Document:

acer-ex101_37.htm

Exhibit 10.1

 

SECURITIES PURCHASE AGREEMENT

THIS SECURITIES PURCHASE AGREEMENT (this “Agreement”) is dated as of November 29, 2022 by and between Acer Therapeutics Inc., a Delaware corporation (the “Company”), and each of the persons or entities listed on Schedule I attached hereto (together hereinafter referred to as the “Investors” and each individually, an “Investor”).

BACKGROUND

	
A.
	
The Company and the Investors are executing and delivering this Agreement in reliance upon the exemption from registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506 of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act.

	
B.
	
The Company wishes to sell and issue to the Investors, and the Investors severally and not jointly wish to purchase from the Company, upon the terms and conditions stated in this Agreement, an aggregate of 1,229,508 shares (the “Shares”) of common stock of the Company, par value $0.0001 per share (“Common Stock”), in exchange for the aggregate purchase price of $1,499,999.76, with the number of Shares to be purchased by each Investor and the Purchase Price payable by each Investor for such Shares set forth opposite their respective names on Schedule I attached hereto. 

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and the Investors agree as follows:

Article I
DEFINITIONS

1.1Definitions

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

“Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 144 under the Securities Act.

“Agreement” has the meaning set forth in the Preamble.

“Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in the City of New York, New York are authorized or required by law to remain closed.

“Closing” means the closing of the purchase and sale of the Shares pursuant to Section 2.1.

 

 

 

 

“Closing Date” means the date and time of the Closing, which will be held on December 2, 2022, or such other day and time as may be mutually agreed upon by the Company and the Investors.

“Company Board” means the board of directors of the Company.

“Company Covered Person” means, with respect to the Company as an “issuer” for purposes of Rule 506 promulgated under the 1933 Act, any Person listed in the first paragraph of Rule 506(d)(1).

“Common Stock” has the meaning set forth in the Preamble.

“Common Stock Equivalents” means any securities of the Company which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock or other securities that entitle the holder to receive, directly or indirectly, Common Stock.

“Company” has the meaning set forth in the Preamble. 

“Company Charter Documents” means the certificate of incorporation and bylaws of the Company, each as amended to date.

“Company Stock Plans” means the Company’s 2018 Stock Incentive Plan, 2013 Stock Incentive Plan, as amended, and Amended and Restated 2010 Stock Incentive Plan, as amended.

“Company Stockholders” means holders of shares of Common Stock in their respective capacities as such. 

“Disclosure Materials” has the meaning set forth in Section 3.1(g). 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“GAAP” has the meaning set forth in Section 3.1(h).

“Governmental Entity” means any supranational, national, state, municipal, local or foreign government, any instrumentality, subdivision, court, administrative agency or commission or other governmental authority or instrumentality.

“Investor” has the meaning set forth in the Preamble.

“knowledge of the Company,” “knowledge” or “the Company’s knowledge” means with respect to any statement made to the Company’s knowledge, that the statement is based upon the actual knowledge of the executive officers of the Company having responsibility for the matter or matters that are the subject of the statement.

“Legal Requirements” means any federal, state, local, municipal, foreign or other law, statute, constitution, principle of common law, resolution, ordinance, code, order, edict, decree, 

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rule, regulation, ruling or requirement issued, enacted, adopted, promulgated, implemented or otherwise put into effect by or under the authority of any Governmental Entity.

“Liabilities” means any liability, obligation or commitment of any kind (whether accrued, absolute, contingent, matured, unmatured or otherwise). 

“Lien” means any material pledges, liens, charges, encumbrances and security interests of any kind or nature whatsoever.

“Material Adverse Effect” means any result, occurrence, change, event, circumstance, fact or effect (each, an “Effect”) that, individually or in the aggregate with any such other Effects (regardless of whether or not such Effect constitutes a breach of the representations and warranties made by the Company in this Agreement), is or is reasonably likely to be materially adverse to the business, results of operations, condition (financial or otherwise), or assets of the Company, provided that in determining whether a Material Adverse Effect has occurred, there shall be excluded any Effect on the Company relating to or arising in connection with (i) changes in Legal Requirements or the adoption or amendment of financial accounting standards by the Financial Accounting Standards Board (provided that such conditions do not have a materially disproportionate impact on the Company), (ii) the declaration by the United States of a national emergency or war, or the occurrence of any other calamity or crisis, in each case, arising after the date hereof (including any act of terrorism) (provided that such conditions do not have a materially disproportionate impact on the Company), (iii) general business or economic conditions (provided that such conditions do not have a materially disproportionate impact on the Company), (iv) conditions generally affecting the industry in which the Company operate (provided that such conditions do not have a materially disproportionate impact on the Company), (v) any failure by the Company to meet any internal projections or analyst estimates (but not the underlying reasons for the failure to meet any internal projections or analyst estimates), and (vi) any action taken by the Company at the written request of the Investors or that the Investors consent to in writing.

“Material Contract” means any contract of the Company that has been filed or was required to have been filed as an exhibit to the SEC Reports pursuant to Item 601(b)(4) or Item 601(b)(10) of Regulation S-K.

“Order” has the meaning set forth in Section 5.1(a).

“Person” means any individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, or joint stock company.

“Purchase Price” has the meaning set forth in Section 2.1.

“Regulation D” has the meaning set forth in the Preamble. 

“Rule 144” means Rule 144 promulgated by the SEC pursuant to the Securities Act, as such Rules may be amended from time to time, or any similar rule or regulation adopted by the SEC having substantially the same effect as such Rule.

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“SEC” has the meaning set forth in the Preamble.

“SEC Reports” has the meaning set forth in Section 3.1(g).

“Securities Act” has the meaning set forth in the Preamble. 

“Shares” has the meaning set forth in the Preamble.

“Subsidiary” means with respect to any Person (i) a corporation of which fifty percent (50%) or more of the combined voting power of the outstanding voting stock of which is owned, directly or indirectly, by such Person or by one of more other Subsidiaries of such Person or by such Person and one or more other Subsidiaries thereof; (ii) a partnership of which such Person, or one or more other Subsidiaries of such Person or such Person and one or more other Subsidiaries thereof, directly or indirectly, is the general partner and has the power to direct the policies, management and affairs of such partnership; (iii) a limited liability company of which such Person or one or more other Subsidiaries of such Person or such Person and one or more other Subsidiaries thereof, directly or indirectly, is the managing member and has the power to direct the policies, management and affairs of such company; or (iv) any other Person (other than a corporation, partnership or limited liability company) in which such Person, or one or more other Subsidiaries of such Person or such Person and one or more other Subsidiaries thereof, directly or indirectly, has at least a majority ownership and power to direct the policies, management and affairs thereof.

“Trading Day” means any day on which the primary market on which the Common Stock is listed or quoted or traded is open for trading.

“Transfer Agent” means Continental Stock Transfer & Trust Company or any successor transfer agent for the Company.

Article II
PURCHASE AND SALE

2.1Closing

.  Subject to the terms and conditions set forth in this Agreement, at the Closing the Company shall issue and sell to the Investors, and the Investors shall purchase from the Company, such number of Shares at a per share price of $1.22 per share (the “Purchase Price”), with the number of Shares and the Purchase Price payable by each Investor for such Shares as set forth opposite each Investor’s name on Schedule I hereto.  The sale and purchase of the Shares shall take place at Closing, which will be held remotely via the exchange of documents and signatures on the Closing Date.  Notwithstanding anything to the contrary in this Agreement, the obligations of each Investor pursuant to this Agreement shall be several and not joint, and each Investor shall only be obligated to purchase the number of shares set forth opposite its name on Schedule I.

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2.2Closing Deliveries

.

(a)At the Closing Date, the Company shall instruct the Transfer Agent to enter in the name of each Investor a book entry position evidencing the number of Shares such Investor is purchasing as set forth on Schedule I and shall instruct the Transfer Agent to provide a book entry statement to each Investor to evidence ownership of the Shares.  The Shares shall be subject to the restrictions and legends set forth in Section 4.1(b) hereto. 

(b)At the Closing Date, each Investor shall deliver or cause to be delivered to the Company the amount of the Purchase Price set forth opposite such Investor’s name on Schedule I hereto under the heading “Purchase Price” in United States dollars and in immediately available funds, by wire transfer to an account designated to the Investors by the Company.

Article III
REPRESENTATIONS AND WARRANTIES

3.1Representations and Warranties of the Company

.  Except as disclosed in the SEC Reports, the Company hereby represents and warrants as of the date hereof and the Closing Date (except for the representations and warranties that speak as of a specific date, which shall be made as of such date), to each of the Investors:

(a)Subsidiaries.  Except as disclosed in the SEC Reports, the Company has no Subsidiaries and the Company does not own or have any right or obligation (by law, contract or otherwise) to make any investment or otherwise acquire, directly or indirectly, any outstanding capital stock of, or other equity interest in, any Person.

(b)Organization and Qualification.  The Company is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite corporate power and authority to own and use its properties and assets and to carry on its business as currently conducted.  The Company is not in violation of any of the provisions of the Company Charter Documents.  The Company is duly qualified to do business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would not have or reasonably be expected to result in a Material Adverse Effect.

(c)Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder.  The execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of the Company and no further consent or action is required by the Company, the Company Board or the Company Stockholders.  This Agreement has been (or upon delivery will be) duly executed by the Company and is, or when delivered in accordance with the terms hereof, will constitute, the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as may be limited by (A) applicable bankruptcy, insolvency, reorganization or 

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other laws of general application relating to or affecting the enforcement of creditors rights generally, and (B) the effect of rules of law governing the availability of specific performance and other equitable remedies.

(d)No Conflicts. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby do not, and will not, (i) conflict with or violate any provision of the Company Charter Documents, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would result in a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any Material Contract or (iii) assuming that all consents, filings, approvals, authorizations and other actions as described herein have been obtained or made, result in a violation of any Legal Requirement or Order to which the Company is subject (including, assuming the accuracy of the representations and warranties of the Investors set forth in Section 3.2 hereof, federal and state securities laws), except in the case of clauses (ii) and (iii) such as would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect.

(e)Required Filings and Consents. No consent, approval, Order or authorization of, or registration, declaration or filing with any Governmental Entity is required to be obtained or made by the Company in connection with the execution and delivery of this Agreement, the performance by the Company of this Agreement or the transactions contemplated hereby, except for such consents, approvals, Orders, authorizations, registrations, declarations and filings as may be required under applicable federal, foreign and state securities (or related) laws, or the rules and regulations of any self-regulatory organization to which the Company or its securities are subject.

(f)Capitalization. The capitalization of the Company is as described in its most recently filed SEC Report on Form 10-Q for the quarterly period ended September 30, 2022, except for awards made or exercised under the Company Stock Plans or sales made pursuant to the Company’s at-the-market offering program.  No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by this Agreement that have not been effectively waived as of the Closing Date. Except as set forth in the SEC Reports, in the first sentence of Section 3.1(f) or a result of the purchase and sale of the Shares, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents. The issuance and sale of the Shares will not obligate the Company to issue shares of Common Stock or other securities to any Person (other than the Investors) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. All of the outstanding shares of capital stock of the Company are validly issued, fully paid and nonassessable, have been issued in compliance in all material respects with all applicable federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities which violation would 

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have or would reasonably be expected to result in a Material Adverse Effect.  No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Shares. Except as disclosed in the SEC Reports, there are no stockholder agreements, voting agreements, registration rights agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the Company’s knowledge, between or among any of the Company’s stockholders. 

(g)SEC Reports.  In the last twelve (12) months, the Company has timely filed all registration statements, reports, schedules, registration statements, forms, statements and other documents required to be filed by it under the Securities Act and the Exchange Act.  Such registration statements, reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, together with any materials filed or furnished by the Company, whether or not any such documents were required, being collectively referred to herein as the “SEC Reports” and, together with this Agreement and any schedules, exhibits and attachments hereto, the “Disclosure Materials.” As of their respective filing dates, the SEC Reports filed by the Company complied in all material respects with the requirements of the Securities Act, the Exchange Act and the rules and regulations of the SEC promulgated thereunder, and any successor rules or regulations thereto, and none of the SEC Reports, when filed by the Company, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case except to the extent corrected by an SEC Report filed subsequently but prior to the date hereof.  

(h)Financial Statements. The financial statements of the Company included in the SEC Reports comply, in all material respects with applicable accounting requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing.  Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements, the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP or may be condensed or summary statements, and fairly present in all material respects the consolidated financial position of the Company as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

(i)No Changes; Undisclosed Liabilities.  Since the date of the latest audited financial statements included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof (i) there has been no event, occurrence or development that has had or that would reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any material Liabilities other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s consolidated financial statements pursuant to GAAP or required to be disclosed in filings made with the SEC, (iii) the Company has not altered materially its method of accounting or changed its auditors, except as disclosed in its SEC Reports, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase 

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or redeem any Common Stock, preferred stock or any other shares of capital stock, voting securities or other ownership interest, if any, of the Company and (v) the Company has not issued any equity securities to any officer, director or Affiliate of the Company except Common Stock issued pursuant to existing Company Stock Plans or executive and director compensation arrangements disclosed in the SEC Reports.

(j)Absence of Litigation.  There is no action, suit, claim, or proceeding, inquiry or investigation, before or by any Governmental Entity pending or, to the knowledge of the Company, threatened against or affecting the Company which would materially and adversely affect the legality, validity or enforceability of this Agreement or the consummation of the transactions contemplated hereby.  

(k)No General Solicitation.  Neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of the Shares.

(l)No Integration.  Neither the Company nor any of its Affiliates nor any Person acting on the Company’s behalf has, directly or indirectly, made any offer or sale of any security or solicitation of any offer to buy any security under circumstances that would eliminate the availability of the exemption from registration under Regulation D in connection with the offer and sale by the Company of the Shares as contemplated hereby (including, without limitation, as a result of the offering of the Shares pursuant to this Agreement being integrated with prior offerings by the Company for purposes of the Securities Act or any applicable stockholder approval provisions). Neither the Company nor any of its Affiliates nor any Person acting on the Company’s behalf has offered or sold or will offer or sell any securities, or has taken or will take any other action, which would reasonably be expected to subject the offer, issuance or sale of the Shares, as contemplated hereby, to the registration provisions of the Securities Act.

(m)Investment Company Status.  The Company is not, and after giving effect to the issuance and sale of the Shares, would not be required to be registered as an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

(n)Private Placement.  Assuming the accuracy of the representations and warranties of the Investors contained in Section 3.2 and the compliance by the Investors with the provisions set forth herein, the issuance and sale of the Shares in the manner contemplated by this Agreement is exempt from the registration requirements of the Securities Act.

(o)Listing and Maintenance Requirements.  The Common Stock is listed on the Nasdaq Capital Market.  Except as set forth in the SEC Reports, the Company has not, in the twelve (12) months preceding the date hereof, received written notice from the Nasdaq Capital Market to the effect that the Company is not in compliance with the listing or maintenance requirements of such trading market.  Except as set forth in the SEC Reports, the Company is in compliance, in all material respects, with the listing and maintenance requirements of the Nasdaq Capital Market.  

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(p)No Bad Actors. No “bad actor” disqualifying event described in Rule 506(d)(1)(i)-(viii) of the Securities Act (a “Disqualification Event”) is applicable to the Company or, to the Company’s knowledge, any Company Covered Person, except for a Disqualification Event as to which Rule 506(d)(2)(ii–iv) or (d)(3) is applicable.

3.2Representations, Warranties and Covenants of the Investors

.  Each Investor, severally and not jointly, hereby represents, warrants and covenants to the Company as of the date hereof and as of the Closing Date (except for the representations and warranties that speak as of a specific date, which shall be made as of such date) as follows:

(a)Organization; Authority.  Such Investor, if it is a natural person, is of legal age in his or her country of residence and has full legal capacity to execute, deliver and perform his or her obligations under this Agreement.  Such Investor, if it is a legal entity, is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with the requisite corporate, partnership, limited liability or other power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder.  The purchase by such Investor of Shares hereunder has been duly authorized by all necessary corporate, partnership, limited liability or other action on its part.  This Agreement has been duly executed and delivered by such Investor and constitutes the valid and binding obligation of such Investor, enforceable against it in accordance with its terms, except as may be limited by (i) applicable bankruptcy, insolvency, reorganization or other laws of general application relating to or affecting the enforcement of creditors rights generally, and (ii) the effect of rules of law governing the availability of specific performance and other equitable remedies.

(b)Accredited Investor.  Each Investor is an “accredited investor” as defined in Rule 501(a) of Regulation D.  Each Investor was not organized solely for the purpose of acquiring the Shares and is not required to be registered as a broker-dealer under Section 15 of the Exchange Act.

(c)Experience of the Investor.  Such Investor, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Shares and has so evaluated the merits and risks of such investment.  Such Investor understands that it must bear the economic risk of this investment in the Shares indefinitely and is able to bear such risk and is able to afford a complete loss of such investment.

(d)Access to Information.  Such Investor acknowledges that copies of the SEC Reports are available on the SEC’s EDGAR system. Such Investor acknowledges that it has reviewed the Disclosure Materials and has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Shares and the merits and risks of investing in the Shares, and (ii) access to information about the Company and its financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment.  Neither such inquiries nor any other investigation conducted by or on behalf of such Investor or its representatives or counsel shall modify, amend or affect such Investor’s right to rely on the truth, accuracy and completeness of 

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the Disclosure Materials and the Company’s representations and warranties contained in this Agreement.

(e)Restricted Securities.  Such Investor understands that the Shares are characterized as “restricted securities” under the U.S. federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such laws and applicable regulations such securities may be resold without registration under the Securities Act only in certain limited circumstances.

(f)No Public Sale or Distribution.  Such Investor is acquiring the Shares for its own account and not with a view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered under the Securities Act or under an exemption from such registration and in compliance with applicable federal and state securities laws, and such Investor does not have a present arrangement to effect any distribution of the Shares to or through any person or entity.

(g)General Solicitation.  Such Investor is not purchasing the Shares as a result of any advertisement, article, notice or other communication regarding the Shares published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general advertisement.

(h)Brokers or Finders.  There is no investment banker, broker, finder or other intermediary that has been retained by, or is authorized to act on behalf of, such Investor or any of its Affiliates, or any of their respective officers or directors in their capacity as officers or directors, who might be entitled to any banking, broker’s, finder’s or similar fee or commission in connection with the transactions contemplated by this Agreement.

(i)No Rule 506 Disqualifying Activities. Such Investor has not taken any of the actions set forth in, and is not subject to, the disqualification provisions of Rule 506(d)(1) of the Securities Act.

(j)Availability of Funds.  On the Closing Date, such Investor will have immediately available funds in cash that will be sufficient to fulfill its obligations under Article II. 

Article IV
ADDITIONAL AGREEMENTS

4.1Transfer Restrictions

.

(a)Each Investor severally covenants that the Shares will only be disposed of pursuant to an effective registration statement under, and in compliance with the requirements of, the Securities Act or pursuant to an available exemption from the registration requirements of the Securities Act, and in compliance with any applicable state securities laws.  

(b)The Investors agree that the following legend shall be imprinted on any certificate book entry statement evidencing any of the Shares:

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE 

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SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS.

The legend set forth above shall be removed and the Company shall issue a certificate or book entry statement without such legend to the holder of the Shares upon which it is stamped, if, unless otherwise required by state securities laws, (i) such Shares are registered for resale under the Securities Act, (ii) in connection with a sale, assignment or other transfer, such holder provides the Company with an opinion of counsel delivered to the Company, the form and substance of which opinion shall be reasonably acceptable to the Company, that the sale, assignment or transfer of the Shares may be made without registration under the applicable requirements of the Securities Act or (iii) such holder provides the Company with reasonable assurance that the Shares can be sold, assigned or transferred pursuant to Rule 144 of the Securities Act (if the transferor is not an Affiliate of the Company) or have been sold under Rule 144.  

Additionally, the Investors agree that the following legend shall be imprinted on any certificate book entry statement evidencing any of the Shares so long as the Company deems the Investor an affiliate of the Company, and for at least three months thereafter:

THESE SECURITIES ARE OWNED BY A PERSON, OR PERSONS, WHO MAY BE CONSIDERED AN AFFILIATE FOR PURPOSES OF RULE 144 UNDER THE SECURITIES ACT.  NO TRANSFER OF THESE SECURITIES OR ANY INTEREST THEREIN MAY BE MADE, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, UNLESS THE ISSUER HAS RECEIVED AN OPINION OF COUNSEL, SATISFACTORY TO IT, THAT SUCH TRANSFER DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT.

4.2Furnishing of Information

.  Until the date that all of the Investors owning Shares sell all of the Shares, the Company shall use its best efforts to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act.  The Company further covenants that it will take such further action as any holder of Shares may reasonably request to satisfy the provisions of this Section 4.2.

4.3Integration

.  The Company shall not, and shall use its commercially reasonably efforts to ensure that no Affiliate thereof shall, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that 

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would be integrated with the offer or sale of the Shares in a manner that would require the registration under the Securities Act of the sale of the Shares to the Investors or that would be integrated with the offer or sale of the Shares for purposes of the rules and regulations of the Nasdaq Capital Market (or successor trading market where the Common Stock is traded).

4.4Form D; Blue Sky Filings

.  The Company agrees to timely file a Form D with respect to the Shares as required under Regulation D and to provide a copy thereof, promptly upon request of any of the Investors.  The Company shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the Shares for, sale to the Investors at the Closing under applicable securities or “Blue Sky” laws of the states of the United States, and shall provide evidence of such actions promptly upon request of the Investors.

4.5Acknowledgement

.  Each Investor hereunder acknowledges its primary responsibilities under the Securities Act and accordingly will not sell or otherwise transfer the Shares or any interest therein without complying with the requirements of the Securities Act.  

4.6Commercially Reasonable Efforts

.  Upon the terms and subject to the conditions set forth in this Agreement, each of the Investors and the Company shall use commercially reasonable efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with the other party or parties hereto in doing, all things reasonably necessary, proper or advisable under applicable Legal Requirements to consummate and make effective, in the most expeditious manner practicable, the transactions contemplated by this Agreement, including using commercially reasonable efforts to: (i) cause the conditions to the issuance of the Shares pursuant to this Agreement set forth in Article V to be satisfied; (ii) obtain all necessary actions or non-actions, waivers, consents, approvals, orders and authorizations from Governmental Entities and make all necessary registrations, declarations and filings with Governmental Entities; and (iii) execute or deliver any additional instruments reasonably necessary to consummate the transactions contemplated by, and to fully carry out the purposes of, this Agreement.  The Company and the Investors shall cooperate with one another (x) in determining whether any action by or in respect of, or filing with, any Governmental Entity is required, or any actions, consents, approvals or waivers are required to be obtained from parties to any Material Contracts, in connection with the consummation of the transactions contemplated by this Agreement and (y) in taking such reasonable actions or making any such filings, furnishing information required in connection therewith and seeking timely to obtain any such actions, consents, approvals or waivers.

4.7Use of Proceeds

.  The Company shall use the net proceeds from the sale of the Shares for working capital and general corporate purposes.

Article V
CONDITIONS

5.1Conditions to the Obligations of Each Party to Perform its Obligations under this Agreement

.  The respective obligations of each party to this Agreement shall be subject to the satisfaction at or prior to the Closing Date of the following conditions:

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(a)No Order.  No Governmental Entity of competent jurisdiction shall have enacted, issued, promulgated, enforced or entered any statute, rule, regulation, executive order, decree, injunction, judgment, ruling or any other order (each, an “Order”) which (i) is in effect and (ii) has the effect of preventing or making the issuance of the Shares pursuant to this Agreement illegal.

5.2Additional Conditions to the Obligations of the Company

.  The obligation of the Company to consummate and effect the issuance of the Shares hereunder shall be subject to the satisfaction at or prior to the Closing Date of each of the following conditions, any of which may be waived, in writing, exclusively by the Company:

(a)Representations and Warranties.  The representations and warranties of the Investors set forth in this Agreement shall be true and correct in all material respects on and as of the Closing Date except for those representations and warranties which address matters only as of a particular date, which representations shall be true and correct in all material respects as of such particular date.

(b)Agreements and Covenants.  Each of the Investors shall have performed or complied in all material respects with its agreements and covenants required by this Agreement to be performed or complied with by Investors at or prior to the Closing Date.

(c)Proceedings.  There shall not be pending any suit or litigation challenging or seeking to restrain or prohibit the consummation of any of the transactions contemplated by this Agreement, including the issuance of the Shares.

5.3Additional Conditions to the Obligations of the Investors

.  The obligations of the Investors to consummate and effect the issuance of the Shares hereunder shall be subject to the satisfaction at or prior to the Closing Date of each of the following conditions, any of which may be waived, in writing, exclusively by the Investors:

(a)Representations and Warranties.  The representations and warranties of the Company set forth in this Agreement shall be true and correct in all material respects on and as of the Closing Date, except for those representations and warranties which address matters only as of a particular date, which representations and warranties shall be true and correct in all material respects as of such particular date.

(b)Agreements and Covenants.  The Company shall have performed or complied in all material respects with its agreements and covenants required by this Agreement to be performed or complied with by it at or prior to the Closing Date.

(c)Material Adverse Effect.  Since the date of this Agreement, there shall not have occurred a Material Adverse Effect.

(d)Proceedings.  There shall not be pending any suit or litigation challenging or seeking to restrain or prohibit the consummation of any of the transactions contemplated by this Agreement, including the issuance of the Shares.

13

 

 

 

(e)Nasdaq; Trading.  No stop order or suspension of trading shall have been imposed by Nasdaq or the SEC or any other Governmental Entity with respect to public trading in the Common Stock.

Article VI
MISCELLANEOUS

6.1Termination

.  In the event that the Closing shall not have occurred due to the failure of the Company or any Investor to satisfy the conditions set forth in Article V above (and the non-breaching party’s failure to waive such unsatisfied condition(s)), the non-breaching party shall have the option to terminate this Agreement with respect to such breaching party at the close of business on the tenth (10) Business Day following the date hereof.

6.2Fees and Expenses

.  Except as expressly set forth herein, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement and the transactions contemplated hereby.

6.3Entire Agreement

.  This Agreement, together with the exhibits and schedules hereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.  At or after the Closing, and without further consideration, the Company will execute and deliver to the Investors such further documents as may be reasonably requested to give practical effect to the intention of the parties hereunder.

6.4Amendments; Waivers

.  No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an amendment, by the Company and each of the Investors.  No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right.

6.5Notices

.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via email at the email address specified on the signature pages hereto, (b) the Trading Day following the date of deposit with a nationally recognized overnight courier service, or (c) upon actual receipt by the party to whom such notice is required to be given.  The addresses and email addresses for such notices and communications are those set forth on the signature pages hereof, or such other address as may be designated in writing hereafter, in the same manner, by any such Person.

6.6Construction

.  The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.  

14

 

 

 

The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.

6.7Successors and Assigns

.  This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.  The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Investors.  An Investor may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Company, except that such Investor may transfer or assign its rights and obligations under this Agreement, in whole or in part, to one or more of their respective Affiliates at any time; provided that such transfer or assignment will not relieve such Investor of any of its obligations hereunder.

6.8Persons Entitled to Benefit of Agreement

.  This Agreement shall inure to the benefit of and be binding upon the Company and the Investors and their respective successors and permitted assigns.  Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any Person, other than those Persons mentioned in the preceding sentence or otherwise explicitly mentioned in this Agreement, any legal or equitable right, remedy or claim under or in respect of this Agreement, or any provisions herein contained, this Agreement and all conditions and provisions hereof being intended to be and being for the sole and exclusive benefit of such Persons and for the benefit of no other Person.

6.9Governing Law

.  This Agreement shall be governed in all respects, including without limitation validity, interpretation and effect, by the laws of the State of Delaware applicable to contracts executed and to be performed wholly within such state without giving effect to the choice of law principles of such state.

6.10Dispute Resolution

.  The Parties agree that irreparable damage would occur in the event any of the provisions of this Agreement were not performed in accordance with the terms hereof and that such damage would not be adequately compensable in monetary damages.  Accordingly, the Parties hereto shall be entitled to an injunction or injunctions to prevent breaches of this Agreement, to enforce specifically the terms and provisions of this Agreement exclusively in the Court of Chancery or other federal or state courts of the State of Delaware, in addition to any other remedies at law or in equity, and each party agrees it will not take any action, directly or indirectly, in opposition to another party seeking relief.  Each of the Parties hereto agrees to waive any bonding requirement under any applicable law, in the case any other party seeks to enforce the terms by way of equitable relief.  Furthermore, each of the Parties hereto (a) consents to submit itself to the exclusive personal jurisdiction of the Court of Chancery or, to the extent that the Delaware Court of Chancery declines to exercise jurisdiction over the matter, other federal or state courts of the State of Delaware in the event any dispute arises out of this Agreement or the transactions contemplated by this Agreement, (b) agrees that it shall not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court, (c) agrees that it shall not bring any action relating to this Agreement or the transactions contemplated by this Agreement in any court other than the Court of Chancery or, to the extent that the Delaware Court of Chancery declines to exercise jurisdiction over the matter, other federal or state courts of the State of Delaware, and (d) each of the Parties irrevocably consents to service of process by a reputable overnight mail delivery service, signature requested, to the address set forth in this Agreement.

15

 

 

 

6.11Waiver of Jury Trial

.  Each of the Parties hereto waives any right to request a trial by jury in any litigation with respect to this Agreement and represents that counsel has been consulted specifically as to this waiver.

6.12Execution

.  This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart.  If any signature is delivered by facsimile transmission or email attachment, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or email-attached signature page were an original thereof.

6.13Severability

.  If any provision of this Agreement is prohibited by law or otherwise held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement.

6.14Independent Nature of Investors’ Obligations and Rights

.  The obligations of each Investor under this Agreement are several and not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance of the obligations of any other Investor under this Agreement.  The decision of each Investor to purchase Shares pursuant to this Agreement has been made by such Investor independently of any other Investor and independently of any information, materials, statements or opinions as to the business, affairs, operations, assets, properties, liabilities, results of operations, condition (financial or otherwise) or prospects of the Company which may have been made or given by any other Investor or by any agent or employee of any other Investor, and no Investor or any of its agents or employees shall have any liability to any other Investor (or any other Person) relating to or arising from any such information, materials, statements or opinions.  Nothing contained herein, and no action taken by any Investor pursuant thereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated herein.  Each Investor acknowledges that no other Investor has acted as agent for such Investor in connection with making its investment hereunder and that no other Investor will be acting as agent of such Investor in connection with monitoring its investment hereunder.  Each Investor shall be entitled to independently protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for any other Investor to be joined as an additional party in any proceeding for such purpose.

[SIGNATURE PAGES TO FOLLOW]

 

 

16

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above. 

 

ACER THERAPEUTICS INC.

 

 

By:  /s/ Harry S. Palmin

Name: Harry S. Palmin

Title:  Chief Financial Officer

 

Address for Notice:

 

Acer Therapeutics Inc.

One Gateway Center, Suite 351

300 Washington Street

Newton, MA 02458

Attn: Harry S. Palmin

         Chief Financial Officer

Email: hpalmin@acertx.com

 

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

 

Donald R. Joseph, Chief Legal Officer 

Acer Therapeutics Inc. 

One Gateway Center, Suite 351

300 Washington Street 

Newton, MA 02458   

E-mail: djoseph@acertx.com 

 

 

 

Company Signature Page

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

 

/s/ Chris Schelling

Chris Schelling

 

Address for Notice:

 

 

Investor Signature Page

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

 

/s/ Stephen J. Aselage

Stephen J. Aselage

 

Address for Notice:

 

 

 

Investor Signature Page

 

 

 

 

Schedule I

 

	
Investors
	
Number of Shares
	
 
	
Purchase Price

	
Chris Schelling
	
819,672
	
 
	
$999,999.84

	
Stephen J. Aselage
	
409,836
	
 
	
$499,999.92

	
 
	
1,229,508
	
 
	
$1,499,999.76

 

 

Schedule IEX-10.1

 Exhibit 10.1 

November 25, 2022 
 By Electronic Delivery

 Kanika Soni 
  

	 	RE:	 Confidential Separation Agreement and General Release 

Dear Kanika: 
 This Confidential Separation
Agreement and General Release (the “Agreement”) sets forth the understanding between you and Tripadvisor LLC (hereinafter the “Company”), relating to the termination of your employment with the Company. 

The purpose of this Agreement is to establish an amicable arrangement for ending your employment relationship, to release the Company from any
claims, and to permit you to receive severance pay and related benefits. Your right to receive the benefits described below is subject to your timely and effective signature and delivery of this Agreement and a supplemental release agreement
(“Supplemental Release Agreement”). Although the date of your termination will be April 1, 2023 (the “Termination Date”), you have at least
twenty-one (21) calendar days from your receipt of this Agreement to consider whether to sign it. Once you have signed the Agreement, you will have a period of seven (7) days to revoke the Agreement,
and it will not become effective until this revocation period has expired, without revocation. If you have not delivered a signed copy of this Agreement, either electronically via DocuSign or hard copy to Heather Meterparel,
TripAdvisor LLC, 400 1st Avenue, Needham MA, 02494 by December 16, 2022, your eligibility to receive the benefits described in
Section 2 below will terminate, because the offers in this Agreement will expire. 
 Your right to receive the severance pay and
benefits detailed below is conditioned upon your execution (and non-revocation) of both the Agreement and the Supplemental Release Agreement. A copy of the Supplemental Release Agreement is attached as
Exhibit A and will be provided to you prior to your Termination Date; however, you may not sign the Supplemental Release Agreement any earlier than your Termination Date. 

 

	 	1.	 Employment Status, Final Payments and Termination of Benefits. 

 

	 	(a)	 You hereby resign from all positions as an officer or director held with Tripadvisor, Inc. and all of its
affiliates and subsidiaries, effective as of January 15, 2023, and agree to sign and return such documents confirming the resignations as the Company or any of its subsidiaries may reasonably request. 

 

	 	(b)	 Between January 15, 2023 and the Termination Date, you will be employed in the role of Advisor to the
Chief Executive Officer. 

  

	 	(c)	 Your employment with the Company will end on the Termination Date. Your current salary and benefits will cease
as of the Termination Date, and any entitlement you have or might have under any Company-provided benefit program will also end except as required by federal or state law or as otherwise described below 

	 	(d)	 You will be paid for all wages earned but unpaid through the Termination Date. 

 

	 	(e)	 You will be paid for all vacation time accrued and unused through the Termination Date. 

 

	 	(f)	 You will be reimbursed for any business expenses incurred and approved through the Termination Date consistent
with Company policy, subject to the timely submission of properly documented business expense reports. 

  

	 	(g)	 Your rights under the federal law known as COBRA shall attach beginning the first day of the month following
your Termination Date and will entitle you to participate in in the Company’s group health plans or similar plans if those plans cease to exist, to the same extent you are participating in such plans as of your Termination Date, for a period of
up to eighteen (18) months from your Termination Date (this period of time may be extended if you are deemed eligible under the COBRA statute and meet the statutory requirements). To elect coverage, you must complete the COBRA enrollment
documents within 60 days of the date the COBRA notice is provided or the date your group health plan coverage terminates, whichever is later, and such timely elected coverage will be retroactive to the first day of the month following your
Termination Date. 

  

	 	(h)	 After the Termination Date, you will not be entitled to participate further in any Company
benefits plans, except as noted above in clause (g). For example, you will no longer accrue vacation benefits, and you will no longer be eligible to participate in the Company’s 401(k) plan, life insurance, or disability plans.

  

	 	(i)	 You will receive a 2022 corporate bonus payout based on actual performance. The bonus will be calculated in the
same manner as 2022 earned corporate bonuses are calculated for Tripadvisor employees generally. The bonus payment, less required withholding taxes or other similar governmental payments or charges, will be made at the same time that the 2022 earned
corporate bonuses are paid to Tripadvisor employees generally. 

  

	 	(j)	 All existing equity grants, including performance-based restricted stock units, restricted stock units, and
stock options, will continue to vest pursuant to their vesting schedules through the Termination Date in accordance with the equity agreements and the Tripadvisor, Inc. 2018 Stock and Annual Incentive Plan. 

 2. Separation Pay and Other Benefits. After the Company’s timely receipt of the
Agreement and the Supplemental Release Agreement signed by you and the expiration of the 7-day revocation periods without timely and effective revocation by you, and after your return of all Company property
as set forth in Section 3 below (the first day after all such conditions have been met will be the “Effective Date”), the Company shall provide you with the payments and benefits described below. For the avoidance of
doubt, the Company’s timely receipt of an executed and unrevoked copy of this Agreement and the Supplemental Release Agreement is an express condition to your eligibility to receive the payments and benefits described in this Section 2
below. Moreover, your right to receive the payments and benefits is subject to your continuing to satisfy through the Termination Date the eligibility requirements set forth in Sections 2.1, 2.2 and 3.3 of the Tripadvisor, Inc. Executive Severance
Plan and Summary Plan Description (the “Plan”). You agree that the separation pay and benefits are above and beyond any payments otherwise owed to you under the terms of your employment with the Company and are not required by law.

  

	 	(a)	 Consistent with Section 3.1 of the Plan, but subject to the offset conditions set forth in Section 10
of the Plan, the Company shall pay you twelve (12) months of your regular base salary, less applicable withholding taxes or other similar governmental payments or charges, as required, on the Company’s regular pay schedule, for the period
of April 2, 2023 through April 1, 2024. 

  

	 	(b)	 Consistent with Section 3.1 of the Plan, if you are eligible under the federal law known as COBRA and the
Company’s group health plans to elect continued group health plan coverage (“Eligible”), and you timely elect such coverage, then for a period of twelve (12) months, provided you remain Eligible (the “Eligibility
Period”), you will be entitled to participate in those plans or a similar plan if those plans cease to exist, to the same extent you were participating as of the Termination Date and you will only be required to pay the premium contribution
required from active employees of the Company under the applicable group health plan. The Company will be responsible for the balance of the premium during the Eligibility Period, provided you pay your portion of the premium in a timely manner and
provided further that no such premium payments will be made by the Company following your death or the effective date of your coverage by a group health plan of a subsequent employer. At the end of the Eligibility Period (or your earlier death or
coverage by a group plan of a subsequent employer), the Company will no longer be obligated to pay premiums as described, and group health plan coverage will be continued only to the extent required by COBRA and the Company’s group health plans
and only to the extent you timely pay the full premium amount required for continuation of group health or dental plan coverage. 

	 	(c)	 Your equity awards, as set forth in Exhibit B, that are based on, or in the form of, Tripadvisor, Inc.
equity (e.g. restricted stock, restricted stock units, stock options or similar instruments) (“Equity Awards”), that are time-based and that are outstanding and unvested as of the Termination Date, but that would have vested from
April 2, 2023 through April 1, 2024 had your employment continued through this period, shall accelerate and vest as of the Termination Date. The restricted stock units will settle in accordance with the terms of the Tripadvisor, Inc.
Restricted Stock Unit Agreement. 

  

	 	(d)	 Nonqualified stock options that have vested as of the Termination Date, including those with accelerated
vesting as set forth in Section 2(c), shall remain exercisable through the date that is the earlier of (1) the date that is eighteen (18) months following the Termination Date or (2) the expiration date of the relevant stock
option. 

 You specifically acknowledge and agree that the Company has made no representations regarding the tax
consequences of any amounts and benefits you receive pursuant to this Agreement. You agree to pay all taxes and/or tax assessments due to be paid by you, and to indemnify the Company for any claims, costs and/or penalties caused by your failure to
pay such taxes and/or tax assessments. 
 3. Return of Property. By signing below, you certify that you have returned to the Company
by the Termination Date all confidential and proprietary information and all other property belonging to the Company, including but not limited to documents, notes, customer lists and other information or materials (and all copies), as well as any
corporate cards, access cards, office keys, office equipment, laptop and desktop computers, cell phones and other wireless devices, thumb drives, zip drives and all other media storage devices. 

4. Release. By signing below, you make the following promises to the Company in consideration for your receipt of benefits under this
Agreement and the performance of its terms and conditions. Specifically: 
  

	 	(a)	 You voluntarily, irrevocably, and unconditionally release and discharge the Company from any and all
complaints, claims, demands, contracts, liabilities, actions, causes of action, promises, or rights of any nature whether known or unknown and whether in law or in equity which you now own or hold or have at any time owned or held against the
Company arising out of or in any way connected with your employment relationship with or separation from employment at the Company and any other transactions, occurrences, acts or omissions or any loss, damage or injury whatever, known or unknown,
resulting from any act or omission by or on the part of the Company committed or omitted on or prior to the date you sign this Agreement. Without limiting the generality of the foregoing, this release includes all claims under any federal, state or
local law or regulation (as any may have been amended) relating in any manner to employment, employment discrimination, harassment or retaliation, including but not limited to: Title VII of the Civil Rights Act of 1964, as amended; the Age
Discrimination in Employment Act; the Americans With Disabilities 

	 	
Act; the Equal Pay Act; the National Labor Relations Act; the Family and Medical Leave Act; the Worker Adjustment and Retraining Notification Act; the Massachusetts Fair Employment Practices Law
(Massachusetts General Laws Chapter 151B), the California Fair Employment and Housing Act, and any human rights and fair employment practices laws (whether statutory or common laws) of the state or states and localities in which you have
provided services to the Company (each as amended); any and all wage and hour related claims to the maximum extent permitted by federal and state law, including but not limited to claims under the Fair Labor Standards Act, the Massachusetts Payment
of Wages Act (Massachusetts General Laws Chapter 149 section 148 and 150), and the California Labor Code; claims arising from any contract, whether oral or written, express or implied; promissory estoppel; any tort, including, without limitation,
misrepresentation, libel, slander, and fraud; any claim related to equity or other benefits, including claims under federal or state securities laws; and any other statutory and/or common law claim. 

 

	 	(b)	 You specifically and expressly acknowledge that this Agreement is intended to include and extinguish all
claims, known and unknown, which exist up to and including the date you sign this Agreement and which arise from your employment with or separation from employment at the Company and that no possible claim against the Company would materially affect
or change your complete and voluntary acceptance of this Agreement, even if such claim were unknown at the time you signed this Agreement and discovered after that signing. 

 

	 	(c)	 You specifically and expressly acknowledge that you are not aware of any claims against the Company, or of any
violations of law, the Company’s Code of Conduct, or Company policies committed by the Company employees or agents. 

  

	 	(d)	 The payments and benefits set forth above in Sections 1 and 2 will be complete and unconditional payment,
settlement, accord and/or satisfaction with respect to all obligations and liabilities of the Company to you, including, without limitation, all claims for back wages, salary, vacation pay, draws, incentive pay, bonuses, restricted stock units,
stock and stock options, commissions, severance pay, reimbursement of expenses, any and all other forms of compensation or benefits, attorney’s fees, or other costs or sums. You agree that your separation from the Company is final and that the
Company has no obligation to consider you for rehire or reinstatement. 

	 	(e)	 Notwithstanding anything to the contrary in this Section 4, this release does not include the release of
any rights that cannot by law be released by private agreement, including but not limited those relating to unemployment compensation benefits, workers’ compensation benefits and vested 401(k) benefits. Further you are not releasing your rights
to vested equity and/or any rights you have to indemnification and defense. 

  

	 	(f)	 You acknowledge that you have read section 1542 of the Civil Code of the State of California, which in its
entirety states: 

 A general release does not extend to claims which the creditor does not know or suspect to exist in
his or her favor at the time of executing the release, which if known by him or her must have materially affected his settlement with the debtor. 

You hereby waive any right or benefit which you have under section 1542 of the Civil Code of the State of California or any equivalent
provision of any other state, to the fullest extent that you may lawfully waive such rights pertaining to this Release. Notwithstanding the above, you understand that you may retain whatever rights are otherwise preserved under law to file a charge
or communicate with, or assist in any investigation or proceeding conducted by or through a state or federal administrative agency. 
  

	 	5.	 Waiver of Rights and Claims Under the Age Discrimination in Employment Act of 1967.

 Because you are 40 years of age or older, you are being informed that you may have specific rights and/or claims under
the Age Discrimination in Employment Act of 1967 (ADEA), and by signing this Agreement: 
  

	 	(a)	 You agree that in consideration for the payments and benefits described in Section 2 of this Agreement,
which you are not otherwise entitled to receive, you specifically and voluntarily waive such rights and/or claims under the ADEA you might have against the Company to the extent such rights and/or claims arose through the date you sign this
Agreement; 

  

	 	(b)	 You acknowledge that you are hereby advised by the Company of your right to consult with an attorney prior to
signing this Agreement, you have had the opportunity to review and reflect on all terms of this Agreement, and you have not been subject to any undue or improper influence interfering with the exercise of your free will to sign this Agreement;

  

	 	(c)	 You further acknowledge that when the Company presented you with the original draft of this Agreement, you were
informed that you had at least twenty-one (21) calendar days within which to consider its terms and to consult with or seek advice from an attorney or any other person of your choosing, subject to the
confidentiality provisions of Section 7 (a) below, and that you could voluntarily choose to sign this Agreement prior to the expiration of the 21-day consideration period; 

	 	(d)	 You will have seven (7) additional days after you sign this Agreement to revoke it, and this Agreement
will not become effective or enforceable until this revocation period has expired without your timely and proper revocation. If you choose to revoke this Agreement, you must contact Beth Grous in writing at bgrous@tripadvisor.com within the seven-day revocation period to advise her of your decision to revoke the Agreement; and 

  

	 	(e)	 You agree that any changes, material or immaterial, will not restart the
twenty-one (21) day consideration period. 

  

	 	6.	 Construction. As used in Sections 4 and 5 of this Agreement, the “Company” includes
Tripadvisor LLC and its former and present owners, parents, stockholders, predecessors, successors, assigns, agents, insurers, directors, employees, officers, subsidiaries, divisions and affiliates, and all persons acting by, under, or together with
any of them. 

  

	 	7.	 Future Conduct. 

 

	 	(a)	 Prior to the Company’s public disclosure of this Agreement, you agree to keep its existence and terms
(“Agreement-Related Information”) in the strictest confidence and not reveal, unless legally compelled to do so, any Agreement-Related Information to any persons except your immediate family, your attorney, accountant and your
financial advisors (provided that they first agree for the benefit of the Company to keep Agreement-Related Information confidential), as well as taxing authorities and any agency that provides unemployment compensation. Nothing in this
Section 7 shall be construed to prevent you from disclosing Agreement-Related Information to the extent required by a lawfully issued subpoena or duly issued court order; provided that you provide the Company with advance written notice
and a reasonable opportunity to contest such subpoena or court order. Notably, however, nothing in this Agreement prevents you from discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination or
any other conduct that you have reason to believe is unlawful. 

  

	 	(b)	 You agree that neither you nor anyone acting at your request or on your behalf will disparage, defame,
criticize or comment in any negative manner on the business, employment or personnel practices of the Company, its parent or any of their subsidiaries or affiliates, or any of their current, former or future officers, directors, shareholders,
investors, employees, representatives, agents or attorneys, except if testifying truthfully under oath pursuant to a lawful court order or subpoena or if participating in a federal, state or local agency proceeding. If you receive such a court order
or subpoena, you or your attorney must provide the Company with a copy of such court order or subpoena within two (2) business days of your receipt of it, notify the Company of the content of any testimony or information to be provided and
provide the Company with copies of all documents to be produced. 

 Regardless of the foregoing paragraph, however, nothing in this agreement prevents you from
discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that you have reason to believe is unlawful. 

 

	 	(c)	 You represent that no charges, complaints or actions of any kind have been filed by you or on your behalf
against the Company or any of its subsidiaries or affiliates with any federal, state or local court or agency. Nothing in this Agreement or the release and waiver of claims contained in Sections 4 and 5 shall be construed to preclude you from filing
a charge of discrimination with the United States Equal Employment Opportunity Commission (“EEOC”) or equivalent state or local agency, participating in or cooperating with an investigation or proceeding by the EEOC or equivalent
state or local agency, or providing testimony in any proceeding before the EEOC or equivalent state or local agency. You agree that you will not be entitled to any monetary or other relief from the EEOC, state or local agency or from any court as a
result of litigation brought on the basis of or in connection with such charge, investigation or proceeding. 

 Nothing in
this Agreement prohibits you from reporting possible violations of federal law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress, and any
agency Inspector General, or making other disclosures that are protected under the whistleblower provisions of federal law or regulation. You do not need the prior authorization of the Company to make any such reports or disclosures and you are not
required to notify the Company that you have made such reports or disclosures. 
  

	 	(d)	 You agree to assist and cooperate with the Company and its attorneys in connection with any proceeding brought
against or by the Company, in connection with any investigation of or by the Company, or in connection with any matter relating to services performed by you on behalf of the Company. You further agree to perform all acts and sign and deliver any
documents that may be necessary to carry out the provisions of this paragraph. The Company will reimburse you for reasonable expenses associated with this assistance. If you receive a subpoena for documents or other information from any person whose
interests are adverse to the Company (or such person’s attorney), you or your attorney must provide the Company with a copy of such 

 
subpoena within two (2) business days of your receipt of it, notify the Company of the content of any testimony or information to be provided and provide the Company with copies of all
documents to be produced. Nothing in this paragraph is intended to preclude you from cooperating with or participating in any investigation by a federal, state or local agency. 

For purposes of this Section 7, written notice to the Company shall be directed to: Chief Legal Officer, Tripadvisor LLC, 400 1st Avenue, Needham, MA 02494. 
  

	 	8.	 Representations and Governing Law. 

 

	 	(a)	 You and the Company acknowledge that in signing this Agreement they have not relied on any statements, promises
or representations made by the other party except as specifically memorialized in this Agreement. This Agreement is the complete agreement of the parties on or in any way related to the subject matter addressed in the Agreement and your employment
and separation from employment, and it supersedes and cancels all other previous agreements or understandings between the parties, except for the Nondisclosure, Developments and Non-Competition Agreement you
executed on February 21, 2019 (referred to as the “Restrictive Covenant Agreement”). The Restrictive Covenant Agreement will remain in full force and effect in accordance with its terms; however, to the extent that any
provision of this Agreement is inconsistent with the terms of the Restrictive Covenant Agreement, the terms of this Agreement shall apply. Further, for purposes of clarity, the Company understands that you are a resident of the State of California,
and the non-competition provision in the Restrictive Covenant Agreement will not apply following the Termination Date. This Agreement specifically incorporates the Restrictive Covenant Agreement, and nothing
herein precludes the continued enforcement of the Restrictive Covenant Agreement. This Agreement cannot be modified or rescinded except upon the written consent of both you and the Company. 

 

	 	(b)	 If any provision of this Agreement (excluding Sections 4 and 5) is held to be unenforceable, such provision
will be considered to be distinct and severable from the other provisions of this Agreement, and such unenforceability will not affect the validity and enforceability of the remaining provisions. If any provision of this Agreement is held to be
unenforceable as written but may be made enforceable by limitation, then such provision will be enforceable to the maximum extent permitted by applicable law. The language of all parts of this Agreement will in all cases be construed as a whole,
according to its fair meaning, and not strictly for or against any of the parties. 

	 	(c)	 You represent and warrant that you have the full power, capacity, and authority to enter into this Agreement
and have not assigned, pledged, encumbered or in any manner conveyed all or any portion of the potential claims covered by this Agreement. This Agreement shall be binding upon you and upon your marital community, heirs, administrators,
representatives and executors. This Agreement cannot be assigned by you, and it will be binding upon the Company’s successors and assigns. 

  

	 	(d)	 The validity, performance and enforceability of this Agreement will be determined and governed by the laws of
California without regard to its conflict of laws principles. Any claims or legal actions by one party against the other shall be commenced and maintained in any state or federal court located in California, and you hereby submit to the jurisdiction
and venue of any such court. In any such proceeding you agree to waive trial by jury and consent to have all legal and factual matters decided by a judge. 

  

	 	(e)	 The existence and execution of this Agreement will not be considered as an admission of any liability,
violation, error, or omission by you or the Company. 

  

	 	(f)	 This Agreement may be executed in any number of counterparts, including by facsimile, PDF or electronically,
each of which when so executed and delivered shall be taken to be an original, but all of which together shall constitute one and the same document. The parties also agree that an executed Agreement delivered electronically through DocuSign
technology or similar technology (or via facsimile, portable document format (PDF) (or similar technology), photocopy or photograph) shall be effective in the same manner and to the same extent as a manually executed Agreement.

 If you agree to the foregoing, kindly sign and return the enclosed copy of this letter. 

 

	
	Very truly yours,
	
	 /s/ Beth Grous

	Beth Grous
	Chief People Officer

 I REPRESENT THAT I (A) HAVE READ AND FULLY UNDERSTAND THE TERMS AND CONDITIONS OF THIS AGREEMENT;
(B) HAVE HAD SUFFICIENT TIME TO CONSIDER THE AGREEMENT AND TO CONSULT ABOUT IT WITH AN ATTORNEY; AND (C) AM VOLUNTARILY AND WILLINGLY SIGNING IT. 

 Agreed and accepted: 
  

	
	 /s/ Kanika Soni

	Kanika Soni

 Date: November 28, 2022

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