Document:

ex_411627.htm

 

Exhibit 10.3

 

 

AMENDED AND RESTATED

 

CHANGE OF CONTROL SEVERANCE AGREEMENT

 

This Amended and Restated Change of Control Severance Agreement ("Agreement") between SPAR Group, Inc. a Delaware corporation (the "Corporation" or "SGRP"), and Lawrence David Swift (the "Executive") is made and entered into effective as of August 10, 2022 (the "Effective Date"). The Executive and the Corporation may be referred to individually as a "Party" and collectively as the "Parties". Certain Tax Provisions applicable to this Agreement are set forth in Annex A are part of and incorporated by reference into this Agreement as if fully set forth herein.

 

WHEREAS, the Executive is the General Counsel and a key executive of the Corporation and the Executive reports to the Chief Executive Officer of the Corporation (the "CEO"),

 

WHEREAS, the Executive and SGRP are parties to an Amended and Restated Change in Control Severance Agreement dated November 8, 2018 (the "Existing CICSA"), and an Officer Confidentiality, Non-Solicitation and Arbitration Agreement dated and effective as of September 30, 2019 (the "Existing Confidentiality Agreement"); and

 

WHEREAS, the Corporation, as authorized by its Board of Directors (the "Board"), entered into the Existing CICSA, in order to help retain and motivate the Executive and to help ensure continuity of the business; and

 

WHEREAS, it is in the best interest of the Corporation and its stockholders if the Executive can approach material business decisions objectively and without concern for his personal situation; and

 

WHEREAS, the Corporation recognizes that the possibility of a Change of Control (as defined below) of the Corporation may result in the early departure of the Executive to the detriment of the Corporation and its stockholders;

 

WHEREAS, it is in the best interest of the Corporation and its stockholders that the Executive's Change of Control Severance Agreement conform to those recently executed with other executives; and

 

THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Corporation, and Executive agree as follows:

 

	 	
			1. 

				
			Term of Agreement.

			

 

(a)    The term of this Agreement ("Term") shall commence on the Effective Date and shall continue in effect through the third anniversary of the Effective Date; provided, however, commencing on the first day following the Effective Date and on each day thereafter, the Term of this Agreement shall automatically be extended for one additional day unless the Corporation shall give written notice to Executive that the Term shall cease to be so extended in which event the Agreement shall terminate on the third anniversary of the date such notice is given.

 

(b)    Notwithstanding anything in this Agreement to the contrary, if a Change of Control occurs during the Term of this Agreement, the Term shall automatically be extended for the 12-month period following the date of the Change of Control.

 

(c)    Termination of this Agreement shall not alter or impair any rights of Executive arising hereunder on or before such termination.

 

(d)    Notwithstanding, and without in any way contradicting, limiting or modifying, the potential severance and other benefits under this Agreement, the Executive acknowledges and agrees that the Executive's employment is "at will" and may be modified from time to time and terminated at any time by the Corporation in its discretion, for any reason or no reason, and without notice or benefit of any kind, other than any benefit expressly provided under the circumstances pursuant to this Agreement.

 

-1-

 

 

 

(e)    The Executive and the Corporation have entered into the separate Existing CICSA and Existing Confidentiality Agreement. This Agreement amends, restates, replaces and supersedes his Existing CICSA, and the Existing CICSA shall have no further force or effect. However, this Agreement does not replace, amend or affect his Existing Confidentiality Agreement, which shall continue in full force and effect in accordance with its terms.

 

	 	
			2. 

				
			Certain Definitions.

			

 

(a)   "Bonus" shall mean an amount equal to the highest annual cash bonus paid or payable to Executive by the Corporation during the two-year period prior to Executive's termination of employment.

 

(b)   "Cause" shall mean: (i) the willful and continued failure by Executive to substantially perform Executive's material duties with the Corporation (other than any such failure resulting from Executive's incapacity due to physical or mental illness); (ii) Executive's commission of one or more acts that constitute a felony; (iii) Executive willfully engages in gross misconduct materially and demonstrably injurious to the Corporation; or (iv) one or more significant acts of dishonesty as regards the Corporation or any affiliate. The Corporation shall have the burden of proving Cause with reasonable evidence and supporting documentation. No act, or failure to act, on Executive's part shall be deemed 'willful' (whether or not continued) unless it can be reasonably established to have been done, or omitted to be done, by Executive both in bad faith and without reasonable belief by Executive that Executive's act, or failure to act, was in the best interest of the Corporation. In any event, Executive shall be deemed to have acted (or failed to act) in good faith and with reasonable belief that it was in the best interest of the Corporation if such action (or inaction) was based on either (1) the approval of a majority of the Audit Committee, or (2) the written advice of Corporation's auditors, counsel or General Counsel or the SEC (which advice may be that such action or inaction was permissible or not impermissible or improper irrespective of other alternatives); provided that Corporation shall still have the burden of proving Cause, the Executive shall not be required to obtain any such approval or advice, no inference may be drawn from any failure to do so, and Executive may act (or fail to act) based on any personal belief. The determination of whether Cause exists must be made by the CEO or by a resolution duly adopted by the affirmative vote of not less than 75% of the entire membership of the Board at a meeting of the Board that was called for the purpose of considering such termination (after reasonable notice of such determination to Executive and an opportunity for Executive, together with Executive's counsel, to be heard before the CEO or Board and, if possible, to cure the breach that was the alleged basis for Cause) and then finding that, in the good faith opinion of the CEO or Board, the Corporation's burden of proof had been met, the Executive was guilty of misconduct constituting Cause and specifying the particulars thereof in detail. The determination of Cause may be challenged by Executive in arbitration, in which the Corporation shall continue to have the burden of proof as provided above.

 

	 	
			(c)

				
			Change of Control

			

 

	 	
			(i)

				
			"Change of Control" shall mean the occurrence of any of the following:

			

 

	 	
			(A)

				
			any "person" (as such term is used in Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")), other than a trustee or other fiduciary holding securities under an employee benefit plan of the Corporation, becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Corporation representing 25% or more of the combined voting power of the Corporation's then outstanding securities;

			

 

	 	
			(B)

				
			the consummation of a merger or consolidation of the Corporation with any other corporation, other than a merger or consolidation which would result in the voting securities of the Corporation outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least 75% of the combined voting power of the voting securities of the Corporation (or such surviving entity or parent entity, as the case may be) outstanding immediately after such merger or consolidation;

			

 

	 	
			(C)

				
			the stockholders of the Corporation approve a plan of complete liquidation of the Corporation;

			

 

	 	
			(D)

				
			the departure of the then current Chief Executive Officer of SGRP, or the appointment of a new Chief Executive Officer of SGRP, including any temporary authorization or appointment; or

			

 

	Lawrence David Swift -- COCSA	SPAR Group, Inc.

 

-2-

 

 

 

	 	
			(E)

				
			the sale or disposition by the Corporation of all or substantially all of the assets of the Corporation.

			

 

	 	
			(ii)

				
			More than one Change in Control may occur hereunder, and if more than one Change in Control has occurred, any reference to Change in Control shall mean the then most recent Change in Control preceding the Executive's Severance Date (as hereinafter defined).

			

 

	 	
			(d)

				
			"Code" shall mean the Internal Revenue Code of 1986, as amended.

			

 

	 	
			(e)

				
			"Good Reason" shall mean:

			

 

	 	
			(i)

				
			(A) a Change in Control occurs and the Corporation is no longer an independent company (i.e., it becomes a subsidiary or division of another entity); or (B) the departure of the then current Chief Executive Officer of SGRP, or the appointment of a new Chief Executive Officer of SGRP, including any temporary authorization or appointment (whether or not any other events occur); or

			

 

	 	
			(ii)

				
			a reduction in Executive's authority, duties, titles, status or responsibilities or the assignment to Executive of duties or responsibilities inconsistent in any respect from those of Executive, excluding any changes made by the CEO in the normal course of managing the Corporation, and excluding any action or omission by the Corporation that is isolated, insubstantial and inadvertent and which was not taken in bad faith by the Corporation and is remedied by the Corporation promptly after receipt of notice thereof given by Executive; or

			

 

	 	
			(iii)

				
			any reduction in Executive's annual rate of base salary or any failure by the Corporation to continue in effect any material incentive compensation plan or arrangement (unless replacement plans providing Executive with substantially similar benefits are adopted) or the taking of any action by the Corporation that would adversely affect Executive's participation in any such plan or arrangement or reduce Executive's incentive compensation opportunities under such plan or arrangement, as the case may be; or

			

 

	 	
			(iv)

				
			the Corporation fails to obtain a written agreement from any successor or assigns of the Corporation or its assets to assume and perform this Agreement; or

			

 

	 	
			(v)

				
			the relocation of the Corporation's principal executive offices by more than 35 miles from where such offices were located immediately prior to the Change of Control or the Corporation requires Executive, without Executive's written consent, to be based at any office other than the Corporation's office at which the Executive was based prior to the Change in Control, except for travel reasonably required in the performance of Executive's duties and reasonably consistent with Executive's travel prior to the Change of Control;

			

 

Unless Executive terminates his employment on or within 90 days following an act or omission to act by the Corporation constituting a Good Reason hereunder, and coincident or prior to such termination give the Corporation written notice as to the nature of the Good Reason event, Executive's continued employment after such 90th day shall constitute Executive's consent to, and a waiver of Executive's rights with respect to, such act or failure to act.  Executive's right to terminate Executive's employment for Good Reason shall not be affected by Executive's incapacity due to physical or mental illness.  Executive's determination that an act or failure to act constitutes Good Reason shall be presumed to be valid unless such determination is deemed by an arbitrator to be unreasonable and not to have been made in good faith by Executive.

 

(f)    "Protected Period" shall mean the Term or the 24-month period beginning on the effective date of a Change of Control, whichever is then in effect.

 

(g)    "Severance Date" shall mean the effective date on which the Executive's employment by the Corporation terminates.

 

(h)    "Termination Base Salary" shall mean the sum of the Executive's annual base salary and consulting fees (i.e., 1099 compensation) with the Corporation at the rate in effect immediately prior to the Change of Control or, if a greater amount, the sum of the Executive's annual base salary and consulting fees (i.e., 1099 compensation) at the rate in effect at any time thereafter.

 

	Lawrence David Swift -- COCSA	SPAR Group, Inc.

 

-3-

 

 

 

	 	
			3. 

				
			Release, Confidentiality and Non-Solicitation and Resignations Agreement.

			

 

(a)    As a condition precedent to the payment of any benefits under this Agreement in the event of a Severance Termination (as defined below), the Corporation may in its discretion require (within the ten business day period described below) the execution and delivery by the Executive of any one or more of a Release, Confidentiality Agreement (if not already executed and delivered) and Resignation (as such terms are defined below); provided, however, that each Release, Confidentiality Agreement and Resignation shall expressly exclude and reserve, and shall not in any way affect, the Executive's rights under this Agreement and any other severance agreement and rights to indemnification (including advancement and defense) under the Corporation's By-Laws and insurance policies and under applicable law.

 

(b)    No Release, Confidentiality Agreement or Resignation shall be required unless the Corporation gives (by hand or overnight delivery with a copy by email) to the Executive the requested Release and/or Resignation signed by the Corporation within the ten-business day period following the date of such Severance Termination (the "Severance Termination Date").

 

(c)    "Release" shall mean a mutual release agreement between the Executive and the Corporation (on behalf of all of all SGRP Companies) dated and effective as of the Severance Termination Date in form and substance mutually and reasonably acceptable to the Parties.

 

(d)    "Confidentiality Agreement" shall mean the Existing Confidentiality Agreement between the Executive and the Corporation (with, among other things, a five-year period of confidentiality and a three-year period of non-solicitation following termination, but without any non-compete), which shall survive and continue in full force and effect following any Severance Termination.

 

(e)    "Resignation" shall mean a confirmatory resignation letter from the Executive for each applicable Subsidiary of SGRP dated and effective as of the date of the Severance Termination Date (as defined below) in form and substance mutually and reasonably acceptable (and the parties agree that the subsidiary forms used in previous departures are reasonably acceptable).

 

	 	
			4. 

				
			Severance Benefits.

			

 

(a)    Without in any way contradicting, limiting or modifying the "at will" nature of the Executive's employment, if (i) Executive terminates his employment with the Corporation during the Term for a Good Reason event or (ii) the Corporation terminates Executive's employment during the Term other than (A) for Cause or (B) due to Executive's inability to perform the primary duties of his position for at least 180 consecutive days due to a physical or mental impairment (each of which will be referred to as a "Severance Termination"), the provisions of this Section shall apply and the benefits provided by this Section shall be in lieu of any and all other severance or similar termination benefits that might otherwise apply (which other benefits are hereby waived by the Executive in the event such Severance Termination benefits apply), subject to the Corporation's receipt of the documents required in Section 3 above, Executive shall receive the following compensation and benefits from the Corporation, subject to deferral as and to the extent provided in Annex A hereto:

 

(b)    Within twenty business days of the date of his Severance Termination the Corporation shall pay to Executive in a lump sum, in cash, an amount equal to one (1.0) times the sum of Executive's (i) Termination Base Salary and (ii) Bonus.

 

(c)    Notwithstanding anything in any Corporation employee stock incentive plan or any grant agreement to the contrary, as of the date of Executive's termination of employment (i) all granted restricted shares of Corporation stock and all restricted unit awards with respect to common units of Corporation stock of Executive shall become 100% vested and all restrictions thereon shall lapse and the Corporation shall, subject to Annex A hereto, promptly deliver to Executive unrestricted shares of Corporation stock and common units and (ii) each outstanding Corporation stock option of Executive shall become 100% exercisable and shall remain exercisable for the remainder of such option's term or three years, whichever is less and (iii) all 401k contributions shall become 100% vested and all restrictions thereon shall lapse.

 

(d)    For the 12-month period beginning on the date of his termination of employment (the "Continuation Period"), the Corporation shall continue to provide Executive and Executive's eligible family members with medical, vision and dental health benefits at least equal to those which would have been provided to Executive if Executive's employment had not been terminated or, if more favorable to Executive, as in effect generally at any time during such period and provided it can do so on a nontaxable basis under the Code; further provided Executive pays a monthly premium for such coverage equal to the monthly premium charged to active employees in general for similar coverage.  Notwithstanding the foregoing, if Executive becomes eligible to receive medical, vision and dental benefits under another employer's group welfare plans during this Continuation Period, the Corporation's obligations under this Section C shall be reduced to the extent comparable benefits are actually received by Executive during such period, and any such benefits actually received by Executive shall be promptly reported by Executive to the Corporation.  In the event the provision of Corporation medical, vision and dental plans to Executive under this Section would be taxable under Code Section 105, then within twenty business days of the date of his termination of employment the Corporation will provide Executive with a lump sum payment in such amount that, after all taxes on that amount, shall be equal to the cost to Executive of Executive's obtaining such coverage from another source for Executive and Executive's eligible family members.  The lump sum shall be determined on a present value basis using the interest rate provided in Section 1274(b)(2)(B) of the Internal Revenue Code on the date of termination.

 

	Lawrence David Swift -- COCSA	SPAR Group, Inc.

 

-4-

 

 

 

(e)    If Executive's employment with the Corporation terminates prior to, but within six months of, the date on which a Change of Control occurs, and it is reasonably demonstrated by Executive that such termination of employment was (i) by the Corporation in connection with or in anticipation of the Change of Control or (ii) by Executive under circumstances which would have constituted Good Reason if the circumstances arose on or after the Change of Control, then for all purposes of this Agreement the Change of Control shall be deemed to have occurred, and the Protected Period shall be deemed to have commenced, on the date immediately prior to the date of such termination of Executive's employment.

 

(f)    The Corporation may withhold from any amounts or benefits payable under this Agreement all such taxes as it shall be required to withhold pursuant to any applicable law or regulation.

 

(g)    Any payment not timely made by the Corporation under this Agreement shall bear interest at the highest non-usurious rate permitted by applicable law.

 

	 	
			5. 

				
			Tax Gross Up Provisions.

			

 

If any payment made, or benefit provided, to or on behalf of Executive pursuant to this Agreement ("Payments") results in Executive being subject to the excise tax imposed by Section 4999 of the Internal Revenue Code (or any successor or similar provision) ("4999 Excise Tax"), then, subject to Annex A hereto, the Corporation shall pay the Executive an additional amount (the "4999 Gross-Up Payment") such that the net amount retained by the Executive after deduction of the 4999 Excise Tax and any interest charges or penalties in respect of the imposition of such excise tax (but not any federal, state or local income tax, or employment tax) on the Payments, and any federal, state and local income tax, employment tax, and excise tax upon the payment provided for by this Section 4(a), shall be equal to the Payments as if the 4999 Excise Tax was not applicable to the Payments. The Corporation shall, subject to Annex A hereto, pay the 4999 Gross-Up Payment, if any, no earlier than the first day of the seventh month following the month in which Executive incurs a separation from service with the Corporation and no later than the end of the calendar year following the year in which the Executive remits the Section 4999 Excise Tax to the Internal Revenue Service

 

	 	
			6. 

				
			No Mitigation.

			

 

Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise nor, except as provided in Sections 3C and D, shall the amount of any payment or benefit provided for in this Agreement be reduced as the result of employment by another employer or self-employment, by offset against any amount claimed to be owed by Executive to the Corporation or otherwise, except that any severance payments or benefits that Executive is entitled to receive pursuant to a Corporation severance plan or program for employees in general shall reduce the amount of payments and benefits otherwise payable or to be provided to Executive under this Agreement.

 

	 	
			7. 

				
			Successor Agreement.

			

 

The Corporation will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Corporation to assume expressly in writing prior to the effective date of such succession and agree to perform this Agreement in the same manner and to the same extent that the Corporation would be required to perform if no succession had taken place.  Failure of the successor to so assume as provided herein shall constitute a breach of this Agreement and entitle Executive to the payments and benefits hereunder as if triggered by a termination of Executive by the Corporation other than for Cause on the date of such succession.

 

	Lawrence David Swift -- COCSA	SPAR Group, Inc.

 

-5-

 

 

 

	 	
			8. 

				
			Indemnity.

			

 

In any situation where under applicable law the Corporation has the power to indemnify, advance expenses to and defend Executive in respect of any judgments, fines, settlements, loss, cost or expense (including attorneys' fees) of any nature related to or arising out of Executive's activities as an agent, employee, officer or director of the Corporation or in any other capacity on behalf of or at the request of the Corporation, then the Corporation shall promptly on written request, fully indemnify Executive, advance expenses (including attorney's fees) to Executive and defend Executive to the fullest extent permitted by applicable law, including but not limited to making such findings and determinations and taking any and all such actions as the Corporation may, under applicable law, be permitted to have the discretion to take so as to effectuate such indemnification, advancement or defense.  Such agreement by the Corporation shall not be deemed to impair any other obligation of the Corporation respecting Executive's indemnification or defense otherwise arising out of this or any other agreement or promise of the Corporation under any statute.

 

	 	
			9. 

				
			Notices.

			

 

All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed, in either case, to the Corporation's headquarters or to such other address as either party shall have furnished to the other in writing in accordance herewith.  Notices and communications shall be effective when actually received by the addressee.

 

	 	
			10. 

				
			Arbitration.

			

 

Any dispute about the validity, interpretation, effect or alleged violation of this Agreement (an "arbitrable dispute") must be submitted to confidential arbitration in Auburn Hills, Michigan.  Arbitration shall take place before an experienced employment arbitrator licensed to practice law in such state and selected in accordance with the Model Employment Arbitration Procedures of the American Arbitration Association.  Arbitration shall be the exclusive remedy of any arbitrable dispute.  The Corporation shall bear all fees, costs and expenses of arbitration, including its own, those of the arbitrator and those of Executive unless the arbitrator provides otherwise with respect to the fees, costs and expenses of Executive; in no event shall Executive be chargeable with the fees, costs and expenses of the Corporation or the arbitrator.  Should any party to this Agreement pursue any arbitrable dispute by any method other than arbitration, the other party shall be entitled to recover from the party initiating the use of such method all damages, costs, expenses and attorneys' fees incurred as a result of the use of such method.  Notwithstanding anything herein to the contrary, nothing in this Agreement shall purport to waive or in any way limit the right of any party to seek to enforce any judgment or decision on an arbitrable dispute in a court of competent jurisdiction.  Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts in Oakland County, Michigan, for the purposes of any proceeding arising out of this Agreement.

 

	 	
			11. 

				
			Governing Law.

			

 

This Agreement will be governed by and construed in accordance with the laws of the State of Michigan without regard to conflicts of law principles of Michigan that would defer to the law of any other jurisdiction.

 

	 	
			12. 

				
			Entire Agreement.

			

 

This Agreement (including Annex A hereto) are an integration of the parties' agreement and no agreement or representatives, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not set forth expressly in this Agreement. For clarity, this Agreement amends, restates, replaces and supersedes his Existing CICSA, and his Existing CICSA shall have no further force or effect. However, this Agreement does not replace, amend or affect his Existing Confidentiality Agreement, which shall continue in full force and effect in accordance with its terms.

 

	Lawrence David Swift -- COCSA	SPAR Group, Inc.

 

-6-

 

 

 

	 	
			13. 

				
			Severability.

			

 

The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

 

	 	
			14. 

				
			Counterparts; Amendment and Waivers.

			

 

This Agreement or any supplement, modification or amendment to or restatement of this Agreement may have been executed in two or more counterpart copies of the entire document or of signature pages to the document, each of which may have been executed by one or more of the signatories hereto or thereto and delivered by mail, courier, telecopy or other electronic or physical means, but all of which, when taken together, shall constitute a single agreement binding upon all of its signatories. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by Executive and such member of the Board as may be specifically authorized by the Board.  No waiver by either party hereto at any time of any breach by the other party hereto of, or in 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.

 

In Witness Whereof, the Parties hereto have executed and delivered this Agreement intending to be legally bound by it and for it to be effective as of the Effective Date.

 

 

 

	
			EMPLOYER:

				 	
			EXECUTIVE:

			
	
			SPAR Group, Inc.

				 	 
	 	 	 	 
	By:	
			         

				 	 
	 	
			Mike Matacunas, Chief Executive Officer

				 	
			Lawrence David Swift

			
	 	 	 	 
	 	
			Employer's Current Address:

				 	
			Executive's Current Address:

			
	 	
			1910 Opdyke Court, Auburn Hills, MI 48326

				 	
			111 Picadilly Dr., Bldg #4

			
	 	
			ATTN: Human Resources Department

				 	
			Morganville, NJ 07751

			
	 	
			 Signed as of: August 10, 2022

				 	
			Signed as of: August 10, 2022

			

 

	Lawrence David Swift -- COCSA	SPAR Group, Inc.

 

-7-

 

 

 

Annex A

 

 

Certain Tax Provisions

 

ANNEX A TO CHANGE OF CONTROL SEVERANCE AGREEMENT BETWEEN SPAR GROUP, INC., AND Ron Lutz

 

This Annex A is incorporated into, and is part of, the Change of Control Severance Agreement entered into between SPAR Group, Inc. and Ron Lutz (the "Agreement"). Capitalized terms used and not otherwise defined in this Annex shall have the meanings respectively assigned to them in the Agreement. The Agreement is subject to and shall be governed by the following:

 

	
			1.

				
			Tax Gross Up Provisions.

			

 

(a)         4999 Gross-Up. If any payment made, or benefit provided, to or on behalf of Executive pursuant to this Agreement ("Payments") results in Executive being subject to the excise tax imposed by Section 4999 of the Internal Revenue Code (or any successor or similar provision) ("4999 Excise Tax"), then the Corporation shall pay the Executive an additional amount (the "4999 Gross-Up Payment") such that the net amount retained by the Executive after deduction of the 4999 Excise Tax and any interest charges or penalties in respect of the imposition of such excise tax (but not any federal, state or local income tax, or employment tax) on the Payments, and any federal, state and local income tax, employment tax, and excise tax upon the payment provided for by this Section 1(a), shall be equal to the Payments as if the 4999 Excise Tax was not applicable to the Payments. The Corporation shall pay the 4999 Gross-Up Payment, if any, as soon as practicable after such 4999 Gross-Up Payment can be determined, if any, but no earlier than the first day of the seventh month following the month in which Executive incurs a separation from service with the Corporation and no later than the end of the calendar year following the year in which the Executive remits the Section 4999 Excise Tax to the Internal Revenue Service

 

(b)         409A Gross-Up. If any Payments (or any acceleration of any Payments) are determined to be subject to the interest charges and taxes imposed by Section 409A(a)(1)(B) of the Code, or any interest charges or penalties with respect to such taxes (such taxes, together with any such interest charges and penalties, are collectively referred to as the "Section 409A Tax"), then the Corporation shall pay Executive an additional amount (the "409A Gross-Up Payment") such that the net amount retained by the Executive after deduction of the 409A Tax and any interest charges or penalties in respect of the imposition of such excise tax (but not any federal, state or local income tax, or employment tax) on the Payments, and any federal, state and local income tax, employment tax, and excise tax upon the payment provided for by this Section 1(b), shall be equal to the Payments as if the 409A Tax was not applicable to the Payments. The Corporation shall pay the 409A Gross-Up Payment, if any, as soon as practicable after such 409A Gross-Up Payment can be determined, if any, but no earlier than the first day of the seventh month following the month in which Executive incurs a separation from service with the Corporation, and no later than the end of the calendar year following the year in which the Executive remits the Section 409A Tax to the Internal Revenue Service; further provided Executive must provide the Corporation with a written request for reimbursement thereof (accompanied by proof of taxes owed or paid) in order to receive the 409A Gross-Up Payment.

 

(c)         For purposes of determining the amount of the 4999 Gross-Up Payment and the 409A Gross-Up Payment pursuant to this Section 1 (and Section 5 in the Agreement), if any, the Executive shall be deemed to pay federal income tax and employment taxes at the highest marginal rate of federal income and employment taxation in the calendar year in which the applicable gross-up payment is to be made and state and local income taxes at the highest marginal rate of taxation in the state and locality of the Executive's domicile for income tax purposes on the date the applicable gross-up payment is made, net of the maximum reduction in federal income taxes that may be obtained from the deduction of such state and local taxes, if any. All determinations under this Section 1 shall be made by the Corporation's certified public accountants.

 

	
			2.

				
			Code Section 409A and Payment Timing.

			

 

Notwithstanding anything to the contrary herein or in the Agreement, the following additional rules shall apply to payments under the Agreement:

 

(a)         Any payments made: (i) within 2-1⁄2 months of the end of the Corporation's taxable year containing the date of Executive's involuntary (or Good Reason) termination; or (ii) within 2-1⁄2 months of Executive's taxable year containing the date of involuntary (or Good Reason) termination shall be exempt from Code Section 409A. Payments subject to subparagraphs (i) or (ii) shall be treated and shall be deemed to be an entitlement to a separate payment within the meaning of Code Section 409A and the regulations thereunder.

 

	Lawrence David Swift -- COCSA	SPAR Group, Inc.

 

-8-

 

 

(b)         To the extent payments under the Agreement are not exempt from Code Section 409A under subparagraph (a) above, any payments made in the first six months following Executive's termination of employment that are equal to or less than the lesser of the amounts described in Treasury Regulation Section 1.409A-1(b)(9)(iii)(A)(1) and (2) shall be exempt from Code Section 409A. Payments subject to this subparagraph (b) shall be treated and shall be deemed to be an entitlement to a separate payment within the meaning of Code Section 409A and the regulations thereunder.

 

(c)         To the extent payments under this Agreement are not exempt from Code Section 409A under subparagraphs (b) or (c) above, any payments made equal to or less than the applicable dollar amount under Code Section 402(g)(1)(B) for the year of severance from employment shall be exempt from Code Section 409A in accordance with Treasury Regulation Section 1.409A-1(b)(9)(v)(D). Payments subject to this subparagraph (c) shall be treated and shall be deemed to be an entitlement to a separate payment within the meaning of Code Section 409A of the Code and the regulations thereunder.

 

(d)         To the extent payments under this Agreement are not exempt from Code Section 409A under subparagraphs (a), (b), or (c) above, and to the extent Executive is a "specified employee" (as defined below), amounts payable to Executive due to his severance from employment (as defined below) shall begin no sooner than six months after Executive's severance from employment (other than for Death); provided, however, that any payments not made during the six-month period described in this subsection due to the six-month delay period required under Treasury Regulation Section 1.409A-3(i)(2) shall be made in a single lump sum as soon as administratively practicable after the expiration of such six-month period, and the balance of all other payments required under this Agreement shall be made as otherwise scheduled in this Agreement.

 

(e)         For purposes of this Annex A, Section 2, and the Agreement, any reference to severance of employment or termination of employment shall mean a "separation from service" as defined in Treasury Regulation Section 1.409A-1(h). For purposes of the Agreement and this Annex, the term "specified employee" shall have the meaning set forth in Treasury Regulation Section 1.409A-1(i).

 

	Lawrence David Swift -- COCSA	SPAR Group, Inc.

 

-9-Exhibit 10.1

 

Exchange Agreement

 

August 15, 2022

 

Accelerate
Diagnostics, Inc.

 

2.50% Convertible
Senior Notes due 2023

 

The undersigned investor (the “Exchanging
Investor”), hereby agrees to exchange, with Accelerate Diagnostics, Inc., a Delaware corporation (the “Company”),
certain 2.50% Convertible Senior Notes due 2023, CUSIP 00430HAB8 (the “Notes”) for the Exchange Consideration (as
defined below) pursuant to this exchange agreement (this “Agreement” or the “Exchange Agreement”).
The Exchanging Investor understands that the exchange (the “Exchange”) is being made without registration of the offer
or sale of the New Note or the Warrant (each as defined below) under the Securities Act of 1933, as amended (the “Securities
Act”), or any securities laws of any state of the United States or of any other jurisdiction in a private placement pursuant
to the exemption from registration provided by Section 3(a)(9) or Section 4(a)(2) of the Securities Act and that the Exchanging Investor
participating in the Exchange is required to be an “accredited investor” within the meaning of Rule 501 of Regulation D under
the Securities Act. Capitalized terms used but not defined in this Agreement have the respective meanings set forth in the Indenture,
dated as of March 27, 2018 (the “Indenture”), between the Company and U.S. Bank National Association, as trustee (the
 “Trustee”).

 

1.               
Exchange. On the basis of the representations, warranties and agreements herein contained and subject to the terms and
conditions herein set forth, the Exchanging Investor hereby agrees to exchange an aggregate principal amount of the Notes set forth on
Exhibit A hereto (the “Exchanged Notes”) for:

 

(a)               
a new secured promissory note (the “New Note”) in an aggregate principal amount of $34,933,500; and

 

(b)               
a warrant exercisable for up to 2,471,710 shares of the common stock of the Company (the “Warrant,” and together
with the New Note, the “Exchange Consideration”).

 

The Exchanging Investor agrees that
he shall hold the Exchanged Notes until the Closing (as defined below). In consideration for the performance of its obligations hereunder
(including as described in the immediately preceding sentence), the Company agrees to deliver the Exchange Consideration on the Closing
Date (as defined below) to the Exchanging Investor in exchange for its Exchanged Notes.

 

The Exchange shall occur in accordance
with the procedures set forth in Exhibit B.2 hereto (the “Exchange Procedures”); provided that each
of the Company and the Exchanging Investor acknowledges and agrees that no delivery of Exchange Consideration will be made until the
Exchanged Notes have been properly submitted for exchange in accordance with the Exchange Procedures and no accrued interest will be
payable by reason of any delay in making such delivery.

 

The closing of the
Exchange (the “Closing”) shall take place remotely via the exchange of documents and signatures at 10:00 a.m., New
York City time, on August 15, 2022 (the “Closing Date”), or at such other time and place as the Company and the Exchanging
Investor may mutually agree. On the Closing Date, subject to satisfaction of the conditions precedent specified herein and the prior
receipt by the Company from the Exchanging Investor of the Exchanged Notes, the Company shall deliver the Exchange Consideration in accordance
with the instructions specified by the Exchanging Investor in Exhibit B.1. All questions as to the form of all documents and the
validity and acceptance of the Exchanged Notes will be determined by the Company, in its sole discretion, which determination shall be
final and binding.

 

    1

     

    

 

Subject to the terms and conditions
of this Agreement, upon the Closing, the Exchanging Investor hereby (a) waives any and all other rights with respect to such Exchanged
Notes and (b) releases and discharges the Company from any and all claims he may now have, or may have in the future, arising out of,
or related to, such Exchanged Notes.

 

2.               
Representations and Warranties and Covenants of the Company. As of the date hereof and the Closing Date, the Company represents
and warrants to, and covenants with, the Exchanging Investor that:

 

(a)               
The Company and each of its subsidiaries are entities duly organized, validly existing and in good standing under the laws of
their respective jurisdictions of organization and have the requisite power and authority to own their properties and to carry on their
business as now being conducted, except in the case of the Company’s subsidiaries as would not reasonably be expected to have a
material adverse effect on the business, properties, assets, liabilities, operations (including results thereof), or financial condition
of the Company or its subsidiaries, taken as a whole. The Company and each of its subsidiaries is duly qualified as a foreign entity
to do business (where such concept exists) and is in good standing in every jurisdiction (where such concept exists) in which its ownership
of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to
be so qualified or be in good standing would not reasonably be expected to have a material adverse effect on the business, properties,
assets, liabilities, operations (including results thereof), or condition (financial or otherwise) of the Company or its subsidiaries,
taken as a whole. The Company has the power and authority to execute and deliver this Agreement, to perform its obligations hereunder,
and to consummate the Exchange contemplated hereby.

 

(b)               
This Agreement has been duly authorized, executed and delivered by the Company and constitutes a legal, valid and binding obligation
of the Company, enforceable against the Company in accordance with its terms, except that such enforcement may be subject to (A) bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium or other similar laws affecting or relating to enforcement of creditors’
rights generally and (B) general principles of equity, whether such enforceability is considered in a proceeding at law or in equity
(the “Enforceability Exceptions”).

 

(c)               
This Agreement and consummation of the Exchange will not violate, conflict with or result in a breach of or default under (i)
the charter or bylaws of the Company, (ii) any agreement or instrument to which the Company is a party or by which the Company or any
of its assets are bound, or (iii) assuming the truth and accuracy of the representations and warranties and compliance with the covenants
of the Exchanging Investor herein, any laws, regulations or governmental or judicial decrees, injunctions or orders applicable to the
Company and its subsidiaries, except in the case of clauses (ii) or (iii), where such violations, conflicts, breaches or defaults as
would not, individually or in the aggregate, materially impair the ability of the Company to consummate the transactions contemplated
by this Agreement. No consent, approval, order or authorization of, or registration, declaration or filing with any governmental entity
is required on the part of the Company or any of its subsidiaries in connection with the execution, delivery and performance by the Company
of this Agreement and the consummation by the Company of the Exchange, except as may be required under any state or federal securities
laws or that may be made or obtained after the Closing without penalty.

 

(d)                From
August 15, 2021 to the date of this Agreement, the Company has timely filed all reports, schedules, forms, proxy statements,
statements and other documents required to be filed by it with the Securities and Exchange Commission (the “SEC”)
pursuant to the reporting requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or
timely filed notifications of late filings for any of the foregoing (all of the foregoing filed prior to the date hereof and all
exhibits and appendices included therein and financial statements, notes and schedules thereto and documents incorporated by
reference therein being hereinafter referred to as the “SEC Documents”). As of their respective dates, the SEC
Documents complied in all material respects with the requirements of the Exchange Act and the rules and regulations of the SEC
promulgated thereunder applicable to the SEC Documents.

 

    2

     

    

 

(e)               
Without the prior written consent of the Exchanging Investor, the Company shall not disclose the name of the Exchanging Investor
in any filing or announcement, unless such disclosure is required by applicable law, rule, regulation or legal process based on advice
of counsel.

 

(f)                
The Company agrees that it shall, upon request, execute and deliver any additional documents deemed by the Trustee or transfer
agent to be reasonably necessary to complete the Exchange.

 

3.               
Representations and Warranties and Covenants of the Exchanging Investor. As of the date hereof and as of the Closing Date
(except as otherwise set forth below), the Exchanging Investor hereby represents and warrants to, and covenants with, the Company that:

 

(a)               
This Agreement constitutes the legal, valid and binding obligation of the Exchanging Investor, enforceable in accordance with
its terms, except that such enforcement may be subject to the Enforceability Exceptions.

 

(b)               
As of the date hereof and as of the Closing, the Exchanging Investor is the sole legal and beneficial owner of the Exchanged Notes
set forth on Exhibit A attached to this Agreement. When the Exchanged Notes are exchanged, the Company will acquire good, marketable
and unencumbered title thereto, free and clear of all liens, mortgages, pledges, security interests, restrictions, charges, encumbrances
or adverse claims, rights or proxies of any kind (“Liens”). The Exchanging Investor has not, nor prior to the Closing
will have, in whole or in part, other than pledges or security interests that the Exchanging Investor may have created in favor of a
prime broker under and in accordance with its prime brokerage agreement with such broker, (x) assigned, transferred, hypothecated, pledged,
exchanged, submitted for conversion pursuant to the Indenture or otherwise disposed of any of its Exchanged Notes (other than to the
Company pursuant hereto), or (y) given any person or entity any transfer order, power of attorney or other authority of any nature whatsoever
with respect to its Exchanged Notes.

 

(c)               
This Agreement and consummation of the Exchange will not violate, conflict with or result in a breach of or default under (i)
any agreement or instrument to which the Exchanging Investor is a party or by which the Exchanging Investor or his assets are bound,
or (ii) any laws, regulations or governmental or judicial decrees, injunctions or orders applicable to the Company and its subsidiaries.
No consent, approval, order or authorization of, or registration, declaration or filing with any governmental entity is required on the
part of the Exchanging Investor in connection with the execution, delivery and performance by the Exchanging Investor of this Agreement
and the consummation by the Exchanging Investor of the Exchange.

 

(d)               
The Exchanging Investor will comply with all applicable laws and regulations in effect necessary for the Exchanging Investor to
consummate the transactions contemplated hereby and obtain any consent, approval or permission required for the transactions contemplated
hereby and the laws and regulations of any jurisdiction to which the Exchanging Investor is subject, and the Company shall have no responsibility
therefor.

 

    3

     

    

 

(e)               
 The Exchanging Investor acknowledges that no person has been authorized to give any information or to make any representation
or warranty concerning the Company or the Exchange other than the information set forth herein in connection with the Exchanging Investor’s
examination of the Company and the terms of the Exchange, the New Note and the Warrant, and the Company does not take, and the Company
cannot provide any assurance as to the reliability of, any other information that others may provide to the Exchanging Investor.

 

(f)                
The Exchanging Investor has such knowledge, skill and experience in business, financial and investment matters so that he is capable
of evaluating the merits and risks with respect to the Exchange and an investment in the New Note and the Warrant. With the assistance
of the Exchanging Investor’s own professional advisors, to the extent that the Exchanging Investor has deemed appropriate, the
Exchanging Investor has made his own legal, tax, accounting and financial evaluation of the merits and risks of an investment in the
Exchange Consideration and the consequences of the Exchange and this Agreement and the Exchanging Investor has made his own independent
decision that the investment in the Exchange Consideration is suitable and appropriate for the Exchanging Investor. The Exchanging Investor
has considered the suitability of the Exchange Consideration as an investment in light of the Exchanging Investor’s circumstances
and financial condition and is able to bear the risks associated with an investment in the Exchange Consideration.

 

(g)               
The Exchanging Investor confirms that he is not relying on any communication (written or oral) of the Company or any of its affiliates
or representatives as investment advice or as a recommendation to acquire the Exchange Consideration in the Exchange. It is understood
that information provided by the Company or any of its affiliates and representatives shall not be considered investment advice or a
recommendation to participate in the Exchange, and that none of the Company nor any of its affiliates or representatives is acting or
has acted as an advisor to the Exchanging Investor in deciding to participate in the Exchange.

 

(h)               
The Exchanging Investor confirms that the Company has not (i) given the Exchanging Investor any guarantee, representation or warranty
as to the potential success, return, effect or benefit (either legal, regulatory, tax, financial, accounting or otherwise) of an investment
in the Exchange Consideration or (ii) made any representation or warranty to the Exchanging Investor regarding the legality of an investment
in the New Note and the Warrant under applicable legal investment or similar laws or regulations. The Exchanging Investor confirms that
he is not relying and has not relied, upon any statement, advice (whether accounting, tax, financial legal or other), representation
or warranty by the Company or any of its affiliates or representatives, except for the representations and warranties made by the Company
in this Agreement, and that the Exchanging Investor has made his own independent decision that the investment in the New Note and the
Warrant is suitable and appropriate for the Exchanging Investor.

 

(i)                
The Exchanging Investor is familiar with the business and financial condition and operations of the Company and the Exchanging
Investor has had the opportunity to conduct his own investigation of the Company, the New Note and the Warrant. The Exchanging Investor
has had access to the Securities and Exchange Commission filings (the “SEC Filings”) of the Company and such other
information concerning the Company and the Exchange Consideration as he deems necessary to enable him to make an informed investment
decision concerning the Exchange. The Exchanging Investor has been offered the opportunity to ask such questions of the Company and its
representatives and received answers thereto, as he deems necessary to enable him to make an informed investment decision concerning
the Exchange.

 

    4

     

    

 

(j)                
 The Exchanging Investor is an “accredited investor” as defined in Rule 501 under the Securities Act. The Exchanging
Investor agrees to furnish any additional information regarding the Exchanging Investor reasonably requested by the Company or any of
its affiliates to assure compliance with applicable U.S. federal and state securities laws in connection with the Exchange.

 

(k)               
The Exchanging Investor is acquiring the New Note and the Warrant solely for his own beneficial account, for investment purposes,
and not with a view to, or for resale in connection with, any distribution of the New Note or the shares issuable upon exercise of the
Warrant. The Exchanging Investor understands that the issuance of the New Note and the Warrant have not been registered under the Securities
Act or any state securities laws and are being issued without registration under the Securities Act pursuant to Section 3(a)(9) or Section
4(a)(2) of the Securities Act, which exemption depends in part upon the investment intent of the Exchanging Investor and the accuracy
of the other representations and warranties made by the Exchanging Investor in this Agreement. The Exchanging Investor understands that
the Company is relying upon the representations, warranties and agreements contained in this Agreement (and any supplemental information
provided to the Company by the Exchanging Investor) for the purpose of determining whether this transaction meets the requirements for
such exemption(s) and to issue the Shares without legends as set forth herein.

 

(l)                
The Exchanging Investor acknowledges that the terms of the Exchange have been mutually negotiated between the Exchanging Investor
and the Company. The Exchanging Investor was given a meaningful opportunity to negotiate the terms of the Exchange.

 

(m)             
The Exchanging Investor acknowledges that he had a sufficient amount of time to consider whether to participate in the Exchange
and that the Company has not placed any pressure on the Exchanging Investor to respond to the opportunity to participate in the Exchange.
The Exchanging Investor acknowledges that he has not become aware of the Exchange through any form of general solicitation or advertising
within the meaning of Rule 502 under the Securities Act or otherwise through a “public offering” under Section 4(a)(2) of
the Securities Act.

 

(n)               
The Exchanging Investor will, upon request, execute and deliver any additional documents deemed by the Company and the Trustee
or the transfer agent to be reasonably necessary to complete the transactions contemplated by this Agreement.

 

(o)               
No later than one (1) business day after the date hereof, the Exchanging Investor agrees to deliver to the Company settlement
instructions substantially in the form of Exhibit B.1 attached to this Agreement.

 

(p)               
The Exchanging Investor understands that no federal, state, local or foreign agency has passed upon the merits or risks of an
investment in the New Note and the Warrant or made any finding or determination concerning the fairness or advisability of this investment.

 

(q)               
The Exchanging Investor has been in material compliance with the applicable rules and regulations administered or conducted by
the U.S. Department of Treasury Office of Foreign Assets Control (“OFAC”), the applicable rules and regulations of
the Foreign Corrupt Practices Act (“FCPA”) and the applicable Anti-Money Laundering (“AML”) rules
in the Bank Secrecy Act. The Exchange Investor is not named on the lists of denied parties or blocked persons administered by OFAC, resident
in or organized under the laws of a country that is the subject of comprehensive economic sanctions and embargoes administered or conducted
by OFAC (“Sanctions”), is not otherwise the subject of Sanctions and has not been found to be in violation or under
suspicion of violating OFAC, FCPA or AML rules and regulations.

 

    5

     

    

 

(r)                
 The Exchanging Investor acknowledges that the Company may issue appropriate stop-transfer instructions to its transfer agent,
if any, and may make appropriate notations to the same effect in its books and records to ensure compliance with the provisions of this
Section 3.

 

(s)               
The Exchanging Investor is a resident of the jurisdiction set forth on Exhibit B.1 attached to this Agreement.

 

(t)                
The Exchanging Investor understands that the Company and others will rely upon the truth and accuracy of the foregoing representations,
warranties and covenants and agrees that if any of the representations and warranties deemed to have been made by the Exchanging Investor
are no longer accurate, the Exchanging Investor shall promptly notify the Company prior to the Closing. The Exchanging Investor understands
that, unless the Exchanging Investor notifies the Company in writing to the contrary before the Closing, each of the Exchanging Investor’s
representations and warranties contained in this Agreement will be deemed to have been reaffirmed and confirmed as of the Closing.

 

4.               
Conditions to Obligations of the Exchanging Investor and the Company. The obligations of the Exchanging Investor and of
the Company under this Agreement are subject to the satisfaction at or prior to the Closing of the following conditions precedent: (a)
the representations and warranties of the Company contained in Section 2 hereof (with respect to the Exchanging Investor) and
of the Exchanging Investor contained in Section 3 hereof (with respect to the Company) shall be true and correct as of the Closing
in all respects with the same effect as though such representations and warranties had been made as of the Closing, (b) no provision
of any applicable law or any judgment, ruling, order, writ, injunction, award or decree of any governmental authority shall be in effect
prohibiting or making illegal the consummation of the transactions contemplated by this Agreement and (c) prior to or contemporaneously
with the Closing, the Company shall have delivered the New Note and the Warrant to the Exchanging Investor.

 

5.               
Waiver, Amendment. Neither this Agreement nor any provisions hereof or thereof shall be modified, changed or discharged,
except by an instrument in writing, signed by the Company and the Exchanging Investor.

 

6.               
Assignability. Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof
shall be assignable by either the Company or the Exchanging Investor without the prior written consent of the other.

 

7.               
Waiver of Jury Trial. EACH OF THE COMPANY AND THE EXCHANGING INVESTOR HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL
BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING OUT OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

 

8.               
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York,
without giving effect to such state’s rules concerning conflicts of laws that might provide for any other choice of law.

 

9.                Submission
to Jurisdiction. Each of the Company and the Exchanging Investor: (a) agrees that any legal suit, action or proceeding arising
out of or relating to this Agreement or the transactions contemplated hereby shall be instituted exclusively in the courts of the
State of New York located in the City and County of New York or in the United States District Court for the Southern District of New
York; (b) waives any objection that such party may now or hereafter have to the venue of any such suit, action or proceeding; and
(c) irrevocably consents to the jurisdiction of the aforesaid courts in any such suit, action or proceeding. Each of the Company and
the Exchanging Investor agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by law.

 

    6

     

    

 

10.            
Venue. Each of the Company and the Exchanging Investor irrevocably and unconditionally waives, to the fullest extent such
party may legally and effectively do so, any objection which such party may now or hereafter have to the laying of venue of any suit,
action or proceeding arising out of or relating to this Agreement in any court referred to in Section 9. Each of the Company and
the Exchanging Investor irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance
of such action or proceeding in any such court.

 

11.            
Service of Process. Each of the Company and the Exchanging Investor irrevocably consents to service of process in the manner
provided for notices in Section 12. Nothing in this Agreement will affect the right of the Company or the Exchanging Investor
to serve process in any other manner permitted by law.

 

12.            
Notices. All notices and other communications to the Company provided for herein shall be in writing and shall be deemed
to have been duly given if delivered personally, sent by prepaid overnight courier (providing written proof of delivery) or sent by confirmed
electronic mail and will be deemed given on the date so delivered (or, if such day is not a business day, on the first subsequent
business day) to the following addresses, or in the case of the Exchanging Investor, the address provided on Exhibit B.1 attached
to this Agreement (or such other address as the Company or the Exchanging Investor shall have specified by notice in writing to the other):

 

	If
    to the Company:	Michael Bridge

    Senior Vice
    President and General Counsel

    Accelerate
    Diagnostic, Inc.

    3950 S. Country
    Club Road, Suite 470

    Tucson, AZ

    Email: mbridge@axdx.com

     

	with a copy
    to (which shall not constitute notice):

     

     
	Michael Tollini

    Cooley LLP

    1299 Pennsylvania
    Avenue, NW

    Washington,
    DC 20004-2400

    Email: mtollini@cooley.com

     

13.            
Binding Effect. The provisions of this Agreement shall be binding upon and accrue to the benefit of the Company and the
Exchanging Investor and their respective heirs, legal representatives, successors and assigns. This Agreement constitutes the entire
agreement between the Company and the Exchanging Investor with respect to the subject matters hereof. This Agreement may be executed
by one or more of the parties hereto in any number of separate counterparts (including by electronic means, including email or otherwise),
and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed
signature page of this Agreement by electronic transmission (e.g., “pdf” or “tif” format) shall be effective
as delivery of a manually executed counterpart hereof.

 

14.             Notification
of Changes. After the date of this Agreement, each of the Company and the Exchanging Investor hereby covenants and agrees to
notify the other upon the occurrence of any event prior to the Closing of the Exchange pursuant to this Agreement that would cause
any representation, warranty or covenant of the Company or the Exchanging Investor, as the case may be, contained in this Agreement
to be false or incorrect.

 

    7

     

    

 

15.            
Severability. If any term or provision of this Agreement (in whole or in part) is invalid, illegal or unenforceable in
any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate
or render unenforceable such term or provision in any other jurisdiction.

 

16.            
Survival. The representations and warranties of the Company and the Exchanging Investor contained in this Agreement or
made by or on behalf of the Exchanging Investor pursuant to this Agreement shall survive the consummation of the transactions contemplated
hereby.

 

17.            
Taxation. The Exchanging Investor acknowledges that either (i) the Company must be provided with a correct taxpayer identification
number (“TIN,” generally a person’s social security or federal employer identification number) and certain other
information on a properly completed and executed Internal Revenue Service (“IRS”) Form W-9, or (ii) another basis
for exemption from backup withholding must be established. See Exhibit C for certain additional information. The Company and its
agents shall be entitled to deduct and withhold from any consideration payable pursuant to this Agreement such amounts as are required
to be deducted or withheld under applicable law. To the extent any such amounts are withheld and remitted to the appropriate taxing authority,
such amounts shall be treated for all purposes as having been paid to the Exchanging Investor.

 

18.            
Section and Other Headings. The section and other headings contained in Agreement are for reference purposes only and shall
not affect the meaning or interpretation of this Agreement.

 

[SIGNATURE PAGE
FOLLOWS]

 

 

    8

     

    

 

	 	Very truly yours,  
	 	 
	 	ACCELERATE DIAGNOSTICS, INC. 
	 	 
	 	By 	/s/ Jack Phillips
	 	 	Name: 	Jack Phillips
	 	 	Title: 	President and Chief Executive Officer 

 

    9

     

    

 

Please confirm that
the foregoing correctly sets forth the agreement between the Company and the Exchanging Investor by signing in the space provided below
for that purpose.

 

	 	AGREED AND ACCEPTED:
	 	 
	 	Exchanging Investor:
	 	 
	 	/s/ Jack W. Schuler
	 	Jack W. Schuler, Trustee of the JACK W. SCHULER LIVING TRUST  

 

    10

     

    

 

EXHIBIT
A 

 

Exchanging
Investor Information

 

	Exchanging
    Investor Name, 

    Address, Email and Phone

    Number	Exchanged
    Notes 
	
    Jack W. Schuler Living Trust

    100 North Field Drive, Suite 360

    Lake Forest, IL 60045

    Attn: Jack W. Schuler, Trustee

    Email: jack@schulerprogram.org

    Phone: 224-880-1211
	$49,905,000

 

    A-1

     

    

 

EXHIBIT B.1 

 

	Exchanging Investor:
	Jack W. Schuler Living Trust	 
	 
	Exchanging Investor Address:
	100 North Field Drive, Suite 360	 
	Lake Forest, IL 60045	 
	 
	Telephone: 224-880-1211	 
	 
	Country of Residence:
	United States	 
	 
	Taxpayer Identification Number:
	 	 
	 
	Account for Notes:

 

	DTC Participant Number:	 	 
	DTC Participant Name:	 	 
	DTC Participant Phone Number:	 	 
	DTC Participant Contact Email:	 	 
	Account # at Bank/Broker:	 	 

 

    B.1-1

     

    

 

Exchange
Procedures

 

NOTICE
TO INVESTOR

 

These are the Exchange
Procedures for the settlement of the exchange of 2.50% Convertible Senior Notes due 2023, CUSIP 00430HAB8 (the “Exchanged Notes”)
of Accelerate Diagnostic, Inc., a Delaware corporation (the “Company”), for the Exchange Consideration (as defined
in and pursuant to the Exchange Agreement between you and the Company) to be delivered to you, which is expected to occur on or about
August 15, 2022. To ensure timely settlement for the Exchange Consideration, please follow the instructions as set forth below.

 

These instructions
supersede any prior instructions you received. Your failure to comply with these instructions may delay your receipt of the Exchange
Consideration.

 

If you have any questions,
please contact Michael Bridge of the Company at 480-330-3656.

 

To deliver Exchanged
Notes:

 

You must direct the eligible DTC participant
through which you hold a beneficial interest in the Notes to post no later than 9:00 a.m., New York City time, on August 15, 2022
a one-sided withdrawal request through DTC via DWAC for the aggregate principal amount of Exchanged Notes set forth on Exhibit
A of the Agreement to be exchanged for Exchange Consideration.

 

To receive Exchange
Consideration:

 

To receive the Exchange Consideration:

 

You must provide overnight delivery
instructions for the New Note and the Warrant to the Company.

 

Closing:
On August 15, 2022, after the Company receives your Notes and your delivery instructions and a withdrawal request in respect of the
Exchanged Notes has been posted as specified above, and subject to the satisfaction of the conditions to Closing as set forth in the
Exchange Agreement, the Company will deliver the Exchange Consideration in respect of the Exchanged Notes in accordance with the delivery
instructions above.

 

    B.2-1

     

    

 

EXHIBIT C 

 

Under U.S. federal income tax law, a
holder who exchanges Notes for Exchange Consideration generally must provide such holder’s correct TIN on a properly completed
and executed IRS Form W-9 (available from the Company or at www.irs.gov/pub/irs-pdf/fw9.pdf) or otherwise establish a basis for
exemption from backup withholding. A TIN is generally an individual holder’s social security number or a holder’s employer
identification number. If the correct TIN is not provided, the holder may be subject to a $50 penalty imposed under Section 6723
of the Code. In addition, certain payments made to holders may be subject to U.S. backup withholding (currently set at 24% of the payment).
If a holder is required to provide a TIN but does not have a TIN, the holder should consult its tax advisor regarding how to obtain a
TIN. Certain holders (including corporations and non-U.S. holders) are not subject to these backup withholding and reporting requirements.

 

A non-U.S. holder (i) will be subject
to 30% U.S. federal withholding unless such holder establishes an exemption from, or a reduced rate of, such withholding, and (ii) must
establish its status as an exempt recipient from backup withholding and can do so by submitting a properly completed IRS Form W-8BEN,
IRS Form W-8BEN-E, IRS Form W-8IMY (and all required attachments), or other applicable IRS Form W-8 (available from the Company or at
www.irs.gov), signed, under penalties of perjury, attesting to such holder’s exempt foreign status. This form also may establish
an exemption from withholding under Section 1471 through 1474 of the Code.

 

U.S. backup withholding is not an additional
tax. Rather, the U.S. federal income tax liability of persons subject to backup withholding will be reduced by the amount of tax withheld.
If withholding results in an overpayment of taxes, a refund may be obtained provided that the required information is timely furnished
to the IRS.  The Exchanging Investor is urged to consult his tax advisor regarding how to complete the appropriate forms and to
determine whether he is exempt from backup withholding or other withholding taxes.

 

    C-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00347-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00347-of-00352.parquet"}]]