Document:

atrs-ex101_22.htm

EX 10.1

First AMENDMENT

TO 

LOAN AND SECURITY AGREEMENT 

 

This First Amendment to Loan and Security Agreement (this “Amendment”) is dated as of June 26, 2019 and is entered into by and between (a) ANTARES PHARMA, INC., a Delaware corporation (“Borrower”), (b) the several banks and other financial institutions or entities from time to time parties to the Loan Agreement (collectively, referred to as “Lender”) and (c) HERCULES CAPITAL, INC., a Maryland corporation, in its capacity as administrative agent and collateral agent for itself and the Lender (in such capacity, the “Agent”).  Capitalized terms used herein without definition shall have the same meanings given them in the Loan Agreement (as defined below).

 

Recitals

A.Borrower, Agent and Lender have entered into that certain Loan and Security Agreement dated as of June 6, 2017 (as may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Loan Agreement”), pursuant to which Lender has agreed to extend and make available to Borrower certain advances of money. 

B.In accordance with Section 11.3 of the Loan Agreement, Borrower and Lender have agreed to amend the Loan Agreement upon the terms and conditions more fully set forth herein.

Agreement

NOW, THEREFORE, in consideration of the foregoing Recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

1.Amendments.  Subject to the satisfaction of the conditions set forth in Section 3 of this Amendment, the Loan Agreement is hereby amended as follows:

1.1The Loan Agreement shall be amended by deleting the Recital A thereof in its entirety and inserting in lieu thereof the following:

“A.Borrower has requested Lender to make available to Borrower a loan or loans in an aggregate principal amount of up to Fifty Million Dollars ($50,000,000.00) (the “Term Loan”); and”

1.2The Loan Agreement shall be amended by deleting the following definitions appearing in Section 1.1 thereof (Definitions and Rules of Construction) and inserting in lieu thereof the following:

““Amortization Date” means August 1, 2021; provided however, if all of the Interest Only Extension Conditions are satisfied on or prior to July 31, 2021, the “Amortization Date” shall mean August 1, 2022 (except that if the Term Loan Maturity Date is July 1, 2022, then “Amortization Date”, upon the satisfaction of the Interest Only Extension Conditions, shall mean July 1, 2022).”

““Interest Only Extension Conditions” shall mean satisfaction of each of the following events on or before July 31, 2021:  (a) Borrower has requested in writing that Lender extend the Amortization Date to August 1, 2022; (b) no default or Event of Default 

 

 

shall have occurred; (c) Agent shall have confirmed, in its sole and absolute discretion, that Borrower has achieved, with respect to the trailing twelve (12) month period ending on June 30, 2021, aggregate net revenue from the sale of products and from royalties (as classified on Borrower’s form 10-K and form 10-Q and generally consistent with the classification as of the First Amendment Closing Date; for the avoidance of doubt, not to include license fees, development revenue and other project milestones, and expense reimbursement), determined in accordance with GAAP, of greater than or equal to One Hundred Twenty Million Dollars ($120,000,000.00); and (b) payment by Borrower to Agent of the Extension Fee.”

““Secured Obligations” means Borrower’s obligations under this Agreement and any Loan Document, including any obligation to pay any amount now owing or later arising (including, without limitation, the End of Term Charge, the Prepayment Charge and the Extension Fee).”

““Term Loan Interest Rate” means a floating per annum rate of interest equal to the lesser of (a) the Prime Rate plus four and one-half of one percent (4.50%), and (b) nine and one-half of one percent (9.50%).”

““Term Loan Maturity Date” means July 1, 2022; provided, however, if all of the Interest Only Extension Conditions are satisfied on or prior to July 31, 2021, upon Borrower’s written request to Agent to extend the Term Loan Maturity Date, the “Term Loan Maturity Date” shall mean July 1, 2024.”

1.3The Loan Agreement shall be amended by inserting the following new definitions to appear in proper alphabetical order in Section 1.1 thereof (Definitions and Rules of Construction):

““End of Term Charge” means, collectively, (a) the Term A End of Term Charge, (b) the Term B End of Term Charge, and (c) the Term C End of Term Charge.”

““Extension Fee” means a charge equal to one-half of one percent (0.50%) of the principal amount outstanding under the Term Loan Advances as of July 31, 2021.”

““First Amendment Closing Date” means June 26, 2019.”

““Term A End of Term Charge” shall have the meaning assigned to such term in Section 2.5(a).”

““Term B End of Term Charge” shall have the meaning assigned to such term in Section 2.5(b).”

 ““Term B Loan Advance” has the meaning assigned to such term in Section 2.1(a).”

““Term C Draw Period” means the period of time commencing upon January 1, 2020 and continuing through the earlier to occur of (a) September 15, 2020 and (b) an Event of Default.”

““Term C End of Term Charge” shall have the meaning assigned to such term in Section 2.5(c).”

 

 

 

““Term C Loan Advance” and “Term C Loan Advances” shall each have the meaning assigned to such terms in Section 2.1(a).”

1.4The Loan Agreement shall be amended by deleting the following definitions appearing in Section 1.1 thereof (Definitions and Rules of Construction):

“Term B Draw Period” means the period of time commencing upon the occurrence of the Term B Milestone Event and continuing through the earlier to occur of (a) September 30, 2018 and (b) an Event of Default.

“Term B Loan Advance” and “Term B Loan Advances” shall each have the meaning assigned to such terms in Section 2.1(a). 

“Term B Milestone Event” shall mean that (a) no Event of Default shall have occurred, and (b) Agent shall have confirmed, in its sole and absolute discretion, each of the following: (i) that Borrower has obtained marketing approval from the Food and Drug Administration for QST with a label claim generally consistent with the desired label claim included in Borrower’s NDA filing, subject to verification by Agent in its reasonable discretion, and (ii) that Borrower has achieved aggregate revenue from the commercial sale of QST, determined in accordance with GAAP, of greater than or equal to Five Million Dollars ($5,000,000.00) prior to September 30, 2018.

1.5The Loan Agreement shall be amended by deleting Section 2.1(a) thereof (Advances) in its entirety and inserting in lieu thereof the following:

“(a)Advances.  Subject to the terms and conditions of this Agreement, Lender will severally (and not jointly) make, in an amount not to exceed its respective Term Commitment with respect to such Term Loan, and Borrower agrees to draw, one (1) advance in a principal amount of Twenty-Five Million Dollars ($25,000,000.00) on the Closing Date (the “Term A Loan Advance”).  Subject to the terms and conditions of this Agreement, Lender will severally (and not jointly) make, in an amount not to exceed its respective Term Commitment with respect to such Term Loan, and Borrower agrees to draw, one (1) advance in a principal amount of Fifteen Million Dollars ($15,000,000.00) on the First Amendment Closing Date (the “Term B Loan Advance”).  Subject to the terms and conditions of this Agreement, during the Term C Draw Period, upon Borrower’s written request in accordance with this Agreement, Lender will severally (and not jointly) make, in an amount not to exceed its respective Term Commitment with respect to such Term Loan, an advance or advances each in a principal amount of greater than or equal to Five Million Dollars ($5,000,000.00), but in an aggregate principal amount for all such advances not to exceed Ten Million Dollars ($10,000,000.00) (each a “Term C Loan Advance” and collectively, the “Term C Loan Advances”).  The Term A Loan Advance, the Term B Loan Advance and the Term C Loan Advances are hereinafter referred to individually as a “Term Loan Advance” and collectively as the “Term Loan Advances”.  The aggregate outstanding principal amount of Term Loan Advances shall not exceed the Term Loan amount.  Proceeds of any Term Loan Advance (other than the Term A Loan Advance which shall be deposited into Borrower’s Merrill Lynch account) shall be deposited into an account that is subject to a first priority perfected security interest in favor of Agent perfected by an Account Control Agreement.”

1.6The Loan Agreement shall be amended by deleting Section 2.4 thereof (Prepayment) in its entirety and inserting in lieu thereof the following:

 

 

 

“2.4Prepayment.  At its option, Borrower may at any time prepay all or any portion of the outstanding Term Loan Advances by paying the entire principal balance (or any portion thereof) with respect to the principal balance being prepaid, all accrued and unpaid interest thereon, together with a prepayment charge equal to the following percentage of the Term Loan Advance amount being prepaid: (a) with respect to the Term A Loan Advance, if the Term A Loan Advance is prepaid in any of the first twelve (12) months following the Closing Date, three percent (3%); on or after twelve (12) months but prior to twenty-four (24) months, two percent (2%), and thereafter, one percent (1%) and (b) with respect to the Term B Loan Advance and the Term C Loan Advances, if the Term B Loan Advance and/or the Term C Loan Advances are prepaid in any of the first twelve (12) months following the First Amendment Closing Date, three percent (3%); on or after twelve (12) months but prior to twenty-four (24) months, two percent (2%), and thereafter, one percent (1%) (each charge under (a) and (b), a “Prepayment Charge”).  Borrower agrees that the Prepayment Charge is a reasonable calculation of Lender’s lost profits in view of the difficulties and impracticality of determining actual damages resulting from an early repayment of the Advances.  Borrower shall prepay the outstanding amount of all principal and accrued interest through the prepayment date and the Prepayment Charge upon the occurrence of a Change in Control.  Notwithstanding the foregoing, Agent and Lender agree to waive the Prepayment Charge if Agent and Lender (in its sole and absolute discretion) agree in writing to refinance the Advances prior to the Term Loan Maturity Date.”

1.7The Loan Agreement shall be amended by deleting Section 2.5 thereof (End of Term Charge) in its entirety and inserting in lieu thereof the following:

 “2.5End of Term Charge.  

(a)On the earliest to occur of (i) July 1, 2022, (ii) the date that Borrower prepays the outstanding Secured Obligations (other than any inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) in full, or (iii) the date that the Secured Obligations become due and payable, Borrower shall pay Lender a charge in the amount of $1,062,500 (the “Term A End of Term Charge”). Notwithstanding the required payment date of such charge, it shall be deemed earned by Lender as of the Closing Date.

(b)On the earliest to occur of (i) July 1, 2022, (ii) the date that Borrower prepays the outstanding Secured Obligations (other than any inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) in full, or (iii) the date that the Secured Obligations become due and payable, Borrower shall pay Lender a charge in the amount of $592,500 (the “Term B End of Term Charge”). Notwithstanding the required payment date of such charge, it shall be deemed earned by Lender as of the First Amendment Closing Date.

(b)On the earliest to occur of (i) July 1, 2022, (ii) the date that Borrower prepays the outstanding Secured Obligations (other than any inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) in full, or (iii) the date that the Secured Obligations become due and payable, Borrower shall pay Lender a charge of three and ninety-five hundredths of one percent (3.95%) of the total original principal 

 

 

 

amount of all Term C Loan Advances made hereunder (the “Term C End of Term Charge”). Notwithstanding the required payment date of such charge, the applicable pro rata of such charge shall be deemed earned by Lender as of each date a Term C Loan Advance is made.”

1.8A new Section 2.8 is added to the Loan Agreement to read as follows:

“2.8Treatment of Prepayment Charge and End of Term Charge.  Borrower agrees that any Prepayment Charge and any End of Term Charge payable shall be presumed to be the liquidated damages sustained by each Lender as the result of the early termination, and Borrower agrees that it is reasonable under the circumstances existing as of the Closing Date and the First Amendment Closing Date.  The Prepayment Charge and the End of Term Charge shall also be payable in the event the Secured Obligations (and/or this Agreement) are satisfied or released by foreclosure (whether by power of judicial proceeding), deed in lieu of foreclosure, or by any other means.  Borrower expressly waives (to the fullest extent it may lawfully do so) the provisions of any present or future statute or law that prohibits or may prohibit the collection of the foregoing Prepayment Charge and End of Term Charge in connection with any such acceleration.  Borrower agrees (to the fullest extent that each may lawfully do so): (a) each of the Prepayment Charge and the End of Term Charge is reasonable and is the product of an arm’s length transaction between sophisticated business people, ably represented by counsel; (b) each of the Prepayment Charge and the End of Term Charge shall be payable notwithstanding the then prevailing market rates at the time payment is made; (c) there has been a course of conduct between the Lenders and Borrower giving specific consideration in this transaction for such agreement to pay the Prepayment Charge and the End of Term Charge as a charge (and not interest) in the event of prepayment or acceleration; (d) Borrower shall be estopped from claiming differently than as agreed to in this paragraph.  Borrower expressly acknowledges that their agreement to pay each of the Prepayment Charge and the End of Term Charge to the Lenders as herein described was on the Closing Date and the First Amendment Closing Date, as applicable, and continues to be a material inducement to the Lenders to provide the Term Loans.”

1.9Schedule 1.1 is hereby amended and restated in its entirety with the Schedule 1.1 appearing as Schedule 1 hereto.

2.Borrower’s Representations And Warranties.  Borrower represents and warrants that:

2.1Immediately upon giving effect to this Amendment (i) the representations and warranties contained in the Loan Documents are true, accurate and complete (a) except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date, after giving effect in all cases to any standard(s) of materiality contained in the Loan Agreement as to such representations and warranties and (b) except with respect to Section 5.12 (Financial Accounts), which is true, accurate and complete subject to the updated Exhibit E attached hereto, (ii) no fact or condition exists that could (or could, with the passage of time, the giving of notice, or both) reasonably be expected to constitute an Event of Default and (iii) no event that has had or could reasonably be expected to have a Material adverse Effect has occurred or is continuing.

 

 

 

2.2Borrower has the corporate power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment.

2.3The certificate of incorporation, bylaws and other organizational documents of Borrower delivered to Agent and/or Lender on the Closing Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect.

2.4The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized by all necessary corporate action on the part of Borrower.

2.5This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.

2.6As of the date hereof, it has no defenses against the obligations to pay any amounts under the Secured Obligations.  Borrower acknowledges that each of Agent and Lender has acted in good faith and has conducted in a commercially reasonable manner its relationships with Borrower in connection with this Amendment and in connection with the Loan Documents.

Borrower understands and acknowledges that each of Agent and Lender is entering into this Amendment in reliance upon, and in partial consideration for, the above representations and warranties, and agrees that such reliance is reasonable and appropriate.

3.Limitation.  The amendments set forth in this Amendment shall be limited precisely as written and shall not be deemed (a) to be a waiver or modification of any other term or condition of the Loan Agreement or of any other instrument or agreement referred to therein or to prejudice any right or remedy which Agent and/or Lender may now have or may have in the future under or in connection with the Loan Agreement (as amended hereby) or any instrument or agreement referred to therein; or (b) to be a consent to any future amendment or modification or waiver to any instrument or agreement the execution and delivery of which is consented to hereby, or to any waiver of any of the provisions thereof.  Except as expressly amended hereby, the Loan Agreement shall continue in full force and effect.

4.Effectiveness.  This Amendment shall become effective upon the satisfaction of all the following conditions precedent:

4.1Amendment.  Borrower, Agent and Lender shall have duly executed and delivered this Amendment to Lender and such other documents as Agent may reasonably request.

4.22019 Facility Charge. Agent shall have received a nonrefundable, fully earned facility charge in the amount of One Hundred Twenty-Five Thousand Dollars ($125,000.00) in good and collected funds.

4.3Secretary’s Certificate and Borrowing Resolutions.  A secretary’s certificate, together with a certified copy of resolutions of certified copy of resolutions of the Board of Directors evidencing approval of this Amendment.

 

 

 

4.4Certificates of Good Standing.  A certificate of good standing for Borrower from its state of incorporation and similar certificates from all other jurisdictions in which Borrower does business and where the failure to be qualified would have a Material Adverse Effect.

4.5Organizational Documents.  Certified copies of the Certificate of Incorporation and the By-Laws, as amended, of Borrower.

4.6Perfection Certificate.  A completed perfection certificate of Borrower.

4.7Opinion.  A legal opinion of Borrower’s counsel.

4.8Payment of Lender Expenses.  Borrower shall have paid all Lender expenses (including all attorneys' fees and expenses) incurred through the date of this Amendment for the documentation and negotiation of this Amendment. 

5.Post-Closing Conditions.  Borrower shall deliver, in form and substance satisfactory to Agent (a) evidence showing lender’s loss payable and/or additional insured clauses and cancellation notice (or endorsements reflecting same) in favor of Agent on or prior to July 19, 2019 and (b) on or prior to July 10, 2019 (i) evidence that Borrower has closed its money market account with Wells Fargo Bank, N.A. or (ii) an Account Control Agreement from Wells Fargo Bank, N.A., together with the duly executed signatures thereto, with respect to Borrower’s money market account; provided that amounts in such account do not exceed Five Hundred Fifty Thousand Dollars ($550,000.00) in the aggregate at any time (collectively, (a) and (b) the “Post-Closing Deliverables”).  The failure of Borrower to deliver the Post-Closing Deliverables to Agent pursuant to the terms hereof shall result in an immediate Event of Default for which there shall be no grace or cure period.

6.Release.  In consideration of the agreements of Agent and each Lender contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Borrower, on behalf of itself and its successors, assigns, and other legal representatives, hereby to the extent possible under applicable law fully, absolutely, unconditionally and irrevocably releases, remises and forever discharges Agent and each Lender, and its successors and assigns, and its present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other representatives (Agent, Lender and all such other persons being hereinafter referred to collectively as the “Releasees” and individually as a “Releasee”), of and from all demands, actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings, damages and any and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever of every name and nature, known or unknown, suspected or unsuspected, both at law and in equity, which Borrower, or any of its successors, assigns, or other legal representatives may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which arises at any time on or prior to the day and date of this Amendment, for or on account of, or in relation to, or in any way in connection with the Loan Agreement, or any of the other Loan Documents or transactions thereunder or related thereto.  Borrower understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.  Borrower agrees that no fact, event, circumstance, evidence or transaction which could now be asserted or which may hereafter be discovered shall affect in any manner the final, absolute and unconditional nature of the release set forth above.  Borrower waives the provisions of California Civil Code section 1542, which states:

 

 

 

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.

 

7.Counterparts.  This Amendment may be signed in any number of counterparts, and by different parties hereto in separate counterparts, with the same effect as if the signatures to each such counterpart were upon a single instrument.  All counterparts shall be deemed an original of this Amendment.  This Amendment may be executed by facsimile, portable document format (.pdf) or similar technology signature, and such signature shall constitute an original for all purposes.

8.Incorporation By Reference.  The provisions of Section 11 of the Loan Agreement shall be deemed incorporated herein by reference, mutatis mutandis.

[Signature Page Follows]

 

 

 

In Witness Whereof, the parties have duly authorized and caused this Amendment to be executed as of the date first written above.

 

		
	
BORROWER:
	
 

	
ANTARES PHARMA, INC.

Signature:/s/ Robert F. Apple

Print Name:Robert F. Apple

Title:             President and Chief Executive 

                          Officer
	
 

 

AGENT:

HERCULES CAPITAL, INC.

Signature:/s/ Jennifer Choe

Print Name:Jennifer Choe

Title:Assistant General Counsel

 

LENDER:

 

HERCULES CAPITAL, INC.

Signature:/s/ Jennifer Choe

Print Name:Jennifer Choe

Title:Assistant General Counsel

 

HERCULES TECHNOLOGY III, L.P.

 

Signature:/s/ Jennifer Choe

Print Name:Jennifer Choe

Title:Assistant General Counsel

 

HERCULES CAPITAL FUNDING TRUST 2018-1

 

Signature:/s/ Jennifer Choe

Print Name:Jennifer Choe

Title:Assistant General Counsel

 

 

 

 

EX 10.1

Schedule 1

 

 

SCHEDULE 1.1

COMMITMENTS

			
	
LENDER
	
TRANCHE
	
TERM COMMITMENT

	
Hercules Technology III, L.P.
	
Term A Loan Advance
	
$20,000,000

	
Hercules Capital Funding Trust 2018-1
	
Term A Loan Advance
	
$5,000,000

	
Hercules Capital, Inc.
	
Term B Loan Advance
	
$15,000,000

	
Hercules Capital, Inc.
	
Term C Loan Advances
	
$10,000,000

	
TOTAL COMMITMENTS
	
 
	
$50,000,000Exhibit 10.1

   

    

  

    

      

    
       

      

      2401 North Glassell Street Orange, CA  92865

    

    

    

    AMENDED

            & RESTATED EMPLOYMENT AGREEMENT

    

    

    This Amended & Restated Employment Agreement (this “Agreement”) is dated as of June 25, 2019 and made by and between Volt Information Sciences, Inc., a New York corporation (the “Company”) and Lori Schultz (“Executive”).  Reference is hereby made to those certain Employment Agreements dated
        as of July 31, 2018 and August 20, 2018 between the Company and Executive (the “Prior Agreements”) and the parties hereto expressly agree that this Agreement
        shall amend, restate, and supersede the Prior Agreements.

    

    

    
      
        	1.	
                Term

              

      

    

    Executive’s employment shall continue until terminated by either Employer or Executive. The employment will be on
        an “at-will” basis, meaning that either Executive or Employer may terminate the employment relationship at any time upon thirty (30) days prior written notice.

    

    

    
      
        	2.	
                Location

              

      

    

    Executive shall perform services at Company’s offices located in Orange, California, or at other
        locations agreed upon by the CEO and Executive.

    

    

    
      
        	3.	
                Position

              

      

    

    Executive will serve as the Company’s Chief Global Solutions Officer and report directly to the
        Company’s CEO, and in such other capacity/capacities as Company may from time to time prescribe.

    

    

    
      
        	4.	
                Duties and Responsibilities

              

      

    

    Executive shall perform the duties consistent with and shall devote Executive’s full business time
        and attention to, Executive’s duties as Chief Global Solutions Officer. During Executive’s employment with Company, Executive shall not render any services or engage in any other business, whether compensated or not, without Company’s prior written
        consent. The employment relationship shall be governed by this Agreement and the Company’s policies, procedures, and rules, which may be adopted or modified from time to time.

    

    

    
      
        	5.	
                Compensation

              

      

    

    

    

    
      
        	5.1	
                Base Salary

              

      

    

    Executive shall receive a base salary of $400,000 per year, retroactive to May 15, 2019, payable in
        accordance with the Company’s normal payroll practices, less applicable tax withholdings and other authorized deductions (“Base Salary”). Executive’s Base
        Salary may be reviewed on an annual basis and may be adjusted from time to time at the sole discretion of the Company or its Human Resources and Compensation Committee.

    

    

    
      
        	5.2	
                Annual Incentive Plan

              

      

    

    Executive will be eligible for an annual incentive award in accordance with and governed by the terms
        of the Company’s Annual Incentive Plan in place from time to time (“Volt AIP”). For Fiscal Year 2019, Executive’s target annual incentive opportunity will be
        sixty percent (60%) of Executive’s Base Salary.

    

    

    
      1

      
        

    

    
      
        	5.3	
                Long-Term Incentives

              

      

    

    The Company currently administers a 2019 Long-Term Incentive Plan pursuant to which you have been
        granted equity compensation with a grant date value of $100,000 for the fiscal year 2019 performance period. Subject to you being employed by the Company on future annual grant dates, it is currently anticipated that the Company, in its sole
        discretion and subject to the approval of its Human Resources and Compensation Committee, will grant Executive additional annual equity-based awards with a target value at least equal to Executive’s FY19 equity grant.

    

    

    
      
        	5.4	
                Recovery of Overpayment.

              

      

    

    Executive acknowledges and agrees that the Company shall have authority to recover any compensation
        received that is required to be recovered by the Sarbanes-Oxley Act of 2002, the Dodd- Frank Act of 2010, or any rules or regulations promulgated in connection therewith.

    

    

    
      
        	6.	
                Benefits

              

      

    

    
      
        	6.1	
                Executive Benefits

              

      

    

    Executive will be eligible to participate in the Company’s employee benefit plans and programs
        generally available to similarly situated executives of the Company, subject to the eligibility requirements, terms and conditions of such plans and programs. Such plans and programs are subject to change or termination by the Company in the
        Company’s sole discretion.

    
      
        	6.2	
                Paid Vacation and Sick Leave

              

      

    

    Executive shall accrue paid time off for vacation time and sick leave in accordance with the
        Company’s policies and applicable law. Vacation shall be scheduled at mutually agreeable times.

    

    

    
      
        	6.3	
                Business Expenses

              

      

    

    The Company will reimburse Executive for reasonable and necessary business expenses incurred in
        connection with the Company’s business, which may include travel expenses, food and lodging while traveling for business purposes, subject to such expense reimbursement policies as the Company may from time to time establish for its employees.

     

      

    
      
        	7.	
                Proprietary Information Obligations

              

      

    

    

    

    
      
        	7.1	
                Confidential Information

              

      

    

    

    

    During Executive’s employment, Executive will have access to and become acquainted with
        confidential, proprietary and trade secret information belonging to Company, its affiliates, parents, or subsidiaries (“Company Group”) and/or Company’s
        customers (collectively “Confidential Information”). Executive agrees not to use or disclose such Confidential Information, directly or indirectly, either
        during employment or any time thereafter, except as is reasonably necessary in the course of employment with the Company.

    

    

    Examples of Confidential Information include, but are not limited to: information concerning
        operations, methods, technology, software, developments, inventions, accounting and legal and regulatory affairs; information concerning sales, marketing, servicing, bidding, product development and investment activities and strategies; information
        concerning the identity, addresses, telephone numbers, email addresses, needs, business plans and creditworthiness of past, present and prospective customers and clients; information concerning the terms on which products and services are, were or
        will be provided to customers and prospective customers; information concerning bill and pay rates, pricing strategies for products and services; information concerning finances, financing methods, credit and acquisition or disposition plans and
        strategies; to the extent permitted by law, information concerning the employment and compensation of employees; and any other information that derives independent economic value, actual or potential, from not being generally known to or readily
        ascertainable by through appropriate means by other persons who might maintain economic value from its disclosure or use and that is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

    

    

    
      2

      
        

    

    Confidential Information does not include any document, information, technical data, or know-how which (i) before
        or after it has been disclosed to Executive, is part of the public knowledge or literature, but not as a result of any action or inaction by Executive or (ii) is approved for release by written authorization of Company.  This Section does not
        restrict Executive from providing information as required by a court or governmental agency with appropriate jurisdiction; however, in the event Executive is so required, Executive agrees to give the Company immediate written notice of such
        disclosure requirement in order to allow the Company the opportunity to respond to such request.

    

    

    Pursuant to the Defend Trade Secrets Act, 18 USC Section 1833(b), Executive shall not be held criminally or
        civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that is: (i) made in confidence to a Federal, State, or local government official or to an attorney solely for the purpose of reporting or investigating
        a suspected violation of law; or (ii) made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

    

    

    
      
        	7.2	
                Inventions

              

      

    

    All discoveries, ideas, creations, inventions and properties (collectively, “Discoveries”), written or oral, which Executive (a) creates, conceives, discovers, develops, invents or uses during employment with the Company, whether or not created,
        conceived, discovered, developed or invented during regular working hours, or which are (b) created conceived, discovered, developed invented or used by another employee, whether or not in connection with Executive’s employment, will be the sole
        and absolute property of the Company, or if agreed to between Company and a Customer, to the Customer, for any and all purposes whatsoever, in perpetuity. Executive will not have, and will not claim to have, any right, title or interest of any kind
        or nature whatsoever in or to any such Discoveries. For the avoidance of doubt, Executive hereby assigns to the Company all rights, title, and interest in and to same. If any Discoveries, or any portion thereof, are copyrightable, they shall be a
        “work made for hire,” as such term has meaning in the copyright laws of the United States.

    

    

    The previous paragraph shall not apply to any Discoveries (i) for which no equipment, supplies, facility or trade
        secret information of the Company Group or any customer were used and which were developed entirely on Executive’s own time, (ii) which do not relate to the business of the Company or to that of any customer of the Company and (iii) which do not
        result from any work performed for the Company Group or any customers.

    

    

    Upon request by the Company, Executive will: (i) disclose any such Discoveries to the Company (by a full and clear
        description) for the purpose of determining the Company’s rights; and (ii) will promptly execute and deliver all instruments and documents, and take all further action, that may be necessary or desirable in order to vest title in such Discoveries
        in the Company

    

    

    
      3

      
        

    

    
      
        	7.3	
                Continuing Obligations

              

      

    

    Executive acknowledges and agrees that the obligations in the previous section continue beyond the termination of
        Executive’s employment. Additionally, for twelve (12) months following the termination of employment for any reason, Executive agrees not to solicit or cause to be solicited for employment any employees with whom Executive worked while employed by
        Company (excluding contingent field employees).

     

      

    
      
        	7.4	
                Return of Company Property

              

      

    

    Executive agrees that on the Termination Date, or at such earlier time as the Company may request, Executive will
        immediately return to the Company all Confidential Information in Executive’s possession or under Executive’s control and will not retain any copies of such Confidential Information.

    

    

    
      
        	8.	
                Compensation on Termination

              

      

    

    

    

    
      
        	8.1	
                Payment of Final Compensation and Vested Benefits

              

      

    

    On the next payroll date following Executive’s last date of employment (“Termination Date”) (or sooner if required by law), Executive (or Executive’s estate or other legal designee) will be paid (a) all accrued but unpaid Base Salary through the
        Termination Date; (a) any earned but unpaid wages, to the extent required by law; and (b) any earned but unused vacation accrued through the Termination Date to the extent required by law. Any business expenses submitted for reimbursement will be
        paid no later than 60 days after the Termination Date. Executive will also be entitled to receive any vested benefits, consistent with the applicable plan.

    

    

    
      
        	8.2	
                Severance Benefits

              

      

    

    If this Agreement is terminated by the Company without Cause (including due to a change of control transaction) or
        by Executive for Good Reason, and subject to Executive executing a general release and waiver of rights, which includes a release of all legal claims against the Company Group and their officers, directors, and employees; a cooperation clause and a
        non-disparagement clause (“General Release”), Company will:

    

    

    (a)   continue to pay Executive’s then-current Base Salary for a period of twelve (12) months following the Termination Date, in accordance with the Company’s normal payroll practices and the
        terms of this Agreement;

    

    

    (b)   pay Executive a prorated annual incentive award pursuant to the Volt AIP with respect to the year of Executive’s termination, based on actual performance results for such year. The annual
        incentive award shall be pro-rated such that the denominator equals the total number of days occurring during the performance period for the year the Agreement is terminated and the numerator equals the number of days Executive was employed during
        such performance period, The annual incentive award shall be payable when annual incentive awards under the Volt AIP are paid to other senior executives of the Company, or earlier as required by law, but in no event later than March 15 of the year
        following the calendar year to which such payment relates; and

    

    

    
      4

      
        

    

    (c)   pay Executive a lump sum cash payment equal to twelve (12) months of the employer’s contribution toward maintaining the health benefits for Executive, employee’s spouse and eligible
        dependents at the coverage/enrollment levels in place at the time the Agreement is terminated.

    

    

    “Cause”
        means: (a) embezzlement or misappropriation by Executive of funds of the Company; (b) conviction by Executive of, or plea of guilty to or plea of nolo contendere to any felony, or any crime involving fraud, dishonesty, or moral turpitude; (c) an
        omission, misconduct, or commission by Executive of any act, dishonesty, deceit, or fraud which causes, or is reasonably likely to cause, substantial or material economic or reputational harm to the Company, as reasonably determined in good faith
        by the Company’s Board of Directors; (d) a breach by Executive of a fiduciary duty owed to the  Company; (e) a material breach of any provision of this Agreement; (f) a failure by Executive to substantially perform, as a reasonably prudent
        executive would, the duties assigned by the Company; (g) a material violation by Executive of any rule, policy or procedure of the Company, or any statutory or common law duties owed to the Company; (h) Executive engaging in activities or conduct
        reasonably likely to impair the reputation, operations, prospects or business relations of the Company, including, without limitation publicly making disparaging or derogatory statements about the Company or engaging in conduct involving any
        immoral acts; (i) death or (j) Disability.

    

    

    “Disability”

        means (i) the Company’s reasonable determination, based on evidence from a competent health care provider obtained with Executive’s cooperation, that as result of physical or mental illness, Executive is materially impaired and unable to
        perform the essential functions of Executive’s position, despite reasonable accommodation for an aggregate of ninety (90) days during any period of one hundred eighty (180) consecutive days (unless a longer period is required by law, in which case
        the longer period would apply); or (ii) Executive becoming eligible to receive benefits under the Company’s applicable long-term disability plan. If Executive is Disabled, Company may remove Executive from office and reassign Executive’s duties and
        such action shall not constitute Good Reason.

    

    

    “Good
          Reason” means the occurrence of any of the following events which continues uncured for a period of not less thirty (30) days following written notice given by Executive to the Company within ninety (90) days following the initial
        occurrence of such event, unless Executive specifically agrees in writing that such event shall not be Good Reason: (a) an aggregate reduction of ten percent (10%) or more in Base Salary, unless such reduction is part of a general reduction
        applicable to all or substantially all senior executives of the Company; (b) a change of fifty (50) miles or more in the geographic location in which Executive is assigned to work; (c) a material and adverse change to, or a material reduction of,
        Executive’s duties and responsibilities to the Company; or (d) the Company’s material breach of this Agreement.

    

    

    
      
        	9.	
                Miscellaneous

              

      

    

    

    

    
      
        	9.1	
                Representation and Warranties

              

      

    

    Except with respect to any obligations under, and potential impact of, any agreements or instruments with her
        current employer (Randstad) and/or any of its affiliates, Executive represents and warrants that Executive is (i) legally authorized to perform the services contemplated by this Agreement; (ii) he/she is not a party to any agreement or instrument
        with any third party which would prohibit Executive from entering into or performing the services contemplated by this Agreement.  Executive will not bring to the Company, or use, any confidential information or trade secrets belonging to any prior
        employer.

    

    

    
      5

      
        

    

    
      
        	9.2	
                Modification, Waiver, Enforceability and Choice of Law

              

      

    

    The terms of this Agreement may not be modified, altered, changed, or amended except by an instrument in writing
        signed by a duly authorized representative of the Company and Executive. No waiver by the Company or Executive of any breach by the other party of any condition or provision of this Agreement shall be deemed a waiver with respect to any other
        condition or provision. If any provision of this Agreement is held to be invalid or unenforceable, then the remaining provisions of this Agreement shall be deemed severable and remain in full force and effect. The terms of this Agreement shall be
        governed and construed in accordance with the laws of the State of California.

    

    

    
      
        	9.3	
                Agreement to Arbitrate Disputes

              

      

    

    Any dispute, controversy or claim arising out of, involving, affecting or related to this Agreement, or breach of
        this Agreement, or arising out of, involving, affecting or related in any way to Executive’s employment or the conditions of employment or the termination of employment, including any controversies or claims arising out of or related to the actions
        of the Company’s other employees, under Federal, State and/or local laws, and/or other such similar laws or regulations, shall be resolved by final and binding arbitration, pursuant to the Federal Arbitration Act, in accordance with the employment
        rules of the American Arbitration Association (“AAA”), which can be found at www.adr.org or a copy of the AAA rules can be provided to employee
        upon request to the Company. Before any arbitration, employee and the Company agree to attempt in good faith to resolve any dispute by negotiation within fifteen (15) days of one party’s receipt from the other party of a written request for
        negotiations. Executive and the Company agree that the time period for negotiation will be limited to no more than thirty (30) days, unless extended by mutual agreement. Any and all statutes of limitation shall be tolled during the period of
        negotiation. All offers, promises, conduct and statements, whether oral or written, made in the course of the negotiation by either of us or our representatives will be confidential, privileged and inadmissible for any purpose, including
        impeachment, in any arbitration or other proceeding involving us, provided that evidence that is otherwise admissible or discoverable shall not be rendered inadmissible or non-discoverable as a result of its use in negotiations pursuant to this
        paragraph The Company initially shall pay all of the fees and expenses of the arbitration. Each party shall bear its or his own legal expenses and disbursements incurred in connection with the arbitration, except that the arbitrator shall have the
        power to award attorneys’ fees and disbursements (i) to the prevailing party in a breach of contract claim, and/or (ii) to one party if the arbitrator determines that the other party’s claims or defenses would, if made in a U.S. federal court, give
        rise to sanctions under Rule 11 of the Federal Rules of Civil Procedure. In addition to damages, the arbitrator may award injunctive relief. This Agreement to Arbitrate Disputes does not prevent Executive from filing a charge or claim with any
        governmental administrative agency as permitted by applicable law.

    

    

    
      
        	9.4	
                Successors and Assigns

              

      

    

    Executive may not assign this Agreement. The Company may assign this Agreement to an affiliate or a person or
        entity which is a successor in interest to all or substantially all of the business operations of the Company.

    

    

    
      6

      
        

    

    
      
        	9.5	
                Code Section 409A Omnibus Provision

              

      

    

    Notwithstanding any other provision of this Agreement, it is intended that payments and benefits under this
        Agreement comply with Section 409A of the Code or with an exemption from the applicable Code Section 409A requirements and, accordingly, all provisions of this Agreement shall be construed in a manner consistent with the requirements for avoiding
        taxes and penalties under Section 409A of the Code. For purposes of this Agreement, all rights to payments and benefits hereunder of deferred compensation subject to Section 409A of the Code shall be treated as rights to receive a series of
        separate payments and benefits to the fullest extent allowed by Section 409A of the Code. For purposes of this Agreement, Executive will not be deemed to have had a termination of employment unless there has been a “separation from service” within
        the meaning of Section 409A of the Code. Furthermore, neither the Company nor any of its parents, subsidiaries, divisions, affiliates, directors, officers, predecessors, successors, employees, agents, and attorneys shall be liable if any amount
        payable or provided hereunder is subject to any taxes, penalties, or interest as a result of the application of Code Section 409A.

     

      

    Notwithstanding any provision of this Agreement, if Executive is a “specified employee” (as defined in Section
        409A of the Code and Treasury Regulations thereunder), then payment of any amount under this Agreement that is deferred compensation subject to Section 409A of the Code and the timing of which depends upon termination of employment shall be
        deferred for six (6) months after termination of employment, as required by Section 409A(a)(2)(B)(i) of the Code (the “409A Deferral Period”). In the event such payments are otherwise due to be made during the 409A Deferral Period, the payments
        that otherwise would have been made in the 409A Deferral Period shall be accumulated and paid in a lump sum on the first day of the seventh month following the Termination Date, and the balance of the payments shall be made as otherwise scheduled.

     

      

    With respect to any amount of expenses eligible for reimbursement under this Agreement, such expenses will be
        reimbursed by the Company within thirty (30) days following the date on which the Company receives the applicable invoice from the Executive in accordance with the Company’s expense reimbursement policies, but in no event later than the last day of
        the Executive’s taxable year following the taxable year in which the Executive incurs the related expenses. In no event will the reimbursements or in-kind benefits to be provided by the Company in one taxable year affect the amount of
        reimbursements or in-kind benefits to be provided in any other taxable year, nor will the Executive’s right to reimbursement or in-kind benefits be subject to liquidation or exchange for another benefit.

    

    

    The parties hereto agree to the above terms and conditions governing employment as of the date above written.

    

    

    

    

    
      	
              
                
                  
                    
                      /s/ Lori Schultz

                    

                  

                

              

            	
               

            
	LORI SCHULTZ	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
               

            	
               

            
	VOLT INFORMATION SCIENCES, INC.:	
               

            
	
               

            	
               

            
	
               

            	
               

            
	
              
                
                  
                    
                      /s/ Nancy Avedissian

                      

                    

                  

                

              

            	
               

            
	Nancy Avedissian	
               

            
	Senior Vice President, General Counsel & Corporate Secretary	 

    

    

    

    

    

    

    

    

    

    

    

    

    

  

  7

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