Document:

dlyt_ex1015.htm

EXHIBIT 10.15
  
 
  
 EMPLOYMENT AGREEMENT
  
 THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of August 17, 2015 (the “Effective Date”), by and between: (i) Dais Analytic Corporation, a Florida corporation (the “Company”) and (ii) Brian C. Johnson, an individual (hereinafter referred to as “Employee”). The Company and Employee may be referred to hereinafter individually as a “Party” and collectively as the “Parties.
  
 NOW THEREFORE, in consideration of the mutual covenants set forth below, and subject to the terms of this Agreement, the Company agrees to employ Employee, and Employee agrees to be employed by the Company as set forth in this Agreement. 
  
 1. DESCRIPTION OF POSITION AND DUTIES.
  
 a. Position. Employee shall be employed as Chief Technology Officer of the Company and in such other capacities as may be mutually agreed upon by the Company and Employee. Employee may be removed or terminated by the Company’s President or Board of Directors (the “Board”) as outlined herein.
  
 b. Essential Job Functions and Duties. During the Term of this Agreement, the Employee shall serve as Chief Technology Officer of the Company, shall report to the President of the Company, and, is subject to the direction of the President and its Board. The Employee shall perform well, timely and faithfully all the duties and responsibilities customarily rendered by Chief Technology Officers of companies of similar size and nature and such other duties and responsibilities as may be delegated to him from time to time by the President or the Board in their sole discretion. Employee will devote substantially all of his professional time during the work week to the Company's business, except that Employee will be permitted to perform charitable work and to manage his personal and other business investments so long as such outside activities do not interfere with the performance of Employee's duties on behalf of Company. Employee shall notify the Company of any commercial activities. Employee shall commit such time to the Company as is necessary to perform his responsibilities and duties hereunder.
  
 2. COMPENSATION TERMS.
  
 a. Base Salary. Employee shall receive a base salary (the “Base Salary”) of $135,000 per year, in twelve equal monthly installments pursuant to Company’s payroll practices. Employer will periodically review Employee’s performance and determine whether increases in Employee’s base salary are warranted.
  
 b. Performance Bonus. In connection with each calendar year, partial or otherwise, in which Employee is employed by the Company, Employee may, at the discretion of the Board and President, receive a performance bonus.
  
 c. Exempt Status. Employee understands that at all times he is employed as an “exempt employee” and, therefore, he is not entitled to overtime wages. 
  
 d. Expense Reimbursement. Employee shall be entitled to reimbursement of reasonably incurred expenses incurred in the performance of the functions and duties under this Agreement; provided, however, all expenses over $500 shall require prior authorization of the President. In order to receive reimbursement, Employee must timely provide the Company with an itemized account of all expenditures, along with suitable receipts therefore and other support reasonably requested.
  
 e. Benefits. Employee shall be entitled to participate in any benefits programs offered by the company on the same terms as all other executives of the company. 
  
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 3. VACATION. Employee is entitled to up to four (4) weeks of paid vacation per year, which if unused shall not accrue. Vacation consisting of greater than five (5) business days shall be approved in advance.
  
 4. TERM OF EMPLOYMENT. The Company agrees to continue Employee's employment, and Employee agrees to remain in the employ of the Company, pursuant to the terms of this Agreement from the Effective Date through February 29, 2016 (the “Initial Term”), unless Employee’s employment is earlier terminated or modified pursuant to the provisions of this Agreement. Upon expiration of the Initial Term, this Agreement will be automatically extended for additional one-year terms unless Employee or the Company shall, upon 30 days written notice to the other, elect not to extend this Agreement for an additional one-year term. If this agreement is terminated pursuant to this Section 4, no matter which Party sends the written notice, it shall be considered to be a Voluntary Termination, as defined in Section 5.
  
 5. TERMINATION.
  
 a Events of Termination. The Employee's employment with the Company shall terminate upon any one of the following:
  
 i. After the date of a written notice sent to Employee stating the Company's determination made in good faith that it is terminating Employee for “Cause” as defined under Section 5(b) below (“Termination for Cause”);
  
 ii. After the date of a written notice sent to Employee stating the Company's determination made in good faith that, due to a mental or physical incapacity, Employee has been unable to perform his duties under this Agreement for a period of at least twelve consecutive weeks (“Termination for Disability”);
  
 iii. Upon Employee’s death (“Termination Upon Death”); 
  
 iv. Thirty (30) days after the date of a notice sent to Employee stating that the Company is terminating his employment, without Cause, which notice can be given by the Company at the Company's sole discretion, for any reason or for no reason whatsoever (“Termination Without Cause”); or
  
 v. The date of a notice sent to the Company from Employee stating that Employee is electing to terminate his employment with the Company (“Voluntary Termination”).
  
 b. “Cause” Defined. For purposes of this Agreement, “Cause” for Employee's termination will exist at any time after the occurrence of one or more of the following events:
  
 For the purposes of this agreement, For Cause shall mean: 
  
 i. your conviction of a crime involving moral turpitude; 
  
 ii. you become incapable of performing the duties of your employment with the Company due to loss or suspension of any license or certification required for the performance of those duties; 
  
 iii. conduct by you that constitutes fraud, embezzlement, or theft that occurs during or in the course of your employment with the Company; 
  
 iv. intentional damage by you to the Company’s assets or property or the assets or property of the Company’s customers, vendors, or employees; 
   
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 v. intentional disclosure by you of the Company’s confidential information during or in the course of your employment with the Company; 
  
 vi. intentional engagement by you in any activity which would constitute a breach of duty of loyalty to the Company; 
  
 vii. conduct by you that constitutes a willful and continued failure or refusal by you to substantially perform your duties for the Company (except as a result of incapacity due to physical or mental illness), 
  
 viii. your failure to comply with the Company’s policies or practices despite having been advised and/or instructed regarding those policies or practices; or 
  
 ix. conduct by you that are demonstrably and materially injurious to the Company, monetarily or otherwise, including injury to the Company’s reputation or conduct by you otherwise having an adverse affect upon the Company’s interests. 
  
 c. “Termination Without Cause” shall mean termination of Employee’s employment with the Company for any reason other than Cause.
  
 d. Effect of Termination.
  
 i. Termination for Cause or Voluntary Termination. In the event of any termination of Employee's employment pursuant to Section 5(a)(i) or Section 5(a)(v), the Company shall immediately pay to Employee the compensation and benefits accrued and otherwise payable to Employee under Section 2 through the date of termination. The Employee's rights under the Company's benefit plans of general application, if any, shall be determined under the provisions of those plans.
  
 ii. Termination for Disability. In the event of termination of employment pursuant to Section 5(a)(ii):
  
 A. the Company shall immediately pay to Employee the compensation and benefits accrued and otherwise payable to Employee under Section 2 through the date of termination; and 
  
 B. the Employee shall receive any other benefit payments as provided in the Company's standard benefit plans applicable to disability, if any.
  
 iii. Termination Upon Death. In the event of termination of employment pursuant to Section 5(a)(iii), all obligations of the Company and Employee shall cease, except the Company shall immediately pay to Employee (or to Employee's estate) the compensation and benefits accrued and otherwise payable to Employee under Section 2 through the date of termination, if any.
  
 iv. Termination Without Cause. In the event of any termination of this Agreement pursuant to Section 5(a)(iv), the Company shall immediately pay to Employee (i) the compensation and benefits accrued and otherwise payable to Employee under Section 2 through the date of termination plus (ii) a lump-sum severance amount consisting of one month of salary plus one additional month’s salary for each full year of service (measured by each anniversary of the Effective Date) up to a maximum combined severance amount of four months of salary.
   
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 6. CONFIDENTIALITY; NON-COMPETITION; NON-SOLICITATION.
  
 a. Covenants Regarding Confidential Information, Trade Secrets and Other Matters. Employee covenants and agrees as follows: 
  
 i. Definitions. For purposes of this Agreement, the following terms are defined as follows: 
  
 A. “Trade Secret” means all information possessed by or developed for the Company or any of its subsidiaries, including, without limitation, a compilation, program, device, method, system, technique or process, to which all of the following apply: (i) the information derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and (ii) the information is the subject of efforts to maintain its secrecy that are reasonable under the circumstances. 
  
 B. “Confidential Information” means information, to the extent it is not a Trade Secret, which is possessed by or developed for the Company or any of its subsidiaries and which relates to the Company’s or any of its subsidiaries’ existing or potential business or technology, which information is generally not known to the public and which information the Company or any of its subsidiaries seeks to protect from disclosure to its existing or potential competitors or others, including, without limitation, for example: business plans, strategies, existing or proposed bids, costs, technical developments, clients, existing or proposed research projects, financial or business projections, investments, marketing plans, negotiation strategies, training information and materials, information generated for client engagements and information stored or developed for use in or with computers. Confidential Information also includes information received by the Company or any of its subsidiaries from others which the Company or any of its subsidiaries has an obligation to treat as confidential. 
  
 ii. Nondisclosure of Confidential Information. Except as required in the conduct of the Company’s or any of its subsidiaries’ business or as expressly authorized in writing on behalf of the Company or any of its subsidiaries, Employee shall not use or disclose, directly or indirectly, any Confidential Information during the period of his employment with the Company. In addition, following the termination for any reason of Employee’s employment with the Company, Employee shall not use or disclose, directly or indirectly, any Confidential Information. This prohibition also does not prohibit Employee’s use of general skills and know-how acquired during and prior to employment by the Company, as long as such use does not involve the use or disclosure of Confidential Information or Trade Secrets.
  
 iii. Trade Secrets. During Employee’s employment by the Company, Employee shall do what is reasonably necessary to prevent unauthorized misappropriation or disclosure and threatened misappropriation or disclosure of the Company or any of its subsidiaries’ Trade Secrets and, after termination of employment, Employee shall not use or disclose the Company or any of its subsidiaries’ Trade Secrets as long as they remain, without misappropriation, Trade Secrets. 
  
 iv. Exceptions. The provisions of paragraphs (ii) and (iii) above will not be deemed to prohibit any disclosure that is required by law or court order, provided that Employee has not intentionally taken actions to trigger such required disclosure and, so long as not prohibited by any applicable law or regulation, the Company is given reasonable prior notice and an opportunity to contest or minimize such disclosure. 
  
 b. Non-Competition. 
  
 i. During Employment. During Employee’s employment hereunder, Employee shall not engage, directly or indirectly, as an employee, officer, director, partner, manager, consultant, agent, owner or in any other capacity, in any competition with the Company or any of its subsidiaries and agrees not to solicit any customer or prospective customer, and vendor or prospective vendor of the Company or any of its subsidiaries. . 
   
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 ii. Subsequent to Employment. For a period of one year following the termination of Employee’s employment for any reason or without reason, Employee shall not in any capacity, whether in the capacity as an employee, officer, director, partner, manager, consultant, agent or owner, directly or indirectly advise, manage, render or perform services to or for any person or entity which is engaged in a business competitive to that of the Company or any of its subsidiaries and agrees not to solicit any customer or prospective customer of the Company or any of its subsidiaries. 
  
 c. Non-solicitation. For a period of eighteen (18) months following the termination of Employee’s employment for any reason or without reason, Employee shall not solicit or induce any person who is a customer or prospective customer, is a vendor or prospective vendor, is an employee or independent contractor of the Company or any of its subsidiaries to leave their employment or in any way alter their working relationshp with the Company or any of its subsidiaries.
  
 d. Return of Documents. Immediately upon termination of employment, Employee will return to the Company or any of its subsidiaries, and so certify in writing to the Company, all the Company or any of its subsidiaries’ papers, documents and things, including information stored for use in or with computers and software applicable to the Company or any of its subsidiaries’ business (and all copies thereof), which are in Employee’s possession or under Employee’s control, regardless whether such papers, documents or things contain Confidential Information or Trade Secrets. The Company shall have the option to withhold the Employee’s final paycheck until all documents are returned.
  
 e. No Conflicts. To the extent that they exist, Employee will not disclose to the Company or any of its subsidiaries any of Employee’s previous employer’s confidential information or trade secrets. Further, Employee represents and warrants that Employee has not previously assumed any obligations inconsistent with those of this Agreement and that employment by the Company does not conflict with any prior obligations to third parties. In addition, Employee and the Company agree that it is important for any prospective employer to be aware of this Agreement, so that disputes concerning this Agreement can be avoided in the future. Therefore, Employee agrees that, following termination of employment with the Company, the Company or any of its subsidiaries may forward a copy of this Agreement (and any related Exhibits hereto) to any future prospective or actual employer, and Employee releases the Company or any of its subsidiaries from any claimed liability or damage caused to Employee by virtue of the Company’s act in making that prospective or actual employer aware of this Agreement (and any related Exhibits hereto). 
  
 f. Agreement on Fairness. Employee acknowledges that: (i) this Agreement has been specifically bargained between the parties and reviewed by Employee; (ii) Employee has had an opportunity to obtain legal counsel to review this Agreement; and (iii) the covenants made by and duties imposed upon Employee hereby are fair, reasonable and minimally necessary to protect the legitimate business interests of the Company, and such covenants and duties will not place an undue burden upon Employee’s livelihood in the event of termination of Employee’s employment by the Company and the strict enforcement of the covenants contained herein. 
  
 g. Equitable Relief and Remedies. Employee acknowledges that any breach of Section 6 or Section 7 of this Agreement will cause substantial and irreparable harm to the Company or any of its subsidiaries for which money damages would be an inadequate remedy. Accordingly, notwithstanding the other provisions of this Agreement, the Company or any of its subsidiaries shall in any such event be entitled to seek injunctive and other forms of equitable relief to prevent such breach and the prevailing party shall be entitled to recover from the other, the prevailing party’s costs (including, without limitation, reasonable attorneys’ fees) incurred in connection with enforcing this Agreement, in addition to any other rights or remedies available at law, in equity or by statute.
   
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 7.&NBSP;&NBSP; INTELLECTUAL PROPERTY.
  
 a. General Provisions. Employee acknowledges that the Company possesses and will continue to possess information that has been created, discovered, or developed by the Company (including, without limitation, information created, discovered, or developed by the Employee that arises out of the Employee’s relationship with the Company) and/or in which property rights have been assigned or otherwise conveyed to the Company, which information has commercial value in the business in which the Company is or may become engaged. All of the aforementioned information is hereinafter called “Intellectual Property”. By way of illustration, but not limitation, Intellectual Property includes, whether or not patentable, trade secrets, processes, developments, ideas, structures, formulas, data, know-how, improvements, modification, inventions, product concepts, techniques, marketing plans, strategies, forecasts, customer lists, information regarding products, designs, methods, systems, software programs, copyrightable works, discoveries, trademarks, copyrights works of authorship, projects, plans and proposals, information about the Company’s Employees and/or consultants (including, without limitation, the compensation, job responsibilities and job performance of such Employees and/or consultants). For the purpose of this Agreement inventions shall include, but not be limited to, discoveries, concepts, and ideas, whether patentable or not, including but not limited to, devices, processes, methods, formulae, designs, techniques, and any improvements or modifications to the foregoing.
  
 b. Ownership of Intellectual Property. All Intellectual Property shall be the sole property of the Company and its assigns, and the Company and its assigns shall be the sole owner of all patents, copyrights and other rights in connection therewith. The Employee hereby assigns to the Company or to any person, or entity designated by the Company, any and all rights and interest the Employee has or may acquire to Intellectual Property made or conceived by the Employee, solely or jointly, or in whole or in part, during the Term hereof . Any Intellectual Property create and/or reduced to practice by the Employee within one year following the termination of his employment shall be presumed to have been created and/or reduced to practice under this Agreement unless proven otherwise. At all times both, before and during the Term of this Agreement and after its termination, Employee agrees to keep in confidence and trust all Intellectual Property and anything directly or indirectly relating to it. The Employee will not during or after the Term of his employment by the Company, in whole or in part, disclose, publish or make accessible such Intellectual Property which Employee may now possess, may obtain during or after employment or may create prior to the end of his employment, to any person, firm, corporation, association or other entity for any reason or purpose whatsoever, nor shall the Employee make use of any such Intellectual Property for his own purposes or for the benefit of any person, firm, corporation or other entity (except the Company) under any circumstances during or after the Term of his employment.
  
 c. Disclosure of Intellectual Property. Employee will promptly disclose to the Company, or any persons designated by it, all Intellectual Property made or conceived or reduced to practice or learned or proposed by Employee, either alone or jointly with others, during the Term of this Agreement which is in any way related to or useful in the actual, anticipated or potential businesses of the Company, or the result of tasks assigned to the Employee by the Company or resulting from use of premises or equipment owned, leased or contracted for by the Company.
   
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 d. Assignment of and Assistance With Regard To Intellectual Property. Employee hereby assigns to the Company any rights the Employee may have or acquire in any and all Intellectual Property and agrees that any and all Intellectual Property shall be the sole property of the Company and its assigns, and the Company and its assigns shall be the sole owner of all patents, copyrights and other rights in connection therewith. Employee further agrees to assist the Company in every proper way (but at the Company’s expense) to obtain and from time to time enforce patents, copyrights or other rights on said Intellectual Property in any and all countries, and to that end Employee will execute all documents necessary:
  
 1. To apply for, obtain and vest in the name of the Company (unless the Company otherwise directs) letters patent, copyrights or other analogous protection in any country throughout the world and when so obtained or vested to renew and restore the same; and
  
 2. To defend, at the Company’s expense, any opposition proceedings in respect of such applications and any opposition proceedings or petitions or applications for revocation of such letters patent, copyright or other analogous protection.
  
 e. Designation of Attorney-in-Fact. In the event the Company is unable, after reasonable effort, to secure Employee’s signature on any letters patent, copyright or other analogous protection relating to Intellectual Property because of the Employee’s physical or mental incapacity the Employee hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as Employee’s agent and attorney-in-fact, to act for and in Employee’s behalf and stead to execute and file any such application or applications and to do all other lawfully permitted acts to further the prosecution and issuance of letters patent, copyright or other analogous protection thereon with the same legal force and effect as is executed by Employee. Employee’s obligation to assist the Company in obtaining and enforcing patents and copyrights for Intellectual Property in any and all countries shall continue beyond the expiration or termination of this Agreement, but the Company shall compensate the Employee at a reasonable and customary rate after such termination for time actually spent by the Employee at the Company’s request on such assistance.
  
 f. Work for Hire. Employee acknowledges that all original works of authorship which are made by him (solely or jointly with others) within the scope of this Agreement and which are protectable by copyright are being created at the instance of the Company and are “works for hire”, as that term is defined in the United States Copyright Act (17 USC Section 101). If such laws are inapplicable or in the event that such works, or any part thereof, are determined by a court of competent jurisdiction not to be a work made for hire under the United States copyright laws, this Agreement shall operate granting to Company an irrevocable right, title and interest (including, without limitation all rights in and to the copyrights throughout the world, including the right to prepare derivative works and the right to all renewals and extensions) in the Works in perpetuity.
  
 8. MISCELLANEOUS PROVISIONS.
  
 a. Necessary Acts. Each Party to this Agreement agrees to perform any further acts and execute and deliver any further documents that may be reasonably necessary to carry out the provisions of this Agreement.
  
 b. Entire Agreement; Modifications; Waiver. This Agreement constitutes the entire agreement between the Parties pertaining to the subject matter contained in it. This Agreement supersedes all prior and contemporaneous agreements, representations, and understandings of the Parties. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing by all the Parties. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute, a waiver of any other provisions, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the Party making the waiver.
  
 c. No Assignment. This Agreement and all rights hereunder are personal to Employee and may not be transferred or assigned by Employee at any time. The Company may assign its rights, together with its obligations hereunder, to any parent, subsidiary, affiliate or successor, or in connection with any sale, transfer or other disposition of all or substantially all of its business and assets, provided, however, that any such assignee assumes the Company's obligations hereunder.
   
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 d. Withholding. All sums payable to Employee hereunder shall be reduced by all federal, state, local and other withholding and similar taxes and payments required by applicable law.
  
 e. Notices. 
  
 All notices and other communications required or permitted hereunder shall be in writing and shall be effective when delivered personally, or sent by facsimile machine or email, provided that a copy is mailed by registered mail, return receipt requested, or when received by the addressee, if sent by Federal Express or other express delivery service (receipt requested) in each case to the appropriate address set forth below:
  
 	 If to the Company:
 Dais Analytic Corporation
 11552 Prosperous Drive
 Odessa, Florida 33556
 Attention: Timothy N. Tangredi
 E-mail: tntangredi@daisanalytic.com
	 If to Employee:
 Brian C. Johnson
 3603 W Morrison Ave 
 Tampa, FL 33629
 E-mail: bjohnson@tampabay.rr.com 

  
 f. Severability. If any provision of this Agreement is invalid, illegal, or unenforceable, the balance of this Agreement shall remain in effect. If any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances. 
  
 g. Headings. The headings contained in this Agreement are for reference purposes only and shall in no way affect the meaning or interpretation of this Agreement. 
  
 h. Dispute Resolution. The subject matter of this Agreement shall be governed by and construed in accordance with the laws of the State of Florida (without reference to its choice of law principles), and to the exclusion of the law of any other forum, without regard to the jurisdiction in which any action or special proceeding may be instituted. EACH PARTY HERETO AGREES TO SUBMIT TO THE PERSONAL JURISDICTION AND VENUE OF THE STATE AND/OR FEDERAL COURTS LOCATED IN PASCO COUNTY, FLORIDA FOR RESOLUTION OF ALL DISPUTES ARISING OUT OF, IN CONNECTION WITH, OR BY REASON OF THE INTERPRETATION, CONSTRUCTION, AND ENFORCEMENT OF THIS AGREEMENT, AND HEREBY WAIVES THE CLAIM OR DEFENSE THEREIN THAT SUCH COURTS CONSTITUTE AN INCONVENIENT FORUM. AS A MATERIAL INDUCEMENT FOR THIS AGREEMENT, EACH PARTY SPECIFICALLY WAIVES THE RIGHT TO TRIAL BY JURY OF ANY ISSUES SO TRIABLE. 
  
 i. Attorney’s Fees. Should any Party hereto employ an attorney for the purpose of enforcing or constituting this Agreement, or any judgment based on this Agreement, in any legal proceeding whatsoever, including insolvency, bankruptcy, arbitration, declaratory relief or other litigation, the prevailing party shall be entitled to receive from the other Party or Parties thereto reimbursement for all reasonable attorneys’ fees and all reasonable costs, including but not limited to service of process, filing fees, court and court reporter costs, investigative costs, expert witness fees, and the cost of any bonds, whether taxable or not, and that such reimbursement shall be included in any judgment or final order issued in that proceeding. The “prevailing party” means the party determined by the court to most nearly prevail and not necessarily the one in whose favor a judgment is rendered.
   
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 j. Execution of the Agreement. The Company, the party executing this Agreement on behalf of the Company, and Employee, have the requisite corporate power and authority to enter into and carry out the terms and conditions of this Agreement, as well as all transactions contemplated hereunder. All corporate proceedings have been taken and all corporate authorizations and approvals have been secured which are necessary to authorize the execution, delivery and performance by the Company and Employee of this Agreement. This Agreement has been duly and validly executed and delivered by the Company and Employee and constitutes a valid and binding obligation, enforceable in accordance with the respective terms herein. Upon delivery of this Agreement, this Agreement, and the other agreements and exhibits referred to herein, will constitute the valid and binding obligations of Company, and will be enforceable in accordance with their respective terms. 
  
 k. Exclusive Agreement. This Agreement is the only agreement executed by and between the Parties related to the subject matter described herein. There are no additional oral agreements or other understandings related to the subject matter described herein. This Agreement shall be deemed to have been drafted jointly by the Parties hereto, and no inference or interpretation against any one Party shall be made solely by virtue of such Party allegedly having been the draftsperson of this Agreement. 
  
 l. Acknowledgments and Assent. The Parties acknowledge that they have been given adequate time to consider this Agreement and that they had the time and opportunity to consult with an independent attorney prior to signing this Agreement. The Parties agree that they have read this Agreement and understand the content herein, and freely and voluntarily assent to all of the terms herein. The Parties have each conducted sufficient and appropriate due diligence with respect to the facts and circumstances surrounding and related to this Agreement and the other Party. The Parties expressly disclaim all reliance upon, and prospectively waive any fraud, misrepresentation, negligence or other claim based on information supplied by the other Party, in any way relating to the subject matter of this Agreement. 
  
 m. Counterparts and Fax Signatures. This Agreement may be executed by .pdf and in one or more counterparts, each of which shall be deemed to be an original but all of which, taken together, constitute one and the same agreement.
  
 ***SIGNATURE PAGE FOLLOWS***
   
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 SIGNATURE PAGE
  
 IN WITNESS WHEREOF the Parties have executed this Employment Agreement effective as of the day and year first above written.
  
 	 EMPLOYEE
  
 BRIAN C. JOHNSON
	  
	 COMPANY
  
 DAIS ANALYTIC CORPORATION
	  

	  
	  
	  
	  
	  
	  

	  
	  
	  
	  
	  
	  

	 By:
	 Brian C. Johnson
	  
	 By:
	 Tim Tangredi
	  

	  
	 An individual
	  
	 Its:
	 President and Chief Executive OfficerPRTS_040819_EX_101

		
			SEPARATION AGREEMENT AND RELEASE OF CLAIMS
		

		
			 
		

		
			This Separation Agreement and Release of Claims (the “Agreement”) is made effective April 5, 2019 (the “Effective Date”), by and between Neil Watanabe (“Employee”) and U.S. Auto Parts Network, Inc., its officers, directors, employees, foreign and domestic subsidiaries, benefit plans and plan administrators, affiliates, agents, joint ventures, attorneys, successors and/or assigns (collectively referred to as “Company”). 
		

		
			RECITALS
		

		
			WHEREAS, Employee currently serves as the Chief Financial Officer of the Company, and Employee and Company have mutually agreed that Employee resign from the Company effective March 15, 2019 (the “Separation Date”), contingent upon the Company treating the separation as a termination without cause under the terms of his Employment Agreement dated March 23, 2015, by and between the Company and Employee and the terms of his equity grants previously entered into with the Company.
		

		
			WHEREAS, the parties desire to settle all claims and issues that have, or could have been raised by Employee in relation to Employee’s employment with Company and arising out of or in any way related to the acts, transactions or occurrences between Employee and Company to date, including, but not limited to, Employee’s employment with Company or the termination of that employment, on the terms set forth below. 
		

		
			THEREFORE, in consideration of the promises and mutual agreements hereinafter set forth, it is agreed by and between the undersigned as follows: 
		

		
			AGREEMENTS
		

		
			Based upon the foregoing, and in consideration of the mutual promises contained in this Agreement, Employee and the Company agree, effective upon the date of execution by Employee, as follows:
		

			
	
			
				 1.
			Severance Package.  In exchange for the promises set forth herein, Company agrees to provide Employee with the following payments and benefits (“Severance Package”), to which Employee is not otherwise entitled. Employee acknowledges and agrees that this Severance Package constitutes adequate legal consideration for the promises and representations made by Employee in this Separation Agreement.

			
	
			
				 (a)
			Severance Payment. Company agrees to provide Employee with a severance payment equal to twelve (12) months of Employee’s base salary, Three Hundred Twenty-One Thousand Four Hundred and Ninety-One United States Dollars and Four United States Cents ($321,491.04), less all applicable federal and state income and employment taxes (“Severance Payment”). The Severance Payment will be paid out on a bi-weekly basis over the twelve (12) month period beginning on the Company’s first regular payroll date occurring after the thirtieth (30th) day following the Separation Date in accordance with the Company’s 

		 

 

	payroll practices for its employees.  In addition, Company shall pay Employee Thirty-Four Thousand Eight Hundred Twenty-Seven United States Dollars and Fifty Two United States Cents ($34,827.52) a prorated portion of the bonus Employee would have received for 2019 had he otherwise been eligible to receive such bonus (as set forth in the terms of the employment agreement entered into by and between Employee and the Company) less all applicable federal and state income and employment taxes no later than 10 business days from the Effective Date.

			
	
			
				 (b)
			Continuation of Group Health Benefits. Provided that Employee elects to continue his group health care coverage pursuant to the applicable provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), and remains eligible for these benefits, Company agrees to (i) provide such COBRA coverage for Employee and those dependents of Employee who were enrolled as participants in Company’s group health care coverage as of the Separation Date to the extent required by law and  (ii) for the twelve (12) month period following the Separation Date  will provide such COBRA coverage at no cost to Employee.  

			
	
			
				 (c)
			Acceleration of Vesting of RSUs; Extension of Stock Option Exercise Period; Bonus for 2019. Company shall cause the vesting of Employee’s outstanding restricted stock unit (“RSU”) awards that are specifically identified in Exhibit A hereto (“Stock Awards”) to be automatically accelerated to 100% vested as of the Separation Date with the shares of the Company’s common stock, par value $ 0.001 per share (the “Common Stock”) underlying all of such RSU awards being delivered to Employee no later than 5 business days from the Effective Date.   In addition, all of Employee’s options vested as of the Separation Date shall remain exercisable by Employee until the earlier of (i) twelve (12) months following the Separation Date, (ii) the lapse of the maximum term of the stock option, or (iii) the lapse of the term of the stock option resulting from a change of control of the Company. Company shall be entitled to withhold applicable federal and state income and employment taxes related to the vesting contemplated by this Section 1(c) from amounts payable hereunder

			
	
			
				 (d)
			Additional Items. Employee will be entitled to permanently retain and own the mobile telephone previously provided to him by Company and Company will, by Friday, April 12, 2019, deliver to Employee a laptop computer containing the operating system and office programs currently used by Company.  Company will insure that this computer will not contain any of Company’s confidential or proprietary information. .  

			
	
			
				 2.
			 Tax Liability.  Employee assumes full responsibility for any and all taxes, interest and/or tax penalties that may ultimately be assessed upon any payments made by Company provided hereunder. In the event that any taxing authority seeks to collect taxes, interest and/or penalties from the Company on the consideration conveyed to Employee under this Agreement, Employee will hold the Company harmless from any and all claims for such taxes, interest and/or tax penalties and will indemnify the Company against any such tax-related claims, except and to the extent that the liability 

		 

 

	arises solely from the Company failing to withhold amounts from any such payments as provided or required by applicable provisions of federal, state or local law.

			
	
			
				 3.
			Acknowledgment.  The Company will pay Employee all salary, unreimbursed medical expenses of One Thousand and Sixty-Three United States Dollars and Seventy-Seven United States Cents ($1,063.77), commissions, distributions, and Company benefits due and owing as of the Separation Date, less appropriate withholdings and is not owed any monies allowed, including but not limited to those required under the California Labor Code, as of the Separation Date.  This sum is not consideration for this Agreement.  The Company will pay Employee for any vacation days that Employee has accrued but has not used as of the Separation Date.  This sum is likewise not consideration for this Agreement.   Information regarding the transfer or distribution of Employee’s USAP 401(k) Retirement Plan account (if applicable) will be provided to Employee under separate cover following the Separation Date.    

			
	
			
				 4.
			Non-Admission of Liability.  

		
			The Company hereby disclaims any wrongdoing against Employee.  Indeed, Employee agrees that neither this Agreement, nor the furnishing of the consideration for the release contained herein shall be deemed or construed at any time for any purpose as an admission by Company of any liability or unlawful conduct of any kind.
		

			
	
			
				 5.
			Mutual Releases.

			
	
			
				 (a)
			Company Release. To the extent permitted by applicable law, Employee, on behalf of Employee,  Employee’s spouse, successors, heirs, and assigns, hereby forever relieves, releases, and discharges the Company as well as its past, present and future officers, directors, administrators, shareholders, employees, agents, successors, subsidiaries, parents, assigns, representatives, brother/sister corporations, and all other affiliated or related corporations, all benefit plans sponsored by the Company, and entities, and each of their respective present and former agents, employees, or representatives, insurers, partners, associates, successors, and assigns, and any entity owned by or affiliated with any of the above (collectively, the “Released Parties”), from any and all claims, debts, liabilities, demands, obligations, liens, promises, acts, agreements, costs and expenses  (including but not limited to attorneys’ fees), damages, actions, and causes of action, of whatever kind or nature, including but not limited to any statutory, civil, administrative, or common law claims, whether known or unknown, suspected or unsuspected, fixed or contingent, apparent or concealed, arising out of any act or omission occurring before Employee’s execution of this Agreement, relating to Employee’s employment with, or the separation of Employee’s employment or other service with the Company (the “Employee Claims”),  including, but not limited to, any Claims arising from: (i) rights under federal, state, and local laws relating to the regulation of federal or state tax payments or accounting; (ii) federal, state or local laws that prohibit harassment or discrimination on the basis of race, national origin, religion, sex, gender, age, marital status, bankruptcy status, disability, perceived disability, ancestry, sexual orientation, family and medical leave, or any other form of harassment or discrimination or related cause of action (including but not limited to failure to maintain 

		 

 

	an environment free from harassment and retaliation, inappropriate comments or touching and/or “off-duty” conduct of other Company employees); (iii) statutory or common law Claims of any kind, including but not limited to, any alleged violation of Title VII of the Civil Rights Act of 1964, The Civil Rights Act of 1991, Sections 1981 through 1988 of Title 42 of the United States Code, as amended; The Employee Retirement Income Security Act of 1971, as amended, The Americans with Disability Act of 1990, as amended, the Age Discrimination in Employment Act, 29 U.S.C. Sections 621 et. seq., the Workers Adjustment and Retraining Notification Act, as amended; the Occupational Safety and Health Act, as amended, the Sarbanes-Oxley Act of 2002, the California Family Rights Act (Cal. Govt. Code § 12945.2 et. seq.), the California Fair Employment and Housing Act (Cal. Govt. Code § 12900 et. seq.), statutory provision regarding retaliation/discrimination for filing a workers’ compensation claim under Cal. Labor Code § 132a, California Unruh Civil Rights Act, California Sexual Orientation Bias Law (Cal. Lab. Code § 1101 et. seq.), California AIDS Testing and Confidentiality Law, California Confidentiality of Medical Information (Cal. Civ. Code § 56 et. seq.); (iv) contract, tort, and property rights, breach of contract, breach of implied-in-fact contract, breach of the implied covenant of good faith and fair dealing, tortious interference with contract or current or prospective economic advantage, fraud, deceit, invasion of privacy, unfair competition, misrepresentation, defamation, wrongful termination, tortious infliction of emotional distress (whether intentional or negligent), breach of fiduciary duty, violation of public policy, or any other common law Claim of any kind whatsoever; (v) severance pay, sick leave, family leave, liability pay, overtime pay, or vacation; and (vi) any Claim for damages or declaratory or injunctive relief of any kind.  The parties agree and acknowledge that the release contained in this Paragraph 5 does not apply to (i) any vested rights Employee may have under any 401(k) Savings Plan with the Company and any owned and vested rights Employee may have  under any employee welfare benefit plan (as such term is defined under Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended), and (ii) any and all claims and/or causes of action relating to the enforcement of the terms of this Agreement. Employee represents that at the time of the execution of this Agreement Employee suffers from no work-related injuries and has no disability or medical condition as defined by the Family Medical Leave Act.  Employee represents that Employee has no workers’ compensation claims that Employee intends to bring against the Company.  Employee understands that nothing contained in this Agreement, including, but not limited to, this Paragraph 5, will be interpreted to prevent Employee from filing a charge with a governmental agency or participating in or cooperating with an investigation conducted by a governmental agency, including the Equal Employment Opportunity Commission.  Employee further acknowledges that this release also releases the Company for all claims of unpaid wages, including unpaid overtime wages, related to Employee’s employment with the Company and subject to the terms of this Agreement.  

			
	
			
				 (b)
			Employee Release. To the extent permitted by applicable law, and except as to obligations arising under this Agreement, the Company hereby fully and forever releases and discharges Employee from any and all claims, demands,  actions, suits, causes of action, obligations, controversies, debts, costs, expenses, damages, and liabilities, of whatever kind or nature, direct or indirect, in law or equity whether known 

		 

 

	or unknown, vested or contingent, suspected or unsuspected, which existed in the past or which currently exist, and in any way related to Employee's employment and service relationship with the Company (the “Company Claims”). Together, the Employee Claims and the Company Claims are referred to herein as the “Claims”.

			
	
			
				 (c)
			Notwithstanding the foregoing, this Section 5 does not affect the parties' rights and obligations set forth in this Agreement and in the Prior Agreements referenced in Section 13(a) of this Agreement. 

			
	
			
				 (d)
			Mistakes in Fact; Voluntary Consent.  The Parties, and each of them, expressly and knowingly acknowledges that, after the execution of this Agreement, the Parties may discover facts different from or in addition to those that they now know or believe to be true with respect to the claims released in this Agreement.  Nonetheless, this Agreement shall be and remain in full force and effect in all respects, notwithstanding such different or additional facts and Employee intends to fully, finally, and forever settle and release those claims released in this Agreement.  In furtherance of such intention, the releases given in this Agreement shall be and remain in effect as full and complete releases of such claims, notwithstanding the discovery and existence of any additional or different claims and each of the Parties assume the risk of misrepresentations, concealments, or mistakes, and if the Parties should subsequently discover that any fact relied upon in entering into this Agreement was untrue, that any fact was concealed, or that Employee’s understanding of the facts or law was incorrect, neither Employee nor Company shall be entitled to set aside this Agreement or the settlement reflected in this Agreement or be entitled to recover any damages on that account.  

			
	
			
				 (e)
			Section 1542 of the California Civil Code.  Employee and the Company expressly waive any and all rights and benefits conferred by Section 1542 of the California Civil Code, which states as follows:

		
			A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN EMPLOYEE’S FAVOR AT THE TIME OF EXECUTING THE RELEASE, THAT IF KNOWN BY EMPLOYEE WOULD HAVE MATERIALLY AFFECTED EMPLOYEE’S SETTLEMENT WITH THE DEBTOR.
		

		
			Thus, notwithstanding the provisions of section 1542, and to implement a full and complete release and discharge of the Released Parties and Employee,  the parties expressly acknowledge the provisions of Sections 5(a) and 5(b) of this Agreement (collectively, the “General Release”) are intended to include in its effect, without limitation, all Claims Employee or the Company do not know or suspect to exist in Employee’s or the Company’s favor at the time of signing this Agreement, and that this General Release contemplates the extinguishment of any such Claim.  The parties warrant that each has read this General Release, including this waiver of California Civil Code section 1542, and that each has consulted counsel about this Agreement and specifically about the waiver of section 1542, and each understands this Agreement and the section 1542 waiver, and so that each party freely and knowingly enters into this Agreement.  Each party acknowledges that he or it may later discover facts different from 

		 

 

or in addition to those now known or believed to be true regarding the matters released or described in this General Release, and even so each party agrees that the releases and agreements contained in this General Release shall remain effective in all respects notwithstanding any later discovery of any different or additional facts.  Each party assumes any and all risk of its own mistake in connection with the true facts involved in the matters, disputes, or controversies released in this Agreement or with regard to any facts now unknown relating thereto.  Employee hereby expressly waives and relinquishes all rights and benefits under the foregoing section and any law of any other jurisdiction of similar effect with respect to Employee’s release of any unknown or unsuspected Employee Claims herein. The Company hereby expressly waives and relinquishes all rights and benefits under the foregoing section and any law of any other jurisdiction of similar effect with respect to the Company’s release of any unknown or unsuspected Company Claims herein.
		

		
			Accordingly, Employee knowingly, voluntarily and expressly waives any rights and benefits arising under Section 1542 of the California Civil Code and any other statute or principle of similar effect. The Company knowingly, voluntarily and expressly waives any rights and benefits arising under Section 1542 of the California Civil Code and any other statute or principle of similar effect.
		

			
	
			
				 (f)
			No Lawsuits.  Employee agrees to take any and all steps necessary to insure that no lawsuit arising out of any Employee Claim released herein shall ever be prosecuted by Employee or on Employee’s behalf in any forum, and hereby warrants and covenants that no such action has been filed or shall ever be filed or prosecuted.  Employee also agrees that if any Employee Claim is prosecuted in Employee’s name before any court or administrative agency that Employee waives and agrees not to take any award or other damages from such suit to the extent permissible under applicable law.

			
	
			
				 6.
			Confidential and Proprietary Information / Return of Company Property.  Employee acknowledges that as a result of Employee’s employment with the Company, Employee has had access to the Company’s confidential and proprietary business information, including, but not limited to, product information, pricing strategies, vendor and supplier information, business plans, research and development activities, manufacturing and marketing techniques, technological and engineering data, processes and inventions, legal matters affecting the Company and its business, customer and prospective customers information, trade secrets, bid prices, contractual terms and arrangements, prospective business transactions, and financial and business forecasts (“Confidential Information”).  Employee also acknowledges and reaffirms Employee’s compliance and ongoing obligation to comply with that certain Confidential Information and Invention Assignment Agreement previously entered into by and between Employee and the Company as of December 15, 2016 .  Confidential Information also includes information, knowledge or data of any third party doing business with the Company that the third party has identified as being confidential.  Employee agrees not to use or to disclose to anyone any Confidential Information at any time in the future without the prior written authorization of the Company, unless ordered to do so by law, subpoena, other legal process or a court of competent jurisdiction.  In any such event, Employee 

		 

 

	agrees to promptly notify the Company and to afford the Company the opportunity to take appropriate legal action prior to Employee’s disclosure of any Confidential Information.

		
			Employee understands and acknowledges that whether or not Employee signs this Agreement, Employee has both a contractual and common law obligation to protect the confidentiality of the Company’s trade secret information after the termination of Employee’s employment for so long as the information remains confidential. Except as otherwise provided herein, Employee further agrees to immediately return all Company property in Employee’s possession, including but not limited to all materials, documents, photographs, handbooks, manuals, electronic records, files, laptop computer, cellular telephones, keys and access cards, no later than two days after the Separation Date and Employee certifies that Employee has not and will not retain any Company property, trade secret or other operating or strategic information following the Separation Date.   
		

			
	
			
				 7.
			Resignation as Chief Financial Officer.  Effective as of the Separation Date, Employee hereby resigns from his position as Company’s Chief Financial Officer and all other employee and officer positions of Company, including other employee, officer and director positions of its subsidiaries and affiliates and Employee agrees to take any and all actions as may be necessary to effect such resignations on the Separation Date.

			
	
			
				 8.
			Non-Solicitation and Non-Disparagement.  Employee will not directly or indirectly for a period of one (1) year following the Separation Date, attempt to disrupt, damage, impair or interfere with the Company's business by raiding or hiring any of the Company's employees or soliciting any of them to resign from their employment by the Company, or by disrupting the relationship between the Company and any of its consultants, agents, representatives, vendors, customers and other business partners. Employee acknowledges that this covenant is necessary to enable the Company to maintain a stable workforce and remain in business.  Employee further agrees that, other than as required by law, subpoena, other legal process or a court of competent jurisdiction, Employee will not make any voluntary statements, written or oral, or cause or encourage others to make any statements that defame, disparage or in any way criticize the personal and/or business reputations, practices or conduct of Company or any of the other Company Released Parties. Company agrees that, other than as required by law, subpoena, other legal process or a court of competent jurisdiction, Company its employees, officers, directors or agents will not make any voluntary statements, written or oral, or cause or encourage others to make any statements that defame, disparage or in any way criticize the personal and/or business reputations, practices or conduct of Employee. Employee shall direct all individuals inquiring about Employee’s employment with the Company to the Company’s Human Resources Department, which will respond only with Employee’s last position and dates of employment. 

			
	
			
				 9.
			Remedies.    The parties  understand and agree that in the event of  a breach of  any provision of this Agreement, including the provisions set forth in Paragraphs 5, 6, or 8, then either party may seek any remedy available at law or equity, including, without 

		 

 

	limitation: (a) the non-breaching party shall have the right to apply for and receive an injunction to restrain any violation of this Agreement; and (b) the non-breaching shall have the right to immediately discontinue any enhanced benefit provided under this Agreement. In the event any action in law or equity, arbitration or other proceeding is brought for the enforcement of this Agreement or in connection with any of the provisions of this Agreement, the prevailing party shall be entitled to his or its attorneys' fees and other costs reasonably incurred in such action or proceeding. The remedies available to the Company pursuant to this Paragraph 9 are in addition to, and not in lieu of, any remedies which may be available under statutory and/or common law relating to trade secrets and the protection of the Company’s business interest generally. 

			
	
			
				 10.
			Non-assignment.  Employee represents and warrants that Employee has not assigned or transferred any portion of any Employee Claim or rights Employee has or may have to any other person, firm, corporation or any other entity, and that no other person, firm, corporation, or other entity has any lien or interest in any such Claim.  

			
	
			
				 11.
			Future Cooperation. Employee agrees to cooperate reasonably with the Company, its successors, and all the Company affiliates (including the Company’s outside counsel) in connection with the contemplation, prosecution and defense of all phases of existing, past and future litigation, regulatory or administrative actions about which the Company reasonably believes Employee may have knowledge or information. Employee further agrees to make himself available at mutually convenient times as reasonably deemed necessary by the Company’s counsel. The Company shall not utilize this Section to require Employee to make himself available to an extent that it would unreasonably interfere with employment responsibilities that he may have, and shall pay Employee a consulting rate of $150 per hour for his time in connection with such cooperation and reimburse Employee for any pre-approved reasonable business travel expenses that he incurs on the Company’s behalf as a result of this Section, after receipt of appropriate documentation consistent with the Company’s business expense reimbursement policy. Employee agrees to appear without the necessity of a subpoena to testify truthfully in any legal proceedings in which the Company calls him as a witness. Employee further agrees that, except as required by law, subpoena, other legal process or a court of competent jurisdiction, he shall not voluntarily provide information to or otherwise cooperate with any individual or private entity that is contemplating or pursuing litigation or any type of action or claim against the Company, its successors or affiliates, or any of their current or former officers, directors, employees, agents or representatives. 

			
	
			
				 12.
			Consideration and Revocation Period.  Employee may revoke Employee’s release of claims, insofar as it extends to potential claims under the Age Discrimination in Employment Act, by informing the Company of Employee’s intent to revoke Employee’s release within seven (7) calendar days following Employee’s execution of this Agreement.  Employee understands that any such revocation must be in writing and delivered by hand or by certified mail - return receipt requested - within the applicable period to Human Resources Department, 16941 Keegan Avenue, Carson, California 90746.  Employee understands that if Employee exercises Employee’s right to revoke, then the Company will have no obligations under this Agreement to Employee or to 

		 

 

	others whose rights derive from Employee other than the obligations set forth in Paragraph 3 of this Agreement.

		
			The Agreement shall not become effective or enforceable, until the revocation period identified above has expired.  The terms of this Agreement shall be open for acceptance by Employee for a period of twenty-one (21) calendar days following the Effective Date. Employee understands that Employee should, and the Company hereby advises Employee to, consult with legal counsel regarding the releases contained herein and to consider whether to accept the Company’s offer and sign the Agreement. Employee acknowledges that it has been Employee’s decision alone whether or not to consult with counsel regarding this Agreement. Employee acknowledges that no proposal or actual change that Employee or Employee’s counsel makes with respect to this Agreement will restart the 21-day period.
		

		
			Employee acknowledges that Employee was permitted to use as much of the 21-day consideration period as Employee wished prior to signing, but by Employee’s signature below Employee acknowledges that Employee has chosen to voluntarily execute this Agreement earlier and to waive the remaining days of such 21-day period.  
		

			
	
			
				 13.
			Miscellaneous Provisions

			
	
			
				 (a)
			Integration.  This Agreement, together with that certain Confidential Information and Invention Assignment Agreement previously entered into by and between Employee and the Company as of December 15, 2016, and the Indemnification Agreement previously entered into by and between Employee and the Company as of December 9, 2015 (together, the Confidential Information and Invention Assignment Agreement and the Indemnification Agreement are referred to herein as the “Prior Agreements”) , constitutes a single, integrated written contract expressing the entire Agreement of the parties concerning the subject matter referred to in this Agreement.  No covenants, agreements, representations, or warranties of any kind whatsoever, whether express or implied in law or fact, have been made by any party to this Agreement, except as specifically set forth in this Agreement.  All prior and contemporaneous discussions, negotiations, and agreements have been and are merged and integrated into, and are superseded by, this Agreement, including without limitation that certain Employment Agreement dated March 23, 2015 by and between the Employee and the Company.

			
	
			
				 (b)
			Modifications.  No modification, amendment, or waiver of any of the provisions contained in this Agreement shall be binding upon any party to this Agreement unless made in writing and signed by both of the parties to this Agreement.

			
	
			
				 (c)
			Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law and to carry out each provision herein to the greatest extent possible, but if any provision of this Agreement is held to be void, voidable, invalid, illegal or for any other reason unenforceable, the validity, legality and enforceability of the other provisions of this Agreement will not be affected or impaired thereby. 

		
			

		 

 

		

			
	
			
				 (d)
			Non-Reliance on Other Parties.  Except for statements expressly set forth in this Agreement, no party has made any statement or representation to any other party regarding a fact relied on by the other party in entering into this Agreement, and no party has relied on any statement, representation, or promise of any other party, or of any representative or attorney for any other party, in executing this Agreement or in making the settlement provided for in this Agreement.

			
	
			
				 (e)
			Negotiated Agreement.  The terms of this Agreement are contractual, not a mere recital, and are the result of negotiations between the parties.  Accordingly, no party shall be deemed to be the drafter of this Agreement.

			
	
			
				 (f)
			Successors and Assigns.  This Agreement shall inure to the benefit of and shall be binding upon the heirs, successors, and assigns of the parties hereto and each of them.  In the case of the Company, this Agreement is intended to release and inure to the benefit of any affiliated corporations, parent corporations, brother-sister corporations, subsidiaries (whether or not wholly owned), divisions, shareholders, officers, directors, agents, representatives, principals, and  employees.

			
	
			
				 (g)
			Applicable Law; Venue.  This Agreement shall be construed in accordance with, and governed by, the laws of the State of California without taking into account conflict of law principles.  Employee and the Company agree to submit to personal jurisdiction in the State of California and to venue in its courts. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

			
	
			
				 (h)
			Attorneys’ Fees.  In the event suit is brought to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to receive, in addition to any other relief, reasonable attorneys’ fees and costs.

			
	
			
				 (i)
			Continuing Obligations under Securities Law. Employee acknowledges that Employee continues to be subject to Company’s Insider Trading policy and agrees that if Employee is aware of material nonpublic information about Company at the Separation Date, Employee agrees not to trade in securities of Company or disclose material nonpublic information about Company to a third party other than on a need-to-know basis, until that information has become public or is no longer material.  Employee acknowledges that after the Separation Date Employee may continue to be subject to Section 16 of the Securities Exchange Act of 1934 (“Section 16”) and agrees to comply with the requirements of Section 16.  Employee acknowledges that Employee may continue to be an “affiliate” for purposes of federal securities law and agrees to sell Company stock in compliance with restrictions imposed by Rule 144 of the Securities Act of 1933.

			
	
			
				 (j)
			This Agreement may be executed via facsimile or by email in pdf format and in one or more counterparts, each of which shall be deemed an original, but all of which together constitute one and the same instrument, binding on the parties.

		
			

		 

 

		

		
			(k)This Agreement is intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), such Code Section hereinafter being referred to as “Section 409A.”    To the extent applicable, it is intended that the payments and benefits provided under this Agreement comply with the requirements of Section 409A, and this Agreement shall be interpreted in a manner consistent with this intent. Solely for purposes of determining the time and form of payments due under this Agreement or otherwise in connection with his termination of employment with the Company, Employee shall not be deemed to have incurred a termination of employment unless and until he shall incur a “separation from service” within the meaning of Section 409A. It is intended that each payment or installment of a payment and each benefit provided under this Agreement shall be treated as a separate “payment” for purposes of Section 409A. To the extent that the Company and Employee determine that any provision of this Agreement could reasonably be expected to result in Employee's being subject to the payment of interest or additional tax under Section 409A, the Company and Employee agree, to the extent reasonably possible as determined in good faith, to amend this Agreement, retroactively, if necessary, in order to avoid the imposition of any such interest or additional tax under Section 409A. All reimbursements and in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A to the extent that such reimbursements or in-kind benefits are subject to Section 409A, including, where applicable, the requirements that (i) any reimbursement is for expenses incurred during Employee's lifetime (or during a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year (except that a plan providing medical or health benefits may impose a generally applicable limit on the amount that may be reimbursed or paid), (iii) the reimbursement of an eligible expense will be made on or before the last day of the calendar year following the year in which the expense is incurred and (iv) the right to reimbursement is not subject to set off or liquidation or exchange for any other benefit.  Notwithstanding any other provision in this Agreement, if as of Employee's separation from service, Employee is a “specified employee” as determined by the Company, then to the extent any amount payable or benefit provided under this Agreement that the Company reasonably determines would be nonqualified deferred compensation within the meaning of Section 409A, for which payment is triggered by Employee 's separation from service, and that under the terms of this Agreement would be payable prior to the six-month anniversary of the Employee 's separation from service, such payment or benefit shall be delayed until the earlier to occur of (a) the six-month anniversary of such termination date or (b) the date of the Employee's death. In the case of taxable benefits that constitute deferred compensation, the Company, in lieu of a delay in payment, may require Employee to pay the full costs of such benefits during the period described in the preceding sentence and reimburse that Employee for such costs within thirty (30) calendar days after the end of such period. Nothing herein shall be construed as any guarantee by the Company of any particular tax treatment of any income or payments to Employee provided pursuant to this Agreement or other agreements or arrangements contemplated by this Agreement, and Employee remains solely responsible for all applicable taxes on such income and payments.  
		

		
			(l)Certain Rules of Construction.
		

		
			

		 

 

		

		
			(i)  The headings and subheadings set forth in this Agreement are inserted for the convenience of reference only and are to be ignored in any construction of the terms set forth herein.
		

		
			 
		

		
			(ii)  Wherever applicable, the neuter, feminine or masculine pronoun as used herein shall also include the masculine or feminine, as the case may be.
		

		
			 
		

		
			(iii)  The words “hereof,” “herein,” “hereunder” and similar words refer to this Agreement as a whole and not to any particular provision of this Agreement; and any subsection, Section, Schedule, Appendix or Exhibit references are to this Agreement unless otherwise specified.
		

		
			 
		

		
			  (iv)  References in this Agreement to “law,” “laws” or any statute or statutory provisions include a reference to such law, laws, statute or statutory provisions as from time to time amended, modified, reenacted, extended, consolidated or replaced (whether before or after the date of this Agreement), to any subordinate legislation made from time to time under such law, laws, statute or statutory provision and to regulations and other governmental guidance issued thereunder .
		

		
			 
		

		
			(v)  References to this Agreement or to any other document include a reference to this Agreement or to such other document as varied, amended, modified, novated or supplemented from time to time.
		

		
			 
		

		
			(vi)  References to “writing” or “written” include any non-transient means of representing or copying words legibly, including by facsimile or electronic mail.
		

		
			 
		

		
			(vii)  References to “$” are to United States Dollars.
		

		
			 
		

		
			(viii)  References to “%” are to percent.
		

		
			 
		

		
			EMPLOYEE ACKNOWLEDGES AND AGREES THAT EMPLOYEE HAS CAREFULLY READ AND VOLUNTARILY SIGNED THIS AGREEMENT, THAT EMPLOYEE HAS HAD AN OPPORTUNITY TO CONSULT WITH AN ATTORNEY OF EMPLOYEE’S CHOICE, THAT BY SIGNING THIS AGREEMENT, EMPLOYEE HAS UTILIZED OR WAIVES THE 21-DAY CONSULTING PERIOD, AND THAT EMPLOYEE SIGNS THIS AGREEMENT WITH THE INTENT OF RELEASING THE COMPANY AND ITS OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS FROM ANY AND ALL CLAIMS.
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

 

		

		
			ACCEPTED AND AGREED TO: 
		

		
			 
		

		
			Employee:U.S. Auto Parts Network, Inc.:
		

		
			 
		

		
			 
		

		
			/s/ Neil Watanabe/s/ David Meniane
		

		
			Signature Signature
		

		
			 
		

		
			April 5, 2019       April 5, 2019
		

		
			Date Date
		

		
			
		

		
			

		 

 

		

		
			EXHIBIT A 
		

		
			Stock Awards
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Grant

					
					
						  

					
					
						

Stock Awards with
Vesting
Acceleration

					
					
						 

				
	
					
						RSU #0001124

					
					
						  

					
					
						 

					
					
						31,177

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