Document:

Exhibit
10.3

 

SURGEPAYS,
INC.

 

DIRECTOR
AND OFFICER INDEMNIFICATION AGREEMENT

 

This
Director and Officer Indemnification Agreement, dated as of December 19, 2022 (the “Agreement”), is made by
and between SurgePays, Inc., a Nevada corporation (the “Company”), and [  ], (the “Indemnitee”).

 

RECITALS:

 

A.
Nevada Revised Statutes Chapter 78 provides that the business and affairs of a corporation shall be managed by or under the direction
of its board of directors.

 

B.
By virtue of the managerial prerogatives vested in the directors and officers of a Nevada corporation, directors and officers act as
fiduciaries of the corporation and its stockholders.

 

C.
It is critically important to the Company and its stockholders that the Company be able to attract and retain the most capable persons
reasonably available to serve as directors and officers of the Company.

 

D.
In recognition of the need for corporations to be able to induce capable and responsible persons to accept positions in corporate management,
Nevada law authorizes (and in some instances requires) corporations to indemnify their directors and officers, and further authorizes
corporations to purchase and maintain insurance for the benefit of their directors and officers.

 

E.
Courts have recognized that indemnification by a corporation serves the dual policies of (1) allowing corporate officials to resist unjustified
lawsuits, secure in the knowledge that, if vindicated, the corporation will bear the expense of litigation, and (2) encouraging capable
women and men to serve as corporate directors and officers, secure in the knowledge that the corporation will absorb the costs of defending
their honesty and integrity.

 

F.
The number of lawsuits challenging the judgment and actions of directors and officers of corporations, the costs of defending those lawsuits
and the threat to personal assets have all materially increased over the past several years, chilling the willingness of capable women
and men to undertake the responsibilities imposed on corporate directors and officers.

 

G.
Recent federal legislation and rules adopted by the Securities and Exchange Commission and the national securities exchanges have exposed
such directors and officers to new and substantially broadened civil liabilities.

 

H.
Under Nevada law, a director’s or officer’s right to be reimbursed for the costs of defense of criminal actions, whether
such claims are asserted under state or federal law, does not depend upon the merits of the claims asserted against the director or officer
and is separate and distinct from any right to indemnification the director may be able to establish.

 

I.
Indemnitee is, or will be, a director of the Company and his or her willingness to serve in such capacity is predicated, in substantial
part, upon the Company’s willingness to indemnify him or her in accordance with the principles reflected above, to the fullest
extent permitted by the laws of the State of Nevada, and upon the other undertakings set forth in this Agreement.

 

J.
In recognition of the need to provide Indemnitee with substantial protection against personal liability, in order to procure Indemnitee’s
service as a director of the Company and to enhance Indemnitee’s ability to serve the Company in an effective manner, and in order
to provide such protection pursuant to express contract rights (intended to be enforceable irrespective of, among other things, any amendment
to the Company’s certificate of incorporation or bylaws (collectively, the “Constituent Documents”),
any change in the composition of the Company’s Board of Directors (the “Board” or any change-in-control
or business combination transaction relating to the Company), the Company wishes to provide in this Agreement for the indemnification
and advancement of Expenses (as defined herein) to Indemnitee on the terms, and subject to the conditions, set forth in this Agreement.

 

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K.
In light of the considerations referred to in the preceding recitals, it is the Company’s intention and desire that the provisions
of this Agreement be construed liberally, subject to their express terms, to maximize the protections to be provided to Indemnitee hereunder.

 

AGREEMENT:

 

NOW,
THEREFORE, the parties hereto hereby agree as follows:

 

1.
Certain Definitions. In addition to terms defined elsewhere herein, the following terms have the following meanings when used
in this Agreement with initial capital letters:

 

(a)
“Change in Control” shall have occurred at such time, if any, as Incumbent Directors cease for any reason to
constitute a majority of the directors. For purposes of this Section l(a), “Incumbent Directors” means the
individuals who, as of the date hereof, are directors of the Company and any individual becoming a director subsequent to the date hereof
whose election, nomination for election by the Company’s stockholders, or appointment, was approved by a vote of at least a majority
of the then Incumbent Directors (either by a specific vote or by approval of the proxy statement of the Company in which such person
is named as a nominee for director, without objection to such nomination); provided, however, that an individual shall not be
an Incumbent Director if such individual’s election or appointment to the Board occurs as a result of an actual or threatened election
contest (as described in Rule 14a-12(c) of the Securities Exchange Act of 1934, as amended) with respect to the election or removal of
directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board.

 

(b)
“Claim” means (i) any threatened, asserted, pending or completed claim, demand, action, suit or proceeding,
whether civil, criminal, administrative, arbitrative, investigative or other, and whether made pursuant to federal, state or other law;
and (ii) any inquiry or investigation, whether made, instituted or conducted by the Company or any other Person, including, without limitation,
any federal, state or other governmental entity, that Indemnitee reasonably determines might lead to the institution of any such claim,
demand, action, suit or proceeding. For the avoidance of doubt, the Company intends the indemnity to be provided hereunder in respect
of acts or failure to act prior to, on or after the date hereof.

 

(c)
“Controlled Affiliate” means any corporation, limited liability company, partnership, joint venture, trust
or other entity or enterprise, whether or not for profit, that is directly or indirectly controlled by the Company. For purposes of this
definition, “control” means the possession, directly or indirectly, of the power to direct or cause the direction
of the management or policies of an entity or enterprise, whether through the ownership of voting securities, through other voting rights,
by contract or otherwise; provided that direct or indirect beneficial ownership of capital stock or other interests in an entity
or enterprise entitling the holder to cast 15% or more of the total number of votes generally entitled to be cast in the election of
directors (or persons performing comparable functions) of such entity or enterprise shall be deemed to constitute control for purposes
of this definition.

 

(d)
“Disinterested Director” means a director of the Company who is not and was not a party to the Claim in respect
of which indemnification is sought by Indemnitee.

 

(e)
“Expenses” means reasonable attorneys’ and experts’ fees and expenses and all other costs and expenses
paid or payable in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing
to investigate, defend, be a witness in or participate in (including on appeal), any Claim.

 

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(f)
“lndemnifiable Claim” means any Claim based upon, arising out of or resulting from (i) any actual, alleged
or suspected act or failure to act by Indemnitee in his capacity as a director, officer, employee or agent of the Company or as a director,
officer, employee, member, manager, trustee or agent of any other corporation, limited liability company, partnership, joint venture,
trust or other entity or enterprise, whether or not for profit, as to which Indemnitee is or was serving at the request of the Company,
(ii) any actual, alleged or suspected act or failure to act by Indemnitee in respect of any business, transaction, communication, filing,
disclosure or other activity of the Company or any other entity or enterprise referred to in clause (i) of this sentence, or (iii) Indemnitee’s
status as a current or former director, officer, employee or agent of the Company or as a current or former director, officer, employee,
member, manager, trustee or agent of the Company or any other entity or enterprise referred to in clause (i) of this sentence or any
actual, alleged or suspected act or failure to act by Indemnitee in connection with any obligation or restriction imposed upon Indemnitee
by reason of such status. In addition to any service at the actual request of the Company, for purposes of this Agreement, Indemnitee
shall be deemed to be serving or to have served at the request of the Company as a director, officer, employee, member, manager, trustee
or agent of another entity or enterprise if Indemnitee is or was serving as a director, officer, employee, member, manager, agent, trustee
or other fiduciary of such entity or enterprise and (i) such entity or enterprise is, or at the time of such service was, a Controlled
Affiliate, (ii) such entity or enterprise is or at the time of such service was an employee benefit plan (or related trust) sponsored
or maintained by the Company or a Controlled Affiliate, or (iii) the Company or a Controlled Affiliate (by action of the Board, any committee
thereof or the Company’s Chief Executive Officer (“CEO”) (other than as the CEO himself)) caused or authorized Indemnitee
to be nominated, elected, appointed, designated, employed, engaged or selected to serve in such capacity.

 

(g)
“lndemnifiable Losses” means any and all Losses relating to, arising out of or resulting from any Indemnifiable
Claim; provided, however, that Indemnifiable Losses shall not include Expenses incurred by Indemnitee in respect of any Indemnifiable
Claim (or any matter or issue therein) as to which Indemnitee shall have been adjudged liable to the Company, unless and only to the
extent that the court in which such Indemnifiable Claim was brought shall have determined upon application that, despite the adjudication
of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification for such
Expenses as the court shall deem proper.

 

(h)
“Independent Counsel” means a nationally recognized law firm, or a member of a nationally recognized law firm,
that is experienced in matters of Nevada corporate law and neither presently is, nor in the past five years has been, retained to represent:
(i) the Company (or any subsidiary) or Indemnitee in any matter material to either such party (other than with respect to matters concerning
the Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements) or (ii) any other named (or, as
to a threatened matter, reasonably likely to be named) party to the Indemnifiable Claim giving rise to a claim for indemnification hereunder.
Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards
of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action
to determine Indemnitee’s rights under this Agreement.

 

(i)
“Losses” means any and all Expenses, damages, losses, liabilities, judgments, fines, penalties (whether civil,
criminal or other) and amounts paid or payable in settlement, including, without limitation, all interest, assessments and other charges
paid or payable in connection with or in respect of any of the foregoing.

 

(j)
“Person” means any individual, entity or group, within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934, as amended.

 

(k)
“Standard of Conduct” means the standard for conduct by Indemnitee that is a condition precedent to indemnification
of Indemnitee hereunder against Indemnifiable Losses relating to, arising out of or resulting from an Indemnifiable Claim. The Standard
of Conduct is (i) good faith and a reasonable belief by Indemnitee that his action was in or not opposed to the best interests of the
Company and, with respect to any criminal action or proceeding, that Indemnitee had no reasonable cause to believe that his conduct was
unlawful, or (ii) any other applicable standard of conduct that may hereafter be substituted under Nevada Revised Statutes Chapter 78.

 

2.
Indemnification Obligation. Subject only to Section 7 and to the proviso in this Section, the Company shall indemnify, defend
and hold harmless Indemnitee, to the fullest extent permitted by the laws of the State of Nevada in effect on the date hereof or as such
laws may from time to time hereafter be amended to increase the scope of such permitted indemnification, against any and all Indemnifiable
Claims and Indemnifiable Losses; provided, however, that, except as provided in Section 5, Indemnitee shall not be entitled to
indemnification pursuant to this Agreement in connection with (i) any Claim initiated by Indemnitee against the Company or any director
or officer of the Company unless the Company has joined in or consented to the initiation of such Claim or the Claim relates to or arises
from the enforcement or prosecution of a right to indemnification under this Agreement, or (ii) the purchase and sale by Indemnitee of
securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended. Nothing herein is intended to limit the
scope of permitted indemnification to Indemnitee under the laws of the State of Nevada.

 

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3.
Advancement of Expenses. Indemnitee shall have the right to advancement by the Company prior to the final disposition of any Indemnifiable
Claim of any and all actual and reasonable Expenses relating to, arising out of or resulting from any Indemnifiable Claim paid or incurred
by Indemnitee. Without limiting the generality or effect of any other provision hereof, Indemnitee’s right to such advancement
is not subject to the satisfaction of any Standard of Conduct. Without limiting the generality or effect of the foregoing, within five
business days after any request by Indemnitee that is accompanied by supporting documentation for specific reasonable Expenses to be
reimbursed or advanced, the Company shall, in accordance with such request (but without duplication), (a) pay such Expenses on behalf
of Indemnitee, (b) advance to Indemnitee funds in an amount sufficient to pay such Expenses, or (c) reimburse Indemnitee for such Expenses;
provided that Indemnitee shall repay, without interest, any amounts actually advanced to Indemnitee that, at the final disposition
of the Indemnifiable Claim to which the advance related, were in excess of amounts paid or payable by Indemnitee in respect of Expenses
relating to, arising out of or resulting from such Indemnifiable Claim. In connection with any such payment, advancement or reimbursement,
at the request of the Company, Indemnitee shall execute and deliver to the Company an undertaking, which need not be secured and shall
be accepted without reference to Indemnitee’s ability to repay the Expenses, by or on behalf of the Indemnitee, to repay any amounts
paid, advanced or reimbursed by the Company in respect of Expenses relating to, arising out of or resulting from any Indemnifiable Claim
in respect of which it shall have been determined, following the final disposition of such Indemnifiable Claim and in accordance with
Section 7, that Indemnitee is not entitled to indemnification hereunder.

 

4.
Indemnification for Additional Expenses. Without limiting the generality or effect of the foregoing, the Company shall indemnify
and hold harmless Indemnitee against and, if requested by Indemnitee, shall reimburse Indemnitee for, or advance to Indemnitee, within
five business days of such request accompanied by supporting documentation for specific Expenses to be reimbursed or advanced, any and
all actual and reasonable Expenses paid or incurred by Indemnitee in connection with any Claim made, instituted or conducted by Indemnitee
for (a) indemnification or reimbursement or advance payment of Expenses by the Company under any provision of this Agreement, or under
any other agreement or provision of the Constituent Documents now or hereafter in effect relating to Indemnifiable Claims, and/or (b)
recovery under any directors’ and officers’ liability insurance policies maintained by the Company; provided, however,
if it is ultimately determined that the Indemnitee is not entitled to such indemnification, reimbursement, advance or insurance recovery,
as the case may be, then the Indemnitee shall be obligated to repay any such Expenses to the Company; provided further, that,
regardless in each case of whether Indemnitee ultimately is determined to be entitled to such indemnification, reimbursement, advance
or insurance recovery, as the case may be, Indemnitee shall return, without interest, any such advance of Expenses (or portion thereof)
which remains unspent at the final disposition of the Claim to which the advance related.

 

5.
Partial Indemnity. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some
or a portion of any Indemnifiable Loss but not for the entire amount thereof, the Company shall nevertheless indemnify Indemnitee for
the portion thereof to which Indemnitee is entitled.

 

6.
Procedure for Notification. To obtain indemnification under this Agreement in respect of an Indemnifiable Claim or Indemnifiable
Loss, Indemnitee shall submit to the Company a written request therefore, including a brief description (based upon information then
available to Indemnitee) of such Indemnifiable Claim or Indemnifiable Loss. If, at the time of the receipt of such request, the Company
has directors’ and officers’ liability insurance in effect under which coverage for such Indemnifiable Claim or Indemnifiable
Loss is potentially available, the Company shall give prompt written notice of such Indemnifiable Claim or Indemnifiable Loss to the
applicable insurers in accordance with the procedures set forth in the applicable policies. The Company shall thereafter take all necessary
or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all Indemnifiable Claims and Indemnifiable Losses in
accordance with the terms of such policies. The Company shall provide to Indemnitee a copy of such notice delivered to the applicable
insurers, substantially concurrently with the delivery thereof by the Company. The failure by Indemnitee to timely notify the Company
of any Indemnifiable Claim or Indemnifiable Loss shall not relieve the Company from any liability hereunder unless, and only to the extent
that, the Company did not otherwise learn of such Indemnifiable Claim or Indemnifiable Loss and to the extent that such failure results
in forfeiture by the Company of substantial defenses, rights or insurance coverage.

 

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7.
Determination of Right to Indemnification.

 

(a)
To the extent that Indemnitee shall have been successful on the merits or otherwise in defense of any Indemnifiable Claim or any portion
thereof or in defense of any issue or matter therein, including, without limitation, dismissal without prejudice, Indemnitee shall be
indemnified against all Indemnifiable Losses relating to, arising out of or resulting from such Indemnifiable Claim in accordance with
Section 2 and no Standard of Conduct Determination (as defined in Section 7(b)) shall be required.

 

(b)
To the extent that the provisions of Section 7(a) are inapplicable to an Indemnifiable Claim that shall have been finally disposed of,
any determination required to be made under the laws of the State of Nevada as to whether Indemnitee has satisfied the applicable Standard
of Conduct (a “Standard of Conduct Determination”) shall be made as follows: (i) if a Change in Control shall
not have occurred, or if a Change in Control shall have occurred but Indemnitee shall have requested that the Standard of Conduct Determination
be made pursuant to this clause (i), (A) by a majority vote of the Disinterested Directors, even if less than a quorum of the Board,
(B) if such Disinterested Directors so direct, by a majority vote of a committee of Disinterested Directors designated by a majority
vote of all Disinterested Directors, or (C) if there are no such Disinterested Directors, or if a majority of the Disinterested Directors
so direct, by Independent Counsel in a written opinion addressed to the Board, a copy of which shall be delivered to Indemnitee; and
(ii) if a Change in Control shall have occurred and Indemnitee shall not have requested that the Standard of Conduct Determination be
made pursuant to clause (i) above, by Independent Counsel in a written opinion addressed to the Board, a copy of which shall be delivered
to Indemnitee.

 

(c)
If (i) Indemnitee shall be entitled to indemnification hereunder against any Indemnifiable Losses pursuant to Section 7(a), (ii) no determination
of whether Indemnitee has satisfied any applicable standard of conduct under Nevada law is a legally required condition precedent to
indemnification of Indemnitee hereunder against any Indemnifiable Losses, or (iii) Indemnitee has been determined or deemed pursuant
to Section 7(b) to have satisfied the applicable Standard of Conduct, then the Company shall pay to Indemnitee, within five business
days after the later of (x) the notification date in respect of the Indemnifiable Claim or portion thereof to which such Indemnifiable
Losses are related, out of which such Indemnifiable Losses arose or from which such Indemnifiable Losses resulted, and (y) the earliest
date on which the applicable criterion specified in clause (i), (ii) or (iii) above shall have been satisfied, an amount equal to the
amount of such Indemnifiable Losses. Nothing herein is intended to mean or imply that the Company is intending to use the Nevada Revised
Statutes Chapter 78 to dispense with a requirement that Indemnitee meet the applicable Standard of Conduct where it is otherwise required
by such statute.

 

(d)
If a Standard of Conduct Determination is required to be, but has not been, made by Independent Counsel pursuant to Section 7(b)(i),
the Independent Counsel shall be selected by the Board or a committee of the Board, and the Company shall give written notice to Indemnitee
advising him or her of the identity of the Independent Counsel so selected. If a Standard of Conduct Determination is required to be,
or to have been, made by Independent Counsel pursuant to Section 7(b)(ii), the Independent Counsel shall be selected by Indemnitee, and
Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected. In either case,
Indemnitee or the Company, as applicable, may, within five business days after receiving written notice of selection from the other,
deliver to the other a written objection to such selection; provided, however, that such objection may be asserted only on the
ground that the Independent Counsel so selected does not satisfy the criteria set forth in the definition of “Independent Counsel”
in Section l(h), and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely
objection, the Person so selected shall act as Independent Counsel. If such written objection is properly and timely made and substantiated,
(i) the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court
has determined that such objection is without merit and (ii) the non-objecting party may, at its option, select an alternative Independent
Counsel and give written notice to the other party advising such other party of the identity of the alternative Independent Counsel so
selected, in which case the provisions of the two immediately preceding sentences and clause (i) of this sentence shall apply to such
subsequent selection and notice. If applicable, the provisions of clause (ii) of the immediately preceding sentence shall apply to successive
alternative selections. If no Independent Counsel that is permitted under the foregoing provisions of this Section 7(d) to make the Standard
of Conduct Determination shall have been selected within 30 calendar days after the Company gives its initial notice pursuant to the
first sentence of this Section 7(d) or Indemnitee gives its initial notice pursuant to the second sentence of this Section 7(d), as the
case may be, either the Company or Indemnitee may petition the courts of the State of Nevada for resolution of any objection which shall
have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent
Counsel of a person or firm selected by such court or by such other person as such Court shall designate, and the person or firm with
respect to whom all objections are so resolved or the person or firm so appointed will act as Independent Counsel. In all events, the
Company shall pay all of the actual and reasonable fees and expenses of the Independent Counsel incurred in connection with the Independent
Counsel’s determination pursuant to Section 7(b).

 

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8.
Cooperation. Indemnitee shall cooperate with reasonable requests of the Company in connection with any Indemnifiable Claim and
any individual or firm making such Standard of Conduct Determination, including providing to such Person documentation or information
which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary
to defend the Indemnifiable Claim or make any Standard of Conduct Determination without incurring any unreimbursed cost in connection
therewith. The Company shall indemnify and hold harmless Indemnitee against and, if requested by Indemnitee, shall reimburse Indemnitee
for, or advance to Indemnitee, within five business days of such request accompanied by supporting documentation for specific costs and
expenses to be reimbursed or advanced, any and all costs and expenses (including reasonable attorneys’ and experts’ fees
and expenses) actually and reasonably incurred by Indemnitee in so cooperating with the Person defending the Indemnifiable Claim or making
such Standard of Conduct Determination.

 

9.
Presumption of Entitlement. Notwithstanding any other provision hereof, in making any Standard of Conduct Determination, the Person
making such determination shall presume that Indemnitee has satisfied the applicable Standard of Conduct.

 

10.
No Other Presumption. For purposes of this Agreement, the termination of any Claim by judgment, order, settlement (whether with
or without court approval) or conviction, or upon a plea of nolo contendere or its equivalent, will not create a presumption that Indemnitee
did not meet any applicable Standard of Conduct or that indemnification hereunder is otherwise not permitted.

 

11.
Non-Exclusivity. The rights of Indemnitee hereunder will be in addition to any other rights Indemnitee may have under the Constituent
Documents, or the substantive laws of the State of Nevada, any other contract or otherwise (collectively, “Other Indemnity
Provisions”); provided, however, that (a) to the extent that Indemnitee otherwise would have any greater
right to indemnification under any Other Indemnity Provision, Indemnitee will without further action be deemed to have such greater right
hereunder, and (b) to the extent that any change is made to any Other Indemnity Provision which permits any greater right to indemnification
than that provided under this Agreement as of the date hereof, Indemnitee will be deemed to have such greater right hereunder. The Company
may not, without the consent of Indemnitee, adopt any amendment to any of the Constituent Documents the effect of which would be to deny,
diminish or encumber Indemnitee’ s right to indemnification under this Agreement.

 

12.
Liability Insurance and Funding. For the duration of Indemnitee’s service as a director of the Company and for a reasonable
period of time thereafter, which such period shall be determined by the Company in its sole discretion, the Company shall use commercially
reasonable efforts (taking into account the scope and amount of coverage available relative to the cost thereof) to cause to be maintained
in effect policies of directors’ and officers’ liability insurance providing coverage for directors and/or officers of the
Company, and, if applicable, that is substantially comparable in scope and amount to that provided by the Company’s current policies
of directors’ and officers’ liability insurance. Upon reasonable request, the Company shall provide Indemnitee or his or
her counsel with a copy of all directors’ and officers’ liability insurance applications, binders, policies, declarations,
endorsements and other related materials. In all policies of directors’ and officers’ liability insurance obtained by the
Company, Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same rights and benefits, subject to the
same limitations, as are accorded to the Company’s directors and officers most favorably insured by such policy. Notwithstanding
the foregoing, (i) the Company may, but shall not be required to, create a trust fund, grant a security interest or use other means,
including, without limitation, a letter of credit, to ensure the payment of such amounts as may be necessary to satisfy its obligations
to indemnify and advance expenses pursuant to this Agreement and (ii) in renewing or seeking to renew any insurance hereunder, the Company
will not be required to expend more than 2.0 times the premium amount of the immediately preceding policy period (equitably adjusted
if necessary to reflect differences in policy periods).

 

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13.
Subrogation. In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all
of the related rights of recovery of Indemnitee against other Persons (other than Indemnitee’s successors), including any entity
or enterprise referred to in clause (i) of the definition of “Indemnifiable Claim” in Section l(f). Indemnitee shall execute
all papers reasonably required to evidence such rights (all of Indemnitee’s reasonable Expenses, including reasonable attorneys’
fees and charges, related thereto to be reimbursed by or, at the option of Indemnitee, advanced by the Company).

 

14.
No Duplication of Payments.

 

(a)
The Company shall not be liable under this Agreement to make any payment to Indemnitee in respect of any Indemnifiable Losses to the
extent Indemnitee has otherwise already actually received payment (net of Expenses incurred in connection therewith) under any insurance
policy, the Constituent Documents and Other Indemnity Provisions or otherwise (including from any entity or enterprise referred to in
clause (i) of the definition of “Indemnifiable Claim” in Section l(f)) in respect of such Indemnifiable Losses otherwise
indemnifiable hereunder.

 

(b)
Notwithstanding anything to the contrary contained in Section 14(a) above, the Company hereby acknowledges that Indemnitee may have certain
rights to indemnification, advancement of expenses and/or insurance provided by one or more venture capital funds, the general partners,
managing members or other control persons and/or any affiliated management companies of such venture capital funds, and certain of its
or their affiliates (collectively, the “Fund Indemnitors”). The Company hereby agrees that in connection with
any Indemnifiable Claim, (i) it is the indemnitor of first resort (i.e., its obligations to Indemnitee are primary and any obligation
of the Fund Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by Indemnitee
are secondary), (ii) it shall be required to advance the full amount of expenses incurred by Indemnitee and shall be liable for the full
amount of all Expenses, judgments, penalties, fines and amounts paid in settlement to the extent legally permitted and as required by
the terms of this Agreement and the Company’s Constituent Documents (or any other agreement between the Company and Indemnitee),
without regard to any rights Indemnitee may have against the Fund Indemnitors, and, (iii) it irrevocably waives, relinquishes and releases
the Fund Indemnitors from any and all claims against the Fund Indemnitors for contribution, subrogation or any other recovery of any
kind in respect thereof. The Company further agrees that no advancement or payment by the Fund Indemnitors on behalf of Indemnitee with
respect to any claim for which Indemnitee has sought indemnification from the Company shall affect the foregoing and the Fund Indemnitors
shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery
of Indemnitee against the Company. The Company and Indemnitee agree that the Fund Indemnitors are express third party beneficiaries of
the terms of this Section l 4(b).

 

15.
Defense of Claims. Subject to the provisions of applicable policies of directors’ and officers’ liability insurance,
if any, the Company shall be entitled to participate in the defense of any Indemnifiable Claim or to assume or lead the defense thereof
with counsel reasonably satisfactory to the Indemnitee; provided that if Indemnitee determines, after consultation with counsel
selected by Indemnitee, that (a) the use of counsel chosen by the Company to represent Indemnitee would present such counsel with an
actual or potential conflict, (b) the named parties in any such Indemnifiable Claim (including any impleaded parties) include both the
Company and Indemnitee and Indemnitee shall conclude that there may be one or more legal defenses available to him or her that are different
from or in addition to those available to the Company, (c) any such representation by such counsel would be precluded under the applicable
standards of professional conduct then prevailing, or (d) Indemnitee has interests in the claim or underlying subject matter that are
different from or in addition to those of other Persons against whom the Claim has been made or might reasonably be expected to be made,
then Indemnitee shall be entitled to retain separate counsel (but not more than one law firm plus, if applicable, local counsel in respect
of any particular Indemnifiable Claim for all indemnitees in Indemnitee’s circumstances) at the Company’s expense. The Company
shall not be liable to Indemnitee under this Agreement for any amounts paid in settlement of any threatened or pending Indemnifiable
Claim effected without the Company’s prior written consent. The Company shall not, without the prior written consent of the Indemnitee,
effect any settlement of any threatened or pending Indemnifiable Claim which the Indemnitee is or could have been a party unless such
settlement solely involves the payment of money and includes a complete and unconditional release of the Indemnitee from all liability
on any claims that are the subject matter of such Indemnifiable Claim. Neither the Company nor Indemnitee shall unreasonably withhold
its consent to any proposed settlement; provided that Indemnitee may withhold consent to any settlement that does not provide
a complete and unconditional release of Indemnitee.

 

    	7

     

    

 

16.
Mutual Acknowledgment. Both the Company and the Indemnitee acknowledge that in certain instances, Federal law or applicable public
policy may prohibit the Company from indemnifying its directors and officers under this Agreement or otherwise. Indemnitee understands
and acknowledges that the Company may be required in the future to undertake to the Securities and Exchange Commission to submit the
question of indemnification to a court in certain circumstances for a determination of the Company’s right under public policy
to indemnify Indemnitee and, in that event, the Indemnitee’s rights and the Company’s obligations hereunder shall be subject
to that determination.

 

17.
Successors and Binding Agreement.

 

(a)
This Agreement shall be binding upon and inure to the benefit of the Company and any successor to the Company, including, without limitation,
any Person acquiring directly or indirectly all or substantially all of the business or assets of the Company whether by purchase, merger,
consolidation, reorganization or otherwise (and such successor will thereafter be deemed the “Company” for purposes of this
Agreement), but shall not otherwise be assignable or delegable by the Company.

 

(b)
This Agreement shall inure to the benefit of and be enforceable by the Indemnitee’s personal or legal representatives, executors,
administrators, heirs, distributees, legatees and other successors.

 

(c)
This Agreement is personal in nature and neither of the parties hereto shall, without the consent of the other, assign or delegate this
Agreement or any rights or obligations hereunder except as expressly provided in Sections 17(a) and 17(b). Without limiting the generality
or effect of the foregoing, Indemnitee’s right to receive payments hereunder shall not be assignable, whether by pledge, creation
of a security interest or otherwise, other than by a transfer by the Indemnitee’s will or by the laws of descent and distribution,
and, in the event of any attempted assignment or transfer contrary to this Section 17(c), the Company shall have no liability to pay
any amount so attempted to be assigned or transferred.

 

18.
Notices. For all purposes of this Agreement, all communications, including without limitation notices, consents, requests or approvals,
required or permitted to be given hereunder must be in writing and shall be deemed to have been duly given when hand delivered or dispatched
by electronic facsimile transmission (with receipt thereof orally confirmed), or one business day after having been sent for next-day
delivery by a nationally recognized overnight courier service, addressed to the Company (to the attention of the Secretary of the Company)
and to Indemnitee at the applicable address as any party hereto may have furnished to the other in writing and in accordance herewith,
except that notices of changes of address will be effective only upon receipt.

 

19.
Governing Law. The validity, interpretation, construction and performance of this Agreement shall be governed by and construed
in accordance with the substantive laws of the State of Nevada, without giving effect to the principles of conflict of laws of such State.
The Company and Indemnitee each hereby irrevocably consent to the jurisdiction of the courts of the State of Nevada for all purposes
in connection with any action or proceeding which arises out of or relates to this Agreement, waive all procedural objections to suit
in that jurisdiction, including, without limitation, objections as to venue or inconvenience, agree that service in any such action may
be made by notice given in accordance with Section 18 and also agree that any action instituted under this Agreement shall be brought
only in the courts of the State of Nevada.

 

20.
Validity. If any provision of this Agreement or the application of any provision hereof to any Person or circumstance is held
invalid, unenforceable or otherwise illegal, the remainder of this Agreement and the application of such provision to any other Person
or circumstance shall not be affected, and the provision so held to be invalid, unenforceable or otherwise illegal shall be reformed
to the extent, and only to the extent, necessary to make it enforceable, valid or legal. In the event that any court or other adjudicative
body shall decline to reform any provision of this Agreement held to be invalid, unenforceable or otherwise illegal as contemplated by
the immediately preceding sentence, the parties hereto shall take all such action as may be necessary or appropriate to replace the provision
so held to be invalid, unenforceable or otherwise illegal with one or more alternative provisions that effectuate the purpose and intent
of the original provisions of this Agreement as fully as possible without being invalid, unenforceable or otherwise illegal.

 

    	8

     

    

 

21.
Miscellaneous. No provision of this Agreement may be waived, modified or discharged unless such waiver, modification or discharge
is agreed to in writing signed by Indemnitee and the Company. No waiver by either party hereto at any time of any breach by the other
party hereto or compliance with any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver
of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral
or otherwise, expressed or implied with respect to the subject matter hereof have been made by either party hereto that is not set forth
expressly in this Agreement.

 

22.
Certain Interpretive Matters. Unless the context of this Agreement otherwise requires, (1) “it” or “its”
or words of any gender include each other gender, (2) words using the singular or plural number also include the plural or singular number,
respectively, (3) the terms “hereof,” “herein,” “hereby” and derivative or similar words refer to
this entire Agreement, (4) the terms “Article,” “Section,” “Annex” or “Exhibit” refer
to the specified Article, Section, Annex or Exhibit of or to this Agreement, (5) the terms “include,” “includes”
and “including” will be deemed to be followed by the words “without limitation” (whether or not so expressed),
and (6) the word “or” is disjunctive but not exclusive. Whenever this Agreement refers to a number of days, such number will
refer to calendar days unless business days are specified and whenever action must be taken (including the giving of notice or the delivery
of documents) under this Agreement during a certain period of time or by a particular date that ends or occurs on a non-business day,
then such period or date will be extended until the immediately following business day. As used herein, “business day”
means any day other than Saturday, Sunday or a United States federal holiday.

 

23.
Entire Agreement. This Agreement constitutes the entire agreement and supersedes all prior agreements and understandings, both
written and oral, between the parties hereto with respect to the subject matter of this Agreement. Any prior agreements or understandings
between the parties hereto with respect to indemnification are hereby terminated and of no further force or effect. This Agreement is
not the exclusive means of securing indemnification rights of Indemnitee and is in addition to any rights Indemnitee may have under any
Constituent Documents.

 

24.
Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original but all
of which together shall constitute one and the same agreement.

 

25.
Duration of Agreement. This Agreement shall continue until and terminate upon the later of: (a) six years after the date that
the Indemnitee shall have ceased to serve as a director, officer, employee, agent or fiduciary of the Company or of any other corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise which the Indemnitee served at the request of the Company;
(b) the expiration of the applicable statutes of limitations pertaining to any and all potential proceedings covered by the indemnification
provided for herein; or (c) the final termination of all pending proceedings in respect of which the Indemnitee is granted rights of
indemnification or advancement of Expenses hereunder and of any proceeding commenced by the Indemnitee pursuant to this Agreement relating
thereto.

 

[REMAINDER
OF PAGE INTENTIONALLY BLANK]

 

    	9

     

    

 

IN
WITNESS WHEREOF, Indemnitee has executed and the Company has caused its duly authorized representative to execute this Agreement as of
the date first above written.

 

	 	SURGEPAYS,
    INC.
	 	 	 
	 	By:	 
	 	 	Kevin
    Brian Cox
	 	 	Chief
    Executive Officer

 

	 	INDEMNITEE:
	 	 
	 	 
	 	[  ] an individual

 

    	10EX-10.1

 Exhibit 10.1 

SEPARATION AGREEMENT AND RELEASE 

This Separation Agreement and Release (“Agreement”) is made by and between James P. Lynch (“Employee”) and San Jose Water
Company (the “Company”) (collectively referred to as the “Parties” or individually referred to as a “Party”). 

RECITALS 
 WHEREAS,
Employee was employed by the Company; 
 WHEREAS, Employee separated from employment with the Company effective November 3, 2022 (the
“Separation Date”); and 
 WHEREAS, the Parties wish to resolve any and all disputes, claims, complaints, grievances, charges,
actions, petitions, and demands that the Parties may have against each other and any of the Releasees as defined below, including, but not limited to, any and all claims arising out of or in any way related to Employee’s employment with or
separation from the Company. 
 NOW, THEREFORE, in consideration of the mutual promises made herein, the Company and Employee hereby agree
as follows: 
 COVENANTS 

1. Consideration. As consideration for this Agreement, as long as Employee does not revoke the Agreement, the Company agrees to pay or
provide the following to Employee: 
  

	 	a.	 A lump sum payment of Five Hundred Eleven Thousand Nine Hundred and Ten dollars and Zero cents ($511,910.00).
This payment is in full satisfaction of the severance payment due under Employee’s offer letter dated September 22, 2010. 

  

	 	b.	 A lump sum payment of Eighteen Thousand Seven Hundred and Twenty-Five dollars and Zero cents ($18,725.00),
which is equivalent to the cost of COBRA coverage through July 2023 at the same level of coverage and under the same plan that Employee was enrolled in at the Separation Date. 

 

	 	c.	 Transfer of title to the Company vehicle that Employee was allocated before the Separation Date, at no cost,
except that all taxes and other fees related to the transfer and all expenses related to future service and upkeep of the vehicle will be borne by Employee. 

The cash payments under Paragraphs 1a and 1b and the value of the Company vehicle under Section 1c (using for this purpose the Kelley
Blue Book value of the vehicle) will be reported on an IRS Form W-2 and will be subject to withholding of all applicable taxes and withholdings which will be deducted from the respective payments provided that
the taxes and withholdings with respect to the Company vehicle will be deducted from the cash severance payment under Paragraph 1a. The cash payments (net of all withholdings) will be made on December 28, 2022 and title and vehicle will be
transferred to Employee as soon as practicable following the Effective Date, as defined herein. 

 2. Benefits. Employee’s health insurance benefits as an active employee ceased
on the last day of November 2022, subject to Employee’s right to continue Employee’s health insurance under COBRA. Employee’s participation as an active employee in all benefits and incidents of employment, including but not limited
to accrual of bonuses, vacation and paid time off ceased as of the Separation Date. Employee’s payroll deductions to the SJW Employee Stock Purchase Plan (the “ESPP”) also ceased as of the Separation Date and any payroll deductions
contributed to the ESPP that had not yet been used to purchase shares were refunded in accordance with the terms of the ESPP. 
 3.
Equity Awards. Employee was previously granted time-based and performance-based restricted stock unit awards under the SJW Group Long Term Incentive Plan. The awards that remained outstanding as of the Separation Date are set forth on
attached Schedule I. Employee ceased vesting in each outstanding Time-Based Restricted Stock Unit Award (designated on Schedule I) upon the Separation Date in accordance with the agreement evidencing the award and the restricted stock units that
were unvested under each such award were forfeited on the Separation Date. Employee shall vest in each Performance-Based Restricted Stock Unit Award (designated on Schedule I) pro-rata based on the number of
days of service during the performance period (as set forth on Schedule I) and the actual level of attainment of the applicable performance criteria. The vesting, settlement and other terms of the performance-Based Restricted Stock Unit Awards shall
be governed by the respective agreements evidencing the Awards. 
 4. Payment of Salary and Receipt of All Benefits. Employee
acknowledges and represents that, other than (a) payment of vested amounts payable under the Company’s qualified retirement plans, the Company’s Cash Balance Executive Supplemental Retirement Plan and the Special Deferral Election
Plan, which amounts will be paid in accordance with the terms of those plans, (b) the consideration set forth in this Agreement and (c) the vesting of the Performance-Based Equity Awards as set forth in Paragraph 3, the Company has paid or
provided all salary, wages, bonuses, accrued vacation/paid time off, leave, severance, fees, reimbursable expenses, commissions, stock, vesting, and any and all other benefits and compensation due to Employee. Employee further acknowledges and
represents that Employee has received any leave to which Employee was entitled or which Employee requested, if any, under applicable federal, state or local leave law, and that Employee did not sustain any workplace injury, during Employee’s
employment with the Company. 
 5. Employee’s Release of Claims. Employee agrees that this shall be deemed a negotiated
agreement and that the foregoing consideration represents settlement in full of all outstanding obligations owed to Employee by the Company, SJW Group and all of its subsidiaries, including San Jose Water Company, The Connecticut Water Company,
Connecticut Water Service, Inc., The Maine Water Company, and all of their respective current and former officers, directors, employees, agents, investors, attorneys, shareholders, administrators, affiliates, benefit plans, plan administrators,
insurers, divisions, and subsidiaries, and predecessor and successor corporations and assigns (collectively, the “Releasees”). Employee, on Employee’s own behalf and on behalf of Employee’s respective heirs, family members,
executors, agents, and assigns, hereby and forever releases the Releasees from, and agrees not to sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge, duty, obligation, or cause of action relating to any
matters of any kind, whether presently known or unknown, suspected or unsuspected, that Employee may possess against any of the Releasees arising from any omissions, acts, facts, or damages that have occurred up until and including the Effective
Date of this Agreement, including, without limitation: 
 a. any and all claims relating to or arising from Employee’s employment
relationship with the Company and the termination of that relationship; 

  
 Page 2 of 9 

 b. any and all claims relating to, or arising from, Employee’s right to purchase, right
to receive, and actual purchase of shares of stock of the Company, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law, and securities fraud under any
state or federal law; 
 c. any and all claims for wrongful discharge of employment; termination in violation of public policy;
discrimination; harassment; retaliation; breach of contract, both express and implied; breach of covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress;
fraud; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander; negligence; personal injury; assault; battery; invasion
of privacy; false imprisonment; conversion; and disability benefits; 
 d. any and all claims for violation of any federal, state, or
municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Equal Pay Act; the Fair Labor Standards Act,
except as prohibited by law; the Fair Credit Reporting Act; the Age Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act; the Employee Retirement Income Security Act of 1974; the Worker Adjustment and Retraining
Notification Act; the Family and Medical Leave Act, except as prohibited by law; the Sarbanes-Oxley Act of 2002; the Occupational Safety and Health Act; the Uniformed Services Employment and Reemployment Rights Act; any and all claims under
California statutory or common law, including but not limited to claims brought under the California Fair Employment and Housing Act, the Unruh Civil Rights Act, California Business and Professions Code; the California Equal Pay Law, the California
Whistleblower Protection Act, the California Family Rights Act, the California Pregnancy Disability Leave Law, California Paid Sick Days, the California WARN law, the California Constitution and any federal, state, local, and/or municipal statute,
law, amendment, directive, order, and/or regulation enacted in response to the COVID-19 pandemic. This release shall also include any claims related to any action or inaction associated directly or indirectly
with the COVID-19 pandemic to the maximum extent permitted by law; 
 e. any and all claims arising
out of any other laws and regulations relating to employment or employment discrimination; 
 f. any claim for any loss, cost, damage, or
expense arising out of any dispute over the non-withholding or other tax treatment of any of the proceeds received by Employee as a result of this Agreement; and 

g. any and all claims for attorneys’ fees and costs, other than those listed in this Agreement. 

Employee agrees that the release set forth in this section shall be and remain in effect in all respects as a complete general release as to the matters
released. Although this is a general release, it does not apply to: (i) any unemployment insurance claim; (ii) any workers’ compensation insurance benefits to the extent any applicable state law prohibits the direct release of
such benefits without judicial or agency approval, with the understanding that such benefits, if any, would only be payable in accordance with the terms of any workers’ compensation coverage or fund of the Company; (iii) continued
participation in certain benefits under COBRA (and any state law counterpart), if applicable; (iv) any benefit entitlements vested as of Employee’s last day of employment, pursuant 

  
 Page 3 of 9 

 to written terms of any applicable employee benefit plan sponsored by the Company; (v) any claims that
cannot be waived as a matter of law; or (vi) claims that arise after Employee signs this Agreement. Employee represents that Employee has made no assignment or transfer of any right, claim, complaint, charge, duty, obligation, demand, cause of
action, or other matter waived or released by this Section. 
 6. Acknowledgment of Waiver of Claims under ADEA. Employee understands
and acknowledges that Employee is waiving and releasing any rights Employee may have under the Age Discrimination in Employment Act of 1967 (“ADEA”), and that this waiver and release is knowing and voluntary. Employee understands and
agrees that this waiver and release does not apply to any rights or claims that may arise under the ADEA after the Effective Date of this Agreement. Employee understands and acknowledges that the consideration given for this waiver and release is in
addition to anything of value to which Employee was already entitled. Employee further understands and acknowledges that Employee has been advised by this writing that: (a) Employee should consult with an attorney prior to executing this
Agreement; (b) Employee has twenty-one (21) days within which to consider this Agreement and that the 21-day review period will not be affected or extended by
any revisions (whether material or immaterial) that might be made to this Agreement; (c) Employee has seven (7) days following Employee’s execution of this Agreement to revoke this Agreement; and (d) this Agreement shall not be
effective until after the revocation period has expired. In the event Employee signs this Agreement and returns it to the Company in less than the 21-day period identified above, Employee hereby acknowledges
that Employee has freely and voluntarily chosen to waive the time period allotted for considering this Agreement. 
 7. Waiver of Unknown
Claims. Employee understands and agrees that the claims released in Paragraph 4 above include not only claims presently known to Employee, but also include all unknown or unanticipated claims, complaints, rights, suits and actions of every kind
and character that would otherwise come within the scope of the released claims as described in Paragraph 4. Employee understands that Employee may hereafter discover facts different from what Employee now believes to be true, which if known, could
have materially affected this Agreement, but Employee nevertheless waives any claims or rights based on different or additional facts. Employee knowingly and voluntarily waives any and all rights or benefits that Employee may now have, or in the
future may have against the Company. 
 By signing below, Employee expressly waive any benefits of Section 1542 of the Civil Code of the State of
California (or analogous statute(s) from any other state) which provides as follows: 
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED
PARTY.” 
 8. No Pending or Future Lawsuits. The Parties represent that they have no lawsuits, claims, or actions pending in
their names, or on behalf of any other person or entity, against the other Party or their respective Releasees. The Parties also represent that they do not intend to bring any claims on their behalf or on behalf of any other person or entity against
the other Party or any of their respective Releasees. Notwithstanding, nothing herein prevents any actions or disclosures expressly acknowledges that Employee is not aware of any claims that Employee believes to be potential violations of the Fair
Labor Standards Act, the Occupational Safety and Health Act, and the Sarbanes- Oxley Act. 

  
 Page 4 of 9 

 9. DTSA Notice. Federal law provides certain protections to individuals who disclose
a trade secret to their attorney, a court, or a government official in certain, confidential circumstances. Specifically, federal law provides that an individual shall not be held criminally or civilly liable under any federal or state trade secret
law for the disclosure of a trade secret under either of the following conditions: (a) Where the disclosure is made (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and
(ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) Where the disclosure is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. See
18 U.S.C. § 1833(b)(1)). Federal law also provides that an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the
trade secret information in the court proceeding, if the individual (x) files any document containing the trade secret under seal; and (y) does not disclose the trade secret, except pursuant to court order. See 18 U.S.C. §
1833(b)(2). Nothing in this Agreement is intended in any way to limit such statutory rights. 
 10. Permitted Disclosures and
Actions. This Agreement does not prohibit or restrict Employee, the Company, or the other Releasees from: (i) disclosing information regarding unlawful acts in the workplace, including, but not limited to, sexual harassment;
(ii) initiating communications directly with, cooperating with, providing relevant information, or otherwise assisting in an investigation by (A) the SEC, or any other governmental, regulatory, or legislative body regarding a possible
violation of any federal law; or (B) the EEOC or any other governmental authority with responsibility for the administration of fair employment practices laws regarding a possible violation of such laws, or as compelled or requested by lawful
process; (iii) responding to any inquiry from any such governmental, regulatory, or legislative body or official or governmental authority, including an inquiry about the existence of this Agreement or its underlying facts or circumstances;
(iv) participating, cooperating, testifying, or otherwise assisting in any governmental action, investigation, or proceeding relating to a possible violation of any such law, rule or regulation; or (v) as required by law. Employee is,
however, waiving any right to recover money in connection with any agency charge or agency or judicial decision, including class or collective action rulings, other than bounty money properly awarded by the SEC. 

11. Non-Disparagement. Except to the extent allowed under this Agreement, Employee agrees to
refrain from any disparagement, defamation, libel, or slander of any of the Releasees, and agrees to refrain from any tortious interference with the contracts and relationships of any of the Releasees. Employee shall direct any inquiries by
potential future employers to the Company’s human resources department, which shall always convey all of the following two things and only the following two things: (1) Employee’s dates of employment; and (2) his last title.
Nothing in this Agreement shall deny Employee the right to discuss or disclose information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that Employee has reason to believe is unlawful 

  
 Page 5 of 9 

 12. Breach. The Parties acknowledge and agree that any material breach of this
Agreement shall entitle the other Party immediately to recover and/or cease providing the consideration provided to the other Party and/or his/its respective Releasees under this Agreement. The breaching Party shall also be responsible to the other
Party for all costs, attorneys’ fees, and any and all damages incurred by the other Party in (a) enforcing the breaching Party’s obligations under this Agreement, including the bringing of any action to recover the consideration, and
(b) defending against a claim or suit brought or pursued by any Party in violation of the terms of this Agreement. 
 13. No
Admission of Liability. Employee understands and acknowledges that this Agreement constitutes a compromise and settlement of any and all actual or potential disputed claims by Employee. No action taken by the Company hereto, either previously or
in connection with this Agreement, shall be deemed or construed to be (a) an admission of the truth or falsity of any actual or potential claims or (b) an acknowledgment or admission by the Company of any fault or liability whatsoever to
Employee or to any third party. 
 14. Costs. The Parties shall each bear their own costs, attorneys’ fees, and other fees
incurred in connection with the preparation of this Agreement. 
 15. ARBITRATION. THE PARTIES AGREE THAT ANY AND ALL DISPUTES
ARISING OUT OF THE TERMS OF THIS AGREEMENT, THEIR INTERPRETATION, AND ANY OF THE MATTERS HEREIN RELEASED, SHALL BE SUBJECT TO ARBITRATION IN SANTA CLARA COUNTY, CALIFORNIA, BEFORE JUDICIAL ARBITRATION & MEDIATION SERVICES, INC.
(“JAMS”), PURSUANT TO ITS EMPLOYMENT ARBITRATION RULES & PROCEDURES (“JAMS RULES”). THE ARBITRATOR MAY GRANT INJUNCTIONS AND OTHER RELIEF IN SUCH DISPUTES. THE ARBITRATOR SHALL ADMINISTER AND CONDUCT ANY ARBITRATION IN
ACCORDANCE WITH APPLICABLE CALIFORNIA LAW, AND THE ARBITRATOR SHALL APPLY SUBSTANTIVE AND PROCEDURAL CALIFORNIA LAW TO ANY DISPUTE OR CLAIM, WITHOUT REFERENCE TO ANY
CONFLICT-OF-LAW PROVISIONS OF ANY JURISDICTION. TO THE EXTENT THAT THE JAMS RULES CONFLICT WITH CALIFORNIA LAW, CALIFORNIA LAW SHALL TAKE PRECEDENCE. THE DECISION OF THE
ARBITRATOR SHALL BE FINAL, CONCLUSIVE, AND BINDING ON THE PARTIES TO THE ARBITRATION. THE PARTIES AGREE THAT THE PREVAILING PARTY IN ANY ARBITRATION SHALL BE ENTITLED TO INJUNCTIVE RELIEF IN ANY COURT OF COMPETENT JURISDICTION TO ENFORCE THE
ARBITRATION AWARD. EMPLOYEE WILL PAY ONLY $350 IN ARBITRATION COSTS AND EXPENSES, REGARDLESS OF WHICH PARTY DEMANDS ARBITRATION. EACH PARTY SHALL SEPARATELY PAY FOR ITS RESPECTIVE COUNSEL FEES AND EXPENSES; PROVIDED, HOWEVER, THAT THE ARBITRATOR
SHALL AWARD ATTORNEYS’ FEES AND COSTS TO THE PREVAILING PARTY, EXCEPT AS PROHIBITED BY LAW. THE PARTIES HEREBY AGREE TO WAIVE THEIR RIGHT TO HAVE ANY DISPUTE BETWEEN THEM RESOLVED IN A COURT OF LAW BY A JUDGE OR JURY. NOTWITHSTANDING THE
FOREGOING, THIS SECTION WILL NOT PREVENT EITHER PARTY FROM SEEKING INJUNCTIVE RELIEF (OR ANY OTHER PROVISIONAL REMEDY) FROM ANY COURT IN SANTA CLARA COUNTY, CALIFORNIA RELATING TO THIS AGREEMENT AND THE AGREEMENTS INCORPORATED HEREIN BY REFERENCE.
SHOULD ANY PART OF THE ARBITRATION AGREEMENT CONTAINED IN THIS PARAGRAPH CONFLICT WITH ANY OTHER ARBITRATION AGREEMENT BETWEEN THE PARTIES, THE PARTIES AGREE THAT THIS ARBITRATION AGREEMENT SHALL GOVERN. 

  
 Page 6 of 9 

 16. Tax Consequences and Withholding. The Company makes no representations or
warranties with respect to the tax consequences of the payments and any other consideration provided to Employee or made on Employee’s behalf under the terms of this Agreement. Employee agrees and understands that Employee is responsible for
payment, if any, of applicable federal, state and/or local taxes on the payments and any other consideration provided hereunder by the Company and any penalties or assessments thereon arising from his illegal act or omission. Employee further agrees
to indemnify and hold the Company harmless from any claims, demands, deficiencies, penalties, interest, assessments, executions, judgments, or recoveries by any government agency against the Company for any amounts claimed due on account of
(a) Employee’s failure to pay or Employee’s delayed payment of, federal, state and/or local taxes, or (b) damages sustained by the Company by reason of any such claims, including attorneys’ fees and costs. All payments and
benefits made, or provided, by the Company to Employee (or the Employee’s dependents, beneficiaries or estate) pursuant to this Agreement will be subject to the withholding of such amounts relating to tax and/or other payroll deductions as may
be required by law or written agreement. 
 17. Section 409A. The payments and benefits set forth in this Agreement are intended to
comply with the “short-term deferral” exception to the requirements of section 409A of the Internal Revenue Code of 1986, as amended, and the regulations thereunder (“Section 409A”). If it is determined that
Section 409A applies to any payment or benefit under this Agreement, such payment or benefit shall be administered in accordance with Section 409A, including that (a) in no event may Employee, directly or indirectly, designate the
calendar year of a payment and if a payment that is subject to execution of this Agreement could be made in more than one taxable year, payment will be made in the later taxable year, (b) such amounts will only be paid in a manner and upon an
event permitted by Section 409A (including the six month delay for payments made to “specified employees” (as defined in accordance with Section 409A) upon termination of employment, if applicable), (c) any amount that is payable
upon termination of employment may only be made upon a “separation from service” under Section 409A, and (d) the right to a series of installment payments shall be treated as a right to a series of separate payments and each
payment shall be treated as a separate payment. Employee will be solely responsible for any tax imposed under Section 409A and in no event will the Company have any liability with respect to any tax, interest or other penalty imposed under
Section 409A. 
 All reimbursements and in-kind benefits provided under this Agreement shall be
made or provided in accordance with the requirements of Section 409A, including, where applicable, the requirement that (a) any reimbursement be for expenses incurred during the period specified in this Agreement, (b) the amount of
expenses eligible for reimbursement, or in-kind benefits provided, during a fiscal year not affect the expenses eligible for reimbursement, or in-kind benefits to be
provided, in any other fiscal year, (c) the reimbursement of an eligible expense be made no later than the last day of the fiscal year following the year in which the expense is incurred, and (d) the right to reimbursement or in-kind benefits not be subject to liquidation or exchange for another benefit. 
 18. Authority.
The Company represents and warrants that the undersigned has the authority to act on behalf of the Company and to bind the Company and all who may claim through it to the terms and conditions of this Agreement. Employee represents and warrants that
Employee has the capacity to act on Employee’s own behalf and on behalf of all who might claim through Employee to bind them to the terms and conditions of this Agreement. Each Party warrants and represents that there are no liens or claims of
lien or assignments in law or equity or otherwise of or against any of the claims or causes of action released herein. 
 19. No
Representations. Employee represents that Employee has had an opportunity to consult with an attorney, and has carefully read and understands the scope and effect of the provisions of this Agreement. Employee has not relied upon any
representations or statements made by the Company that are not specifically set forth in this Agreement. 

  
 Page 7 of 9 

 20. Severability. In the event that any provision or any portion of any provision
hereof or any surviving agreement made a part hereof becomes or is declared by a court of competent jurisdiction or arbitrator to be illegal, unenforceable, or void, this Agreement shall continue in full force and effect without said provision or
portion of provision. 
 21. Attorneys’ Fees. In the event that either Party brings an action to enforce or effect its rights
under this Agreement, the prevailing Party shall be entitled to recover its costs and expenses, including the costs of mediation, arbitration, litigation, court fees, and reasonable attorneys’ fees incurred in connection with such an action.

 22. Entire Agreement. This Agreement represents the entire agreement and understanding between the Company and Employee concerning
the subject matter of this Agreement and Employee’s employment with and separation from the Company and the events leading thereto and associated therewith, and supersedes and replaces any and all prior agreements and understandings concerning
the subject matter of this Agreement and Employee’s relationship with the Company, including Employee’s offer letter dated September 22, 2010. 

23. No Oral Modification. This Agreement may only be amended in a writing signed by Employee and the Company’s Chief Executive
Officer. 
 24. Governing Law. This Agreement shall be governed by the laws of the State of California, without regard for choice-of-law provisions. 
 25. Effective Date. Employee
has seven (7) days after he signs this Agreement to revoke it. This Agreement becomes effective on the eighth (8th) day after Employee signs this Agreement, so long as he has not revoked it before that date (the “Effective Date”).

 26. Expiration of Agreement. This Agreement is executable until December 20, 2022 (the “Expiration Date”). This
Agreement is null and void if the Company has not received a copy of the Agreement executed by the Employee on or before the Expiration Date. 

27. Counterparts. This Agreement may be executed in counterparts and by facsimile, and each counterpart and facsimile shall have the
same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned. 
 28.
Voluntary Execution of Agreement. Employee understands and agrees that Employee executed this Agreement voluntarily, without any duress or undue influence on the part or behalf of the Company or any third party, with the full intent of
releasing all of Employee’s claims against the Company and any of the other Releasees. Employee acknowledges that: 
  

	 	(a)	 Employee has read this Agreement; 

 

	 	(b)	 Employee has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel
of Employee’s own choice or has elected not to retain legal counsel; 

  
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	 	(c)	 Employee understands the terms and consequences of this Agreement and of the releases it contains; and

  

	 	(d)	 Employee is fully aware of the legal and binding effect of this Agreement. 

IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below. 

 

					
	Dated: December 20, 2022	 		 	 /s/ James P. Lynch

		 		 	James P. Lynch

  

							
	Dated: December 20, 2022	 	        	 	San Jose Water Company
				
		 		 	By:	 	 /s/ Stephanie Orosco

		 		 		 	Stephanie Orosco
		 		 		 	Chief Human Resources Officer

  
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