Subscriber
understands that the Acquired Shares are being offered in a transaction not involving any public offering within the meaning of the Securities Act and that the Acquired Shares have not been registered under the Securities Act. Subscriber understands
that the Acquired Shares may not be resold, transferred, pledged or otherwise disposed of by Subscriber absent an effective registration statement under the Securities Act, except (i) to the Company or a subsidiary thereof, (ii) to non-U.S. persons pursuant to offers and sales that occur outside the United States within the meaning of Regulation S under the Securities Act or (iii) pursuant to another applicable exemption from the
registration requirements of the Securities Act, and that any certificates representing the Acquired Shares shall contain a legend to such effect. Subscriber acknowledges that the Acquired Shares will not be eligible for resale pursuant to Rule 144A
promulgated under the Securities Act. Subscriber understands and agrees that the Acquired Shares will be subject to transfer restrictions under the Securities Act and, as a result of these transfer restrictions, Subscriber may not be able to readily
resell the Acquired Shares and may be required to bear the financial risk of an investment in the Acquired Shares for an indefinite period of time. Subscriber understands that it has been advised to consult legal counsel prior to making any offer,
resale, pledge or transfer of any of the Acquired Shares. 

  
 5 

 f. Subscriber understands and agrees that Subscriber is purchasing the Acquired Shares
directly from the Company. Subscriber further acknowledges that there have been no representations, warranties, covenants and agreements made to Subscriber by the Company or its affiliates or any of their respective officers or directors, expressly
or by implication, other than those representations, warranties, covenants and agreements included in this Subscription Agreement. 
 g.
Subscriber represents and warrants that its acquisition and holding of the Acquired Shares will not constitute or result in a non-exempt prohibited transaction under Section 406 of the Employee Retirement
Income Security Act of 1974, as amended, Section 4975 of the Internal Revenue Code of 1986, as amended, or any applicable similar law. 

h. In making its decision to purchase the Acquired Shares, Subscriber represents that it has relied solely upon independent investigation made
by Subscriber. Subscriber acknowledges and agrees that Subscriber has received such information as Subscriber deems necessary in order to make an investment decision with respect to the Acquired Shares, including but not limited to the
Company’s SEC Reports and the Investor Presentation provided by the Company, and including with respect to the Company, SFS Holding Corp. and the Transactions. Subscriber represents and agrees that Subscriber and Subscriber’s professional
advisor(s), if any, have had the full opportunity to ask such questions, receive such answers and obtain such information as Subscriber and such undersigned’s professional advisor(s), if any, have deemed necessary to make an investment decision
with respect to the Acquired Shares. 
 i. Subscriber became aware of this offering of the Acquired Shares solely by means of direct contact
between Subscriber and the Company or by certain employees of The Gores Group LLC or its affiliates acting on the Company’s behalf and the Acquired Shares were offered to Subscriber solely by direct contact between Subscriber and the Company or
by certain employees of The Gores Group LLC or its affiliates acting on the Company’s behalf. Subscriber did not become aware of this offering of the Acquired Shares, nor were the Acquired Shares offered to Subscriber, by any other means, and
The Gores Group LLC or its affiliates did not act as investment adviser, broker or dealer to Subscriber. Subscriber acknowledges that the Company represents and warrants that the Acquired Shares (i) were not offered by any form of general
solicitation or general advertising and (ii) are not being offered in a manner involving a public offering under, or in a distribution in violation of, the Securities Act, or any state securities laws. 

j. Subscriber acknowledges that it is aware that there are substantial risks incident to the purchase and ownership of the Acquired Shares.
Subscriber has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Acquired Shares, and Subscriber has sought such accounting, legal and tax advice as Subscriber
has considered necessary to make an informed investment decision. 
 k. Alone, or together with any professional advisor(s), Subscriber
represents and acknowledges that Subscriber has adequately analyzed and fully considered the risks of an investment in the Acquired Shares and determined that the Acquired Shares are a suitable investment for Subscriber and that Subscriber is able
at this time and in the foreseeable future to bear the economic risk of a total loss of Subscriber’s investment in the Company. Subscriber acknowledges specifically that a possibility of total loss exists. 

  
 6 

 l. Subscriber understands and agrees that no federal or state agency has passed upon or
endorsed the merits of the offering of the Acquired Shares or made any findings or determination as to the fairness of this investment. 
 m.
Subscriber represents and warrants that Subscriber is not (i) a person or entity named on the List of Specially Designated Nationals and Blocked Persons administered by the U.S. Treasury Department’s Office of Foreign Assets Control
(“OFAC”) or in any Executive Order issued by the President of the United States and administered by OFAC (“OFAC List”), or a person or entity prohibited by any OFAC sanctions program, (ii) a Designated National
as defined in the Cuban Assets Control Regulations, 31 C.F.R. Part 515, or (iii) a non-U.S. shell bank or providing banking services indirectly to a non-U.S. shell
bank. Subscriber agrees to provide law enforcement agencies, if requested thereby, such records as required by applicable law, provided that Subscriber is permitted to do so under applicable law. Subscriber represents that if it is a financial
institution subject to the Bank Secrecy Act (31 U.S.C. Section 5311 et seq.) (the “BSA”), as amended by the USA PATRIOT Act of 2001 (the “PATRIOT Act”), and its implementing regulations (collectively, the
“BSA/PATRIOT Act”), that Subscriber maintains policies and procedures reasonably designed to comply with applicable obligations under the BSA/PATRIOT Act. Subscriber also represents that, to the extent required, it maintains
policies and procedures reasonably designed for the screening of its investors against the OFAC sanctions programs, including the OFAC List. Subscriber further represents and warrants that, to the extent required, it maintains policies and
procedures reasonably designed to ensure that the funds held by Subscriber and used to purchase the Acquired Shares were legally derived. 

n. Subscriber has commitments to have, and prior to the Closing will have, sufficient funds to pay the Purchase Price in escrow pursuant to
Section 2(a). 
 5. Registration Rights. 

a. The Company agrees that, within thirty (30) calendar days after the consummation of the Transactions (the “Filing
Deadline”), the Company will file with the SEC (at the Company’s sole cost and expense) a registration statement to register under and in accordance with the provisions of the Securities Act, the offer, sale and distribution of all
Registrable Securities (as defined below) on Form S-1 or Form S-3 to the extent available (which shall be filed pursuant to Rule 415 under the Securities Act as a
secondary-only registration statement), if the Company is then eligible for such short form, or any similar or successor short form registration or, if the Company is not then eligible for such short form registration, on Form S-1 or any similar or successor long form registration (the “Registration Statement”) (it being understood that as of the date of this Subscription Agreement, the Company would not be eligible to
use Form S-3 on the Filing Deadline). The Company shall use its commercially reasonable efforts to have the Registration Statement declared effective by the SEC as soon as practicable after the filing thereof,
but no later than the sixty (60) calendar days following the Filing Deadline (the “Effectiveness Deadline”); provided, that the Effectiveness Deadline shall be extended to ninety (90) calendar days after the Filing
Deadline if the Registration Statement is reviewed by, and receives comments from, the SEC; provided, however, that the 

  
 7 

 
Company’s obligations to include the Acquired Shares in the Registration Statement are contingent upon Subscriber furnishing in writing to the Company such information regarding Subscriber,
the securities of the Company held by Subscriber and the intended method of disposition of the Acquired Shares as shall be reasonably requested by the Company to effect the registration of the Acquired Shares, and shall execute such documents in
connection with such registration as the Company may reasonably request that are customary of a selling stockholder in similar situations, including providing that the Company shall be entitled to postpone and suspend the effectiveness or use of the
Registration Statement during any customary blackout or similar period and including with respect to the effectiveness thereof or in the event the Registration Statement must be supplemented, amended or suspended. The Company will use its
commercially reasonable efforts to maintain the continuous effectiveness of the Registration Statement until all such securities cease to be Registrable Securities (as defined below) or such shorter period upon which all Subscribers with Registrable
Securities included in such Registration Statement have notified the Company that such Registrable Securities have actually been sold. The Company will use commercially reasonable efforts to file all reports, and provide all customary and reasonable
cooperation, necessary to enable Subscriber to resell Registrable Securities pursuant to the Registration Statement or Rule 144, as applicable, qualify the Registrable Securities for listing on the applicable stock exchange, update or amend the
Registration Statement as necessary to include Registrable Securities and provide customary notice to holders of Registrable Securities. “Registrable Securities” shall mean, as of any date of determination, the Acquired Shares and
any other equity security of the Company issued or issuable with respect to the Acquired Shares by way of share split, dividend, distribution, recapitalization, merger, exchange, replacement or similar event or otherwise. As to any particular
Registrable Securities, once issued, such securities shall cease to be Registrable Securities (i) when they are sold, transferred, disposed of or exchanged pursuant to an effective Registration Statement under the Securities Act, (ii) the
earliest of (A) two (2) years, (B) such time that such holder has disposed of such securities pursuant to Rule 144 or (C) if Rule 144(i) is no longer applicable to the Company or Rule 144(i)(2) is amended to remove the reporting
requirement preceding a disposition of securities, such time that such holder is able to dispose of all of its, his or her Registrable Securities pursuant to Rule 144 without any volume limitations thereunder, (iii) when they shall have ceased
to be outstanding or (iv) when such securities have been sold in a private transaction in which the transferor’s rights under this Section 5(a) are not assigned to the transferee of such securities. The Company
will provide a draft of the Registration Statement to the Subscriber for review at least (2) business days in advance of filing the Registration Statement. In no event shall the Subscriber be identified as a statutory underwriter in the
Registration Statement unless required by the SEC. 
 b. The Company shall, notwithstanding any termination of this Subscription Agreement,
indemnify, defend and hold harmless Subscriber (to the extent a seller under the Registration Statement), the officers, directors, trustees, agents, partners, members, managers, stockholders, affiliates, employees and investment advisers of each of
them, each person who controls Subscriber (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, trustees, agents, partners, members, managers, stockholders, affiliates,
employees and investment advisers of each such controlling person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable costs of
preparation and investigation and reasonable attorneys’ fees) and expenses 

  
 8 

 
(collectively, “Losses”), as incurred, that arise out of or are based upon (i) any untrue or alleged untrue statement of a material fact contained in the Registration
Statement, any prospectus included in the Registration Statement or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission to state a
material fact required to be stated therein or necessary to make the statements therein (in the case of any prospectus or form of prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading, or
(ii) any violation or alleged violation by the Company of the Securities Act, Exchange Act or any state securities law or any rule or regulation thereunder, in connection with the performance of its obligations under this
Section 5, except insofar as and to the extent, but only to the extent, that such untrue statements, alleged untrue statements, omissions or alleged omissions are based solely upon information regarding Subscriber furnished
in writing to the Company by Subscriber expressly for use therein. The Company shall notify Subscriber promptly of the institution, threat or assertion of any proceeding arising from or in connection with the transactions contemplated by this
Section 5 of which the Company is aware. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of an indemnified party and shall survive the transfer of the Acquired
Shares by Subscriber. 
 c. Subscriber shall, severally and not jointly with any other subscriber, indemnify and hold harmless the Company,
its directors, officers, agents and employees, each person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents or employees of such
controlling persons, to the fullest extent permitted by applicable law, from and against all Losses, as incurred, arising out of or are based upon any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any
prospectus included in the Registration Statement, or any form of prospectus, or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required
to be stated therein or necessary to make the statements therein (in the case of any prospectus, or any form of prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading to the extent, but only to the
extent, that such untrue statements or omissions are based solely upon information regarding Subscriber furnished in writing to the Company by Subscriber expressly for use therein. In no event shall the liability of Subscriber be greater in amount
than the dollar amount of the net proceeds received by Subscriber upon the sale of the Acquired Shares giving rise to such indemnification obligation. 

6. Termination. This Subscription Agreement shall terminate and be void and of no further force and effect, and all rights and
obligations of the parties hereunder shall terminate without any further liability on the part of any party in respect thereof, upon the earlier to occur of (a) such date and time as the Business Combination Agreement is terminated in
accordance with its terms, (b) upon the mutual written agreement of each of the parties hereto to terminate this Subscription Agreement or (c) if any of the conditions to Closing set forth in Section 2 are not
satisfied on or prior to the Closing and, as a result thereof, the transactions contemplated by this Subscription Agreement are not or will not be consummated at the Closing; provided, that nothing herein will relieve any party from liability
for any willful breach hereof (including for the avoidance of doubt Subscriber’s willful breach of Section 2(b)(ii) with respect to its representations and warranties as of the Closing Date) prior to the time of
termination, and each party will be entitled to any remedies at law or in equity to recover losses, liabilities or damages arising from such breach. The Company shall promptly notify Subscriber of the termination of the Business Combination
Agreement promptly after the termination of such agreement. 

  
 9 

 7. Trust Account Waiver. Subscriber acknowledges that the Company is a blank check
company with the powers and privileges to effect a merger, asset acquisition, reorganization or similar business combination involving the Company and one or more businesses or assets. Subscriber further acknowledges that, as described in the
Company’s prospectus relating to its initial public offering dated December 5, 2019 (the “Prospectus”) available at www.sec.gov, substantially all of the Company’s assets consist of the cash proceeds of the
Company’s initial public offering and private placements of its securities, and substantially all of those proceeds have been deposited in a trust account (the “Trust Account”) for the benefit of the Company, its public
stockholders and the underwriters of the Company’s initial public offering. Except with respect to interest earned on the funds held in the Trust Account that may be released to the Company to pay its tax obligations, if any, the cash in the
Trust Account may be disbursed only for the purposes set forth in the Prospectus. For and in consideration of the Company entering into this Subscription Agreement, the receipt and sufficiency of which are hereby acknowledged, Subscriber, on behalf
of itself and its representatives, hereby irrevocably waives any and all right, title and interest, or any claim of any kind they have or may have in the future, in or to any monies held in the Trust Account, and agrees not to seek recourse against
the Trust Account as a result of, or arising out of, this Subscription Agreement. 
 8. Miscellaneous. 

a. Subscriber acknowledges that the Company and others will rely on the acknowledgments, understandings, agreements, representations and
warranties contained in this Subscription Agreement. Prior to the Closing, Subscriber agrees to promptly notify the Company if any of the Subscriber’s acknowledgments, understandings, agreements, representations and warranties set forth herein
are no longer accurate in all material respects. 
 b. The Company is entitled to rely upon this Subscription Agreement and is irrevocably
authorized to produce this Subscription Agreement or a copy hereof to any interested party in any administrative or legal proceeding or official inquiry with respect to the matters covered hereby. 

c. Neither this Subscription Agreement nor any rights that may accrue to Subscriber hereunder (other than the Acquired Shares acquired
hereunder, if any) may be transferred or assigned. 
 d. All the agreements, representations and warranties made by each party hereto in this
Subscription Agreement shall survive the Closing. 
 e. The Company may request from Subscriber such additional information as the Company
may deem necessary to evaluate the eligibility of Subscriber to acquire the Acquired Shares, and Subscriber shall provide such information as may be reasonably requested, to the extent readily available and to the extent consistent with its internal
policies and procedures. 

  
 10 

 f. This Subscription Agreement may not be modified, waived or terminated except by an
instrument in writing, signed by the party against whom enforcement of such modification, waiver, or termination is sought. 
 g. This
Subscription Agreement constitutes the entire agreement, and supersedes all other prior agreements, understandings, representations and warranties, both written and oral, among the parties, with respect to the subject matter hereof. This
Subscription Agreement shall not confer any rights or remedies upon any person other than the parties hereto, and their respective successor and assigns. 

h. Except as otherwise provided herein, this Subscription Agreement shall be binding upon, and inure to the benefit of the parties hereto and
their heirs, executors, administrators, successors, legal representatives, and permitted assigns, and the agreements, representations, warranties, covenants and acknowledgments contained herein shall be deemed to be made by, and be binding upon,
such heirs, executors, administrators, successors, legal representatives and permitted assigns. 
 i. If any provision of this Subscription
Agreement shall be invalid, illegal or unenforceable, the validity, legality or enforceability of the remaining provisions of this Subscription Agreement shall not in any way be affected or impaired thereby and shall continue in full force and
effect. 
 j. This Subscription Agreement may be executed in one or more counterparts via facsimile, electronic mail (including pdf or any
electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com or www.echosign.com) or other transmission method and by different parties in separate counterparts, with the same effect as if all parties hereto had
signed the same document. All counterparts so executed and delivered shall be construed together and shall constitute one and the same agreement. 

k. The parties hereto agree that irreparable damage would occur in the event that any of the provisions of this Subscription Agreement were
not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Subscription Agreement and to enforce
specifically the terms and provisions of this Subscription Agreement, this being in addition to any other remedy to which such party is entitled at law, in equity, in contract, in tort or otherwise. 

l. THIS SUBSCRIPTION AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO
THE PRINCIPLES OF CONFLICTS OF LAWS THAT WOULD OTHERWISE REQUIRE THE APPLICATION OF THE LAW OF ANY OTHER STATE. EACH PARTY HERETO HEREBY WAIVES ANY RIGHT TO A JURY TRIAL IN CONNECTION WITH ANY LITIGATION PURSUANT TO THIS SUBSCRIPTION AGREEMENT AND
THE TRANSACTIONS CONTEMPLATED HEREBY. 

  
 11 

 IN WITNESS WHEREOF, each of the Company and Subscriber has executed or caused this
Subscription Agreement to be executed by its duly authorized representative as of the date set forth below. 
  

			
	GORES HOLDINGS IV, INC.
		
	By:	 	
                     

		 	Name:
		 	Title:

 Date: [•]
                , 2020 
  

 
  
  

 
 [SIGNATURE PAGE TO SUBSCRIPTION AGREEMENT] 

					
	SUBSCRIBER:	  		  	
			
	Name of Subscriber:	  		  	Name of Joint Subscriber, if applicable:
			
	  
	  	        	  	  

			
	  
	  		  	
	 Name in which shares are to be registered
 (if
different):
	  		  	
			
	Email Address: _______________________	  		  	
			
	If there are joint investors, please check one:	  		  	
			
	☐ Joint Tenants with Rights of Survivorship	  		  	
			
	☐ Tenants-in-Common	  		  	
			
	☐ Community Property	  		  	
			
	Subscriber’s EIN: __________________________	  		  	Joint Subscriber’s EIN: ________________
			
	 Business Address-Street:
	  		  	 Mailing Address-Street (if different):

			
	  
	  		  	  

			
	  
	  		  	  

	City, State, Zip:	  		  	City, State, Zip:
			
	Attn:	  		  	Attn:
			
	Telephone No.: __________________________	  		  	Telephone No.: _____________________
			
	Facsimile No.: __________________________	  		  	Facsimile No.: ______________________

 [Signature Page Follows] 

			
	Aggregate Number of Acquired Shares subscribed for: __________________________
		
	Aggregate Purchase Price1: $ ____________	  	
		
	 Date: September                , 2020

 
 Signature of Subscriber:

 
 By:_______________________________

Name:
 Title:
	  	  
  

Signature of Joint Subscriber, if applicable:
  

By:_______________________________
 Name:

Title:

		
	 Name of Subscriber:
  

_______________________________
 (Please print. Please indicate
name and
 capacity of person signing above)
	  	 Name of Joint Subscriber, if applicable:
  

_______________________________
 (Please Print. Please indicate
name and
 capacity of person signing above)

 You must pay the Purchase Price by wire transfer of United States dollars in immediately available funds to the account
specified by the Company in the Closing Notice. 
  

	1 	 This is the aggregate number of Acquired Shares subscribed for multiplied by the price per Acquired Share of
$10.00, without rounding. 

 SCHEDULE A 

ELIGIBILITY REPRESENTATIONS OF SUBSCRIBER 
  

	A.	 QUALIFIED INSTITUTIONAL BUYER STATUS 

(Please check the applicable subparagraphs): 
  

	 	1.	 ☐ We are a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act (a
“QIB”)). 

  

	 	2.	 ☐ We are subscribing for the Acquired Shares as a fiduciary or agent for one or more investor accounts,
and each owner of such account is a QIB. 

 ***OR*** 
  

	B.	 ACCREDITED INVESTOR STATUS 

(Please check the applicable subparagraphs): 
  

	 	1.	 ☐ We are an “accredited investor” (within the meaning of Rule 501(a) under the Securities Act
or an entity in which all of the equity holders are accredited investors within the meaning of Rule 501(a) under the Securities Act), and have marked and initialed the appropriate box on the following page indicating the provision under which we
qualify as an “accredited investor.” 

  

	 	2.	 ☐ We are not a natural person. 

***AND*** 
  

	C.	 AFFILIATE STATUS 

(Please check the applicable box) 
 SUBSCRIBER:

  

	 	☐	 is: 

  

	 	☐	 is not: 

an “affiliate” (as defined in Rule 144 under the Securities Act) of the Company or acting on behalf of an affiliate of the Company.

 This page should be completed by Subscriber 

and constitutes a part of the Subscription Agreement. 
  

 
  

Schedule A-1 

 Rule 501(a), in relevant part, states that an “accredited investor” shall mean any person who
comes within any of the below listed categories, or who the issuer reasonably believes comes within any of the below listed categories, at the time of the sale of the securities to that person. Subscriber has indicated, by marking and initialing the
appropriate box below, the provision(s) below which apply to Subscriber and under which Subscriber accordingly qualifies as an “accredited investor.” 

☐ Any bank, registered broker or dealer, insurance company, registered investment company, business development company, or small
business investment company; 
 ☐ Any plan established and maintained by a state, its political subdivisions, or any agency or
instrumentality of a state or its political subdivisions for the benefit of its employees, if such plan has total assets in excess of $5,000,000; 

☐ Any employee benefit plan, within the meaning of the Employee Retirement Income Security Act of 1974, if a bank, insurance company, or
registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5,000,000; 
 ☐ Any
organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess
of $5,000,000; 
 ☐ Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any
director, executive officer, or general partner of a general partner of that issuer; 
 ☐ Any natural person whose individual net
worth, or joint net worth with that person’s spouse, at the time of his purchase exceeds $1,000,000. For purposes of calculating a natural person’s net worth: (a) the person’s primary residence must not be included as an asset;
(b) indebtedness secured by the person’s primary residence up to the estimated fair market value of the primary residence must not be included as a liability (except that if the amount of such indebtedness outstanding at the time of
calculation exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess must be included as a liability); and (c) indebtedness that is secured by the
person’s primary residence in excess of the estimated fair market value of the residence must be included as a liability; 
 ☐ Any
natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same
income level in the current year; 
 ☐ Any trust with assets in excess of $5,000,000, not formed to acquire the securities offered,
whose purchase is directed by a sophisticated person; or 
 ☐ Any entity in which all of the equity owners are accredited investors
meeting one or more of the above tests. 
  
  

 
  

  
 Schedule A-2

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