Document:

Exhibit 10.1

		

			[Employee – Performance Share Units]

		

		
			NOTICE OF PERFORMANCE SHARE UNIT AWARD GRANT UNDER THE 
		

		
			CENTURY COMMUNITIES, INC. AMENDED AND RESTATED 
		

		
			2017 OMNIBUS INCENTIVE PLAN
		

		
			﻿
		

		
			Century Communities, Inc., a Delaware corporation (the “Company”), pursuant to the Century Communities, Inc. Amended and Restated 2017 Omnibus Incentive Plan (as may be amended from time to time, the “Plan”), hereby grants to the individual named below (the “Participant”) the number of Performance Share Units, a form of Restricted Stock Unit (as defined in the Plan), set forth below (the “Performance Share Units”). The Performance Share Units are subject to all of the terms and conditions set forth herein, in the Performance Share Units Award Agreement attached hereto (the “Agreement”), and in the Plan, all of which are incorporated herein in their entirety. Capitalized terms not otherwise defined herein will have the meaning set forth in the Plan. This Performance Share Unit grant has been made as of the grant date indicated below, which shall be referred to as the “Grant Date”.  
		

		
			Grant ID:[Insert Grant ID number]
		

		
			Participant:[____________________]
		

		
			Grant Date:  [______________]
		

		
			Threshold Potential Payout:[_________] Shares, subject to adjustment as provided in the Plan.
		

		
			Target Potential Payout:  [_________] Shares, subject to adjustment as provided in the Plan.
		

		
			Above Target Potential Payout:[_________] Shares, subject to adjustment as provided in the Plan.
		

		
			Maximum Potential Payout:[_________] Shares, subject to adjustment as provided in the Plan.
		

		
			Performance PeriodJanuary 1, 20[__] – December 31, 20[__]
		

		
			Performance GoalsSee Exhibit A attached hereto
		

		
			*     *     *    *    * 
		

		
			This Performance Share Unit Award grant will be null and void unless the Participant accepts the grant by executing it in the space provided below and returning such original execution copy to the Company or otherwise indicating affirmative acceptance of the Performance Share Unit Award grant electronically pursuant to procedures established by the Company and/or its third party administrator. The undersigned Participant acknowledges that he or she has received a copy of this Notice of Performance Share Unit Grant (this “Notice”), the Agreement, the Plan and the Plan Prospectus. As an express condition to the grant of the Performance Share Units hereunder, the Participant agrees to be bound by the terms of this Notice, the Agreement and the Plan. The Participant has read carefully and in its entirety the Agreement and specifically the acknowledgements in Section 9.9 thereof. This Notice, the Agreement and the Plan set forth the entire agreement and understanding of the Company and the Participant with respect to the grant, vesting and administration of this Performance Share Unit award and supersede all prior agreements, arrangements, plans and understandings. 
		

		

		

		 

 

		
		

		
			This Notice (which includes the attached Agreement) may be executed in two counterparts each of which will be deemed an original and both of which together will constitute one and the same instrument.
		

		
			﻿
		

		
			*     *     *    *    * 
		

		
			﻿
		

		
			CENTURY COMMUNITIES, INC.Participant
		

		
			﻿
		

		
			________________________________________________________________
By:    
Title: Co-Chief Executive Officer
		

		
			PERFORMANCE SHARE UNIT AWARD AGREEMENT
		

		
			﻿
		

		
			Pursuant to the Notice of Performance Share Unit Grant (the “Grant Notice”) to which this Performance Share Unit Award Agreement (this “Agreement”) is attached and which Grant Notice is included in and part of this Agreement, and subject to the terms of this Agreement and the Century Communities, Inc. Amended and Restated 2017 Omnibus Incentive Plan (as may be amended from time to time, the “Plan”), Century Communities, Inc., a Delaware corporation (the “Company”), and the Participant named in the Grant Notice (the “Participant”) agree as follows.  
		

			
	
			
				 1.
			Incorporation of Plan; Definitions. The provisions of the Plan are hereby incorporated herein by reference. Except as otherwise expressly set forth herein, this Agreement will be construed in accordance with the provisions of the Plan and any capitalized terms not otherwise defined in this Agreement or in the Grant Notice will have the same meanings as set forth in the Plan. The provisions of this Agreement will be interpreted as to be consistent with the Plan and any ambiguities in this Agreement will be interpreted by reference to the Plan.  In the event that any provision of this Agreement is not authorized by or is inconsistent with the terms of the Plan, the terms of the Plan will prevail. The Committee will have final authority to reasonably interpret and construe the Plan and this Agreement and to make any and all determinations thereunder, and its decision will be binding and conclusive upon the Participant and his or her legal representatives in respect of any questions arising under the Plan or this Agreement. A copy of the Plan and the Plan Prospectus have been delivered to the Participant together with this Agreement.

			
	
			
				 2.
			Grant of Performance Share Units.  The Company hereby grants to the Participant Performance Share Units, as set forth in the Grant Notice and this Agreement,  subject to adjustment as provided in the Plan, and each of which, once vested and earned pursuant to this Agreement, will be settled in one (1) share of Common Stock, at the time and subject to the terms, conditions and restrictions set forth below and in the Plan.  Reference in this Agreement to the Performance Share Units will be deemed to include the Dividend Equivalents with respect to such Performance Share Units as set forth in Section 4.3 of this Agreement.

			
	
			
				 3.
			Performance Vesting; Determination of Amount of Performance Share Units.

			
	
			
				 3.1
			Performance Vesting; Performance Measures and Performance Goals.  Except as otherwise provided in this Section 3, Section 6 of this Agreement, the Plan or an Individual Agreement, the Performance Share Units will vest and the number of shares of Common Stock payable in settlement of such vested Performance Share Units shall be determined as of the end of the Performance Period (the “Vesting Date”) by reference to the Performance Goal achieved during the Performance Period in accordance with the table set forth in Exhibit A to this Agreement and may range from 0% to [250% for Co-CEOs/200% for CFO] of the Participant’s Target Potential Payout as set forth in the Grant Notice.  The Performance Measures and the Performance Goals to be achieved on a cumulative basis over the Performance Period and their respective weightings and their respective Threshold, Target, Above Target and Maximum levels of performance, are described in the table set forth in Exhibit A to this Agreement.

			
	
			
				 1.1
			Determination of Amount of Earned Performance Share Units.  The number of Performance Share Units to be settled in shares of Common Stock (the “Earned Performance Share Units”) will be determined by prorated,  straight-line interpolation between Threshold and Target, Target and Above Target, or Above Target and Maximum if the level of the performance attained for the Performance Goal for the Performance Measure for the Performance Period falls between such levels, as specified in the table set forth in Exhibit A to this Agreement, and the determination of the aggregate Earned Performance Share Units will be rounded up to the nearest whole number of Performance Share Units.  The Earned Performance Share Units will be settled in whole shares of Common Stock as provided in Section 4 of this Agreement.
		

		 

		

			2

		

 

			

			
	
			
				 1.2
			Requirement to Meet Threshold Level of Performance.  Except as otherwise provided in Section 17 of the Plan or an Individual Agreement, and to the extent not previously forfeited or terminated pursuant to Section 6 of this Agreement, the Performance Share Units shall be immediately forfeited and terminated as of the end of the Performance Period if the Performance Goal for the Performance Measure does not meet the Threshold as described in the table set forth in Exhibit A to this Agreement and the Committee reasonably determines that Section 3.4 or 6  of this Agreement does not apply.

			
	
			
				 1.3
			Adjustments for Certain Pre-Determined Events. In determining whether and to what extent each Performance Goal has been achieved, the Committee shall include or exclude from the calculation of the Performance Goal, applying U.S. generally accepted accounting principles, each of the events identified on Exhibit A that occurs during the Performance Period.

			
	
			
				 4.
			Settlement; Issuance of Common Stock.

			
	
			
				 4.1
			Settlement; Amount of Payment.  Except as otherwise provided in Section 9 of the Plan, in the event of the achievement of at least the Threshold level of performance with respect to the Performance Goal described in the table set forth in Exhibit A to this Agreement during the Performance Period, which achievement must be certified in writing by the Committee as soon as practicable following the expiration of the Performance Period, the Participant shall vest in the Earned Performance Share Units up to the Maximum Potential Payout as determined pursuant to Section 3 and Exhibit A to this Agreement.  If the Performance Goal is not achieved at the Threshold level of performance or above, after adjustments under Section 3.4 of this Agreement or Section 9 of the Plan, if applicable, and the Committee determines that Section 3.4 or 6 of this Agreement does not apply, then the Performance Share Units shall be forfeited and canceled and the Participant shall not be entitled to receive any shares in settlement thereof. The Participant may not be entitled to receive a greater number of Performance Share Units than the Maximum Potential Payout, subject to adjustment as provided in the Plan. In the event the Performance Share Units are forfeited or cancelled for any reason pursuant to Section 3, 4 or 6 of this Agreement or otherwise, no shares of Common Stock shall be issued or payment made in settlement of the Performance Share Units.

			
	
			
				 4.2
			Timing and Manner of Settlement.  Earned Performance Share Units will be converted to whole shares of Common Stock (no fractional shares will be issued) which the Company will issue and deliver to the Participant (either by delivering one or more certificates for such shares or by entering such shares in book entry form in the name of the Participant or depositing such shares for the Participant’s benefit with any broker with which the Participant has an account relationship or the Company has engaged to provide such services under the Plan, as determined by the Company in its sole discretion) within sixty  (60) days following the Vesting Date, except to the extent that shares of Common Stock are withheld to pay tax withholding obligations pursuant to Section 8 of this Agreement or the Participant has properly elected to defer income that may be attributable to such Performance Share Units under a Company deferred compensation plan or arrangement. 

			
	
			
				 4.3
			Dividend Equivalents.  The Performance Share Units are being granted with Dividend Equivalents. On the date of payment under Section 4.2, in addition to the shares of Common Stock issuable under Section 4.1, the Company will issue and deliver to the Participant that number of additional whole shares of Common Stock (no fractional shares will be issued so the number of shares of Common Stock will be rounded down to the nearest whole share) equal to the Dividend Equivalent amount determined under this Section 4.3. In calculating the Dividend Equivalent amount, the Company shall determine the number of shares of Common Stock that would have been payable to the Participant if the total number of Performance Share Units earned under Section 4.1 had been outstanding as shares of Common Stock from the beginning of the Performance Period until the payment date and in lieu of any regular cash dividends, on the dividend payment date of each regular cash dividend otherwise payable on such shares (the “Dividend Date”), the Company had issued Participant a number of additional shares of Common Stock with a Dividend Date Market Value equal to: (i) the per-share dollar amount of the declared dividend multiplied by (ii) the sum of the number of Performance Share Units earned under Section 4.1 above and the number of shares of Common Stock deemed issued hereunder as Dividend Equivalents as of each declared record date for the dividends declared prior to the Dividend Date. For purposes of calculating the “Dividend Date Market Value” in the preceding sentence, the Company shall use the closing price of a share of the Company’s Common Stock at the end of the regular trading session, as reported by The New York Stock Exchange on the Dividend Date.

			
	
			
				 4.4
			Section 409A.  If any shares of Common Stock shall be issuable with respect to the Performance Share Units as a result of the Participant’s “separation from service” at such time as the Participant is a “specified employee” within the meaning of Section 409A of the Code, then no shares shall be issued, except as permitted under Section 409A of the Code, prior to the earlier of (i) the date immediately after the end of the six-month period following the Participant’s “separation from service”, or (ii) the Participant’s death. Payment of amounts under this Agreement (by issuance of shares of Common Stock or otherwise) is intended to comply with the requirements of Section 409A of the Code and this Agreement shall in all respects be administered and construed to give effect to such intent. The Committee in its sole discretion may accelerate or delay the distribution of any payment under this Agreement to the extent allowed under Section 409A of the Code. 

			
	
			
				 5.
			Holding Period.  Except as provided under Section 6.3, any net shares of Common Stock received by the Participant in connection with the settlement of the Earned Performance Share Units must be held by the Participant for at least twelve (12) months after such settlement.  For purposes of this Section 5, “net shares” means those shares of Common Stock that remain after shares of Common Stock are sold or netted to pay any required withholding taxes associated with the settlement of the Earned Performance Share Units.

			
	
			
				 6.
			Employment or Service Requirement.

			
	
			
				 6.1
			Service Condition.  Except as otherwise provided in Section 3 of this Agreement, this Section 6,  this Agreement, an Individual Agreement or the Plan, the Performance Share Units will vest on the Vesting Date, provided the Participant remains continuously employed by or provides services to the Company or any Subsidiary through the Vesting Date.

			
	
			
				 6.2
			Change in Control.  Except as otherwise provided in an Individual Agreement between the Company and the Participant, upon a Change in Control, the Performance Share Units will be subject to Section 17 of the Plan.

			
	
			
				 6.3
			Effect of Termination of Employment or Other Service.  Except as otherwise provided in Section 17 of the Plan or an Individual Agreement between the Company and the Participant, in the event the Participant’s employment or other service with the Company and all Subsidiaries is terminated for any reason, including for Cause, by reason of death, Disability or Retirement of the Participant, all outstanding but unvested Performance Share Units held by the Participant as of the effective date of such termination will be terminated and forfeited. Vested shares of Common Stock issued in settlement of the vested Performance Share Units will remain subject to the holding period under Section 5, provided, if Termination of Employment is by reason of death or disability of the Participant, or by the Company within twenty four (24) months following a Change in Control, the remaining term of the holding period under Section 5, if any, will lapse.

		
			6.4Effect of Actions Constituting Cause or Adverse Action; Forfeiture or Clawback. The Performance Share Units are subject to the forfeiture provisions set forth in Section 15.5 of the Plan, including those applicable if the Participant is determined by the Committee to have taken any action that would constitute Cause or an Adverse Action and any forfeiture or clawback requirement under Applicable Law or any policy adopted from time to time by the Company.
		

			
	
			
				 7.
			Rights of Participant.

			
	
			
				 7.1
			Employment or Other Service.  Nothing in this Agreement will interfere with or limit in any way the right of the Company or any Subsidiary to terminate the employment or service of the Participant at any time, nor confer upon the Participant any right to continue employment with the Company or any Subsidiary.

			
	
			
				 1.4
			Rights as a Stockholder.  The Participant will have no rights as a stockholder with respect to shares of Common Stock covered by the Performance Share Units unless and until the Participant becomes the holder of record of such shares of Common Stock issued in settlement of the Performance Share Units. By way of example and without limitation, the Participant will not be entitled to vote any of the shares of Common Stock covered by the Performance Share Units, or otherwise exercise any incidents of ownership with respect to such shares until such shares have been issued pursuant to Section 4 of this Agreement; provided,  however, that the Participant will be entitled to Dividend Equivalents pursuant to Section 4.3 of this Agreement.

			
	
			
				 7.2
			Restrictions on Transfer.  Except pursuant to testamentary will or the laws of descent and distribution or as otherwise expressly permitted by the Plan, no right or interest of the Participant in the Performance Share Units prior to the vesting and settlement of the Performance Share Units will be assignable or transferable, or subjected to any lien, during the lifetime of the Participant, either voluntarily or involuntarily, directly or indirectly, by operation of law or otherwise.  Any attempt to transfer, assign or encumber the Performance Share Units other than in accordance with this Agreement and the Plan will be null and void and the Performance Share Units for which the Restrictions have not lapsed will be forfeited and immediately returned to the Company.

			
	
			
				 8.
			Withholding Taxes. The Company is entitled to (a) withhold and deduct from future wages of the Participant (or from other amounts that may be due and owing to the Participant from the Company or a Subsidiary), or make other arrangements for the collection of, all amounts the Company reasonably determines are legally required to satisfy any and all federal, foreign, state and local withholding and employment related tax requirements attributable to the Performance Share Units, or (b) require the Participant promptly to remit the amount of such withholding to the Company before taking any action, including issuing any shares of Common Stock, with respect to the Performance Share Units.  The Committee may, in its sole discretion and upon terms and conditions established by the Committee, permit or require the Participant to satisfy, in whole or in part, any withholding or employment related tax obligation in connection with the settlement of the Performance Share Units by withholding shares of Common Stock issuable upon settlement of the Performance Share Units. When withholding shares of Common Stock for taxes is effected under this Agreement and the Plan, it will be withheld only up to the minimum amount the Company reasonably determines is necessary to satisfy any tax withholding obligation in the Participant’s applicable tax jurisdiction.

			
	
			
				 9.
			Miscellaneous.

			
	
			
				 9.1
			Governing Law; Mandatory Jurisdiction.  The validity, construction, interpretation, administration and effect of this Agreement and any rules, regulations and actions relating to this Agreement will be governed by and construed exclusively in accordance with the laws of the State of Delaware, notwithstanding the conflicts of laws principles of any jurisdictions.  The Company and the Participant hereby irrevocably submit to the jurisdiction and venue of the Federal or State courts of the States of Colorado and Delaware relative to any and all disputes, issues and/or claims that may arise out of or relate to the Plan or this Agreement.  The Company and the Participant further agree that any and all such disputes, issues and/or claims arising out of or related to the Plan or this Agreement will be brought and decided in the Federal or State courts of the States of Colorado or Delaware, with such jurisdiction and venue selected by and at the sole discretion of the Company.

			
	
			
				 9.2
			Interpretation.  Any dispute regarding the interpretation of this Agreement will be submitted by the Participant or by the Company forthwith to the Committee for review.  The resolution of such a dispute by the Committee will be final and binding on all parties.

			
	
			
				 9.3
			Successors and Assigns.  The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement will inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer herein set forth, this Agreement will be binding upon the Participant and his or her heirs, executors, administrators, successors and assigns.

			
	
			
				 9.4
			Notices.  All notices, requests or other communications provided for in this Agreement must be made, if to the Company, to Century Communities, Inc., Attn:  Chief Financial Officer, 8390 E. Crescent Parkway, Suite 650, Greenwood Village, Colorado 80111, and if to the Participant, to the last known mailing address of the Participant contained in the records of the Company.  All notices, requests or other communications provided for in this Agreement must be made in writing either (a) by personal delivery, (b) by facsimile or electronic mail with confirmation of receipt, (c) by mailing in the United States mails or (d) by express courier service.  The notice, request or other communication will be deemed to be received upon personal delivery, upon confirmation of receipt of facsimile or electronic mail transmission or upon receipt by the party entitled thereto if by United States mail or express courier service; provided,  however, that if a notice, request or other communication sent to the Company is not received during regular business hours, it will be deemed to be received on the next succeeding business day of the Company.

			
	
			
				 9.5
			Electronic Delivery and Acceptance. The Company may, in its sole discretion, deliver any documents related to the Performance Share Units by electronic means or request the Participant’s consent to participate in the Plan by electronic means. The Participant hereby consents to receive all applicable documentation by electronic delivery and to participate in the Plan through an on-line system established and maintained by the Company or a third party vendor designated by the Company.

			
	
			
				 9.6
			Other Laws.  The Company will have the right to refuse to issue to you or transfer any shares of Common Stock subject to this Performance Share Units if the Company acting in its absolute discretion determines that the issuance or transfer of such shares might violate any Applicable Law.

			
	
			
				 9.7
			Investment Representation.  The Participant hereby represents and covenants that (a) any share of Common Stock acquired upon the settlement of the Performance Share Units will be acquired for investment and not with a view to the distribution thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”), unless such acquisition has been registered under the Securities Act and any applicable state securities laws; (b) any subsequent sale of any such shares will be made either pursuant to an effective registration statement under the Securities Act and any applicable state securities laws, or pursuant to an exemption from registration under the Securities Act and such state securities laws; and (c) if requested by the Company, the Participant will submit a written statement, in form satisfactory to the Company, to the effect that such representation (x) is true and correct as of the date of issuance of any shares of Common Stock hereunder or (y) is true and correct as of the date of any sale of any such share, as applicable.  As a further condition precedent to the delivery to the Participant of any shares of Common Stock subject to the Performance Share Units, the Participant will comply with all regulations and requirements of any regulatory authority having control of or supervision over the issuance or delivery of the shares and, in connection therewith, will execute any documents which the Company will in its sole discretion deem necessary or advisable.

			
	
			
				 9.8
			Non-Negotiable Terms. The terms of this Agreement and the Performance Share Units are not negotiable, but the Participant may refuse to accept the Performance Share Units by notifying the Company’s Chief Financial Officer or Vice President, Human Resources in writing within thirty (30) day after the Grant Date set forth in the Grant Notice.

			
	
			
				 9.9
			Acknowledgement by the Participant. In accepting the Performance Share Units, the Participant hereby acknowledges that:

			
	
			
				 (a)
			The Plan is established voluntarily by the Company, it is discretionary in nature, and it may be modified, amended, suspended or terminated by the Company at any time, unless otherwise provided in the Plan.

			
	
			
				 (b)
			The grant of the Performance Share Units is voluntary and occasional and does not create any contractual or other right to receive future Performance Share Units, or benefits in lieu of Performance Share Units, even if Performance Share Units have been granted repeatedly in the past.

			
	
			
				 (c)
			All decisions with respect to future Performance Share Unit grants, if any, will be at the sole discretion of the Company.

			
	
			
				 (d)
			The Participant is voluntarily participating in the Plan.

			
	
			
				 (e)
			The grant of Performance Share Units is not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, end of service payments, bonuses, long-service pension or retirement benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company or any Subsidiary.

			
	
			
				 (f)
			The Performance Share Units or this Agreement will not be interpreted to form an employment contract with the Company or any Subsidiary.

			
	
			
				 (g)
			The future value of the shares of Common Stock subject to the Performance Share Units is unknown and cannot be predicted with certainty and if the Performance Share Units vest and the shares of Common Stock become issuable in accordance with the terms of this Agreement, the value of those shares of Common Stock may increase or decrease.

			
	
			
				 (h)
			In consideration of the grant of the Performance Share Units, no claim or entitlement to compensation or damages shall arise from termination of the Performance Share Units or diminution in value of the Performance Share Units or shares of Common Stock acquired upon settlement of the Performance Share Units resulting from termination of employment by the Company (for any reason whatsoever and whether or not in breach of applicable labor laws) and the Participant hereby irrevocably releases the Company and its Subsidiaries from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by acceptance of the Performance Share Units, the Participant shall be deemed irrevocably to have waived his or her entitlement to pursue such claim.

			
	
			
				 (i)
			Except as otherwise provided in an Individual Agreement, in the event of termination of the Participant’s employment with the Company (whether or not in breach of local labor laws), the Participant’s right to receive the Performance Share Units and vest in the Performance Share Units under the Plan, if any, will terminate effective as of the date of termination of his or her active employment as determined in the sole discretion of the Committee and will not be extended by any notice of termination of employment or severance period provided to the Participant by contract or practice of the Company or any Subsidiary or mandated under local law and the Committee will have the sole discretion to determine the date of termination of the Participant’s active employment for purposes of the Performance Share Units.

			
	
			
				 (j)
			Neither the Company nor any Subsidiary is providing any tax, legal or financial advice, nor is the Company or any Subsidiary making any recommendations regarding the Participant’s participation in the Plan, acceptance of the Performance Share Units, acquisition of shares of Common Stock upon settlement of the Performance Share Units or any sale of such shares.

			
	
			
				 (k)
			The Participant has been advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.

			
	
			
				 (l)
			The Participant hereby agrees to accept electronic delivery of copies of any future amendments or supplements to the Prospectus or any future Prospectuses relating the Plan and copies of all reports, proxy statements and other communications distributed to the Company’s security holders generally by email directed to the Participant’s Company email address.

		
			﻿
		

		
			*     *     *    *    * 
		

		
			 
		

		
			Exhibit A
		

		
			﻿
		

		
			Performance Goals for 1/1/20[__] – 12/31/20[__] Performance Period
		

		
			﻿
		

		
			﻿
		

			
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						Performance Goal:  
Adjusted Pre-Tax Income

					
					
						Performance Share Units

				
	
					
						Threshold

					
					
						 

					
					
						 

				
	
					
						Target

					
					
						 

					
					
						 

				
	
					
						Above Target

					
					
						 

					
					
						 

				
	
					
						Maximum

					
					
						 

					
					
						 

				

		
			﻿
		

		
			Adjusted Pre-Tax Income excludes executive officer bonuses and one-time items (e.g., acquisition expenses, purchase price accounting adjustments, amortization of acquisition related intangibles, impairments, abandonments, discontinued operations, debt extinguishments, severance costs, etc.).
		

		
			﻿
		

		
			132991957.3
		

		
			﻿
		

		 

		

			Exhibit A-3Exhibit 10.1

 

 

[***] = Certain information contained
in this document, marked by brackets, has been omitted because it is both not material and would be competitively harmful if publicly
disclosed.

 

GROM
SOCIAL ENTERPRISES, INC.

 

EXECUTIVE SEPARATION
AGREEMENT

 

THIS EXECUTIVE
SEPARATION AGREEMENT (this “Agreement”) is entered into as of the date indicated on the signature page hereto (the
“Effective Date”) by and between Grom Social Enterprises, Inc., a Florida corporation, and Grom Social, Inc. (collectively,
the “Company”) and Melvin Leiner, an individual (“Executive” and together with the Company, the
“Parties” and each, a “Party”).

 

WHEREAS,
Executive is currently employed by the Company as its Executive Vice President and Chief Operating Officer pursuant to the terms of that
certain Employment Agreement by and between the Company and Executive, dated June 1, 2016 (the Employment Agreement”); and

 

WHEREAS, Executive serves as
the Vice-Chairman of the Company’s Board of Directors (the “Board”); and

 

WHEREAS,
Executive and the Company have come to a mutual agreement regarding the Executive’s and the Company’s desire for Executive
to leave his positions as Executive Vice President and Chief Operating Officer, as well as his resignation as Vice-Chairman of the Board
(the “Separation”).

 

NOW THEREFORE,
the Parties, who have had the opportunity to receive independent legal advice in this matter, in consideration of the mutual covenants
and agreements set forth hereinafter, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the Parties, intending to be legally bound, hereby agree as follows:

 

1.                  Executive's
Separation.

 

(a)         Executive’s employment with the Company and any subsidiaries and affiliated entities will be irrevocably terminated on April
22, 2022 (the “Separation Date”). As of the Separation Date, Executive shall no longer be an officer, employee or director
of the Company, or an officer, employee, or member of the board of directors of any subsidiary or affiliated entity of the Company, and
Executive agrees he shall execute any and all documents necessary or advisable, as requested by the Company, to effect Executive’s
Separation as an officer, employee of the Company, or an officer, employee, or member of the board of directors of any subsidiary or affiliated
entity of the Company. The Company agrees that Executive shall have the opportunity to consult with his own counsel prior to executing
any documents referenced in this paragraph.

 

(b)        Executive shall take any and all actions as reasonably requested by the Company in order to immediately and efficiently effect
the Separation contemplated hereby, including, but not limited to, returning to the Company any and all files, records, credit cards,
keys, equipment, and any and all other Company property or documents maintained by Executive, by no later than the Separation Date (subject
to Section 4 hereof). This includes, but is not limited to,

(i) the transfer of any domain
names, passwords and data required for Company to have a working and secure IT system, (ii) the return of any and all Company documents
and files that are in Executive’s personal possession, and (iii) providing the Company with the code to the Company’s safe.
Executive shall, on and after the Effective Date, continue to cooperate with the Company in providing any additional documents and information
that the Company reasonably requests in connection with the Company’s ongoing business activities.

 

 

    
	 	 1	 

 

     

    

 

 

 

2.                 
Consideration.In consideration of Executive's execution of this Agreement, the Company agrees to the following:

 

		(i)	Executive will be paid his current salary at the annual rate of $315,000.00 per
year or $26,250.00 per month until January 13, 2023 (i.e., a total of $236,250.00) in accordance with the Company’s current payroll
practices and standards, including the selected deductions and withholdings, including all W-2 tax withholdings. The Company shall also
pay the Executive a retroactive salary adjustment for three months of $3,750.00 to give effect to his base salary increase of 5% effective
on January 1, 2022 pursuant to Section 3.2 of the Employment Agreement in accordance with the Company’s current payroll practices
and standards as set forth above. In the event that the Company fails to make a payment when due, the Executive shall have the right,
upon 5 business days written notice to the Company, to accelerate the remainder of the amount due to Executive under this Section 2(i)
as of the date of such missed payment; provided, however, that such acceleration right shall not apply in the event a payment
is not made timely due to an act of god or cyber-terrorism event.

 

		(ii)	Executive will maintain any vision and dental benefits directly sponsored and paid
for by the Company through January 13, 2023 to mitigate any gap in Executive’s health plan coverage to ensure that the Executive
has no lapse in coverage.

 

		(iii)	Executive shall retain all stock and options currently held as of the Separation
Date that previously vested; provided, however, that all such stock and options shall remain subject to any lock-up agreements
for such applicable time period specified thereby. The Company further agrees to cause its counsel to issue an opinion letter to remove
hard stop transfer restrictions and any other restrictions for all stock and options set forth above and that such opinion letter shall
be held escrow and delivered to the Executive after the applicable time period has been satisfied.

 

		(iv)	The Company and Executive will cooperate in the preparation of any public disclosure
by the Company related to the existence or the terms and conditions of the Employment Agreement, or the termination of the Employment
Agreement in connection with the Separation, the content of which shall be subject to the review and comment of Executive, which shall
not be unreasonably withheld, conditioned or delayed. In no event shall Executive’s rights under this subsection prevent the Company
from fulfilling its obligations under applicable securities laws and regulations. [***]

 

		(v)	The Company will allow Executive to maintain possession of his laptop as property.

 

		(vi)	The Company agrees to maintain director and officer liability insurance tail coverage
for the Executive at its sole cost and expense until at least January 22, 2023.

 

		(vii)	The Company agrees to pay for any and all charges it placed on the Executive’s
American Express Platinum Card ending in 4007 and that it will transfer all recurring charges on behalf of the Company to a different
credit card. Once the Company confirms that the recurring charges have been transferred and the balance has been paid in full online,
the Executive will remove the name Grom Social, Inc. for the American Express Account and remove Darren M. Marks as an additional cardholder
on the American Express Account.

 

 

 

    
	 	 2	 

 

     

    

 

It is expressly
acknowledged and agreed that the consideration provided in this Section 2 shall constitute the full consideration to be paid in connection
with this Agreement, the Employment Agreement or any other agreement, document, written or verbal understanding or otherwise between the
Company and Executive. It is further understood that the amounts being paid are solely for Executive’s performance of his roles
as the Company’s Executive Vice President and Chief Operating Officer, as well as the Vice-Chairman of the Board. No additional
consideration (including, but not limited to, cash, common or preferred stock or and equity-linked securities for consideration) whatsoever
shall be owing by the Company or any subsidiaries or affiliated entities of the Company to Executive by virtue of severance, salary, credit
earned for vacation, or any other reason. This Agreement is a full and complete settlement of any and all amounts claimed to be due and
owing by the Company and any subsidiaries or affiliated entities of the Company to Executive. The Company shall promptly provide Executive,
via U.S. mail to 1375 Glenwick Drive, Windermere, FL 34786, with all payroll and tax documents related to the consideration set forth
in this Section, including, but not limited to, W-2s, 1099’s and payroll slips for the applicable time periods.

 

3.                   Representations. Executive and the Company make the following representations, each of which is an important consideration
to the other party's willingness to enter into this Agreement:

 

(i)            Executive
understands and agrees that he has been advised to consult with an attorney of his choice concerning the legal consequences of this Agreement.
Executive hereby acknowledges that prior to signing this Agreement, he had the opportunity to consult, and did consult, with an attorney
of his choosing regarding the effect of each and every provision of this Agreement.

 

(ii)           Executive
acknowledges and agrees that he knowingly and voluntarily entered into this Agreement with complete understanding of all relevant facts,
and that he was neither fraudulently induced nor coerced to enter into this Agreement.

 

(iii)          Each
of the Parties represent and warrant to the other that they have the capacity and authority to enter into this Agreement and be bound
by its terms and that, when executed, this Agreement will constitute a valid and binding agreement of such Party enforceable against
such Party in accordance with its terms.

 

(iv)          The
Company has sufficient reserves for the payment of its obligations under this Agreement, and the Company shall make such payments as
agreed herein.

 

(v)           Executive
has not taken any action or actions prior to the Effective Date that would result in the Company being subject to aggregate monetary
liability in excess of $10,000, of which the Company is not aware.

 

4.                   Covenants
of Confidentiality and Nondisclosure.

 

(a)         Executive acknowledges that, as a result of Executive’s past association with the Company, Executive has access to and holds
confidential or proprietary information of special and material value to the Company. Executive covenants and agrees that he shall not,
directly or indirectly, disclose, reveal, divulge or communicate to any person other than authorized officers, directors, employees, and
professional advisors of the Company, or use or otherwise exploit for Executive’s own benefit or for the benefit of anyone other
than the Company, any Confidential Information (as defined below). Executive shall not have any obligation to keep confidential any Confidential
Information if and to the extent disclosure thereof is specifically required by applicable law; provided, however, that
in the event disclosure is required by applicable law, Executive shall, to the extent reasonably possible and legally permissible, provide
the Company with prompt notice of such requirement prior to making any disclosure so that the Company may seek an appropriate protective
order, at the Company’s sole cost and expense. “Confidential Information” means any confidential information
with respect to the Company, including, without limitation, methods of operation, customer lists, products, prices, fees, costs, technology,
formulas, inventions, trade secrets, know-how, proprietary software, marketing methods, plans, suppliers, competitors, markets or other
specialized information or proprietary matters that is not otherwise in the public domain or available to the public upon request or through
publicly available research and discovery.

 

 

    
	 	 3	 

 

     

    

 

 

(b)         The
negotiations in connection with this Agreement were and are intended by Executive and the Company to be confidential. Neither the Company
nor Executive shall disclose or make any statements regarding such negotiations or the circumstances surrounding this Agreement, or the
terms and conditions hereof; provided, however, that the Parties agree and acknowledge that the Company may, in its sole
discretion, file this Agreement with the U.S. Securities and Exchange Commission and that any legally required disclosure with respect
to information contained in this Agreement shall be permissible.

 

(c)         Executive agrees that he will use his best efforts to do and perform, or cause to be done and performed, all such further acts
and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the Company may reasonably
request in order to carry out the intent and accomplish the purposes of this Agreement, including with respect to agreements, certificates,
instruments and documents that Executive was required to deliver prior to, or in connection with, the closing of the Transaction in his
capacity as an officer or director of the Company or any of its subsidiaries as of such date. However, the Company agrees that Executive
shall have the opportunity to consult with counsel prior to signing any instrument or document or other deliverable contemplated in this
paragraph.

 

 

5.                 
Release of Claims.

 

               (a)
Release by the Executive. Executive agrees that the foregoing consideration represents settlement in full of all outstanding
obligations, unless otherwise provided for herein, owed to Executive by the Company and its current and former officers, directors,
executives, agents, investors, attorneys, shareholders, administrators, affiliates, and subsidiaries, and predecessor and successor
corporations and assigns (collectively, the “Releasees”). Executive, on his own behalf and on behalf of his
respective heirs, family members, executors, agents, and assigns, hereby and forever releases the Releasees from, and agrees not to
sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge, duty, obligation, demand, or
cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Executive
may possess against any of the Releasees arising from any omissions, acts, facts, or damages that have occurred up until and
including the Effective Date of this Agreement, including, without limitation:

 

(i)           any
and all claims relating to or arising from Executive’s employment relationship with the Company and the termination of that relationship,
except the obligations provided for in this Agreement;

 

(ii)          any and all claims relating to, or arising from, Executive’s right to purchase, or actual purchase of shares of stock of
the Company, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable
state corporate law, and securities fraud under any state or federal law, except Executive shall not waive any and all claims relating
to Executive’s possession, ownership, control, or purchase of shares of stock or warrants of the Company that Executive has as of
the Effective Date, or that arise after the Effective Date of this Agreement as Executive will continue to possess, control, and have
ownership in this stock or warrants after the Effective Date of this Agreement;

 

(iii)         any
and all claims for wrongful discharge of employment; termination in violation of public policy; discrimination; harassment; retaliation;
breach of contract, both express and implied; breach of covenant of good faith and fair dealing, both express and implied; promissory
estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or intentional misrepresentation; negligent or
intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander; negligence;
personal injury; assault; battery; invasion of privacy; false imprisonment; conversion; and disability benefits;

 

 

    
	 	 4	 

 

     

    

 

 

(iv)         any and all claims for violation of any federal, state, or municipal statute; the federal or any state constitution; and/or arising
out of any other laws and regulations relating to employment or employment discrimination, including, but not limited to, claims or other
legal forms of action arising from any employment of Executive, any claims of harassment or discrimination (for example, on the basis
of gender, race, age, national origin, handicap or disability or other protected category) under any federal, state or local law, rule
or regulation, including, but not limited to, the Age Discrimination in Employment Act, 29 U.S.C. § 621, et seq., Title VII
of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Civil Rights Act of 1866, Section 1983 of the Civil Rights Act
of 1871, the Age Discrimination In Employment Act, the Equal Pay Act, the Public Employees Relations Act, the Fair Labor Standards Act,
the Family and Medical Leave Act of 1993 (FMLA); the Florida 2 Whistleblowers Act, the Americans With Disabilities Act, Veterans' Reemployment
Rights Act, as amended (USERRA), the Florida Civil Rights Act, any claim arising under the Employment Retirement Income Security (“ERISA”)
and any other federal or state statutory or common law theory of liability or damages (except for claims for vested benefits under ERISA),
Section 806 of the Sarbanes-Oxley Act of 2002, breach of contract, express or implied, or from any other conduct, act, omission or failure
to act, whether

negligent, intentional, with or
without malice, that Executive ever had, now has, may have, may claim to have, or may hereafter have or claim to have, against the Company,
from the beginning of time up to and including the Separation Date, unless otherwise provided herein;

 

(v)         any
and all claims for attorneys’ fees and costs that arose up to and including the Effective Date of this Agreement;

 

(vi)        any
and all claims based upon discovered facts in addition to or different from those that any of them now knows or believes to be true,
or the claims or other legal forms of action released herein, and Executive fully, finally, and forever settles and releases any and
all claims set forth above, known or unknown, suspected or unsuspected, contingent or non- contingent, whether or not concealed or hidden,
that now exist, or heretofore have existed upon any theory of law or equity now existing or coming into existence in the future, including,
but not limited to, conduct that is negligent, reckless, intentional, with or without malice, or a breach of any duty, law or rule, without
regard to the subsequent discovery or existence of such different or additional facts;

 

(vii)       Executive
does not waive any claims as a shareholder of the Company;

 

(viii)      Executive acknowledges that the inclusion of “unknown claims” in this Agreement was separately bargained for and was
a key element of the Agreement, and that Executive assumes the risk of any mistake of fact or law on his own behalf. If Executive should
subsequently discover that his understanding of the facts or of the law was or is incorrect, Executive shall not be entitled to relief
in connection therewith, including without limitation of the generality of the foregoing, any alleged right or claim to set aside or rescind
this Agreement. This Agreement is intended to be, and is, final and binding upon Executive according to the terms hereof regardless of
any claims of mistake of fact or law; and

 

(ix)         Executive agrees that the release set forth in this section shall be and remain in effect in all respects as a complete general
release as to the matters released. This release does not extend to any obligations incurred under this Agreement. This release does not
release claims that cannot be released as a matter of law. Executive represents that he has made no assignment or transfer of any right,
claim, complaint, charge, duty, obligation, demand, cause of action, or other matter waived or released by this Section. The Parties agree
that that this release set forth in this section shall not apply to claims, causes of actions, or demands that arise after the Release
Effective Date of this Agreement; and

 

(x)          the Company agrees to defend, hold harmless, and indemnify, at its cost, any lawsuit, action, cause of action, claim, or demand
for damages (equitable or legal) made by a shareholder of the Company or any other third party against Executive for any action or inaction
taken by Executive in connection with the good faith performance of his responsibilities while he was a Chief Operating Officer of the
Company, including on an interim basis.

 

 

    
	 	 5	 

 

     

    

 

 

(b) Release by
the Company. The Company, on behalf of itself and its current and former officers, directors, executives, agents, investors, attorneys,
shareholders, administrators, affiliates, and subsidiaries, and predecessor and successor corporations and assigns (collectively, the
“Company Releasors”) hereby and forever releases the Executive from, and agrees not to sue concerning, or in any manner to
institute, prosecute, or pursue, any claim, complaint, charge, duty, obligation, demand, or cause of action relating to any matters of
any kind, whether presently known or unknown, suspected or unsuspected, that Company Releasors may possess against the Executive arising
from any omissions, acts, facts, or damages that have occurred up until and including the Effective Date of this Agreement, including,
without limitation, any and all claims relating to or arising from Executive’s employment relationship with the Company and the
termination of that relationship, except the obligations provided for in this Agreement. The Company represents and warrants that at present
it has no knowledge of any conduct by the Executive that would amount to fraud and gross misconduct. The Company Releasors agree that
the release set forth in this section shall be and remain in effect in all respects as a complete general release as to the matters released.
This release does not extend to any obligations incurred under this Agreement. This release does not release claims that cannot be released
as a matter of law. The Company Releasors represent that they have made no assignment or transfer of any right, claim, complaint, charge,
duty, obligation, demand, cause of action, or other matter waived or released by this Section.

 

6.                  Acknowledgement
of Waiver of Claims. Notwithstanding the foregoing, nothing in this Agreement shall be construed to prevent Executive from filing
a charge with or participating in an investigation conducted by any governmental agency, including, without limitation, the United States
Equal Employment Opportunity Commission (“EEOC”) or applicable state or city fair employment practices agency, to
the extent required or permitted by law. Nevertheless, Executive understands and agrees that (s)he is waiving any relief available (including,
for example, monetary damages or reinstatement), under any of the claims and/or causes of action waived in Section 5 above, including
but not limited to financial benefit or monetary recovery from any lawsuit filed or settlement reached by the EEOC or anyone else with
respect to any claims released and waived in this Agreement.

 

7.                 
Non-Disparagement. Executive and the Company (including its officers, directors and executives) hereby agree that they
will not make any remarks or adverse statements to any person or in any and all media (e.g., in writing, orally or on the internet via,
among other things, blogs and social networks) about the other Party or the Company’s current officers, directors, and executives
that could reasonably be construed as disparaging or defamatory, or to cast the other Party or any of the Company’s current officers,
directors, and executives in a negative light, or harm a Party’s or any of the Company’s current officers, directors, and
executives current or prospective business plans. Executive and the Company hereby agree and acknowledge that each of the Company’s
current officers, directors, and executives are a third party beneficiary of this Section 7 and hereby consents to any such standing with
respect to a claim arising out of Executive' s non-disparagement obligations to such Releasee contained in this Section 7. Executive agrees
to not cause, induce or encourage any customer, supplier, licensor, investor or shareholder of the Company that was a current customer,
supplier, licensor, investor or shareholder at the time of the Effective Date to terminate or modify any such relationship as it relates
to the Company’s business.

 

 

    
	 	 6	 

 

     

    

 

 

8.                 
No Admission of Liability. Executive understands and acknowledges that this Agreement constitutes a compromise and settlement
of any and all actual or potential disputed claims by Executive. No action taken by the Company hereto, either previously or in connection
with this Agreement, shall be deemed or construed to be (a) an admission of the truth or falsity of any actual or potential claims or
(b) an acknowledgment or admission by the Company of any fault or liability whatsoever to Executive or to any third party.

 

9.                  No Action. Executive affirms as of the date hereof and will reaffirm as of the Separation Date, by executing this Agreement,
that he has not filed and will not file any actions or charges, against the Company or the Releasees with any federal, state or local
agency. Executive further agrees that, upon payment of the consideration provided in this Agreement, he will not personally recover or
attempt to recover monies from the Company or the Releasees regarding the employment or Separation in the future.

 

10.               Notices. All notices and other communications hereunder shall be in writing and shall be deemed given when delivered
by an internationally recognized overnight courier to the respective Party at the following addresses (or at such other address for a
Party as shall be specified by like notice, provided that a notice of change of address(es) shall be effective only from the date of its
receipt by the other Party):

 

 

		(i)	if to Executive, then in entirety to:

                                                                                 

                                                                                Melvin Leiner

 

with a copy to:

c/o Schoeppl Law, P.A.

4651 North Federal Highway

Boca Raton, FL 33431

Attention: Carl F. Schoeppl

Fax: (561) 394-3121

 

c/o Wenzel Fenton Cabassa, P.A.

1110 N. Florida
Ave.

Suite 300

Tampa, FL 33602

Attention: Steven G. Wenzel

Fax: (813) 229-8712

 

		(ii)	if to the Company,

 

Grom Social Enterprises, Inc.

2060 NW Boca Raton
Blvd. #6

Boca Raton, Florida 33431

Attn: Chief Executive Officer

 

with a copy to:

 

c/o Lucosky Brookman LLP

101 Wood Avenue South

Woodbridge, NJ 08830

Attention: Joseph M. Lucosky

Fax: (732) 395-4401

 

 

 

    
	 	 7	 

 

     

    

 

 

11.                Internal Revenue Code Section 409A. It is the intent of the Parties that any compensation and benefits payable or provided
to Executive under this Agreement be paid or provided in compliance with Section 409A of the Code and all regulations, guidance, and other
interpretative authority issued thereunder (collectively, “Section 409A”) or in accordance with any applicable exemption
from Section 409A. Unless otherwise provided herein, the Parties acknowledge and agree that all compensation and benefits payable or provided
to Executive under Agreement are paid and provided in compliance with Section 409A, and therefore, the Company shall not report any of
such compensation or benefits in Box 12 of Executive’s Form W-2 using code “Z.” Notwithstanding anything to the contrary
in this Agreement, Executive has been determined to be a "specified employee" within the meaning of Section 409A at the time
of Executive's separation from service (other than due to death), therefore, the payments of "nonqualified deferred compensation"
subject to Section 409A, that are payable within the first six months following Executive's separation from service, will be paid on the
first date of the seventh (7th) month following the date of Executive's separation from service. Notwithstanding anything herein
to the contrary, in the event of Executive's death following Executive's separation from service, but before the six month anniversary
of the separation from service, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively
practicable after the date of Executive's death and all other deferred compensation payments will be payable in accordance with the payment
schedule applicable to each payment or benefit. For purposes of Section 409A, Executive's right to receive any installment payments
pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment under
this Agreement specifies a payment period with reference to a number of days (e.g., “within sixty (60) days following the
date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company,
but shall not exceed the maximum days allotted (e.g. “within sixty (60) days”).

 

12.               Governing Law. The laws of the State of Florida govern the interpretation, validity and effect of this Agreement without
regard to principles of conflicts of law, the place of execution or the place for performance thereof. The parties hereto hereby irrevocably
and unconditionally each submits for itself and its property in any legal action or proceeding relating to this Agreement, or for recognition
and enforcement of any judgment in respect thereof, to the exclusive general jurisdiction of the State of Florida and its courts and the
courts of the United States of America; consents that any such action or proceeding shall be brought in such courts, and waives any objection
that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was
brought in an inconvenient court and agrees not to plead or claim the same; and agrees that nothing herein shall affect the right to effect
service of process in any other manner permitted by law.

 

13.              
Interpretation.This Agreement shall be construed as if the Parties jointly prepared this Agreement and any uncertainty
or ambiguity shall not be interpreted against any Party.

 

14.               Entire Agreement. This Agreement contains the entire understanding by and between the Parties and supersedes any and
all prior agreements and understandings between the Parties and the Company, including the Employment Agreement, whether such agreements
or understandings were oral or written, and all of which prior agreements and understandings are hereby definitively terminated and of
no further force or effect, unless otherwise provided herein. The Parties acknowledge and represent that they have not relied on any statements,
agreements, representations, promises, warranties, or other assurances, oral or written, other than those contained herein. Each Party
agrees that this Agreement is intended to cover any and all matters and claims (including possible and contingent claims) arising out
of or related to any and all prior agreements or understandings and this Agreement shall not be limited in scope to cover any and all
prior matters, whether any such matters are known, unknown or hereafter discovered or ascertained. Executive covenants and agrees that
he will not, at any time hereafter, either directly or indirectly, initiate, assign, maintain or prosecute, or in any way knowingly aid
or assist in the initiation, maintenance or prosecution of any claim, demand or cause of action at law or otherwise against the Releasees
or any of them, as applicable, for damages, loss or injury of any kind arising from, related to, or in any way connected to any activity
with respect to which a release has been given pursuant to this Agreement, except to enforce this Agreement or unless otherwise provided
for herein.

 

 

    
	 	 8	 

 

     

    

 

 

15.              
Modification. This Agreement shall not and cannot be modified by any Party by any oral promise or representation made
before or after the execution of this Agreement, and may only be modified by a writing signed by all Parties. This Agreement shall be
binding upon and inure to the benefit of the Releasees.

 

16.               Construction.
The headings of sections and paragraphs are used for convenience only and shall not affect the meaning or construction of the
contents of this Agreement. Should any portion (e.g., word, clause, phrase, sentence, paragraph or section) of this Agreement be
declared void or unenforceable, such portion shall be considered independent and severable from the remainder, the validity of which
shall remain unaffected. This Agreement shall survive indefinitely, except as otherwise provided for herein. The terms and
conditions of this Agreement have been, or will deemed to be, jointly negotiated by the Parties, and in the event of any ambiguity
or controversy it shall not be construed against either Party as the draftsperson. For purposes of this Agreement,
“Company” shall include any of the Company’s parents, subsidiaries, affiliates, or any other entity in
which it holds a 50% or greater equity interest.

 

17.               Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which
together shall be deemed one and the same instrument. This Agreement may be executed in counterparts and may be delivered via fax or
scan which shall have the same full force and effect as an original.

 

18.               Advice of Counsel. Each Party has had ample opportunity to consult with counsel and has independently determined to
proceed with this Agreement with or without such counsel. Executive has not relied upon Company counsel with respect to any advice of
any nature or kind regarding this Agreement, and Executive acknowledges and agrees that Company counsel does not represent Executive individually
or as an officer or director of the Company. Executive further acknowledges that the only consideration for signing this Agreement is
the terms stated in this Agreement, and that no other promise or agreements of any kind have been made to him or with him by any person
or entity whatsoever to cause him to sign this Agreement; that he is competent to execute this Agreement; that he has been afforded sufficient
and reasonable time to consider the Agreement and has been advised in writing and given the opportunity to consult advisors, legal and
otherwise, of his own choosing; that the consideration received for executing this Agreement is greater than that ordinarily provided
by the Company under any severance plan, policy or practice; and that he fully understands the meaning and intent of this Agreement.

 

19.              
Successors and Assigns. This Agreement shall be assigned to the Company’s successors and assigns, including, without
limitation, successors and assigns through merger, name change, consolidation, liquidation, or sale of a majority of the Company’s
stock or assets, and shall be binding upon such successors and/or assigns. In addition, the Parties agree that the benefits provided to
Executive shall survive his death and inure to the benefit of Executive’s estate, heirs, and assigns.

 

20.              
Testimony. Notwithstanding anything to the contrary in this Agreement, including, but not limited to, Sections 4 and
7, this Agreement shall not be interpreted to preclude the Parties from making truthful statements to any court or government agency pursuant
to an official request by such government agency, court order, or legally enforceable subpoena.

 

  

 [Signature Page Follows]

 

 

 

    
	 	 9	 

 

     

    

 

 

 

IN WITNESS WHEREOF, the Parties
have executed this Agreement as of the day and year indicated below.

 

 

	 	GROM SOCIAL ENTERPRISES, INC.
	 	 
	 	 
	 	By: ______________________
	 	Name:
	 	Title:
	 	Date: April 22, 2022
	 	 
	 	 
	 	 
	 	GROM SOCIAL, INC.
	 	 
	 	 
	 	By: ______________________
	 	Name:
	 	Title:

      

	 	Date: April 22, 2022
	 	 
	 	 
	 	 
	 	_________________________
	 	MELVIN LEINER, an individual 
	 	Date: April 22, 2022
	 	 
	 	 

 

 

 

 

 

THIS IS A LEGAL AGREEMENT,
RELEASE AND COVENANT

NOT TO SUE. READ CAREFULLY BEFORE SIGNING.

 

 

 

 

 

 

[Signature page to Executive Separation Agreement]

 

 

 

 

 

 

 

    
	 	 10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00344-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00344-of-00352.parquet"}]]