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SEVERANCE AGREEMENT AND GENERAL RELEASE OF CLAIMS

            This Severance Agreement and General Release of Claims (hereinafter “Agreement”) is made and entered into between a.k.a. Brands, Inc. (“a.k.a. Brands” or “Employer”) and Jonathan Harvey (“Employee”) (hereinafter Employer and Employee are collectively referred to as “the Parties”), and is made in light of the following:

RECITALS

1.Employee was employed by Employer as an at-will employee from June 3, 2019, to January 31, 2022. Employee resigned from his/her employment at Employer effective January 31, 2022 (the “Separation Date”). Except as otherwise set forth in this Agreement, the Separation Date is the last date of employment for the Employee for all purposes, meaning the Employee is not entitled to any further compensation, monies, or other benefits from the Employer, including coverage under any benefit plans or programs sponsored by the Employer, as of the Separation Date. 

2.The Parties have now agreed to settle any and all disputes, now in existence or arising in the future, between Employer and Employee regarding the employment and Employee’s separation.

3.Employee’s health benefits, if any, shall cease on the last day of January (i.e., January 31, 2022) subject to the Employee’s right to continue his/her health insurance under COBRA and the provisions of the American Recovery and Reinvestment Act of 2009.  Employee’s participation in all benefits and incidents of employment ceased as of the Separation Date.

4.Employee acknowledges that Employer denies that Employee has any claims which may be asserted against it, but that Employer desires to avoid incurring any costs and expenses related to any possible claims, and desires to compensate Employee as the sole means of settlement by providing the severance benefits set forth herein.  Therefore, Employee makes this Agreement expressly recognizing that the making of this Agreement does not in any way constitute an admission of wrongdoing or liability on the part of Employer.

AGREEMENT
5.In consideration of this Agreement, Employer agrees that Employee shall receive severance pay of $122,975.06 which is the equivalent of six months of pay and the Employee cost of COBRA insurance coverage for six months which is the equivalent to $3,659.34. Employee shall be responsible for completing all forms and submitting all payments necessary to ensure COBRA insurance coverage. Provided this Agreement is not revoked pursuant to Paragraph 21, payment shall be made in one lump sum payable within twenty-one (21) days following Employer’s receipt of this Agreement signed by Employee.  This amount shall be treated as wages, with customary and ordinary withholdings pursuant to a W-2 to be issued by Employer.

6.On June 3, 2019 (the “Grant Date”), Excelerate, L.P. (“Holdings”) issued and sold to you 329,514 Incentive Units (the “Incentive Units”) pursuant to that certain Incentive Equity Agreement, by and between you and Holdings, dated as of the Grant Date (the “Incentive Equity 

Agreement”). Initially capitalized terms used but not otherwise defined in this paragraph 6 shall have the meaning ascribed to such terms in the Incentive Equity Agreement. 

Vesting of the Incentive Units will cease as of the Separation Date. On the Separation Date, 159,921.4 of the Incentive Units will be vested (the “Vested Units”) and the remaining 169,592.6 will be unvested (the “Unvested Units”). Pursuant to this Agreement and the Incentive Equity Agreement, all Unvested Units shall automatically be forfeited and cease to be outstanding as of the Separation Date, without any payment therefor.

7.Pursuant to the Employee’s Employment Agreement, Employer agrees that Employee shall receive a 2021 Incentive Bonus in an amount equal to $81,655.44, which amount has been reviewed and approved by the Compensation Committee. The 2021 Incentive Bonus shall be payable within twenty-one (21) days following Employer’s receipt of this Agreement signed by Employee. 

8.Employee acknowledges that Employee would not otherwise be entitled to consideration in the full amount set forth, with the exception of the payment of Employee’s 2021 Incentive Bonus, above were it not for Employee’s covenants, promises, and releases set forth hereunder.   Employee acknowledges and agrees that he/she has reported to Employer all hours worked and all business expenses entitled to reimbursement.  Employee further acknowledges and agrees that Employee has received his/her final paycheck and that upon receiving the Severance Payment, and Incentive Bonus that Employee will have received all wages and other compensation or remuneration of any kind due or owed from Employer,  but not limited to all wages, overtime, or other wage premiums, expense reimbursements, bonuses, advances, vacation pay, severance pay, and any other incentive-based compensation or benefits to which Employee was or may become entitled or eligible.

9.Employee agrees that he/she has reported all known or suspected workers’ compensation injuries as of the date of his/her execution of this Agreement.

10.Employee agrees to keep the terms of this Agreement confidential and not to disclose the terms of this Agreement including the amount paid to any other person, entity, or organization except as necessary for the enforcement or compliance with this Agreement.  Notwithstanding the foregoing, Employee may communicate the terms of this Agreement if compelled by subpoena or as otherwise required by law.  Employee may also communicate the terms of this Agreement to his/her spouse or registered domestic partner (common law or legal), legal counsel, tax advisors, accountants, and as reasonably necessary for purposes of credit, housing, education, immigration, and governmental tax authorities.  Employee understands it is his/her responsibility to advise those to whom he/she discloses the confidentiality provisions of this Agreement and secures their agreement not to communicate, discuss, disclose, disseminate, or publish the terms and conditions of this Agreement, except as allowed hereby. Nothing in this agreement prevents Employee from discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination, or any other conduct that Employee has reason to believe is unlawful.  This Section does not in any way restrict or impede Employee from exercising rights under the National Labor Relations Act (NLRA) or the federal securities laws, including the Dodd-Frank Act, to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does 

not exceed that required by the law, regulation, or order.  Employee shall promptly provide written notice of any such order to General Counsel (or his/her successor) at 100 Montgomery Street, Suite 1600 San Francisco, CA 94104.

11.Employee agrees that all employment reference checks initiated by Employee or at Employee’s request will be directed to Sonny Bains, Human Resources (or his/her successor), who will state only Employee’s dates of employment and position(s) held.

12.Employee agrees not to seek future employment with Employer.  or any of its subsidiaries, divisions, affiliates, companies, or businesses subsequently acquired by Employer.  Employer is entitled to reject without cause any application for employment with Employer or any related entities made by Employee, and is entitled to immediately discharge Employee should it be discovered by Employer or any related entities that Employee has obtained such employment.

13.Employee hereby (i) affirms his obligations under the following arrangements (collectively, the “Restrictive Covenants”): (A) Section 7 of that certain Employment Agreement, dated June 1, 2019, by and between Excelerate US, Inc. and Employee (the “Restrictive Covenants”) and (B) Section 6 of the Incentive Equity Agreement, and (ii) understands, acknowledges and agrees that the Restrictive Covenants will survive his termination of employment with Employer and remain in full force and effect in accordance with all of the terms and conditions thereof. 

14.The Parties agree that certain matters in which the Employee has been involved during the Employee's employment may need the Employee's cooperation with the Employer in the future. Accordingly, for a period of six (6) months after the Separation Date, to the extent reasonably requested by the Employer, the Employee shall cooperate with the Employer regarding matters arising out of or related to the Employee's service to the Employer, provided that the Employer shall make reasonable efforts to minimize disruption of the Employee's other activities. The Employer shall reimburse the Employee for reasonable expenses incurred in connection with this cooperation and, the Employer shall compensate the Employee at a rate equal to or greater than his former compensation for his/her time with the exception of providing testimony and/or preparing to testify.

15.Employee understands and acknowledges that during the course of employment with the Employer, the Employee has had access to and learned about confidential, secret protected, and proprietary documents, materials, and other information, in tangible and intangible form, of and relating to the Employer and its businesses and existing and prospective customers, suppliers, investors, and other associated third parties (“Confidential Information”). Employee further understands and acknowledges that this Confidential Information and the Employer’s ability to reserve it for the exclusive knowledge and use of the Employer is of great competitive importance and commercial value to the Employer, and that improper use or disclosure of the Confidential Information by the Employee may cause the Employer to incur financial costs, loss of business advantage, liability under confidentiality agreements with third parties, civil damages, and criminal penalties.

Employee agrees and covenants: (i) to treat all Confidential Information as strictly confidential; and (ii) not to directly or indirectly disclose, publish, communicate, or make 

available Confidential Information, or allow it to be disclosed, published, communicated, or made available, in whole or part, to any entity or person whatsoever.  Nothing in this Agreement shall be construed to prevent disclosure of Confidential Information as may be required by applicable law or regulation, or pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure does not exceed the extent of disclosure required by such law, regulation, or order.  Employee shall promptly provide written notice of any such order to General Counsel (or his/her successor) at 100 Montgomery Street, Suite 1600, San Francisco, CA 94104.

For purposes of this Agreement, Confidential Information includes, but is not limited to, all information not generally known to the public, in spoken, printed, electronic, or any other form or medium, relating directly or indirectly to: business processes, practices, methods, policies, plans, publications, documents, research, operations, services, strategies, techniques, know-how, trade secrets, vendor information, financial information, payroll information, staffing information, personnel information, employee lists, supplier lists, vendor lists, customer and client lists, potential customer and client lists.  Employee understands that the above list is not exhaustive, and that Confidential Information also includes other information that is marked or otherwise identified or treated as confidential or proprietary, or that would otherwise appear to a reasonable person to be confidential or proprietary in the context and circumstances in which the information is known or used.

Nothing in this agreement or this Section 12 prevents Employee from discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination, or any other conduct that Employee has reason to believe is unlawful.  

16.Employee acknowledges and agrees that as of the Separation Date that he/she has returned all Employer property, including uniforms, safety equipment, identification cards or badges, access codes or devices, keys, laptops, computers, telephones, mobile phones, hand-held electronic devices, credit cards, electronically stored documents or files, electronic passwords, physical files, and any other Employer property in the Employee’s possession.  Employee further acknowledges and agrees that he/she will permanently delete any digital Employer property such as files, passwords, or e-mails that may be stored on any personal device.  Should any question arise as to any Employer property stored on any digital device, Employee agrees to provide a forensic image of said digital device at his/her own expense within five days of the request from the Employer.

17.Employee, on behalf of him/herself, his/her relatives, heirs, estate, executors, administrators, successors and assigns, fully releases and discharges Employer and Employer’s current and/or former board members, officers, directors, partners, shareholders, employees, independent contractors, representatives agents or attorneys, both individually and in their business capacities, and their employee benefit plans and programs and their administrators and fiduciaries parents, subsidiaries, divisions or affiliated organizations or corporations (and its current and/or former board members, officers, directors, partners, shareholders, employees, independent contractors, representatives agents or attorneys, both individually and in their business capacities, and their employee benefit plans and programs and their administrators and fiduciaries) whether previously or hereafter affiliated in any manner, and the respective predecessors, successors and assigns (collectively, the “Released Parties”) to the full extent 

permitted by law from all actions, causes of action, claims, judgments, obligations, damages, and liabilities of whatsoever kind and character, including but not limited to, any actions, causes of action, claims, judgments, obligations, damages, or liabilities relating to his employment with and separation from Employer, including, but not limited to, those arising out of any claims for violation of any alleged contract, express or implied; any covenant of good faith and fair dealing, whether express or implied; any tort; any administrative remedy; any federal, state, or local law, statute or regulation based on or related to the Americans with Disabilities Act (42 U.S.C. §§ 12101-12213), WARN and Cal-WARN, Occupational Safety and Health Act (“OSHA”) and Cal-OSHA, the Families First Coronavirus Act any state or local sick leave or coronavirus rules, regulations, or ordinances, California state and locally mandated sick leave,  the California Consumer Privacy Act (“CCPA”) the Family Medical Leave Act (29 U.S. C. 2601-2654), the California Family Rights Act (Gov. Code §§ 12945.1-12945.2), the Age Discrimination in Employment Act (29 U.S.C. §§ 621-634), Title VII of Civil Rights of 1964 (42 U.S.C. §§ 200-2000 (e)-1-17), the Civil Rights Act of 1991, the California Family Rights Act (Gov. Code §§ 12900-12996), the California Bane Act, the California Ralph Act, the Fair Labor Standards Act of 1938 (29 U.S.C. §§ 201, et seq.(to the extent claims under the FLSA can be released),  the California Fair Employment and Housing Act (Gov. Code §§ 12900, et seq.), the California Unruh Civil Rights Act (Civ. Code § 51, et seq.) California’s Industrial Welfare Commission Wage Orders, or the California Labor Code (including but not limited to claims under Lab. Code §§132a, 4553, 201 – 204, 210. 216, 221, 223, 226, 226.8, 246, 510, 512, 558, 558.1, 1102.5 1174, 1174.5, 1194, 1199, 2810.5, 1400 – 1408, and/or 2698 – 2699.5), except for workers’ compensation benefits or unemployment insurance benefits.

The Parties acknowledge and agree that Employee will be paid a 2021 Incentive Bonus pursuant to the terms of the Employee’s Employment Agreement.  This release is intended to cover and release any and all claims and disputes as to the amount of the Incentive Bonus paid to Employee, which the Parties acknowledge is determined and approved at the sole discretion of the Compensation Committee.  The Parties acknowledge and agree that if there is any good faith dispute with respect to any wage and hour claims, that the consideration set forth above includes a good faith, reasonable compromise and settlement regarding any such claims and that any such claims are released herein.  

Further, Employee represents and warrants that Employee has not filed any lawsuits, complaints, charges, or grievances against Employer and/or its current and/or former board members, officers, directors, partners, shareholders, employees, independent contractors, representatives agents or attorneys, both individually and in their business capacities, and their employee benefit plans and programs and their administrators and fiduciaries with any court or government agency arising out of Employee’s employment with and separation from Employer except for workers’ compensation or unemployment insurance benefits, or as otherwise required by law.  Further, Employee agrees that under this Agreement, Employee waives any claim for damages incurred at any time after the date of this Agreement because of alleged continuing effects of any alleged unlawful acts or omissions involving the employment with and separation from Employer, any right to sue for injunctive relief against the alleged continuing effects of alleged acts or omissions. 

18.In consideration of the promises of Employer contained in this Agreement, Employee agrees that by signing this Agreement Employee represents that he/she has not filed any  grievance, claim, or complaint of any kind against Employer from his/her employment and 

separation, except as may be necessary to enforce the terms of this Agreement, or for workers’ compensation or unemployment insurance benefits or as otherwise required or permitted by law.    The preceding notwithstanding, nothing in this Severance Agreement prohibits or prevents Employee from filing a charge with or participating, testifying or assisting in any investigation, hearing whistleblower action or other proceeding before any federal, state or local government agency (e.g., EEOC, DFEH, NLRB, SEC, etc.), nor does anything in this Severance Agreement preclude, prohibit or otherwise limit, in any way, Employee’s rights and abilities to contact, communicate with, report matters to or otherwise participate in any whistleblower program administered by any such agencies.  However, to the maximum extent permitted by law, Employee agrees that if such an administrative claim is made, Employee shall not be entitled to recover any individual monetary relief or other individual remedies.

19.If any claim is not subject to release, to the extent permitted by law, Employee acknowledges and agrees that by virtue of this settlement he/she is no longer an aggrieved party and waives any right to participate in any representative action based on such a claim in which Employer, including any and all parent corporation, affiliates, subsidiaries, managers, divisions, predecessors, insurers, successors and assigns, and each of their current and former employees, attorneys, officers, directors and agents thereof, both individually and in their business capacities, and their employee benefit plans and programs and the trustees, administrators, fiduciaries and insurers of such plans and programs, is a party.

20.A “covenant not to sue” is a legal term that means Employee promises not to file a lawsuit in court.  It is different from the general release contained in Paragraph 14 above.  Besides waiving and releasing the claims above, Employee represents and warrants that he/she has not filed, and agrees that he/she will not file, or cause to be filed, any letter with the Labor Workforce Development Agency (“LWDA”), judicial complaint or lawsuit involving any claims released in this Agreement or any claims seeking any civil penalties on behalf of herself or any third party including but not limited to the State of California, and agrees to withdraw any LWDA letters, judicial complaints or lawsuits that have filed, prior to the Effective Date of this Agreement.  Notwithstanding this Covenant Not to Sue, the Parties may bring a claim against the other party to enforce the terms of this Agreement.

21.Employee further agrees not to initiate, encourage, cause, direct, assist, support or counsel other individual(s) including but not limited to Employer’s current or former employees to file any lawsuit, charge, complaint, claim, petition, or accusatory pleading against Employer except as may be required pursuant to a lawfully served subpoena.

22.Employee expressly warrants that he/she has not transferred to any other person or entity any of the rights or causes of action released in this Agreement, whether as part of the general release contained in Paragraph 14 above or otherwise.

23.Employee understands and expressly agrees that this Agreement extends to all claims of every nature and kind whatsoever, known or unknown, suspected or unsuspected, past or present, and waives all rights under California Civil Code Section 1542, which states as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.

Initials _________

Thus, notwithstanding the provisions of Section 1542, and to implement a full and complete release and discharge of the Released Parties, Employee expressly acknowledges this Agreement is intended to include in its effect, without limitation, all claims Employee does not know or suspect to exist in Employee’s favor at the time of executing this Agreement, and that this Agreement contemplates the extinguishment of any such claims.  Employee warrants Employee has read this Agreement, including this waiver of California Civil Code Section 1542, and that Employee has consulted with or had the opportunity to consult with counsel of Employee’s choosing about this Agreement and specifically about the waiver of Section 1542, and that Employee understands this Agreement and the Section 1542 waiver, and so Employee freely and knowingly enters into this Agreement.  Employee further acknowledges that Employee later may discover facts different from or in addition to those Employee now knows or believes to be true regarding the matters released or described in this Agreement, and even so Employee agrees that the releases and agreements contained in this Agreement shall remain effective in all respects notwithstanding any later discovery of any different or additional facts.  Employee expressly assumes any and all risk of any mistake in connection with the true facts involved in the matters, disputes or controversies released or described in this Agreement or with regard to any facts now unknown to Employee relating thereto.

24.Employee acknowledges that Employee already has attained the age of 40 and understands that this is a full release of all existing claims whether currently known or unknown including, but not limited to, claims for age discrimination under the Age Discrimination in Employment Act (“ADEA”).

Employee further acknowledges that Employee has been advised to consult with an attorney of Employee’s own choosing before signing this Agreement, in which Employee waives important rights, including those under the ADEA.

By executing this Agreement, Employee also acknowledges that Employee has been afforded at least twenty-one (21) calendar days to consider the meaning and effect of this Agreement and to discuss the contents and meaning of this Agreement, as well as the alternatives to signing this Agreement, with an attorney of Employee’s choosing, and has taken advantage of that opportunity to the extent Employee wished to do so.  Employee agrees that the 21-day consideration period began on the date this Agreement first was delivered to Employee and that if Employer changes any of the terms of the offer contained in this Agreement (whether the 

changes are material or not), the 21-day consideration period shall not be restarted but shall continue without interruption.

Employee understands that the releases contained in this Agreement do not extend to any rights or claims that Employee has under the ADEA that first arise after execution of this Agreement.

If Employee signs this Agreement before the 21-day consideration period expires, the 7-day revocation period (described below) immediately shall begin.  If Employee signs this Agreement before the 21-day consideration period expires, Employee agrees that Employee knowingly and voluntarily has accepted the shortening of the 21-day consideration period and that Employer has not promised Employee anything or made any representations that are not contained in this Separation Agreement.  In addition, if Employee signs this Agreement before the 21-day consideration period expires, Employee acknowledges and affirms that the Company has not threatened to withdraw or alter the offer contained in this Agreement prior to the expiration of the 21-day consideration period.

Employee may revoke this Agreement for a period of seven (7) calendar days following the date Employee executes this Agreement.  Any revocation during this period must be submitted in writing and state, “I hereby revoke my acceptance of our Confidential Severance Agreement.”  The revocation must be delivered to General Counsel (or his/her successor) at 100 Montgomery Street, Suite 1600, San Francisco, CA 94104, and postmarked within seven (7) calendar days after Employee’s execution of this Agreement.  If the last day of the revocation period falls on a Sunday or legal holiday in the state of California, then the revocation period shall not expire until the next following day which is not a Sunday or legal holiday in the state of California.  Employee’s revocation call be effective if and only if it is delivered within the 7-day revocation period by one or more of the following means: (i) by registered United States mail or (ii) by overnight courier.  The foregoing notwithstanding, this Agreement shall not become effective and enforceable until the 7-day revocation period has expired.

25.Employee represents and acknowledges that in executing this Agreement, Employee did not rely and has not relied upon any representation or statement not set forth herein made by or on behalf of Employer, and that this Agreement sets forth the entire agreement between the Parties.

26.Employee represents and agrees that Employee has been advised to discuss this Agreement with an attorney, and that Employee has carefully read and fully understands all of the provision of the Agreement, that Employee is voluntarily entering into this Agreement, and that Employee has the capacity to enter into this Agreement.

27.The Parties agree that should any portion, word, clause, phrase, sentence or paragraph of this Agreement be declared void or unenforceable, such portion shall be considered independent and severable from the remainder, the validity of which shall remain unaffected.

28.This Agreement sets for the entire Agreement between the Parties and fully supersedes any and all prior agreements or understandings between the Parties pertaining to the subject matter hereof.  This Agreement may not be modified, altered or changed except in writing and signed by both Parties wherein specific reference is made to this Agreement.

29.This Agreement is made and entered into in the State of California and shall in all respects be interpreted and enforced and governed by and under the law of the State of California.

30.In addition to remedies allowed by law, in the event legal action is required to enforce this Agreement, the prevailing party shall be entitled to all costs expended including reasonable attorney’s fees.

31.This Agreement may be executed in any number of counterparts.  Any such counterpart when executed shall constitute an original of the Agreement and all such counterparts together shall constitute one and the same agreement.

PRIOR TO EXECUTION OF THIS SETTLEMENT AGREEMENT, EMPLOYEE FURTHER UNDERSTANDS AND ACKNOWLEDGES THAT ANY MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS SETTLEMENT AGREEMENT DO NOT RESTART OR AFFECT IN ANY MANNER THE ORIGINAL 21 CALENDAR DAY CONSIDERATION PERIOD.

EMPLOYEE REPRESENTS THAT HE/SHE HAS CAREFULLY READ THIS AGREEMENT AND KNOWS ITS CONTENTS AND FULLY UNDERSTANDS IT; THAT HE/SHE HAS HAD AT LEAST 5 BUSINESS DAYS FROM THE TIME HE/SHE WAS PRESENTED THIS AGREEMENT TO CONSULT WITH AN ATTORNEY AND HAVE IT FULLY EXPLAINED TO HIM/HER BY AN ATTORNEY OF HIS/HER CHOICE AND HAS EITHER DISCUSSED THIS AGREEMENT WITH AN ATTORNEY OR HAS VOLUNTARILY CHOSEN TO SIGN IT WITHOUT CONSULTING AN ATTORNEY; THAT HE/SHE HAS HAD THE OPPORTUNITY TO HAVE IT FULLY EXPLAINED TO HIM/HER IN HIS/HER PREFERRED LANGUAGE; THAT HE/SHE FULLY UNDERSTANDS ITS FINAL AND BINDING EFFECT; THAT THE ONLY PROMISES MADE TO HIM/HER TO SIGN THIS AGREEMENT ARE THOSE STATED ABOVE; AND THAT HE/SHE IS SIGNING IT VOLUNTARILY.  EMPLOYEE MAY SIGN THE AGREEMENT PRIOR TO THE 5 BUSINESS DAYS FROM BEING PRESENTED THE AGREEMENT AS PROVIDED BY GOVERNMENT CODE SECTION 12964.5 OR THE 21 CALENDAR DAYS PROVIDED FOR BY THE ADEA.  THESE TIME PERIODS RUN CONCURRENTLY.  IF EMPLOYEE SIGNS THE AGREEMENT PRIOR TO THE EXPIRATION OF EITHER 5 BUSINESS DAYS AND/OR 21 CALENDAR DAYS FROM BEING PRESENTED THE AGREEMENT, EMPLOYEE REPRESENTS THAT HE/SHE DID SO  KNOWINGLY AND  VOLUNTARILY AND WAS NOT INDUCED BY EMPLOYER THROUGH FRAUD, MISREPRESENTATION, AND/OR A THREAT TO WITHDRAW OR ALTER THE OFFER PRIOR TO THE EXPIRATION OF THE CONSULTATION PERIOD, OR BY PROVIDING DIFFERENT TERMS FOR SIGNING EARLIER THAN THE EXPIRATION OF THE 5 BUSINESS DAY CONSULTATION PERIOD AND/OR 21-DAY REVIEW PERIOD.

                                                                        Employee

Dated: _____________________                  _________________________________________

                                                                        Address:          6001 Carlton Way #208
Los Angeles, CA 90028

Employer 

Dated: _____________________                  _________________________________________

Its: ______________________________________Document

			
	NEUROMetrix

 

December 30, 2020

Shai N. Gozani, M.D., Ph.D.  

Dear Dr. Gozani:
Employment Agreement

On behalf of NeuroMetrix, Inc. (the “Company”) and the Board of Directors, the Compensation Committee of the Board of Directors confirms your employment under the following terms:
•Title & Responsibilities:  President, Chief Executive Officer and Chairman of the Board of Directors.  In this position, you will guide the strategic direction of the Company and oversee its day-to-day operations.  You will also have such other duties as are assigned to you from time-to-time by the Board of Directors.

•Base Salary:   The Company will pay you an annual salary (“Base Salary”) of $415,000, subject to periodic review and adjustment at the discretion of the Company. Base salary will be a combination of cash and NeuroMetrix, Inc. (NURO) equity. During 2021, cash compensation will be at the amount required to meet employment standards of the Commonwealth of Massachusetts and the employee share of medical and other insurance benefits. These are currently estimated to total approximately $25,000. Equity compensation (common stock or common stock options) will provide the remainder of Base Salary in the approximate amount of $390,000, valued based on Black Scholes. The cash/equity blend of base salary will be reviewed annually.       
 
•Variable Compensation:  You will be eligible to receive an annual performance bonus of up to 62.5% of your Base Salary.  The Company shall consider and make a bonus determination not later than 90 days after the end of each fiscal year during which you are employed by the Company. The Company will pay such bonus to you in cash or stock before the end of the fifth month following the fiscal year. Bonus awards shall be determined by the Company in its sole discretion.

•Long Term Equity Incentive.  You will be eligible for future stock option grants at the discretion of the Compensation Committee of the Board of Directors. You will continue to participate in the Management Retention and Incentive Plan. Your Percentage Interest in a Change of Control Transaction, as defined under the Plan, is 5.6%.   

•Benefits: The Company will provide medical insurance coverage and other benefits on the same terms and conditions as provided to the Company’s employees or other senior executives from time to time. 

•Vacation: You will be eligible to receive 27 vacation days per year of employment, which accrues on a prorated basis and shall be treated in a manner consistent with the Company’s Employee Handbook, as amended from time to time.  You also will be eligible for paid holidays and personal days recognized by the Company as set forth in the Company’s Employee Handbook, as amended from time to time. 
    62 Fourth Avenue   Waltham, MA 02451 tel. 781.890.9989 fax. 781.890.1556    www.neurometrix.com

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Other Terms:  This agreement commences on January 1, 2021 for a term of three (3) years, but your employment will be on an at-will basis, meaning that either you or the Company may terminate employment for any reason and at any time, with or without notice. 
 
You have signed the Company’s standard form of Confidentiality and Non-Compete Agreement (attached below). Please note that the provisions of that Agreement survive your employment with the Company. 
 
•Separation Benefits:  

•If the Company terminates your employment for Cause or if you resign other than for Good Reason, you will not be entitled to any separation benefits as described in this section (the “Separation Benefits”).

•If, other than within 6 months prior to or 12 months following a Change in Control, the Company terminates your employment for any reason other than Cause or if you resign for Good Reason, you will be entitled to receive monthly payments based on your Base Salary of $415,000 for a period of 12 months from the date of termination (the “Severance Period”).   

•If, within 6 months prior to or 12 months following a Change in Control, the Company terminates your employment for any reason other than Cause or if you resign for Good Reason, you will be entitled to receive monthly payments based on your Base Salary of $415,000 for a period of 12 months from the date of termination (the Severance Period).  In addition, the Company will accelerate your right to exercise shares under any stock options granted to you by the Company.

•If you die or become totally disabled (as defined by the Company’s long term disability insurance coverage), the Company will accelerate your right or the right of your Personal Representative to exercise shares under any stock options granted to you by the Company.

You will be entitled to the severance and acceleration of options described above so long as the ending of your employment constitutes a separation from service as defined in Section 409A of the Internal Revenue Code.  During the Severance Period (but not for a period longer than your entitlement to COBRA continuation coverage), the Company will continue to contribute to your medical insurance coverage, which, subject to your eligibility, will be extended to you under the law known as COBRA at the same rate as if you continued to be employed by the Company.  Notwithstanding the foregoing, your receipt of the Separation Benefits described in this paragraph will be subject, in all cases, to your execution, on or before the 21st day following its presentation to you (which shall occur no more than 14 days after the Date of Termination) of a release of any and all claims that you may then have against the Company in connection with your employment in a form that is satisfactory to the Company (the “Release”) and the effectiveness and irrevocability of the Release upon its execution or the earliest day after its execution as is permitted by law.  Payments 

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of continuation of compensation owed pursuant to this paragraph will occur on the regular payroll payment dates for the Company beginning with the first regular payroll payment date that occurs on or after the date that is 45 days after your termination or resignation (with the first payment to include the full amount owed for continuation of compensation for the payroll period to which such payment date relates and any prior payroll periods for which payment was not yet made).

•Definitions:  For purposes of this Agreement, “Cause” shall mean a vote by the Board resolving that you shall be dismissed as a result of (i) your material breach of any agreement between you and the Company; (ii) your conviction of or plea of nolo contendere to a felony or a crime involving moral turpitude; or (iii) any material misconduct or willful and deliberate non-performance (other than by reason of disability) by you of your duties to the Company.  However, for any reason specified in (i) or (iii), if the Board makes a good faith judgment that the cause is capable of being cured within fifteen (15) days, it shall specify the reason and give you fifteen (15) days from the date of its notice to effect a cure and if after such fifteen (15) days in the judgment of the Board you have not done so, the Board’s vote of dismissal shall be final.

Resignation for “Good Reason” shall mean your resignation following your prior written notice to the Company that the Company has materially breached this agreement (with such written notice to describe such material breach in detail), provided that (i) such written notice is provided within thirty (30) days after the initial existence of such breach, (ii) such breach has, in fact, occurred and remains uncured by the Company for thirty (30) days following its receipt of such written notice (the “Cure Period”), (iii) you resign upon not less than 30 days’ nor more than 60 days’ prior written notice and (iv) you provide the Company with the written notice of your resignation on or before the fifteenth (15th) day after the end of the Cure Period.  For purposes of this paragraph, a “material breach” shall mean (i) a material reduction in your base salary other than as part of a broader executive pay reduction; (ii) a material reduction in your incentive compensation participation level other than as part of a broader executive reduction; (iii) a material change in the employment benefits made available to you if such change does not similarly affect all employees of the Company eligible for such benefits; (iv) a material reduction in your duties, responsibilities, or authority as then in effect; (v) failure to be reelected to the Board of Directors or (vi) a requirement that you relocate except for relocations that would not increase your one way commuting distance by more than 35 miles.

“Change in Control” shall be deemed to occur as of the date that: (i) the Company completes a reorganization, merger, consolidation, sale or other disposition of all or substantially all of the assets of the Company whether held directly by the Company or by a subsidiary of the Company; (ii) a change in the composition of the Company’s Board of Directors which results in the replacement of more than fifty percent (50%) of the Company’s Board of Directors within a period of 12 months; (iii) acquisition by any individual, entity, or group resulting in such individual, entity or group having ownership of fifty percent (50%) or more of either (a) the then-outstanding shares of common stock of the Company, or (b) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors; or (iv) approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.

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•Section 409A:  Solely for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), each periodic severance payment made pursuant to this agreement shall be considered a separate payment.   Anything in this agreement to the contrary notwithstanding, if at the time of your termination or resignation, you are considered a ‘specified employee’ within the meaning of Section 409A(a)(2)(B)(i) of the Code, and if any payment that you become entitled to under this agreement would be considered deferred compensation subject to interest and additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, then no such payment shall be payable prior to the date that is the earlier of (i) six months and one day after your separation from service, or (ii) your death.

•Arbitration of Disputes:  Any dispute arising hereunder or arising out of your employment, termination thereof, or any other relations with the Company, whether sounding in tort or contract, by statute or otherwise, including, but not limited to claims of employment discrimination, shall be settled by arbitration in Boston, Massachusetts, in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association before a single Arbitrator.  Notwithstanding the foregoing, disputes arising under the Confidentiality and Non-compete Agreement shall not be subject to arbitration.

•Taxation:  You understand that payments made pursuant to this agreement may be subject to applicable federal and state withholdings.

•Entire Agreement: This agreement, the Confidentiality and Non-Compete Agreement and the Option Agreement set forth the entire agreement and understanding between you and the Company regarding all subjects covered herein, the terms of which may not be changed or modified except by agreement in writing signed by you and the Company.

•Severability: Should any provision of this agreement, or portion thereof, be found invalid and unenforceable, the remaining provisions shall continue in force and effect.

•Governing Law: This agreement shall be governed, construed and enforced in accordance with the laws of the Commonwealth of Massachusetts, without regard to principles of conflict of law.

Please contact me if you have any questions regarding this offer.  Should the above meet with your approval, please acknowledge your acceptance of this offer by signing as indicated below.  This offer shall expire if not accepted in writing within seven days of the date of this letter.

Sincerely,

NEUROMETRIX, INC.

By:  ______________________________            
David Goodman, M.D., MSE
Compensation Committee of the Board of Directors

        

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ACCEPTED:     __________________________          Date:    ___________________
         Shai N. Gozani, M.D., Ph.D.            

NEUROMETRIX, INC.
CONFIDENTIALITY & NON-COMPETE AGREEMENT

In consideration of and as a condition to my employment by NeuroMetrix, Inc. (the “Company”), and the compensation now and hereafter paid to me by the Company and other good and valuable consideration, the sufficiency of which I hereby acknowledge, I hereby execute this Confidentiality & Non-Compete Agreement (the “Agreement”) and agree to the following:

1.Confidential Information.

a)Company Information.  I agree at all times during the term of my employment and thereafter to hold in strictest confidence, and not to use, except for the benefit of the Company, or to disclose to any person, firm or corporation without the prior written authorization of a duly authorized officer of the Company, any Confidential Information of the Company.  I understand that “Confidential Information” means any Company proprietary information, technical data, trade secrets or know-how, including, but not limited to, research and development information, product plans, products, services, customer lists and customers, Work Product (as defined below), suppliers, software developments, inventions, processes, formulas, technology, designs, drawings, engineering information, hardware configuration information, marketing information, costs, pricing, finances or other business information disclosed to me by the Company either directly or indirectly in writing, orally or by drawings or inspection of parts or equipment either before or after the commencement of my employment.  I further agree that all Confidential Information shall at all times remain the property of the Company.  I understand that Confidential Information does not include any of the foregoing items which have become publicly known or made generally available through no wrongful act of mine.

b)Third-Party Information.  I recognize that the Company has received and in the future will receive from third parties their confidential or proprietary information subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes.  I agree to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person, firm or corporation or to use it except as necessary in carrying out my work for the Company consistent with the Company’s agreement with such third party.

2.Work Product.

a)Assignment of Work Product.  I agree that I will promptly make full written disclosure to the Company and will hold in trust for the sole right and benefit of the Company, and I hereby assign to the Company, or its designee, all my right, title and interest in and to any and all inventions, original works of authorship, developments, concepts, improvements or trade secrets, of whatever nature and whether or not patentable or registrable under copyright or similar laws, which I may solely or jointly with others conceive or develop or reduce to practice, or cause to be conceived or developed or reduced to practice, during the period of time I am in the employ of the Company or during a period of one (1) year after the end of my employment (collectively referred to as “Work Product”).  However, Work Product shall not include any invention, original work of authorship, development, concept, improvement, or trade secret which I developed entirely on my own time without using the Company’s equipment, supplies, facilities, or trade secret information unless the invention, original work of authorship, development, concept, improvement, or trade secret (i) related at the time of conception or reduction to practice to the Company’s business, or actual or demonstrably anticipated research or development of the Company, or (ii) resulted from work which I performed for the Company.  Without limiting the foregoing, I further acknowledge that all 

6

original works of authorship which are made my me (solely or jointly with others) within the scope of my employment and which are protectable by copyright are “works made for hire”, as that term is defined in the United States Copyright Act.

b)Maintenance of Records.  I agree to keep and maintain adequate and current written records of all Work Product made by me (solely or jointly with others) during the term of my employment by the Company.  The records will be in form of notes, sketches, drawings, and any other format that may be specified by the Company.  The records will be available to and remain the sole property of the Company at all times.

c)Patent and Copyright Registrations.  I agree to assist the Company, or its designee, at the Company’s expense, in every proper way to secure the Company’s rights in the Work Product and any copyrights, patents, mask work rights or other intellectual property rights relating thereto in any and all countries, including the disclosure to the Company of all pertinent information and data with respect thereto and the execution of all applications, specifications, oaths, assignments and all other instruments which the Company shall deem necessary in order to apply for and obtain such rights and in order to assign and convey to the Company, its successors, assigns and nominees to sole and exclusive rights, title and interest in and to such Work Product, and any copyright, patents, mask work rights or other intellectual property rights relating thereto.  This provision shall survive the termination of my employment by the Company, whether with or without cause.

3.Returning Company Property.  I agree that, at any time upon request of the Company, and in any event at the time of the termination of my employment by Company, I will deliver to the Company (and will not keep in my possession or deliver to anyone else) any and all devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, materials, equipment, other documents or property, or reproductions of any of the aforementioned items, containing Confidential Information or otherwise belonging to the Company, its successors or assigns, whether prepared by me or supplied to me by the Company.

4.Conflicts

a)Conflicting Employment.  I agree that, during the term of my employment by the Company, I will not engage in any other employment, occupation, consulting or other business activity related to the business in which the Company is now involved or becomes involved during the term of my employment, nor will I engage in any other activities that conflict with my obligations to Company unless such service is approved in advance in writing by the Board of Directors.

b)No Restrictions.  I am subject to no contractual or other restriction or obligation which will in any way limit my activities on behalf of the Company.  I hereby represent and warrant to the Company that I do not claim rights in, or otherwise exclude from this Agreement, any Work Product (as defined above) or pervious work completed by me except the following (Note: if none, please write “None “; or additional information is provided on a separate sheet, please so indicate): None.

5.Covenant Against Competition. (CA employees are exempt from this section of the agreement)

a)For the purposes of this Section:

i)“Competing Product” means any product, process, or service of any person or organization other than the Company, in existence or under development, (A) which is identical to, substantially the same as, or an adequate substitute for any product, process, or service of the Company, in existence or under development, on which I work during the time of my employment by the Company or about which I acquire Confidential Information, and (B) which is (or could reasonably be anticipated to be) marketed or distributed in such a manner and in such a geographic area as to actually compete with such product, process or services of the Company.

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ii)“Competing Organization” means any person or organization, including myself, engaged in, or about to become engaged in, research on or the acquisition, development, production, distribution, marketing, or providing of a Competing Product.

b)As a material inducement to the Company to employ me, and in order to protect the Company’s Confidential Information and good will, I agree to the following stipulations:

i)For a period of twelve (12) months after termination of my employment by the Company, whether with or without cause, I will not directly or indirectly solicit or divert or accept business relating in any manner to Competing Products or to products, processes or services of the Company from any of the customers or accounts of the Company with which I had any contact as a result of my employment.

ii)For a period of twelve (12) months after termination of my employment by the Company or its affiliates for any reason, whether with or without cause, I will not render services, directly or indirectly, as an employee, consultant or otherwise, to any Competing Organization in connection with research on or the acquisition, development, production, distribution, marketing, or production of any Competing Product.

iii)For a period of twelve (12) months after termination of my employment by the Company, whether with or without cause, I will not directly or indirectly solicit or take away, or attempt to solicit or take away, employees of the Company, either for my own business or for any other person or entity.

6.Enforceability and Severability.  In the event that any provision of this Agreement shall be determined to be unenforceable by any court of competent jurisdiction by reason of its extending for too great a period of time or over too large a geographic area or over too great a range of activities, it shall be interpreted to extend only over the maximum period of time, geographic area or range of activities as to which it may be enforceable.

If any provision of this Agreement shall be determined to be invalid, illegal or otherwise unenforceable by any court of competent jurisdiction, the validity, legality and enforceability of the other provisions of this Agreement shall not be affected thereby.  Any invalid, illegal or unenforceable provision of this Agreement shall be severable, and after any such severance, all other provisions hereof shall remain in full force and effect.

7.Breach.

a)Equitable Remedies.  I hereby expressly acknowledge that any breach or threatened breach of any of the terms and/or conditions set forth in this Agreement will result in substantial, continuing and irreparable injury to the Company.  Therefore, I hereby agree that, in addition to any other remedy that may be available to the Company, the Company shall be entitled to injunctive or other equitable relief by a court of appropriate jurisdiction in the event of breach or threatened breach of the terms of this Agreement.

b)Tolling.  If any provisions of this Agreement are violated, then the time limitations set forth in this Agreement shall be extended for a period of time equal to the period of time during which such breach occurs, and, in the event the Company is required to seek relief from such breach before any court, board or other tribunal, then the time limitation shall be extended for a period of time equal to the pendency of such proceedings, including all appeals.

8.General Provisions

a)Entire Agreement.  This Agreement sets forth the entire agreement and understanding between the Company and me relating to the subject matter herein and merges all prior discussions between us with respect hereto except for the NeuroMetrix, Inc. Confidentiality & Non-Compete Agreement which I signed when I joined the Company. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing signed by the 

8

party to be charged.  Any subsequent change or changes in my duties, job title or compensation will not affect the validity or scope of this Agreement.

b)Successors and Assigns.  This Agreement shall inure to the benefit of the Company and its legal representatives, successors and assigns, and shall be binding upon me and my heirs, legal representatives, successors and assigns.

c)Governing Law.  This Agreement will be governed by the laws of the Commonwealth of Massachusetts, without regard to conflicts of law principles.

d)Headings.  The headings in this Stockholders Agreement are for convenience of reference only, and they shall not limit or otherwise affect the interpretation of any term or provision hereof.

I ACKNOWLEDGE THAT BEFORE PLACING MY SIGNATURE HEREUNDER, I HAVE READ ALL OF THE PROVISIONS OF THIS AGREEMENT AND HAVE RECEIVED A COPY HEREOF TODAY. 

Executed as a document under seal effective as of December 30, 2020.

Signed: 

__________________________________________
                    Signature 

__________________________________________
                    Print Name 
    
    __________________________________________
Address

    __________________________________________
City, State and Zip Code

For NeuroMetrix, Inc.
______________________________
Authorized Signature

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December 28, 2021

Shai N. Gozani, M.D., PhD
Employment Agreement – December 30, 2020
Addendum

On behalf of the Board of Directors of NeuroMetrix, Inc., the Compensation Committee of the Board confirms the following modification to the terms of your employment:

“Base Salary – your annual salary (“Base Salary”) in the amount of $415,000 will revert to payment in cash in the year 2022. The annual salary remains subject to periodic review and adjustment at the discretion of the Company.”

Other terms of your employment agreement dated December 30, 2020 are unchanged.

Should this Addendum meet with your approval, please acknowledge your acceptance by signing as indicated below.

Sincerely, 

NeuroMetrix, Inc.

By:         _____________________________________
    David Goodman, M.D., MSE, 
Compensation Committee, Board of Directors

______________________________________
David VanAvermaete
Compensation Committee, Board of Directors

Accepted:     _________________________________            ______________
        Shai N. Gozani, M.D., Ph.D.                     Date:

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