Document:

ex_111654.htm

Exhibit 10.176

 

SEPARATION AND RELEASE AGREEMENT

 

THIS SEPARATION AND RELEASE AGREEMENT (this “Agreement”) is made as of April 25, 2018 by and between Twinlab Consolidated Holdings, Inc., a Nevada corporation, whose address is 632 Broadway, Suite 201, New York, NY 10012, and Twinlab Consolidation Corporation, a Delaware corporation (collectively, together with its subsidiaries and affiliates, the “Company”) and Naomi L. Whittel, whose address is as currently reflected in the Company’s personnel records (“Executive”).

 

BACKGROUND

 

Executive has been employed as the Chief Executive Officer and President of the Company.

 

Executive resigned her employment with the Company effective April 25, 2018. The Company and Executive (collectively, the “Parties” and each, without distinction, a “Party”) have mutually agreed that, pursuant to such resignation, Executive will resign from all positions with the Company, including as a Director on the Company’s Board of Directors, and have agreed to release each other from any and all claims arising from or related to that employment relationship.

 

NOW, THEREFORE, in consideration of this Agreement and the mutual promises set forth in this Agreement, the Parties agree as follows:

 

TERMS AND CONDITIONS

 

Article 1     

EMPLOYMENT SEPARATION, PAYMENTS AND RESIGNATION

 

1.1     Separation From Employment. Executive resigned her employment with the Company as of April 25, 2018 (the “Separation Date”). Effective as of the Separation Date, Executive resigns (a) from every office of the Company held by Executive, (b) as a director of the Company and/or its related entities and (c) if applicable, as trustee of any 401(k) plan of the Company. Executive agrees to cooperate with the Company and take all steps reasonably necessary to effectuate such resignations. The Company shall pay Executive’s salary compensation for days worked through the Separation Date, subject to withholding and payable in accordance with the Company’s payroll practices. The Executive forfeits any vacation pay entitlement on the Company’s books as of the Separation Date.

 

1.2     Publicity Rights.  No later than 15 days from the date of the execution of this Agreement, the Company will cease to use, and will no longer have any rights in or to, Executive’s Publicity Rights (as defined in Section 8(i) of Executive’s Employment Agreement) including the removal of all references, images and content associated with Executive from the Company’s websites, social media, blogs, and all other marketing material.  Subject to the foregoing, Executive retains all rights to Executive’s name, personal likeness, publicity rights, Glow15, websites and social media accounts including www.naomiwhittel.com; Facebook.com/NaomiWhittel; Instagram.com/NaomiWhittel; Twitter.com/NaomiWhittel; Youtube.com/NaomiWhittel; Pintrist.com/NaomiWhittel; Facebook.com/Glow15book; Facebook Groups WETRIBE and Glow15 course; the Glow15 book; www.Glow15.com; www.Glow15book.com;  www.Glow15course.com; www.Glow15quiz.com; www.Glowquiz.com; www.Glow15kitchen.com; wwwGlow15workshop.com; www.naomi.media; www.naomione.com; www.theagequiz.com; www.theGlow15book.com; www.fatsiq.com; www.fatburnerquiz.com.   

 

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1.3     Conflict with Other Agreements. In the event of any conflict of the provisions between this Agreement and the terms and conditions of: (a) that certain Employment Agreement between Executive and the Company made as of March 16, 2016 (the “Employment Agreement”), (b) the Company’s 2013 Stock Incentive Plan (the “Stock Plan”); and (c) award and/or purchase agreements entered into between the Company and Executive under the Stock Plan, if any (together with the Employment Agreement, the “Other Agreements”), the terms and conditions set forth in this Agreement shall control.

 

1.4     Acknowledgements. (a) Except as provided in this Agreement, the Parties acknowledge and agree that the Company and its affiliates are not, and shall not after the Separation Date, be eligible for any additional payment by the Executive and her related entities. (b) Except as provided in this Article 1, the Parties acknowledge and agree that Executive is not, and shall not after the Separation Date, be eligible for any additional payment by the Company of any bonus, salary, vacation pay, retirement pension, severance pay, back pay, or other remuneration or compensation of any kind in respect of employment by the Company. Executive further agrees that her continuing obligations arising under the Employment Agreement and the Unit Purchase Agreement between her, Robert Whittel and the Company dated September 2, 2014 (the “Unit Purchase Agreement”) remain in full force and effect; including the restrictive covenant set forth in Section 6.06 of the Unit Purchase Agreement. The restrictive covenant set forth in Section 6.06 of the Unit Purchase Agreement and the restrictive covenant set forth in Section 6(d) of the Employment Agreement shall each remain in effect for the respective terms stated in each of those agreements. Executive agrees to return to the Company’s office in Boca Raton, Florida, all Company documents and materials, apparatus, equipment and other physical property in Executive’s possession within fifteen (15) business days of her execution of this Agreement. Executive or her designated representative shall be permitted access to her office within fifteen (15) days to retrieve her personal property, at a date and time agreed to by the Company.

 

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1.5     Company Stock. Executive is currently the owner or beneficial owner of 3,000,000 shares of the Company’s common stock. Effective as of the Separation Date, Executive does hereby irrevocably sell, assign and transfer all right, title and interest in and to shares of the Company’s common stock (the “Surrendered Shares”) to the Company free and clear of any mortgage, pledge, lien, encumbrance, charge, security, security interest or other claim against title and hereby appoints the Company’s transfer agent to transfer the Surrendered Shares on the books of the Company with full power of substitution in the premises together with such other documents, certificates, affidavits and instruments as are required by this Agreement or reasonably required by the Company. The Company shall not be required to pay Executive any purchase price for the Surrendered Shares, provided, however, Executive shall be permitted to value the Surrendered Shares for accounting purposes at the same basis at which Executive received the Surrendered Shares ($0.22 per share). As a result of such surrender and transfer, the Parties hereto agree and affirm that Executive shall have absolutely and irrevocably released any and all of Executive’s interests in all of the Surrendered Shares. Concurrently with the execution of this Agreement, Executive shall deliver to the Company stock certificates which represent the Surrendered Shares and will execute a stock power if requested by the Company. Executive confirms to the Company that Executive is not entitled to or a party to any: (a) subscriptions, options, warrants, purchase rights, subscription rights, preemptive rights, conversion rights, exchange rights, calls, puts, rights of first refusal or other contracts that require or obligate the Company or any of the Company’s subsidiaries or affiliates, on a contingent basis or otherwise, to issue, sell or otherwise cause to become outstanding, or to acquire, repurchase, retire or redeem, any equity or debt interest in the Company or any of the Company’s subsidiaries or affiliates or (b) stock appreciation, phantom stock, rights of first refusal, preemptive rights, conversion rights, profit participation or similar rights or equity-linked awards of the Company or any of the Company’s subsidiaries or affiliates. Executive forfeits any other rights to any equity interests, including but not limited to those set forth in Section 2(b)(iv) of the Employment Agreement.

 

1.6     Standstill. Executive agrees that, until October 9, 2019, neither Executive nor any of Executive’s affiliates or representatives acting on Executive’s behalf or on behalf of other persons acting in concert with Executive will in any manner, directly or indirectly: (a) effect or seek, offer or propose (whether publicly or otherwise) to effect, or announce any intention to effect or cause or participate in or in any way assist, facilitate or encourage any other person to effect or seek, offer or propose (whether publicly or otherwise) to effect or participate in, (i) any acquisition of any securities (or beneficial ownership thereof), or rights or options to acquire any securities (or beneficial ownership thereof), or any assets, indebtedness or businesses of the Company or any of its subsidiaries or affiliates, (ii) any tender or exchange offer, merger or other business combination involving the Company, any of the subsidiaries or affiliates or assets of the Company or the subsidiaries or affiliates constituting a significant portion of the consolidated assets of the Company and its subsidiaries or affiliates, (iii) any recapitalization, restructuring, liquidation, dissolution or other extraordinary transaction with respect to the Company or any of its subsidiaries or affiliates, or (iv) any “solicitation” of “proxies” (as such terms are used in the proxy rules of the Securities and Exchange Commission (the “SEC”)) or consents to vote any voting securities of the Company or any of its affiliates; (b) form, join or in any way participate in a “group” (as defined under Securities Exchange Act of 1934, as amended) with respect to the Company or otherwise act in concert with any person in respect of any securities of the Company; (c) otherwise act, alone or in concert with others, to seek representation on or to control or influence the management, the Board or policies of the Company or to obtain representation on the Board; (d) take any action which would or would reasonably be expected to force the Company to make a public announcement regarding any of the types of matters set forth in (a) above; or (e) enter into any discussions or arrangements with any third party with respect to any of the foregoing. Executive also agrees during such period not to request (in any manner that would reasonably be likely to cause the Company to disclose publicly) that the Company or any of its representatives, directly or indirectly, amend or waive any provision of this paragraph (including this sentence).

 

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1.7     Cooperation and Assistance. Following the Separation Date, Executive agrees to furnish up to five (5) hours of her time telephonically, and during normal business hours at mutually agreeable dates and times, such information and assistance to the Company as may be reasonably required by the Company in connection with any issues or matters of which Executive had knowledge during her employment with the Company. Such five hours of telephonic time shall be inclusive of any time the Company wishes for the Executive to be reasonably available to assist the Company in matters relating to the transition of her prior duties to other Executives of the Company (including her successor). The Company shall reimburse Executive for the reasonable documented out-of-pocket expenses incurred by her in providing such cooperation and assistance; provided that any such expense exceeding Five Hundred Dollars ($500) shall require the advance consent of the Chairman of the Audit Committee of the Board. Any services rendered by Executive pursuant to this Section shall be governed by the applicable terms and conditions of the Employment Agreement regarding confidentiality.

 

1.8     Statement Regarding Resignation; SEC Matters.  The Parties will issue a joint press release regarding Executive’s resignation. Executive acknowledges that Company is obligated to report her separation of employment with the Company on a Form 8-K filed with the United States Securities and Exchange Commission (the “8-K”). Executive will provide reasonable cooperation with the Company in providing information with respect to all reports required to be filed by the Company with the SEC as they relate to required information with respect to Executive. Further, Executive will remain in compliance with the terms of the Company’s insider trading policy with respect to purchases and sales of the Company’s securities. Executive acknowledges and agrees that the Company may be required to file a copy of this Agreement with the SEC.

 

1.9     Payments by Executive. Executive will pay the following amounts:

 

(a)     Executive will reimburse the Company (or its applicable affiliate) in full for any Glow 15 books returned to the Company or an affiliate by GNC, as well as any related shipping charges. Such reimbursements shall be made within 30 days of a demand by the Company. Executive shall be permitted to coordinate and cooperate with GNC in developing programs and initiatives to ensure sell-through of the Glow15 books. The Company agrees not to take any action or otherwise encourage GNC to return any Glow15 books.

 

(b)     Executive will directly pay in full, or reimburse the Company for, any invoices to purchase any Glow 15 books currently stored in the Company’s Utah warehouse facility (not including books that are listed in Article 1.9(a)) (as well as related shipping charges). Such payments shall be made within 30 days of a demand by the Company, and Executive must promptly provide proof of payment to the Company. Executive will direct where such books should be shipped and will pay for the cost of the shipping. Executive represents and warrants that, except as to commitment referenced in subsection (a), there are no outstanding commitments by the Company to purchase copies of the Glow 15 book. If this representation is inaccurate, Executive will pay for any such commitments within 30 days of a demand by the Company.

 

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(c)     Within 30 days of her execution of this Agreement, Executive will pay $103,037 to the Company (or its affiliate, as directed by the Company) towards amounts paid to Ecommerce Consulting and SKAD Media by the Company or its affiliates. Executive will also pay any outstanding and/or future invoices received by the Company or its affiliates from these companies (to the extent not already included in the calculation of the $103,037 amount) relating to work performed prior to the Separation Date and/or any notice period required to terminate the engagements with these companies.

 

1.10     Sales of Products. In addition, the Parties agree:

 

(a)     The Company will process orders presented to it, and use its best efforts to ship related items, resulting from the Glow15 course webinar recently conducted by Executive. The Company will retain all associated revenue for orders through the later of April 30, 2018 or until Executive has her e-commerce solution. The Company currently has estimated “kit” inventory of 2,500 card sets, 159 workbooks, and 2,246 printed boxes. All pending unfilled customer orders arising from the Glow15 course webinar will be shipped no later than the close of business April 26, 2019 to customers who purchased the program. On April 30, 2018, any “kit” inventory that is not utilized will be invoiced (including shipping if applicable) to Executive at the Company’s cost of each “kit”. Executive will provide direction on where to ship those materials.

 

(b)     The Company will afford Executive the opportunity to continue to sell products of the Company and its affiliates (“Company Products”) on the websites of the companies with whom she is associated. In addition, Executive may sell through direct to consumer marketing, digital sales, email campaigns, speeches, podcasts, webinars, radio, docuseries, television, interviews, media, etc. The Company will provide Company products for Executive to sell at the cost and terms that would otherwise be paid by GNC to the Company or its affiliate for such products. So long as the Company Products are being offered for sale on the websites referred to in the first sentence of this subsection (b), or until October 9, 2019, whichever occurs first (the “Company Product Timeframe”), Executive will not directly or indirectly sell, and will not permit her associated companies to directly or indirectly sell, any products that compete (as defined in Section 6.06 of the Unit Purchase Agreement and Section 6(d) of the Employment Agreement) with the Company Products without the prior written consent of the Company. If the Company is unable to fulfill an order within 15 calendar days of a request, Executive may substitute a similar product (the “Substitute Products”) but will pay a commission to the Company equal to 7% of net sales (i.e., computed in accordance with GAAP) until the expiration of the Company Product Timeframe. Upon request, Executive will provide within 45 days following the close of the calendar quarter a list of Substitute Products sold during the preceding calendar quarter containing the number of units sold, and the amount of net sales computed in accordance with GAAP. Within 5 business day of the execution of this Agreement, the Company shall (a) cause the ownership of and all access to the active campaign platform account to be transferred to Executive, (b) cause the ownership of and all access to the Naomi Whittel google analytics account(s) currently owned or registered to Andrew Goldman to be transferred to naomiwhittel@gmail.com, and (c) deliver to Executive all footage from the Glow15 workshop videos. Within 30 calendar days of the execution of Agreement, the Company shall transfer ownership of the trademarks for Powerphenols and autophatea to Executive.

 

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ARTICLE 2     

RELEASES AND NON-DISPARAGEMENT

 

2.1     Executive Release of Claims. In consideration for the separation consideration set forth in this Agreement, Executive, on behalf of herself and the Executive’s Released Parties (as defined below), hereby fully and forever releases the Company and the Company’s respective past and present officers, directors, employees, investors, stockholders, administrators, subsidiaries, affiliates, predecessor and successor entities and assigns, attorneys and insurers (the “Company’s Released Parties”) of and from any claim, duty, obligation or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that any of them may possess arising from any omissions, acts or facts that have occurred through the date that Executive signs this Agreement, including, without limitation, any and all claims:

 

(a)     which arise out of, result from, or occurred in connection with Executive’s employment by the Company or any of its affiliated entities, the termination of that employment relationship, any events occurring in the course of that employment, or any events occurring prior to the execution of this Agreement;

 

(b)     for wrongful discharge, discrimination, harassment and/or retaliation; breach of contract, both express and implied; breach of a covenant of good faith and fair dealing, both express and implied; negligent or intentional infliction of emotional distress; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; slander, libel or invasion of privacy; violation of public policy; fraud, misrepresentation or conspiracy; and false imprisonment;

 

(c)     for a violation of any federal, state or municipal statute, regulation or ordinance relating to employment, including, without limitation, (i) Title VII of the Civil Rights Act of 1964, as amended, (ii) the Civil Rights Act of 1866, as amended, (iii) the Civil Rights Act of 1991, as amended, (iv) the Employee Retirement and Income Security Act of 1974, as amended, (v) the Age Discrimination in Employment Act of 1967, as amended (the “ADEA”), including without limitation, the Older Workers’ Benefit Protection Act, as amended (“OWBPA”), (vi) the Americans with Disabilities Act of 1990, as amended, and (vii) all claims arising out of the Florida Civil Rights Act, the Florida Private Sector Whistleblower Act, all as amended together with all of their respective implementing regulations and/or any other federal, state, local or foreign law (statutory, regulatory or otherwise) that may be legally waived and released;

 

(d)     for back pay or other unpaid compensation;

 

(e)     relating to equity of the Company; and/or

 

(f)     for attorneys’ fees and costs.

 

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To the fullest extent permitted by law, the Executive’s Released Parties will not take any action that is contrary to the promises they have made in this Agreement. The Executive’s Released Parties represent that they have not filed any lawsuit, arbitration, or other claim against any of the Company’s Released Parties. The Executive’s Released Parties state that they know of no violation of state, federal, or municipal law or regulation by any of the Company’s Released Parties, and knows of no ongoing or pending investigation, charge, or complaint by any agency charged with enforcement of state, federal, or municipal law or regulation. The Executive’s Released Parties further agree they shall not receive any monetary damages, recovery and/or relief of any type related to any released claim(s), whether pursued by them or any governmental agency, other person or group. The Executive’s Released Parties hereby agree that the release set forth in this Agreement shall be and remain in effect in all respects as a complete general release as to the matters released; provided that nothing in the Agreement prevents the Executive’s Released Parties from participating in the whistleblower program maintained by the SEC and receiving a whistleblower award thereunder and nothing in the foregoing shall prevent Executive from commencing an action or proceeding to enforce Executive’s rights arising under this Agreement or a claim for indemnification to which Executive is entitled as a current or former officer of the Company, or inclusion as a beneficiary of any insurance policy related to Executive’s service in such capacity.

 

2.2     Acknowledgment of Waiver of Claims under ADEA. Executive acknowledges that she is waiving and releasing any rights she may have under the OWBPA, the ADEA, and that this waiver and release is knowing and voluntary. Executive acknowledges that the consideration given for this waiver and release is in addition to anything of value to which Executive was already entitled. Executive further acknowledges that she has been advised by this writing that (a) she should consult with an attorney prior to executing this Agreement; (b) she has at least twenty-one (21) days within which to consider this Agreement and that if she signed this Agreement before expiration of that twenty-one (21) calendar day period, she did so knowingly and voluntarily and with the intent of waiving her right to utilize the full twenty-one (21) calendar day consideration period; and (c) she has seven (7) days following her execution of this Agreement to revoke the Agreement (the “Revocation Period”). Communication of any such revocation by Executive to the Company shall be provided in writing and mailed by certified or registered mail with return receipt requested and shall be addressed to the Company at its principal corporate offices to the attention of the Chairman of the Company’s Board. This Agreement shall not be effective until the Revocation Period has expired.

 

2.3     No Admission of Liability. Neither this Agreement nor any statement contained herein shall be deemed to constitute an admission of liability on the part of any signatory to this Agreement. This Agreement’s execution and implementation may not be used as evidence, and shall not be admissible in a subsequent proceeding of any kind, except one alleging a breach of this Agreement and/or the Employment Agreement.

 

2.4     Non-Disparagement.

 

(a)     Each Party covenants and agrees that such Party shall not directly or indirectly make or cause to be made any statements, observations, opinions or communicate any information (whether in written or oral form) to third parties that defame, slander or are likely in any way to harm the reputation of the other Party or any of its/her subsidiaries, affiliates, directors, or officers or tortiously interfere with any of the other Party’s respective business relationships. The Company agrees to use commercially reasonable efforts to cause the Company’s directors, other executive officers, and employees to comply with the terms and conditions of this Section 2.4(a).

 

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(b)     In the event that either Party is required by law, ordered by a court of competent jurisdiction or compelled by subpoena to disclose any information on the other Party, such Party may disclose that information without liability under Section 2.4(a); provided, however, that the disclosing Party gives the other Party written notice of the information to be disclosed as far in advance of its disclosure as is practicable.

 

(c)     Each Party understands and agrees that any violation of the covenant contained in Section 2.4(a) will result in irreparable damage to the other Party and that the other Party could not be reasonably or adequately compensated in damages in an action at law for breach of the Party’s obligations under Section 2.4(a). Accordingly, each Party specifically acknowledges and agrees that the other Party shall be entitled to temporary and permanent injunctive relief, specific performance, and other equitable relief to enforce the provisions of Section 2.4(a). This provision with respect to injunctive relief shall not, however, diminish the right of the Party to claim and recover damages or other remedies in addition to equitable relief. In addition, each Party agrees that should it become necessary for the other Party to enforce any of the covenants contained in this Section 2.4 through any legal, administrative or alternative dispute resolution proceeding, the Party breaching any of the covenants shall reimburse the other Party for any and all reasonable fees and expenses (legal costs, attorneys’ fees and otherwise) incurred by such Party in successfully enforcing such covenants and/or prosecuting any such proceeding or appeal therefrom to successful conclusion.

 

2.5     Company Release of Claims. In consideration for the obligations of Executive set forth in this Agreement and Executive’s release of claims, the Company on behalf of itself and its respective past and present officers, directors, executives, investors, stockholders, administrators, subsidiaries, affiliates, predecessor and successor entities and assigns, attorneys and insurers (the “Company Releasing Parties”) hereby fully and forever release Executive, her spouse, and their heirs, executors, legal representatives, and assigns and those companies in which Executive has a controlling ownership interest (which include Naomi Whittel Brands, LLC, W Products Limited, LLC, The Real Skinny on Fat, LLC, W Skincare, LLC, Sweet Blessed Bee Magic, LLC, d/b/a Medicine Mama’s Apothecary) (collectively, the “Executive’s Released Parties”) of and from any claim, duty, obligation or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Company Releasing Parties may possess arising from any omissions, acts or facts that have occurred up until and including the date that the Company signs this Agreement. This release does not extend to any obligations incurred or specified under this Agreement or any of Executive’s continuing obligations or any violation of a confidentiality, nonsolicitation or noncompetition obligation. The Company Releasing Parties hereby irrevocably covenant to refrain from directly or indirectly, asserting any claim or demand, or commencing, instituting or causing to be commenced, any proceeding of any kind against Executive’s Released Parties, based upon any matter purported to be released hereby including, without limitation, any and all claims:

 

(a)     which arise out of, result from, or occurred in connection with Company Releasing Parties’ employment of Executive, the termination of that employment relationship, any events occurring in the course of that employment, or any events occurring prior to the execution of this Agreement;

 

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(b)     for breach of contract, both express and implied; breach of a covenant of good faith and fair dealing, both express and implied; negligent or intentional infliction of emotional distress; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; slander, libel or invasion of privacy; violation of public policy; fraud, misrepresentation or conspiracy; and false imprisonment;

 

(c)     for a violation of any federal, state or municipal statute, regulation or ordinance relating to employment, including all of their respective implementing regulations and/or any other federal, state, local or foreign law (statutory, regulatory or otherwise) that may be legally waived and released; and

 

(d)     for attorneys’ fees and costs.

 

To the fullest extent permitted by law, Company Releasing Parties will not take any action that is contrary to the promises they have made in this Agreement. Company Releasing Parties represent that they have not filed any lawsuit, arbitration, or other claim against any of the Executive’s Released Parties. Company Releasing Parties state that they know of no violation of state, federal, or municipal law or regulation by any of the Executive’s Released Parties, and know of no ongoing or pending investigation, charge, or complaint by any agency charged with enforcement of state, federal, or municipal law or regulation. Company Releasing Parties further agree they shall not receive any monetary damages, recovery and/or relief of any type related to any released claim(s), whether pursued by Company Releasing Parties or any governmental agency, other person or group. Company Releasing Parties hereby agree that the release set forth in this Agreement shall be and remain in effect in all respects as a complete general release as to the matters released; provided that nothing in the Agreement prevents the Company Releasing Parties from participating in the whistleblower program maintained by the SEC and receiving a whistleblower award thereunder and nothing in the Agreement shall prevent Company Releasing Parties from commencing an action or proceeding to enforce Company Releasing Parties’ rights arising under this Agreement.

 

Article 3     

REPRESENTATIONS AND WARRANTIES

 

3.1     Representations and Warranties of Executive. Executive warrants and represents to the Company that Executive: (a) has been advised to consult with legal counsel in entering into this Agreement; (b) has entirely read this Agreement; (c) has voluntarily executed this Agreement without any duress or undue influence and with the full intent of releasing all claims; (d) has received no promise, inducement or agreement not herein expressed with respect to this Agreement or the terms of this Agreement; (e) is the only person (other than her heirs) who is or may be entitled to receive or share in any damages or compensation on account of or arising out of her relationship with, or providing services to, the Company or any of its affiliated entities, the termination of that relationship or services, any actions taken in the course of that relationship or services, and any events related to that relationship or services or occurring prior to the execution of this Agreement; (f) understands and agrees that in the event any injury, loss, or damage has been sustained by her which is not now known or suspected, or in the event that any loss or damage now known or suspected has consequences not known or suspected, this Agreement shall nevertheless constitute a full and final release as to the parties herein released, and that this Agreement shall apply to all such unknown or unsuspected injuries, losses, damages or consequences; (g) expressly acknowledges that her entry into this Agreement is in exchange for consideration in addition to anything of value to which Executive is already entitled; (h) has good and marketable title to the Surrendered Shares, free and clear of any mortgage, pledge, lien, encumbrance, charge, security, security interest or other claim against title, other than general restrictions under federal and state securities laws; and (i) except for this Agreement and the Other Agreements, is not a party to any agreement with the Company or any of its subsidiaries or affiliates.    

 

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3.2     Representations and Warranties of Company:  The Company warrants and represents to the Executive that it: (a) has entirely read this Agreement; (b) has voluntarily executed this Agreement without any duress or undue influence and with the full intent of releasing all claims; (c) has received no promise, inducement or agreement not herein expressed with respect to this Agreement or the terms of this Agreement; (d) is the only person or entity who is or may be entitled to receive or share in any damages or compensation on account of or arising out of relationship of Company and any affiliated entity with the Executive, the termination of that relationship or services, any actions taken in the course of that relationship or services, and any events related to that relationship or services or occurring prior to the execution of this Agreement; (e) understands and agrees that in the event any injury, loss, or damage has been sustained by Company which is not now known or suspected, or in the event that any loss or damage now known or suspected has consequences not known or suspected, this Agreement shall nevertheless constitute a full and final release as to the parties herein released, and that this Agreement shall apply to all such unknown or unsuspected injuries, losses, damages or consequences; (f) expressly acknowledges that Company’s entry into this Agreement is in exchange for consideration in addition to anything of value to which Company is already entitled; and (g) except for this Agreement and the Other Agreements, is not a party to any agreement with the Executive or any of her affiliates.

 

3.3     Authority. Each Party represents and warrants to the other that such Party has the capacity to act on her/its own behalf and on behalf of all who might claim through it/her to bind them to the terms and conditions of this Agreement. Each Party warrants and represents that such Party has not assigned any claim released under this Agreement, and there are no liens or claims of lien or assignments in law or equity or otherwise of or against any of the claims or causes of action released herein.

 

3.4     No Other Representations. Neither Party has relied upon any representations or statements made by other Party hereto which are not specifically set forth in this Agreement.

 

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Article 4     

MISCELLANEOUS

 

4.1     Disclosure of this Agreement. Subject to the provisions of Sections 1.8 and 1.10(b), neither Executive nor the Company or its employees will publicize in any newspaper, electronic media, or other public or private forum (such as “blogs,” job satisfaction websites, Facebook, Twitter or bulletin boards), the terms of this Agreement. Notwithstanding the foregoing sentence, (a) the Company may issue the joint press release referenced in Section 1.8, (b) Executive and the Company may disclose this Agreement to their respective attorneys and accountants, and to governmental agencies including, but not limited to, the Internal Revenue Service, if so requested or required, (c) Executive and the Company may disclose this Agreement as may be required by law, subpoena or in answer to interrogatories or other discovery requests, (d) the Company may disclose this Agreement to any third parties who owe a duty of confidentiality to the Company and (e) the Company may disclose this Agreement as required by law, rule or regulation (including but not limited to by attaching this Agreement to, and disclosing this Agreement and the contents thereof in, any filings that the Company makes with the SEC; provided, however, that the Company agrees to state in the Current Report on Form 8-K filed with the SEC to announce the Executive’s departure that the Executive resigned to pursue other opportunities).

 

4.2     Severability. This Agreement shall be enforceable to the fullest extent permitted by law. If any provision is held to be unenforceable, then such provision will be construed or revised in a manner so as to permit its enforceability to the fullest extent permitted by applicable law. If such provision cannot be reformed in that manner, such provision will be deemed to be severed from this Agreement, but every other provision of this Agreement will remain in full force and effect.

 

4.3     Entire Agreement. This Agreement represents the entire agreement and understanding between the Company and Executive concerning Executive’s separation from the Company, and supersedes and replaces any and all prior agreements and understandings concerning Executive’s relationship with the Company and her compensation by the Company, including, without limitation, the Employment Agreement, except for any continuing obligations of Executive under the Employment Agreement that do not conflict with the terms and conditions of this Agreement, which shall continue in full force and effect. This Agreement may only be amended by a writing signed by Executive and the Company.

 

4.4     Assignment. This Agreement may not be assigned by Executive without the prior written consent of the other party. The Company may assign this Agreement without Executive’s consent in connection with a merger or sale of its assets and/or to a corporation controlling, controlled by or under common control with the Company. This Agreement shall inure to the benefit of, and be binding upon, each Party’s respective heirs, legal representatives, successors and assigns.

 

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4.5     Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida, without regard to its principles of conflicts of laws. Each of the Parties hereto irrevocably submits to the exclusive jurisdiction of the state and federal courts of the State of Florida for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Agreement, and consents to the laying of venue in such courts. EACH OF THE PARTIES KNOWINGLY AND VOLUNTARILY 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. In addition, should it become necessary for any party to seek to enforce any of the covenants contained in this Agreement through any legal, administrative or alternative dispute resolution proceeding, the prevailing party shall reimburse the other for its reasonable fees and expenses (legal costs, attorney’s fees and otherwise) related thereto.

 

4.6     Counterparts/ Facsimile Signature. This Agreement may be executed in one or more counterparts and by email/facsimile, each of which shall constitute an original and all of which together shall constitute one and the same instrument. Signatures of the Parties transmitted by facsimile or via .pdf format shall be deemed to be their original signatures for all purposes.

 

[Signature Page Follows]

 

12

 

 

Each Party has executed this Agreement as of the date set forth below.

 

	
			 Twinlab Consolidated Holdings, Inc. 

			 

			By:/s/David Van Andel                               

			Name: David Van Andel                             

			Title: Chairman, Board of Directors           

			Date: April 26, 2018                                    

				
			 

			 

			/s/Naomi Whittel                                      

			Naomi Whittel

			 

			Date: April 26, 2018                                 

			

 

 

Twinlab Consolidation Corporation 

 

By: /s/ Al Gever                               

Name:      Alan Gever                      

Title:      CFO/COO                          

Date:      April 27, 2018                   

 

13EX-10.1

 Exhibit 10.1 

ON SEMICONDUCTOR CORPORATION 

AMENDED AND RESTATED STOCK INCENTIVE PLAN 

PERFORMANCE-BASED RESTRICTED STOCK UNITS AWARD AGREEMENT 

ON Semiconductor Corporation, a Delaware Corporation (“Company”), hereby grants to
                     (“Grantee”), a Participant in the ON Semiconductor Corporation Amended and Restated Stock Incentive Plan, as amended
from time-to-time (“Plan”), a Performance-Based Restricted Stock Units Award (“Award”) for Units (“Units”) representing shares of the
common stock of the Company (“Stock”). This agreement to grant Stock Units (“Grant Agreement”) is made effective as of the 5th day of March, 2018 (“Grant Date”). If Grantee is a Covered Employee, this Award is
designated as a “Performance Compensation Award” and as such is granted pursuant to Article 11 of the Plan. 
 RECITALS 

A.    The Board of Directors of the Company (“Board”) has adopted the Plan as an
incentive to retain employees, officers, and non-employee Directors of, and Consultants to, the Company and to enhance the ability of the Company to attract, retain and motivate individuals upon whose
judgment, interest and special effort the successful conduct of the Company’s operation is largely dependent. 

B.    Under the Plan, the Board has delegated its authority to administer the Plan to the
Compensation Committee of the Board (“Committee”). 
 C.    The Committee has approved
the granting of Units to the Grantee pursuant to the Plan to provide an incentive to the Grantee to focus on the long-term growth of the Company. 

D.    To the extent not specifically defined herein or in the Grantee’s employment agreement
or comparable agreement, as amended from time to time (“Employment Agreement”), all capitalized terms used in this Grant Agreement shall have the meaning set forth in the Plan unless a contrary meaning is set forth in the Employment
Agreement. 
 In consideration of the mutual covenants and conditions hereinafter set forth and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Grantee agree as follows: 

1.     Grant of Units. The Company hereby grants to the Grantee a Performance-Based
Restricted Stock Units Award for                      Units, representing the right to receive payment of the same number of shares of Stock, subject
to the terms and conditions of this Grant Agreement and the provisions of the Plan, which terms are incorporated herein by reference. 

 2.     Earning Units, Performance Multiplier and Related
Information. 
 2.1    Earning Units. Subject to the terms and conditions
set forth in this Grant Agreement, the Grantee shall be entitled to receive payment for the number of Units earned by the Grantee over the six consecutive fiscal quarter period beginning with the quarter commencing January 1, 2018
(“Performance Measurement Period”). The number of Units earned pursuant to this Grant Agreement is a function of the extent to which the corresponding Performance Goals described in the table below are achieved. 

PERFORMANCE GOALS 
  

									
	 Performance Level
	  	Adjusted Non-GAAP
EBITDA
(in Millions)	 	  	Percentage of Units Earned	 
	 Target
	  	$	2,000	 	  	 	100	% 
	 Threshold or Below
	  	$	1,600	 	  	 	0	% 

 If the Company’s Adjusted Non-GAAP EBITDA (defined below) for the
Performance Measurement Period is equal to or less than the Threshold performance level ($1,600 million), no Units will be earned at the end of the Performance Measurement Period. If the Company’s Adjusted
Non-GAAP EBITDA for the Performance Measurement Period exceeds the Threshold performance level ($1,600 million), but is less than the Target performance level ($2,000 million), the number of Units earned at
the end of the Performance Measurement Period will be determined by applying straight line interpolation between the Threshold performance level ($1,600 million) and Target performance level ($2,000 million). If the Company’s Adjusted Non-GAAP EBITDA for the Performance Measurement Period equals or exceeds the Target performance level ($2,000 million), all of the Units will be earned at the end of the Performance Measurement Period. Any Units
that are unearned pursuant to Section 2.1 and Section 2.4 at the end of the Performance Measurement Period will be forfeited on the date the Company files its Form 10-Q for Q2 of fiscal year 2019.
The number of earned Units that will become vested shall be determined pursuant to Section 3 below. Whether the Adjusted Non-GAAP EBITDA Performance Goal for the Performance Measurement Period has been
achieved shall be determined by the Company or Committee, as applicable, pursuant to Section 2.8 below. 

2.2    Adjusted Non-GAAP EBITDA Performance Goal
Defined. For purposes of this Agreement, “Adjusted Non-GAAP EBITDA” shall mean the Company’s consolidated GAAP net income for the Performance Measurement Period, as adjusted in
accordance with Section 2.3. If the Committee determines that an alternative method would be more appropriate to achieve the objectives of this Award then such method shall be communicated to the Grantee and applied to determine Adjusted Non-GAAP EBITDA for the Performance Measurement Period; provided, however, if the Grantee is a Covered Employee, the Committee’s determination must be made before the date that is 90 days after the commencement
of the Performance Measurement Period. For purposes of this Agreement, the term “GAAP” means United States generally accepted accounting principles consistently applied. 

2.3    Adjustments to GAAP Net Income. If applicable to the Company for purposes of
calculating Adjusted Non-GAAP EBITDA for the Performance Measurement 

  
 2 

 
Period, the Company, or Committee if the Grantee is a Covered Employee, shall adjust GAAP net income to exclude the following: 

 

	 	i.	restructuring, asset impairments and other, net; 

  

	 	ii.	goodwill and intangible asset impairment; 

  

	 	iii.	interest expense and interest income; 

  

	 	iv.	income tax provision; 

  

	 	v.	acquisition and divestiture related costs; 

  

	 	vi.	 gains or losses (expenses or income) on business dispositions (including divestiture, licensing or similar
arrangements); 

  

	 	vii.	net income attributable to non-controlling interests; 

  

	 	viii.	depreciation and amortization; 

  

	 	ix.	actuarial gains or losses on pension plans and other pension benefits; 

  

	 	x.	gain or loss on debt repurchase, debt exchange, early extinguishment of debt, etc.; 

  

	 	xi.	expensing of inventory fair market value step up; and 

  

	 	xii.	unusual/non-recurring material items; 

 provided,
however, that if the Grantee is a Covered Employee any adjustment for unusual/non-recurring material items shall not increase the amount payable for the Award. For the avoidance of doubt, Adjusted Non-GAAP EBITDA shall specifically include merger and acquisition related operations and activities of the Company. 

2.4    Performance Multiplier. If the Company’s Adjusted Non-GAAP EBITDA for the Performance Measurement Period equals or exceeds the Target performance level ($2,000 million), the Company, or the Committee with respect to grants to employees who are Covered Employees,
shall increase the number of Units earned pursuant to Section 2.1 by multiplying the earned Units by a performance multiplier determined based on the achievement of the Performance Goals described in the table below (the “Performance
Multiplier”). 
 PERFORMANCE MULTIPLIER GOALS 
  

									
	 Performance

Multiplier Goal
	  	 Threshold
	  	 Stretch
	  	 Threshold
Performance
Multiplier
	  	 Stretch
Performance
Multiplier

	 Market Share
	  	7.215% of Comparator Group Market Share	  	7.530% of Comparator Group Market Share	  	100%	  	150%
	 Free Cash Flow
	  	$975M	  	$1,250M	  	100%	  	150%

 If the Company’s Market Share at the conclusion of the Performance Measurement Period equals or is less
than the Threshold Market Share (7.215% of Comparator Group Market Share), no Performance Multiplier shall apply to the Market Share portion. If the Company’s Market Share at the conclusion of the Performance Measurement Period exceeds the
Threshold Market Share (7.215% of Comparator Group Market Share), but is less than the Stretch Market Share (7.530% of Comparator Group Market Share), the applicable Performance Multiplier will be determined

  
 3 

 
by applying straight line interpolation between the Threshold Performance Multiplier (100%) and Stretch Performance Multiplier (150%). If the Company’s Market Share at the conclusion of the
Performance Measurement Period equals or exceeds the Stretch Market Share (7.530% of Comparator Group Market Share), the Performance Multiplier shall be 150%. Similarly, if the Company’s Free Cash Flow for the Performance Measurement Period
equals or is less than the Threshold Free Cash Flow ($975 million), no Performance Multiplier shall apply to the Free Cash Flow portion. If the Company’s Free Cash Flow for the Performance Measurement Period exceeds the Threshold Free Cash Flow
($975 million) but is less than the Stretch Free Cash Flow ($1,250 million), the applicable Performance Multiplier will be determined by applying straight line interpolation between the Threshold Performance Multiplier (100%) and Stretch Performance
Multiplier (150%). If the Company’s Free Cash Flow for the Performance Measurement Period equals or exceeds the Stretch Free Cash Flow ($1,250 million), the Performance Multiplier shall be 150%. For the avoidance of doubt, the Units granted
under this Award shall not exceed twice the Units earned pursuant to Section 2.1. Whether the Market Share Goal and/or Free Cash Flow Goal for the Performance Measurement Period have been achieved shall be determined by the Company or
Committee, as applicable, pursuant to Section 2.8 below. 
 2.5    Market Share
Performance Goal Defined. The “Market Share” for the Company shall be determined by dividing the Company’s “Performance Measurement Period Revenue” by the aggregate “Performance Measurement Period Revenue”
for all members of the Comparator Group (including the Company), calculated taking into account any timely adjustments made in accordance with Section 2.7. For this purpose, the Company’s and any other Comparator Group member’s
“Performance Measurement Period Revenue” is the Company’s or other member’s publicly reported total revenue (which, for the avoidance of doubt, shall include any revenue attributable to any merger and acquisition activity) for
its six most recently completed fiscal quarters for which it has publicly reported revenue information, determined as of the Determination Date (as defined below). For purposes of this Agreement, the “Comparator Group” shall consist of the
Company, Analog Devices, Diodes, Fairchild, Infineon, Intersil, Linear Technology, Maxim, NXP, Renesas (semiconductor revenues only), Rohm (semiconductor revenues only), STM, Texas Instruments, Vishay (semiconductor revenues only) and Sony Image
Sensor. If the Committee determines that an alternative method of calculating the Company’s Market Share would be more appropriate to achieve the objectives of this Award, then such method shall be communicated to the Grantee and applied to
determine the Company’s Market Share for the Performance Measurement Period; provided, however, if the Grantee is a Covered Employee, the Committee’s determination must be made before the date that is 90 days after the commencement of the
Performance Measurement Period. For any member of the Comparator Group who reports in a currency other than United States Dollars, the United States Dollars revenue as reported by Bloomberg as such member’s Performance Measurement Period
Revenue shall be used. 
 2.6    Free Cash Flow Performance Goal Defined. For
purposes of this Agreement, “Free Cash Flow” shall mean the Company’s publicly reported net cash flow from operating activities less purchases of property, plant, and equipment under its investing activities for the Performance
Measurement Period. If the Committee determines that an alternative method of calculating its Free Cash Flow would be more appropriate to achieve the objectives of this Award, then such method shall be communicated to the Grantee and applied to
determine 

  
 4 

 
Free Cash Flow for the Performance Measurement Period; provided, however, if the Grantee is a Covered Employee, the Committee’s determination must be made before the date that is 90 days
after the commencement of the Performance Measurement Period. 
 2.7    Adjustments to
Market Share Performance Goal. The Company’s Market Share shall be calculated on August 1, 2019 (the “Determination Date”) or any earlier date as of which all Comparator Group members have publicly reported their
Performance Measurement Period Revenue. If by the Determination Date a Comparator Group member has not publicly reported its revenue for the Performance Measurement Period, the total Comparator Group Performance Measurement Period Revenue will be
recalculated using such Comparator Group member’s total revenue (calculated in accordance with Section 2.5) for the trailing 18 consecutive months for which such Comparator Group member has publicly reported revenue information. 

2.8    Final Determination of Performance Goals Attained. The
Company, or the Committee with respect to grants to employees who are Covered Employees, shall be responsible for determining in good faith whether, and to what extent, the Performance Goals set forth in this Grant Agreement have been achieved. The
Company, or the Committee, as applicable, may reasonably rely on information from, and representations by, individuals within the Company in making such determination and when made such determination shall be final and binding on the Grantee. 

3.    Vesting of Earned Units. Subject to Section 4 below, the Units earned
pursuant to Section 2.1 and Section 2.4 (collectively, the “Total Earned Units”), shall vest on the following dates (each a “Vesting Date”) as follows: 

3.1    One-half of the Total Earned Units will vest on the
date the Company files its Form 10-Q for Q2 of fiscal year 2019; and 

3.2    An additional one-half of the Total Earned Units
will vest on the third anniversary of the Grant Date. 
 EXAMPLE OF THE EARNING AND VESTING OF UNITS (for
illustrative purposes only): Assume you are granted 1,000 Units. 
  

	 	•	 	 If the Company’s Adjusted Non-GAAP EBITDA for the Performance
Measurement Period equals or is less than the Threshold performance level, no Units will be earned and all 1,000 Units will be forfeited on the date the Company files its Form 10-Q for Q2 of fiscal year 2019.

  

	 	•	 	 If the Company’s Adjusted Non-GAAP EBITDA for the Performance
Measurement Period is at the mid-point between the Threshold and Target performance levels (i.e., $1,800 million of Adjusted Non-GAAP EBITDA), 500 Units will be
earned at the end of the Performance Measurement Period. The remaining 500 Units will be forfeited on the date the Company files its Form 10-Q for Q2 of fiscal year 2019. The 500 earned Units will then vest as
follows: (i) 250 Units will vest on the date the Company files its Form 10-Q for Q2 of fiscal year 2019; and (ii) 250 Units will vest on the third anniversary of the Grant Date. 

  
 5 

	 	•	 	 If the Company’s: (i) Adjusted Non-GAAP EBITDA for the
Performance Measurement Period equals or exceeds 100% of the Target performance level (i.e., $2,000 million of Adjusted Non-GAAP EBITDA); (ii) Market Share at the conclusion of the Performance Measurement
Period equals or is less than the Threshold performance level; and (iii) Free Cash Flow equals or is less than the Threshold Performance level, 1,000 Units will be earned at the end of the Performance Measurement Period but no
Performance Multiplier shall apply. The 1,000 earned Units will then vest as follows: (i) 500 Units will vest on the date the Company files its Form 10-Q for Q2 of fiscal year 2019; and (ii) 500 Units will
vest on the third anniversary of the Grant Date. 

  

	 	•	 	 If the Company’s: (i) Adjusted Non-GAAP EBITDA for the
Performance Measurement Period equals or exceeds 100% of the Target performance level (i.e., $2,000 million of Adjusted Non-GAAP EBITDA); (ii) Market Share at the conclusion of the Performance Measurement
Period equals or is less than the Threshold performance level; and (iii) Free Cash Flow equals or exceeds 100% of the Stretch Performance level, 1,000 Units will be earned at the end of the Performance Measurement Period (based on the
achievement of Adjusted Non-GAAP EBITDA) and a 150% Stretch Performance Multiplier shall apply, resulting in a total of 1,500 Total Earned Units (1,000 x 1.5). The 1,500 Total Earned Units will
then vest as follows: (i) 750 Units will vest on the date the Company files its Form 10-Q for Q2 of fiscal year 2019; and (ii) 750 Units will vest on the third anniversary of the Grant Date.

 4.     Termination of Employment. 

4.1    General. Subject to the provisions of Section 4.2 and Section 4.3
below, if the Grantee terminates employment with the Company for any reason (including upon a termination for Cause), any unvested Units will be canceled and forfeited as of the date of Grantee’s termination of employment. In other words, the
Grantee must be employed by the Company on the relevant Vesting Date to receive any payment with respect to the Units that are scheduled to vest on such Vesting Date. 

4.2    Change in Control Prior to End of Performance Measurement Period. If a Change
in Control occurs prior to the end of the Performance Measurement Period, the number of Total Earned Units shall be the number of Units the Grantee would have earned pursuant to Section 2.1 and Section 2.4 based on the Company’s
progress toward the attainment of the Performance Goals as of the date of the closing of the transaction or event that results in the Change in Control. If the Company terminates the Grantee’s employment without Cause (including, if applicable,
a termination for Good Reason as defined in the Grantee’s Employment Agreement or similar document) in connection with or following such Change in Control, the number of Total Earned Units that will vest will be determined by multiplying the
number of Total Earned Units (determined in accordance with the preceding sentence) by a fraction, the numerator of which is the number of days the Grantee was employed during the Performance 

  
 6 

 
Measurement Period, and the denominator of which is the total number of days in the Performance Measurement Period. The Vesting Date for any Units that vest pursuant to this Section 4.2
shall be the date of the Grantee’s termination of employment. 
 4.3    Change in
Control On or After End of Performance Measurement Period. If a Change in Control occurs on the date of or after the end of the Performance Measurement Period, the number of Total Earned Units shall continue to be the number of Total Earned
Units described in Section 3. If the Company terminates the Grantee’s employment without Cause (including, if applicable, a termination for Good Reason as defined in the Grantee’s Employment Agreement or similar document) in
connection with or following such Change in Control but prior to the Vesting Dates described in Section 3, any then unvested Total Earned Units shall become immediately vested. The Vesting Date for any Units that vest pursuant to this
Section 4.3 shall be the date of the Grantee’s termination of employment. 
 EXAMPLE OF THE EARNING AND VESTING
OF UNITS IN CONNECTION WITH CHANGE IN CONTROL (for illustrative purposes only): Assume you are granted 1,000 Units. 
  

	 	•	 	 If (i) a Change in Control occurs on September 30, 2018 and (ii) the Company’s progress
toward the attainment of the Performance Goals as of such date (including the Company’s progress toward the attainment of the Performance Multipliers as of such date) is 150%, the Total Earned Units described in Section 4.2 will be 1,500.
If you are terminated without Cause (or terminate for Good Reason) on September 30, 2018, 750 Units will vest as of the date of your termination of employment, and the remaining 750 Units will not vest. If, however, your termination without
Cause (or termination for Good Reason) occurs on or after the last day of Q2 of fiscal year 2019, 1,500 Units will vest as of the date of your termination of employment. 

 

	 	•	 	 If (i) a Change in Control occurs after the last day of Q2 of fiscal year 2019 and (ii) the
Company’s attainment of the Performance Goals for the Performance Measurement Period (including the Company’s progress toward the attainment of the Performance Multipliers for the Performance Measurement Period) was 150%, the Total Earned
Units described in Section 4.3 will be 1,500. If you are terminated without Cause (or terminate for Good Reason) in connection with or following such Change in Control but prior to Vesting Dates described in Section 3, all 1,500 Units (to
the extent unvested) will vest as of the date of your termination of employment. 

5.    Time and Form of Payment. Subject to the provisions of this Grant Agreement and
the Plan, as Units vest on the Vesting Dates set forth in Section 3, Section 4.2 or Section 4.3, as the case may be, the Company will deliver to the Grantee the same number of whole shares of Stock, rounded up or down. Subject to
Section 21, the Company shall deliver the vested shares (if any) within 15 days of the applicable Vesting Date. 

6.    Nontransferability. The Units granted by this Grant Agreement shall not be
transferable by the Grantee or any other person claiming through the Grantee, either voluntarily or involuntarily, except by will or the laws of descent and distribution or as otherwise provided under Article 13 of the Plan. 

  
 7 

 7.    Adjustments. In the event of
a stock dividend or in the event the Stock shall be changed into or exchanged for a different number or class of shares of stock of the Company or of another corporation, whether through reorganization, recapitalization, stock split-up, combination of shares, merger or consolidation, there shall be substituted for each such remaining share of Stock then subject to this Grant Agreement the number and class of shares of stock into which
each outstanding share of Stock shall be so exchanged, all as set forth in Section 5.3 of the Plan. 

8.    Delivery of Shares. No shares of Stock shall be delivered under this Grant
Agreement until: (i) the Units vest pursuant to Section 3, Section 4.2 or Section 4.3 above, as the case may be; (ii) approval of any governmental authority required in connection with the Grant Agreement, or the issuance of
shares thereunder, has been received by the Company; (iii) if required by the Committee, the Grantee has delivered to the Company documentation (in form and content acceptable to the Company in its sole and absolute discretion) to assist the
Company in concluding that the issuance to the Grantee of any share of Stock under this Grant Agreement would not violate the Securities Act of 1933, as amended (the “Securities Act”), or any other applicable federal, state or local
securities or other laws or regulations; (iv) the Grantee has complied with Section 14 below of this Grant Agreement in order for the proper provision for required tax withholdings to be made; and (v) the Grantee has executed and
returned this Grant Agreement to the Company (which, in the case of a Grant Agreement provided to the Grantee in electronic format, requires that the Grantee click the “ACCEPT” button). This Grant Agreement must be
executed by Grantee no later than the earlier of: (i) ten (10) months from the Grant Date (through and including the normal close of business of the Company for its headquarters location in Phoenix, Arizona on January 4, 2019); or
(ii) the date preceding the first Vesting Date described in Section 3 of this Grant Agreement. 

9.    Securities Act. The Company shall not be required to deliver any shares of
Stock pursuant to the vesting of Units if, in the opinion of counsel for the Company, such issuance would violate the Securities Act or any other applicable federal, state or local securities laws or regulations. 

10.    Voting and Other Stockholder Related Rights. The Grantee will have no voting
rights or any other rights as a stockholder of the Company (e.g., no rights to cash dividends) with respect to unvested Units until the Units become vested and the Company issues shares of Stock to the Grantee. 

11.    Delivery of Documents and Notices. Any document relating to participation in
the Plan or any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given (except to the extent that this Grant Agreement provides for effectiveness only upon actual receipt of such notice) upon personal
delivery, electronic delivery at the e-mail address, if any, provided for the Grantee by the Company or an Affiliate, or upon deposit in the U.S. Post Office or foreign postal service, or with a nationally
recognized overnight courier service, with postage and fees prepaid, addressed to the other party at the current address on file with the Company or at such other address as such party may designate in writing from time-to-time to the other party. 

  
 8 

 11.1    Description of Electronic
Delivery. The Plan documents – which may include but do not necessarily include the Plan, a grant notice, this Grant Agreement, the Plan Prospectus, and any reports of the Company provided generally to the Company’s stockholders
– may be delivered to the Grantee electronically. In addition, the Grantee may deliver electronically any grant notice and this Grant Agreement to the Company or to such third party involved in administering the Plan as the Company may
designate from time-to-time. Such means of electronic delivery may include but do not necessarily include the delivery of a link to a Company intranet or the internet
site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other means of electronic delivery specified by the Company. 

11.2    Consent to Electronic Delivery. The Grantee acknowledges that Grantee has
read Section 11.1 and consents to the electronic delivery of the Plan documents and any grant notice. The Grantee acknowledges that Grantee may receive from the Company a paper copy of any documents delivered electronically at no cost by
contacting the Company by telephone or in writing. 
 12.    Administration. This
Grant Agreement is subject to the terms and conditions of the Plan and the Plan shall in all respects be administered by the Committee in accordance with the terms and provisions of the Plan. The Committee shall have the sole and complete discretion
with respect to all matters reserved to it by the Plan and decisions of the majority of the Committee with respect to the Plan and this Grant Agreement shall be final and binding upon the Grantee and the Company. In the event of any conflict between
the terms and conditions of this Grant Agreement and the Plan, the provisions of the Plan shall control. 

13.    Continuation of Employment. This Grant Agreement shall not be construed to
confer upon the Grantee any right to continue employment with the Company and shall not limit the right of the Company, in its sole and absolute discretion, to terminate Grantee’s employment at any time. 

14.    Responsibility for Taxes and Withholdings. The Grantee acknowledges that,
regardless of any action the Company or the Grantee’s actual employer (“Employer”) takes with respect to any or all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to the Grantee’s participation in the Plan and legally applicable to the Grantee (“Tax-Related Items”), the ultimate liability for all
Tax-Related Items is and remains the Grantee’s responsibility and may exceed the amount actually withheld by the Company or the Employer. The Grantee further acknowledges that the Company and/or the
Employer: (i) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Units, including the grant of the Units, the vesting of Units,
the conversion of the Units into shares or the receipt of an equivalent cash payment, the subsequent sale of any shares acquired at vesting and the receipt of any dividends and/or dividend equivalents; and (ii) do not commit to and are under no
obligation to structure the terms of the grant or any aspect of the Units to reduce or eliminate the Grantee’s liability for Tax-Related Items or achieve any particular tax result. Further, if the Grantee
has become subject to tax in more than one jurisdiction between the Grant Date and the date of any relevant taxable event, the Grantee acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold
or account for Tax-Related Items in more than one jurisdiction. 

  
 9 

 Prior to any relevant taxable or tax withholding event, as applicable, the
Grantee shall pay, or make adequate arrangements satisfactory to the Company and/or the Employer to satisfy all Tax-Related Items. In this regard, pursuant to Article 17 of the Plan, if permissible under local
law and subject to any restrictions provided by the Committee prior to the vesting of the shares, the Grantee authorizes the Company or the Employer, or their respective agents, to withhold all applicable
Tax-Related Items in shares of Stock to be issued upon vesting/settlement of the Units. Alternatively, or in addition, subject to any restrictions provided by the Committee prior to the vesting of the shares,
the Grantee authorizes the Company and/or the Employer, or their respective agents, to satisfy the obligations with regard to all Tax-Related Items by one or a combination of the following:
(i) withholding from the Grantee’s wages or other cash compensation paid to the Grantee by the Company and/or the Employer; (ii) withholding from proceeds of the sale of shares of Stock acquired upon vesting/settlement of the Units
either through a voluntary sale or through a mandatory sale arranged by the Company (on the Grantee’s behalf pursuant to this authorization); (iii) personal check or other cash equivalent acceptable to the Company; or (iv) any other means
as determined appropriate by the Company or the Committee. 
 Depending on the withholding method, the Company may withhold
or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or such greater amounts not to exceed the maximum statutory rate necessary, in the applicable jurisdiction, to
satisfy federal, state, and local withholding tax requirements (but only if withholding at a rate greater than the minimum statutory rate will not result in adverse financial accounting consequences). In the event that the Company withholds an
amount for Tax-Related Items that exceeds the maximum withholding amount under applicable law, the Grantee shall receive a refund of such over-withheld amount in cash and shall have no entitlement to an
equivalent amount in Stock. If the obligation for Tax-Related Items is satisfied by withholding a number of shares of Stock as described herein, for tax purposes, the Grantee shall be deemed to have been
issued the full number of shares of Stock subject to the Award, notwithstanding that a number of the shares of Stock are held back solely for the purpose of paying the Tax-Related Items due as a result of the
Grantee’s participation in the Plan. 
 Finally, the Grantee shall pay to the Company or to the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result of the Grantee’s participation in the Plan that cannot be satisfied by the means previously described.
The Company may refuse to issue or deliver shares or the proceeds of the sale of shares of Stock if the Grantee fails to comply with his or her obligation in connection with the Tax-Related Items. 

15.    Amendments. Unless otherwise provided in the Plan or this Grant Agreement,
this Grant Agreement may be amended only by a written agreement executed by the Company and the Grantee. 

16.    Integrated Agreement. Any grant notice, this Grant Agreement and the Plan
shall constitute the entire understanding and agreement of the Grantee and the Company with 

  
 10 

 
respect to the subject matter contained herein or therein and supersedes any prior agreements, understandings, restrictions, representations or warranties between the Grantee and the Company with
respect to such subject matter other than those as set forth or provided for herein or therein. To the extent contemplated herein or therein, the provisions of any grant notice and this Grant Agreement shall survive any settlement of the Award and
shall remain in full force and effect. 
 17.    Severability. If one or more of
the provisions of this Grant Agreement shall be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby and the invalid,
illegal or unenforceable provisions shall be deemed null and void; however, to the extent permissible by law, any provisions which could be deemed null and void shall first be construed, interpreted or revised retroactively to permit this Grant
Agreement to be construed so as to foster the intent of this Grant Agreement and the Plan. 

18.    Counterparts. Any grant notice and this Grant Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

19.    Governing Law and Venue. This Grant Agreement shall be interpreted and
administered under the laws of the State of Delaware. For purposes of litigating any dispute that arises under this grant or this Award, the parties hereby submit to and consent to the jurisdiction of the State of Arizona, agree that such litigation
shall be conducted in the courts of Maricopa County, Arizona, or the federal courts for the United States for the District of Arizona, where this grant is made and/or to be performed. 

20.    Other. The Grantee represents that the Grantee has read and is familiar with
the provisions of the Plan and this Grant Agreement, and hereby accepts the Award subject to all of their terms and conditions. 

21.    Section 409A Compliance. Section 409A of the Code imposes an additional
20% tax, plus interest, on payments from “non-qualified deferred compensation plans.” Certain payments under this Grant Agreement could be considered to be payments under a “non-qualified deferred compensation plan.” The additional 20% tax and interest do not apply if the payment qualifies for an exception to the requirements of Section 409A or complies with the
requirements of Section 409A. The Company believes, but does not and cannot warrant or guaranty, that the payments due pursuant to this Grant Agreement qualify for the short-term deferral exception to Section 409A of the Code as set forth
in Treasury Regulation Section 1.409A-1(b)(4). Notwithstanding anything to the contrary in this Grant Agreement, if the Company determines that neither the short-term deferral exception nor any other
exception to Section 409A applies to the payments due pursuant to this Grant Agreement, to the extent any payments are due on the Grantee’s termination of employment, the term “termination of employment” shall mean
“separation from service” as defined in Treasury Regulation Section 1.409A-1(h). In addition, if Grantee is a “specified employee” (as defined in Treasury Regulation Section 1.409A-1(i)) and any payments due pursuant to this Grant Agreement are payable on the Grantee’s “separation from service,” then such payments shall be paid on the first business day
following the expiration of the six month period following the Grantee’s “separation from service.” This Grant Agreement shall be operated in compliance with Section 409A 

  
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or an exception thereto and each provision of this Grant Agreement shall be interpreted, to the extent possible, to comply with Section 409A or to qualify for an applicable exception. The
Grantee remains solely responsible for any adverse tax consequences imposed upon the Grantee by Section 409A. 

22.    Confidentiality. The Grantee acknowledges and agrees that the terms of this
Grant Agreement are considered proprietary information of the Company. The Grantee hereby agrees that Grantee shall maintain the confidentiality of these matters to the fullest extent permitted by law and shall not disclose them to any third party.
If the Grantee violates this confidentiality provision, without waiving any other remedy available, the Company may revoke this Award without further obligation or liability, and the Grantee may be subject to disciplinary action, up to and including
the Company’s termination of the Grantee’s employment for Cause. This Grant Agreement does not limit the Grantee’s ability to communicate with any government agencies regarding matters within their jurisdiction or otherwise
participate in any investigation or proceeding that may be conducted by any government agency, including providing documents or other information, without notice, to the government agencies. Nothing in this Grant Agreement shall prevent the Grantee
from disclosing confidential information or trade secrets that: (i) is made: (A) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (B) solely for the purpose of
reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. In the event that the Grantee files a lawsuit alleging
retaliation by the Company for reporting a suspected violation of law, the Grantee may disclose confidential information or trade secrets related to the suspected violation of law or alleged retaliation to the Grantee’s attorney and use the
confidential information or trade secrets in the court proceeding if the Grantee or the Grantee’s attorney: (i) files any document containing confidential information or trade secrets under seal; and (ii) does not disclose the
confidential information or trade secrets, except pursuant to court order. The Company provides this notice in compliance with, among others, the Defend Trade Secrets Act of 2016. 

23.    Appendix. Notwithstanding any provisions in this Grant Agreement, the grant of
the Units shall be subject to any special terms and conditions set forth in any appendix (or any appendices) to this Grant Agreement for the Grantee’s country (the “Appendix”). Moreover, if the Grantee relocates to one of the
countries included in the Appendix, the special terms and conditions for such country will apply to the Grantee, to the extent the Company determines that the application of such terms and conditions is necessary or advisable in order to comply with
local law or facilitate the administration of the Plan. The Appendix constitutes part of this Grant Agreement. 

24.    Imposition of Other Requirements. The Company reserves the right to impose
other requirements on the Grantee’s participation in the Plan, on the Units and on any shares of Stock acquired under the Plan, to the extent the Company determines it is necessary or advisable in order to comply with local law or facilitate
the administration of the Plan, and to require the Grantee to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing. Further, the Award and profits under this Grant Agreement are subject to the
Company’s compensation recovery policy or policies (and related Company practices) as such may be in effect from time-to-time, whether or not such policies were
adopted in response to Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, as amended, 

  
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and similar or related laws, rules and regulations. In addition to the Company’s compensation recovery policy or policies, and notwithstanding anything in the Plan or any Employment
Agreement to the contrary, the Company may require the Grantee to forfeit all or a portion of any unvested Units and any shares of Stock delivered pursuant to this Grant Agreement if: (i) the Grantee’s employment is terminated for Cause;
or (ii) the Committee, in its sole and absolute discretion, determines that the Grantee engaged in serious misconduct that results or might reasonably be expected to result in financial or reputational harm to the Company. Grantee agrees to
fully cooperate with the Company in assuring compliance with the provisions of this Section 24 and such compensation recovery policies and the provisions of applicable law, including, but not limited to, promptly returning any compensation
subject to recovery by the Company pursuant to the provisions of this Section 24, such policies and applicable law. 
 [Remainder
of Page Intentionally Left Blank; Signature Page Follows] 

  
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 IN WITNESS WHEREOF, the Company has caused this Grant Agreement to be
signed by its duly authorized representative and the Grantee has signed this Grant Agreement as of the date first written above. 
  

			
	ON SEMICONDUCTOR CORPORATION
		
	 By:
	 	  

		 	 Tobin Cookman

		 	 Senior Vice President, Human Resources

		 	 Assistant Compliance and Ethics Officer

	
	GRANTEE
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  
 14

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