Document:

argo-timothycartersepara

1             SEPARATION AGREEMENT AND GENERAL RELEASE   This SEPARATION AGREEMENT AND RELEASE (this “Agreement”) is  entered into by and between Argonaut Management Services, Inc. (the “Company,” and  together with its parents, subsidiaries and affiliates, the “Argo Group”) and Timothy Carter  (“I” or “my” or “me”) (collectively, the “Parties”). The Parties agree as follows:    I. Separation Benefits  A. In General: My employment with the Company terminated on August 11, 2021  (“Termination Date”).  As of the Termination Date, I have not represented and will  not represent myself as being an employee, officer, attorney, agent, or  representative of the Company for any purpose. The Company promises to pay  me the amounts or benefits set forth in this Agreement, that are conditioned on my  signing this Agreement no later than 21 days after I receive this Agreement  (“Consideration Period”). This Agreement will be null and void if I do not sigh it on  or before the expiration of the Consideration Period.      B. Sufficiency of Consideration: I acknowledge and agree that the sums and  benefits to be provided under the terms of the Agreement are, in significant and  substantial part, in addition to anything of value to which I am otherwise entitled.  C. Cash Payment: As consideration for signing and complying with the terms of this  Agreement at all times, and subject to Section 7.01 of the Argo Group International  Holdings, Ltd. Executive Severance Plan (the “Severance Plan”), I will receive a  lump sum payment in the gross amount of $375,000, less all required local,  state, and federal tax deductions, the receipt  and sufficiency of which is hereby  acknowledged, within thirty days after the expiration of the Revocation Period  (defined below).     D. Compensation and Benefit Plans: I agree and acknowledge that I have received  all compensation due to me through my Termination Date.  As of the Termination  Date, I ceased to be eligible to participate under any applicable stock option,  bonus, incentive compensation, commission, medical, dental, life insurance,  retirement, and other compensation or benefit plans of the Company following my  termination of employment per plan terms. Thereafter, I acknowledge that I have  no rights under any of those plans, except as follows:    i. As consideration for signing and complying with this Agreement at all times,  and subject to Section 7.01 of the Severance Plan, I shall be entitled a lump  sum cash payment equal to the amount of the annual cash incentive payment  I would have been entitled under the Company’s annual cash incentive plan for  calendar year 2021 (the “Performance Period”) but for my termination, prorated  for the number of days I was employed by the Company during the  Performance Period.  This amount shall be paid to on the date on which the  Company pays such incentive payment to other employees for the  Performance Period.    ii. Any sponsored medical and/or dental, vision, flexible spending plans, or  

 

2             Employee Assistance Program (EAP) benefits will end on 31 August 2021.    iii. As consideration for signing and complying with this Agreement at all times, if I  elect to continue my employer-sponsored medical, dental, vision, flexible  spending plans, or EAPs benefits via the Consolidated Omnibus Budget  Reconciliation Act (COBRA):  a) My monthly premium for the Argo Group – sponsored medical and/or dental  plan coverage through  May 31, 2022 (“COBRA Contribution Period”) will  continue to be equal to the bi- weekly payroll deductions that active  employees pay, converted to a monthly amount. Thereafter, I will be  responsible for the full COBRA premium to continue coverage.  b) If I am not eligible for COBRA, become ineligible, or fail to make timely  elections and payments as required for coverage continuation under  COBRA, my coverage will end.  c) The tobacco user surcharge, and the wellness surcharge for failure to  participate in a remediation program if I missed the markers, will not be  added to the COBRA premium.  d) The reduced premium will only be available for the medical, and dental,  vision, or flex spending plans in which I am enrolled upon my termination  of employment, and family members enrolled as of my date of termination  of employment as long as they remain eligible.  e) The EAP may also be continued through COBRA – at no cost to me – during  the COBRA Contribution Period.  iv. I will have the right to COBRA continuation coverage as to any Company-  provided medical, dental, vision, or flexible spending plans, or Employee  Assistance Program (EAP) benefits in which I participate, which means that I  will be entitled to buy continued health plan coverage under the normal COBRA  health care continuation rules and plan terms.    v. I will retain my vested benefits under all applicable qualified and non-qualified  retirement plans of the Company, and all rights associated with such benefits,  as determined under plan terms. I understand that due to my departure from  the Company, I will forfeit any unvested Long Term Incentive or other shares,  or the right to any cash payment in lieu of those shares, in accordance with the  Long Term Incentive Plan documents.      E. Outplacement Services: As consideration for signing and complying with this  Agreement at all times, I will be eligible to participate in the Company's  Outplacement Service Program provided by a third-party provider, Lee Hecht  Harrison (LHH). I will be eligible to participate in LHH Select Program, which will  teach me effective job search strategies and techniques while providing the best  tolls and resources available to assist me in my search. Services help me conduct  self-assessment, develop a career path, and are customized to my needs. Using  Blended Learning model and the support of the Job Search Work Teams, I will  customize my program to best suit my individual needs and learning styles, and  

 

3             choose the components that are most appropriate for my transition for success.    II. Complete Release    A. In General: In exchange for the Company’s promises contained in this Agreement,  I agree to irrevocably and unconditionally release any and all Claims that I may  now have against the Company and other parties as set forth in this Section II.    B. Released Parties: The Released Parties are the Company, the Argo Group  entities, all related companies, partnerships, or joint ventures, and, with respect to  each of them, their predecessors and successors; and, with respect to each  such entity, all of its past and present employees, officers, directors, stockholders,  owners, representatives, assigns, attorneys, agents, insurers, employee benefit  programs (and the trustees, administrators, fiduciaries, and insurers of such  programs), and any other persons acting by, through, under or in concert with any  of the persons or entities listed in this subsection.    C. Claims Released: I understand and agree that I am releasing all known and  unknown claims, promises, demands, actions, causes of action, suits, damages,  losses, expenses, of any and every nature whatsoever, or similar rights of any type  that I may have (the “Claims”) against any Released Party, as a result of actions  or omissions occurring through the date I sign this Agreement, except that I am not  releasing any claim that relates to: (1) my right to enforce this Agreement; (2) my  right, if any, to claim government-provided unemployment or workers’  compensation benefits, (3) any rights or claims which may arise or accrue after I  sign this Agreement, or (4) any right that I cannot waive or release by law. I further  understand that the Claims I am releasing may arise under many different laws  (including statutes, regulations, other administrative guidance, and common law  doctrines), including, but by no means limited to: the Age Discrimination in  Employment Act (“ADEA”); the Older Workers Benefit Protection Act; Title VII of  the Civil Rights Act of 1964; the Civil Rights Act of 1866; the Americans With  Disabilities Act; the Chicago Human Rights Ordinance; the Cook County Human  Rights Ordinance; the Illinois Human Rights Act, as amended; the Illinois Right to  Privacy in the Workplace Act; the Illinois Union Employee Health and Benefits  Protection Act; the Illinois Employment Contract Act; the Illinois Labor Dispute Act;  the Illinois Victims' Economic Security and Safety Act; the Illinois Equal Pay Act;  the Illinois Constitution; and any other federal, state, or local laws restricting an  employer’s right to terminate employees; or otherwise regulating employment,  discrimination, retaliation, harassment, or failure to accommodate; any federal,  state, or local law enforcing express or implied employment contracts or requiring  an employer to deal with employees fairly or in good faith; claims for wrongful  discharge; negligence; negligent hiring; negligent supervision; negligent retention;  physical or personal injury; emotional distress; duress; fraud; fraud in the  inducement; negligent misrepresentation; defamation; invasion of privacy;  interference with contract or with prospective economic advantage; breach of  express or implied contract (including but not limited to any claims I may have,  whether known or unknown, under the Severance Plan or any award agreements;  breach of covenants of good faith and fair dealing; promissory estoppel; and similar  or related claims. I acknowledge and agree that the released Claims include any  that have been or may hereafter be asserted on my behalf in any class or collective  

 

4             action relating to my employment and/or the termination of my employment with  the Company (“Class/Collective Action”). Accordingly: (a) I waive any right to  participate in any Class/Collective Action, including serving as a class  representative or named plaintiff; and (b) I waive any right to receive notice of any  pending or resolved Class/Collective Action. In the event that I am included or  identified as a member or potential member of a class or collective in  Class/Collective Action, I agree to (i) opt out of such proceeding after learning of  my inclusion by executing without objection or delay any opt out form presented to  me, and/or (ii) not to opt in to such proceeding.   D. Unknown Claims: I understand that I am releasing Claims that I may not know  about. That is my knowing and voluntary intent, even though I recognize that  someday I might learn that some or all of the facts I currently believe to be true are  untrue and even though I might then regret having signed this Agreement.  Nevertheless, I am assuming that risk and I agree that this Agreement shall remain  effective in all respects in any such case. I expressly waive all rights I might have  under any law that is intended to protect me from waiving unknown claims. I  understand the significance of doing so.    E. Whistleblower Protections and Protected Rights: Nothing in this Agreement  (including but not limited to the acknowledgements, claims released, return of  Company property, non-disparagement, and confidentiality provision) (1) limits or  affects my right to challenge the validity of this Agreement under the ADEA or the  OWBPA, (2) prevents me from filing a charge or complaint with or from  participating in an investigation or proceeding conducted by the Department of  Justice, the Occupational Safety and Health Administration, Equal Employment  Opportunity Commission, the National Labor Relations Board, the Securities and  Exchange Commission, any Inspector General, or any other federal, state or local  agency charged with the enforcement of any laws, including providing documents  or any other information, (3) from reporting a possible violation of law to a  government entity or law enforcement, including making a disclosure that is  protected under the whistleblower protections of applicable law, or (4) precludes  me from exercising my rights under Section 7 of the NLRA to engage in protected,  concerted activity with other employees. I understand that I do not need the prior  authorization of the Company to make any such reports or disclosures and I am  not required to notify the Company that I have made such reports or disclosures.  Notwithstanding the foregoing, by signing this Agreement I am waiving my right to  recover any individual relief (including any backpay, frontpay, reinstatement or  other legal or equitable relief) in any charge, complaint, or lawsuit or other  proceeding brought by me or on my behalf by any third party, except for any right  I may have to receive a payment or award from a government agency (and not the  Company) for information provided to the government agency or where otherwise  prohibited.    III. Promises, Warranties, and Representations    A. Employment Termination: I understand and agree that I am separated from  service and my employment with the Company ended forever on my Termination  

 

5             Date. I also understand and agree that I have no right of rehire or reinstatement  with any Released Party, regardless of location, and that the Released Parties are  under no obligation to rehire or reinstate me. I also acknowledge and understand  that the failure of a Released Party to rehire or reinstate me is contractual and not  unlawful discrimination or retaliation. I acknowledge that I have (1) received all  compensation due me as a result of services performed for the Company with the  receipt of my final paycheck; (2) reported to the Company any and all work-related  injuries or occupational disease incurred by me during my employment by the  Company; (3) been properly provided any leave requested under the FMLA or  similar state local laws and have not been subjected to any improper treatment,  conduct or actions due to a request for or taking such leave; (4) had the opportunity  to provide the Company with written notice of any and all concerns regarding  suspected ethical and compliance issues or violations on the part of the Company  or any other released person or entity; and (5) reported any pending judicial and  administrative complaints, claims, or actions I filed against the Company or any  other released person or entity; and (6) except as otherwise provided in this  Agreement or provided by law, all other employment-related benefits terminated  as of the Termination Date. I will not be entitled to compensation for any bonus  plan, savings plan, incentive plan or benefit not specifically mentioned within this  Agreement.    B. Company Property:   Before I am entitled to accept any monetary payments from  the Company pursuant to this Agreement, I acknowledge my obligation to return,  and shall return to the Company all files, memoranda, documents, records,  electronic records, software, copies of the foregoing, credit cards, keys,  computers, mobile devices and any other property of the Company or its affiliates  in my possession.    C. Pursuit of Released Claims: I affirm that I have not filed, have not caused to be  filed, and am not presently party to, any actions, grievances, arbitrations,  complaints, claims or other legal proceedings against or relating to any Released  Party in any forum. I further agree and covenant that should any person, entity,  organization, or federal, state or local governmental agency institute an  investigation, action, grievance, arbitration, complaint, claim or other legal  proceeding involving any matter encompassed by the release set forth in Section  II, I shall not be entitled to recover and expressly waive any right to seek, accept  or recover any monetary relief or other individual remedies.    D. Taxes: I am responsible for paying any taxes on amounts I receive because I  signed this Agreement. I agree that the Company may withhold all taxes it  determines it is legally required to withhold, except as expressly otherwise  provided in Section I. Neither the Company nor any Released Party has made any  representation about the tax consequences of any amount received by me  pursuant to this Agreement, other than in this paragraph.    E. Ownership of Claims: I have not assigned or transferred any Claim I am  releasing, nor have I purported to do so. I understand and agree that in addition  

 

6             to any other remedies, rights or defenses that may be available to the Released  Parties by virtue of this Agreement or my breach hereof, I agree that I will pay the  reasonable attorneys’ fees, costs, expenses and any damages the Released  Parties incur as a result of my breach of this representation or if this representation  was false when made.    F. No Disparagement or Harm: I agree that I will not say anything about the  Company or any Released Party that I know to be false or that I have no reason to  believe is true. I understand that the Company values its reputation and reserves  the right to take all appropriate legal action to preserve that reputation.    G. Implementation: I agree to sign any documents and do anything else that is  necessary in the future to implement this Agreement.    H. Confidential Information: I understand and agree that as a condition of my  entitlement to payments and benefits under this Agreement, I shall, upon the  Separation Date, return all Company documents and information to Allison Kiene  or her designee. In addition, I expressly recognize and acknowledge that during  my employment with the Company, I was provided with confidential information  and confidential documents concerning, notably, the Company and Argo Group  and their respective directors, officers, employees, shareholders, business plans,  financial information, portfolios, investments, clients, customers, business,  strategies and activities (collectively, “Confidential Information”). I agree to  maintain all Confidential Information, including but not limited to documents  prepared by or at my direction in the course of my employment with the Company,  as strictly confidential. I understand and agree that I shall not, at any time, without  the prior written consent of Allison Kiene or her designee, disclose Confidential  Information in any manner whatsoever, in whole or in part, or use it, directly or  indirectly, for any purpose whatsoever at any time. I further understand and agree  that the definition of Confidential Information shall be construed as broadly as  possible, and, to the extent I am uncertain whether information or a document is  Confidential Information, I will treat it as Confidential Information absent express  written consent from Allison Kiene or her designee to disclose or otherwise use it.  Nothing herein is intended to diminish the Company’s rights or my obligations  under Section 6.01 of the Severance Plan, which such section is incorporated  herein fully by reference and is not superseded or altered by this Agreement. I  recognize and acknowledge that a breach of this Section III (I) will cause  irreparable damage to the Company and/or Argo Group, the exact amount of which  will be difficult or impossible to ascertain, and that the remedies at law for any  such breach will be inadequate. Accordingly, in the event of a breach or threatened  breach of this Section III(I) by me, in addition to any other remedy that may be  available at law or in equity (which any member of Argo Group expressly reserves  the right to seek), any member of the Argo Group shall be entitled to specific  performance and/or injunctive relief from a court of competent jurisdiction, without  the requirement to post bond. For sake of clarity, each member of Argo Group is a  third party beneficiary to this Section III(I). Notwithstanding any term of this  Agreement, the Parties acknowledge that pursuant to 18 USC § 1833(b), I may not  be held liable under any criminal or civil federal or state trade secret law for  

 

7             disclosure of a trade secret: (A) made in confidence to a government official, either  directly or indirectly, or to an attorney, solely for the purpose of reporting or  investigating a suspected violation of law or (B) in a complaint or other document  filed in a lawsuit or other proceeding, if such filing is made under seal. Additionally,  the Parties acknowledge that if I sue the Company for retaliation based on the  reporting of a suspected violation of law, I may disclose a trade secret to my  attorney and use the trade secret information in the court proceeding, so long as  any document containing the trade secret is filed under seal and I do not disclose  the trade secret except pursuant to court order.    I. Post-Employment Obligations. I understand and acknowledge that any post-  employment obligations, including but not limited to my non-solicitation and  confidentiality obligations, and including specifically those set forth in Section 6.02  of the Severance Plan and Sections 7 and 8 of that certain Restricted Stock Award  Agreement dated March 15, 2021, all of which are incorporated fully into, and not  superseded by, this Agreement, remain in full force and effect.      IV. Review and Revocation    A. Review: I acknowledge that I was and am by this Agreement advised in writing  to consult with an attorney prior to signing this Agreement. I further acknowledge  that (1) I carefully read this Agreement; (2) I fully understand this Agreement; and  (3) I am entering into this Agreement knowingly and voluntarily. I acknowledge that  the Company encouraged me to discuss this Agreement with an attorney (at my  own expense) before signing it, that I sought such advice to the extent I deemed  appropriate, and that such review period began on my Termination Date. I agree  with the Company that changes to the offer or the language in this Agreement,  whether material or immaterial, do not restart the running of the Consideration  Period.    B. Consideration and Revocation Periods, Other Information: I acknowledge that  I have 21 days to consider whether to sign this Agreement (the “Consideration  Period”). I understand that I must return this signed Agreement to the Company’s  representative, Human Resource Operations, Argo Group, PO Box 469012, San  Antonio, TX 78246 210.321.8400 within the Consideration Period. If I choose to  sign and return this Agreement before the end of the Consideration Period, it is  because I freely chose to do so after carefully considering its terms. Additionally,  I understand and acknowledge that I shall have seven (7) days from the date of  the signing of this Agreement to revoke my release of ADEA claims (“Revocation  Period”) by delivering a written notice of such revocation within the Revocation  Period to the company representative stated above. In the event of such  revocation, the Company has the option at its discretion to treat this Agreement  as null and void in its entirety.  If the revocation period expires on a weekend or  holiday, I will have until the end of the next business day to revoke. Any  unauthorized modification or alteration of any terms of this Agreement by me voids  this Agreement in its entirety. I acknowledge that this Agreement shall be deemed  null and void in its entirety in the event that I fail to execute it on or before  

 

8             September 1, 2021.  V. Miscellaneous  A. Entire Agreement: This is the entire Agreement between the Company and me.  Any rights I may have had under any prior agreement between or directly involving  the Company and me are superseded by this Agreement, except as specifically  set forth herein and except that any prior agreements related to inventions,  business ideas, confidentiality of corporate information, and unfair competition  remain intact. This  Agreement may not be modified or canceled (subject to the  Parties’ revocation-related rights) in any manner except in writing signed by both  an authorized Company official and me. I acknowledge that the Company has  made no representations or promises to me other than those in this Agreement. If  any provision in this Agreement is found to be unenforceable, all other provisions  will remain fully enforceable. The provisions of this Agreement are severable, and  if any part of this Agreement except Section II is found by a court of law to be  unenforceable, the remainder of this Agreement will continue to be valid and  effective.  B. Successors: This Agreement binds my heirs, administrators, representatives,  executors, successors, and assigns, and will inure to the benefit of all Released  Parties and their respective heirs, administrators, representatives, executors,  successors, and assigns.    C. Interpretation: This Agreement shall be construed as a whole according to its fair  meaning. It shall not be construed strictly for or against me or any Released Party.  Unless the context indicates otherwise, the singular or plural number shall be  deemed to include the other. Captions are intended solely for convenience of  reference and shall not be used in the interpretation of this Agreement.    D. Non-Admission: That Parties agree that this Agreement, and compliance with this  Agreement, shall not be construed as an admission by the Company of any liability  whatsoever, or as an admission by the Company of any violation of my rights or  the rights of any person. The Company specifically disclaims any liability to me or  any other person, or for any alleged violation of any order, law, statute, duty, or  contract on the part of the Company or the Released Parties.    E. Section 409A: I acknowledge and agree that: (1) the Company intends that the  payments and benefits provided under this Agreement shall either be exempt from  the application of, or comply with, the requirements of Section 409A of the Internal  Revenue Code of 1986, as amended (the “Code”), and this Agreement shall be  construed in a manner that effectuates this intent. Neither the Company nor its  respective directors, officers, employees or advisers (other than me) shall be held  liable for any taxes, interest, penalties or other monetary amounts owed by me as  a result of this Agreement. Notwithstanding anything in this Agreement to the  contrary, I understand and agree that the Company may amend this Agreement,  to take effect retroactively or otherwise, as deemed necessary or advisable for the  purpose of remaining exempt from or complying with the requirements of Section  409A of the Code and the administrative regulations and rulings promulgated  thereunder; (2) in the event that, notwithstanding the clear language of this  

 

9             Agreement and the intent of the Company, any amount or benefit under this  Agreement constitutes non-exempt “deferred compensation” for purposes of  Section 409A of the Code (“Non-Exempt Deferred Compensation”) and is payable  or distributable by reason of my separation from service during a period in which I  qualify as a “specified employee” (as defined in Section 409A of the Code and the  final regulations thereunder), then, subject to any permissible acceleration of  payment under Section 409A of the Code: (a) the amount of such Non-Exempt  Deferred Compensation that would otherwise be payable during the six-month  period immediately following my separation from service under the terms of this  Agreement shall be accumulated through and paid or provided on the first day of  the seventh month following my separation from service (or, if I die during such  period, within thirty (30) days after my death) (in either case, the “Required Delay  Period”); and (b) the normal payment or distribution schedule for any remaining  payments or distributions shall resume at the end of the Required Delay Period;  (3) to the extent that any right to reimbursement of expenses or payment of any  benefit in-kind under this Agreement constitutes Non-Exempt Deferred  Compensation, (a) any such expense reimbursement shall be made by the  Company no later than the last day of the taxable year following the taxable year  in which such expense was incurred by me, (b) the right to reimbursement or in- kind benefits shall not be subject to liquidation or exchange for another benefit, and  (iii) the amount of expenses eligible for reimbursement or in-kind benefits provided  during any taxable year shall not affect the expenses eligible for reimbursement or  in-kind benefits to be provided in any other taxable year.    F. Section 280G:  The Parties acknowledge and agree that, notwithstanding  anything in this Agreement to the contrary, their respective rights and obligations  under Section 4.03 of the Severance Plan shall survive and remain in full force and  effect following my termination of employment.    G. Governing Law and Enforcement: This Agreement shall be governed by the  laws of the State of New York, without giving effect to any choice of law or conflict  of law provision or rule (whether of the State of New York or any other jurisdiction)  that would cause the application of the laws of any jurisdiction other than the State  of New York.  I hereby: (i) irrevocably submit to the non-exclusive jurisdiction of  any state or federal court of competent jurisdiction sitting in the State of New York  in any action or proceeding arising out of or relating to this Agreement; and (ii)  agree that all claims in respect of such action or proceeding may be heard or  determined in any such court.  I hereby waive irrevocably any defense of  inconvenient forum to the maintenance of any action or proceeding so brought.       H. Form of Agreement and Executed Counterparts: The Parties agree that  facsimile, scanned, PDF or email copies of this Agreement shall be considered as  a legal original and signatures thereon shall be legal and binding, and that this  Agreement may be executed in one or more counterparts, each of which shall be  deemed an original but all of which shall constitute one and the same instrument.  I. Amendment; Waiver: I acknowledge and agree that except as set forth in Section  V(E), this Agreement shall not be amended, altered or modified except by an  instrument in writing duly executed by the Party against whom enforcement is  sought. Neither the waiver by either of the Parties hereto of a breach of or a default  

 

10             under any of the provisions of this Agreement, nor the failure of either of the  Parties, on one or more occasions, to enforce any of the provisions of this  Agreement or to exercise any right or privilege hereunder, shall thereafter be  construed as a waiver of any subsequent breach or default of a similar nature, or  as a waiver of any such provisions, rights or privileges hereunder.    J. Cooperation: I agree that after the Termination Date, I will make myself available,  upon reasonable notice and under reasonable conditions, to respond to inquiries  and requests for information and assist the Company in any capacity with respect  to matters of which I was involved or had knowledge as a result of my employment  with the Company, including, but not limited to, providing information in connection  with the Company’s operations. I further agree to provide reasonable assistance  to the Company and its respective representatives in defense of any claims that  have been or may be made against the Company, and will assist the Company in  the prosecution of any claims that have been or may be made by the Company, to  the extent that such claims may relate to the period of my employment with the  Company. My assistance shall include but not be limited to cooperating and  meeting with, and providing information to, counsel of the Company and providing  honest and truthful testimony. The Parties agree that upon presentation of  appropriate documentation, the Company shall pay or reimburse me for all  reasonable out-of- pocket travel, duplicating or telephonic expenses incurred by me  in complying with this paragraph. The Parties further agree that to the extent that  I am required to spend substantial time on such matters, the Company shall  compensate me at an hourly rate based on my base salary (or actual hourly rate  as the case may be) in effect on the Termination Date.       

 

11  Signed and agreed on the date indicated:  Timothy Carter Argonaut Management Services, Inc.  Date: _ By: _  Title:  Date:  TAKE THIS AGREEMENT HOME, READ IT, AND CAREFULLY CONSIDER ALL OF  ITS PROVISIONS BEFORE SIGNING IT. IT INCLUDES A RELEASE OF KNOWN  AND UNKNOWN CLAIMS. IF YOU WISH, YOU SHOULD TAKE ADVANTAGE OF  THE FULL CONSIDERATION PERIOD AFFORDED BY SECTION IV AND  CONSULT YOUR ATTORNEY.  /s/ Timothy Carter /s/ Tony Cicio Tony Cicio8/27/21 8/27/21 Chief Human Resources OfferExhibit
10.1

 

SECURITIES
ESCROW AGREEMENT

 

This
SECURITIES ESCROW AGREEMENT (this “Agreement”) made as of the 8 day of November 2021, by and among Vision Hydrogen
Corporation (the “Company”) whose address is 95 Christopher Columbus Drive, 16th Floor, Jersey City, NJ
07302, Volt Energy B.V. (the “Shareholder” and together with the Company, the “Parties”), whose
address is President Kennedystraat 1, 6269 CA Margraten, The Netherlands, and VStock Transfer, LLC (the “Escrow Agent”)
whose address is 18 Lafayette Place, Woodmere, NY 11598.

 

WITNESSETH:

 

WHEREAS,
the Parties entered into that certain stock purchase agreement dated November 8, 2021 (the “Purchase Agreement”)
pursuant to which, among other things, the Company purchased from the Shareholder 194,500 common shares of VoltH2 Holdings AG for consideration
consisting of 1,768,182 shares of the Company’s common stock, par value $0.0001 (the “Securities”); and

 

WHEREAS,
the Purchase Agreement provides that Shareholders will indemnify the Company and its shareholders, directors, officers, employees, affiliates,
agents, representatives and assigns, from and against any and all liabilities, losses, damages, costs and expenses (including reasonable
attorney’s fees and costs) (collectively, “Losses”), upon the terms and subject to the conditions provided in
the Purchase Agreement, and the Securities shall be placed in escrow pursuant to the terms and subject to the conditions of this Agreement;
and

 

WHEREAS,
Sections 1.2 and 6.2 of the Purchase Agreement provide that, at the closing of the transactions contemplated by the Purchase Agreement,
the Securities shall be delivered to Escrow Agent; and

 

WHEREAS,
the Parties have agreed to appoint Escrow Agent to hold the Securities in escrow, and Escrow Agent agrees to hold and distribute the
Securities, in accordance with the terms and provisions of this Agreement.

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants herein contained, the parties hereto hereby agree as follows:

 

1.
Designation of Escrow Agent. The Company and the Shareholder, in consideration for the Escrow Agent’s agreement to perform
the duties of an escrow agent (a nondiscretionary agent) under this Agreement, hereby designate the Escrow Agent as an escrow agent and
Escrow Agent hereby agrees to act as escrow agent as herein established. The Escrow Agent, as escrow agent but not as trustee or fiduciary
in any respect, shall take, hold and distribute the Securities in accordance with the terms of this Agreement and shall hold the Securities
as escrow agent. However, the Escrow Agent shall not be liable for any act, omission or determination made in connection with this Agreement
except for its intentional misconduct. Without limiting the generality of the foregoing, the Escrow Agent shall not be liable for any
losses arising from its compliance with written or oral directions and shall be fully protected in acting upon any instrument, certificate
or paper believed by it to be genuine and to be signed or presented by the proper person or persons and the Escrow Agent shall be under
no duty to make any investigation or inquiry as to any statement contained in any such writing, but may accept the same as conclusive
evidence of the truth and accuracy of the statements therein contained.

 

    	 

    	 

    

 

2.
Securities. The Escrow Agent is responsible for safekeeping the Securities which are delivered into its possession by the Company
or its agent. The Escrow Agent will not be responsible for the computation and collection of any interest, dividends, or other proceeds
or certificates due or issuable upon a reorganization of the Company with respect to the Securities. Without limiting the foregoing,
the Company and the Shareholder hereby acknowledge that the Escrow Agent will act solely as escrow agent and is not under any duty to
supervise the marketability of the Securities or to advise or make recommendations with respect to such.

 

3.
Rights, Duties and Responsibilities of Escrow Agent. It is understood and agreed that the duties of the Escrow Agent are purely
ministerial in nature, and that:

 

3.1
Procedure with Respect to Indemnification Claims.

 

(a)
Claim. If, at any time and from time to time from the date hereof until November 8, 2024 (the “Claims Period”),
Company desires to make a claim against the Securities pursuant to Article X of the Purchase Agreement (each, a “Claim”),
Company shall deliver a written notice of the Claim (a “Claims Notice”) to Escrow Agent, with a copy to Shareholders,
substantially in the form attached hereto as Annex I specifying the nature of the Claim, the estimated amount of damages to which
Company believes it is or may be entitled to under the Purchase Agreement (the “Claimed Amount”) and instructions
to cancel certain of the Securities.

 

(b)
Response by the Shareholder. Within thirty (30) calendar days after receipt by Escrow Agent of any Claims Notice (“Response
Period”), Shareholders shall, with respect to such Claims Notice, by notice to Company and Escrow Agent (a “Response
Notice”) substantially in the form attached hereto as Annex II, either (i) concede liability for the Claimed Amount
in whole, or (ii) deny liability for the Claimed Amount in whole or in part (it being understood that any portion of the Claimed Amount
for which Shareholders has not denied liability shall be deemed to have been conceded). If Shareholders denies liability in whole or
in part, such Response Notice shall be accompanied by a reasonably detailed description of the basis for such denial. The amount of the
liability for which Shareholders have conceded liability shall be rounded down to the nearest multiple of $4.00. Such amount is referred
to herein as the “Conceded Amount.” If Shareholders have conceded liability for any portion of the Claimed Amount,
Shareholders and Company, by joint notice substantially in the form attached hereto as Annex III, shall instruct Escrow Agent
to promptly cancel and return to treasury such Securities representing the Conceded Amount (such joint notice, the “Conceded
Amount Notice”); provided, however, that if Shareholders fails to deliver a Response Notice within the thirty
(30) calendar day period, Shareholders shall be deemed to have conceded the Claimed Amount in full (the “Deemed Concession”)
(and the Claimed Amount in full of such Deemed Concession shall constitute a Conceded Amount).

 

    	 

    	 

    

 

(c)
Resolutions of Disputes.

 

(i)
If Shareholders have denied liability for, or otherwise dispute, the Claimed Amount, in whole or in part, Shareholders and Company, on
behalf of the applicable Claimant, shall attempt to resolve such dispute within thirty (30) calendar days. If the Parties resolve such
dispute, they shall deliver to Escrow Agent a Conceded Amount Notice signed by each of them. Such Conceded Amount Notice shall instruct
Escrow Agent to cancel and return to treasury such Securities representing the Conceded Amount, if any, of Securities agreed to by the
Parties in settlement of such dispute.

 

(ii)
If the Parties fail to resolve such dispute within thirty (30) calendar days after receipt by Escrow Agent of the Response Notice corresponding
to such dispute, the issue of liability for any such dispute with respect to Claims made pursuant to Article X of the Purchase Agreement
shall be submitted to arbitration for the purposes of obtaining a final, conclusive and binding decision (the “Final Decision”).
Such Final Decision shall contain the amount, if any, of the Party’s liability for the Claimed Amount as finally determined by
such arbitration (the “Ordered Amount”). The arbitration shall be in conformity with and subject to the applicable
rules and procedures of the American Arbitration Association. The arbitration shall be conducted before a panel of three (3) arbitrators,
with one arbitrator to be selected by each of the Parties and the third arbitrator to be selected by the arbitrators selected by the
Parties. The Parties agree to be (A) subject to the jurisdiction and venue of the arbitration in New York, New York and (B) bound by
the decision of the arbitrator as the final decision with respect to the dispute.

 

(d)
Payment of Claims. (1) Escrow Agent promptly shall transfer to the Company Securities at a deemed price of $4.00 per share in
accordance with Exhibit I and /or Exhibit III as appropriate no later than the third (3rd) business day following the determination of
a Payment Event (as such term is defined below): (i) following any concession of liability by Shareholders, in whole or in part, the
Conceded Amount as set forth in the Conceded Amount Notice; (ii) following any Deemed Concession of liability by Shareholders, the Conceded
Amount; or (iii) following receipt by Escrow Agent of any Final Decision, the Ordered Amount (collectively, clauses (i), (ii), (iii),
the “Payment Events”). The Securities to be cancelled shall be selected from the shares owned by each Shareholder
on a pari passu basis, except that if an odd number of shares is to be cancelled in respect of the first Payment Event the Escrow
Agent shall select by lot the Shareholder from whose holdings the odd lot share shall be selected, and thereafter if an odd number of
shares is to be cancelled in respect of any other Payment Event the Escrow Agent shall make up the odd lot from the holdings of the Shareholder
who on the last Payment Event was not liable for the odd lot.

 

(2)
Upon the occurrence of a Payment Event, in the event that Escrow Agent must cancel and return to treasury Securities, Escrow Agent shall
cancel and return to treasury the Securities; and retain the balance of the Securities registered to Shareholders less the shares of
the Conceded Amount, or Ordered Amount, as applicable, relating to such Payment Event, to be held in escrow in accordance with the terms
set forth herein.

 

    	 

    	 

    

 

3.2
Disbursements.

 

(a)
If no Claims Notice has been submitted by May 9, 2022, the Escrow Agent shall commence releasing from the Securities to each Shareholder
the number of shares set forth below on the dates set forth below:

 

	 	 	May 8, 2022	 	 	November 8,
    2022	 	 	May 8, 2023	 	 	November 8,
    2023	 	 	May 8, 2024	 	 	November 8,
    2024	 
	Volt Energy B.V.	 	 	88,409	 	 	 	132,614	 	 	 	221,023	 	 	 	353,636	 	 	 	442,045	 	 	 	530,455	 

 

Notwithstanding
the foregoing, upon receipt of a Claims Notice, the Escrow Agent shall cease releasing any additional Securities until the earlier of
termination of this Escrow Agreement pursuant to Section 8 hereof or joint written notice from the Parties.

 

If
the Company has delivered a Claims Notice to the Escrow Agent, then, upon the earlier of termination of this Escrow Agreement pursuant
to Section 8 hereof or joint written notice from the Parties,Escrow Agent shall release from the Securities to Shareholders, any portion
of the Securities then remaining less the aggregate Claimed Amount for all then outstanding claims for any Losses (“Outstanding
Claims”) pursuant to Section X of the Purchase Agreement asserted within the Claims Period.

 

(d)
In the event that the Parties jointly instruct Escrow Agent to disburse the Securities to any party, Escrow Agent shall comply with such
instructions, any provision herein to the contrary notwithstanding.

 

3.3
The Escrow Agent shall not be responsible for the performance by the Company or the Shareholder of any of their respective obligations
pursuant to any agreement between such the Company and the Shareholder.

 

3.4
If the Escrow Agent is uncertain as to its duties or rights hereunder or shall receive instructions with respect to the Securities which,
in its sole determination, are in conflict either with other instructions received by it or with any provision of this Agreement, it
shall be entitled to hold the Securities, or a portion thereof, pending the resolution of such uncertainty to the Escrow Agent’s
sole satisfaction, by final judgment of a court or courts of competent jurisdiction or otherwise.

 

3.5
The Escrow Agent shall not be liable for any action taken or omitted hereunder, or for the misconduct of any employee, agent or attorney
appointed by it, except in the case of willful misconduct or gross negligence. The Escrow Agent shall be entitled to consult with counsel
of its own choosing and shall not be liable for any action taken, suffered or omitted by it in accordance with the advice of such counsel.

 

3.6
The Escrow Agent shall have no responsibility at any time to ascertain whether or not any security interest exists in the Securities
or any part thereof or to file any financing statement under the Uniform Commercial Code with respect to the Securities or any part thereof.

 

    	 

    	 

    

 

3.7
Without limiting the generality of the foregoing, the Escrow Agent shall not be under any obligation to defend any legal action or engage
in any legal proceeding with respect to the Securities.

 

4.
Amendment; Resignation or Removal of Escrow Agent. This Agreement may be altered or amended only with the written consent of the
Company and the Escrow Agent. The Escrow Agent may resign and be discharged from its duties hereunder at any time by giving written notice
of such resignation to the Company and the Shareholder specifying a date when such resignation shall take effect and upon delivery of
the Securities to the successor escrow agent designated by the Company and the Shareholder in writing. Such successor escrow agent shall
become the Escrow Agent hereunder upon the resignation date specified in such notice. The Escrow Agent shall continue to serve until
its successor accepts the Securities. The Company and the Shareholder shall have the right at any time to jointly remove the Escrow Agent
and substitute a new escrow agent by giving notice thereof to the Escrow Agent then acting. Upon its resignation and delivery of the
Securities as set forth in this Section 4, the Escrow Agent shall be discharged of and from any and all further obligations arising in
connection with the escrow agent relationship contemplated by this Agreement. Without limiting the provisions of Section 4 hereof, the
resigning Escrow Agent shall be entitled to be reimbursed by the Company for any expenses incurred in connection with its resignation,
transfer of the Securities to a successor Escrow Agent.

 

5.
Representations and Warranties. The Company and the Shareholder hereby represent and warrant to the Escrow Agent that:

 

5.1
No party other than the parties hereto has, or shall have, any lien, claim or security interest in the Securities or any part thereof.

 

5.2
No financing statement under the Uniform Commercial Code is on file in any jurisdiction claiming a security interest in or describing
(whether specifically or generally) the Securities or any part thereof.

 

6.
Fees and Expenses. The Escrow Agent shall be entitled to payment of an initial set-up fee of Two Thousand Five Hundred ($2,500.00)
Dollars and an additional One Hundred ($100.00) Dollars per month and applicable processing fees in connection with delivery and or cancellation
of the Securities in accordance with this Agreement. In addition, the Company agrees to reimburse the Escrow Agent for any reasonable
expenses incurred in connection with this Agreement, including, but not limited to, reasonable counsel fees.

 

7.
Indemnification and Contribution.

 

7.1
The Company (the “Indemnitor”) agrees to indemnify the Escrow Agent and its officers, directors, employees, agents
and shareholders (collectively referred to as the “Indemnitees”) against, and hold them harmless of and from, any
and all loss, liability, cost, damage and expense, including without limitation, reasonable counsel fees, which the Indemnitees may suffer
or incur by reason of any action, claim or proceeding brought against the Indemnitees arising out of or relating in any way to this Agreement
or any transaction to which this Agreement relates, unless such action, claim or proceeding is the result of the willful misconduct or
gross negligence of the Indemnitees.

 

    	 

    	 

    

 

7.2
If the indemnification provided for in Section 7.1 is applicable, but for any reason is held to be unavailable, the Indemnitor shall
contribute such amounts as are just and equitable to pay, or to reimburse the Indemnitees for, the aggregate of any and all losses, liabilities,
costs, damages and expenses, including counsel fees, actually incurred by the Indemnitees as a result of or in connection with, and any
amount paid in settlement of, any action, claim or proceeding arising out of or relating in any way to any actions or omissions of the
Indemnitor.

 

7.3
The provisions of this Article 7 shall survive any termination of this Agreement, whether by disbursement of the Securities, resignation
of the Escrow Agent or otherwise.

 

8.
Termination of Agreement. This Agreement shall terminate on November 8, 2024, provided that the rights of the Escrow Agent
and the obligations of the other parties hereto under Section 7 shall survive the termination hereof and the resignation or removal of
the Escrow Agent.

 

9.
Governing Law and Assignment. This Agreement shall be construed in accordance with and governed by the laws of the State of New
York, without regard to the conflicts of laws principles thereof, (other than Section 5-1401 of the General Obligations Law of the State
of New York) and shall be binding, upon the parties hereto and their respective successors and assigns; provided, however,
that any assignment or transfer by any party of its rights under this Agreement or with respect to the Securities shall be void as against
the Escrow Agent unless (a) written notice thereof shall be given to the Escrow Agent; and (b) the Escrow Agent shall have consented
in writing to such assignment or transfer.

 

10.
Notices. All notices required to be given in connection with this Agreement shall be sent by email, or by registered or certified
mail, return receipt requested, or by hand delivery with receipt acknowledged, or by the Express Mail service offered by the United States
Postal Service, and addressed to the addresses set forth below.

 

Vision
Hydrogen Corporation

95
Christopher Columbus Drive, 16th Floor

Jersey
City, NJ 07302

Attention:
Andrew Hidalgo

Email:
andy.hidalgo@visionh2.com

 

Volt
Energy B.V.

President
Kennedystraat 1

6269
CA Margraten

The
Netherlands

Email:
andre.jurres@voltenergy.eu

Attention:
Andre Jurres

 

VStock
Transfer, LLC

18
Lafayette Place

Woodmere,
NY 11598

Attention:
Yoel Goldfeder

Email:
info@vstocktransfer.com

 

11.
Severability. If any provision of this Agreement or the application thereof to any person or circumstance shall be determined
to be invalid or unenforceable, the remaining provisions of this Agreement or the application of such provision to persons or circumstances
other than those to which it is held invalid or unenforceable shall not be affected thereby and shall be valid and enforceable to the
fullest extent permitted by law.

 

12.
Execution in Several Counterparts. This Agreement may be executed in several counterparts or by separate instruments and by facsimile
transmission, and all of such counterparts and instruments shall constitute one agreement, binding on all of the parties hereto.

 

13.
Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter
hereof and supersedes all prior agreements and understandings (written or oral) of the parties in connection therewith.

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year first above written.

 

	 	VSTOCK
    TRANSFER, LLC
	 	 	                   
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Vision
    Hydrogen Corporation
	 	 	 
	 	By:	/s/
    Andrew Hidalgo
	 	Name:	Andrew
    Hidalgo
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	VOLT
    ENERGY B.V.
	 	 	 
	 	By:	/s/
    Andre Jurres
	 	Name:	Andre
    Jurres
	 	Title:	Managing
    Director

 

    	 

    	 

    

 

Annex
I

 

CLAIMS
NOTICE 

 

VStock
Transfer LLC

18
Lafayette Place

Woodmere,
NY 11598

Attention:

 

Ladies
and Gentlemen:

 

The
undersigned, pursuant to Section 3.1(a) of the Escrow Agreement, dated as of November 8, 2021, by and among Vision Hydrogen Corporation
(the “Company”), Volt Energy B.V. (the “Shareholder”) and VStock Transfer LLC, as escrow agent (“Escrow
Agent”) (the “Escrow Agreement”) (terms defined in the Escrow Agreement have the same meanings when used herein), hereby
certifies that Company is or may be entitled to indemnification pursuant to Article X of the Purchase Agreement in an amount equal to
$_______ (the “Claimed Amount”), which is payable out of the Securities at a per share value of $4.00. Company further certifies
that the nature of the Claim is as follows: [__________].

 

Unless
you receive a timely Response Notice (as defined in the Escrow Agreement) from the Shareholder in accordance with the Escrow Agreement,
you are hereby instructed to cancel and return to treasury [_____________] of the Securities, which is such number of shares as is equal
to the quotient of the Claimed Amount divided by $4.00.

 

Dated:
_______, 202__.

 

	Vision
    Hydrogen Corporation 	 
	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 
	 	 	 
	cc:	Volt
    Energy B.V.	 

 

    	 

    	 

    

 

Annex
II

 

RESPONSE
NOTICE

 

VStock
Transfer LLC

18
Lafayette Place

Woodmere,
NY 11598

Attention:

 

Ladies
and Gentlemen:

 

The
undersigned (“Shareholders”), pursuant to Section 3.1(b) of the Escrow Agreement, dated as of November 8, 2021 by
and among the Shareholder, Vision Hydrogen Corporation (“Company”), and VStock Transfer LLC, as escrow agent (the “Escrow
Agent”) (the “Escrow Agreement”) (terms defined in the Escrow Agreement have the same meanings when used herein), hereby:

 

(a)
concedes liability [in whole for] [in part in respect of $____ of] the Claimed Amount (the “Conceded Amount”), referred to
in the Claims Notice dated ________, 202__ pursuant to Article X of the Purchase Agreement; [and] [or]

 

(b)
denies liability [in whole for] [in part in respect of $____ of] the Claimed Amount referred to in the Claims Notice dated _________,
202__ pursuant to Article X of the Purchase Agreement.

Attached
hereto is a description of the basis for the foregoing.

 

Dated:
_______, 202__.

 

	Volt
    Energy B.V.	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 
	 	 	 
	cc:	Vision
    Hydrogen Corporation	 

 

    	 

    	 

    

 

Annex
III

 

CONCEDED
AMOUNT NOTICE

 

VStock
Transfer LLC

18
Lafayette Place

Woodmere,
NY 11598

Attention:

 

Ladies
and Gentlemen:

 

The
undersigned, pursuant to Section 3.1[(b) or (c)] of the Escrow Agreement, dated as of November 8, 2021, by and among Vision Hydrogen
Corporation (“Company”), Volt Energy B.V. (the “Shareholder”) and VStock Transfer LLC, as escrow agent (the “Escrow
Agent”) (the “Escrow Agreement”) (terms defined in the Escrow Agreement have the same meanings when used herein), hereby
jointly:

 

(a)
certify that [a portion of] the Claimed Amount with respect to the matter described in the attached in the amount of $[________] (the
“Conceded Amount”) is owed to [________]; and

 

(b)
instruct you to promptly cancel and return to treasury such number of shares as is equal to the quotient of the Conceded Amount divided
by $4.00 as soon as practicable following your receipt of this notice and, in any event, no later than five (5) business days following
the date hereof.

 

Dated:
_______, 202___

 

	Vision
                                            Hydrogen Corporation

	 
	 	          	 
	By:	 	 
	Name:	 	 
	Title:	 	 
	 	 	 
	Volt
    Energy B.V.	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:

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