Document:

Exhibit 10.6

 

Glenfarne Merger Corp.

292 Madison Avenue

19th Floor

New York, NY 10017

 

July 22, 2020

 

Glenfarne Sponsor, LLC 

292 Madison Avenue

19th
Floor

New York, NY 10017

 

RE: Subscription Agreement for Founder Shares

 

Ladies and Gentlemen:

 

We are pleased
to accept the offer Glenfarne Sponsor, LLC (the “Subscriber” or “you”) has made to purchase
8,625,000 shares (“Founder Shares”) of Class B common stock, $0.0001 par value per share (the “Class
B Common Stock” and, together with all other classes of Company (as defined below) common stock, the “Common
Stock”), of Glenfarne Merger Corp., a Delaware corporation (the “Company”), up to 1,125,000 of which
are subject to forfeiture by you if the underwriters of the proposed initial public offering (“IPO”) of the
Company pursuant to the registration statement on Form S-1 expected to be filed by the Company in connection with the IPO (the
“Registration Statement”) do not fully exercise their over-allotment option (the “Over-allotment Option”)
as described below. The terms (this “Agreement”) on which the Company is willing to sell the Founder Shares
to the Subscriber, and the Company and the Subscriber’s agreements regarding such Founder Shares, are as follows:

 

1. Purchase
of Founder Shares. For the sum of $25,000.00 (the “Purchase Price”), which the Company acknowledges receiving
in cash, the Company hereby sells and issues the Founder Shares to the Subscriber, and the Subscriber hereby purchases the Founder
Shares from the Company, subject to the forfeiture provisions of Section 3 below, on the terms and subject to the conditions set
forth in this Agreement. Concurrently with the Subscriber’s execution of this Agreement, the Company shall, at its option,
deliver to the Subscriber a certificate registered in the Subscriber’s name representing the Founder Shares, or effect such
delivery in book-entry form.

 

2. Representations, Warranties
and Agreements.

 

2.1. Subscriber’s
Representations, Warranties and Agreements. To induce the Company to issue the Founder Shares to the Subscriber, the Subscriber
hereby represents and warrants to the Company and agrees with the Company as follows:

 

2.1.1. No
Government Recommendation or Approval. The Subscriber understands that no federal or state agency has passed upon or made any
recommendation or endorsement of the offering of the Founder Shares.

 

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2.1.2. No
Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Subscriber of the transactions
contemplated hereby do not violate, conflict with or constitute a default under (i) the formation and governing documents of the
Subscriber, (ii) any agreement, indenture or instrument to which the Subscriber is a party, (iii) any law, statute, rule or regulation
to which the Subscriber is subject, or (iv) any agreement, order, judgment or decree to which the Subscriber is subject.

 

2.1.3. Organization
and Authority. The Subscriber is a Delaware limited liability company, validly existing and in good standing under the laws
of Delaware and possesses all requisite power and authority necessary to carry out the transactions contemplated by this Agreement.
Upon execution and delivery by you, this Agreement will be a legal, valid and binding agreement of the Subscriber, enforceable
against the Subscriber in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency,
fraudulent conveyance or similar laws affecting the enforcement of creditors’ rights generally and subject to general principles
of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

 

2.1.4. Experience,
Financial Capability and Suitability. The Subscriber is: (i) sophisticated in financial matters and is able to evaluate the
risks and benefits of the investment in the Founder Shares and (ii) able to bear the economic risk of its investment in the Founder
Shares for an indefinite period of time because the Founder Shares have not been registered under the Securities Act (as defined
below) and therefore cannot be resold unless such transaction is registered under the Securities Act or an exemption from such
registration is available. The Subscriber is capable of evaluating the merits and risks of its investment in the Company and has
the capacity to protect its own interests. The Subscriber must bear the economic risk of this investment until the Founder Shares
are sold pursuant to: (x) an effective registration statement under the Securities Act or (y) an exemption from registration available
with respect to such sale. The Subscriber is able to bear the economic risks of an investment in the Founder Shares and to afford
a complete loss of the Subscriber’s investment in the Founder Shares.

 

2.1.5. Access
to Information; Independent Investigation. Prior to the execution of this Agreement, the Subscriber has had the opportunity
to ask questions of and receive answers from representatives of the Company concerning an investment in the Company, as well as
the finances, operations, business and prospects of the Company, and the opportunity to obtain additional information to verify
the accuracy of all information so obtained. In determining whether to make this investment, the Subscriber has relied solely on
the Subscriber’s own knowledge and understanding of the Company and its business based upon the Subscriber’s own due
diligence investigation and the information furnished pursuant to this paragraph. The Subscriber understands that no person has
been authorized to give any information or to make any representations which were not furnished pursuant to this Section 2 and
the Subscriber has not relied on any other representations or information in making its investment decision, whether written or
oral, relating to the Company, its operations or its prospects.

 

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2.1.6. Regulation
D Offering. The Subscriber represents that it is an “accredited investor” as such term is defined in Rule 501(a)
of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”), and acknowledges the sale
contemplated hereby is being made in reliance on a private placement exemption applicable to “accredited investors”
within the meaning of Section 501(a) of Regulation D under the Securities Act or similar exemptions under federal and state law.

 

2.1.7. Investment
Purposes. The Subscriber is purchasing the Founder Shares solely for investment purposes, for the Subscriber’s own account
and not for the account or benefit of any other person, and not with a view towards the distribution or dissemination thereof.
The Subscriber did not enter into this Agreement as a result of any general solicitation or general advertising within the meaning
of Rule 502 of Regulation D under the Securities Act.

 

2.1.8. Restrictions
on Transfer; Shell Company. The Subscriber understands the Founder Shares are being offered in a transaction not involving
a public offering within the meaning of the Securities Act. The Subscriber understands the Founder Shares will be “restricted
securities” as defined in Rule 144(a)(3) under the Securities Act and the Subscriber understands that any certificate or
book entries representing the Founder Shares will contain a legend in respect of such restrictions. If in the future the Subscriber
decides to offer, resell, pledge or otherwise transfer the Founder Shares, such Founder Shares may be offered, resold, pledged
or otherwise transferred only in accordance with the provisions of Section 5 hereof. The Subscriber agrees that if any transfer
of its Founder Shares or any interest therein is proposed to be made, as a condition precedent to any such transfer, the Subscriber
may be required to deliver to the Company an opinion of counsel satisfactory to the Company. Absent registration under the Securities
Act or an exemption therefrom, the Subscriber agrees not to resell the Founder Shares. The Subscriber further acknowledges that
because the Company is a shell company, Rule 144 may not be available to the Subscriber for the resale of the Founder Shares until
at least one year following consummation of the initial business combination of the Company, despite technical compliance with
the certain requirements of Rule 144 and the release or waiver of any contractual transfer restrictions.

 

2.1.9. No
Governmental Consents. No governmental, administrative or other third-party consents or approvals are required, necessary or
appropriate on the part of the Subscriber in connection with the transactions contemplated by this Agreement.

 

2.2. Company’s
Representations, Warranties and Agreements. To induce the Subscriber to purchase the Founder Shares, the Company hereby represents
and warrants to the Subscriber and agrees with the Subscriber as follows:

 

2.2.1. Organization
and Corporate Power. The Company is a Delaware corporation and is qualified to do business in every jurisdiction in which the
failure to so qualify would reasonably be expected to have a material adverse effect on the financial condition, operating results
or assets of the Company. The Company possesses all requisite corporate power and authority necessary to carry out the transactions
contemplated by this Agreement.

 

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2.2.2. No
Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Company of the transactions
contemplated hereby do not violate, conflict with or constitute a default under (i) the Certificate of Incorporation or Bylaws
of the Company, (ii) any agreement, indenture or instrument to which the Company is a party, (iii) any law, statute, rule or regulation
to which the Company is subject, or (iv) any agreement, order, judgment or decree to which the Company is subject.

 

2.2.3. Title
to Securities. Upon issuance in accordance with, and payment pursuant to, the terms hereof, the Founder Shares will be duly
and validly issued, fully paid and nonassessable. Upon issuance in accordance with, and payment pursuant to, the terms hereof
the Subscriber will have or receive good title to the Founder Shares, free and clear of all liens, claims and encumbrances of
any kind, other than (a) transfer restrictions hereunder and other agreements to which the Founder Shares may be subject which
have been notified to the Subscriber in writing, (b) transfer restrictions under federal and state securities laws, and (c) liens,
claims or encumbrances imposed due to the actions of the Subscriber.

 

2.2.4. No
Adverse Actions. There are no actions, suits, investigations or proceedings pending, threatened against or affecting the Company
which: (i) seek to restrain, enjoin, prevent the consummation of or otherwise affect the transactions contemplated by this Agreement
or (ii) question the validity or legality of any transactions or seek to recover damages or to obtain other relief in connection
with any transactions.

 

3. Forfeiture of Founder Shares.

 

3.1. Partial
or No Exercise of the Over-allotment Option. In the event the Over-allotment Option granted to the underwriters of the IPO
is not exercised in full, the Subscriber acknowledges and agrees that it (and, if applicable, any transferee of Founder Shares)
shall automatically forfeit at the time such Over-allotment Option expires (or earlier if the underwriters of the IPO waive their
ability to exercise such Over-allotment Option) any and all rights to such number of Founder Shares (up to an aggregate of 1,125,000
Founder Shares and pro rata based upon the percentage of the Over-allotment Option exercised) such that immediately following such
forfeiture, the Subscriber (and any such transferees), collectively with all other initial stockholders of the Company prior to
the IPO, will own an aggregate number of Founder Shares equal to 20% of the issued and outstanding Common Stock immediately following
the IPO.

 

3.2. Termination
of Rights as Stockholder. If any of the Founder Shares are forfeited in accordance with this Section 3, then after such time
the Subscriber (or its successor in interest), shall no longer have any rights as a holder of such forfeited Founder Shares, and
the Company shall take such action as is appropriate to cancel such forfeited Founder Shares.

 

3.3. Share
Certificates. In the event an adjustment to any certificate representing the Founder Shares purchased pursuant hereto is required
pursuant to this Section 3, then the Subscriber shall return such certificate to the Company or its designated agent as soon as
practicable upon its receipt of notice from the Company advising the Subscriber of such adjustment, following which a new certificate
shall be issued in such amount representing the adjusted number of Founder Shares held by the Subscriber. Such new certificate,
if any, shall be returned to the Subscriber as soon as practicable. Any such adjustment for any uncertificated securities held
by the Subscriber shall be made in book-entry form.

  

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4. Waiver
of Liquidation Distributions; Redemption Rights. In connection with the Founder Shares purchased pursuant to this Agreement,
the Subscriber hereby waives any and all right, title, interest or claim of any kind in or to any distributions by the Company
from the trust account which will be established for the benefit of the Company’s public stockholders and into which substantially
all of the proceeds of the IPO will be deposited (the “Trust Account”), in the event of a liquidation of the
Company upon the Company’s failure to timely complete an initial business combination. For purposes of clarity, in the event
the Subscriber purchases securities in the IPO or securities of the Company issued in the IPO in the aftermarket, any additional
Common Stock so purchased shall be eligible to receive any liquidating distributions from the Trust Account by the Company. However,
in no event will the Subscriber have the right to redeem any shares of Common Stock into funds held in the Trust Account upon the
successful completion of an initial business combination.

 

5. Restrictions on Transfer.

 

5.1. Securities
Law Restrictions. In addition to any restrictions to be contained in that certain letter agreement (commonly known as an “Insider
Letter”) to be entered into between the Company and the Subscriber in connection with the consummation of the IPO, the
Subscriber agrees not to sell, transfer, pledge, hypothecate or otherwise dispose of all or any part of the Founder Shares unless,
prior thereto (a) a registration statement on the appropriate form under the Securities Act and applicable state securities laws
with respect to the Founder Shares proposed to be transferred shall then be effective or (b) the Company has received an opinion
from counsel reasonably satisfactory to the Company, that such registration is not required because such transaction is exempt
from registration under the Securities Act and the rules promulgated by the Securities and Exchange Commission thereunder and with
all applicable state securities laws.

 

5.2. Lock-up.
The Subscriber acknowledges that the Founder Shares will be subject to lock- up provisions (the “Lock-up”) contained
in the Insider Letter. Pursuant to the Insider Letter, the Subscriber will agree (subject to certain customary exceptions) not
to sell, transfer, pledge, hypothecate or otherwise dispose of all or any part of the Founder Shares until the earlier to occur
of: (a) one year after the completion of the Company’s initial business combination or (b) the date on which the Company
completes a liquidation, merger, stock exchange or other similar transaction after its initial business combination that results
in all of its stockholders having the right to exchange their shares of Common Stock for cash, securities or other property. Notwithstanding
the foregoing, if the last sale price of the Common Stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock
dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing
at least 150 days after the Company’s initial business combination, the Founder Shares will be released from the Lock- up.

 

5.3. Restrictive
Legends. All certificates representing the Founder Shares shall have endorsed thereon legends substantially as follows:

 

“THE SECURITIES REPRESENTED
HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND NEITHER THE SECURITIES
NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER SUCH ACT OR SUCH LAWS OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS WHICH, IN THE OPINION OF
COUNSEL (IF THE COMPANY SO REQUESTS), IS AVAILABLE.”

 

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“THE SECURITIES REPRESENTED BY THIS CERTIFICATE
ARE SUBJECT TO LOCKUP PROVISIONS AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED DURING THE TERM OF THE
LOCKUP PERIOD.”

 

5.4. Additional
Founder Shares or Substituted Securities. In the event of the declaration of a stock dividend, the declaration of a special
dividend payable in a form other than Common Stock, a spin-off, a stock split, an adjustment in conversion ratio, a recapitalization
or a similar transaction affecting the Company’s outstanding Common Stock without receipt of consideration, any new, substituted
or additional securities or other property which are by reason of such transaction distributed with respect to any Founder Shares
subject to this Section 5 or into which such Founder Shares thereby become convertible shall immediately be subject to this Section
5 and Section 3. Appropriate adjustments to reflect the distribution of such securities or property shall be made to the number
or class of Founder Shares subject to this Section 5 and Section 3.

 

5.5. Registration
Rights. The Subscriber acknowledges that the Founder Shares are being purchased pursuant to an exemption from the registration
requirements of the Securities Act and will become freely tradable only after certain conditions are met or they are registered
pursuant to a registration rights agreement to be entered into with the Company prior to the closing of the IPO (the “Registration
Rights Agreement”).

 

6. Other Agreements.

 

6.1. Further
Assurances. The Subscriber agrees to execute such further instruments and to take such further action as may reasonably be
necessary to carry out the intent of this Agreement.

 

6.2. Notices.
All notices, statements or other documents which are required or contemplated by this Agreement shall be in writing and delivered:
(i) personally or sent by first class registered or certified mail, overnight courier service or facsimile or electronic transmission
to the address designated in writing, (ii) by facsimile to the number most recently provided to such party or such other address
or fax number as may be designated in writing by such party and (iii) by electronic mail, to the electronic mail address most recently
provided to such party or such other electronic mail address as may be designated in writing by such party. Any notice or other
communication so transmitted shall be deemed to have been given on the day of delivery, if delivered personally, on the business
day following receipt of written confirmation, if sent by facsimile or electronic transmission, one (1) business day after delivery
to an overnight courier service or five (5) days after mailing if sent by mail.

 

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6.3. Entire
Agreement. This Agreement, together with that certain Insider Letter to be entered into between the Subscriber and the Company
and the Registration Rights Agreement, each substantially in the form to be filed as an exhibit to the Registration Statement,
embodies the entire agreement and understanding between the Subscriber and the Company with respect to the subject matter hereof
and supersedes all prior oral or written agreements and understandings relating to the subject matter hereof. No statement, representation,
warranty, covenant or agreement of any kind not expressly set forth in this Agreement shall affect, or be used to interpret, change
or restrict, the express terms and provisions of this Agreement.

 

6.4. Modifications
and Amendments. The terms and provisions of this Agreement may be modified or amended only by written agreement executed by
all parties hereto.

 

6.5. Waivers
and Consents. The terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only
by written document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent shall
be deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of this Agreement, whether
or not similar. Each such waiver or consent shall be effective only in the specific instance and for the purpose for which it was
given, and shall not constitute a continuing waiver or consent.

 

6.6. Assignment.
The rights and obligations under this Agreement may not be assigned by either party hereto without the prior written consent of
the other party.

 

6.7. Benefit.
All statements, representations, warranties, covenants and agreements in this Agreement shall be binding on the parties hereto
and shall inure to the benefit of the respective successors and permitted assigns of each party hereto. Nothing in this Agreement
shall be construed to create any rights or obligations except among the parties hereto, and no person or entity shall be regarded
as a third-party beneficiary of this Agreement.

 

6.8. Governing
Law. This Agreement and the rights and obligations of the parties hereunder shall be construed in accordance with and governed
by the laws of the State of Delaware applicable to contracts wholly performed within the borders of such state.

 

6.9. Severability.
In the event that any court of competent jurisdiction shall determine that any provision, or any portion thereof, contained in
this Agreement shall be unreasonable or unenforceable in any respect, then such provision shall be deemed limited to the extent
that such court deems it reasonable and enforceable, and as so limited shall remain in full force and effect. In the event that
such court shall deem any such provision, or portion thereof, wholly unenforceable, the remaining provisions of this Agreement
shall nevertheless remain in full force and effect.

 

6.10. No
Waiver of Rights, Powers and Remedies. No failure or delay by a party hereto in exercising any right, power or remedy under
this Agreement, and no course of dealing between the parties hereto, shall operate as a waiver of any such right, power or remedy
of such party. No single or partial exercise of any right, power or remedy under this Agreement by a party hereto, nor any abandonment
or discontinuance of steps to enforce any such right, power or remedy, shall preclude such party from any other or further exercise
thereof or the exercise of any other right, power or remedy hereunder. The election of any remedy by a party hereto shall not
constitute a waiver of the right of such party to pursue other available remedies. No notice to or demand on a party not expressly
required under this Agreement shall entitle the party receiving such notice or demand to any other or further notice or demand
in similar or other circumstances or constitute a waiver of the rights of the party giving such notice or demand to any other
or further action in any circumstances without such notice or demand.

 

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6.11. Survival
of Representations and Warranties. All representations and warranties made by the parties hereto in this Agreement or in any
other agreement, certificate or instrument provided for or contemplated hereby, shall survive the execution and delivery hereof
and any investigations made by or on behalf of the parties.

 

6.12. No
Broker or Finder. Each of the parties hereto represents and warrants to the other that no broker, finder or other financial
consultant has acted on its behalf in connection with this Agreement or the transactions contemplated hereby in such a way as to
create any liability on the other. Each of the parties hereto agrees to indemnify and hold the other harmless from any claim or
demand for commission or other compensation by any broker, finder, financial consultant or similar agent claiming to have been
employed by or on behalf of such party and to bear the cost of legal expenses incurred in defending against any such claim.

 

6.13. Headings
and Captions. The headings and captions of the various sections of this Agreement are for convenience of reference only and
shall in no way modify or affect the meaning or construction of any of the terms or provisions hereof.

 

6.14. Counterparts.
This Agreement may be executed in one or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being
understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or any other form of electronic delivery, such signature shall create a valid and binding obligation of the party executing (or
on whose behalf such signature is executed) with the same force and effect as if such signature page were an original thereof.

 

6.15. Construction.
The words “include,” “includes,” and “including” will be deemed to be
followed by “without limitation.” Pronouns in masculine, feminine, and neuter genders will be construed to include
any other gender, and words in the singular form will be construed to include the plural and vice versa, unless the context otherwise
requires. The words “this Agreement,” “herein,” “hereof,” “hereby,”
“hereunder,” and words of similar import refer to this Agreement as a whole and not to any particular section
unless expressly so limited. The parties hereto intend that each representation, warranty, and covenant contained herein will have
independent significance. If any party hereto has breached any representation, warranty, or covenant contained herein in any respect,
the fact that there exists another representation, warranty or covenant relating to the same subject matter (regardless of the
relative levels of specificity) which such party hereto has not breached will not detract from or mitigate the fact that such party
hereto is in breach of the first representation, warranty, or covenant.

 

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6.16. Mutual
Drafting. This Agreement is the joint product of the Subscriber and the Company and each provision hereof has been subject
to the mutual consultation, negotiation and agreement of such parties and shall not be construed for or against any party hereto.

 

7. Voting
and Redemption of Founder Shares. The Subscriber agrees to vote the Founder Shares in favor of an initial business combination
that the Company negotiates and submits for approval to the Company’s stockholders and shall not seek redemption with respect
to such Founder Shares. Additionally, the Subscriber agrees not to redeem any Founder Shares in connection with a redemption or
tender offer presented to the Company’s stockholders in connection with an initial business combination negotiated by the
Company.

 

8. Indemnification.
Each party shall indemnify the other against any loss, cost or damages (including reasonable attorneys’ fees and expenses)
incurred as a result of such party’s breach of any representation, warranty, covenant or agreement in this Agreement.

 

[Signature Page Follows]

 

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If the foregoing accurately sets
forth our understanding and agreement, please sign the enclosed copy of this Agreement and return it to us.

 

	 	Very truly yours,
	 	 
	 	GLENFARNE MERGER CORP.
	 	 	 
	 	By:	/s/ Brendan Duval
	 	Name: 	Brendan Duval
	 	Title:	Chief Executive Officer

 

Accepted and agreed as of the date first written above.

 

	GLENFARNE SPONSOR, LLC	 
	By: Glenfarne Infrastructure Holdings, LLC, its sole manager	 
	 	 	 
	By:	/s/ Brendan Duval	 
	Name: 	Brendan Duval	 
	Title:	Chief Executive Officer	 

 

[Signature Page to Subscription
Agreement]rdvt-ex101_6.htm

 

EXHIBIT 10.1

 

SEPARATION AGREEMENT

 

This Separation Agreement (“Agreement”) dated as of February 16, 2021 (“Effective Date”), is made by and among Red Violet, Inc. (the “Company”) and Michael Brauser (“Brauser”), each referred to as a “Party” and collectively, the “Parties.”

WHEREAS, the Parties entered into an Executive Chairman Services Agreement effective as of August 7, 2018 (the “Services Agreement”), pursuant to which Brauser agreed to provide certain services to the Company (as more fully defined therein);

WHEREAS, on September 5, 2018, the Parties entered into a Restricted Stock Unit Agreement pursuant to the Red Violet, Inc. 2018 Stock Incentive Plan (“2018 RSU Agreement”), granting Brauser the right to receive Restricted Stock Units on a vesting schedule, subject to the provisions and existing conditions of such grant (as more fully defined therein); 

WHEREAS, on November 20, 2020, the Parties entered into a Restricted Stock Unit Agreement pursuant to the Red Violet, Inc. 2018 Stock Incentive Plan, as Amended (“2020 RSU Agreement”), granting Brauser the right to receive Restricted Stock Units on a vesting schedule, subject to the provisions and existing conditions of such grant (as more fully defined therein); 

WHEREAS, the Parties desire, under the terms and conditions set forth herein, to provide clarity with respect to the Parties’ ongoing business relations, and to effectuate an orderly separation between Brauser and the Company. 

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the amount and sufficiency of which is hereby acknowledged, the Parties do hereby stipulate and agree as follows:

1.Non-Renewal of the Services Agreement.  The Services Agreement between the Parties, expiring on August 6, 2021 (“Expiration Date”), will not be renewed, but will continue in force and effect until the Expiration Date.  Subject to the terms contained in the Services Agreement and this Agreement, Brauser will receive continued payment of the monthly cash compensation ($30,000 per month) and his reasonable expenses incurred in connection with any Requested Work (as hereinafter defined) until the Expiration Date in accordance with the existing terms of the Services Agreement.  In the event of a conflict between the terms of this Agreement and the Services Agreement, the terms of this Agreement shall control. 

2.Future Brauser Consulting Activities.  The Company requires, and Brauser agrees, that Brauser will not take any actions on behalf of the Company, including pursuant to the Services Agreement, unless specifically requested in writing by the Company (such requests referred to as "Requested Work").

3.Survival of Provisions in the Services Agreement.  The Parties agree that Sections 7 through 18 of the Services Agreement shall survive the non-renewal of the Services Agreement provided for in Section 1 herein, and August 6, 2021 shall be deemed the date of termination of the Services Agreement for such purposes.

 

 

4.Non-Solicitation of Company’s Business, Customer or Industry Relationships.  Brauser agrees that for the remainder of the current Term of the Services Agreement, and for a period of twenty-four (24) months thereafter (collectively, the “Restricted Period”), Brauser will not directly or indirectly contact, solicit, service, or do business with (or attempt to contact, solicit, service, or do business with) any actual or potential business, customer, client, vendor, supplier, or industry contact of the Company or its related or affiliated companies, who was an actual or potential business, customer, client, vendor, supplier or industry contact of the Company or its related or affiliated companies as of the Effective Date of this Agreement.

5.Non-Solicitation of Company’s Employees, Contractors or Agents.  Brauser agrees that for the Restricted Period, Brauser will not directly or indirectly, induce, solicit, recruit, hire, employ, or attempt to do any of the foregoing or assist others in soliciting, recruiting, hiring or employing any person who is, becomes, or was during the two (2) year period before the Effective Date of this Agreement, an employee, director, officer, agent, consultant or contractor of the Company or any and all related or affiliated companies, to perform services for any person or entity other than the Company, or to otherwise hire away, divert, diminish, or interfere with the Company’s relationships or that of the Company’s related or affiliated entities.  

6.Vesting of Restricted Stock Units Under the 2018 RSU Agreement.  Subject to the terms contained in this Agreement, and for the avoidance of doubt, the Parties agree that the 2018 RSU Agreement is amended to remove Sections 2(b)(iii) and 2(c)(i) thereof, such that the remaining unvested 33-1/3% of the 500,000 Restricted Stock Units granted to Brauser in accordance with the 2018 RSU Agreement will vest on July 1, 2021, subject to all other provisions and conditions of such grant.

7.Vesting of Restricted Stock Units Under the 2020 RSU Agreement.  Subject to the terms contained in this Agreement, the Parties agree that the 2020 RSU Agreement, granting Brauser 30,000 Restricted Stock Units, is amended to remove Sections 2(b) and 2(c)(i) thereof, such that the 30,000 Restricted Stock Units will vest 33-1/3% on November 1, 2021, 66-2/3% on November 1, 2022, and 100% on November 1, 2023, subject to all other provisions and conditions of such grant.

8.Registration of Brauser Shares. During the time when Brauser and his Affiliates (as such term is defined in Rule 144(a)(1) under the Securities Act of 1933, as amended, each an "Affiliate," and collectively, "Affiliates"), individually or as a group, have beneficial ownership (as such term is defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) at least 10% of the Company’s common stock, par value $0.001 (the "Common Stock"), the Company agrees to include in any registration statement filed for the benefit of selling stockholders, the shares of Common Stock held by Brauser and his Affiliates in such registration statement.

9.Voting of Brauser Shares.  For a period beginning on the Effective Date and ending on the Expiration Date, Brauser and his Affiliates agree that they will appear in person or by proxy at each annual or special meeting of stockholders of the Company (including any adjournment, postponement, rescheduling or continuation thereof), whether such meeting is held at a physical location or virtually by means of remote communications, and will vote (or execute a consent with respect to) all shares of Common Stock beneficially owned by him or any of his Affiliates in 

2

 

accordance with the Board’s recommendations with respect to (a) each election of directors, any removal of directors and any replacement of directors, provided that there is a change in no more than 25% of the Company’s current directors, excluding any changes resulting from the death or resignation of a director, and (b) the ratification of the appointment of the Company’s independent registered public accounting firm.

10.General Release.  Except for the obligations to be performed under this Agreement, Brauser, his Representatives, agents, attorneys, corporations, Affiliates, successors, assigns, and heirs, and anyone claiming by, through or under them (the “Releasing Parties”), hereby release and forever discharge the Company, its officers, directors, shareholders, employees, attorneys, representatives, agents, corporations, Affiliates, parent and subsidiary corporations, successors, and assigns (the “Released Parties”), from any and all manner of claims, demands, rights, liabilities, losses, obligations, duties, damages, costs, debts, expenses, interest, penalties, sanctions, fees, attorneys’ fees, actions, potential actions, causes of action, suits, agreements, judgments, decrees, matters, issues, and controversies of any kind, nature, or description whatsoever, whether known or unknown, disclosed or undisclosed, accrued or un-accrued, apparent or unapparent, foreseen or unforeseen, matured or not matured, suspected or unsuspected, liquidated or not liquidated, and fixed or contingent, whether based on state, local, foreign, federal, statutory, regulatory, common, or other law or rule that Brauser or any Releasing Party ever had, now has, or may have, or otherwise could, can or might assert, whether direct, derivative, individual, class, representative, legal, equitable, or of any other type or in any other capacity, from the beginning of the world to the date of this Agreement; provided, however, that this release shall not be applicable with respect to any claims based upon or relating to fraud, theft, embezzlement or a violation of law by the Company.

Except for the obligations to be performed under this Agreement, the Company and anyone claiming by, through or under it, hereby release and forever discharge Brauser, his Representatives, agents, attorneys, Affiliates, successors, assigns, and heirs, from any and all manner of claims, demands, rights, liabilities, losses, obligations, duties, damages, costs, debts, expenses, interest, penalties, sanctions, fees, attorneys’ fees, actions, potential actions, causes of action, suits, agreements, judgments, decrees, matters, issues, and controversies of any kind, nature, or description whatsoever, whether known or unknown, disclosed or undisclosed, accrued or un-accrued, apparent or unapparent, foreseen or unforeseen, matured or not matured, suspected or unsuspected, liquidated or not liquidated, and fixed or contingent, whether based on state, local, foreign, federal, statutory, regulatory, common, or other law or rule that the Company and anyone claiming by, through or under it ever had, now has, or may have, or otherwise could, can or might assert, whether direct, derivative, individual, class, representative, legal, equitable, or of any other type or in any other capacity, from the beginning of the world to the date of this Agreement; provided, however, that this release shall not be applicable with respect to any claims based upon or relating to fraud, theft, embezzlement or a violation of law.

11.Disclosure.  Neither Party shall publish any press release, make any other public announcement or otherwise communicate with any news media concerning this Agreement or the transactions contemplated hereby without the prior written consent of the other Party; provided, however, that nothing contained herein shall prevent either party from promptly making all filings with governmental authorities as may, in his or its judgment be required or advisable in connection with the execution and delivery of this Agreement or the consummation of the transactions 

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contemplated hereby.  Any such disclosure shall be substantially in the form of Exhibit A to this Agreement and the form of Agreement filed with any such filing made by Brauser will incorporate by reference the form of Agreement filed by the Company in accordance with Rule 12b-23(c) and (e) under the Exchange Act.

12.Non-Disparagement.  At all times following the execution of this Agreement, each Party agrees to refrain, and to cause his or its respective Representatives and Affiliates and its Representatives to refrain, from disparaging or making comments or statements, in utterance, writing or other form of communication, that are or may be harmful to the business interests, reputation or good will of the other Party, its or his related or affiliated companies, their respective customers; and their investors, insurers, attorneys, and present and former managers, employees, owners, shareholders, directors, officers, agents and operators, including in their individual capacities, as well as their respective successors and assigns.  The Parties also agree to refrain, and to cause their Representatives and Affiliates and its Representatives to refrain, from assisting or cooperating with any person or entity seeking to publicly disparage or economically harm a Party or any Released Party. Representative means, as to any person or entity, its employees, agents, advisors, officers, directors, and equity holders, including, without limitation, its counsel and consultants.

13.Equitable Relief.  In addition to reserving all rights to pursue monetary damages, the Parties shall have all rights to seek equitable relief with respect to a breach or threatened breach of this Agreement.

14.Prevailing Party Fees and Costs.  In the event of a dispute arising out of or relating to this Agreement, whether or not a lawsuit or other proceeding is filed, the prevailing party is entitled to recover, and the non-prevailing party shall pay, all reasonable attorneys’ fees and costs of the prevailing party, including attorneys’ fees and costs incurred in litigating entitlement to attorneys’ fees and costs and in determining or quantifying the amount of recoverable attorneys’ fees and costs, and all appeals.  The reasonable costs to which the prevailing party is entitled include costs that are taxable under any applicable statute, rule, or guideline and non-taxable costs and expenses.

15.Authority.  In entering into this Agreement, the Parties represent that they are of lawful age, of sound mind, and authorized and competent to enter into this Agreement.  The Parties acknowledge and declare that the terms of this Agreement have been completely read, are fully understood, and are voluntarily accepted in accord and satisfaction of any and all aforementioned claims. 

16.Independent Legal Representation/Waiver of Conflicts.  The Parties acknowledge that the Company has engaged the law firm Akerman LLP (“Akerman”) to represent the Company in the past, and Akerman currently represents and will continue to represent the Company in the future.  Brauser acknowledges that Akerman does not represent him in connection with this matter.  Brauser waives any conflicts related to, and consents to, Akerman’s representation of the Company, and fully understands the ramifications of the conflict waiver language contained herein.  Brauser is being represented by independent legal counsel of his choice, and has sought or been advised to seek the advice 

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and expertise of his independent legal counsel in connection with this Agreement prior to executing this Agreement.  

17.Entire Agreement.  This Agreement constitutes the entire understanding and agreement of the Parties hereto with respect to the subject matter thereof.  This Agreement supersedes all prior negotiations, agreements, statements, and representations with respect to the subject matter hereof.  This Agreement is executed without any reliance upon any statement or representation by the other Party, their respective agents, representatives, or attorneys not set forth herein. 

18.Construction of Agreement.  This Agreement has been negotiated by the respective Parties hereto, and the language hereof shall not be construed for or against any Party.

19.No Modification, Except in Writing.  This Agreement may not be modified or amended in any way except in writing, signed by all Parties.

20.Severability. If any provision of this Agreement is ultimately determined to be invalid or unenforceable, such provision shall be deemed limited by construction in scope and effect to the minimum extent necessary to render the same valid and enforceable, and, in the event no such limiting construction is possible, such invalid or unenforceable provision shall be deemed severed from the Agreement without affecting the validity of any other provision hereof.

21.Governing Law/Venue.  The Parties agree that this Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without reference to the conflict of law provisions thereof.  Any action or proceeding under or pertaining to this Agreement may only be brought in the Delaware Court of Chancery or federal court located within the State of Delaware.

22.Waiver of Jury Trial.  EACH OF THE PARTIES HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION (I) ARISING UNDER THIS AGREEMENT OR (II) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES IN RESPECT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY, OR OTHERWISE.  THE PARTIES EACH HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

23.Counterparts.  This Agreement may be executed in one or more counterparts, and in both original form and one or more photocopies, facsimiles, or PDFs, each of which shall be deemed to be an original and all of which together shall be deemed to constitute the same instrument. 

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24.Captions.  The captions or section headings in this Agreement are for convenience of reference only and shall not be considered in the interpretation of this Agreement.

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IN WITNESS WHEREOF, the undersigned have duly executed this Agreement on the date and year first above written.

 

		
	
 

 

/s/ Michael Brauser

Michael Brauser 

 
	
Red Violet, Inc.

 

By:  /s/ Derek Dubner

Its: CEO

	
 
	
 

 

7

 

 

Exhibit A

 

Form of Agreement

 

On February 16, 2021, Red Violet, Inc. (the “Company”) entered into a Separation Agreement (the "Agreement") with Michael Brauser (“Brauser,” and together with the Company, the “Parties”).

 

Pursuant to the Agreement, the Parties have agreed that the Services Agreement between the Parties, expiring on August 6, 2021 (“Expiration Date”), will not be renewed, but will continue in force and effect until the Expiration Date and that Brauser will not take any actions on behalf of the Company, including pursuant to the Services Agreement, unless specifically requested in writing by the Company. Pursuant to the Agreement, Brauser also agreed (i) to certain non-solicitation obligations contained therein, (ii) that he and his affiliates will not disparage or assist or cooperate with any person or entity seeking to publicly disparage or economically harm the Company, and (iii) that Brauser and his affiliates will not initiate any lawsuit, claim, or proceeding with respect to any claims against the Company, except (with designated exceptions) for any legal proceeding initiated solely to remedy a breach of or to enforce the Agreement.

 

With respect to each annual or special meeting of the Company's stockholders until the Expiration Date of the Agreement, Brauser has agreed to vote the shares of the Company's common stock or any other securities entitled to vote then held by him or his affiliates in accordance with the Board's recommendations on director proposals, provided there is a change in no more than 25% of the current directors (not including changes resulting from a director's death or resignation), and the ratification of the appointment of the Company’s independent registered public accounting firm.

 

The Company agreed (i) that the remaining unvested 166,666 Restricted Stock Units previously granted to Brauser in accordance with the 2018 RSU Agreement will continue to vest on July 1, 2021, in accordance with and subject to all other provisions and conditions of such grant, (ii) to amend the 2020 RSU Agreement, previously granting Brauser 30,000 Restricted Stock Units such that the 30,000 Restricted Stock Units will continue to vest 33-1/3% on November 1, 2021, 66-2/3% on November 1, 2022, and 100% on November 1, 2023, without certain Company performance criteria, subject to all other provisions and conditions of such grant, (iii) to include shares of the Company's common stock held by Brauser or his affiliates in any registration statement the Company files for the benefit of selling stockholders at any time when Brauser or his affiliates beneficially own 10% or more of the Company's common stock, and (iv) to not initiate any lawsuit, claim, or proceeding with respect to any claims against Brauser and his affiliates, except (with designated exceptions) for any legal proceeding initiated solely to remedy a breach of or to enforce the Agreement.

 

The foregoing description of the Agreement does not purport to be complete and is qualified in its entirety by reference to the Agreement, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.

 

Exhibit A-1

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