Document:

Document

Exhibit 10.1
SIXTH AMENDMENT TO CREDIT AGREEMENT

This Sixth Amendment to Credit Agreement (“Amendment”) dated effective as of December 9, 2022 is made between DAKTRONICS, INC., a South Dakota corporation (“Borrower”) and U.S. BANK NATIONAL ASSOCIATION, a national banking association (together with its successors and assigns, the “Lender”).

RECITALS:

A.Borrower and Lender executed a Credit Agreement dated November 15, 2016, as amended and/or restated from time to time (the “Agreement”). The Agreement has previously been amended by: (i) a First Amendment to Credit Agreement dated June 24, 2019, (ii) a Second Amendment to Credit Agreement dated November 15, 2019, (iii) a Third Amendment to Credit Agreement dated August 28, 2020, (iv) a Fourth Amendment to Credit Agreement dated March 11, 2021, (v) a Fifth Amendment to Credit Agreement dated April 29, 2022, (vi) an Amendment to Credit Agreement and Note dated August 16, 2022, and (vii) an Amendment to Credit Agreement and Note dated October 31, 2022. 

B.Borrower also executed a Revolving Note dated November 15, 2016, as amended and/or restated from time to time (the “Note”). The Agreement, the Note, and all collateral and/or other documents, which may or may not be identified in the Agreement and Note, which evidence, supplement, secure or otherwise relate to the credit facility which is evidenced by the Agreement and Note, as amended and/or restated from time to time, are collectively referred to as the “Loan Documents.” The Loan Documents set forth the terms and conditions upon which Borrower obtained a loan from Lender in the principal amount of $35,000,000, as such amount has been or may be amended from time to time according to the terms of the Loan Documents.

C.Borrower has requested that Lender permit certain modifications to the Agreement as described below. 

D.Lender has agreed to such modifications, but only upon the terms and conditions outlined in the Amendment.

In consideration of the mutual covenants contained herein and for other good and valuable consideration, Borrower and Lender agree as follows: 

ADDITIONS, DELETIONS OR CHANGES IN TERMS

The following provisions are added to the Agreement or, if so indicated below, specified provisions of the Agreement and Note are modified, in part, or deleted or performance thereof is waived to the extent provided below. If any provision or partial provision added below already exists in the Agreement, such provision is restated in its entirety. Capitalized terms used in the Amendment and not otherwise defined herein will have the meanings ascribed to them in the Agreement.

Definitions. The following defined terms in Section 1.1 of the Credit Agreement are amended and restated to read:

“Adjusted Fixed Charge Coverage Ratio” means, with respect to any fiscal period of determination with respect to the Borrower, the ratio of:

{04922482.1}

(a)      EBITDAR minus the sum of (i) income tax expense (but excluding cash used to repurchase any stock and, effective with the fiscal quarter ending October 29, 2022, excluding income tax expense associated with any change in deferred tax asset valuation allowances related to the going concern disclosure), (ii) cash dividends and (iii) the MCAPEX Reserve to

(b)     interest expense or cash interest plus all required principal payments on indebtedness including, but not limited to, all principal payments on acquisition related contingent liabilities, all payments with respect to Capitalized Lease Obligations, and rent expense.

“Anti-Corruption Laws” means the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder, and any other anti-corruption law applicable to the Borrower and its Subsidiaries.

“Sanctions” means sanctions administered or enforced from time to time by the U.S. government, including those administered by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union, Her Majesty’s Treasury or other relevant sanctions authority.

Anti-Corruption Laws; Sanctions. Section 5.17 of the Agreement is amended and restated to read:

5.17     Anti-Corruption Laws; Sanctions. Borrower, its Subsidiaries and their respective directors, officers, and employees and, to the knowledge of the Borrower, the agents of the Borrower and its Subsidiaries are in compliance with Anti-Corruption Laws and all applicable Sanctions in all material respects. Borrower and its Subsidiaries have implemented and maintain in effect policies and procedures designed to ensure compliance with Anti-Corruption Laws and applicable Sanctions. None of the Borrower, any of its Subsidiaries or any director, officer, employee, agent, or affiliate of the Borrower or any of its Subsidiaries is an individual or entity that is, or is 50% or more owned (individually or in the aggregate, directly or indirectly) or controlled by individuals or entities (including any agency, political subdivision or instrumentality of any government) that are (a) the target of any Sanctions or (b) located, organized or resident in a country or territory that is the subject of Sanctions (at the time of this, Agreement, Crimea, Cuba, Iran, North Korea, Syria, the so-called Donetsk People’s Republic, so-called Luhansk People’s Republic).

Financial Reporting. Section 6.1 of the Agreement is amended and restated to read:

6.1. Financial Reporting. Borrower will maintain, for itself and each Subsidiary, a system of accounting established and administered in accordance with GAAP, and furnish to Lender:

(a)     Within 90 days after the close of each of its fiscal years, an unqualified (except for qualifications relating to changes in accounting principles or practices reflecting changes in GAAP) audit report, with no going concern modifier, certified by independent certified public accountants acceptable to Lender, prepared in accordance with GAAP on a consolidated basis for Borrower and its Subsidiaries, including balance sheets as of the end of such period, related profit and loss and reconciliation of surplus statements, and a statement of cash flows, accompanied by any management letter prepared by the accountants.

(b)     Within 20 days after the close of each fiscal month beginning with the fiscal month ending December 31, 2022, for itself and its Subsidiaries, consolidated unaudited balance sheets as at the close of each such period and consolidated profit and loss and reconciliation of surplus statements (including sufficient detail for independent calculation of the 
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financial covenants set forth in Section 6.16) and a statement of cash flows for the period from the beginning of such fiscal year to the end of such period, all certified by Borrower’s chief financial officer.

(c)     Within 20 days after the close of each fiscal month beginning with the fiscal month ending December 31, 2022 or upon request by Lender, a plan and forecast (including a projected consolidated balance sheet, income statement, and funds flow statement) of the Borrower for such fiscal year and a monthly comparison to budget.

(d)     Within 20 days after the close of each fiscal month beginning with the fiscal month ending December 31, 2022 or upon request by Lender, an accounts receivable aging report, an accounts payable aging report, and a detailed inventory report by location including a description of the inventory and its age.

(e)     A bi-weekly 13-week cash flow forecast by 4:00 PM on the following Monday following the bi-weekly period. When Monday is an observed federal holiday, the report will be due by 4:00 PM on the following Business Day.

(f)     Promptly upon the furnishing thereof to the shareholders of the Borrower, copies of all financial statements, reports and proxy statements so furnished.

(g)     Promptly upon the filing thereof, copies of all registration statements and annual, quarterly, monthly or other regular reports which the Borrower or any of its Subsidiaries files with the U.S. Securities and Exchange Commission.

(h)    Such other information (including non-financial information and environmental reports) as Lender may from time to time reasonably request.

(i)     Any financial statement required to be furnished pursuant to Section 6.1(a) or Section 6.1(b) will be deemed to have been furnished on the date on which Lender receives notice that Borrower has filed such financial statement with the U.S. Securities and Exchange Commission and is available on the EDGAR website on the Internet at www.sec.gov or any successor government website that is freely and readily available to Lender without charge; provided that Borrower will give notice of any such filing to Lender. Notwithstanding the foregoing, Borrower will deliver paper or electronic copies of any such financial statement to Lender if Lender requests the Borrower to furnish such paper or electronic copies until written notice to cease delivering such paper or electronic copies is given by Lender.

If any information which is required to be furnished to Lender under this Section 6.1 is required by law or regulation to be filed by Borrower with a government body on an earlier date, then the information required hereunder will be furnished to Lender at such earlier date.

Use of Proceeds. Section 6.2 of the Agreement is amended and restated to read:

6.2     Use of Proceeds. Borrower will, and will cause each Subsidiary to, use the proceeds of the Credit Extensions for general corporate purposes. Borrower will not, nor will it permit any Subsidiary to, use any of the proceeds of the Credit Extensions to purchase or carry any “margin stock” (as defined in Regulation U). Borrower will not, directly or indirectly, use the proceeds of the Loans or any Facility LC, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person, (a) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws or (b)(i) to fund any activities or business of or with any Person, or in any country or territory, that, at the time of such funding, is the subject of Sanctions, or (ii) in any other manner that would result in a 
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violation of Sanctions by any Person (including any Person participating in the Loans or Facility LC, whether as administrative agent, arranger, issuing bank, Lender, underwriter, advisor, investor, or otherwise).

Compliance with Laws. Section 6.7 of the Agreement is amended and restated to read:

6.7     Compliance with Laws and Material Contracts. Borrower will, and will cause each Subsidiary to, (a) comply in all material respects with all laws, rules, regulations, orders, writs, judgments, injunctions, decrees or awards to which it may be subject including, without limitation, all Environmental Laws, Anti-Corruption Laws and applicable Sanctions and (b) perform in all material respects its obligations under material agreements to which it is a party. Borrower will maintain in effect and enforce policies and procedures designed to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions. Borrower will not use or allow any tenants or subtenants to use, or permit any Subsidiary to use or allow any tenants or subtenants to use, its Property for any business activity that violates any applicable federal or state law or that supports a business that violates any federal or state law.

Anti-Money Laundering Compliance. Section 6.18 of the Agreement is amended and restated to read:

6.18     Anti-Money Laundering and PATRIOT Act Compliance. Borrower will, and will cause each Subsidiary to, provide such information and take such actions as are reasonably requested by Lender in order to assist Lender in maintaining compliance with anti-money laundering laws and regulations and the PATRIOT Act.

Equity Investments. Section 6.20 of the Agreement is amended and restated to read:

6.20     Equity Investments. Borrower will not, without the prior written consent of Lender, make any purchases of equity investments until its going concern disclosure is removed. After Borrower’s going concern disclosure is removed, Borrower will not make purchases of equity investments which exceed $3,000,000 within a 12-month period, determined as of the end of each fiscal quarter for the then most-recently ended four (4) fiscal quarters, without the prior written approval of Lender.

Additional Covenants. The following sections are added to the Agreement:

6.21     Financial Consultant. Upon Lender’s request, Borrower will engage a financial consultant approved by Lender with a scope of services satisfactory to Lender. Lender will have access to the consultant and all work product.

6.22     Restriction on Indebtedness. Borrower will not create, incur, assume or have outstanding any indebtedness for borrowed money (including capitalized leases) except:

(a)       any indebtedness owing to Lender and its affiliates; and

(b)      indebtedness to Bank of America, N.A. which is outstanding on the date of this Amendment as described in an Intercreditor Agreement between Lender and Bank of America, N.A. dated November 16, 2016 (as amended by Amendment No. 1 to Intercreditor Agreement dated November 15, 2019 and Amendment No.2 to Intercreditor Agreement dated May 23, 2022).

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6.23     Restriction on Liens. Borrower will not create, incur, assume or permit to exist any mortgage, pledge, encumbrance or other lien or levy or security interest in any of Borrower’s real or personal property, including cash, whether now owned or hereafter acquired, except:

(a)       liens in favor of Lender and its affiliates;

(b)     taxes and assessments which are either not delinquent or which are being contested in good faith with adequate reserves provided;

(c)       liens consisting of deposits or pledges made in ordinary course of business in connection with, or to secure  payment  of,  obligations  under  workers’  compensation, unemployment insurance or similar legislation; and

(d) other liens disclosed in writing to Lender prior to the date of this Amendment. 

6.24    Restriction on Contingent Liabilities.  Borrower will not guarantee or become a surety or otherwise contingently liable for any obligations of others, except (i) pursuant to the deposit and collection of checks and similar matters in the ordinary course of business; and (ii) guaranties or other contingent liabilities in favor of Lender and its affiliates.

6.25     Restriction on Repurchases and Dividends. Borrower will not, without the prior written consent of Lender, redeem, repurchase, or retire any of the capital stock or other equity interests  in  Borrower  or  declare  or  pay  any  dividends  or  make  any other payments or distributions of a similar type or nature including withdrawal distributions.

MISCELLANEOUS TERMS

Release. In consideration for Lender’s modification and to induce Lender to enter into this Amendment, Borrower, for and on behalf of itself and its shareholders, directors, officers, employees, agents, successors and assigns, waives, releases, relinquishes and forever discharges Lender, its parents, subsidiaries, and affiliates, its and their respective past, present and future directors, officers, managers, agents, employees, insurers, attorneys, representatives and all of their respective heirs, successors, and assigns (collectively, the “Released Parties”) of and from any and all manner of action or causes of action, suits, claims, demands, judgments, damages, levies and executions of whatsoever kind, nature and/or description including, without limitation, any claims, losses, costs or damages, including compensatory and punitive damages, in each case whether known or unknown, asserted, or unasserted, liquidated or unliquidated, fixed or contingent, direct or indirect, which Borrower or its shareholders, directors, officers, employees, agents, successors and assigns ever had or now has or may claim to have against any of the Released Parties with respect to any matter whatsoever including, without limitation, the Loan Documents, the administration of any Loan Documents, the negotiations relating to this Amendment, and the other Loan Documents executed in connection herewith and any other instruments and agreements executed by Borrower. Borrower agrees not to sue any Released Party or in any way assist any other person or entity in suing a Released Party with respect to any claim released herein.

Effectiveness of Prior Documents. Except as specifically modified by this Amendment, the Agreement, and the other Loan Documents will remain in full force and effect in accordance with their respective terms. Borrower acknowledges the Agreement and the other Loan Documents remain the legal and binding obligations of Borrower, free of any claim, defense, or 
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offset. All warranties and representations contained in the Agreement and the other Loan Documents are hereby reconfirmed as of the date hereof. All collateral previously provided to secure the Agreement and/or Note continues as security, and all guaranties guaranteeing obligations under the Loan Documents remain in full force and effect. This is an amendment, not a novation.

No Waiver of Defaults. This Amendment will not be construed as or be deemed to be a waiver by Lender of existing defaults by Borrower, whether known or undiscovered.

Authorization. The officers signing on behalf of the Borrower represent and warrant that the execution and delivery of this Amendment has been fully authorized by all necessary company action.

Counterparts. The Amendment may be signed in any number of counterparts, each of which will be considered an original, but when taken together will constitute one document.

Further Assurances.  Borrower will promptly correct any defect or error that may be discovered in any Loan Document or in the execution, acknowledgment or recordation of any Loan Document. Promptly upon request by Lender, Borrower will also do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register, any and all deeds, conveyances, mortgages, deeds of trust, trust deeds, assignments, estoppel certificates, financing statements and continuations thereof, notices of assignment, transfers, certificates, assurances and other instruments as Lender may reasonably require from time to time in order: (a) to carry out more effectively the purposes of the Loan Documents; (b) to perfect and maintain the validity, effectiveness and priority of any security interests intended to be created by the Loan Documents; and (c) to better assure, convey, grant, assign, transfer, preserve, protect and confirm unto Lender the rights granted now or hereafter intended to be granted to Lender under any Loan Document or under any other instrument executed in connection with any Loan Document or that Borrower may be or become bound to convey, mortgage or assign to Lender in order to carry out the intention or facilitate the performance of the provisions of any Loan Document.  Borrower will furnish to Lender evidence satisfactory to Lender of every such recording, filing or registration.

Copies; Electronic Records. Borrower acknowledges the receipt of a copy of the Amendment and all other Loan Documents. Lender may, on behalf of Borrower, create a microfilm or optical disk or other electronic image of the Amendment, and any or all of the Loan Documents. Lender may store each such electronic image in its electronic form and then destroy the paper original as part of Lender’s normal business practices, with the electronic image deemed to be an original and of the same legal effect, validity, and enforceability as the paper original. To the extent permitted by law, Borrower and Lender agree that Lender may convert the Note into a “transferable record” or the equivalent thereof as defined in applicable law and that such transferable record will be the authoritative copy of the Note. Lender, on its own behalf, may control and transfer such authoritative copy as permitted by such law.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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SIGNATURE PAGE TO 
SIXTH AMENDMENT TO CREDIT AGREEMENT

BORROWER:

DAKTRONICS, INC.

By /s/ Reece A. Kurtenbach
Reece A. Kurtenbach
Chief Executive Officer

By /s/ Sheila M. Anderson
Sheila M. Anderson
Chief Financial Officer

LENDER:

U.S. BANK NATIONAL ASSOCIATION

By /s/ Marie Fredrickson
Marie Fredrickson
Senior Vice President

7EX-10.1

 Exhibit 10.1 

December 9, 2022 
 Kevin Kennedy 

VIA EMAIL/DOCUSIGN 
 Dear Kevin: 

This letter sets forth the substance of the separation agreement (the “Agreement”) that Quanergy Systems, Inc. (the
“Company”) is offering to you. 
 1.    SEPARATION. You and
the Company have agreed that you will retire as Chief Executive Officer and your employment will terminate, effective December 31, 2022 (the “Separation Date”). Although your employment is ending, you will remain Chair of the
Board of Directors. 
 2.    ACCRUED SALARY AND
PAID TIME OFF. On the Separation Date, the Company will pay you all accrued salary earned through the Separation Date, subject to standard payroll deductions and withholdings, as well
as any accrued and unused PTO/vacation. You are entitled to this payment by law. 

3.    SEPARATION PAYMENT. If you timely sign this
Agreement, allow it to become effective, and comply with your obligations under it, the Company will pay you separation pay in a lump sum equal to $285,000 in recognition of your ongoing service and leadership as Chairman of the Board and for your
valuable continued contributions to the Company in that capacity. The payment will be subject to any applicable deductions and withholdings. You will not be entitled to receive any compensation under the
Non-Employee Director Compensation Policy. If you resign as Chairman of the Board prior to the date that is sixty (60) days following your entry into this Agreement, the Company shall be entitled to
repayment from you in an amount equal to 50% of the separation payment. 
 4.    HEALTH
INSURANCE. To the extent provided by the federal COBRA law or, if applicable, state insurance laws, and by the Company’s current group health insurance policies, you will be eligible to continue
your group health insurance benefits at your own expense following the Separation Date. Later, you may be able to convert to an individual policy through the provider of the Company’s health insurance, if you wish. You will be provided with a
separate notice describing your rights and obligations under COBRA and a form for electing COBRA coverage. 

5.    STOCK OPTIONS. Your equity awards will
continue to vest pursuant to the existing terms and conditions while you remain in service as a member of the Board of Directors. 

6.    OTHER COMPENSATION OR
BENEFITS. You acknowledge that, except as expressly provided in this Agreement, you have not earned and will not receive from the Company any additional compensation (including base salary, bonus,
incentive compensation, or equity), severance, or benefits before or after the Separation Date, with the exception of any vested right 

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you may have under the express terms of a written ERISA-qualified benefit plan (e.g., 401(k) account) or any vested stock options. You further acknowledge and agree that you are not entitled to
any payments or other benefits from the Company under the terms of your offer letter from the Company dated March 14, 2020 or under the terms of the Company’s Retention Plan. 

7.    EXPENSE REIMBURSEMENTS. You agree that, within thirty (30) days
after the Separation Date, you will submit your final documented expense reimbursement statement reflecting all business expenses you incurred through the Separation Date, if any, for which you seek reimbursement. The Company will reimburse you for
these expenses pursuant to its regular business practice. 
 8.    RELEASE OF
CLAIMS. 
 (a)    General Release of Claims. In exchange for the consideration
provided to you under this Agreement to which you would not otherwise be entitled, you hereby generally and completely release the Company, and its affiliated, related, parent and subsidiary entities, and its and their current and former directors,
officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, insurers, affiliates, and assigns from any and all claims, liabilities, demands, causes of action, and obligations, both known and unknown, arising from or in
any way related to events, acts, conduct, or omissions occurring at any time prior to and including the date you sign this Agreement. 

(b)    Scope of Release. This general release includes, but is not limited to: (i) all claims arising
from or in any way related to your employment with the Company or the termination of that employment; (ii) all claims related to your compensation or benefits from the Company, including salary, bonuses, commissions, vacation pay, expense
reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership, equity, or profits interests in the Company; (iii) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good
faith and fair dealing; (iv) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (v) all federal, state, and local statutory claims, including claims for
discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the California Labor Code (as amended), the
California Family Rights Act, the Age Discrimination in Employment Act (“ADEA”) and the California Fair Employment and Housing Act (as amended). You acknowledge that you have been advised, as required by California Government
Code Section 12964.5(b)(4), that you have the right to consult an attorney regarding this Agreement and that you were given a reasonable time period of not less than five business days in which to do so. You further
acknowledge and agree that, in the event you sign this Agreement prior to the end of the reasonable time period provided by the Company, your decision to accept such shortening of time is knowing and voluntary and is not induced by the Company
through fraud, misrepresentation, or a threat to withdraw or alter the offer prior to the expiration of the reasonable time period, or by providing different terms to employees who sign such an agreement prior to the expiration of the time period.

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 (c)    ADEA Release. You acknowledge that you are
knowingly and voluntarily waiving and releasing any rights you have under the ADEA, and that the consideration given for the waiver and releases you have given in this Agreement is in addition to anything of value to which you were already entitled.
You further acknowledge that you have been advised, as required by the ADEA, that: (i) your waiver and release does not apply to any rights or claims arising after the date you sign this Agreement; (ii) you should consult with an attorney
prior to signing this Agreement (although you may choose voluntarily not to do so); (iii) you have twenty-one (21) days to consider this Agreement (although you may choose voluntarily to sign it sooner);
(iv) you have seven (7) days following the date you sign this Agreement to revoke this Agreement (in a written revocation sent to the Company); and (v) this Agreement will not be effective until the date upon which the revocation period
has expired, which will be the eighth day after you sign this Agreement provided that you do not revoke it (the “Effective Date”). 

(d)    Section 1542 Waiver. In giving the release herein, which includes claims which may be unknown to you
at present, you acknowledge that you have read and understand Section 1542 of the California Civil Code, which reads as follows: “A general release does not extend to claims that the creditor or releasing party does not know or suspect
to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.” You hereby expressly waive and relinquish all
rights and benefits under that section and any law of any other jurisdiction of similar effect with respect to your release of claims herein, including but not limited to your release of unknown claims. 

(e)    Exceptions. Notwithstanding the foregoing, you are not releasing the Company hereby from:
(i) any obligation to indemnify you pursuant to the Articles and Bylaws of the Company, any valid fully executed indemnification agreement with the Company, applicable law, or applicable directors and officers liability insurance; (ii) any
claims that cannot be waived by law; or (iii) any claims for breach of this Agreement. 

(f)    Protected Rights. You understand that nothing in this Agreement limits your ability to file a charge
or complaint with the Equal Employment Opportunity Commission, the Department of Labor, the National Labor Relations Board, the Occupational Safety and Health Administration, the California Department of Fair Employment and Housing, the Securities
and Exchange Commission or any other federal, state or local governmental agency or commission (“Government Agencies”). You further understand this Agreement does not limit your ability to communicate with any Government Agencies 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 Company. While this Agreement does not limit your right to receive an
award for information provided to the Securities and Exchange Commission, you understand and agree that, to maximum extent permitted by law, you are otherwise waiving any and all rights you may have to individual relief based on any claims that you
have released and any rights you have waived by signing this Agreement. Nothing in this Agreement prevents you from discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct
that you have reason to believe is unlawful. 

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 9.    RETURN OF
COMPANY PROPERTY. You agree that, by the Separation Date, or earlier if requested by the Company, you will return to the Company all Company documents (and all copies thereof) and other Company
property in your possession or control, including, but not limited to, Company files, notes, drawings, records, plans, forecasts, reports, studies, analyses, proposals, agreements, drafts, financial and operational information, research and
development information, sales and marketing information, customer lists, prospect information, pipeline reports, sales reports, personnel information, specifications, code, software, databases, computer-recorded information, tangible property and
equipment (including, but not limited to, computing and electronic devices, mobile telephones, servers), credit cards, entry cards, identification badges and keys; and any materials of any kind which contain or embody any proprietary or confidential
information of the Company (and all reproductions or embodiments thereof in whole or in part). Notwithstanding the foregoing, you are permitted to retain those Company documents and records that are necessary for your continued Board service. 

10.    CONFIDENTIAL INFORMATION OBLIGATIONS. You
acknowledge and reaffirm your continuing obligations under your Employee Confidential Information and Inventions Assignment Agreement, a copy of which is attached hereto as Exhibit A and incorporated herein by reference. 

11.    
NON-DISPARAGEMENT. You agree not to disparage the Company, its officers, directors, employees, shareholders, parents, subsidiaries, affiliates,
and agents, in any manner likely to be harmful to its or their business, business reputation, or personal reputation; provided that you may respond accurately and fully to any request for information if required by legal process or in connection
with a government investigation. In addition, nothing in this provision or this Agreement is intended to prohibit or restrain you in any manner from making disclosures protected under the whistleblower provisions of federal or state law or
regulation or other applicable law or regulation or as set forth in the section of this Agreement entitled “Protected Rights.” In response to any reference request from a prospective employer, the Company will only confirm your dates of
employment and positions held. 
 12.    NO VOLUNTARY ADVERSE
ACTION. You agree that you will not voluntarily (except in response to legal compulsion or as permitted under the section of this Agreement entitled “Protected Rights”) assist any person in bringing or
pursuing any proposed or pending litigation, arbitration, administrative claim or other formal proceeding against the Company, its parent or subsidiary entities, affiliates, officers, directors, employees or agents. 

13.    COOPERATION. You agree to cooperate fully with the
Company in connection with its actual or contemplated defense, prosecution, or investigation of any claims or demands by or against third parties, or other matters arising from events, acts, or failures to act that occurred during the period of your
employment by the Company. Such cooperation includes, without limitation, making yourself available to the Company upon reasonable notice, without subpoena, to provide complete, truthful and accurate information in witness interviews, depositions,
and trial testimony. The Company will reimburse you for reasonable out-of-pocket expenses you incur in connection with any such cooperation (excluding foregone wages)
and will make reasonable efforts to accommodate your scheduling needs. 

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 14.    NO
ADMISSIONS. You understand and agree that the promises and payments in consideration of this Agreement shall not be construed to be an admission of any liability or obligation by the Company to you or
to any other person, and that the Company makes no such admission. 

15.    REPRESENTATIONS. You hereby represent that you have: been
paid all compensation owed and for all hours worked; received all leave and leave benefits and protections for which you are eligible pursuant to the Family and Medical Leave Act, the California Family Rights Act, or otherwise; and not suffered any on-the-job injury for which you have not already filed a workers’ compensation claim. 

16.    DISPUTE RESOLUTION. You and the Company agree that any and all
disputes, claims, or controversies of any nature whatsoever arising from, or relating to, this Agreement or its interpretation, enforcement, breach, performance or execution, your employment or the termination of such employment (including, but not
limited to, any statutory claims) (collectively, “Claims”, each a “Claim”), shall be resolved, pursuant to the Federal Arbitration Act, 9 U.S.C. §1-16, and to the fullest
extent permitted by law, by final, binding and confidential arbitration in a mutually acceptable location conducted before a single neutral arbitrator by JAMS, Inc. (“JAMS”) or its successor, under the then applicable JAMS
Arbitration Rules and Procedures for Employment Disputes (available at http://www.jamsadr.com/rules-employment-arbitration/). By agreeing to this arbitration procedure, both you and the Company waive the right to have any Claim resolved
through a trial by jury or judge or an administrative proceeding. You will have the right to be represented by legal counsel at any arbitration proceeding, at your own expense. This paragraph shall not apply to any action or claim that cannot be
subject to mandatory arbitration as a matter of law, including, without limitation, claims brought pursuant to the California Private Attorneys General Act of 2004, as amended, to the extent such claims are not permitted by applicable law to be
submitted to mandatory arbitration and the applicable law(s) are not preempted by the Federal Arbitration Act or otherwise invalid (collectively, the “Excluded Claims”). In the event you intend to bring multiple claims, including
one of the Excluded Claims listed above, the Excluded Claims may be publicly filed with a court, while any other claims will remain subject to mandatory arbitration. The arbitrator shall have sole authority for determining if a Claim is subject to
arbitration, and any other procedural questions related to the dispute and bearing on the final disposition. In addition, the arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of the dispute and to award
such relief as would otherwise be available under applicable law in a court proceeding; and (b) issue a written statement signed by the arbitrator regarding the disposition of each claim and the relief, if any, awarded as to each claim, the
reasons for the award, and the arbitrator’s essential findings and conclusions on which the award is based. The Company shall pay all JAMS arbitration fees. Nothing in this Agreement shall prevent you or the Company from obtaining injunctive
relief in court to prevent irreparable harm pending the conclusion of any arbitration. Any awards or orders in such arbitrations may be entered and enforced as judgments in the federal and state courts of any competent jurisdiction. 

17.    MISCELLANEOUS. This Agreement, including Exhibit A, constitutes the complete, final
and exclusive embodiment of the entire agreement between you and the Company with 

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regard to its subject matter. It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other such
promises, warranties or representations. This Agreement may not be modified or amended except in a writing signed by both you and a duly authorized officer of the Company. This Agreement will bind the heirs, personal representatives, successors and
assigns of both you and the Company, and inure to the benefit of both you and the Company, their heirs, successors and assigns. If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this determination
will not affect any other provision of this Agreement and the provision in question will be modified by the court so as to be rendered enforceable to the fullest extent permitted by law, consistent with the intent of the parties. This Agreement will
be deemed to have been entered into and will be construed and enforced in accordance with the laws of the State of California without regard to conflict of laws principles. Any ambiguity in this Agreement shall not be construed against either party
as the drafter. Any waiver of a breach of this Agreement shall be in writing and shall not be deemed to be a waiver of any successive breach. This Agreement may be executed in counterparts and electronic or facsimile signatures will suffice as
original signatures. 
 If this Agreement is acceptable to you, please sign below and return the original to me. You have
twenty-one (21) calendar days to decide whether to accept this Agreement, and the Company’s offer contained herein will automatically expire if you do not sign and return it within that timeframe.

 Sincerely, 
  

			
	By:	 	 /s/ Patrick Archambault

	 	 	Patrick Archambault
	 	 	Chief Financial Officer

 I HAVE READ, UNDERSTAND AND AGREE
FULLY TO THE FOREGOING AGREEMENT: 
  

	
	 /s/ Kevin Kennedy

	Kevin Kennedy
	
	 December 9, 2022

	Date

 EXHIBIT A 

EMPLOYEE CONFIDENTIAL INFORMATION 

AND INVENTIONS ASSIGNMENT AGREEMENT

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