Document:

Document

Exhibit 10.1

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF TEXAS
SHERMAN DIVISION

						
	FEDERAL TRADE COMMISSION

Plaintiff

, v.

FIRST AMERICAN PAYMENT SYSTEMS, LP, a
limited partnership, also d/b/a MERIMAC CAPITAL,

ELIOT MANAGEMENT GROUP, LLC, a limited
liability company, also d/b/a SUNDANCE PAYMENT SOLUTIONS, and

THINK POINT FINANCIAL, LLC, a limited
liability company, also d/b/a CYPRESS BAY SOLUTIONS and IMPULSE PAYMENTS,

Defendants.

	

Case No. 4:22-CV-654-SDJ

STIPULATED ORDER FOR PERMANENT INJUNCTION, MONETARY JUDGMENT, AND OTHER RELIEF

Plaintiff, the Federal Trade Commission (“Commission”), filed its Complaint for Permanent Injunction, Monetary Relief, and Other Relief (“Complaint”) pursuant to Sections 13(b) and 19 of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. §§ 53(b) and 57b. The Commission and Defendants stipulate to the entry of this Stipulated Order for Permanent Injunction and Monetary Judgment (“Order”) to resolve all matters in dispute in this action between them.
THEREFORE, IT IS ORDERED as follows:

FINDINGS

1.    This Court has jurisdiction over this matter.

2.    The Complaint charges that Defendants participated in deceptive and unfair acts or practices in violation of Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45, and

Section 4 of the Restore Online Shoppers’ Confidence Act, 15 U.S.C. § 8403, in the marketing, promotion, offering for sale, or sale of payment processing services to consumers throughout the United States.
3.    Defendants neither admit nor deny any of the allegations in the Complaint, except as specifically stated in this Order. Only for purposes of this action, Defendants admit the facts necessary to establish jurisdiction.
4.    Defendants waive any claim that they may have under the Equal Access to Justice Act, 28

U.S.C. § 2412, concerning the prosecution of this action through the date of this Order, and agree to bear their own costs and attorney fees.
5.    Defendants and the Commission waive all rights to appeal or otherwise challenge or contest the validity of this Order.
DEFINITIONS

For the purpose of this Order, the following definitions apply:

A.    “Billing Information” means any data that enables any person to access a customer’s account, such as a credit card, checking, savings, share or similar account, utility bill, mortgage loan account, or debit card.
B.    “Charge,” “Charged,” or “Charging” means any attempt to collect money or other consideration from a Merchant, including causing Billing Information to be submitted for payment, including against the Merchant’s credit card, debit card, bank account, telephone bill, or other account.
C.    “Clear(ly) and Conspicuous(ly)” means that a required disclosure is difficult to miss (i.e., easily noticeable) and easily understandable by ordinary consumers, including in all of

the following ways:

1.    In any communication that is solely visual or solely audible, the disclosure must be made through the same means through which the communication is presented. In any communication made through both visual and audible means, such as a television advertisement, the disclosure must be presented simultaneously in both the visual and audible portions of the communication even if the representation requiring the disclosure is made in only one means.
2.    A visual disclosure, by its size, contrast, location, the length of time it appears, and other characteristics, must stand out from any accompanying text or other visual elements so that it is easily noticed, read, and understood.
3.    An audible disclosure, including by telephone or streaming video, must be delivered in a volume, speed, and cadence sufficient for ordinary consumers to easily hear and understand it.
4.    In any communication using an interactive electronic medium, such as the Internet or software, the disclosure must be unavoidable.
5.    The disclosure must use diction and syntax understandable to ordinary consumers and must appear in each language in which the representation that requires the disclosure appears.
6.    The disclosure must comply with these requirements in each medium through which it is received, including all electronic devices and face-to-face communications.

7.    The disclosure must not be contradicted or mitigated by, or inconsistent with, anything else in the communication.
8.    When the representation or sales practice targets a specific audience, such as Merchants, children, the elderly, or the terminally ill, “ordinary consumers” includes reasonable members of that group.
D.    “Defendants” means: First American Payment Systems, LP, a limited partnership, also d/b/a Merimac Capital; Eliot Management Group, LLC, a limited liability company, also d/b/a Sundance Payment Solutions; and Think Point Financial, LLC, a limited liability company, also d/b/a Cypress Bay Solutions and Impulse Payments; and their successors and assigns; individually, collectively, or in any combination.
E.    “Merchant” means a consumer, including a person, corporation, or any other entity, that uses payment processing goods or services.
F.    “Negative Option Feature” means, in an offer or agreement to sell or provide any good or service, a provision under which the consumer’s silence or failure to take affirmative action to reject a good or service or to cancel the agreement is interpreted by the seller or provider as acceptance or continuing acceptance of the offer.
G.    “Online Merchant Account Portal” means an account system accessible on the Internet that Merchants can easily find and use to access account information and communicate with Defendants.

H.    “Service Representative” means an employee, or agent under Defendants’ supervision, whose duties involve interacting with Merchants regarding account status, complaints, retention, billings, or collections.

I.    “Telemarketing” means any plan, program, or campaign which is conducted to induce the purchase of goods or services by use of one or more telephones, and which involves a telephone call, whether or not covered by the Telemarketing Sales Rule.
ORDER

I.    PROHIBITION AGAINST MISREPRESENTATIONS

IT IS ORDERED that Defendants, Defendants’ officers, agents, employees, and attorneys, and all other persons in active concert or participation with any of them, who receive actual notice of this Order, whether acting directly or indirectly, in connection with promoting or offering for sale any payment processing good or service are permanently restrained and enjoined from misrepresenting or assisting others in misrepresenting, expressly or by implication:
A.    the conditions for cancellation of Defendants’ good or service, including but not limited to that the good or service:
1.    can be cancelled during an initial trial period with no penalty;

2.    can be cancelled prior to the end of a written agreement term with no penalty; or
3.    can be cancelled at any time with no penalty;

B.    the fees for the good or service, such as the monthly fees;

C.    the amount of savings that could be realized by using Defendants’ good or service;

or

D.    any other fact material to Merchants concerning the good or service such as: the total costs; any material restrictions, limitations, or conditions; or any material aspect of its performance, efficacy, nature, or central characteristics.
II.    PROHIBITION AGAINST UNSUBSTANTIATED CLAIMS

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees, and attorneys, and all other persons in active concert or participation with any of them, who receive actual notice of this Order, whether acting directly or indirectly, in connection with promoting or offering for sale any payment processing good or service, are permanently restrained and enjoined from making, or assisting others in making, any representation, expressly or by implication, about the amount of savings to be realized from using Defendants’ good or service, unless the representation is non-misleading, including that, at the time such representation is made, they possess and rely upon a reasonable basis for the representation.
III.    PROHIBITION AGAINST UNFAIR DEBITING PRACTICES

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees, and attorneys and all others in active concert or participation with any of them, who receive actual notice of this Order, whether acting directly or indirectly are permanently restrained and enjoined from causing debits or withdrawals to be made from any Merchant’s bank or other financial account:
A.    without the Merchant’s express authorization; or

B.    after the Merchant has revoked its authorization, including but not limited to after the Merchant has:

1.    stopped or blocked any debit, withdrawal or Charge from a bank or other financial account;
2.    stated to a Service Representative or through an Online Merchant Account Portal, which Defendants are required to provide, that the Merchant does not owe or will
not pay a debit, withdrawal or Charge; or

3.    requested that Defendants not cause any debit, withdrawal, or Charge to be

made;

unless new express authorization from the Merchant has been obtained. At a minimum, “express authorization” means an affirmative act communicating unambiguous assent for debits or withdrawals to be made from a Merchant’s bank or other financial account. Provided, however, that if Defendants establish that the Merchant revoked its authorization pursuant to B.1, B.2 or
B.3    of this Section only as to specific debits, withdrawals, or Charges, such as by establishing that the Merchant continued to use Defendants’ products or services to process payments within 30 days after the revocation, then the revocation of authorization shall apply only to those specific debits, withdrawals or Charges.
IV.    PROHIBITIONS REGARDING EXISTING MERCHANTS

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees, and attorneys and all others in active concert or participation with any of them, who receive actual notice of this Order, whether acting directly or indirectly, are permanently restrained and enjoined from the following as to Merchants who entered into the agreement for services through FirstOnBoard before April 6, 2020:
A.    debiting, withdrawing, charging, or attempting to collect an early termination fee;

B.    stating to any such Merchant that the Merchant will owe an early termination fee if the Merchant cancels before the end of the contractual time period.
V.    PROHIBITION AGAINST MISREPRESENTATIONS RELATED TO NEGATIVE OPTIONS

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees, and attorneys, and all other persons in active concert or participation with any of them, who receive actual notice of this Order, whether acting directly or indirectly, in connection with promoting or offering for sale any good or service with a Negative Option Feature, are permanently restrained and enjoined from misrepresenting or assisting others in misrepresenting, expressly or by implication:
A.    any cost to the Merchant to purchase, receive, use, or return the good or service;

B.    that the Merchant will not be Charged for any good or service;

C.    that a good or service is offered on a “trial” or “no obligation,” basis, or words of similar import;
D.    any purpose for which the Merchant’s Billing Information will be used;

E.    the date(s) by which the Merchant must take any affirmative action to avoid extending the term of any agreement through the operation of the Negative Option Feature;
F.    that a transaction has been authorized by the Merchant;

G.    any material aspect of the nature or terms of a refund, cancellation, exchange, or repurchase policy for the good or service; or
H.    any other material fact.

VI.    REQUIRED DISCLOSURES RELATING TO NEGATIVE OPTION FEATURE
 IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees, and attorneys, and all other persons in active concert or participation with any of them, who
receive actual notice of this Order, whether acting directly or indirectly, in connection with promoting or offering for sale any good or service with a Negative Option Feature, are permanently restrained and enjoined from:

A.    obtaining Billing Information from a Merchant for any transaction involving a good or service that includes a Negative Option Feature, without first disclosing Clearly and Conspicuously:
1.    the existence of the Negative Option Feature and the extent to which the Merchant must take affirmative action to avoid extending the term of any agreement through the operation of the Negative Option Feature;
2.    the deadline(s) (by date or frequency) by which the Merchant must affirmatively act to avoid extending the term of any agreement through the operation of the Negative Option Feature;
3.    the name of the seller or provider of the good or service and, if the name of the seller or provider will not appear on billing statements, the billing descriptor that will appear on such statements;
4.    a description of the good or service;

5.    any Charge or cost for which the Merchant is responsible in connection with the cancellation of any agreement for goods or services, including any early 

termination fee Charged for cancelling the agreement before a fixed time period has expired; and
6.    the simple cancellation mechanism to avoid extending the term of any agreement through the operation of the Negative Option Feature, as required by this
Order; or

B.    failing to send the Merchant:

1.    immediately after the Merchant’s submission of an online agreement, written confirmation of the transaction by email. The email must Clearly and Conspicuously disclose all the information required by Subsection A, and contain a subject line reading “Agreement Confirmation” along with the name of the good or service; or
2.    within 2 days after receipt of the Merchant’s agreement by mail or telephone, a written confirmation of the transaction, either by email or first-class mail. The email or letter must Clearly and Conspicuously disclose all the information required by Subsection A. The subject line of the email must Clearly and Conspicuously state “Agreement Confirmation” along with the name of the good or service. The outside of the envelope must Clearly and Conspicuously state “Agreement Confirmation” along with the name of the product or service, and no additional information other than the Merchant’s address, the Defendants’ return address, and postage.

VII.    OBTAINING EXPRESS INFORMED CONSENT FOR A NEGATIVE OPTION

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees, and attorneys, and all other persons in active concert or participation with any of them, who receive actual notice of this Order, whether acting directly or indirectly, in connection with promoting or offering for sale any good or service with a Negative Option Feature, are permanently restrained and enjoined from using, or assisting others in using, Billing Information
to obtain payment from a Merchant, unless Defendants first obtain the express informed consent of the Merchant to do so. To obtain express informed consent for the purposes of this Section, Defendants must:
A.    for all written offers (including over the Internet, such as through a web-based application), obtain consent through a check box, signature, or other substantially similar method, which the Merchant must affirmatively select or sign to accept the Negative Option Feature, and no other portion of the offer. Defendants shall disclose Clearly and Conspicuously, and immediately adjacent to such check box, signature, or substantially similar method of affirmative consent, only the following, with no additional information:
1.    the extent to which the Merchant must take affirmative action to avoid extending the term of any agreement through the operation of the Negative Option Feature; and
2.    the deadline(s) (by date or frequency) by which the Merchant must affirmatively act to avoid extending the term of any agreement through the operation of the Negative Option Feature;

B.    for all oral offers, prior to obtaining any Billing Information from the Merchant:

1.    Clearly and Conspicuously disclose the information contained in Subsection A of the Section titled Required Disclosures Relating to Negative Option Feature; and
2.    obtain affirmative unambiguous express oral confirmation that the Merchant: a) consents to being Charged for any good or service, including providing, at a minimum, the last 4 digits of the Merchant’s account number to be Charged, b)
understands that the transaction includes a Negative Option Feature, and c) understands the specific affirmative steps the Merchant must take avoid extending the term of any agreement through the operation of the Negative Option Feature; and
C.    for transactions conducted through Telemarketing, Defendants shall maintain for 3 years from the date of each transaction an unedited voice recording of the entire transaction, including the prescribed statements set out in Subsection B of this Section. Each recording must be retrievable by date and by the Merchant’s name, telephone number, Merchant identification number or location number, or Billing Information, and must be provided upon request to the Merchant, the Merchant’s bank, or any law enforcement entity.
VIII.    SIMPLE MECHANISM TO CANCEL NEGATIVE OPTION FEATURE

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees, attorneys, and all other persons in active concert or participation with any of them, who receive actual notice of this Order, whether acting directly or indirectly, in connection with promoting or 

offering for sale any good or service with a Negative Option Feature, are permanently restrained and enjoined from:
A.    failing to provide a simple mechanism for the Merchant to avoid extending the term of any agreement through the operation of the Negative Option Feature. Such mechanism must not be difficult, costly, confusing, or time consuming, and must be at least as simple as the mechanism the Merchant used to initiate the agreement;
B.    for Merchants who entered into the agreement to purchase a good or service including a Negative Option Feature over the Internet, such as through a web-based application,
Defendants must provide a mechanism, accessible on the Internet, that Merchants can easily find and use to cancel the product or service; and
C.    for Merchants who entered into the agreement to purchase a good or service including a Negative Option Feature through an oral offer and acceptance, Defendants must maintain a telephone number and a postal address that Merchants can easily use to cancel the product or service. Defendants must assure that all calls to this telephone number are answered during normal business hours and that mail to the postal address is read regularly.
IX.    MAINTAINING A COMPLIANCE PROGRAM

IT IS FURTHER ORDERED that Defendants, whether acting directly or indirectly, in connection with promoting or offering for sale, or debiting for, any good or service, are permanently restrained and enjoined from failing to take reasonable steps sufficient to monitor and ensure that all employees, sales agents, independent contractors, and independent sales offices comply with this Order. Such steps shall include the following:
A.    establishing and maintaining a compliance program which includes random, blind testing of the oral representations made through Telemarketing and spot checking with Merchants 

to identify representations made relating to duration of the agreement, prices and fees, and cancellation;
B.    establishing and maintaining a compliance program which includes training and monitoring of employees responsible for making debits or withdrawals from a Merchant’s bank or other financial account and tracks:
1.    the Merchant’s authorization for such debits or withdrawals;

2.    any full or partial revocation of that authorization; and
3.    any means used to establish that a Merchant who revoked authorization did so only as to specific debits or withdrawals;
C.    establishing and maintaining a procedure for receiving, investigating, and responding to each Merchant complaint that relates to compliance with this Order;
D.    taking corrective action with respect to any employee, sales agent, independent contractor, or independent sales office that Defendants determine is not complying with this Order; and
E.    tracking the following for each Merchant complaint that relates to compliance with this Order:
1.    the Merchant’s name and address;

2.    the date of the complaint;

3.    the basis of the complaint;

4.    the names of any employee, sales agent, independent contractor, and independent sales office complained about;
5.    a description of the investigation conducted, including all documents and recordings reviewed, individuals interviewed, and other evidence considered;

6.    a statement concerning the results of any investigation conducted;

7.    the response provided to the complaining Merchant; and

8.    a description of any corrective action taken with respect to any employee, sales agent, independent contractor, or independent sales office involved.
X.    MONETARY JUDGMENT 
IT IS FURTHER ORDERED that:
A.    Judgment in the amount of Four Million, Nine Hundred Thousand Dollars ($4,900,000) is entered in favor of the Commission against Defendants, jointly and severally, as monetary relief pursuant to 15 U.S.C. § 57b(b).
B.    Defendants are ordered to pay to the Commission Four Million, Nine Hundred Thousand Dollars ($4,900,000), which, as Defendants stipulate, their undersigned counsel holds in escrow for no purpose other than payment to the Commission. Such payment must be made within 7 days of entry of this Order by electronic fund transfer in accordance with instructions previously provided by a representative of the Commission.
C.    Defendants relinquish dominion and all legal and equitable right, title, and interest in all assets transferred pursuant to this Order and may not seek the return of any assets.
D.    The facts alleged in the Complaint will be taken as true, without further proof, in any subsequent civil litigation by or on behalf of the Commission, including in a proceeding to enforce its rights to any payment or monetary judgment pursuant to this Order.
E.    Defendants acknowledge that their Taxpayer Identification Numbers (Social Security Numbers or Employer Identification Numbers), which Defendants must submit to the Commission, may be used for collecting and reporting on any delinquent amount arising out of this Order, in accordance with 31 U.S.C. §7701.

F.    All money received by the Commission pursuant to this Order may be deposited into a fund administered by the Commission or its designee to be used for consumer relief, such as redress and any attendant expenses for the administration of any redress fund. If a representative of the Commission decides that direct redress to consumers is wholly or partially impracticable or money remains after such redress is completed, the Commission may apply any
remaining money for such related relief (including consumer information remedies) as it determines to be reasonably related to Defendants’ practices alleged in the Complaint. Any money not used for relief is to be deposited to the U.S. Treasury. Defendants have no right to challenge any actions the Commission or its representatives may take pursuant to this Subsection.
XI.    CUSTOMER INFORMATION

IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents, employees, and attorneys, and all other persons in active concert or participation with any of them, who receive actual notice of this Order, whether acting directly or indirectly, are permanently restrained and enjoined from directly or indirectly failing to provide sufficient customer information to enable the Commission to efficiently administer consumer redress. If a representative of the Commission requests in writing any information related to redress, Defendants must provide it, in the form prescribed by the Commission, within 14 days.
XII.    ORDER ACKNOWLEDGMENTS

IT IS FURTHER ORDERED that Defendants obtain acknowledgments of receipt of this

Order:

A.    Each Defendant, within 7 days of entry of this Order, must submit to the Commission an acknowledgment of receipt of this Order sworn under penalty of perjury.

B.    For 3 years after entry of this Order, each Defendant must deliver a copy of this Order to: (1) all principals, officers, directors, and LLC managers and members; (2) all employees, agents and representatives having managerial responsibilities for conduct related to the subject matter of the Order; and (3) any business entity resulting from any change in structure as set forth in the Section titled Compliance Reporting. Delivery must occur within 7 days of
entry of this Order for current personnel. For all others, delivery must occur before they assume their responsibilities.
C.    From each individual or entity to which a Defendant delivered a copy of this Order, that Defendant must obtain, within 30 days, a signed and dated acknowledgment of receipt of this Order.
XIII.    COMPLIANCE REPORTING

IT IS FURTHER ORDERED that Defendants make timely submissions to the Commission:
A.    One year after entry of this Order, each Defendant must submit a compliance report, sworn under penalty of perjury. Each Defendant must:
1.    identify the primary physical, postal, and email address and telephone number, as designated points of contact, which representatives of the Commission may use to communicate with Defendant;
2.    identify all of that Defendant’s businesses by all of their names, telephone numbers, and physical, postal, email, and Internet addresses;
3.    describe the activities of each business, including the payment processing goods and services offered, the means of advertising, marketing, sales, and collections and the involvement of any other Defendant;

4.    describe in detail whether and how that Defendant is in compliance with each Section of this Order; and
5.    provide a copy of each Order Acknowledgment obtained pursuant to this Order, unless previously submitted to the Commission.
B.    For 10 years after entry of this Order, each Defendant must submit a compliance notice, sworn under penalty of perjury, within 14 days of any change in the following:
1.    any designated point of contact; or

2.    the structure of any Defendant or any entity that Defendant has any ownership interest in or controls directly or indirectly that may affect compliance obligations arising under this Order, including: creation, merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order.
C.    Each Defendant must submit to the Commission notice of the filing of any bankruptcy petition, insolvency proceeding, or similar proceeding by or against such Defendant within 14 days of its filing.
D.    Any submission to the Commission required by this Order to be sworn under penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by concluding: “I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed on:     ” and supplying the date, signatory’s full name, title (if applicable), and signature.
E.    Unless otherwise directed by a Commission representative in writing, all submissions to the Commission pursuant to this Order must be emailed to DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, 

Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. The subject line must begin: FTC v. FIRST AMERICAN PAYMENT SYSTEMS, LP.
XIV.    RECORDKEEPING

IT IS FURTHER ORDERED that Defendants must create certain records for 10 years after entry of the Order, and retain each such record for 5 years. Specifically, each Defendant in connection with promoting or offering for sale, or debiting for, any good or service, must create and retain the following records:
A.    accounting records showing the revenues from all goods or services sold;

B.    personnel records showing, for each person providing services, whether as an employee or otherwise, that person’s: name; addresses; telephone numbers; job title or position; dates of service; and (if applicable) the reason for termination;
C.    all records relating to the compliance program mandated by the Section titled Maintaining a Compliance Program, including all documents relating to each Merchant complaint investigated;
D.    all records necessary to demonstrate full compliance with each provision of this Order, including all submissions to the Commission;
E.    copies of all unique scripts, training materials, or other promotional or marketing materials; and
F.    copies of each unique written agreement used to sell payment processing goods or services to Merchants.

XV.    COMPLIANCE MONITORING

IT IS FURTHER ORDERED that, for the purpose of monitoring Defendants’ compliance with this Order and any failure to transfer any assets as required by this Order:
A.    Within 14 days of receipt of a written request from a representative of the
Commission, each Defendant must: submit additional compliance reports or other requested information, which must be sworn under penalty of perjury; appear for depositions; and produce documents for inspection and copying. The Commission is also authorized to obtain discovery, without further leave of court, using any of the procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69.
B.    For matters concerning this Order, the Commission is authorized to communicate directly with each Defendant. Defendant must permit representatives of the Commission to interview any employee or other person affiliated with any Defendant who has agreed to such an interview. The person interviewed may have counsel present.
C.    The Commission may use all other lawful means, including posing, through its representatives as consumers, suppliers, or other individuals or entities, to Defendants or any individual or entity affiliated with Defendants, without the necessity of identification or prior notice. Nothing in this Order limits the Commission’s lawful use of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1.

XVI.    RETENTION OF JURISDICTION

IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for purposes of construction, modification, and enforcement of this Order.

SO ORDERED this    day of     , 202  .

						
		UNITED STATES DISTRICT JUDGE

SO STIPULATED AND AGREED:

FOR PLAINTIFF FEDERAL TRADE COMMISSION

									
	/s/ Jason C. Moon	Dated:	October 26, 2022

JASON C. MOON
EDWARD HYNES
Federal Trade Commission
1999 Bryan Street, Suite 2150
Dallas, Texas 75201
(214) 979-9378; jmoon@ftc.gov (Moon)
(214) 979-9381; ehynes@ftc.gov (Hynes)
(214) 953-3079 (Fax)

FOR DEFENDANTS:

									
	/s/ Anthony E. DiResta	Date:	10/25/2022

Anthony E. DiResta
Benjamin Genn
Holland & Knight
800 17th Street N.W., Suite 1100
Washington DC 20006

Brian Goodrich
Holland & Knight
One Arts Plaza
1722 Routh Street, Suite 1500
Dallas, TX 75201

Ellen T. Berge
Venable LLP
600 Massachusetts Avenue, NW
Washington, DC 20001

COUNSEL FOR FIRST AMERICAN PAYMENT SYSTEMS, LP,
ELIOT MANAGEMENT GROUP, LLC AND
THINK POINT FINANCIAL, LLC

DEFENDANT FIRST AMERICAN PAYMENT SYSTEMS, LP
									
	/s/ Michael Reed	Date:	10/25/2022

AS AN OFFICER OF FIRST AMERICAN
PAYMENT SYSTEMS, LP

DEFENDANT ELIOT MANAGEMENT GROUP, LLC
									
	/s/ Michael Reed	Date:	10/25/2022

AS AN OFFICER OF ELIOT
MANAGEMENT GROUP, LLC

DEFENDANT THINK POINT FINANCIAL, LLC
									
	/s/ Michael Reed	Date:	10/25/2022

AS AN OFFICER OF THINK POINT
FINANCIAL, LLCExhibit
10.1

 

LAZYDAYS
HOLDINGS, INC.

4042
Parks Oaks Boulevard

Suite
350

Tampa,
Florida 33610

 

September
6, 2022

 

Mr.
John North

10064
Surrey Oaks Drive

Dallas,
Texas 75229

 

Dear
John:

 

This
amended and restated letter agreement (this “Agreement”) contains the terms and conditions of your employment as Chief
Executive Officer of Lazydays Holdings, Inc. (the “Company”).

 

1.
Certain Definitions

 

The
following terms when used in this Agreement have the meanings assigned to them below:

 

“Cause”
means any of the following: (i) your failure to substantially perform the duties set forth in this Agreement (other than any such failure
resulting from your Disability); (ii) your failure to carry out, or comply with, in any material respect any lawful directive of the
Board; (iii) your commission at any time of any act or omission that results in, or may reasonably be expected to result in, a conviction,
plea of no contest, plea of nolo contendere, or imposition of unadjudicated probation for any felony or crime involving moral turpitude;
(iv) your unlawful use (including being under the influence) or possession of illegal drugs on the Company’s premises or while
performing your duties and responsibilities under this Agreement; (v) your commission at any time of any act of fraud, embezzlement,
misappropriation, misconduct, conversion of assets of the Company, or breach of fiduciary duty against the Company (or any successor
to the Company); (vi) your material breach of this Agreement or any other agreement with the Company or any of its subsidiaries (including,
without limitation, any breach of the restrictive covenants of any such agreement); or (vii) your material breach of any Company policy
applicable to you; and which, in the case of clauses (i) and (ii), continues beyond ten days after the Company has provided you with
notice of such failure or breach (to the extent that, in the reasonable judgment of the Board (excluding you), such failure or breach
can be cured by you). Whether or not an event giving rise to “Cause” occurs will be determined by the Board (excluding you)
in its reasonable discretion. Any termination of your employment at a time when Cause exists, such as due to your resignation, will be
treated as a termination for Cause, even if initially classified differently.

 

“Company
Group” means the Company and each Subsidiary of the Company.

 

“Company
Invention” means any Invention (as defined below) that is Invented (as defined below) by you (alone or jointly with others)
(i) in the course of, in connection with, or as a result of your employment or other service with any member of the Company Group (whether
before, on, or after the date of this Agreement), (ii) at the direction or request of any member of the Company Group (whether before,
on, or after the date of this Agreement), or (iii) through the use of, or that is related to, facilities, equipment, Proprietary Information
(as defined below), other Company Inventions, Intellectual Property (as defined below) or other resources of any member of the Company
Group, whether or not during your normal work hours (whether before, on, or after the date of this Agreement).

 

    	 

    	Mr. John North
September 6, 2022
Page 2

    

 

“Date
of Termination” means the date on which your employment with the Company terminates, regardless of the reason and regardless
of whether such termination is initiated by you or by the Company.

 

“Disability”
means your inability to engage in the essential functions of your position by reason of any medically determinable physical or mental
impairment that can be expected to result in death or that can be expected to last for a continuous period of not less than six months,
as determined by a physician selected by the Company and reasonably acceptable to you or your legal representative.

 

“Good
Reason” means any of the following without your consent: (i) a material diminution in your authority, duties, or responsibilities;
or (ii) any other action or inaction that constitutes a material breach by the Company of this Agreement.

 

“Intellectual
Property” means any and all intellectual and industrial property rights and other similar proprietary rights, in any jurisdiction
throughout the world, whether registered or unregistered, including all rights pertaining to or deriving from patents, trademarks, copyrights,
software, trade secrets know-how and confidential or proprietary information, and including all associated past, present and future enforcement
rights and rights of priority therein or associated therewith.

 

“Invented”
means made, conceived, created, discovered, invented, authored, first actually reduced to practice, or otherwise developed, whether solely
or jointly with a third party.

 

“Invention”
means any invention, modification, design, documentation, procedure, development, formula, therapy, diagnostic technique, discovery,
improvement, idea, technique, design, method, art, process, methodology, algorithm, machine, development, product, service, technology,
strategy, software (including source code and object code), work of authorship or other Works (as defined in Section 7), trade secret,
innovation, trademark, data, database, including all improvements, versions, modifications, enhancements and derivative works of the
above, in each case whether or not patentable, together with all Intellectual Property therein.

 

“Person”
means any individual, natural person, corporation (including any non-profit corporation), general partnership, limited partnership, limited
liability partnership, joint venture, estate, trust, company (including any company limited by shares, limited liability company or joint
stock company), incorporated or unincorporated association, governmental authority, firm, society or other enterprise, organization or
other entity of any nature.

 

“Restricted
Period” means the twenty-four month period immediately following the Date of Termination.

 

“Subsidiary”
means any direct or indirect majority owned subsidiary of the Company at any time and from time to time.

 

2.
Position; Reporting; Responsibilities

 

During
the Term (as defined below), you will serve in the role of Chief Executive Officer of the Company (“CEO”) and will
report directly to the Board of Directors of the Company (the “Board”). As CEO, you will be responsible for the day
to day operation of the Company, and will have such duties, responsibilities and authority as are customary for the position of a Chief
Executive Officer of a similarly sized publicly traded company, subject to the direction of the Board. You agree to diligently and conscientiously
devote your full business time, attention, energy, skill and reasonable best efforts to your services under this Agreement. In addition,
during the Term: (i) the Company agrees to nominate you for election to the Board and, if properly elected, you agree to, and will serve,
on the Board, subject to, and in accordance with, the terms of the Company’s organizational documents and applicable law and (ii)
you will hold such other officerships and directorships with the Company Group to which, from time to time, you may be appointed or elected,
in each case under clauses (i) and (ii), with no additional compensation payable to you.

 

    	 

    	Mr. John North
September 6, 2022
Page 3

    

 

3.
Term

 

Your
service as CEO will commence no later than September 6, 2022 and will terminate at the Date of Termination. The period of your service
as CEO is referred to in this Agreement as the “Term.” The first day of the Term is referred to in this Agreement
as the “Start Date.” This Agreement shall not be effective until you commence employment with the Company as its CEO,
and if you do not commence employment as CEO of the Company by September 6, 2022, then this Agreement shall be null and void ab initio.

 

4.
Compensation

 

As
compensation for your services during the Term:

 

(a)
During the Term, you will receive a base salary at the rate of $600,000 per annum (“Base Salary”), pro-rated for partial
years worked (to be paid in accordance with the Company’s normal payroll practices, as in effect from time to time).

 

(b)
During the Term, you will be offered participation in the Company’s employee benefit plans in accordance with the terms of those
plans (subject to your satisfaction of any eligibility and other requirements).

 

(c)
With respect to each calendar year that ends during the Term, commencing with the calendar year ending December 31, 2022, you will be
eligible to be awarded an annual cash bonus (the “Annual Bonus”) under the Company’s short term incentive compensation
plan as in effect from time to time (provided that your Annual Bonus awarded for 2022, if any, shall be pro-rated based on the number
of days you are employed by the Company during 2022). Your target Annual Bonus will be one-hundred percent (100%) of your Base Salary,
but with the actual Annual Bonus awarded for any such year to be based on attainment of one or more performance targets and/or key performance
objectives established by the Board and/or Compensation Committee of the Board (the “Compensation Committee”) in its
sole discretion. The Board and/or the Compensation Committee shall determine, each calendar year, the range of payouts of the Annual
Bonus based on the achievement of the relevant performance targets and/or key performance objectives, which shall be as low as 0% of
your target Annual Bonus and as high as 200% of your target Annual Bonus. Any awarded Annual Bonus will be payable on such date as is
determined by the Compensation Committee in its sole discretion, but in no event later than March 15th of the calendar year immediately
following the calendar year to which the Annual Bonus relates (the “Applicable Bonus Payment Date”). Notwithstanding
the above, no bonus will be payable with respect to any calendar year unless you remain continuously employed with the Company during
the period beginning on January 1 of the relevant year (provided that for 2022, you do not need to be employed by the Company on January
1, 2022) and ending on the Applicable Bonus Payment Date for that particular calendar year’s Annual Bonus.

 

(d)
On or within seven days after the Start Date, you will receive a one-time restricted stock unit award containing terms substantially
similar to the terms of the Lazydays Holdings, Inc. Amended and Restated 2018 Long Term Incentive Plan (the “Plan”)
and an award agreement to be entered into between you and the Company for 105,308 shares (the “RSU Award”). The RSU
Award shall contain such terms and conditions as determined by the Company.

 

The
RSU Award vests over three years as follows: one-third on the first anniversary of the Start Date, one-third on the second anniversary
of the Start Date and one-third on the third anniversary of the Start Date, provided that you remain employed by the Company from the
grant date through the vesting period. Notwithstanding the above, in the event of your death or Disability after the Start Date, but
prior to the third anniversary of the Start Date, the RSU Award each vest in full, at the time of death or Disability.

 

    	 

    	Mr. John North
September 6, 2022
Page 4

    

 

(e)
With respect to each calendar year that ends during the Term, commencing with the calendar year ending December 31, 2022, you will be
eligible to receive annual grants of options under the Plan (or a successor equity plan). The annual grants of options will be for a
maximum potential of 2.5 times your Base Salary, with a term of four years from the grant date (the “Annual Grant”).
If performance targets and/or key performance objectives are not met, you will not be eligible for the annual grant of options for the
applicable calendar year. The terms, conditions and amount of any such grant will be determined in the discretion of the Board and/or
the Compensation Committee, and the Company has no obligation to make any such grant or to provide any specific terms for any such grant.

 

(f)
During the Term, the Company will reimburse you for all reasonable travel and other business expenses incurred by you in the performance
of your duties to the Company Group in accordance with the Company Group’s applicable expense reimbursement policies and procedures.

 

(g)
If you relocate to the Tampa Bay area, you will be reimbursed for direct relocation expenses of up to $75,000.

 

(h)
The Company will pay for a furnished apartment in Tampa for one year, in an amount up to $70,000.

 

(i)
To the extent you do not receive any or all of your annual bonus from your previous employer for the fiscal year ending July 31, 2022,
the Company will reimburse you for the shortfall between the amount you receive from your previous employer and $455,000, up to a maximum
amount of $300,000.

 

5.
Termination

 

Your
employment and the Term may be terminated by the Company or you, as applicable, without any breach of this Agreement under the following
circumstances:

 

(a)
Circumstances.

 

(i)
Death. Your employment and the Term will terminate upon your death if not terminated earlier.

 

(ii)
Disability. If you incur a Disability, the Company may give you written notice of its intention to terminate the Term and
your employment. In that event, your employment with the Company and the Term will terminate, effective on the thirtieth day after the
date of such notice; provided that within the thirty day period following the date of such notice, you have not returned to full-time
performance of your duties under this Agreement.

 

(iii)
Termination for Cause. The Company may terminate your employment and the Term for Cause at any point during the Term. Such
termination shall be effective on the date the Company provides written notice of termination to you, or such later date specified in
such notice.

 

    	 

    	Mr. John North
September 6, 2022
Page 5

    

 

(iv)
Termination without Cause. The Company may terminate your employment and the Term without Cause at any point during the
Term. Such termination shall be effective on the date the Company provides written notice of termination to you, or such later date specified
in such notice.

 

(v)
Resignation for Good Reason. You may resign from your employment with the Company and terminate the Term for Good Reason
(which does not include your death or Disability). A termination by you will not constitute termination for Good Reason unless you first
have delivered to the Company written notice setting forth with specificity the occurrence deemed to give rise to a right to terminate
for Good Reason (which notice must be given no later than thirty days after the initial occurrence of such event), and sixty days have
passed within which the Company may take action to correct, rescind or otherwise substantially reverse the occurrence supporting termination
for Good Reason as identified by you. If the Company does not cure the event alleged to constitute Good Reason within such period and
such event is in fact Good Reason, then you must resign within 90 days after the expiration of the Company’s cure period, as well
as resign as a director of the Company in order for such termination to be treated as being for Good Reason.

 

(vi)
Resignation for any reason other than Good Reason. You may resign from your employment with the Company and terminate the
Term for any reason other than Good Reason, provided that you provide the Company with 90 days advanced written notice of termination
and you also resign as a director of the Company; provided, however, that following its receipt of such notice, the Company may elect
to accelerate the date of your termination to an earlier date (including to the date of such notice), and no such action shall entitle
you to severance, pay in lieu of notice, compensation or benefits or change the classification of such termination to something other
than your resignation without Good Reason.

 

(b)
Resignations; No Further Compensation or Benefits. Upon the Date of Termination, you shall be deemed to have immediately resigned
from any and all officer, director and other positions you then hold with any member of the Company Group or any of their respective
affiliates (and this Agreement shall constitute notice of resignation by you without any further action by you), and you agree to execute
and deliver such further instruments as are requested by the Company in furtherance of the above. Except as expressly provided in Section
6, all rights you may have to compensation and employee benefits from any member of the Company Group or any of their respective affiliates
shall terminate immediately upon the Date of Termination.

 

6.
Company Obligations Upon Termination of Employment

 

(a)
In General. Upon a termination of your employment for any reason, you (or your estate, as applicable) will be entitled to receive:
(i) any Base Salary that is earned through, but unpaid as of, the Date of Termination (to be paid in accordance with Company policy),
(ii) any unreimbursed business expenses incurred prior to the Date of Termination in accordance with Company policy and owed to you under
Section 4(f), and (iii) any earned vested benefits under any employee benefit plans under Section 4(b) in which you were a participant
immediately prior to the Date of Termination, which amounts will be payable in accordance with the terms and conditions of such benefit
plans and Company policy. Except as otherwise set forth in Section 6(b) below, the payments and benefits described in this Section 6(a)
will be the only payments and benefits payable in the event of your termination of employment for any reason (collectively, clauses (i)
through (iii) are the “Accrued Benefits”).

 

    	 

    	Mr. John North
September 6, 2022
Page 6

    

 

(b)
Severance Payment.

 

(i)
In the event of: (A) your termination of employment by the Company without Cause (and not due to death or Disability), or (B) your resignation
for Good Reason, in either case, prior to January 1, 2027 then, in addition to the Accrued Benefits, the Company will pay to you, subject
to Section 6(b)(ii), as severance an amount equal to two times the sum of: (x) your Base Salary in effect immediately prior to the Date
of Termination and (y) 100% of the target Annual Bonus for the year in which the Date of Termination occurs (the amounts described in
Sections 6(b)(i)(x) and (y), collectively, the “Severance”), to be paid in accordance with the Company’s applicable
payroll policies, provided that the Release (as defined below) becomes effective and irrevocable. Additionally, in the event of your
termination of employment by the Company without Cause or by you for Good Reason, for purposes of the vesting of your equity awards,
your service will be deemed to have ended two years after the Date of Termination.

 

(ii)
The payments described in Section 6(b)(i) are in lieu of notice and any other severance payments or benefits to which you might otherwise
be entitled. Regardless of anything to the contrary in this Agreement, (A) no portion of the payments described in Section 6(b)(i) will
be paid or provided unless you timely execute a separation agreement (the “Release”) that includes a general waiver
and release of claims and covenant not to sue in the Company’s then customary form for executives during the time period specified
therein (which shall be either 21 days or 45 days after such Release is provided to you, with the Release to be provided by the Company
to you within seven days after the Date of Termination) and you do not revoke the Release after you have executed it (the Release will
contain a 7 day revocation period), and (B) as of the first date on which you violate any covenant contained in Section 7, the Company’s
obligation to make any further payments described in Section 6(b)(i) immediately will cease and you shall be required to promptly return
any payments to the Company that were previously paid under Section 6(b)(i).

 

(c)
The provisions of this Section supersede in their entirety any severance payment provisions in any severance plan, policy, program or
other arrangement maintained by the Company or any member of the Company Group.

 

7.
Restrictive Covenants

 

(a)
You agree that, during the Term and the Restricted Period, you will not, whether individually as a director, manager, member, stockholder,
partner, owner, employee, consultant or agent of any business, or in any other capacity, other than during your employment with the Company
on behalf of the Company Group, organize, establish, own, operate, manage, control, engage in, participate in, invest in, permit your
name to be used by, act as a consultant, employee or advisor to, render services for (alone or in association with any Person), or otherwise
assist any Person that engages in or owns, invests in, operates, manages or controls any venture or enterprise which engages or proposes
to engage in any business relating to RV dealerships: (x) on the Date of Termination or (y) within twelve months prior to the Date of
Termination, in each case, in the geographic locations where the Company Group engages or proposes to engage in such business (collectively,
a “Competitive Business”). It is acknowledged and agreed that companies whose principal business is auto insurance
or auto financing; vehicle maintenance or repair; auto parts; non-mobility-related franchising; automotive retailing; or auto manufacturing
will not be deemed to compete with the business of the Company Group.

 

    	 

    	Mr. John North
September 6, 2022
Page 7

    

 

(b)
You agree that, during the Term and the Restricted Period, you will not, directly or indirectly, either for yourself or on behalf of
any other Person, (i) Solicit any Person, consultant or independent contractor who was employed by the Company Group at any time during
the twelve month period immediately prior to the Date of Termination or who thereafter becomes employed by the Company Group (each, a
“Company Employee”), or (ii) participate in any way in a decision to hire a Company Employee. For purposes of this
Agreement, the term “Solicit” means to recruit, offer, induce, or otherwise persuade (or to assist or encourage any
other Person to do so), directly or indirectly, a Company Employee to terminate his or her employment with the Company Group and/or to
perform services for you or for any other Person, whether as a principal, director, officer, employee, agent, representative, partner,
member, security holder, consultant, advisor, independent contractor, owner, investor, participant or in any other capacity.

 

(c)
You agree that, during the Term and the Restricted Period, you will not, directly or indirectly, either for yourself or on behalf of
any other Person, (i) call upon, accept business from, or solicit the business of any Person who is or who had been at any time during
the twelve month period immediately prior to the Date of Termination, a customer, supplier or vendor of the Company Group or a prospective
customer, supplier or vendor that the Company Group was actively engaged in discussions with or (ii) divert business, supplies, services
or materials from, or otherwise interfere with, the Company’s business relationship with any of the Company’s customers,
suppliers or vendors. You further agree that if any such customer, supplier or vendor contacts you during the Term or the Restricted
Period in respect of doing business with you, you will advise such customer, supplier or vendor of the restrictions on your ability to
do business with such customer, supplier or vendor contained in this Agreement.

 

(d)
You will not at any time, directly or indirectly, use or purport to authorize any Person to use any name, mark, logo, trade dress or
identifying words or images which are the same as or similar to those used at any time by the Company Group in connection with any product
or service.

 

(e)
Except as you reasonably and in good faith determine to be required in the faithful performance of your duties under this Agreement while
employed by the Company or in accordance with Sections 7(g), (p) and (q), you will, during the Term and at all times after the Date of
Termination, maintain in confidence and will not directly or indirectly, use, disseminate, disclose or publish, or use for your benefit
or the benefit of any other Person, any confidential or proprietary information or trade secrets of or relating to the Company Group,
including, without limitation, information with respect to the Company Group’s members, operations, processes, protocols, products,
inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices,
contractual relationships, regulatory status, compensation paid to employees or other terms of employment (collectively, “Proprietary
Information”), or deliver to any other Person, any document, record, notebook, computer program or similar repository of or
containing any such Proprietary Information. Your obligation to maintain and not use, disseminate, disclose or publish, or use for your
benefit or the benefit of any other Person, any Proprietary Information after the Date of Termination will continue so long as such Proprietary
Information is not, or has not by legitimate means become, generally known and in the public domain (other than by means of your direct
or indirect disclosure of such Proprietary Information) and continues to be maintained as Proprietary Information by the Company Group.
The parties to this Agreement stipulate and agree that as between them, the Proprietary Information identified in this Agreement is important,
material and affects the successful conduct of the businesses of the Company Group (and any successor or assignee of the Company Group).

 

(f)
Upon termination of your employment with the Company for any reason or upon earlier request by the Company, you will promptly deliver
to the Company: (i) all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial
documents, or any other documents that are, or include, Proprietary Information, including all physical and digital copies of the same,
and (ii) all other Company property (including, without limitation, any personal computer or wireless device and related accessories,
keys, credit cards and other similar items) which is in your possession, custody or control.

 

(g)
You may respond to a lawful and valid subpoena or other legal process but must give the Company the earliest possible notice of such
subpoena or other legal process, and must, as much in advance of the return date as possible, make available to the Company and its counsel
the documents and other information sought, and must assist such counsel in resisting or otherwise responding to such process.

 

    	 

    	Mr. John North
September 6, 2022
Page 8

    

  

(h)
You agree not to disparage any member of the Company Group, any of their respective products or practices, or any of their respective
managers, officers, agents, representatives, members or affiliates, either orally or in writing, at any time; provided that you may confer
in confidence with your legal representatives and make truthful statements as required by law.

 

(i)
You have attached to this Agreement, as Exhibit A, a list describing with particularity all Inventions that were Invented by you
prior to the commencement of the Term (collectively, “Prior Inventions”) which: (i) are owned in whole or part by
you or in which you have an interest, (ii) relate in any way to any of the Company Group’s actual or proposed businesses, products
or research and development, and (iii) are not assigned to the Company hereunder. If no such list is attached, you represent that there
are no such Prior Inventions. You agree not to incorporate into any Company Group product, process or machine any Prior Invention, or
any Invention owned by a third party. If notwithstanding the above during the Term, you incorporate any Prior Invention into any Company
Group product, process or machine, then you hereby grant to the Company a non-exclusive, royalty-free, irrevocable, perpetual, worldwide
license (with the right to sublicense) to make, have made, copy, modify, make derivative works of, use, sell, offer to sell, import,
and otherwise distribute such Prior Invention as part of or in connection with such product, process or machine.

 

(j)
You acknowledge and agree that all Company Inventions hereby are and shall be the sole and exclusive property of the Company. You further
acknowledge and agree that any rights arising in you in any Invention Invented by you, whether alone or jointly with others, during the
one year period following the Date of Termination and relating in any way to work performed by you for any member of the Company Group
during your employment with or service for any member of the Company Group (“Post-employment Inventions”), shall hereby
be deemed to be Company Inventions and the sole and exclusive property of the Company; provided, however, that the Company in its sole
discretion may elect to compensate you for any Post-employment Inventions. For consideration acknowledged and received, you hereby irrevocably
assign, convey and set over to the Company all of your right, title and interest in and to all Company Inventions. You acknowledge and
agree that the compensation received by you for employment or services provided to the Company is adequate consideration for the above
assignment. You further agree to disclose in writing to the Company any Company Inventions (including, without limitation, all Post-employment
Inventions), promptly following their conception or reduction to practice. Such disclosure shall be sufficiently complete in technical
detail and appropriately illustrated by sketch or diagram to convey to one skilled in the art of which the Company Invention pertains,
a clear understanding of the nature, purpose, operations, and other characteristics of the Company Invention. You agree to execute and
deliver such deeds of assignment or other documents of conveyance and transfer as the Company may request to confirm in the Company or
its designee the ownership of the Company Inventions, without compensation beyond that provided in this Agreement. You further agree,
upon the request of the Company and at its expense, that you will execute any other instrument and document necessary or desirable in
applying for and obtaining patents in the United States and in any foreign country with respect to any Company Invention. You further
agree, whether or not you are then an employee or other service provider of any member of the Company Group, upon request of the Company,
to provide reasonable assistance with respect to the perfection, recordation or other documentation of the assignment of Company Inventions
hereunder, and the enforcement of the Company’s rights in any Company Inventions, and to cooperate to the extent and in the manner
reasonably requested by the Company in any litigation or other claim or proceeding (including, without limitation, the prosecution or
defense of any claim involving a patent) involving any Company Inventions covered by this Agreement, without further compensation but
all reasonable out-of-pocket expenses incurred by you in satisfying the requirements of this section shall be paid by the Company or
its designee. Without limiting the foregoing, you hereby irrevocably designate and appoint the Company and its duly authorized officers
and agents as your agent and attorney-in-fact, to act for and on your behalf to execute and file any application or applications or other
documents for patents, copyrights or trademark registrations or any other legal protection thereon, and to do all other lawfully permitted
acts to further the prosecution and issuance of such patent, copyright or trademark registrations or any other legal protection thereon
with the same legal force and effect as if executed by you. You shall not, on or after the date of this Agreement, directly or indirectly
challenge the validity or enforceability of the Company’s ownership of, or rights with respect to, any Company Invention, including,
without limitation, any patent issued on, or patent application filed in respect of, any Company Invention. For the avoidance of doubt,
the term “Company Invention” is deemed not to include any Invention to the extent it is non-assignable under the provisions
of applicable law.

 

    	 

    	Mr. John North
September 6, 2022
Page 9

    

  

(k)
You also acknowledge and agree that all works of authorship, in any format or medium, and whether published or unpublished, created wholly
or in part by you, whether alone or jointly with others, (i) in the course of, in connection with, or as a result of your employment
or other service with any member of the Company Group (whether before or after the date of this Agreement), (ii) at the direction or
request of any member of the Company Group (whether before or after the date of this Agreement), or (iii) through the use of, or that
is related to, facilities, equipment, Proprietary Information, other Company Inventions, Intellectual Property or other resources of
any member of the Company Group, whether or not during your work hours (whether before or after the date of this Agreement) (“Works”),
are works made for hire as defined under United States copyright law, and that the Works (and all copyrights arising in the Works) are
owned exclusively by the Company and all rights therein will automatically vest in the Company without the need for any further action
by any party. To the extent any such Works are not deemed to be works made for hire, for consideration acknowledged and received, you
hereby waive any “moral rights” in such Works and you hereby irrevocably assign, transfer, convey and set over to the Company,
without compensation beyond that provided in this Agreement, all right, title and interest in and to such Works, including without limitation
all rights of copyright arising therein or thereto, and further agree to execute such assignments or other deeds of conveyance and transfer
as the Company may request to vest in the Company or its designee all right, title and interest in and to such Works, including all rights
of copyright arising in or related to the Works.

 

(l)
During and after the Term, you agree to cooperate with the Company Group (and its counsel) in any internal investigation, any administrative,
regulatory, or judicial proceeding or any dispute with a third party concerning issues about which you have knowledge or that may relate
to you or your employment or service with any member of the Company Group (or the termination thereof). Your obligation to cooperate
hereunder includes, without limitation, being available to the Company Group upon reasonable notice for interviews and factual investigations,
appearing in any forum at the Company Group’s request to give testimony (without requiring service of a subpoena or other legal
process), volunteering to the Company Group pertinent information, and turning over to the Company Group all relevant documents which
are or may come into your possession. The Company shall promptly reimburse you for the reasonable pre-approved (in writing) out-of-pocket
expenses incurred by you at the Company Group’s request in connection with such cooperation. For the avoidance of doubt, the immediately
preceding sentence shall not require the Company to reimburse you for any attorneys’ fees or related costs you may incur absent
prior written approval by the Company.

 

(m)
Prior to accepting other employment or any other service relationship during the Restricted Period, you must provide a copy of this Section
7 to any recruiter who assists you in obtaining other employment or any other service relationship and to any employer or other Person
in the Company’s industry with which you discuss potential employment or any other service relationship.

 

(n)
In the event the terms of this Section 7 will be determined by any court of competent jurisdiction to be unenforceable by reason of its
extending for too great a period of time or over too great a geographical area or by reason of its being too extensive in any other respect,
it will be interpreted to extend only over the maximum period of time for which it may be enforceable, over the maximum geographical
area as to which it may be enforceable, or to the maximum extent in all other respects as to which it may be enforceable, all as determined
by such court in such action. Any breach or violation by you of the provisions of this Section 7 will toll the running of any time periods
set forth in this Section 7 (to the extent not perpetual) for the duration of any such breach or violation.

 

    	 

    	Mr. John North
September 6, 2022
Page 10

    

 

(o)
You acknowledge and agree that the members of the Company Group and their respective affiliates will have no adequate remedy at law and
will be irreparably harmed if you breach or threaten to breach any of the provisions of this Section 7. You agree that the members of
the Company Group and their respective affiliates shall be entitled to equitable and/or injunctive relief to prevent any breach or threatened
breach of any provision of this Section 7, and to specific performance of each of the terms of Section 7, in each case, in addition to
any other legal or equitable remedies that any of them may have, as well as the costs and reasonable attorneys’ fees it/they incur
in enforcing any of the provisions of this Section 7. You further agree that (i) any breach or claimed breach of the provisions set forth
in this Agreement by, or any other claim you may have against, any member of the Company Group or any of their respective affiliates
will not be a defense to enforcement of any provision of this Section 7 and (ii) the circumstances of your termination of employment
with the Company will have no impact on your obligations to comply with any of the provisions of this Section 7. The provisions of this
Section 7 are intended for the benefit of the Company and each of its affiliates and the other members of the Company Group. Each affiliate
of the Company and each other member of the Company Group is an intended third party beneficiary of the provisions of this Section 7,
and each affiliate of the Company and each other member of the Company Group, as well as any successor or assign of the Company or such
affiliate or member of the Company Group, may enforce the provisions of this Section 7. You further agree that the provisions of this
Section 7 are in addition to, and not in lieu of, any non-competition, non-solicitation, protection of confidential information, non-disparagement
or intellectual property, or other similar covenants in favor of the Company or any of its affiliates or other member of the Company
Group by which you may be bound, and any such non-competition, non-solicitation, protection of confidential information, non-disparagement
or intellectual property, or other similar covenants shall not supersede, or be superseded by, any of the provisions of this Section
7.

 

(p)
You understand that nothing contained in this Agreement or otherwise limits your ability to communicate with the Equal Employment Opportunity
Commission, the National Labor Relations Board, the Securities and Exchange Commission, the Department of Justice or any other federal,
state or local governmental agency or commission (collectively, “Governmental Agencies”) or otherwise participate
in any investigation or proceeding that may be conducted by any Governmental Agency, including providing documents or other information,
without notice to the Company. You may not, however, waive the Company’s attorney-client privilege.

 

(q)
You and the Company acknowledge that pursuant to 18 U.S.C § 1833(b)(1), you will not be held criminally or civilly liable under
any federal or state trade secret law for the disclosure of a trade secret that (i) is made (A) in confidence to a federal, state, or
local government official, either directly or indirectly, or to an attorney; and (B) solely for the purpose of reporting or investigating
a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing
is made under seal. You and the Company further acknowledge that, pursuant to 18 U.S.C § 1833(b)(2) if you file a lawsuit for retaliation
by the Company for reporting a suspected violation of law, you may disclose the trade secret to your attorney and use the trade secret
information in the court proceeding, if you: (x) file any document containing the trade secret under seal; and (y) do not disclose the
trade secret, except pursuant to court order.

 

(r)
You acknowledge the Company’s Stock Ownership and Holding Requirements Guidelines.

 

    	 

    	Mr. John North
September 6, 2022
Page 11

    

 

8.
Miscellaneous

 

(a)
Representations. You represent that you are entering into this Agreement voluntarily and that your service under this Agreement
and compliance with the terms and conditions of this Agreement will not conflict with or result in the breach by you of any agreement
to which you are a party or by which you may be bound, and that in performing your services under this Agreement, you will not use any
confidential or proprietary information that you may have obtained in connection with your employment or engagement with any other Person.
You further represent that no agreement or court order to which you are a party, bound or subject will limit or restrict in any respect
the performance of your duties or responsibilities to the Company Group.

 

(b)
Governing Law; Venue; WAIVER OF JURY TRIAL. This Agreement shall be governed by and construed in accordance with the laws of the
State of Florida, applied without reference to principles of conflicts of law. Both you and the Company agree to appear before and submit
exclusively to the jurisdiction of the appropriate state court sitting in Hillsborough County, Florida or the United States District
Court for the Middle District of Florida (Tampa Division) with respect to any controversy, dispute, or claim arising out of or relating
to this Agreement, your employment or service with any member of the Company Group or the termination of such employment or service.
Both you and the Company also agree to waive, to the fullest possible extent, the defense of an inconvenient forum or lack of jurisdiction.
THE COMPANY AND YOU WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY LITIGATION IN ANY COURT WITH RESPECT TO,
IN CONNECTION WITH, OR ARISING OUT OF YOUR EMPLOYMENT BY, OR SERVICE WITH, ANY MEMBER OF THE COMPANY GROUP OR THE TERMINATION OF YOUR
EMPLOYMENT OR SERVICE WITH ANY MEMBER OF THE COMPANY GROUP, OR THIS AGREEMENT OR THE VALIDITY, PROTECTION, INTERPRETATION, COLLECTION
OR ENFORCEMENT OF THIS AGREEMENT (WHETHER ARISING IN CONTRACT, EQUITY, TORT OR OTHERWISE).

 

(c)
Taxes; Code Section 409A: All amounts payable under this Agreement shall be reduced by all applicable payroll deductions and withholding
taxes. This Agreement is intended to be exempt from (and if not exempt from, then compliant with) Section 409A of the Internal Revenue
Code of 1986, as amended (the “Code”) and shall be interpreted consistent with such intention, but without increasing
the cost under this Agreement to the Company. All reimbursements under this Agreement shall be paid in accordance with Company policy,
but in no event later than the last day of the calendar year immediately following the calendar year in which the applicable expense
was incurred. No reimbursement or in-kind benefit shall be subject to liquidation or exchange for another benefit, and the amount available
for reimbursement or in-kind benefits in one calendar year shall not impact the amount available for reimbursement or in-kind benefits
in any other calendar year. Solely to the extent required by Code Section 409A, if you are a “specified employee” (within
the meaning of Code Section 409A) at the time of your termination of employment with the Company, then any portion of the Severance that
otherwise would have been paid within six months after the date of your “separation from service” (within the meaning of
Code Section 409A) instead shall be withheld and paid in a lump sum payment (without interest) on the first day of the seventh month
following your “separation from service” (within the meaning of Code Section 409A) or if earlier, within 10 days after the
date of your death (but not earlier than such payments would have been made absent your death), with all remaining payments to be made
in the same manner as if no such delay had occurred. To the extent required by Code Section 409A, the Severance (and any other amounts
payable under this Agreement as the result of your termination of employment) shall not commence or be payable unless and until your
qualifying termination of employment constitutes a “separation from service” (within the meaning of Code Section 409A). Each
payment in a series of payments under this Agreement shall be treated as a separate payment for purposes of Code Section 409A. Notwithstanding
anything contained in this Agreement to the contrary, in no event shall any member of the Company Group have any liability to you or
any other Person for any interest, taxes or penalties, including any under Code Section 409A.

 

    	 

    	Mr. John North
September 6, 2022
Page 12

    

 

(d)
Amendment; Waiver. No provision of this Agreement may be amended or waived otherwise than by a written agreement executed by the
parties or their respective successors and legal representatives that specifies the provision of this Agreement being amended or waived.
The waiver by either party of any right under this Agreement or of any breach by the other party will not be deemed a waiver of any other
right under this Agreement or of any other breach by the other party. No waiver will constitute a continuing waiver unless specifically
stated, and any waiver will operate only as to the specific term or condition waived.

 

(e)
Notices. All notices and other communications hereunder shall be in email or in writing, and if in writing, shall be given by
hand-delivery to the other party by delivery by reputable overnight courier, fees prepaid, addressed as follows:

 

To
the Company: At its headquarters, addressed to the Board.

 

To
you: at your residence address most recently filed with the Company;

 

or
to such other address as any party shall have furnished to the other in writing in accordance herewith. All such notices shall be deemed
to have been duly given: (i) when delivered personally to the recipient or when sent if by email (unless the message is returned as undelivered)
or (ii) one (1) business day after being sent to the recipient by reputable overnight courier service (charges prepaid). If you provide
an email notice, it must be sent to all members of the Board (other than you), and any email notice provided by the Company shall be
sent to your work email (unless you specify a different email address to the Company).

 

(f)
Severability. The terms and provisions of this Agreement are intended to be separate and divisible provisions and if, for any
reason, any one or more of them is held to be invalid or unenforceable, neither the validity nor the enforceability of any other provision
of this Agreement will be affected.

 

(g)
Counterparts; Entire Agreement. This Agreement may be executed in counterparts and delivered by facsimile transmission or electronic
transmission in “portable document format,” each of which shall be an original and which taken together will constitute one
and the same document. This Agreement contains the entire agreement concerning its subject matter and supersedes all prior and contemporaneous
agreements, understandings, discussions, negotiations and undertakings, whether written or oral, between the parties and their respective
affiliates relating to such subject matter.

 

(h)
Assignment. The Company may assign its rights and/or delegate its obligations under this Agreement to any of its Subsidiaries
or to any purchaser or other successor of the Company or any of its Subsidiaries, and in connection with any such delegation of its obligations
under this Agreement (but only so long as such assignee or delegee has consented in writing to be bound by the obligations under this
Agreement) shall be released from such obligations under this Agreement. This Agreement may not be assigned by you. This Agreement shall
bind and inure to the benefit of and be enforceable by you, the Company and your and the Company’s respective successors and permitted
assigns.

 

(i)
Captions. The captions of this Agreement are not part of the provisions of this Agreement and shall have no force or effect.

 

(j)
Survivorship. The provisions of Sections 1, 5(b), 7 and 8 shall survive the termination of your employment with the Company, the
termination of the Term and the termination of this Agreement, in each case, in accordance with their respective terms.

 

[Signature
page follows]

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement, each as of the date first above written.

 

	 	LAZYDAYS
    HOLDINGS, INC.
	 	 	 
	 	By:	 
	 	Name:	Nicholas
    Tomashot
	 	Title:	Chief
    Financial Officer
	 	 
	 	 
	 	John
    North
	 	 
	 	 
	 	John
    North

 

[Signature
Page to Employment Agreement] 

 

    	 

     

    

 

EXHIBIT
A

PRIOR
INVENTIONS

 

None.

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