Document:

Exhibit 10.1

 

THIS NOTE HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS.  NOTWITHSTANDING THE FOREGOING, THIS NOTE MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES. 

 

	
$2,000,000.00

	
Date: October 28, 2022

CLEARONE, INC.

 

PROMISSORY NOTE

 FOR VALUE RECEIVED, CLEARONE, INC., a Delaware corporation (the “Company”), hereby unconditionally promises to pay to the order of Edward D. Bagley or his registered assigns (the “Holder”), the principal sum of Two Million Dollars $(2,000,000.00), on or before October 28, 2023 (the “Maturity Date”), and to pay interest to the Holder on the principal amount of this Note in accordance with the provisions hereof.  In addition, the Company shall pay to the order of the Holder interest on any principal, interest or other amount payable hereunder that is not paid in full when due (whether at the time of any stated interest or principal payment date, at maturity or by prepayment, acceleration or declaration or otherwise) for the period from and including the due date of such payment to but excluding the date the same is paid in full, at a rate per annum equal to five percent (5%) above the Interest Rate (as defined herein)(but in No event in excess of the maximum rate permitted under applicable law) (the “Default Rate”).

Interest payable under this Note shall be computed on the basis of a year of 360 days and actual days elapsed (including the first day but excluding the last day) occurring in the period for which interest is payable.

Payments of principal and interest shall be made in lawful money of the United States of America to the Holder in accordance with Section 7 or by wire transfer to such account specified from time to time by the Holder hereof for such purpose as provided in Section 7.

	1

1.                   Definitions.  In addition to the terms defined elsewhere in this Note, the following terms have the meanings indicated:

“Applicable Law” means all laws, rules and regulations applicable to the person, conduct, transaction, covenant, document or contract in question, including all applicable common law and equitable principles, all provisions of all applicable state, federal and foreign constitutions, statutes, rules, regulations, treaties, directives and orders of any Governmental Authority, and all orders, judgments and decrees of all courts and arbitrators.

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks in New York or Utah are authorized or required by law or executive order to close.

“Change of Control” means the occurrence of any of the following:

(a)     The acquisition by any person or any group of persons (other than by the Holder or any of the Holder’s affiliates) of record or beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 25% or more of (i) the capital stock of the Company (as determined on a fully-diluted basis) or (ii) the combined voting power of the then-outstanding voting securities of the Company (the “Outstanding Company Voting Securities”);

(b)     Consummation by the Company or any of its subsidiaries of a merger, consolidation, combination, reorganization, or sale of capital stock, or an exchange of the capital stock of the Company for the capital stock of any other person or persons whether in one or a series of related transactions (a “Business Combination”), in each case, unless, following such Business Combination, (i) all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 80% of the then outstanding shares of voting capital stock of the purchasing or surviving entity in such Business Combination, in substantially the same proportions as its ownership immediately prior to such Business Combination, of the Outstanding Company Voting Securities and (ii) at least a majority of the members of the board of directors (or equivalent governing body) of the purchasing or surviving entity in such Business Combination were members of the Company’s or such subsidiary’s board of directors (or equivalent governing body) at the time of the execution of the initial agreement, or of the action of the Company’s or such subsidiary’s board of directors (or equivalent governing body), providing for such Business Combination;

(c)     A sale, assignment, lease, conveyance, exchange, transfer, sale-leaseback or other disposition of more than 50% of the assets of the Company, whether in one or a series of related transactions (excluding ordinary course inventory sales, financing arrangements associated with inventory or receivables, and any other dispositions that would not result in a Material Adverse Effect);

	2

(d)     Approval by the board of directors (or equivalent governing body) of the Company of: 

(i)     a liquidation or dissolution of the Company;

(ii)     the sale or disposition of all or substantially all of the assets of the Company;

(iii)     the merger of consolidation of the Company with or into another person (excluding mergers for the purpose of reorganizations or changing the corporate domicile of the Company that do not result in a change in the Outstanding Company Voting Securities in the surviving entity as compared to the Company prior to effecting such transaction); or

(iv)     The exchange of the capital stock of the Company for the capital stock of any other person or persons. or

 (e)     The occurrence of a “change of control” and/or “change of control event” (or any comparable term) as defined in the Company’s Charter Documents.

 “Charter Documents” means the articles or certificate of incorporation or formation (as applicable), the bylaws or operating or limited liability company agreement (as applicable), and other similar organizational and governing documents of the Company, as amended, restated, supplemented or otherwise modified from time to time.

“Event of Default” has the meaning set forth in Section 6.

“Governmental Authority” means the government of any nation, state, city, locality or other political subdivision of any thereof, any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, regulation or compliance, including, without limitation, any federal, state or local public utility commission, and any corporation or other entity owned or controlled, through stock or capital ownership or otherwise, by any of the foregoing.

“Interest Rate” means a fixed annual rate of twelve percent (12.0%).

“Material Adverse Effect” means individually or in the aggregate (a) a material adverse condition, event, occurrence or development related to, or material adverse change or effect on, the assets, business, properties, liabilities, results of operations, cash flows or financial condition of the Company, (b) a material adverse effect upon (i) the legality, validity, binding effect or enforceability against the Company of this Note, or (ii) the rights, remedies and benefits (taken as a whole) available to, or conferred upon, the Holder under this Note, or (c) a material adverse effect on the ability of the Company to perform its obligations under this Note.

	3

 “Original Issue Date” means October 28, 2022.

“Solvent” means, with respect to the Company that (a) the fair value of the Company’s assets and properties exceeds the fair value of the Company’s aggregate liabilities (including contingent and unliquidated liabilities), (b) after giving effect to the proceeds of the loan to the Company evidenced by this Note, the Company will not be left with unreasonably small capital, and (c) after giving effect to the proceeds of the loan evidenced by this Note, the Company is able to both service and pay its liabilities as they mature. In computing the amount of contingent or unliquidated liabilities at any time, such liabilities will be computed as the amount that, in light of all the facts and circumstances existing at such time, represents the amount that is likely to become an actual or matured liability.

2.                   Interest and Payment. 

(a)              The Company shall pay interest to the Holder on the principal amount of this Note at a fixed rate per annum equal to the Interest Rate, or $240,000.00.  Interest shall be payable monthly in arrears in cash on the last day of each month, except if such day is not a Business Day in which case such interest shall be payable on the next succeeding Business Day (each, an “Interest Payment Date”).  The first Interest Payment Date shall be November 30, 2022 and shall be pro-rated for the number of days elapsed from the Original Issue Date through November 30, 2022. 

(b)              The Company may prepay the principal amount of this Note and interest thereon in whole or in part at any time; provided, however, that the interest payable on this Note shall be paid as if the entire principal amount of the Note remained outstanding through the Maturity Date regardless of the date of any prepayments. 

3.                   Ranking and Covenants. This note shall be subordinate in right of payment, whether with respect to interest, damages or upon liquidation or dissolution or otherwise, to the series of notes issued by the Company pursuant to that certain note purchase agreement dated as of December 8, 2019 by and between the Company and the Holder.

4.                   Registration of Notes.  The Company shall register this Note upon records to be maintained by the Company for that purpose (the “Note Register”) in the name of each record holder thereof from time to time.  The Company may deem and treat the registered Holder of this Note as the absolute owner hereof for the purpose of any payment of interest or principal hereon, and for all other purposes, absent actual notice to the contrary.

	4

5.                   Registration of Transfers and Exchanges.  Subject to compliance with applicable federal and state securities laws, this Note and all rights hereunder are transferable in whole or in part upon the books of the Company by the Holder hereof; provided, however, that the transferee shall agree in writing to be bound by the terms and subject to the conditions of this Note.  The Company shall register the transfer of any portion of this Note in the Note Register upon surrender of this Note to the Company at its address for notice set forth herein.  Upon any such registration or transfer, a new Note, in substantially the form of this Note (any such new Note, a “New Note”), evidencing the portion of this Note so transferred shall be issued to the transferee and a New Note evidencing the remaining portion of this Note not so transferred, if any, shall be issued to the transferring Holder.  The acceptance of the New Note by the transferee thereof shall be deemed the acceptance by such transferee of all of the rights and obligations of a holder of a Note.  This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations, as requested by the Holder surrendering the same.  No service charge or other fee will be imposed in connection with any such registration of transfer or exchange.

6.                   Events of Default. An “Event of Default” shall occur hereunder upon:

(a)            Failure of the Company to pay the principal of this Note (or any installment thereof) as and when due (whether at a scheduled installment date or maturity, upon acceleration or otherwise), or failure of the Company to pay within three (3) Business Days after the same shall become due any interest upon this Note.   

(b)            The Company shall (i) file or consent to the entry of an order for relief with respect to it under any federal, state or foreign bankruptcy, insolvency, receivership, liquidation or similar law as now or hereafter in effect, (ii) make an assignment for the benefit of creditors, (iii) apply for, seek, consent to, or acquiesce in, the appointment of a receiver, custodian, trustee, examiner, administrator, liquidator or similar official for it or any substantial part of its properties, (iv) institute any proceeding seeking an order for relief under any federal, state or foreign bankruptcy, insolvency, receivership, administration, liquidation or similar law as now or hereafter in effect seeking to adjudicate it a bankrupt or insolvent, or seeking dissolution, winding up, liquidation, reorganization, arrangement, adjustment or composition of it or its debts under any such law relating to bankruptcy, insolvency or reorganization or relief of debtors, fail to file an answer or other pleading denying the material allegations of any such proceeding filed against it or file an answer admitting the material allegations of a petition filed against itself in any such proceeding, (v) dissolve, wind up or liquidate, (vi) take any corporate, organizational or similar action to authorize or effect any of the foregoing actions set forth in this Section 6(b), (vii) fail to contest in good faith any appointment or proceeding described in Section 6(b), (viii) not be Solvent, or (ix) admit in writing its inability to pay its debts generally as they become due.

(c)            Without the application, approval or consent of the Company, a receiver, trustee, examiner, liquidator, administrator, or similar official shall be appointed for the Company or any substantial part of its properties, or a proceeding described in Section 6(b) shall be instituted against the C and such appointment continues undischarged or such proceeding continues undismissed or unstayed for a period of sixty (60) consecutive days.

(d)            Any court, government, or Governmental Authority shall condemn, seize or otherwise appropriate, or take custody or control of, all or any material portion of the properties of the Company.

	5

(e)            The Company shall fail within 30 days to pay, bond or otherwise discharge one or more (i) judgments or orders for the payment of money aggregating in excess of $500,000 (or the equivalent thereof in currencies other than U.S. Dollars) in the aggregate, or (ii) nonmonetary judgments or orders which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, which judgment(s), in any such case, is/are not stayed on appeal or otherwise being appropriately contested in good faith.

(f)             The occurrence of a Change of Control.

(g)            The occurrence of a Material Adverse Effect.

(h)            The Company shall be enjoined, restrained, or in any way prevented by court order from continuing to conduct all or any material part of its business.

(i)              The Company or any member of the senior management thereof shall be indicted for, convicted of or found culpable of a felony under Applicable Law that would reasonably be expected to materially and adversely impair (A) the ability of the Company to operate its business, (B) the ability of the Company to make any payments of principal or Interest on this Note, or (C) any rights or remedies of the Holder under this Note.

(j)              Except as otherwise expressly permitted hereunder, the Company shall (i) take any action, or shall make a determination, whether or not yet formally approved by the Company’s management or board of directors (or equivalent governing body), to (A) suspend the operation of all or a material portion of its business in the ordinary course, (B) suspend the payment of any material obligations in the ordinary course, or (C) employ an agent or other third party to conduct a wind-down of any material portion of its business or (ii) be enjoined, restrained or in any way prevented by the order of any Governmental Authority from conducting any part of its business unless such order would not have a Material Adverse Effect.

(k)            Any arbitration, action, claim, suit, litigation or proceeding before any court or any Governmental Authority shall have been commenced or threatened by the Company against the Holder or any of its affiliates.

Notices.  Any and all notices or other communications or deliveries hereunder (including any Conversion Notice) shall be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this Section 7 prior to 5:00 p.m. (Salt Lake City time) on a Business Day, (ii) the next Business Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this Section 7 on a day that is not a Business Day or later than 5:00 p.m. (Salt Lake City time) on any Business Day, (iii) the Business Day following the date of mailing, if sent by nationally recognized overnight courier service specifying next Business Day delivery, or (iv) upon actual receipt by the party to whom such notice is required to be given, if by hand delivery.  The address and facsimile number of a party for such notices or communications shall be as set forth herein below unless changed by such party by two (2) Business Days’ prior notice to the other party in accordance with this Section 7. All notices, demands and other communications provided for or permitted hereunder shall be made as follows:

 

	6

(a)          if to Holder:

 

Edward D. Bagley

2350 Oak Hill Drive

Salt Lake City, Utah 84121

Email: dal.bagley@comcast.net

  

 

(b)          if to the Company:

 

ClearOne, Inc.

5225 Wiley Post Way, Suite 500

Salt Lake City, Utah 84116

Email: Derek.Graham@clearone.com

Telephone: (801) 303-3425

Attention: Derek Graham, Interim Chief Executive Officer

 

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

 

Seyfarth Shaw

700 Milam Street, Suite 1400

Houston, TX 77002

Email: mdunn@seyfarth.com

Telephone: (713) 238-1817

Attention: Michael Dunn

 

7.                   Miscellaneous.

 

(a)            This Note shall be binding on and inure to the benefit of the parties hereto and their respective successors and permitted assigns.  Subject to the restrictions on transfer set forth herein, this Note may be assigned by the Holder.  The Company shall not be permitted to assign this Note absent the prior written consent of the Holder.

 

(b)            Except as expressly set forth herein, nothing in this Note shall be construed to give to any person other than the Company and the Holder any legal or equitable right, remedy or cause under this Note. 

 

	7

(c)            THE COMPANY HEREBY WAIVES ITS RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS NOTE OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS.  THE COMPANY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

 

(d)            This Note shall be governed by and construed under the law of the State of Utah, without giving effect to the conflicts of law principles thereof.  The Company and, by accepting this Note, the Holder, each irrevocably submits to the exclusive jurisdiction of the courts of the State of Utah located in Salt Lake County and the United States District Court for the District Utah for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Note and the transactions contemplated hereby. Service of process in connection with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices under this Note.  The Company and, by accepting this Note, the Holder, each irrevocably consents to the jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court.  The Company and, by accepting this Note, the Holder, each irrevocably waives any objection to the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

 

(e)            If action is instituted to collect on this Note, the Company promises to pay all reasonable costs and expenses, including reasonable attorney’s fees, incurred in connection with such action.  The Company shall pay the reasonable attorneys’ fees incurred by the Holder in connection with any amendment to, or waiver of, this Note. 

 

(f)             In case any one or more of the provisions of this Note shall be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Note shall not in any way be affected or impaired thereby and the parties will attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Note.

 

(g)            This Note constitutes the entire agreement of the parties with respect to the subject matter hereof.  No provision of this Note may be waived or amended except in a written instrument signed, in the case of an amendment, by the Company and the Holder or, in the case of a waiver, by the Holder.  Any waiver executed by the Holder shall be binding on the Company and any assignee of this Note.  No waiver of any default with respect to any provision, condition or requirement of this Note shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

 

SIGNATURE PAGE FOLLOWS]

	8

IN WITNESS WHEREOF, the Company has caused this Note to be duly executed by a duly authorized officer as of the date first above indicated.  

 

	
 

	
 

 

 

	
 

	
CLEARONE, INC.

	
 

	
 

 

 

 

	
 

	
 

	
By:

	
/s/ Derek Graham

	
 

	
Name: Derek Graham

	
 

	
Title: Interim Chief Executive Officer

 

 

Acknowledged and Agreed to by:

Edward D. Bagley

 

/s/ Edward D. Bagley

Edward D. Bagley

 

	9Document

Exhibit 10.1

TRANSITION & ADVISORY SERVICES AGREEMENT
THIS TRANSITION AND ADVISORY SERVICES AGREEMENT (the “Agreement”) is made and entered into as of November 2, 2022, by and among System1, Inc. (the “Company”) and Paul Filsinger (the “Advisor”).
RECITALS

						
	A.	The Advisor currently serves as President of the Company pursuant to that certain Employment Agreement with System1 OpCo, LLC (f/k/a System1, LLC, an indirect wholly owned subsidiary of S1 Holdco, LLC), dated April 10, 2019 (the “Employment Agreement”).

						
	B.	The Company and the Advisor mutually desire to transition the Advisor’s role with the Company from that of President of the Company to that of a strategic operations advisor to the Company and its Chief Executive Officer (the “CEO”), effective as of the close of business on November 30, 2022 (the “Transition Start Date”).

						
	C.	The Advisor and the Company mutually desire that, effective as of the close of business on the Transition Start Date, the Employment Agreement will terminate, this Agreement will supersede and replace the Employment Agreement in its entirety, and the Advisor will become a strategic operations advisor to the Company’s CEO performing the consulting and advisory services mutually agreed between the Advisor and the Company’s CEO, on the terms and conditions set forth herein.

AGREEMENT
NOW, THEREFORE, in consideration of the mutual agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Advisor hereby agree as follows:
1.    Resignation. Advisor hereby (a) resigns from his position as President of the Company and from all other offices held with the Company and/or its subsidiaries (if any), and (b) transition’s his role and responsibilities with all such entities, in each case, to that of a strategic operations advisor effective as of the close of business on the Transition Start Date. The Company and Advisor acknowledge and agree that the termination of Advisor’s employment as of the close of business on the Transition Date shall not constitute a termination of employment by the Advisor “without good reason” pursuant to Section 5(b) of the Employment Agreement.   As of the close of business on the Transition Date, the Employment Agreement shall terminate and shall be of no further force and effect, and neither the Company nor Advisor shall have any further obligations pursuant thereto.
2.    Services and Compensation.  Subject to and conditioned upon Advisor’s execution and delivery to the Company of an effective release of claims in substantially the form attached hereto as Exhibit A (the “Release”) within twenty-one (21) days following the Transition Start Date and non-revocation of such Release during any applicable revocation period, the parties shall enter into the consulting arrangement as set forth in this Agreement and as specifically described in this Section 2.
(a)    Services and Base Compensation.

(i)    During the Term (as defined below), Advisor shall provide such transition and strategic operation advisory services (collectively, the “Services”) in the Advisor’s areas of expertise and work experience as may be mutually agreed by Advisor and the Chief Executive Officer of the Company and/or the Board of Directors of the Company (the “Board”). Advisor may enter into other consulting relationships that do not conflict with the Advisor’s obligations hereunder, including, but not limited to, those set forth in Sections 7 through 9 of this Agreement.
(ii)    Compensation for Services. In consideration for the performance of the Services, (A) during the period commencing as of the Transition Start Date through January 31, 2023 the Company shall pay or provide to Advisor a monthly fee of $29,165 per month (the “Base Compensation”) commencing with the month of December 2022, payable in accordance with the Company’s ordinary payroll process and (B) subject to the Advisor continuing to provide the Services to the Company through the end of the Initial Term, the Company shall pay Advisor a lump sum fee equal to $320,835 (the “Lump Sum Compensation” and together with the Base Compensation, the “Advisory Fees”) in a single payment on or about February 15, 2023.  Company shall issue to Advisor a W-2 and/or a Form 1099 (as applicable) with respect to the Advisory Fees paid to Advisor during any calendar year with respect to the Services provided hereunder.
(b)    Additional Payments and Benefits. In addition to the Base Compensation, subject to and conditioned upon the Advisor’s execution and delivery to the Company of an effective release of claims in the form attached 

Exhibit 10.1

hereto as Exhibit A (the “Release”) within twenty-one (21) days following the Transition Start Date and non-revocation of such Release during any applicable revocation period:
(i)    Advisor shall remain eligible to the receive an annual bonus in respect of calendar year 2022 services to the Company prior to the Transition Start Date payable in an amount and manner consistent with the calendar year 2022 annual bonus to be received by (and payable to) the Company’s Chief Financial Officer (if any) in terms of total annual bonus payout with respect to Advisor’s target bonus for 2022 (the “Annual Bonus”). The Annual Bonus will be paid on the earlier of (A) the date on which 2022 annual bonuses are paid generally to the Company’s senior executives, but no later than April 15, 2022, or (B) within three (3) business days of the date on which this Agreement is terminated by the Company pursuant to Section 3(a)(ii) hereof.
(ii)    During the period commencing as of the end of the Initial Term (or such earlier termination date, if applicable) and ending on December 31, 2023 or, if earlier, the date on which Advisor becomes eligible for coverage under the group health plan of a subsequent employer (of which eligibility Advisor hereby agrees to give prompt notice to the Company) (in any case, the “COBRA Period”), subject to Advisor’s valid and timely election to continue healthcare coverage under Section 4980B of the Internal Revenue Code of 1986, as amended, and the regulations thereunder, the Company shall continue to provide Advisor and Advisor’s eligible dependents with coverage under its group health plans, based on the Advisor’s elections in effect on the date hereof), provided, however, that (A) if any plan pursuant to which such benefits are provided ceases prior to the expiration of the period of continuation coverage to be exempt from the application of Section 409A (as defined below) under Treasury Regulation Section 1.409A-1(a)(5), or (B) the Company is otherwise unable to continue to cover Advisor under its group health plans (including because taxes or penalties would be imposed on the Company in connection with such continuation coverage), then, in either case, an amount equal to each remaining Company subsidy shall thereafter be paid to Advisor as currently taxable compensation in substantially equal monthly installments over the remaining portion of the continuation coverage period.
(iii)    During the Term (or the Initial Term, if applicable), Advisor’s outstanding Company restricted stock unit awards (the “RSU Awards”) shall continue to vest in accordance with their original vesting schedules, subject to Advisor continuing to provide the Services to the Company through the applicable vest dates set forth in any such RSU Awards until the end of the Term (or the Initial Term, if applicable), and any RSU Awards that remain outstanding and unvested as of the end of the Term (or the Initial Term, if applicable) shall terminate and be forfeited in accordance with their terms as of such termination date. The agreements evidencing Advisor’s RSU Awards shall be deemed amended to the extent necessary to give effect to this Section 2(b)(iii).
(iv)    Outstanding F Unit grant awards of S1 Holdco, LLC (the “F Unit Awards”) shall (x) continue to vest in accordance with their original vesting schedules through the Initial Term and (y) accelerate and vest in full with respect to any remaining unvested F Units outstanding as of the end of the Initial Term, subject to the Advisor continuing to provide the Services to the Company through the end of the Initial Term (or such earlier termination date, if applicable) and Advisor’s compliance with the requirements set forth in Section 3(d) below.  Upon the early termination of this Agreement and the related Services hereunder by Advisor during the Initial Term, the Advisor’s F Unit Awards, to the extent then-unvested as of the date termination, shall terminate as of such termination date. The agreements evidencing the Advisor’s F Unit Awards shall be deemed amended to the extent necessary to give effect to this Section 2(b)(iv).
(c)    Expenses. During the Term, the Company shall continue to reimburse Advisor for reasonable and documented out-of-pocket expenses incurred by Advisor directly in connection with providing the Services contemplated hereunder, in accordance with the Company’s substantiation and reimbursement policies applicable to non-employees, as in effect from time to time.
3.    Term and Obligations Upon Termination
(a)    Term. Advisor’s Services hereunder shall be for a term commencing on the close of business on the Transition Start Date and ending as of the close of business on April 30, 2023 (the “Initial Term”), which Initial Term may be extended, as may be mutually agreed by Advisor and the Company, for up to an additional six (6) months through October 31, 2023 (the “Extension Term” and, together with the Initial Term, the “Term”). Notwithstanding the foregoing, (i) Advisor may terminate the Term and the Advisor’s Services hereunder at any time, for any reason or no reason (and if terminated pursuant hereto during the Initial Term, shall forfeit Advisor’s right to the payments or benefits set forth in Section 2(a)(ii)(B) and 2(b)(iv)), and (ii) the Company may terminate the Term and the Advisor’s Services hereunder only for “Cause” (as defined in the Employment Agreement).
(b)    Obligations Upon Termination. Upon expiration or early termination of this Agreement and the Advisor’s Services hereunder:
(i)    The Company shall pay within thirty (30) days after the date of termination (or such earlier date as may be required by applicable law), all amounts owing to Advisor for Services completed and/or reimbursable expenses (under Section 2(c) above) incurred through the termination date; and

Exhibit 10.1

(ii)    Notwithstanding anything contained herein to the contrary, Section 4 (Confidentiality Agreement), Section 5 (Cooperation), Section 6 (Non-Disparagement) and Section 11 (Independent Contractor) hereof, as well as the Confidentiality Agreement, as defined in Section 4 below, other than Sections 4 and 5 of the Confidentiality Agreement (which are superseded by Sections 7 and 8 of this Agreement), shall survive termination of this Agreement and shall continue in effect pursuant to the terms of such sections.
(c)    Return of Property. Upon the termination of the Term and the Advisor’s Services hereunder for any reason, Advisor agrees to return to the Company all documents of the Company and its subsidiaries (and all copies thereof) and all other Company property that Advisor has in his possession, custody or control, except any and all home office equipment, including any computers (including laptop computers or desktop computers) and cellular phones/smartphones provided or purchased by the Company for use by Advisor in connection with his employment with the Company currently in Advisor’s possession as set forth on Schedule I attached hereto, and unless otherwise agreed with the Company with respect to certain other property. Subject to the foregoing exceptions, such property includes, without limitation: (i) any materials of any kind that Advisor knows contain or embody any proprietary or confidential information of the Company (and all reproductions thereof), (ii) credit cards, phone cards, entry cards, identification badges and keys, and (iii) any correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents concerning the customers, business plans, marketing strategies, products and/or processes of the Company or any of its affiliates and any information received from the Company or any of its affiliates regarding third parties.
(d)    Additional Separation Pay.  Subject to and conditioned upon the Advisor’s execution and delivery to the Company of an effective release of claims in substantially the form attached hereto as Exhibit B (the “Advisor Release”) within seven (7) days following the expiration of the Initial Term or the earlier termination of this Agreement and the Services of Advisor hereunder, Advisor shall be entitled to the accelerated of vesting of his F Unit Awards (as contemplated by Section 2(B)(iv).
(e)    Exclusivity of Benefits.    Except as expressly provided in this Agreement, the Company shall have no further obligations to Advisor upon termination of the Term and the Advisor’s Services hereunder.
4.    Confidentiality Agreement. The parties acknowledge and agree that they have entered into a Confidentiality and Development Agreement, dated March 1, 2017 (the “Confidentiality Agreement”), and the parties hereby acknowledge and agree that such agreement shall remain in full force and effect in accordance with its terms and that Advisor shall be bound by its terms and conditions, except with respect to Sections 4 and 5 thereof (which are superseded by Sections 7 and 8 of this Agreement).
5.    Cooperation. In addition to the Services (and without further compensation other than reimbursement for reasonable expenses incurred by Advisor in connection with this cooperation), Advisor agrees that, for three (3) years following the Term, Advisor will use commercially reasonable efforts to cooperate with the Company, to the extent reasonably requested by the Company, to consult, advise and provide relevant input with respect to any internal investigation or administrative, regulatory or judicial proceeding involving matters that were within the scope of the Advisor’s duties and responsibilities to the Company and its affiliates during employment with the Company. 
6.    Non-Disparagement. Until November 30, 2025, Advisor agrees not to, directly or indirectly, disparage, or defame the interests of the Company, any subsidiary of the Company and/or any officers, directors, employees, shareholders and/or agents of the Company or any subsidiary of the Company, including the goodwill or reputation of any of the foregoing, in any manner intended or reasonably likely to be harmful to them or their business, business reputation or personal reputation. Until November 30, 2025, the Company shall ensure that its directors and executive officers do not disparage Advisor in any manner intended or reasonably likely to be harmful to Advisor’s business or personal reputation.
7.    Employee Non-Solicitation.  Advisor acknowledges that he has gained valuable information about the identity, qualifications and on-going performance and experience of the employees of the Company (including its subsidiaries).  During the period commencing on the Transition Start Date and ending on November 30, 2023, Advisor shall not, without the Company’s prior written consent (email to suffice), directly or indirectly (either for Advisor’s own benefit or the benefit of any third-party) (i) solicit, encourage, entice, induce or aid any current employee or service provider to leave the employment or other service of the Company or any of its subsidiaries (or attempt to do any of the foregoing) and to seek or accept employment with Advisor or any other person or entity (including attempting to do any of the foregoing), including disclosing any information about any such employee to another prospective employer or (ii) hire, engage, promote or sponsor (on behalf of Advisor or any other person or entity) any person or service provider who has left the employment or such other service of the Company within the six (6) month period following the termination of such person’s employment or service engagement with the Company or any of its subsidiaries, unless such termination or engagement is terminated by the Company.
8.    Client Non-Solicitation.  During the period commencing on the Transition Start Date through and ending at the conclusion of the Initial Term, Advisor shall not use any Confidential Information to, directly or indirectly through any person or entity under Advisor’s direct or indirect control, (i) solicit, encourage, entice, induce or aid others in soliciting, encouraging, enticing, inducing or aiding any Client or Partner (each as defined below) to enter into new or substantially similar business opportunities as those engaged in between the Company (including any of its subsidiaries) and such Client or Partner as of the Transition Start Date, (ii) interfere with or 

Exhibit 10.1

otherwise divert any business relationship that exists between the Company and any of its Clients or Partners as of the Transition Start Date, or (iii) call upon any Client or Partner for the purpose of soliciting, selling, providing, rendering or delivering services or products of the kind which are the subject of (or substantially similar to) those offered by the Company. “Client” includes any third-party that utilizes the Company’s products or services, including, but not limited to, in connection with syndicated advertising feeds, monetization or agency related services. “Partner” includes any third party for which the Company relies upon for advertising, publishing, traffic referral or advertising feed services. 
9.    Non-Competition.  During the period commencing on the Transition Start Date through and ending at the conclusion of the Initial Term, subject to the proviso set forth below, Advisor shall not, in any capacity, or in association with others, directly or indirectly, as advisor, agent, owner, partner, member, stockholder, beneficial owner or in any other capacity, directly or indirectly, engage in the business of performance media publishing and/or search arbitrage and similar forms of monetization through acquired or paid online search/user traffic via pay per click (or PPC) search feeds (a “Competitive Business”); provided that none of (i) the ownership of less than two percent (2%) of the outstanding equity interests in a publicly traded entity so long as Advisor does not have an active participation in the business of such entity, (ii) the ownership and/or operation of a Competitive Business during the Initial Term through an exclusive arrangement with the Company with a revenue share rate of 90% payable to Advisor’s Competitive Business on a Net15 payment terms basis, or (iii) Advisor’s current and passive 15.8% ownership interest in Lansera Ventures, LLC, including any future and passive ownership interest of Advisor in a successor entity of Lansera Ventures, LLC following any potential sale of Lansera Ventures, LLC, shall, in each case, be considered or deemed a violation of this Section 9.
10.    Representations. Advisor represents and warrants that Advisor has no outstanding agreement, relationship or obligation that is in conflict with any of the provisions of this Agreement, or that would preclude Advisor from performing hereunder or complying with the provisions hereof, and further agrees that Advisor will not enter into any such conflicting agreement or relationship during the Term. Advisor agrees to comply with any insider trading policy, ethics policy and business conduct policy of the Company during the Term of this Agreement, but may adopt a Section 10b5-1 trading plan consistent with such obligations. Advisor agrees to not use information received by Advisor during the Term of this Agreement for personal gain or take advantage of any business opportunities that arise as a result of this Agreement that might be of interest to the Company.
11.    Independent Contractor. Advisor expressly acknowledges and agrees that, as of the start of Extension Term (if applicable), he is solely an independent contractor and shall not be construed to be an employee of the Company in any matter under any circumstances or for any purposes whatsoever. The Company shall not be obligated to (a) pay on the account of the Consultant, any unemployment tax or other taxes required under the law to be paid with respect to employees, (b) withhold any monies from the fees of Advisor for income or employment tax purposes or (c) provide Advisor with any benefits, including without limitation health, welfare, pension, retirement, or any kind of insurance benefits, including workers’ compensation insurance (except as expressly provided above with respect to COBRA continuation benefits). Notwithstanding the foregoing, any amounts payable to Advisor in respect of his service as an employee of the Company prior to the Transition Start Date (including those amounts provided in Sections 2(b)(i)-(iii)) shall be subject to withholding in accordance with applicable law. Advisor acknowledges and agrees that Advisor is obligated to report as income all compensation received by Advisor pursuant to this Agreement, and to pay any applicable income, self-employment and other taxes thereon. Advisor and the Company hereby acknowledge and agree that this Agreement does not impose any obligation on the Company to offer employment or reemployment to Advisor at any time, and any such decision shall be solely within the Company’s discretion.
12.     Rollover Option. In the event the Company undergoes a go-private transaction and Advisor still retains at least thirty-five percent (35%) of his shares in the Company (inclusive of any then unvested F Unit Awards) as of the Transition Start Date, Advisor shall be entitled to “roll-over” such shares in the Company (inclusive of any then unvested F Unit Awards) in an amount and on material terms substantially similar to those of senior management of the Company. 
13.    Assignment. This Agreement and the rights and duties hereunder are personal to Advisor and shall not be assigned, delegated, transferred, pledged or sold by Advisor without the prior written consent of the Company. Advisor hereby acknowledges and agrees that the Company may assign, delegate, transfer, pledge or sell this Agreement and the rights and duties hereunder (a) to an affiliate of the Company, or (b) to any third party (i) that acquires all or substantially all of the assets of the Company or (ii) that is the surviving or acquiring corporation in connection with a merger, consolidation or other acquisition involving the Company. This Agreement shall inure to the benefit of and be enforceable by the parties hereto, and their respective heirs, personal representatives, successors and assigns.
14.    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 as follows:
If to the Consultant: at the Advisor’s most recent address on the records of the Company.
If to the Company:
System1, Inc.

Exhibit 10.1

4235 Redwood Avenue
Los Angeles, CA 90066
Attn: Legal Department
with a copy to:
Latham & Watkins LLP
355 S. Grand Avenue
Los Angeles, CA 90071
Attn: Alex Voxman
or to such other address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually received by the addressee.
15.    Section 409A.    To the extent applicable, this Agreement shall be interpreted in accordance with Section 409A of the Internal Revenue Code and Department of Treasury regulations and other interpretive guidance issued thereunder (“Section 409A”). Notwithstanding any provision of this Agreement to the contrary, if the Company determines that any compensation or benefits payable under this Agreement may be subject to Section 409A, the Company shall work in good faith with Advisor to adopt such amendments to this Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Company determines are necessary or appropriate to avoid the imposition of taxes under Section 409A, including without limitation, actions intended to (a) exempt the compensation and benefits payable under this Agreement from Section 409A, and/or (b) comply with the requirements of Section 409A; provided, however, that this Section 13 shall not create an obligation on the part of the Company to adopt any such amendment, policy or procedure or take any such other action, nor shall the Company have any liability for failing to do so. Any right to a series of installment payments pursuant to this Agreement is to be treated as a right to a series of separate payments.
16.    Governing Law. Any dispute, controversy, or claim of whatever nature arising out of or relating to this Agreement or breach thereof shall be governed by and interpreted under the laws of the State of California, without regard to conflict of law principles.
17.    Entire Agreement; Counterparts. Effective as of the close of business on the Transition Date, this Agreement, together with the Confidentiality Agreement (other than Sections 4 and 5 of the Confidentiality Agreement which are superseded by Sections 7 and 8 of this Agreement), the Release, and any applicable stock option and restricted stock unit agreements (other than any non-competition, non-solicitation, non-disparagement or other restrictive covenants in any applicable stock option or restricted stock unit agreement) constitutes the complete and final agreement of the parties and supersede any prior agreements between them, whether written or oral, with respect to the subject matter hereof. Without limiting the generality of the foregoing, Advisor hereby agrees that as of the close of business on the Transition Start Date, the Employment Agreement is hereby terminated and shall be of no further force or effect. The parties acknowledge and agree that Advisor shall not be bound by any non-competition, non-solicitation, non-disparagement or other restrictive covenants, except as provided for in this Agreement and the Confidentiality Agreement (other than Sections 4 and 5 of the Confidentiality Agreement which are superseded by Sections 7 and 8 of this Agreement).  No waiver, alteration, or modification of any of the provisions of this Agreement shall be binding unless in writing and signed by duly authorized representatives of the parties hereto. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement.
18.    Severability. The invalidity or unenforceability of any provision of this Agreement, or any terms thereof, shall not affect the validity of this Agreement as a whole, which shall at all times remain in full force and effect.
(Signature Page Follows)

Exhibit 10.1

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above.
									
			
	SYSTEM1, INC.
		
	By:	 	/s/ Michael Blend
		 	Michael Blend
		 	Chief Executive Officer

   			
	
	ADVISOR
	
	/s/ Paul Filsinger
	Paul Filsinger

[Signature Page to Filsinger Transition & Advisory Services Agreement]

Exhibit A

GENERAL RELEASE
For valuable consideration, the receipt and adequacy of which are hereby acknowledged, the undersigned does hereby release and forever discharge the “Releasees” hereunder, consisting of System1, Inc., a Delaware corporation (the “Company”) and each of its partners, subsidiaries, associates, affiliates, successors, heirs, assigns, agents, directors, officers, employees, representatives, lawyers, insurers, and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, losses, costs, attorneys’ fees or expenses, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called “Claims”), which the undersigned now has or may hereafter have against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof. The Claims released herein include, without limiting the generality of the foregoing, any Claims in any way arising out of, based upon, or related to the employment or termination of employment of the undersigned by the Releasees, or any of them; any alleged breach of any express or implied contract of employment; any alleged torts or other alleged legal restrictions on Releasees’ right to terminate the employment of the undersigned; and any alleged violation of any federal, state or local statute or ordinance including, without limitation, Title VII of the Civil Rights Act of 1964, the Age Discrimination In Employment Act, the Americans With Disabilities Act, and the California Fair Employment and Housing Act. Notwithstanding the foregoing, this general release (the “Release”) shall not operate to release any rights or claims of the undersigned (i) to payments or benefits under that certain Transition & Advisory Services Agreement, dated as of October 31, 2022, between the Company and the undersigned (the “Transition Agreement”), (ii) to payments or benefits under any equity award agreement between the undersigned and the Company, (iii) with respect to Section 2(c) of the Transition Agreement, (iv) to accrued or vested benefits the undersigned may have, if any, as of the date hereof under any applicable plan, policy, practice, program, contract or agreement with the Company, (v) to any Claims, including claims for indemnification and/or advancement of expenses, arising under any indemnification agreement between the undersigned and the Company or under the bylaws, certificate of incorporation of other similar governing document of the Company, or (vi) to any Claims which cannot be waived by an employee under applicable law.
THE UNDERSIGNED ACKNOWLEDGES THAT THE EXECUTIVE HAS BEEN ADVISED BY LEGAL COUNSEL AND IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”
THE UNDERSIGNED, BEING AWARE OF SAID CODE SECTION, HEREBY EXPRESSLY WAIVES ANY RIGHTS THE EXECUTIVE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.
 
IN ACCORDANCE WITH THE OLDER WORKERS BENEFIT PROTECTION ACT OF 1990, THE UNDERSIGNED IS HEREBY ADVISED AS FOLLOWS:
(A)    THE EXECUTIVE HAS THE RIGHT TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS RELEASE;
(B)    THE EXECUTIVE HAS TWENTY-ONE (21) DAYS TO CONSIDER THIS RELEASE BEFORE SIGNING IT; AND
(C)    THE EXECUTIVE HAS SEVEN (7) DAYS AFTER SIGNING THIS RELEASE TO REVOKE THIS RELEASE, AND THIS RELEASE WILL BECOME EFFECTIVE UPON THE EXPIRATION OF THAT REVOCATION PERIOD.
The undersigned represents and warrants that there has been no assignment or other transfer of any interest in any Claim which the Advisor may have against Releasees, or any of them, and the undersigned agrees to indemnify and hold Releasees, and each of them, harmless from any liability, Claims, demands, damages, costs, expenses and attorneys’ fees incurred by Releasees, or any of them, as the result of any such assignment or transfer or any rights or Claims under any such assignment or transfer. It is the intention of the parties that this indemnity does not require payment as a condition precedent to recovery by the Releasees against the undersigned under this indemnity.

Exhibit A

Nothing in this Release or any other agreement by and between the Company and Advisor shall prohibit or restrict Advisor from (i) voluntarily communicating with an attorney retained by Advisor; (ii) voluntarily communicating with any law enforcement, government agency, including the Securities and Exchange Commission (“SEC”), the Equal Employment Opportunity Commission, or a state or local commission on human rights, or any self-regulatory organization regarding possible violations of law, in each case, without advance notice to the Company, or otherwise initiating, testifying, assisting, complying with a subpoena from, or participating in any manner with an investigation conducted by such government agency; (iii) recovering a SEC whistleblower award as provided under Section 21F of the Securities Exchange Act of 1934; (iv) disclosing any confidential information to a court or other administrative or legislative body in response to a valid and enforceable subpoena, provided that Advisor first promptly notifies and provides the Company with the opportunity to seek, and join in its efforts at the sole expense of the Company, to challenge the subpoena or obtain a protective order limiting its disclosure, or other appropriate remedy; (v) discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that Advisor has reason to believe is unlawful; or (vi) filing or disclosing any facts necessary to receive unemployment insurance, Medicaid or other public benefits to which Advisor may be  entitled.
The undersigned agrees that if the Advisor hereafter commences any suit arising out of, based upon, or relating to any of the Claims released hereunder or in any manner asserts against Releasees, or any of them, any of the Claims released hereunder, then the undersigned agrees to pay to Releasees, and each of them, in addition to any other damages caused to Releasees thereby, all attorneys’ fees incurred by Releasees in defending or otherwise responding to said suit or Claim, solely to the extent permitted by law.
The undersigned further understands and agrees that neither the payment of any sum of money nor the execution of this Release shall constitute or be construed as an admission of any liability whatsoever by the Releasees, or any of them, who have consistently taken the position that they have no liability whatsoever to the undersigned.
IN WITNESS WHEREOF, the undersigned has executed this Release this          day of November, 2022.

			
	
	
	 
 

	Paul Filsinger

Exhibit B

GENERAL RELEASE
For valuable consideration, the receipt and adequacy of which are hereby acknowledged, the undersigned does hereby release and forever discharge the “Releasees” hereunder, consisting of System1, Inc., a Delaware corporation (the “Company”) and each of its partners, subsidiaries, associates, affiliates, successors, heirs, assigns, agents, directors, officers, employees, representatives, lawyers, insurers, and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, losses, costs, attorneys’ fees or expenses, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called “Claims”), which the undersigned now has or may hereafter have against the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof (the “General Release”).  The Claims released herein include, without limiting the generality of the foregoing, any Claims in any way arising out of, based upon, or related to that certain Transition & Advisory Services Agreement dated October 31, 2022 or termination thereof, and Advisor’s provision of services thereunder.

THE UNDERSIGNED ACKNOWLEDGES THAT SHE HAS BEEN ADVISED BY LEGAL COUNSEL AND IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

THE UNDERSIGNED, BEING AWARE OF SAID CODE SECTION, HEREBY EXPRESSLY WAIVES ANY RIGHTS SHE MAY HAVE THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT.

The undersigned represents and warrants that there has been no assignment or other transfer of any interest in any Claim which he may have against Releasees, or any of them, and the undersigned agrees to indemnify and hold Releasees, and each of them, harmless from any liability, Claims, demands, damages, costs, expenses and attorneys’ fees incurred by Releasees, or any of them, as the result of any such assignment or transfer or any rights or Claims under any such assignment or transfer.  It is the intention of the parties that this indemnity does not require payment as a condition precedent to recovery by the Releasees against the undersigned under this indemnity.

Nothing in this Release or any other agreement by and between the Company and Advisor shall prohibit or restrict Advisor from (i) voluntarily communicating with an attorney retained by Advisor; (ii) voluntarily communicating with any law enforcement, government agency, including the Securities and Exchange Commission (“SEC”), the Equal Employment Opportunity Commission, or a state or local commission on human rights, or any self-regulatory organization regarding possible violations of law, in each case without advance notice to the Company, or otherwise initiating, testifying, assisting, complying with a subpoena from, or participating in any manner with an investigation conducted by such government agency; (iii) recovering a SEC whistleblower award as provided under Section 21F of the Securities Exchange Act of 1934; (iv) disclosing any confidential information to a court or other administrative or legislative body in response to a valid and enforceable subpoena, provided that Advisor first promptly notifies and provides the Company with the opportunity to seek, and join in its efforts at the sole expense of the Company, to challenge the subpoena or obtain a protective order limiting its disclosure, or other appropriate remedy; (v) discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that Advisor has reason to believe is unlawful; or (vi) filing or disclosing any facts necessary to receive unemployment insurance, Medicaid or other public benefits to which Advisor may be  entitled.

The undersigned agrees that if he hereafter commences any suit arising out of, based upon, or relating to any of the Claims released hereunder or in any manner asserts against Releasees, or any of them, any of the Claims released hereunder, then the undersigned agrees to pay to Releasees, and each of them, in addition to any other damages caused to Releasees thereby, all attorneys’ fees incurred by Releasees in defending or otherwise responding to said suit or Claim, solely to the extent permitted by law.

Exhibit B

The undersigned further understands and agrees that neither the value provided nor the execution of this Release shall constitute or be construed as an admission of any liability whatsoever by the Releasees, or any of them, who have consistently taken the position that they have no liability whatsoever to the undersigned.

IN WITNESS WHEREOF, the undersigned has executed this Release this ____ day of ______, 2023.

			
	
	
	 
 

	Paul Filsinger

Schedule I
Retained Equipment

•MacBook Pro*, keyboard, mouse, dock
•Desktop Computer Monitor
•iPhone 14 & accessories
•Haworth office chair

*MacBook Pro shall be “wiped” or reset in accordance with the Company’s standard information technology policy or procedure for departing employees generally at a time mutually agreed between Company and Advisor.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00349-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00349-of-00352.parquet"}]]