Document:

dave_Ex10_2

		

			Exhibit 10.2

		

		

			 

		

		

			Confidential treatment has been requested for portions of this exhibit pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [**]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

		

		

			 

		

		
			INTELLECTUAL PROPERTY LICENSE AGREEMENT
		

		
			 
		

		
			This Intellectual Property License Agreement (the “License Agreement”), between Travis Clark, individually, and Clark Championship Products LLC, a limited liability company organized under the laws of Oklahoma  (collectively “Licensor”), and Famous Dave’s of America, Inc.,  a corporation organized under the laws of Minnesota (“Licensee”), is effective July 18, 2018 (the “Effective Date”).
		

		
			 
		

		
			RECITALS
		

		
			 
		

		
			A.Licensor is the owner of certain intellectual property rights worldwide, including patents, trademarks, trade names, services marks, logos and designs (the “IP Assets”) related to Clark Crew BBQTM restaurants and products (the “Goods and Services”).  The IP Assets include the trademark “Clark Crew BBQ” and any other trademarks, service marks, logos or designs that Licensor may now or in the future develop related to the operation of a Clark Crew BBQTM restaurant (the “Marks”).
		

		
			 
		

		
			B.Licensor also has licensed the IP Assets to Mercury BBQ LLC for the development of a single Clark Crew BBQTM restaurant (the “Mercury Agreement”)  in a specific territory (the “Mercury Territory”).
		

		
			 
		

		
			C.Licensee desires to license the IP Assets from Licensor for various commercial purposes related to the Goods and Services and sublicense these rights pursuant to the terms described in this Agreement. 
		

		
			 
		

		
			AGREEMENT
		

		
			 
		

		
			In consideration of the above recitals and the promises set forth below, the parties agree as follows:
		

		
			 
		

		
			1.License to Intellectual Property.  
		

		
			 
		

		
			1.1Grant of License.  Licensor grants Licensee an exclusive license to use and sublicense the IP Assets for various commercial purposes related to the Goods and Services in the Territory, including establishing franchising operations (the “License”).    The “Territory” is worldwide; provided that for as long as the Mercury Agreement remains in effect, Licensee will not operate or sublicense another party to operate a Clarks Crew BBQTM restaurant in the Mercury Territory.
		

		
			 
		

		
			1.2Sublicensing.  Licensee may sublicense the rights under this Agreement, provided that the sublicense terms include obligations at least as protective as those set 

		 

 

		

			 

		

forth in this Agreement.  Licensee and any sublicensees must comply with the quality standards set forth in this Agreement, and Licensee will be responsible to enforce those standards against any sublicensees.  
		

		
			 
		

		
			1.3Reservation of Rights.  Licensor retains all right, title and interest in and to the IP Assets and reserves all rights not expressly granted to Licensee in the License and this Agreement.  If at any time, Licensor determines that it is appropriate to change or modify use of any of the IP Assets or to substitute or add additional rights or assets, that the definition of IP Assets shall automatically, and without further action of the parties, be amended to include such changes; provided that Licensee may continue to use any IP Assets which Licensor no longer supports or develops.     
		

		
			 
		

		
			1.4Copyright License.  With regard to copyrights licensed under this Agreement, the License includes the right to use, reproduce, display, distribute, create derivative works of the creative works owned by Licensor.  All derivative works created by Licensee or its sublicensees will become and remain the sole and exclusive property of Licensor.  Upon written request by Licensor,  Licensee will execute any assignments, bills of sale or other documents necessary to confirm, assign or transfer any intellectual property rights in any derivative works created by or on behalf of Licensee or its sublicensees.
		

		
			 
		

		
			1.5Trademark License.   
		

		
			 
		

		
			A.Use of the Marks.    With regard to the Marks licensed under this Agreement, the License is for various commercial purposes related to the Goods and Services, including establishing franchising operations.  Licensee must use the Marks in accordance with sound trademark and trade name usage principles and in accordance with all applicable laws and regulations, including without limitation all laws and regulations relating to the maintenance of the validity and enforceability of the Marks.  Licensee may not, during or after the term of this License Agreement, engage in any conduct, directly or indirectly, that would infringe upon, harm or contest the rights of title of Licensor in or to the Marks, any associated goodwill or the validity of the Marks.  
		

		
			 
		

		
			B.Quality Control.  The Goods and Services offered by Licensee under the Marks will be of the same quality as those offered by Licensor under the Marks in the United States.  In manufacturing and marketing the Goods and Services, Licensee will comply with the quality standards set forth by Licensor.  
		

		
			 
		

		
			

		 

 

		

			 

		

		

		
			C.Ownership.  The parties acknowledge that Licensor is the exclusive owner of all right, title and interest in and to the Marks and all past, present or future goodwill of the business that is associated with or attributable to the Marks.  Use of the Marks by Licensee or its sublicensees, and the goodwill associated with that use, inures to Licensor and its successors and assigns.  
		

		
			 
		

		
			1.6Trade Secrets License.  With regard to trade secrets licensed under this Agreement, Licensee will keep such trade secrets confidential, using the same degree of care it uses to protect its own confidential or proprietary information, but in no event less than a reasonable degree of care.  Licensee will not disclose any trade secrets to any third party, except as necessary for business purposes and under similar confidentiality obligations.  Licensee will limit access to trade secrets to those employees who need to know the information for business purposes.  
		

		
			 
		

		
			2.Royalty.    Licensee will pay Licensor a royalty in an amount equal to $[**] cash and $[**] of Licensor common stock for each of the first 20 Clark Crew BBQTM restaurants opened by Licensee and its sublicensees that use the IP Assets. The royalty will be paid quarterly, within 30 days of the end of each calendar quarter, via bank transfer. The royalty will end after payment has been made for the 20th Clark Crew BBQTM restaurant opened by Licensee or its sublicensees.
		

		
			 
		

		
			3.Records and Audit Rights.  Licensee agrees to keep and maintain such books and records as are necessary to determine its royalty payments to Licensor each period.  Licensor may review the records within three days upon written request, or Licensor may hire an independent certified public accountant to perform an audit on its behalf at Licensor’s expense.  If the auditor discovers discrepancies in Licensee’s favor greater than 5%, Licensee will reimburse Licensor for all costs associated with the audit.
		

		
			 
		

		
			4.Term.  This Agreement shall commence as of the Effective Date and shall continue in full force and effect until terminated by the parties’ mutual written agreement, unless sooner terminated pursuant to Section 5 of this Agreement.
		

		
			 
		

		
			_____________________________
		

		
			[**] Denotes confidential information that has been omitted from the exhibit and filed separately, accompanied by a confidential treatment request, with the Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934.
		

		
			 
		

		
			 
		

		
			

		 

 

		

			 

		

		

		
			5.Termination. Either party may terminate the Agreement in the event of a breach by the other party that remains uncured 30 days after written notice of the breach was provided.  For purposes of this Agreement, it is a material breach of this Agreement if Licensee:
		

		
			 
		

			
	
			
				 (a)
			

			
	
			
			fails or refuses to perform any duty hereunder;

			
	
			
				 (b)
			

			
	
			
			fails to enter into two franchise agreements for the development and operation of a Clark Crew BBQTM restaurant within two years following the Effective Date; 

		
			 
		

		
			(d)attempts to transfer an interest in this Agreement in violation of Section 6 of this Agreement;
		

		
			 
		

		
			(e)becomes insolvent by reason of an inability to pay debts as they mature or makes an assignment for the benefit of creditors or any admission of inability to pay obligations as they become due;
		

		
			 
		

		
			(f)fails to submit when due reports or other information or supporting records required under Section 3; or
		

		
			 
		

		
			(g)fails or refuses to comply with any other provision of this Agreement or any instruction of Licensor concerning quality control standards for the Marks.
		

		
			 
		

		
			 
		

		
			Any sublicenses in existence at the time of termination or expiration of this License Agreement will continue for the stated term in those sublicenses, notwithstanding the termination of this License Agreement, provided the sublicensees are in compliance with all other terms of their sublicense agreements.
		

		
			 
		

		
			6.Assignment.  The License and this Agreement may not be assigned by Licensor without the prior written consent of Licensee, in its sole discretion, including in connection with a merger or acquisition of Licensor.  Other than sublicensing rights within the Territory, as provided under this Agreement, Licensee may not assign the License and this Agreement without Licensor’s prior written consent in its sole discretion; provided that Licensee may assign the License and this Agreement without Licensor’s prior written consent in connection with a merger or acquisition of Licensee.  
		

		
			 
		

		
			7.Indemnification by Licensee.  Licensee will indemnify and defend Licensor and its directors, officers, employees, representatives and agents from and against, any third party claims of infringement, including attorney fees, arising from Licensee’s use of the IP Assets.  
		

		
			 
		

		
			8.Indemnification for Infringement.  Licensor will indemnify and defend Licensee and its directors, officers, employees, representatives and agents from and against any and all 

		 

 

		

			 

		

claims, losses, damages and expenses, including attorney fees, based on a claim that Licensee’s use of the IP Assets infringes a third party’s intellectual property rights.  Licensee must promptly notify Licensor of any infringement claims of which it becomes aware.  The defense, settlement and handling of any claims of infringement will be determined by Licensor in its sole discretion.  At the request of Licensor,  Licensee will cooperate and assist Licensor in the defense, settlement and handling of any claims, at Licensor’s expense.
		

		
			 
		

		
			9.Limitation of Liabilities.    In no event shall either party be liable for any special, indirect, consequential or contingent damages, including without limitation loss of profits, regardless of whether in an action based on contract, tort or any other theory, even if that party had been advised of the possibility of such damages. 
		

		
			 
		

		
			 
		

		
			10.Non-Compete.    
		

		
			A.Licensor will not during the term of this Agreement anywhere in the world on their own account on their own account or as an employee, agent, consultant, affiliate, licensee, partner, officer, director, or owner of any other person, firm, entity, partnership, or corporation, own, operate, lease, franchise, conduct, engage in, be connected with, have any interest in, or assist any person or entity engaged in: (1) any business that distributes, sells or otherwise deals in, at wholesale or retail, barbeque sauce, smoked food, or barbecued food; or (b) any business that Licensee determines, in the exercise of its business judgment, serves the same general range of consumer demand (regardless of menu) as comparable to that served by a Clark Crew BBQTM restaurant.  
		

		
			B.For two years following the termination of this Agreement, Licensor will not on their own account on their own account or as an employee, agent, consultant, affiliate, licensee, partner, officer, director, or owner of any other person, firm, entity, partnership, or corporation, own, operate, lease, franchise, conduct, engage in, be connected with, have any interest in, or assist any person or entity engaged in a business that distributes, sells or otherwise deals in, at wholesale or retail, barbeque sauce, smoked food, or barbecued food or any other related business that is competitive with or similar to a Clark Crew BBQTM restaurant, if such business is located within 15 miles of any Clark Crew BBQTM restaurant existing at the time of termination of this Agreement.    For purposes of this Section, any form of e-commerce business or website that distributes, sells or otherwise deals in, at wholesale or retail, any barbeque sauce, smoked food, barbecued food, or related products, or any other related business that is competitive with or similar to a Clark Crew BBQTM restaurant will be in violation of this provision if such e-commerce business or website offers, sells or otherwise makes its products or services available to individuals residing within or businesses located within 15 

		 

 

		

			 

		

mile radius of any Clark Crew BBQTM restaurant existing at the time of termination of this Agreement.   
		

		
			11.Representations.  Licensor represents and warrants to Licensee that the IP Assets constitute all of the intellectual property assets necessary to operate Clark Crew BBQTM restaurants.     
		

		
			12.Acknowledgements.  Licensee acknowledges and agrees that it is an entity that has been in business for over five years and that it has a net worth over $5,715,500.
		

		
			13.General.    This Agreement is governed by the laws of the State of Oklahoma without regard to conflicts of law principles.  All claims or actions related to this Agreement must be brought in the state or federal courts located in Hennepin County, Minnesota.  If any court of competent jurisdiction holds any provision of this Agreement invalid or unenforceable, the other provisions of this Agreement remain in full force and effect.  Any provision of this Agreement held invalid or unenforceable only in part or degree remains in full force and effect to the extent not held invalid or unenforceable.  The waiver or failure of either party to exercise in any respect any right provided for in this Agreement shall not be deemed a waiver of any further right under this Agreement.  This Agreement contains the entire agreement and understanding of the parties concerning the subject matter of this Agreement.
		

		
			 
		

			
					
						Licensor 

					
						
CLARK CHAMPIONSHIP PRODUCTS LLC

					
						/s/ Travis Clark

					
						By: Travis Clark

					
						Its:  Owner

					
						 

					
						/s/Travis Clark

					
						By: Travis Clark, individually

					
						 

					
					
						 

					
					
						Licensee 

					
						 

					
						 

					
						FAMOUS DAVE’S OF AMERICA, INC.

					
						
/s/ Geovannie Concepcion

					
						By: Geovannie Concepcion

					
						Its:  COO

					
						 

					
						 

					
						 

					
						 

				

		
			[Notary Seal]
		

		
			/s/ Sheryl L. Hoye
		

		
			Notary Public - Minnesota
		

		
			My commission expires 01/31/19Exhibit 10.1

 

SEPARATION AGREEMENT AND RELEASE

 

This Separation Agreement and Release (“Agreement”) is made by and between Matthew Ferguson (“Employee”) and Avinger, Inc. (the “Company”) (collectively referred to as the “Parties” or individually referred to as a “Party”).

 

RECITALS

 

WHEREAS, Employee was employed by the Company;

 

WHEREAS, Employee signed an At-Will Employment, Confidential Information, Invention Assignment and Arbitration Agreement with the Company, which is attached as Exhibit A (the “Confidentiality Agreement”);

 

WHEREAS, the Company and Employee have entered into stock option agreements granting Employee the option to purchase shares of the Company’s common stock subject to the terms and conditions of the Company’s 2015 Stock Plan and the stock option agreements (together the “Stock Agreements”);

 

WHEREAS, Employee has notified the Company of his resignation from the Company effective August 1st, 2018 (the “Termination Date”); and

 

WHEREAS, the Parties wish to resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions, and demands that the Employee may have against the Company and any of the Releasees as defined below, including, but not limited to, any and all claims arising out of or in any way related to Employee’s employment with or separation from the Company;

 

NOW, THEREFORE, in consideration of the mutual promises made herein, the Company and Employee hereby agree as follows:

 

COVENANTS

 

1.             Consideration. Any bonus payments related to first half of 2018 performance will be paid at time of payment to other company employees regardless of the employment status as of that payment date.

 

2.             Stock.  The Parties agree that for purposes of determining the number of shares of the Company’s common stock that Employee is entitled to purchase from the Company, pursuant to the exercise of outstanding options, Employee will be considered to have vested only up to the Termination Date.  The exercise of Employee’s vested options and shares shall continue to be governed by the terms and conditions of the Stock Agreements.  A schedule of Employee’s option vesting under the Stock Agreements through the Termination Date is attached as Exhibit B.

 

3.             Benefits.  Employee’s health insurance benefits shall cease on the last day of August 2018, subject to Employee’s right to continue his/her health insurance under COBRA.  Employee’s participation in all benefits and incidents of employment, including, but not limited to, vesting in stock options, and the accrual of bonuses, vacation, and paid time off, ceased as of the Termination Date.

 

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4.             Payment of Salary and Receipt of All Benefits.  Employee acknowledges and represents that, other than the consideration set forth in this Agreement, the Company has paid or provided all salary, wages, bonuses, accrued vacation/paid time off, premiums, leaves, housing allowances, relocation costs, interest, severance, outplacement costs, fees, reimbursable expenses, commissions, stock, stock options, vesting, and any and all other benefits and compensation due to Employee.

 

5.             Release of Claims.  Employee agrees that the foregoing consideration represents settlement in full of all outstanding obligations owed to Employee by the Company and its current and former officers, directors, employees, agents, investors, attorneys, shareholders, administrators, affiliates, benefit plans, plan administrators, insurers, trustees, divisions, and subsidiaries, and predecessor and successor corporations and assigns (collectively, the “Releasees”).  Employee, on his/her own behalf and on behalf of his/her 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 Employee 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:

 

a.             any and all claims relating to or arising from Employee’s employment relationship with the Company and the termination of that relationship;

 

b.             any and all claims relating to, or arising from, Employee’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;

 

c.             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;

 

d.             any and all claims for violation of any federal, state, or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Equal Pay Act; the Fair Labor Standards Act; the Fair Credit Reporting Act; the Age Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act; the Employee Retirement Income Security Act of 1974; the Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act; the Sarbanes-Oxley Act of 2002; the California Family Rights Act; the California Labor Code; the California Workers’ Compensation Act; and the California Fair Employment and Housing Act;

 

e.             any and all claims for violation of the federal or any state constitution;

 

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f.             any and all claims arising out of any other laws and regulations relating to employment or employment discrimination;

 

g.             any claim for any loss, cost, damage, or expense arising out of any dispute over the nonwithholding or other tax treatment of any of the proceeds received by Employee as a result of this Agreement; and

 

h.             any and all claims for attorneys’ fees and costs.

 

Employee 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, including, but not limited to, Employee’s right to file a charge with or participate in a charge by the Equal Employment Opportunity Commission, or any other local, state, or federal administrative body or government agency that is authorized to enforce or administer laws related to employment, against the Company (with the understanding that any such filing or participation does not give Employee the right to recover any monetary damages against the Company; Employee’s release of claims herein bars Employee from recovering such monetary relief from the Company).  Notwithstanding the foregoing, Employee acknowledges that any and all disputed wage claims that are released herein shall be subject to binding arbitration in accordance with Paragraph 17, which precludes Employee from filing a claim with the Division of Labor Standards Enforcement.  Employee represents that he/she 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.

 

6.             Acknowledgment of Waiver of Claims under ADEA. Employee acknowledges that he/she is waiving and releasing any rights he/she may have under the Age Discrimination in Employment Act of 1967 (“ADEA”), and that this waiver and release is knowing and voluntary.  Employee agrees that this waiver and release does not apply to any rights or claims that may arise under the ADEA after the Effective Date of this Agreement.  Employee acknowledges that the consideration given for this waiver and release is in addition to anything of value to which Employee was already entitled.  Employee further acknowledges that he/she has been advised by this writing that: (a) he/she should consult with an attorney prior to executing this Agreement; (b) he/she has forty-five (45) days within which to consider this Agreement; (c) he/she has seven (7) days following his/her execution of this Agreement to revoke this Agreement; (d) this Agreement shall not be effective until after the revocation period has expired; (e) nothing in this Agreement prevents or precludes Employee from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by federal law.  In the event Employee signs this Agreement and returns it to the Company in less than the 45-day period identified above, Employee hereby acknowledges that he/she has freely and voluntarily chosen to waive the time period allotted for considering this Agreement.  Employee acknowledges and understands that revocation must be accomplished by a written notification to Human Resources at hr@avinger.com that is received prior to the Effective Date.  The Parties agree that changes to this Agreement, whether material or immaterial, do not restart the running of the 45-day consideration period referenced above.

 

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7.             California Civil Code Section 1542.  Employee acknowledges that he/she has been advised to consult with legal counsel and is familiar with the provisions of California Civil Code Section 1542, a statute that otherwise prohibits the release of unknown claims, which provides as follows:

 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN his/her FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM/HER MUST HAVE MATERIALLY AFFECTED his/her SETTLEMENT WITH THE DEBTOR.

 

Employee, being aware of said code section, agrees to expressly waive any rights he/she may have thereunder, as well as under any other statute or common law principles of similar effect.

 

8.             No Pending or Future Lawsuits.  Employee represents that he/she has no lawsuits, claims, or actions pending in his/her name, or on behalf of any other person or entity, against the Company or any of the other Releasees. Employee also represents that he/she does not intend to bring any claims on his/her own behalf or on behalf of any other person or entity against the Company or any of the other Releasees.

 

9.             Application for Employment.  Employee understands and agrees that, as a condition of this Agreement, Employee shall not be entitled to any employment with the Company, and Employee hereby waives any right, or alleged right, of employment or re-employment with the Company.

 

10.          Confidentiality.  Employee agrees to maintain in complete confidence the existence of this Agreement, the contents and terms of this Agreement, and the consideration for this Agreement (hereinafter collectively referred to as “Separation Information”).  Except as required by law, Employee may disclose Separation Information only to his/her immediate family members, the Court in any proceedings to enforce the terms of this Agreement, Employee’s attorney(s), and Employee’s accountant and any professional tax advisor to the extent that they need to know the Separation Information in order to provide advice on tax treatment or to prepare tax returns, and must prevent disclosure of any Separation Information to all other third parties.  Employee agrees that he/she will not publicize, directly or indirectly, any Separation Information.

 

Employee acknowledges and agrees that the confidentiality of the Separation Information is of the essence.  The Parties agree that if the Company proves that Employee breached this Confidentiality provision, the Company shall be entitled to an award of its costs spent enforcing this provision, including all reasonable attorneys’ fees associated with the enforcement action, without regard to whether the Company can establish actual damages from Employee’s breach.  Any such individual breach or disclosure shall not excuse Employee from his/her obligations hereunder, nor permit his/her to make additional disclosures.  Employee warrants that he/she has not disclosed, orally or in writing, directly or indirectly, any of the Separation Information to any unauthorized party.

 

11.          Trade Secrets and Confidential Information/Company Property.  Employee reaffirms and agrees to observe and abide by the terms of the Confidentiality Agreement, specifically including the provisions therein regarding nondisclosure of the Company’s trade secrets and

 

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confidential and proprietary information, and nonsolicitation of Company employees. Employee’s signature below constitutes his/her certification under penalty of perjury that he/she has returned all documents and other items provided to Employee by the Company, developed or obtained by Employee in connection with his/her employment with the Company, or otherwise belonging to the Company.

 

12.          No Cooperation.  Employee agrees that he/she will not knowingly encourage, counsel, or assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against any of the Releasees, unless under a subpoena or other court order to do so.  Employee agrees both to immediately notify the Company upon receipt of any such subpoena or court order, and to furnish, within three (3) business days of its receipt, a copy of such subpoena or other court order.  If approached by anyone for counsel or assistance in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints against any of the Releasees, Employee shall state no more than that he/she cannot provide counsel or assistance.

 

13.          Nondisparagement.  Employee agrees to refrain from any disparagement, defamation, libel, or slander of any of the Releasees, and agrees to refrain from any tortious interference with the contracts and relationships of any of the Releasees.  Employee shall direct any inquiries by potential future employers to the Company’s human resources department.

 

14.          Breach.  In addition to the rights provided in the “Attorneys’ Fees” section below, Employee acknowledges and agrees that any material breach of this Agreement or of any provision of the Confidentiality Agreement shall entitle the Company immediately to recover and/or cease providing the consideration provided to Employee under this Agreement and to obtain damages.

 

15.          No Admission of Liability.  Employee understands and acknowledges that this Agreement constitutes a compromise and settlement of any and all actual or potential disputed claims by Employee.  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 Employee or to any third party.

 

16.          Costs.  The Parties shall each bear their own costs, attorneys’ fees, and other fees incurred in connection with the preparation of this Agreement.

 

17.          ARBITRATION.  THE PARTIES AGREE THAT ANY AND ALL DISPUTES ARISING OUT OF THE TERMS OF THIS AGREEMENT, THEIR INTERPRETATION, AND ANY OF THE MATTERS HEREIN RELEASED, SHALL BE SUBJECT TO ARBITRATION IN SAN MATEO COUNTY, BEFORE JUDICIAL ARBITRATION & MEDIATION SERVICES (“JAMS”), PURSUANT TO ITS EMPLOYMENT ARBITRATION RULES & PROCEDURES (“JAMS RULES”).  THE ARBITRATOR MAY GRANT INJUNCTIONS AND OTHER RELIEF IN SUCH DISPUTES.  THE ARBITRATOR SHALL ADMINISTER AND CONDUCT ANY ARBITRATION IN ACCORDANCE WITH CALIFORNIA LAW, INCLUDING THE CALIFORNIA CODE OF CIVIL PROCEDURE, AND THE ARBITRATOR SHALL APPLY SUBSTANTIVE AND PROCEDURAL CALIFORNIA LAW TO ANY DISPUTE OR CLAIM, WITHOUT REFERENCE TO ANY CONFLICT-OF-LAW PROVISIONS OF ANY JURISDICTION.  TO THE EXTENT THAT THE JAMS RULES CONFLICT WITH

 

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CALIFORNIA LAW, CALIFORNIA LAW SHALL TAKE PRECEDENCE.  THE DECISION OF THE ARBITRATOR SHALL BE FINAL, CONCLUSIVE, AND BINDING ON THE PARTIES TO THE ARBITRATION.  THE PARTIES AGREE THAT THE PREVAILING PARTY IN ANY ARBITRATION SHALL BE ENTITLED TO INJUNCTIVE RELIEF IN ANY COURT OF COMPETENT JURISDICTION TO ENFORCE THE ARBITRATION AWARD.  THE PARTIES TO THE ARBITRATION SHALL EACH PAY AN EQUAL SHARE OF THE COSTS AND EXPENSES OF SUCH ARBITRATION, AND EACH PARTY SHALL SEPARATELY PAY FOR ITS RESPECTIVE COUNSEL FEES AND EXPENSES; PROVIDED, HOWEVER, THAT THE ARBITRATOR SHALL AWARD ATTORNEYS’ FEES AND COSTS TO THE PREVAILING PARTY, EXCEPT AS PROHIBITED BY LAW.  THE PARTIES HEREBY AGREE TO WAIVE THEIR RIGHT TO HAVE ANY DISPUTE BETWEEN THEM RESOLVED IN A COURT OF LAW BY A JUDGE OR JURY.  NOTWITHSTANDING THE FOREGOING, THIS SECTION WILL NOT PREVENT EITHER PARTY FROM SEEKING INJUNCTIVE RELIEF (OR ANY OTHER PROVISIONAL REMEDY) FROM ANY COURT HAVING JURISDICTION OVER THE PARTIES AND THE SUBJECT MATTER OF THEIR DISPUTE RELATING TO THIS AGREEMENT AND THE AGREEMENTS INCORPORATED HEREIN BY REFERENCE.  SHOULD ANY PART OF THE ARBITRATION AGREEMENT CONTAINED IN THIS PARAGRAPH CONFLICT WITH ANY OTHER ARBITRATION AGREEMENT BETWEEN THE PARTIES, THE PARTIES AGREE THAT THIS ARBITRATION AGREEMENT SHALL GOVERN.

 

18.          Tax Consequences.  The Company makes no representations or warranties with respect to the tax consequences of the payments and any other consideration provided to Employee or made on his/her behalf under the terms of this Agreement.  Employee agrees and understands that he/she is responsible for payment, if any, of local, state, and/or federal taxes on the payments and any other consideration provided hereunder by the Company and any penalties or assessments thereon.  Employee further agrees to indemnify and hold the Company harmless from any claims, demands, deficiencies, penalties, interest, assessments, executions, judgments, or recoveries by any government agency against the Company for any amounts claimed due on account of (a) Employee’s failure to pay or delayed payment of federal or state taxes, or (b) damages sustained by the Company by reason of any such claims, including attorneys’ fees and costs.

 

19.          Authority.  The Company represents and warrants that the undersigned has the authority to act on behalf of the Company and to bind the Company and all who may claim through it to the terms and conditions of this Agreement.  Employee represents and warrants that he/she has the capacity to act on his/her own behalf and on behalf of all who might claim through his/her to bind them to the terms and conditions of this Agreement.  Each Party warrants and represents that there are no liens or claims of lien or assignments in law or equity or otherwise of or against any of the claims or causes of action released herein.

 

20.          No Representations.  Employee represents that he/she has had an opportunity to consult with an attorney, and has carefully read and understands the scope and effect of the provisions of this Agreement.  Employee has not relied upon any representations or statements made by the Company that are not specifically set forth in this Agreement.

 

21.          Severability.  In the event that any provision or any portion of any provision hereof or any surviving agreement made a part hereof becomes or is declared by a court of competent

 

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jurisdiction or arbitrator to be illegal, unenforceable, or void, this Agreement shall continue in full force and effect without said provision or portion of provision.

 

22.          Attorneys’ Fees.  Except with regard to a legal action challenging or seeking a determination in good faith of the validity of the waiver herein under the ADEA, in the event that either Party brings an action to enforce or effect its rights under this Agreement, the prevailing Party shall be entitled to recover its costs and expenses, including the costs of mediation, arbitration, litigation, court fees, and reasonable attorneys’ fees incurred in connection with such an action.

 

23.          Entire Agreement.  This Agreement represents the entire agreement and understanding between the Company and Employee concerning the subject matter of this Agreement and Employee’s employment with and separation from the Company and the events leading thereto and associated therewith, and supersedes and replaces any and all prior agreements and understandings concerning the subject matter of this Agreement and Employee’s relationship with the Company, with the exception of the Confidentiality Agreement and the Stock Agreement.

 

24.          No Oral Modification.  This Agreement may only be amended in a writing signed by Employee and the Company’s Chief Executive Officer.

 

25.          Governing Law.  This Agreement shall be governed by the laws of the State of California, without regard for choice-of-law provisions.

 

26.          Effective Date.  Employee understands that this Agreement shall be null and void if not executed by him/her within forty-five (45) days.  This Agreement will become effective on the date it has been signed by both Parties (the “Effective Date”).

 

27.          Counterparts.  This Agreement may be executed in counterparts and by facsimile, and each counterpart and facsimile shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned.

 

28.          Voluntary Execution of Agreement.  Employee understands and agrees that he/she executed this Agreement voluntarily, without any duress or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of his/her claims against the Company and any of the other Releasees.  Employee acknowledges that:

 

(a)           he/she has read this Agreement;

 

(b)           he/she has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of his/her own choice or has elected not to retain legal counsel;

 

(c)           he/she understands the terms and consequences of this Agreement and of the releases it contains; and

 

(d)           he/she is fully aware of the legal and binding effect of this Agreement.

 

29.          Protected Activity Not Prohibited.  I understand that nothing in this Agreement shall in any way limit or prohibit me from engaging for a lawful purpose in any Protected Activity. For

 

7

 

purposes of this Agreement, “Protected Activity” means filing a charge or complaint, or otherwise communicating, cooperating, or participating with, any state, federal, or other governmental agency, including the Securities and Exchange Commission, the Equal Employment Opportunity Commission, and the National Labor Relations Board. Notwithstanding any restrictions set forth in this Agreement, I understand that I am not required to obtain authorization from the Company prior to disclosing information to, or communicating with, such agencies, nor am I obligated to advise the Company as to any such disclosures or communications. Notwithstanding, in making any such disclosures or communications, I agree to take all reasonable precautions to prevent any unauthorized use or disclosure of any information that may constitute Company Confidential Information to any parties other than the relevant government agencies. I further understand that “Protected Activity” does not include the disclosure of any Company attorney-client privileged communications, and that any such disclosure without the Company’s written consent shall constitute a material breach of this Agreement. In addition, I hereby acknowledge that the Company has provided me with notice in compliance with the Defend Trade Secrets Act of 2016 regarding immunity from liability for limited disclosures of trade secrets. The full text of the notice is attached in Exhibit C.

 

(signature page follows)

 

8

 

IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.

 

 

	
 
    	
MATTHEW FERGUSON, an   individual
    
	
 
    	
 
    
	
 
    	
 
    
	
Dated:   August 1, 2018
    	
/s/ Matthew   Ferguson
    
	
 
    	
Employee (Signature)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
AVINGER, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Dated: August 1,   2018
    	
By
    	
/s/ Jeffrey Soinski
    
	
 
    	
 
    	
JEFFREY SOINSKI
    
	
 
    	
 
    	
Chief Executive Officer
    

 

9

 

EXHIBIT A

 

CONFIDENTIALITY AGREEMENT

 

10

 

EXHIBIT B

 

STOCK OPTION VESTING SCHEDULE — Refer to the fidelity portal at netbenefits.com

 

11

 

EXHIBIT C

 

SECTION 7 OF THE DEFEND TRADE SECRETS ACT OF 2016

 

“...An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that-(A) is made-(i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. . . . An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual-(A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.”

 

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