Document:

Blueprint

 

 

 

 

 

SHARE PLEDGE AGREEMENT

 

THIS SHARE PLEDGE
AGREEMENT dated as of the 16th
day of Oct, 2017 .

 

 

BETWEEN:

 

JERRY KROLL,
an individual with an address at 102 E
1st Ave,

 

Vancouver, British Columbia V5T I A4 (the
"Pledgor")

AND:

 

 

CHONGQING ZONGSHEN AUTOMOBILE INDUSTRY CO.,

 

LTD., a company validly existing under the laws of the
People's Republic of China, having an office at Zongshen Industrial
Zone,

 

Chaoyouchang, Banan District, Chongqing, China
(the "Zongshen")

 

 

 

WHEREAS:

 

 

 

A. Zongshen
and ElectraMeccanica Vehicles Corp., a company incorporated under
the laws of the Province of British Columbia ("EMV"), entered into a memorandum of understanding dated
the 18th
day of September, 2017 (the
"MOU"); and

 

 

B. Pursuant
to the MOU, the Pledgor has agreed to pledge the Pledged EMV Shares
(as hereinafter defined) to and in favour of Zongshen.

 

 

 

C. Zongshen
(Canada) Environtech Ltd. ("Environtech"), a
Canadian affiliate of Zongshen, has agreed to accept the pledge of
Pledged EMV Shares for and on behalf of the Zongshen, and otherwise
act on behalf of Zongshen under this Agreement;

 

 

NOW THEREFORE
for good and valuable consideration
(the receipt and sufficiency of which are hereby acknowledged) the
Pledgor and Zongshen agree as follows:

 

 

 

ARTICLE 1 INTERPRETATION

 

 

1.1 Defined Terms.
As used in this agreement, the
following words and phrases have the following
meanings:

 

 

(a)

"Agreement" means this share pledge agreement and all
schedules hereto, as amended, supplemented, extended, renewed,
restated, replaced or superseded from time to
time.

 

 

(b)

"Business Day"
means a day that is not a Saturday,
Sunday or civic or statutory holiday in Vancouver, British
Columbia.

 

 

(c)

"Collateral"
means all of the Pledged EMV Shares,
substitutions therefor and proceeds of disposition thereof and all
other property that may at any time be received by or
otherwise

 

 

 

distributed
to or acquired by the Pledgor in any manner in respect of, or in
substitution for, or in addition to, or in exchange for, or on
account of, any of the foregoing, including without limitation, any
shares or other securities resulting from the subdivision,
consolidation, change, conversion or reclassification of any of the
foregoing.

 

1

 

 

 

 

 

(d)

"Default Notice"
has the meaning ascribed in Section
3.2 hereunder.

 

 

 

(e)

"Event of Default"
has the meaning ascribed in Section
3.2 hereunder.

 

 

(t) "Obligations"
means the obligations of EMV to
Zongshen, arising under or pursuant to the MOU.

 

 

(g)

"Pledged EMV Shares"
means the number of shares issued and
outstanding in the authorized share structure of EMV that are
registered in the name of and beneficially held by the Pledgor, as
set out opposite the name of the Pledgor in Schedule "A" attached
hereto.

 

 

(h)

"Security Discharge
Date" means the time at which
Zongshen tenders receipt of payment by EMV for the prototype mold
at the end of the 6 month period, as contemplated by the
MOU.

 

 

(i)

"Security Interest"
has the meaning ascribed in Section
2.1 hereunder.

 

 

 

1.2 Other Usages.
References to "this agreement", "the
agreement", "hereof', "herein", and like references refer to this
Share Pledge Agreement and not to any particular Article, section
or other subdivision of this agreement.

 

 

1.3 Plural and Singular.
Where the context so requires, words
importing the singular number shall include the plural and vice
versa.

 

 

1.4 Headings. The insertion of headings in this agreement is for
convenience of reference only and shall not affect the construction
or interpretation of this agreement.

 

 

 

1.5 Applicable Law.
This agreement and all documents
delivered pursuant hereto shall be deemed to be governed by and
construed in accordance with the laws of the Province of British
Columbia, Canada.

 

1.6 Time of the Essence.
Time shall in all respects be of the
essence of this agreement, and no extension or variation of this
agreement or any obligation hereunder shall operate as a waiver of
this provision.

 

 

 

ARTICLE2 PLEDGE OF
COLLATERAL

 

2.1 Pledge of Collateral.
As continuing security for the
performance by EMV of the Obligations, the Pledgor hereby grants a
security interest in and pledges the Collateral to and in favour of
Zongshen (the said security interest and pledge of the Collateral
being hereinafter referred to as the "Security
Interest").

 

 

 

2.2 Distributions.
All interest, cash dividends, income
and revenue from Pledged EMV Shares shall be collected by and
payable to the Pledgor (and not Zongshen) and shall not form part
of the Collateral.

 

 

2.3 Voting Rights.
Unless and until an Event of Default
has occurred and is continuing, the Pledgor shall be entitled to
vote the Pledged EMV Shares and to give consents, waivers, notices
and ratifications, and to take
other action in respect of the Pledged EMV Shares, provided
however, that the Pledgor will not vote or give any consent,
waiver, notice or ratification or take any action which would be
prejudicial to the interests of Zongshen, impair, reduce the value
of or restrict the transferability of the Collateral or be
inconsistent with or violate any provision of this Agreement, the
MOU or any other agreement relating hereto or
thereto.

 

 

2.4 Attachment
of Security Interest. The
parties hereby acknowledge their mutual intention that the Security
Interest is to attach, for the purposes of the Act, at the earliest
time permissible under the laws governing this Agreement and that
value has been given and that the Pledgor has rights in the
Collateral existing on the date hereof.

 

 

2

 

 

 

 

 

 

 

ARTICLE3

 

DEFAULT AND ENFORCEMENT

 

 

3.1 Default.
The Pledgor shall be in default under
this Agreement if EMV fails to satisfy the Obligations pursuant to
the terms of the MOU.

 

 

3.2 Default Notice.
In the event of any default as set out
in Section 3.1, Zongshen shall provide written notice of the same
to the Pledgor (the "Default Notice").
In the event that the event of default
has not been remedied within three (3) Business Days of its receipt
of the Default Notice (an "Event of Defau
lt"):

 

 

 

(a)

Zongshen
shall be entitled to take all steps as are reasonably necessary in
order to have the Pledged EMV Shares registered in the name
ofZongshen in the books and records of EMV;

 

 

(b)

Zongshen may exercise in respect of the Collateral
all the rights and remedies of a secured party on default under
the Personal Property Security
Act (British
Columbia);

 

 

(c)

the
Security Interest shall immediately become enforceable and Zongshen
or its nominee may realize on any or all of the Collateral and
sell, lease, assign, give options to purchase, or otherwise dispose
of and deliver any or all of the Collateral (or contract to do any
of the above), in one or more parcels at any public or private sale
or elsewhere, with or without advertising or other formality,
except as required by applicable law, on such terms and conditions
as Zongshen may deem advisable and at such prices as it may deem
best, for cash or on credit or for future delivery;

 

 

(d)

Zongshen
may vote any or all of the Pledged EMV Shares (whether or not
transferred to Zongshen or its nominee) and give or withhold all
consents, waivers and ratifications with respect thereto and
otherwise act with respect thereto as though it were the outright
owner thereof; and

 

 

(e)

Zongshen
may exercise any and all rights, privileges, entitlements and
options pertaining to any of the Collateral as if Zongshen were the
absolute owner of such Collateral.

 

 

3.3 Zongshen
may waive any breach by the Pledgor of any of the provisions
contained in this Agreement or any default by the Pledgor in the
observance or the performance of any term or condition of this
Agreement, provided always that no act or omission of Zongshen
shall extend to or be taken in any manner whatsoever to affect any
subsequent breach or default of the Pledgor or the rights resulting
therefrom.

 

 

3.4 The
parties hereto shall sign such further and other papers, cause such
meetings to be held, resolutions passed, exercise their vote and
influence, do and perform and cause to be done and performed
such further and other acts and things
as may be necessary or desirable in order to give effect to this
Agreement.

 

3.5 The
rights of Zongshen under this Agreement are cumulative and not
exclusive of any right or remedy which Zongshen would otherwise
have.

 

 

 

ARTICLE 4

 

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

 

4.1 Representations
and Warranties of the Pledgor. The Pledgor represents and warrants to and in
favour of Zongshen as of the date hereof, that:

 

 

(a)

the
Pledgor has not entered into any agreement with or granted to any
person, firm or corporation any option or any right or privilege
capable of becoming an agreement or option to acquire any right or
interest in any of the Collateral (other than as created by this
Agreement);

 

 

(b)

the
Pledgor is the legal and beneficial owner of the Collateral free
and clear of all liens, charges, pledges, restrictions (other than
restrictions arising under any applicable securities laws) and
encumbrances (other than as created by this
Agreement);

 

 

3

 

 

 

 

(c)

the
Pledgor has the full right and legal capacity to enter into this
Agreement and to grant to Zongshen the Security Interest in the
Collateral;

 

 

(d)

this
Agreement has been duly executed and delivered by the Pledgor and
constitutes a legal, valid and binding obligation of the Pledgor
enforceable by Zongshen against the Pledgor in accordance with its
terms, except as enforceability may be limited by applicable
bankruptcy laws and general principles of equity;

 

 

(e)

the
execution and delivery by the Pledgor of this Agreement, and the
performance of his obligations under this Agreement, do not and
will not breach or result in a default under any contract or
covenant by which he is bound;

 

 

(f)

the
pledge, assignment and delivery of the Collateral pursuant to this
Agreement creates a valid, perfected, first pledge of and a
perfected security interest in such Collateral, subject to no prior
pledge, lien, mortgage, hypothecation, security interest, charge,
option or encumbrance; and

 

 

 

(g)

the
Pledged EMV Shares pledged by the Pledgor to Zongshen hereunder
have been validly issued, are fully paid and
non-assessable.

 

All
of the foregoing representations and warranties made herein shall
survive the execution and delivery of this Agreement and shall be
deemed to be continuously made hereunder so long as any of the
Obligations remain outstanding.

 

 

4.2 Covenants
of the Pledgor. The Pledgor
hereby covenants and agrees with Zongshen, as soon as practicable
following receipt thereof, to deliver to Zongshen or Zongshen's
nominee, all certificates representing any shares or other
securities issued to Zongshen in substitution for the Pledged EMV
Shares or any other Collateral, and any shares or securities in
addition to those delivered upon the execution hereof, in each
case, duly endorsed in blank for transfer or accompanied by any and
all powers of attorney or instruments necessary to permit transfer
thereof. The Pledgor will not sell, assign, transfer, pledge or
encumber in any other manner the Collateral except in favour of
Zongshen.

 

 

 

4.3 Covenants
of Pledgor. The Pledgor hereby
covenants and agrees with Zongshen that it shall, from time to time
at its own expense, take such further action as Zongshen may
reasonably request for the purpose of obtaining or preserving the
full benefits of, and the rights and powers granted by, this
agreement, and agrees to sign and deliver, or cause to be signed
and delivered, to Zongshen all such further and other deeds,
documents, certificates, agreements and written instruments and to
take all such further action as may, in the reasonable opinion of
Zongshen, be reasonably necessary for the purpose of better
assuring to Zongshen, perfecting or enforcing the security
constituted hereby.

 

 

 

ARTICLE 5 RELEASE OF
COLLATERAL

 

 

5.1 Release
of Collateral. Upon the
Security Discharge Date and without the need for any direction or
action on the part of the Pledgor, Zongshen shall, as soon as
practicable, release and return to the Pledgor the Collateral and
all documents evidencing ownership of or title to the
Collateral.

 

 

5.2 Non-Release.
The security constituted hereby shall
not be released, discharged or in any way be affected
by:

 

 

(a)

any
increase or decrease in the amount of the Obligations of the
Pledgor;

 

 

(b)

an
extension of time for payment of the Obligations of the Pledgor;
or

 

 

(c)

any
forbearance whatsoever whether as to time, performance or
otherwise, or any compromise, arrangement or plan or reorganization
affecting the Pledgor.

 

4

 

 

 

 

 

 

 

 

ARTICLE 6

 

GENERAL CONTRACT PROVISIONS

 

 

6.1 Notices.
Any notices to a party under the
prov1s1ons of this Agreement shall be valid and effective if
delivered personally by courier or by facsimile or other acceptable
means of electronic transmission to, or if given by registered
mail, postage prepaid, to the addresses first above mentioned as
applicable to each party hereto, and shall be deemed to have been
given on the date of delivery personally or by facsimile
transmission if so delivered prior to 5:00 p.m. (Vancouver time) on
a Business Day and otherwise on the next Business Day or on the
third Business Day after such letter has been mailed, as the case
may be. The parties hereto may from time to time notify the other
party of a change in address which thereafter, until changed by
further notice, shall be the address of such party for all purposes
of this Agreement.

 

 

6.2 Severability.
Any provision hereof which is
prohibited or unenforceable shall be ineffective to the extent of
such prohibition or unenforceability without invalidating the
remaining provisions hereof.

 

 

6.3 Successors
and Assigns. This Agreement
enures to the benefit of and is binding upon the parties and their
respective successors and permitted assigns. Neither party to this
Agreement shall assign any right, title or interest in this
Agreement without the prior written consent of the other
party.

 

 

6.4 Entire
Agreement. This Agreement and
the agreements referred to herein constitute the entire agreement
between the parties hereto and supersede any prior agreements,
undertakings, declarations, representations and understandings,
both written and verbal, in respect of the subject matter
hereof.

 

 

 

6.5 Counterparts.
This Agreement may be executed and
delivered by the parties in one or more counterparts, each of which
will be an original, and each of which may be delivered by
facsimile or functionally
equivalent electronic means, and those counterparts will together
constitute one and the same instrument.

 

6.6 Environtech.
The Parties agree that Environtech may
act as Zongshen's nominee and agent in respect of the all matters
under this Agreement, including without limitation, accepting the
Pledged EMV Shares on behalf of Zongshen, and exercising all rights
and taking all actions for and on behalf of Zongshen
hereunder.

 

 

 

[The remainder of this page is intentionally left
blank.]

 

5

 

 

 

 

 

 

 

 

IN WITNESS WHEREOF,
the parties hereto have executed this
agreement as of the date first above mentioned.

 

 

 
SIGNED and DELIVERED by JERRY                                  
           
           
   

 
KROLL in the presence of:    
           
           
           
           
           
           
           
           
            s/ Jerry
Kroll

    
          
           
           
           
           
           
           
           
           
           
           
           
           Jerry
Kroll

    
           
           
           
           
           
           
           
           
           
           
           
           
          CEO and General
Manager

s/ Sam
Wolf       

 Witness
(Signature) 

 

Sam
Wolf    

Name (please
print)  

 

 2018-814
Royal Avenue, New Westminster,
B.C                                                               

Address, City, Province

 

CHONGQING ZONGSHEN AUTOMOBILE INDUSTRY CO., LTD.

 

s/
Liu Gang 

Authorized
Signatory

 

 

 
6

 

 

 

 

 

 

 

SCHEDULE "A"

 

PLEDGED EMV SHARES

 

	
 Shareholder

	
 Type and
Number of Shares

	
 Price
per Share (USO)

	
 Certificate Number(s)

	
 Jerry Kroll

	
 800,000 Common Shares of
Electrameccania Vehicles Corp.

	
 $2.00

	
 •Exhibit

LIQUIDITY SERVICES, INC.
EXECUTIVE EMPLOYMENT AGREEMENT  
THIS EXECUTIVE EMPLOYMENT AGREEMENT (“Agreement”) is entered into as of January 10, 2018 (the “Effective Date”), by and between Liquidity Services, Inc., a Delaware corporation (“LSI” or the “Company”), and Roger Gravley (the “Executive”).
1.Employment Agreement.  On the terms and conditions set forth in this Agreement, the Company agrees to employ the Executive and the Executive agrees to be employed by the Company for the Employment Period set forth in Section 2 hereof and in the position and with the duties set forth in Section 3 hereof.  Terms used herein with initial capitalization are defined in Section 10.12 below.
2.    Term.  The term of employment under this Agreement shall be the period set forth in Schedule 1 attached hereto commencing on the Effective Date (the “Employment Period”).
3.    Position and Duties.  The Executive shall serve in the position and with the duties and title set forth in Schedule 1 attached hereto during the Employment Period.  In such capacity, the Executive shall have the normal duties, responsibilities, and authority of such position, subject to the power of the Executive's “Reporting Officer” as designated in Schedule 1, the Company’s Chairman of the Board of Directors (the “Board”) or the Board to reasonably expand or limit such duties, responsibilities and authority. The Executive shall report to the Reporting Officer designated in Schedule 1.  The Executive shall devote the Executive’s best efforts and full business time and attention to the business and affairs of the Company; provided, however, that Executive may, to the extent such participation or service does not materially interfere with the performance of the obligations described in this Agreement, (i) participate in charitable, civic, political, social, trade, or other non-profit organizations and (ii) with the consent of the Board such consent not to be unreasonably withheld, serve as a non-management director of business corporations (or in a like capacity in other for-profit organizations). 
1.Place of Performance.  In connection with the Executive’s employment by the Company, the Executive shall be based at the principal executive offices of the Company, except as otherwise agreed by the Executive and the Company and except for reasonable travel on Company business.  
2.Compensation.
5.1.     Base Salary.  During the Employment Period, the Company shall pay to the Executive an annual base salary (the “Base Salary”), which initially shall be at the rate per year as set forth in Schedule 1.  The Base Salary shall be payable semi-monthly or in such other installments as shall be consistent with the Company’s payroll procedures. The Base Salary may be increased at any time or from time to time, but it may not be decreased without the consent of the Executive.
5.2    Bonus.  The Executive shall be eligible for a performance bonus as set forth in Schedule 1. 
5.3      Equity Awards.  Executive shall be eligible to receive an annual equity award, subject to the terms of the Liquidity Services, Inc. Amended and Restated 2006 Omnibus Long-Term Incentive Plan or successor plan, as determined by the Board or any committee thereof.

5.4    Benefits.  During the Employment Period, the Executive will be entitled to receive such other benefits approved by the Reporting Officer and made available to similarly situated senior executives of the Company, including health insurance, disability insurance, and 401(K) benefits.  At all times the Company agrees to maintain Director’s and Officer’s Liability coverage for the Executive. Nothing contained in this Agreement shall prevent the Company from changing insurance carriers or otherwise modifying the Company’s employee benefit programs. 
5.5        Employee Leave.  The Executive shall be entitled to all public holidays observed by the Company in addition to a total of 26 days of paid time off in accordance with the applicable policies of the Company, which shall be taken at a reasonable time or times per year.
6.    Expenses.  The Executive is expected and is authorized to incur reasonable expenses in the performance of his duties hereunder, including the costs of entertainment, travel, and similar business expenses incurred in the performance of his duties.  The Company shall reimburse the Executive for all such expenses promptly upon periodic presentation by the Executive 

of an itemized account of such expenses and appropriate receipts.  Any reimbursements provided under this Agreement that constitute deferred compensation within the meaning of Code Section 409A shall be made or provided in accordance with the requirements of Code Section 409A, including that (i) in no event shall any fees, expenses or other amounts eligible to be reimbursed by the Company under this Agreement be paid later than the last day of the calendar year next following the calendar year in which the applicable fees, expenses or other amounts were incurred; and (ii) the amount of expenses eligible for reimbursement that the Company is obligated to pay or provide, in any given calendar year shall not affect the expenses that the Company is obligated to reimburse in any other calendar year.
7.    Termination of Employment.  
7.1.    Termination.  The Executive’s employment by the Company during the Employment Period will continue until Executive’s death, Disability, resignation or until Executive’s termination by the Board at any time.
7.2.    Notice of Termination.  Any termination of the Executive’s employment by the Company or the Executive (other than because of the Executive’s death) shall be communicated by written Notice of Termination to the other party hereto in accordance with Section 10.1 hereof.  For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon, if any, and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated.  Termination of the Executive’s employment shall take effect on the Date of Termination.
8.    Compensation Upon Termination.
8.1.    Death.  If the Executive’s employment is terminated during the Employment Period as a result of the Executive’s death, the Company shall pay to the Executive’s estate, or as may be directed by the legal representatives of such estate, the Executive’s full Base Salary through the next full calendar month following the Date of Termination and all other unpaid amounts, if any, to which the Executive is entitled as of the Date of Termination in connection with any fringe benefits pursuant to Section 5.4 and expenses pursuant to Section 6. Subject to Section 8.5 below, the payments contemplated by this Section 8.1 shall be paid at the time they are due, and the Company shall have no further obligations to the Executive or his or her estate under this Agreement.
8.2.    Disability.  If the Company terminates the Executive’s employment during the Employment Period because of the Executive’s Disability, the Company shall pay the Executive the Executive’s full Base Salary through the third full calendar month following the Date of Termination and all other unpaid amounts, if any, to which the Executive is entitled as of the Date of Termination in connection with any fringe benefits pursuant to Section 5.4 and expenses pursuant to Section 6. Subject to Section 8.5 below, the payments contemplated by this Section 8.2 shall be paid at the time they are due, and the Company shall have no further obligations to the Executive under this Agreement; provided, however, that the Base Salary shall be reduced by the amount of any disability benefit payments made to the Executive during a period of Disability from any insurance or other policies provided by the Company.  
8.3.    By the Company with Cause or by the Executive without Good Reason.  If the Company terminates the Executive’s employment during the Employment Period for Cause or if the Executive voluntarily terminates the Executive’s employment during the Employment Period other than for Good Reason, the Company shall pay the Executive the Executive’s full Base Salary through the Date of Termination and all other unpaid amounts, if any, to which Executive is entitled as of the Date of Termination in connection with any fringe benefits pursuant to Section 5.4 and expenses pursuant to Section 6.  Subject to Section 8.5 below, the payments contemplated by this Section 8.3 shall be paid at the time such payments are due, and the Company shall have no further obligations to the Executive under this Agreement.
1.By the Company without Cause or by the Executive for Good Reason.  If the Company terminates the Executive’s employment during the Employment Period other than for Cause, Death, or Disability or the Executive terminates his employment during the Employment Period for Good Reason, the Company shall pay the Executive: (A) the Executive’s full Base Salary through the Date of Termination and all other unpaid amounts, if any, to which the Executive is entitled as of the Date of Termination in connection with any fringe benefits pursuant to Section 5.4 and expenses pursuant to Section 6; and (B) a lump-sum severance package equal to (i) twelve months of the Executive’s Base Salary and (ii) an amount equal to the average annual target incentive bonus earned by the Executive during the previous two fiscal years (collectively the “Severance Payment”). Subject to Section 8.5 below, the Severance Payment shall be payable to the Executive within 60 days of the Date of Termination, provided the Executive timely executes and returns a separation agreement and release of claims in a form acceptable to the Company, and such release has become irrevocable by such date.

2. Code Section 409A Matters. Anything in this Agreement to the contrary notwithstanding, if (A) on the date of Executive’s “separation from service” (within the meaning of Section 409A(a)(2)(A)(i) of the Internal Revenue Code of 1986, as amended (the “Code”)) with the Company, Executive is a “specified employee” (within the meaning of Section 409A(a)(2)(B)(i) of the Code) and (B) as a result of such separation from service, Executive would receive any payment under this Agreement that, absent the application of this Section 8.5, would be subject to the additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(2)(B)(i) of the Code, then no such payment shall be payable prior to the date that is the earliest of (1) six months after the Executive’s separation from service, (2) the Executive’s death or (3) such other date as will cause such payment not to be subject to such additional tax. Any payments which are required to be delayed as a result of this Section 8.5 shall be accumulated and paid as a lump-sum on the earliest possible date determined in accordance the preceding sentence.
9.    Other Agreements.   Executive previously executed an Employee Agreement Regarding Confidentiality, Intellectual Property, and Competitive Activities dated September 4, 2012 (the “Employee Agreement”), and the terms and conditions of the Employee Agreement are specifically incorporated herein by reference.
1.Miscellaneous. 

1.1.Notices.  All notices, demands, requests or other communications required or permitted to be given or made hereunder shall be in writing and shall be delivered, telecopied or mailed by first class registered or certified mail, postage prepaid, addressed as follows:

10.1.1.    If to the Company:
Liquidity Services, Inc.
6931 Arlington Rd., Suite 200
             Bethesda, MD 20814
ATTN:  William P. Angrick, III, Chairman and CEO
Fax:    (202) 467-6868
Phone:  (202) 558-6205

10.1.2.    If to the Executive:
at the address set forth in Schedule 1.

or to such other address as may be designated by either party in a notice to the other.  Each notice, demand, request or other communication that shall be given or made in the manner described above shall be deemed sufficiently given or made for all purposes three days after it is deposited in the U.S. mail, postage prepaid, or at such time as it is delivered to the addressee (with the return receipt, the delivery receipt, the answer back, the confirmation (if telecopy) or the affidavit of messenger being deemed conclusive evidence of such delivery) or at such time as delivery is refused by the addressee upon presentation.
10.2.    Representations.  Executive agrees to execute any proper oath or verify any proper document required to carry out the terms of this Agreement.  Executive represents that performance of all the terms of this Agreement and the Employee Agreement will not breach any existing non-compete or similar agreement.  Executive has not entered into, and Executive agrees not to enter into, any oral or written agreement in conflict herewith.
10.3.    Severability.  The invalidity or unenforceability of any one or more provisions of this Agreement shall not affect the validity or enforceability of the other provisions of this Agreement, which shall remain in full force and effect.
10.4.    Survival.  It is the express intention and agreement of the parties hereto that the provisions of Section 8 hereof shall survive the termination of employment of the Executive.  In addition, all obligations of the Company to make payments hereunder shall survive any termination of this Agreement on the terms and conditions set forth herein.
10.5.    Assignment.  The rights and obligations of the parties to this Agreement shall not be assignable or delegable, except that (i) in the event of the Executive’s death, the personal representative or legatees or distributees of the Executive’s estate, as the case may be, shall have the right to receive any amount owing and unpaid to the Executive hereunder and (ii) the rights and obligations of the Company hereunder shall be assignable and delegable to any Affiliate of the Company or in connection with any subsequent merger, consolidation, sale of all or substantially all of the assets of the Company or similar reorganization of a successor corporation.

10.6.    Binding Effect.  Subject to any provisions hereof restricting assignment, this Agreement shall be binding upon the parties hereto and shall inure to the benefit of the parties and their respective heirs, devisees, executors, administrators, legal representatives, successors and assigns.
10.7.    Amendment; Waiver.  This Agreement shall not be amended, altered or modified except by an instrument in writing duly executed by the parties hereto; provided, that the parties may amend Schedule 1 hereto by executing and delivering a revised version of Schedule 1 and attaching such revised version to this Agreement.  Neither the waiver by either of the parties hereto of a breach of or a default under any of the provisions of this Agreement, nor the failure of either of the parties, on one or more occasions, to enforce any of the provisions of this Agreement or to exercise any right or privilege hereunder, shall thereafter be construed as a waiver of any subsequent breach or default of a similar nature, or as a waiver of any such provisions, rights or privileges hereunder. 
10.8.    Headings.  Section and subsection headings contained in this Agreement are inserted for convenience of reference only, shall not be deemed to be a part of this Agreement for any purpose, and shall not in any way define or affect the meaning, construction or scope of any of the provisions hereof.
10.9.    Governing Law.  This Agreement, the rights and obligations of the parties hereto, and any claims or disputes relating thereto, shall be governed by and construed in accordance with the laws of the District of Columbia not including the choice of law rules thereof. 
10.10.    Entire Agreement. This Agreement, including Schedule 1 hereto and the Employee Agreement, constitute the entire agreement between the parties respecting the employment of Executive, there being no representations, warranties or commitments except as set forth herein.
10.11    Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be an original and all of which shall be deemed to constitute one and the same instrument.
10.12.    Definitions.
“Affiliate” means as to a specified Person any other person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, the specified Person.
“Agreement” means this Executive Employment Agreement.
“Base Salary” is defined in Section 5.1 above.
“Beneficial Owner” means a beneficial owner within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934, as amended.
“Cause” means (i) the commission of a felony or a crime involving moral turpitude (specifically excluding felonies or crimes under any applicable state or federal vehicle code) or the commission of any other act or omission involving dishonesty or fraud with respect to the Company or any of its Subsidiaries or any of their customers or suppliers, or (ii) recurring violations of material Company rules, regulations policies or any material provisions of this Agreement (which are not inconsistent with or in violation of any of the provisions of this Agreement) after written notice to Executive from the Company specifically enumerating all of the facts and circumstances constituting the violation, the conduct or action which can be taken by Executive to cure the violation, and a reasonable opportunity for Executive to take corrective action, or (iii)  gross negligence or willful misconduct with respect to the Company or any of its Subsidiaries.

“Company” means Liquidity Services, Inc. and its successors and assigns.
“Date of Termination” means (i) if the Executive’s employment is terminated by the Executive’s death, the date of the Executive’s death; (ii) if the Executive’s employment is terminated because of the Executive’s Disability, 30 days after Notice of Termination; (iii) if the Executive’s employment is terminated by the Company with or without Cause, the date specified in the Notice of Termination; (iv) if the Executive’s employment is terminated by the Executive with or without Good Reason, the date specified in the Executive’s Notice of Termination, which shall be no less than 30 days following the date on which the Notice of Termination is delivered; provided that the Company may waive all or any of the notice period for no consideration and the Executive’s Termination Date shall be determined by the Company; and (iv) if the Executive’s employment is terminated during the Employment Period other than pursuant to Section 7.1, the date on which Notice of Termination is given.

“Disability” means the Executive’s inability to perform all of the Executive’s duties hereunder by reason of illness, physical or mental disability or other similar incapacity, as determined by a competent medical doctor appointed by the Reporting Officer after a complete and thorough medical examination and evaluation, which inability shall continue for more than three consecutive months or for such shorter periods that when aggregated exceed six (6) months in any twelve (12) month period.
“Effective Date” means the date as of which this Agreement is executed as set out above.
“Employee Agreement” is defined in Section 9 above.
“Employment Period” is defined in Section 2 above.
“Good Reason” means (i) the Company’s failure to perform or observe any of the material terms or provisions of this Agreement (including the provisions of Schedule 1) or the Employee Agreement, and the failure of the Company to cure such default within 30 days after written demand for performance has been given to the Company by the Executive, which demand shall describe specifically the nature of such alleged failure to perform or observe such material terms or provisions; or (ii) a material reduction in the scope of the Executive’s responsibilities and duties without the written consent of Executive; or (iii) any change to the job title given to Executive without his written consent; (iv) any reduction in Base Salary or any other material change in benefits provided to Executive hereunder; or (v) any constructive termination of Executive; (vi) any request, instruction, directive or order, whether direct or indirect, to Executive by the Board, the Company or any executive officer of the Company to perform any act which is unlawful; or (vii) a requirement by the Company for the Executive to relocate outside of the Washington DC metropolitan region to retain his position without the written consent of the Executive. 
 
“Notice of Termination” is defined in Section 7.2 above.
“Person” means an individual, a partnership, a limited liability company, a corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof.
“Severance Payment” is defined in Section 8.4 above.
IN WITNESS WHEREOF, the undersigned have duly executed this Agreement, or have caused this Agreement to be duly executed on their behalf, as of the day and year first hereinabove written.

LIQUIDITY SERVICES, INC.

    

By:         
William P. Angrick, III
Chairman and CEO
EXECUTIVE:
    
            
Roger Gravley

SCHEDULE 1

CERTAIN TERMS OF EMPLOYMENT

All capitalized but undefined terms in this Schedule shall have the meaning ascribed to them in the Agreement.

Name:  Roger Gravley

Position/Title:  Chief Information Officer and President, GovDeals

Duties:  You will be responsible for supervising and managing LSI’s legal, regulatory and compliance activities. As a member of the Company’s senior management team you will work closely with LSI’s Chief Financial Officer and business unit heads regarding key decisions involving operating policy and corporate development. Specific responsibilities are summarized below.

Chief Information Officer Role

		
	•
	Partner with the Company’s leadership team to align the Company’s overall technology strategy and implementation with the Company’s business plan

		
	•
	Lead the Company’s LiquidityOne Transformation plan that will define and implement a singular and superior seller and buyer customer experience, operational processes and consolidated IT platforms to scale and grow our business

		
	•
	Understand client needs to prioritize technology development

		
	•
	Oversee the in-house development of the Company’s internal business applications to ensure reliability and scalability

		
	•
	Support the provisioning of the Company’s technology resources to support our P&L business units

		
	•
	Oversee the procurement, installation and maintenance of all the Company’s hardware and systems

		
	•
	Ensure that the Company conducts its business in a secure fashion

		
	•
	Hire, train and motivate a highly skilled Information Technology organization capable of delivering internal services that meet the Company’s needs at a reasonable cost.

		
	•
	Be a visible role model for the Company’s values and best leadership practices

President Role

		
	•
	Agree with Company’s senior leadership team on the strategy for the Company’s self-service marketplaces and translate it into an operational and organization plan 

		
	•
	Develop an organizational structure in line with the Company’s strategic and financial plan and manage the human capital of self-service organization to support future growth

		
	•
	Define goals and monitor key performance indicators for each function and for the organization as a whole

		
	•
	Manage and lead the organization to meet or exceed its annual financial targets

		
	•
	Hire, train and motivate team members and maintain cohesiveness of the team

		
	•
	Develop and maintain, with the sales team, large client relationships

		
	•
	Understand client needs, prioritize and drive implementation of cross-functional initiatives to fulfill client needs in support of growth plan

		
	•
	Develop effective marketing activities and monitor their effectiveness

		
	•
	Identify, prioritize and monitor implementation of key operational improvements

		
	•
	Participate with senior management in screening of M&A targets and implement integration of potential acquired companies

		
	•
	Provide senior management with dashboard reporting and continuous input to refine strategic direction

		
	•
	Be a visible role model for the Company’s values and best leadership practices

Employment Term:   One Year from the Effective Date, automatically renewable for successive one year terms unless earlier terminated by either party.
                
Reporting Officer:  Chairman and CEO

Base Salary:  $350,000 per annum

Bonus:  Executive shall be eligible for an annual incentive bonus one year from the Effective Date up to 60% of his Base Salary based upon the achievement of certain deliverables or goals as agreed to by the Executive and the Reporting Officer.  The Board’s Compensation Committee reserves the right to award a discretionary bonus based on the Executive’s performance and contributions.

Current Notice Address:

Roger Gravley
82 Mountain Laurel Rd
Wetumpka, AL 36093

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00278-of-00352.parquet"}]]