Document:

Exhibit 10.1

 

SHIFT TECHNOLOGIES, INC.

 

AMENDED AND RESTATED RETENTION BONUS AGREEMENT

 

THIS
AMENDED AND RESTATED RETENTION BONUS AGREEMENT (this “Agreement”), dated June 22, 2022 (the “Restatement
Date”), between Shift Technologies, Inc. (the “Company”) and Sean Foy (the “Employee”),
is made to retain the Employee in recognition of his value to the Company in meeting its financial and strategic business objectives by
providing the Employee with the opportunity to earn a retention bonus. This Agreement is an amendment and restatement of that certain
retention bonus agreement dated January 7, 2022 between the Company and the Employee (the “Original Agreement”),
and replaces and supersedes the Original Agreement in its entirety. For the avoidance of doubt, the term “Company” herein
shall include any successor entity thereto or any affiliate thereof. In consideration of the mutual promises made herein, and the Employee’s
continued employment by the Company in accordance with the terms below, the Employee and the Company agree as follows:

 

1. Retention
Bonus. Subject to the terms and provisions below, the Company shall pay to the Employee a total amount of $2,000,000 in two installments,
with (i) the first installment of $400,000 subject to continued employment with the Company as a full-time employee in good standing from
January 7, 2022 (the “Effective Date”) through November 15, 2022 (the “First Retention Bonus”),
and (ii) the second installment of $1,600,000 subject to the Employee’s continued employment with the Company as a full-time employee
in good standing from the Effective Date through November 19, 2023 (the “Second Retention Bonus”). Each installment
payment amount payable to the Employee in accordance with the preceding sentence is referred to herein as a “Retention Bonus,”
and the period from the Effective Date through November 19, 2023 is referred to herein as the “Retention Period.”

 

2. Additional
Conditions to Receipt. In addition to remaining actively employed by the Company as provided above (or as otherwise provided under
Section 4), the Employee must also comply with the following conditions to receive any Retention Bonuses:

 

a. Release.
Each Retention Bonus payable under this Agreement shall be subject to the Employee (or if applicable, the Employee’s estate) executing,
delivering and not revoking a general release of claims against the Company (and its agents, parents, subsidiaries, successors and assigns)
substantially in the form prescribed by the Company (a “Release”). With respect to the First Retention Bonus, the Employee
agrees to execute a Release as soon as practicable on or after November 15, 2022 (or the Employee’s termination date if the Employee’s
employment is terminated as provided under the first sentence of Section 4), but no later than 30 days following such date. With respect
to the Second Retention Bonus, the Employee agrees to execute a Release as soon as practicable on or after November 19, 2023 (or the Employee’s
termination date if the Employee’s employment is terminated as provided under Section 4), but no later than 30 days following such
date. Each applicable Release will become effective on the eighth (8th) calendar day after the Employee signs and delivers
it, provided the Employee does not timely revoke such Release (the “Release Effective Date”).

 

     

     

    

 

b. Performance
of Duties. The Employee agrees to perform the Employee’s regular duties and/or such other responsibilities as may be required
by the Company in good faith. The Employee must perform the Employee’s duties at a satisfactory level (such performance to be determined
in the discretion of the Board of Directors of the Company and the Chief Executive Officer of the Company) and continue to comply with
all of the Company’s policies, codes of conduct and directives (as may be modified or implemented from time to time).

 

c. Certain
Terminations of Employment. If: (i) the Employee resigns from his position of employment with the Company for any reason (or provides
notice to the Company of his intent to resign from his position of employment with the Company for any reason), (ii) the Employee’s
employment with the Company is terminated due to death or disability (as defined under the Company’s long-term disability plan and/or
policy applicable to the Employee, as may be modified or implemented from time to time), or (iii) the Company terminates the Employee’s
employment for Cause (as defined below) (or provides notice to the Employee of its intent to terminate his employment with the Company
for Cause), in each case, at any time prior to the end of the Retention Period, the Employee’s opportunity to receive any unpaid
Retention Bonus(es) hereunder shall automatically terminate and be forfeited.

 

d. Compliance
with Applicable Laws. The Employee shall at all times comply with laws and regulations applicable to the Employee’s actions
on behalf of the Company.

 

e. Confidentiality
of Company Information. The Employee shall not, at any time during or after employment with the Company, make any unauthorized disclosure
of any confidential business or proprietary information or trade secrets of the Company, or make any use thereof, except as required for
the Employee to carry out the Employee’s job responsibilities with the Company.

 

f. Confidentiality
of Agreement. The Employee hereby agrees that the Employee will keep the terms of this Agreement confidential, and will not, except
as required by law, disclose such terms to any person other than the Employee’s immediate family or legal, tax or financial advisors
(who must also keep the terms of this Agreement confidential). Notwithstanding the foregoing, the Company will not discharge or in any
manner discriminate against employees who inquire about, discuss, or disclose their own pay or compensation with another Company employee
or applicant.

 

3. Payment
of Retention Bonus. Subject to the requirements of Section 2 above, each Retention Bonus (if any) shall be payable as soon as administratively
practicable after the Release Effective Date applicable to such Retention Bonus, but no later than the first regularly scheduled payroll
date following such date; provided, however, that to the extent required by Section 409A of the Internal Revenue Code of 1986, as amended,
and the corresponding regulations and guidance promulgated thereunder (the “Code”), if the period between the date
of the applicable payment triggering event and the deadline for execution of the Release set forth in Section 2 spans two calendar years,
such Retention Bonus shall not be paid until the second calendar year. The Employee agrees that the Company may withhold from each Retention
Bonus payable hereunder, to the extent permitted by law, any amounts that the Employee owes the Company at the time of payment of such
Retention Bonus.

 

    2

     

    

 

4. Consequences
of a Termination of Employment Without Cause. Notwithstanding the continued employment requirement of Section 2 above and subject
to Section 2, in the event that the Employee’s employment with the Company is terminated by the Company without Cause after July
19, 2023 and prior to November 19, 2023, then the Employee will be paid a prorated portion of any unpaid Second Retention Bonus (with
such proration based on whole months worked versus the whole months in the entire Retention Period) in accordance with Sections 2 and
3 above; provided that the Employee had not failed to satisfy any of the conditions set forth in Section 2 immediately prior to such termination.
For the avoidance of doubt, if the Employee’s employment with the Company is terminated by the Company without Cause on or prior
to July 19, 2023, the Employee’s opportunity to receive any unpaid Retention Bonus(es) hereunder shall automatically terminate and
be forfeited. For purposes of this Agreement:

 

		a.	“Cause” shall mean the Employee’s action, or failure to act, during the Employee’s
employment with the Company that is determined to constitute any of the following: (i) performance of any act or failure to perform any
act in bad faith and to the detriment of any Company Entities; (ii) dishonesty, intentional misconduct or material breach of any
agreement with any Company Entity; or (iii) commission of a crime involving dishonesty, breach of trust, or physical or emotional
harm to any person. Prior to any termination for Cause pursuant to each such event listed in (i) or (ii) above, to the extent such event(s)
is capable of being cured by the Employee, the Company shall give the Employee written notice thereof describing in reasonable detail
the circumstances constituting Cause and the Employee shall have the opportunity to remedy the same within thirty (30) days after receiving
written notice.

 

		b.	“Company Entity” shall mean any parent, subsidiary or affiliate of the Company.

 

5. Termination
of Agreement. Upon the Employee’s failure to satisfy any of the payment conditions set forth in this Agreement, this Agreement
and the opportunity to receive any payment due to the Employee hereunder shall automatically terminate and be forfeited, void and of no
further force and effect, in all cases, without any action from the parties hereto.

 

6. No
Right to Continued Employment. This Agreement shall not be regarded as a contract of employment for a set period of time and does
not confer upon the Employee any right with respect to the continuance of employment or other service with the Company or any subsidiary.
Further, this Agreement shall not interfere in any way with any right that the Company or any subsidiary would otherwise have to terminate
the Employee’s employment or other service at any time. The Employee remains an at-will employee for the duration of the Employee’s
employment with the Company, including during the Retention Period, which means that the Company or the Employee may terminate the Employee’s
employment at any time with or without cause and without advance notice. Any economic or other benefit to the Employee under this Agreement
shall not be taken into account in determining any benefits to which the Employee may be entitled under any severance, retirement or other
benefit or compensation plan or policy maintained by the Company unless expressly provided for under such plan or policy. 

 

    3

     

    

 

7. Section
409A of the Internal Revenue Code. Although the Company does not guarantee the tax treatment of any payment under this Agreement,
this Agreement and any payments made hereunder are intended to comply with or be exempt from Section 409A of the Code, and, accordingly,
to the maximum extent permitted, this Agreement shall be interpreted in a manner consistent therewith. Any payment under this Agreement
may only be made upon an event and in a manner permitted by Section 409A of the Code, and such payments are intended to be exempt from
Section 409A of the Code under the “short-term deferral” exception, to the maximum extent applicable. For purposes of Section
409A of the Code, the Employee’s right to receive any installment payments pursuant to this Agreement shall be treated as a right
to receive a series of separate and distinct payments. Prior to November 19, 2023, the Company reserves the right to amend the provisions
of this Agreement at any time and in any manner without the Employee’s consent but with notice to the Employee solely to comply
with the requirements of Section 409A of the Code and to avoid the imposition of additional tax, interest or income inclusion under Section
409A of the Code on any payment to be made hereunder. Notwithstanding the foregoing, in no event shall the Company be liable for any additional
tax, interest, income inclusion or other penalty that may be imposed on the Employee by Section 409A of the Code or for damages for failing
to comply with Section 409A of the Code.

 

8. Withholding.
The Company may deduct and withhold from any amount payable under this Agreement such federal, state, local, foreign, or other taxes as
are required to be withheld pursuant to any applicable tax law or regulation. The Employee hereby acknowledges that the Company has advised
the Employee to consult with the Employee’s legal, tax or financial advisors with respect to any tax or other financial consequences
of any amounts paid to the Employee under this Agreement.

 

9. Entire
Agreement.This Agreement constitutes the entire agreement between the parties with respect to the subject matter contained
herein and supersedes all prior agreements (including, for the avoidance of doubt, the Original Agreement), promises, covenants,
arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative of
any party hereto; provided, that the restrictive covenants contained in this Agreement are in addition to, and not in lieu of, any
existing or future restrictive covenant agreement or similar obligations contained in any other agreements between the Employee and
the Company. None of the parties hereto will be liable to any other party in any manner by any representations and warranties or
covenants relating to such subject matter except as specifically set forth in this Agreement. Except as provided in Section 7, any
modification of this Agreement will be effective only if it is in writing and signed by both parties.

 

10. Assignment.
Without the prior written consent of the Company, this Agreement is not assignable by the Employee other than by will or the laws of descent
and distribution, and any assignment in violation of this Agreement will be void. Notwithstanding the foregoing, this Agreement and the
rights hereunder will inure to the benefit of and be enforceable by the Employee’s personal or legal representatives, executors,
administrators, successors, heirs, distributes, devisees and legatees. The Company may assign or delegate this Agreement or any of its
rights or obligations hereunder to a person or entity that is an affiliate of or successor to the Company.

 

11. Governing
Law. This Agreement shall be governed in all respects by the laws of the State of California without regard to its conflict of laws
rules or principles that might refer to the laws of another jurisdiction.

 

12. Counterparts.
This Agreement may be executed in counterparts, which shall be deemed originals with the same effect as if both parties had signed the
same document. Any counterpart shall be construed together with any other counterpart and both shall constitute one Agreement. For the
purposes of this Agreement, a facsimile or PDF copy of a signature shall be construed to be an original.

 

[Signature Page Follows]

 

    4

     

    

 

AGREED AND ACCEPTED AS OF THE RESTATEMENT DATE:

 

	SEAN FOY	 	SHIFT TECHNOLOGIES, INC.
	 	 	 	 	 	 
	Signature: 	 	 	Signature: 	 	 
	 	 	 	 	 	 
	Date: 	/s/ Sean Foy	 	Name:	/s/ Tracy Notte	 
	 	 	 	Title:	Chief People Officer	 
	 	 	 	 	 	 
	 	 	 	Date:	06/22/2022	 

 

 

5Exhibit 10.2

 

SHIFT TECHNOLOGIES, INC.

 

RETENTION BONUS AGREEMENT

 

THIS
RETENTION BONUS AGREEMENT (this “Agreement”), dated June 22, 2022 (the “Effective Date”),
between Shift Technologies, Inc., (the “Company”), and Oded Shein (the “Employee”), is made
to retain the Employee in recognition of the Employee’s value to the Company in meeting its financial and strategic business objectives
by providing the Employee with the opportunity to earn a retention bonus. For the avoidance of doubt, the term “Company” herein
shall include any successor entity thereto or any affiliate thereof. In consideration of the mutual promises made herein, and the Employee’s
continued employment by the Company in accordance with the terms below, the Employee and the Company agree as follows:

 

1. Retention
Bonus. Subject to the terms and provisions below, the Company shall pay to the Employee a total amount of $400,000 (the “Retention
Bonus”), subject to the Employee’s continued employment with the Company as a full-time employee in good standing from
the Effective Date through November 15, 2022 (the “Retention Period”).

 

2. Additional
Conditions to Receipt. In addition to remaining actively employed by the Company as provided above (or as otherwise provided under
Section 4), the Employee must also comply with the following conditions to receive the Retention Bonus:

 

a. Release.
The Retention Bonus payable under this Agreement shall be subject to the Employee (or if applicable, the Employee’s estate) executing,
delivering and not revoking a general release of claims against the Company (and its agents, parents, subsidiaries, successors and assigns)
substantially in the form prescribed by the Company (the “Release”). The Employee agrees to execute the Release as
soon as practicable on or after November 15, 2022 (or the Employee’s termination date if the Employee’s employment is terminated
as provided under Section 4), but no later than 30 days following such date. The Release will become effective on the eighth (8th) calendar
day after the Employee signs and delivers it, provided the Employee does not timely revoke such Release (the “Release Effective
Date”).

 

b. Performance
of Duties. The Employee agrees to perform the Employee’s regular duties and/or such other responsibilities as may be required
by the Company in good faith. The Employee must perform the Employee’s duties at a satisfactory level (such performance to be determined
in the discretion of the Board of Directors of the Company (the “Board”) and the Chief Executive Officer of the Company)
and continue to comply with all of the Company’s policies, codes of conduct and directives (as may be modified or implemented from
time to time).

 

c. Certain
Terminations of Employment. If: (i) the Employee resigns from the Employee’s position of employment with the Company for any
reason (or provides notice to the Company of the Employee’s intent to resign from the Employee’s position of employment with
the Company for any reason), (ii) the Employee’s employment with the Company is terminated due to death or disability (as defined
under the Company’s long-term disability plan and/or policy applicable to the Employee, as may be modified or implemented from time
to time), or (iii) the Company terminates the Employee’s employment for Cause (as defined below) (or provides notice to the Employee
of its intent to terminate the Employee’s employment with the Company for Cause), in each case, at any time prior to the end of
the Retention Period, the Employee’s opportunity to receive the Retention Bonus hereunder shall automatically terminate and be forfeited.

 

    1

     

    

 

d. Compliance
with Applicable Laws. The Employee shall at all times comply with laws and regulations applicable to the Employee’s actions
on behalf of the Company.

 

e. Confidentiality
of Company Information. The Employee shall not, at any time during or after employment with the Company, make any unauthorized disclosure
of any confidential business or proprietary information or trade secrets of the Company, or make any use thereof, except as required for
the Employee to carry out the Employee’s job responsibilities with the Company.

 

f. Confidentiality
of Agreement. The Employee hereby agrees that the Employee will keep the terms of this Agreement confidential, and will not, except
as required by law, disclose such terms to any person other than the Employee’s immediate family or legal, tax or financial advisors
(who must also keep the terms of this Agreement confidential). Notwithstanding the foregoing, the Company will not discharge or in any
manner discriminate against employees who inquire about, discuss, or disclose their own pay or compensation with another Company employee
or applicant.

 

3. Payment
of Retention Bonus. Subject to the requirements of Section 2 above, the Retention Bonus shall be payable as soon as administratively
practicable after the Release Effective Date, but no later than the first regularly scheduled payroll date following such date; provided,
however, that to the extent required by Section 409A of the Internal Revenue Code of 1986, as amended, and the corresponding regulations
and guidance promulgated thereunder (the “Code”), if the period between the date of the applicable payment triggering
event and the deadline for execution of the Release set forth in Section 2 spans two calendar years, the Retention Bonus shall not be
paid until the second calendar year. The Employee agrees that the Company may withhold from the Retention Bonus, to the extent permitted
by law, any amounts that the Employee owes the Company at the time of payment of such Retention Bonus.

 

    2

     

    

 

4. Consequences
of a Termination of Employment Without Cause. Notwithstanding the continued employment requirement of Section 2 above and subject
to Section 2, in the event that the Employee’s employment with the Company is terminated during the Retention Period by the Company
without Cause, the Employee will be paid the unpaid Retention Bonus in accordance with Sections 2 and 3 above; provided that the Employee
had not failed to satisfy any of the conditions set forth in Section 2 immediately prior to such termination. For purposes of this Agreement:

 

		a.	“Cause” shall mean (i) the Employee has been convicted or entered a plea of guilty
or nolo contendere in a federal or state court of a crime classified as a felony or a crime involving moral turpitude; (ii) action or
inaction by the Employee (A) that constitutes embezzlement, theft, misappropriation or conversion of assets of any Company Entity which
alone or together with related actions or inactions involve assets of more than a de minimis amount or that constitutes intentional fraud,
gross malfeasance of duty, or conduct grossly inappropriate to the Employee’s office, and (B) such action or inaction has adversely
affected or is likely to adversely affect the business of the Company Entities, taken as a whole, or has resulted or is intended to result
in a direct or indirect gain or personal enrichment of the Employee (or the Employee’s relatives or other similar close relations,
as applicable) to the detriment of any Company Entity; (iii) the Employee has been grossly inattentive to, or in a grossly negligent manner
failed to competently perform, the Employee’s job duties and the failure was not cured within 30 days after written notice from
the Company; (iv) breach by the Employee of any material provision of this Agreement; (v) material violation of any Company policy or
code, or term of any agreement between the Employee and the Company; or (vi) substantial or habitual abuse of alcohol and/or drugs, including
prescription medication, or similar substances that impair the Employee’s job performance. Any termination of the Employee’s
employment by the Company for Cause shall be communicated by written notice from the Company to the Employee, which notice shall set forth
in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Employee’s employment under this
provision (the “Notice of Termination”). The Employee shall not be deemed to have been terminated for Cause unless
and until (x) the Employee receives a Notice of Termination from the Company; (y) the Employee is given the opportunity to be heard before
the Board; and (z) the Board finds in its good faith opinion, the Employee engaged in the conduct set forth in the Notice of Termination.
The Board may retroactively deem a termination of the Employee’s employment to have been for “Cause” if circumstances
constituting “Cause” existed prior to the Employee’s date of termination but become known to the Board after the date
of termination.

 

		b.	“Company Entity” shall mean any parent, subsidiary or affiliate of the Company.

 

5. Termination
of Agreement. Upon the Employee’s failure to satisfy any of the payment conditions set forth in this Agreement, this Agreement
and the opportunity to receive any payment due to the Employee hereunder shall automatically terminate and be forfeited, void and of no
further force and effect, in all cases, without any action from the parties hereto.

 

6. No
Right to Continued Employment. This Agreement shall not be regarded as a contract of employment for a set period of time and does
not confer upon the Employee any right with respect to the continuance of employment or other service with the Company or any subsidiary.
Further, this Agreement shall not interfere in any way with any right that the Company or any subsidiary would otherwise have to terminate
the Employee’s employment or other service at any time. The Employee remains an at-will employee for the duration of the Employee’s
employment with the Company, including during the Retention Period, which means that the Company or the Employee may terminate the Employee’s
employment at any time with or without cause and without advance notice. Any economic or other benefit to the Employee under this Agreement
shall not be taken into account in determining any benefits to which the Employee may be entitled under any severance, retirement or other
benefit or compensation plan or policy maintained by the Company unless expressly provided for under such plan or policy. 

 

    3

     

    

 

7. Section
409A of the Internal Revenue Code. Although the Company does not guarantee the tax treatment of any payment under this Agreement,
this Agreement and any payments made hereunder are intended to comply with or be exempt from Section 409A of the Code, and, accordingly,
to the maximum extent permitted, this Agreement shall be interpreted in a manner consistent therewith. Any payment under this Agreement
may only be made upon an event and in a manner permitted by Section 409A of the Code, and such payments are intended to be exempt from
Section 409A of the Code under the “short-term deferral” exception, to the maximum extent applicable. For purposes of Section
409A of the Code, the Employee’s right to receive any installment payments pursuant to this Agreement shall be treated as a right
to receive a series of separate and distinct payments. Prior to November 15, 2022, the Company reserves the right to amend the provisions
of this Agreement at any time and in any manner without the Employee’s consent but with notice to the Employee solely to comply
with the requirements of Section 409A of the Code and to avoid the imposition of additional tax, interest or income inclusion under Section
409A of the Code on any payment to be made hereunder. Notwithstanding the foregoing, in no event shall the Company be liable for any additional
tax, interest, income inclusion or other penalty that may be imposed on the Employee by Section 409A of the Code or for damages for failing
to comply with Section 409A of the Code.

 

8. Withholding.
The Company may deduct and withhold from any amount payable under this Agreement such federal, state, local, foreign, or other taxes as
are required to be withheld pursuant to any applicable tax law or regulation. The Employee hereby acknowledges that the Company has advised
the Employee to consult with the Employee’s legal, tax or financial advisors with respect to any tax or other financial consequences
of any amounts paid to the Employee under this Agreement.

 

9. Entire
Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter contained
herein and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties,
whether oral or written, by any officer, employee or representative of any party hereto; provided, that the restrictive covenants
contained in this Agreement are in addition to, and not in lieu of, any existing or future restrictive covenant agreement or similar
obligations contained in any other agreements between the Employee and the Company. None of the parties hereto will be liable to any
other party in any manner by any representations and warranties or covenants relating to such subject matter except as specifically
set forth in this Agreement. Except as provided in Section 7, any modification of this Agreement will be effective only if it is in
writing and signed by both parties.

 

10. Assignment.
Without the prior written consent of the Company, this Agreement is not assignable by the Employee other than by will or the laws of descent
and distribution, and any assignment in violation of this Agreement will be void. Notwithstanding the foregoing, this Agreement and the
rights hereunder will inure to the benefit of and be enforceable by the Employee’s personal or legal representatives, executors,
administrators, successors, heirs, distributes, devisees and legatees. The Company may assign or delegate this Agreement or any of its
rights or obligations hereunder to a person or entity that is an affiliate of or successor to the Company.

 

11. Governing
Law. This Agreement shall be governed in all respects by the laws of the State of California without regard to its conflict of laws
rules or principles that might refer to the laws of another jurisdiction.

 

12. Counterparts.
This Agreement may be executed in counterparts, which shall be deemed originals with the same effect as if both parties had signed the
same document. Any counterpart shall be construed together with any other counterpart and both shall constitute one Agreement. For the
purposes of this Agreement, a facsimile or PDF copy of a signature shall be construed to be an original.

 

[Signature Page Follows]

 

    4

     

    

 

AGREED AND ACCEPTED:

 

	ODED SHEIN	 	SHIFT TECHNOLOGIES, INC.
	 	 	 	 	 
	Signature: 	 	 	Signature: 	 
	 	 	 	 	 
	Date:  	/s/ Oded Shein	 	Name:	/s/ Tracy Notte
	 	 	 	Title:	Chief People Officer
	 	 	 	 	 
	 	 	 	Date:	06/22/2022

 

 

5

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