Document:

Employment
Agreement

 

This
Employment Agreement (“Agreement”), dated August 16, 2017 and effective as of the Commencement Date (as defined
below), is entered into between Motus GI Medical Technologies Ltd., a Delaware corporation, having its corporate headquarters
at 1301 East Broward Blvd, Fort Lauderdale, Florida (“Company”), and Andrew Taylor, an individual residing
at 816 Winter Road, Rydal, PA 19046 (“Executive”) (Company and Executive, each a “Party”
and together, the “Parties”).

 

WHEREAS,
Company desires to employ Executive as its Chief Financial Officer; and

 

WHEREAS,
Executive is willing to accept such employment on the terms and conditions set forth in this Agreement.

 

NOW,
THEREFORE, in consideration of the mutual agreements set forth herein, Company and Executive hereby agree as follows:

 

ARTICLE
I

EMPLOYMENT;
POSITION, DUTIES AND RESPONSIBILITIES

 

1.01       Employment
and Acceptance. Company agrees to, and does hereby, employ Executive, and Executive agrees to, and does hereby accept, such
employment, upon the terms and subject to the conditions set forth in this Agreement.

 

1.02       Position,
Duties and Responsibilities. During the Term (as defined in Section 2.01 below), Executive shall serve as Chief Financial
Officer of Company as well as in such other positions or capacities as may be reasonably requested by the Board of Directors of
Company (the “Board”) or the Chief Executive Officer of Company (the “CEO”) and shall have
such duties and responsibilities as are customary for, and are consistent with, such position(s) as may, from time to time, be
assigned by the Board, the CEO and/or any of their respective nominees. Executive’s employment by Company shall be full-time
and exclusive to Company and Executive shall (a) report to Company’s CEO, (b) comply with Company’s policies and procedures
in place from time to time, and (c) serve Company faithfully and to the best of Executive’s ability. During the Term, and
except for paid time off in accordance with the terms of Section 3.01(G) below or absences due to illness or incapacity, Executive
shall devote all of Executive’s business time, attention, skill and efforts exclusively to the business and affairs of Company
(including its affiliates) and the promotion of its interests. Notwithstanding anything contained herein to the contrary, Executive
may do the following, provided that such activities do not inhibit or prohibit the performance of Executive’s duties hereunder
or inhibit or conflict with the business of Company and/or its affiliates: (i) engage in charitable, educational, religious, civic
and similar types of activities and manage Executive’s personal investments, and (ii) with consent of the Board which shall
not be unreasonably withheld, serve on the board of directors, managers, advisors (or their equivalent) of outside business enterprises
for up to 30 hours in the aggregate per calendar quarter (including but not limited to AngelMed, GenPro, and eNeura). Executive
shall be required to spend on average eight days per month at the Company’s corporate offices in either Florida or Israel
including travel. Executive acknowledges that he shall be required to travel as reasonably necessary to perform Executive’s
duties hereunder, including international travel.

 

    	 

    	 

    

 

ARTICLE
II

TERM

 

2.01       Term
of Employment. Executive’s employment under this Agreement shall commence on August 16, 2017 (the “Commencement
Date”) and shall continue for two years, unless terminated sooner by either Company or Executive pursuant to Article
IV hereof. The Term shall thereafter be deemed to be automatically extended, upon the same terms and conditions, for successive
periods of one year, unless either Party, at least one hundred twenty (120) days prior to the expiration of the original term
or any extended term, shall give written notice to the other of its intention not to renew such employment term. The period during
which Executive is employed pursuant to this Agreement, including any extension thereof in accordance with the preceding sentence,
shall be referred to as the “Term.” It is understood and agreed that, for purposes of this Agreement, the non-renewal
of this Agreement by either party shall not be deemed to be a termination of Executive’s employment hereunder without “Cause”
(as defined below).

 

ARTICLE
III

COMPENSATION
AND BENEFITS; EXPENSES

 

3.01       Compensation
and Benefits. For all services rendered by Executive in any capacity during the Term (including, without limitation, serving
as an officer, director or member of any committee of Company or any affiliate or division thereof), Executive shall be compensated
as follows (subject, in each case, to the provisions of Article IV below):

 

(A)       Base
Salary. During the Term, Company shall pay to Executive a base salary at the initial rate of $295,000 on an annualized basis
(the “Base Salary”). As used in this Agreement, the term “Base Salary” shall refer to Base
Salary as may be adjusted from time to time with the consent of the Company and the Executive. Base Salary shall be payable in
accordance with the customary payroll practices of Company.

 

(B)       Starting
Bonus. Executive shall be eligible to receive a starting bonus of $15,000.00 payable on the next regular paydate following
the six month anniversary of the Commencement Date, provided Executive is actively employed in good standing on such date.

 

(C)       Relocation
Bonus. The Company agrees to reimburse the Executive for reasonable and customary expenses that the Executive incurs through
the twenty-fourth month anniversary of the Commencement Date, in an amount up to $35,000, if Executive elects to relocate to Florida
and upon presentation of receipts associated with Executive’s relocation to Florida.

 

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(D)       First
Year Bonus. Executive shall be eligible to receive a bonus of up to $30,000.00 payable on the next regular paydate following
the one year anniversary of the Commencement Date (the “First Year Bonus”), provided Executive is actively
employed in good standing on such date. Seventy percent (70%) of the First Year Bonus shall be based upon the Company’s
determination of whether the Company has achieved certain designated milestones (such milestones to be communicated to Executive
in advance of the Commencement Date) and thirty percent (30%) of the First Year Bonus shall be based upon the Company’s
assessment of the Executive’s performance, as determined in the Board’s discretion and judgment.

 

(E)       Second
Year Bonus. Executive shall be eligible to receive a bonus of up to $35,000.00 payable on the next regular paydate following
the two year anniversary of the Commencement Date (the “Second Year Bonus”), provided Executive is actively
employed in good standing on such date. Seventy percent (70%) of the Second Year Bonus shall be based upon the Company’s
determination of whether the Company has achieved certain designated milestones (such milestones to be communicated to Executive
in advance of Second Year) and thirty percent (30%) of the Second Year Bonus shall be based upon the Company’s assessment
of the Executive’s performance, as determined in the Board’s discretion and judgment.

 

(F)       Equity
Compensation. Pursuant to the terms of the Company’s Equity Incentive Plan (the “Plan”), Executive
shall, as soon as reasonably practicable after the Commencement Date, be granted an option (the “Option”) to
purchase 240,000 shares of the Company’s common stock (the “Common Stock”). The Option shall vest equally
over three (3) years on a quarterly basis. The exercise price of the Option will be equal to the fair market value of the Common
Stock on the date of grant, as determined by the Board in a manner consistent with Section 409A of the Code. The Option will be
governed by a stock option agreement to be entered into between Executive and the Company pursuant to the Plan. Thereafter during
the Term, Executive shall be eligible to receive from time to time stock option grants and/or restricted stock awards pursuant
to the Plan in amounts, if any, to be approved by the Board or the Compensation Committee in its discretion. Such grants or awards
will be subject to the terms and conditions established within the Plan (or any successor equity compensation plan as may be in
place from time to time) and separate stock option and/or restricted stock award agreements between Company and Executive that
sets forth the terms of the award or grant. If there is a Change of Control, the Company agrees that all outstanding unvested
equity options or rights granted to the Executive during the Term shall become fully vested and exercisable for the remainder
of their full term. A “Change in Control” shall mean the consummation of any one of the following events: (a)
a sale, lease, transfer or other disposition of all or substantially all of the assets of the Company; (b) a consolidation or
merger of the Company with or into any other corporation or other entity or person, or any other corporate reorganization, in
which the stockholders of the Company immediately prior to such consolidation, merger or reorganization, own less than fifty percent
(50%) of the Company’s outstanding voting power of the surviving entity following the consolidation, merger or reorganization;
(c) any transaction (or series of related transactions involving a person or entity, or a group of affiliate persons or entities)
in which in excess of fifty percent (50%) of the Company’s then outstanding voting power is transferred, excluding any consolidation
or merger, effected exclusively to change the domicile of the Company and excluding any such change of voting power resulting
from a bona fide equity financial event or public offering of the stock of the Company.

 

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(G)       Benefits.
During the Term, Executive shall be entitled to participate in all Executive benefit plans and programs (excluding severance plans,
if any) generally made available by Company to Executives of Company, to the extent permissible under the general terms and provisions
of such plans or programs and in accordance with the provisions thereof. Company may amend, modify or rescind any employee benefit
plan or program and/or change employee contribution amounts to benefit costs without notice in its discretion. Executive’s
eligibility for severance shall be governed by the terms of this Agreement.

 

(H)       Paid
Time Off (PTO). During the Term, Executive shall be entitled to paid time off in accordance with Company’s policy in
place from time to time; provided, however, that Executive shall be eligible to accrue no less than twenty (20) days per
calendar year (with such amount prorated for the balance of 2017).

 

3.02       Expenses.
Executive shall be entitled to receive reimbursement from Company for reasonable out-of-pocket expenses incurred by Executive
during the Term in connection with the performance of Executive’s duties and obligations under this Agreement, according
to Company’s expense account and reimbursement policies in place from time to time and provided that Executive shall submit
reasonable documentation with respect to such expenses; provided, however, in no event shall a reimbursement be made later
than December 31 of the year following the year in which the expense was incurred. For purposes of clarity, notwithstanding the
Company’s expense account and reimbursement policies, Executive is permitted to travel by air in business class or equivalent
if the trip is international and if flight time (one-way) of such international trip is greater than six hours. Further, for all
air, lodging, ground transportation and related expenses associated with Executive’s business travel, Executive is eligible
to retain in his own personal account all points, mileage and equivalent affinity benefits associated with that travel.

 

ARTICLE
IV

TERMINATION

 

4.01       Events
of Termination. This Agreement and Executive’s employment hereunder shall terminate upon the occurrence of any one or
more of the following events:

 

(A)       Death.
In the event of Executive’s death, this Agreement and Executive’s employment hereunder shall automatically terminate
on the date of death.

 

(B)       Disability.
To the extent permitted by law, in the event of Executive’s physical or mental disability that prevents Executive from performing
the essential functions of Executive’s duties under this Agreement (with or without reasonable accommodation) for a period
of at least ninety (90) consecutive days in any 12-month period or one hundred twenty (120) non-consecutive days in any 12-month
period, Company may terminate this Agreement and Executive’s employment hereunder upon giving written notice of termination
to Executive.

 

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(C)       Termination
by Company for Cause. Company may, at its option, terminate this Agreement and Executive’s employment hereunder for
Cause (as defined below) upon giving notice of termination to Executive. As used in this Agreement, “Cause”
shall mean the termination of the Executive’s employment because of:

 

(1)       gross
negligence or willful misconduct in the performance of the Executive’s duties hereunder, or if the Executive otherwise breaches
this Agreement;

 

(2)       the
Executive’s failure to obey a lawful directive that is from the CEO or the Board, which failure is not cured within 15 days
written notice of the alleged failure to perform;

 

(3)       a
material violation of the restrictive covenants described in Article V below or of any written employee conduct policy of the
Company against workplace harassment or discrimination); or

 

(4)       conviction
of a felony or other serious crime; or

 

(5)       any
other act or omission that results in material harm to the business, reputation of the Company.

 

(D)       Without
Cause by Company. Company may, at its option, at any time terminate this Agreement and Executive’s employment hereunder
for no reason or for any reason whatsoever (other than for Cause or as a result of Executive’s death or Disability) by giving
written notice of termination to Executive.

 

(E)       Termination
by Executive. Executive may terminate this Agreement and Executive’s employment hereunder with or without Good Reason
(as defined below) by: (i) in the case of a resignation without Good Reason, giving thirty (30) days prior written notice of termination
to Company; or (ii) in the case of a resignation for Good Reason, giving written notice of resignation within thirty (30) days
after the expiration of the Good Reason Cure Period; provided, however, in each case, Company reserves the right, upon
written notice to Executive, to accept Executive’s notice of resignation and to accelerate such notice and make Executive’s
resignation effective immediately, or on such other date prior to Executive’s intended last day of work as Executive deems
appropriate. The Company’s election to accelerate Executive’s notice of resignation shall not be deemed a termination
by Company. For purposes of this Agreement, “Good Reason” means the occurrence of any of the following circumstances
without Executive’s prior express written consent: (i) a material adverse change in the nature of Executive’s title,
duties or responsibilities with the Company that represents a material demotion from his title, duties or responsibilities as
in effect immediately prior to such change; (ii) a material breach of this Agreement by the Company; (iii) a failure by the Company
to make any payments to Executive when due, unless the payment is not material and is being contested by the Company, in good
faith; (iv) the Company’s performance of any illegal or civilly actionable act that materially damages Executive’s
reputation or is considered harassment under applicable law; (v) any material reduction of the Executive’s then current
annual Base Salary except to the extent that the annual Base Salary of all other similarly situated employees of the Company or
its successor is similarly reduced; (vi) any requirement that the Executive relocate to a work site that is more than fifty miles
from his home; or (vii) a liquidation, bankruptcy or receivership of the Company. Notwithstanding the foregoing, no Good Reason
shall be deemed to exist with respect to the Company’s acts described in clause (i) above, unless Executive shall have given
written notice to the company specifying the Good Reason with reasonable particularity within (ninety) 90 days after the date
Executive first knew or should reasonably have known of the occurrence of any such event and, within fifteen (15) days after such
notice, the Company shall not have cured or eliminated the problem or thing giving rise to such Good Reason; provided,
however, that a repeated breach after notice and cure of any provision of clause (i) above involving the same or substantially
similar actions or conduct, shall be grounds for termination for Good Reason without any additional notice from Executive. If
Executive fails to provide the notice and Good Reason Cure Period prior to Executive’s resignation, or resigns more than
ninety (90) days after the initial existence of the condition, Executive’s resignation will not be deemed to be for “Good
Reason” and any claim of such circumstances as “Good Reason” shall be deemed irrevocably waived by Executive.

 

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(F)       Mutual
Agreement. This Agreement and Executive’s employment hereunder may be terminated at any time by the mutual agreement
of Company and Executive.

 

4.02       Company’s
Obligations upon Termination.

 

(A)
Termination by Company for Cause; Termination by Executive without Good Reason; Mutual Agreement; Death; Disability. In
the event of a termination of this Agreement and Executive’s employment hereunder pursuant to Sections 4.01(A), 4.01(B),
4.01(C), 4.01(E) (other than a termination for Good Reason), or 4.01(F) above, then this Agreement and Executive’s employment
with Company shall terminate and Company’s sole obligation to Executive (or Executive’s estate, heirs, executors,
administrators, representatives and assigns) under this Agreement or otherwise shall be to: (i) pay to Executive (or, if applicable,
Executive’s estate) any Base Salary earned, but not yet paid, prior to the effective date of such termination, payable in
accordance with Company’s standard payroll practices; (ii) reimburse Executive (or, if applicable, Executive’s estate)
for any expenses incurred by Executive through the effective date of such termination in accordance with Section 3.02 above; and
(iii) pay and/or provide any amounts or benefits that are vested amounts or vested benefits or that Executive is otherwise entitled
to receive under any plan, program, policy or practice (with the exception of those, if any, relating to severance) on the date
of termination, in accordance with such plan, program, policy, or practice (including payment for unused, accrued vacation) (clauses
(i), (ii) and (iii) of this sentence are collectively referred to herein as the “Accrued Obligations”).

 

(B)
       Termination by Company without Cause; Termination by Executive for Good Reason.
In the event of a termination of this Agreement and Executive’s employment hereunder by Company pursuant to Section 4.01(D)
or a termination of this Agreement and Executive’s employment hereunder by Executive for Good Reason (as defined in Section
4.01(E) above) pursuant to Section 4.01(E), then this Agreement and Executive’s employment with Company shall terminate
and Company’s sole obligation to Executive under this Agreement or other otherwise shall be to: (i) pay and/or provide,
as applicable, the Accrued Obligations in accordance with the terms set forth in Section 4.02(A) above; and (ii) subject to Section
4.02(C) below, and provided Executive has been actively employed in good standing for at least 91 days from the Commencement Date
(a) pay to Executive an aggregate amount equal to the Severance Payment (as defined below), (b) if Executive timely elects COBRA
coverage, Company shall pay the Company portion of Executive’s healthcare continuation payments under COBRA for a twelve
(12)-month period following the date of Executive’s termination of employment with Company during which time Executive shall
be responsible for the Executive portion (unless Executive becomes eligible to obtain healthcare coverage from a new Company before
the 12-month anniversary of the termination of Executive’s employment, in which case Company’s obligation to contribute
to Executive’s health care continuation payments under COBRA shall cease), and (c) the Company agrees to accelerate the
vesting of any options that otherwise would have vested on the last day of the calendar quarter during which the termination date
occurred. Executive acknowledges that he is obligated to inform Company if Executive obtains new employment or becomes eligible
to obtain healthcare coverage from an alternate source before the twelve (12)-month anniversary of Executive’s termination
of employment.

 

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As
used in this Section 4.02(B), the term “Severance Payment” shall mean the following: (x) zero dollars if Executive
has been employed by the Company for less than 91 days; (y) continuation of Executive’s regular Base Salary for six months,
if, on the termination date, Executive has been actively employed in good standing with the Company for at least 91 days and up
to eighteen months; and (z) continuation of Executive’s regular Base Salary for nine months if, on the termination date,
Executive has been actively employed in good standing with the Company for at least eighteen months, with all amounts offset by
any subsequent salary or consulting fees that the Executive receives from any alternate source during the applicable severance
period. Subject to Section 4.02(E) below, the Severance Payment (less applicable withholdings and customary payroll deductions,
excluding 401(k) contributions) shall be payable in equal installments in accordance with Company’s customary payroll practices,
commencing on the next regular pay date following the date that the Release (as defined in Section 4.02(D) below) becomes effective
and is no longer subject to revocation; provided, however, the first payment shall include the cumulative amount of payments
that would have been paid to Executive during the period of time between the effective date of termination and the actual commencement
date of such payments had such payments commenced immediately following the effective date of Executive’s termination.

 

Notwithstanding
anything set forth in this Section 4.02(B) to the contrary, in the event of a breach by Executive under Article V of this Agreement
or the Release and in addition to any other remedies hereunder, the Release or at law or in equity, Company’s obligation
to make any remaining installments of the Severance Payment or to contribute to Executive’s health care continuation payments
under COBRA through the 12-month anniversary of the date of termination shall terminate as of the date of such breach and Company
shall have no further obligations under this Section 4.02(B) other than to pay/provide the Accrued Obligations (to the extent
not previously paid/provided) and Executive shall be required, upon demand, to return to Company fifty percent (50%) of the Severance
Payment (or installments thereof) paid by the Company pursuant to this Section 4.02(B).

 

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(C)       Release.
With the exception of Accrued Obligations, all payments and benefits to Executive pursuant to this Section 4.02 (including the
Severance Payment and the contribution to the Company portion of Executive’s healthcare continuation payments under COBRA)
shall be contingent upon Executive’s execution, delivery within 21 days (or 45 days in the case of a group termination)
following receipt by Executive, and non-revocation of a general release in a form satisfactory to Company (the “Release”).
The Release will be delivered to Executive within ten (10) business days following the effective date of Executive’s termination
and will include, without limitation, a general release from all liability of Company, its affiliates and each of their respective
officers, directors, shareholders, partners, managers, agents, Executives and other related parties. Notwithstanding anything
to the contrary contained herein, in the event that any payment hereunder is contingent upon Executive’s execution and delivery
of the Release and the 21 (or 45 day) period covers more than one calendar year, the payment shall be paid in the second calendar
year (on the first regular pay date of such calendar year following the date that the Release becomes effective and is no longer
subject to revocation, all subject to Section 4.02(D) below), regardless of whether the Executive executes and delivers the Release
in the first or the second calendar year encompassed in such 21 (or 45) day period.

 

(D)       Specified
Employee. If the Executive is a “specified employee” within the meaning of Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”) at the time of the Executive’s termination of employment,
amounts or benefits (including the Severance Payments) that are deferred compensation subject to Section 409A of the Code, as
determined in the reasonable discretion of the Company, that would otherwise be payable or provided during the six month period
immediately following the termination of employment will instead be paid or provided, with interest on any delayed payment at
the short-term applicable federal rate under Section 1274(d) of the Code (with monthly compounding and at the rate published for
the month prior to the month in which the Executive’s termination of employment occurs), on the first business day after
the date that is six months following the Executive’s termination of employment.

 

(E)       Removal
from any Positions. If Executive’s employment is terminated for any reason under this Agreement, Executive shall be
deemed to resign from any position with Company or any affiliate of Company, including, but not limited to, as an officer of Company
or any of its affiliates.

 

ARTICLE
V

CONFIDENTIALITY,
NONCOMPETITION, NONSOLICITATION AND OTHER COVENANTS

 

5.01       Confidentiality.
Executive shall be provided with access to Confidential Information relating to the Company, its business, potential business
or that of its clients and customers. “Confidential Information” includes all trade secrets, know-how, show-how,
theories, technical, operating, financial, and other business information, whether or not reduced to writing or other medium and
whether or not marked or labeled confidential, proprietary or the like, specifically including, but not limited to, information
regarding source codes, software programs, computer systems, concepts, creations, costs, plans, materials, enhancements, research,
specifications, works of authorship, techniques, documentation, models and systems, sales and pricing techniques, designs, inventions,
discoveries, products, improvements, modifications, methodology, processes, concepts, records, files, memoranda, reports, plans,
proposals, price lists, product development and project procedures. Confidential Information does not include general skills,
experience or information that is generally available to the public, other than information which has become generally available
as a result of Executive’s direct or indirect act or omission. With respect to Confidential Information of the Company and
its clients and customers:

 

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(A)       Executive
will use Confidential Information only in the performance of Executive’s duties for Company. Executive will not use Confidential
Information at any time (during or after Executive’s employment with Company) for Executive’s personal benefit, for
the benefit of any other individual or entity, or in any manner adverse to the interests of Company and its clients and customers
except to the extent permitted by applicable law, including to enable Executive to exercise any protected legal right he may have;

 

(B)       Executive
will not disclose Confidential Information at any time (during or after Executive’s employment with Company) except to authorized
Company personnel, unless Company consents in advance in writing or unless the Confidential Information indisputably becomes of
public knowledge or enters the public domain (other than through Executive’s direct or indirect act or omission) or as authorized
by a court or regulatory agency.

 

(C)       Executive
will safeguard the Confidential Information by all reasonable steps and abide by all policies and procedures of Company in effect
from time to time regarding storage, copying, destroying, and handling of documents; and

 

(D)       Executive
will return or destroy all materials, models, software, prototypes and the like containing and/or relating to Confidential Information,
together with all other property of Company and its clients and customers, to Company when Executive’s employment relationship
with Company terminates or otherwise on demand and, at that time Executive will certify to Company, in writing and under oath,
that Executive has complied with this Agreement. Executive shall not retain any copies or reproductions of correspondence, memoranda,
reports, notebooks, drawings, photographs, databases, diskettes, or other documents or electronically stored information of any
kind relating in any way to the business, potential business or affairs of Company and its clients and customers.

 

(E)       Executive acknowledges receipt of the following notice under the Defend Trade Secrets Act: An individual will not be held criminally
or civilly liable under any federal or state trade secret law for the disclosure of a trade secret if he/she (i) makes such disclosure
in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney and such disclosure
is made solely for the purpose of reporting or investigating a suspected violation of law; or (ii) such disclosure was made in
a complaint or other document filed in a lawsuit or other proceeding if such filing is made under seal.

 

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5.02       Obligations
to Other Persons. Executive does not have any non-disclosure or other obligations to any other individual or entity (including
without limitation, any previous Company) concerning proprietary or confidential information that Executive learned of during
any previous employment or associations that would conflict with the Executive’s obligations to Company under this Agreement.
Executive shall not disclose to Company or induce Company to use any secret or confidential information or material belonging
to others, including, without limitation, Executive’s former employers, if any. Executive does not have any non-competition
agreements, non-solicitation agreements or other restrictive covenants with any previous Company or other individual or entity
that would conflict with the Executive’s obligations to Company under this Agreement.

 

5.03       Covenants
Against Competition and Solicitation.

 

Executive
acknowledges and understands that, Executive’s position with Company affords Executive extensive access to Confidential
Information of the Company. Executive therefore agrees that during the course of Executive’s employment with Company and
for twelve (12) months after termination of Executive’s employment with Company (for any reason or no reason) (collectively,
“Restricted Period”), Executive shall not: (i) anywhere within the United States of America or any other country
in which the Company then conducts or proposes to conduct business, either directly or indirectly, as an owner, stockholder, member,
partner, joint venturer, officer, director, consultant, independent contractor, agent or Executive, engage in any business or
other commercial activity which is engaged in or is seeking to engage in a “Competitive Business.” As used in this
Agreement, “Competitive Business” shall mean any individual or enterprise engaged in (x) cleansing of body
cavities, tubular structures or other orafices or devices added on or attached to endoscopes or (y) any other business directly
competitive with the business of the Company on the date of termination.

 

Executive
further agrees that, during the Restricted Period, Executive shall not, directly or indirectly, either on Executive’s own
behalf or on behalf of any other individual or commercial enterprise: (i) contact, communicate, solicit or transact any business
with or assist any third party in contacting, communicating, soliciting or transacting any business with (A) any of the customers
or clients of the Company, or (B) any individual or entity who or which was within the most recent twelve (12) month period a
customer or client of Company, for the purpose of inducing such customer or client or potential customer or client to be connected
to or benefit from any competitive business or to terminate its or their business relationship with the Company; (ii) solicit,
induce or assist any third party in soliciting or inducing any individual or entity who is then (or was at any time within the
preceding six (6) an employee or full-time consultant, independent contractor or agent of Company) to leave the employment of
the Company or cease performing services for the Company; (iii) hire or engage or assist any third party in hiring or engaging,
any individual or entity that is or was (at any time within the preceding six (6) months) an employee or full-time consultant,
independent contractor or agent of the Company, or (iv) solicit, induce or assist any third party in soliciting or inducing any
other person or entity (including, without limitation, any third-party service provider or distributor) to terminate its relationship
with the Company or otherwise interfere with such relationship.

 

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5.04       Cooperation
With Investigations/Litigation. Executive agrees, upon Company’s request, to reasonably cooperate both during and after
Executive’s employment with Company in any Company investigation, litigation, arbitration, or regulatory proceeding regarding
events that occurred during Executive’s tenure with Company. Executive will make himself reasonably available to consult
with Company’s counsel, to provide information, and to appear to give testimony. Company will reimburse Executive for reasonable
out-of-pocket expenses Executive incurs in extending such cooperation, so long as Executive provides advance written notice of
Executive’s request for reimbursement and provides satisfactory documentation of the expenses.

 

5.05       Reasonable
Restrictions/Damages Inadequate Remedy. The Parties to this agreement acknowledge that the restrictions contained in this
Article are reasonable and necessary to protect the legitimate business interests of Company and that any breach by Executive
of any provision contained in this Article may result in immediate irreparable injury to Company for which a remedy at law would
be inadequate. Accordingly, the Parties shall be entitled to temporary or permanent injunctive or other equitable relief (without
being obligated to post a bond or other collateral) in the event of any breach or threatened breach of the provisions of this
Article, in addition to any other remedy that may be available whether at law or in equity.

 

5.06       Separate
Covenants. In the event that an arbitrator or any court of competent jurisdiction shall determine that any one or more of
the provisions contained in this Article shall be unenforceable in any respect,
then such provision shall be deemed limited and restricted to the extent that the adjudicator shall deem the provision to be enforceable.
It is the intention of the parties to this Agreement that the covenants and restrictions in this Article be given the broadest
interpretation permitted by law. The invalidity or unenforceability of any provision of this Article shall not affect the validity
or enforceability of any other provision hereof. If, in any judicial or arbitration proceedings, a court of competent jurisdiction
or arbitration panel should refuse to enforce all of the separate covenants and restrictions in this Article, then such unenforceable
covenants and restrictions shall be eliminated from the provisions of this Agreement for the purpose of such proceeding to the
extent necessary to permit the remaining separate covenants and restrictions to be enforced in such proceeding.

 

5.07       Ownership
of Proprietary Rights

 

(A)       Proprietary
Rights. “Proprietary Rights” means all right, title and interest (including any copyrights, patent rights,
trademarks, servicemarks and trade names) in and to, or associated with, or arising from, any and all notes, data, reference materials,
sketches, drawings, memoranda, documentation, and any and all work product conceived, created, reduced to any medium of expression
and/or produced as part of the activities of Executive for the Company, including all written, graphical, pictorial, visual, audio,
and audiovisual elements relating thereto, software code or records in any way incorporating or reflecting any Confidential Information
and any original works of authorship, derivative works, inventions, developments, concepts, know-how, improvements, trade secrets
or ideas, whether or not fixed in a tangible medium of expression, that are conceived or developed in whole or in part by the
Executive alone or in conjunction with others, whether or not conceived or developed during regular working hours by, or in association
with, the Company that are made through the use of any Confidential Information or any of the Company’s equipment, facilities,
supplies, or trade secrets, or that relate to the Company’s business or the Company’s actual or demonstrably anticipated
research and development, or that result from any work performed by the Executive for the Company.

 

    	 	-11-	 

    	 

    

 

(B)       Ownership
of Proprietary Rights. All Proprietary Rights shall belong exclusively to the Company, and the Executive agrees to assign
and hereby assigns to the Company, all rights, title and interest throughout the world in and to all Proprietary Rights. The Executive
agrees to promptly make full written disclosure to the Company, and will hold in trust for the sole right and benefit of the Company,
all Proprietary Rights. Upon request of the Company and without any separate compensation, the Executive shall take such action
and execute and deliver such documents and instruments as may be necessary or proper to vest in the Company all right, title and
interest in and to all such Proprietary Rights. Without limiting the foregoing, the Executive further agrees that for any original
works of authorship created by the Executive, the Company shall be deemed the author thereof under the United States Copyright
Act; provided, however, that in the event and to the extent such works do not to constitute “works made for
hire” as a matter of law, the Executive agrees to irrevocably assign and transfer, and hereby irrevocably assigns and transfers
to the Company, all right, title and interest in and to such works, including but not limited to copyrights.

 

(C)       Maintenance
of Records. The Executive covenants and agrees to take commercially reasonable measures to keep and maintain adequate and
current written records of all inventions and works of authorship made by the Executive (solely or jointly with others) during
the term of the Executive’s relationship with the Company. The records may be in the form of notes, sketches, drawings,
flow charts, electronic data or recordings, laboratory notebooks, and any other format. The records will be available to and remain
the sole property of the Company at all times. The Executive agrees not to remove such records from the Company’s place
of business except as expressly permitted by the Company policy, which may, from time to time, be revised at the sole election
of the Company. The Executive agrees to return all such records (including any copies thereof) to the Company at the time of termination
of services with the Company.

 

(D)       Recordation
of Rights. The Executive covenants and agrees to assist the Company, or its designee, at the Company’s expense, in every
proper way to secure the Company’s, or its designee’s, rights in the inventions and any copyrights, patents, trademarks,
servicemarks, moral rights, or other intellectual property rights relating thereto in any and all countries, including the disclosure
to the Company or its designee of all pertinent information and data with respect thereto, the execution of all applications,
specifications, oaths, assignments, recordations, and all other instruments that the Company or its designee shall deem necessary
in order to apply for, obtain, maintain and transfer such rights, or if not transferable, waive such rights, and in order to assign
and convey to the Company or its designee and any successors, assigns and nominees the sole and exclusive rights, title and interest
in and to such inventions, and any copyrights, patents or other intellectual property rights relating thereto. The Executive further
agrees that the obligation to execute or cause to be executed, when it is in the Executive’s power to do so, any such instrument
or papers shall continue after the termination of this Agreement until the expiration of the last such intellectual property right
to expire in any country of the world. If the Company or its designee is unable because of the Executive’s mental or physical
incapacity or unavailability or for any other reason to secure the Executive’s signature to apply for or to pursue any application
for any United States or foreign patents, copyrights, or other registrations covering inventions or works of authorship assigned
or to be assigned to the Company or its designee as above, then the Executive hereby irrevocably designates and appoints the Company
and its duly authorized officers and agents as the Executive’s agent and attorney-in-fact, to act for and on the Executive’s
behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the application
for, prosecution, issuance, maintenance or transfer of letters patent, copyright or other registrations thereon with the same
legal force and effect as if originally executed by the Executive. The Executive hereby waives and irrevocably quitclaims to the
Company or its designee any and all claims, of any nature whatsoever, that the Executive now or hereafter has for infringement
of any and all proprietary rights assigned to the Company or such designee.

 

    	 	-12-	 

    	 

    

 

ARTICLE
VI

MISCELLANEOUS

 

6.01       Benefit
of Agreement and Assignment. This Agreement shall inure to the benefit of Company, its affiliates and their respective successors
and assigns (including, without limitation, the purchaser of all or substantially all of the assets of Company and/or any of its
affiliates) and shall be binding upon Company and its successors and assigns. This Agreement also shall inure to the benefit of
and be binding upon Executive and Executive’s heirs, administrators, executors and assigns. Executive may not assign or
delegate Executive’s duties under this Agreement, without the prior written consent of Company.

 

6.02       Notices.
All notices, requests, demands and other communications required or permitted hereunder shall be given in writing and shall be
deemed to have been duly given (i) on the date delivered if personally delivered, (ii) upon receipt by the receiving party of
any notice sent by registered or certified mail (first-class mail, postage pre-paid, return receipt requested), (iii) by email,
or (iv) on the date targeted for delivery if delivered by nationally recognized overnight courier or similar courier service,
addressed in the case of Company to:

 

	Motus
    GI Medical Technologies Ltd.,	 	 
	1301
        East Broward Blvd

        
	 	with
    a copy which, itself, shall not constitute notice, to:
	Fort
Lauderdale, Florida 33301	 	Lowenstein
        Sandler LLP

        One
        Lowenstein Drive

	 	 	Roseland,
    NJ 07068
	Attn:
    Chief Executive Officer	 	Attn:
    Steven M. Skolnick, Esq.

 

and
in the case of Executive to:

 

	————

        ————

        ————
	 

 

    	 	-13-	 

    	 

    

 

Any
Party may notify the other party in writing of the change in address by giving notice in the manner provided in this Section 6.02.
Service of process in connection with any suit, action or proceeding (whether arbitration or otherwise) may be served on each
party hereto anywhere in the world by the same methods as are specified for the giving of notices under this Agreement.

 

6.03       Non-Disparagement.
During the Term and at all times thereafter, Executive agrees that Executive shall not knowingly disparage, criticize or otherwise
make any derogatory statements regarding Company or its past, present and future directors, officers, shareholders, employees,
agents or products.

 

6.04       Indemnification.
The Company indemnifies Executive to the maximum extent provided in the Company’s By-Laws and organizational documents,
as currently in effect. Executive shall be entitled to coverage under the directors and officers liability insurance on terms
no less favorable to him in any respect than the coverage then being provided to any other current or former director or officer
of the Company and which the Company shall maintain with minimum coverage of $1 million.

 

6.05       Arbitration.
With the exception of the Company’s right to seek injunctive relief in a court of competent jurisdiction to enforce Article
V, any dispute or controversy arising out of or relating to this Agreement or Executive’s performance thereunder shall be
exclusively settled by arbitration before a single arbitrator to be held in Florida in accordance with the rules then in effect
of the American Arbitration Association. The decision of the arbitrator shall be final, conclusive and binding on the parties
to the arbitration. Judgment may be entered on the arbitrator’s decision in any court having jurisdiction. The Company and
the Executive shall separately pay their own counsel fees and expenses. The arbitrator shall apply the laws of the State of Florida
with respect to interpretation, construction or enforcement of this Agreement without giving effect to the principles of conflicts
of law.

 

6.06       Entire
Agreement. This Agreement contains the entire agreement of the Parties with respect to the terms and conditions of Executive’s
employment during the Term and activities following termination of this Agreement and Executive’s employment with Company
and supersedes any and all prior agreements and understandings, whether written or oral, between the Parties with respect to the
subject matter of this Agreement. This Agreement may not be changed or modified except by an instrument in writing, signed by
both the Company and the Executive.

 

6.07.       Representation
and Warranties. Executive and Company each respectively represent and warrant to the other that (a) he/it has the legal capacity
to execute and perform this Agreement, (b) this Agreement is a valid and binding agreement enforceable against the parties according
to its terms, and (c) the execution and performance of this Agreement by him/it does not violate or conflict with the terms of
any existing agreement or understanding to which Executive or Company is a party or by which Executive or Company may be bound.

 

    	 	-14-	 

    	 

    

 

6.08       No
Attachment. Except as required by law, no right to receive payments under this Agreement shall be subject to anticipation,
commutation, alienation, sale, assignment, encumbrance, charge, pledge, or hypothecation or to execution, attachment, levy, or
similar process or assignment by operation of law, and any attempt, voluntary or involuntary, to effect any such action shall
be null, void and of no effect; provided, however, that nothing in this Section 6.06 shall preclude the assumption of such
rights by executors, administrators or other legal representatives of Company or Executive’s estate and their assigning
any rights hereunder to the person or persons entitled thereto.

 

6.09       Source
of Payment. All payments provided for under this Agreement shall be paid in cash from the general funds of Company. The Company
shall not be required to establish a special or separate fund or other segregation of assets to assure such payments, and, if
Company shall make any investments to aid it in meeting its obligations hereunder, Executive shall have no right, title or interest
whatever in or to any such investments except as may otherwise be expressly provided in a separate written instrument relating
to such investments. Nothing contained in this Agreement, and no action taken pursuant to its provisions, shall create or be construed
to create a trust of any kind, or a fiduciary relationship, between Company and Executive or any other person. To the extent that
any person acquires a right to receive payments from Company hereunder, such right, without prejudice to rights which Executives
may have, shall be no greater than the right of an unsecured creditor of Company.

 

6.10       No
Waiver. The waiver by any Party of a breach of any provision of this Agreement shall not operate or be construed as a continuing
waiver or as a consent to or waiver of any subsequent breach hereof.

 

6.11       Headings.
The Article and Section headings in this Agreement are for the convenience of reference only and do not constitute a part of this
Agreement and shall not be deemed to limit or affect any of the provisions hereof.

 

6.12       Validity.
The invalidity or enforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability
of any other provision or provisions of this Agreement, which shall remain in full force and effect.

 

6.13       Executive
Withholdings and Deductions. All payments to Executive hereunder shall be subject to such withholding and other Executive
deductions as may be required by law.

 

6.14       Counterparts.
This Agreement may be executed in one more counterparts, each of which shall be deemed to be an original but all of which together
will constitute one and the same instrument.

 

6.15       Agreement
to Take Actions. Each Party shall execute and deliver such documents, certificates, agreements and other instruments, and
shall take all other actions, as may be reasonably necessary or desirable in order to perform his or its obligations under this
Agreement.

 

    	 	-15-	 

    	 

    

 

6.16       Survival.
The terms of Section 4.02 and Articles V and VI of this Agreement shall survive the termination of this Agreement and Executive’s
employment hereunder.

 

6.17       Section
409A Compliance.

 

(A)       This
Agreement is intended to comply with the requirements of Section 409A of the Code (“Section 409A”) and regulations
promulgated thereunder. To the extent that any provision in this Agreement is ambiguous as to its compliance with Section 409A,
the provision shall be read in such a manner so that all payments due under this Agreement shall comply with Section 409A. For
purposes of section 409A, each payment made under this Agreement shall be treated as a separate payment. In no event may Executive,
directly or indirectly, designate the calendar year of payment. Notwithstanding anything contained herein to the contrary, Executive
shall not be considered to have terminated employment with Company for purposes of Section 4.02 of this Agreement unless Executive
would be considered to have incurred a “termination of employment” from Company within the meaning of Treasury Regulation
§1.409A-1(h)(1)(ii).

 

(B)       All
reimbursements provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A, including,
where applicable, the requirement that (i) any reimbursement is for expenses incurred during Executive’s lifetime (or during
a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement during a calendar
year may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of an eligible
expense will be made on or before the last day of the calendar year following the year in which the expense is incurred, and (iv)
the right to reimbursement is not subject to liquidation or exchange for another benefit.

 

(C)       Executive
acknowledges that, while the Parties endeavor to have this Agreement comply with the requirements of Section 409A, any tax liability
incurred by Executive under Section 409A is solely the responsibility of Executive.

 

6.18       Legal
Counsel. Executive represents that Company has previously recommended that Executive engage counsel to assist Executive in
reviewing this Agreement. Executive acknowledges that, prior to executing this Agreement, Executive has been given a reasonable
opportunity to review the Agreement and to consult with counsel as to its content and is entering into this Agreement freely and
voluntarily.

 

[Signatures
appear on the following page]

 

    	 	-16-	 

    	 

    

 

IN
WITNESS WHEREOF, Company and Executive have duly executed this Agreement as of the date first written above.

 

	 	COMPANY:
	 	 	 
	 	Motus GI Medical Technologies Ltd.
	 	 	 
	 	BY:	/s/
    Mark Pomeranz 
	 	Name:	Mark
    Pomeranz
	 	Title:	CEO
	 	 	 
	 	EXECUTIVE:
	 	 	 
	 	/s/ Andrew Taylor
	 	Andrew Taylor

 

    	 	-17-EXHIBIT 10.1

 

VERITIV CORPORATION

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (this “Agreement”) is dated as of December 29, 2017, between Veritiv Corporation, a Delaware corporation (the “Company”), and Mary A. Laschinger (the “Executive”).  As of the Effective Date, as defined in Section 2, below, this Agreement shall amend, restate and supersede, in its entirety, the Employment Agreement between xpedx Holding Company and the Executive, dated as of January 28, 2014 (the “Prior Agreement”).

 

W  I  T  N  E  S  S  E  T  H

 

WHEREAS, the Company desires to continue to employ the Executive as the Chief Executive Officer of the Company; and

 

WHEREAS, the Company and the Executive desire to amend and restate the Prior Agreement to reflect the Company’s incentive and retention objectives and current market practices.

 

NOW, THEREFORE, in consideration of the foregoing, of the mutual promises contained herein and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1.                                      POSITION AND DUTIES.

 

(a)                                 During the Employment Term (as defined in Section 2 hereof), the Executive shall serve as the Chief Executive Officer of the Company. In this capacity, the Executive shall have the duties, authorities and responsibilities that are reasonably associated with the Executive’s position as the Chief Executive Officer. The Executive will report directly to the board of directors of the Company (the “Board”).

 

(b)                                 During the Employment Term, the Executive shall devote all of the Executive’s business time to the performance of the Executive’s duties with the Company, provided that the foregoing shall not prevent the Executive from (i) serving on the boards of directors of non-profit organizations and, with the prior written approval of the Board, for-profit companies, (ii) participating in charitable, civic, educational, professional, community or industry affairs, and (iii) managing the Executive’s passive personal investments so long as such activities in the aggregate do not interfere or conflict with the Executive’s duties hereunder or create a business or fiduciary conflict.

 

(c)                                  During the Employment Term (as defined in Section 2 hereof), the Board shall nominate the Executive for re-election as the Chairman of the Board at the expiration of each current term, provided that the foregoing shall not be required to the extent prohibited by legal or regulatory requirements.

 

 

2.                                      EMPLOYMENT TERM. The Company agrees to employ the Executive pursuant to the terms of this Agreement, and the Executive agrees to be so employed, for a term (the “Initial Term”) commencing as of January 1, 2018 (the “Effective Date”) and ending on December 31, 2021. As of the date on which the Initial Term ends, and on each anniversary of such date, the term of this Agreement shall be automatically extended for successive one-year periods, provided, however, that either party hereto may elect not to extend this Agreement for such one-year period by giving written notice to the other party at least thirty (30) days prior to any then applicable expiration date. The period of time between the Effective Date and the end of the Initial Term or any successive one-year renewal period hereunder shall be referred to herein as the “Employment Term.” Notwithstanding the foregoing, the Employment Term may be earlier terminated in accordance with Section 7 hereof, subject to Section 8 hereof.

 

3.                                      BASE SALARY. The Company agrees to pay the Executive a base salary at an annual rate of not less than $1,000,000, payable in accordance with the regular payroll practices of the Company, but not less frequently than monthly. The Executive’s Base Salary shall be subject to annual review by the Board (or a committee thereof), and may be increased, but not decreased below its then current level, from time to time by the Board. The base salary as determined herein and adjusted from time to time shall constitute “Base Salary” for purposes of this Agreement.

 

4.                                      ANNUAL BONUS. During the Employment Term, the Executive shall be eligible to receive a cash-based annual incentive bonus under the Company’s annual bonus plan as may be in effect from time to time (the “Annual Bonus”) based on a target bonus opportunity of at least 130% of the Executive’s Base Salary (the “Target Bonus”), subject to the attainment of one or more pre-established performance metrics as may be established by the Board or the Company’s Compensation and Leadership Development Committee (the “Committee”) after consultation with the Executive.

 

5.                                      EQUITY AWARDS.

 

(a)                                 The Executive shall be eligible to participate in the Company’s long-term equity incentive program. During the Employment Term, the Executive will receive equity grants having a target annual grant date value equal to 450% of the Executive’s Base Salary (collectively referred to herein as the “LTIP Awards”). The terms and conditions of the LTIP Awards will be governed by the Company’s long-term equity incentive plan. The details of the LTIP Awards are subject to review and approval by the Committee. The Executive will be required to comply with the Company’s written stock ownership policy as may be in effect from time to time.

 

(b)                                 All LTIP Awards shall include the following terms and conditions: (i) in the event of a Qualifying Termination (as defined below), the continued employment requirement of any then outstanding LTIP Awards shall be deemed pro-rata satisfied as of such termination date and, to the extent that such LTIP Awards include performance requirements, such LTIP Awards shall remain outstanding until the end of the applicable performance period and shall vest based upon the actual satisfaction of the applicable performance goals and (ii) in the event of a Retirement (as defined below), the continued employment requirement of any then outstanding LTIP Awards granted six months or more prior to the effective date of such Retirement shall be 

 

2

 

deemed satisfied in full as of such termination date and to the extent that such LTIP Awards are subject to performance requirements measured over an incomplete performance period, such LTIP Awards shall remain outstanding until the end of the applicable performance period, at which time the number of shares that are deemed to have been earned and vested shall be determined as though the applicable performance requirements were satisfied at the greater of the actual level of performance or the target level of performance.  For purposes of clauses (i) and (ii) above, the Executive’s LTIP Award shall be settled within 60 days after they become vested, except as otherwise required to comply with Code Section 409A (as defined in Section 25).  For avoidance of doubt, for purposes of clause (i) above there shall be no double proration of awards that have performance requirements. For example, if the Executive has a Qualifying Termination upon completion of 60% of the employment requirement with respect to an LTIP Award that includes performance conditions, and upon the completion of the applicable performance period it is determined that the performance goals were satisfied at the applicable target level, then 60% of the target level LTIP Award shall become earned and payable in accordance with its terms. Notwithstanding the foregoing, in the event of a Qualifying Termination that occurs following a change in control (as such term is defined in the governing documents related to the LTIP Awards, the Executive shall be deemed to have satisfied 100% of any continued employment requirement with respect to any then outstanding LTIP Awards, provided that, for the avoidance of doubt, any performance vesting conditions related to such LTIP Awards will continue to be measured based upon actual performance except as otherwise provided by the Board or the Committee; provided, further, that in the event that Bain Capital Fund VII, L.P. or any of its affiliated investment funds or management companies (collectively, “Bain”) becomes a majority shareholder as a result of a Company purchase or other acquisition of shares, such ownership shall not constitute a change in control unless Bain replaces more than two Directors of the Board, whose appointment is not a replacement of a director previously appointed by Bain. The final terms and conditions of each LTIP Award will be set forth in the applicable grant documents related to such award and will be consistent with the Company’s long-term equity incentive program approved by the Committee for such year and may be modified as deemed necessary by the Company to comply with Code Section 409A (as defined in Section 25).

 

(c)                                  For purposes of this Section 5:

 

(i)                                     “Qualifying Termination” shall mean a termination of the Executive’s employment (i) by the Company other than for Cause (as defined below), (y) by the Executive for Good Reason (as defined below), or (z) due to the Executive’s Disability (as defined below) or death.

 

(ii)                                  “Retirement” shall mean the Executive’s bona fide retirement at or after the age of 60 with at least five years of service with the Company and its Subsidiaries, (A) that occurs following the Executive’s successful implementation of a succession plan in which she is succeeded by a well-trained or seasoned officer approved by the Board who is able to immediately assume the duties and responsibilities as chief executive officer and (B) following which the Executive does not engage in any services for any employer, other than: (i) post-termination services as a nonemployee director or consultant or (ii) services for which the Board provides its prior written consent.

 

3

 

6.                                      EMPLOYEE BENEFITS.

 

(a)                                 BENEFIT PLANS. The Executive shall be entitled to participate in any employee benefit plan (expected to include medical, dental, vision, disability, life insurance, and a defined contribution retirement program) that the Company has adopted or may adopt, maintain or contribute to for the benefit of its employees generally, subject to satisfying the applicable eligibility requirements, except to the extent such plans are duplicative of the benefits otherwise provided for hereunder. The Executive’s participation will be subject to the terms of the applicable plan documents and generally applicable Company policies. Notwithstanding the foregoing, the Company may add to, modify, or terminate any employee benefit plan at any time, provided that, with respect to any such change, the Executive is treated no less favorably than all other senior executives of the Company.

 

(b)                                 VACATIONS. During the Employment Term, the Executive shall be entitled to six (6) weeks of paid vacation per calendar year (prorated for partial years) in accordance with the Company’s policy on accrual and use applicable to employees as in effect from time to time.

 

(c)                                  OTHER PERQUISITES. During the Employment Term, the Executive shall be entitled to first class or business class airline travel for business use, with the additional use of NetJets or similar service, in each case in accordance with the Company’s policies on business travel as may be set by the Committee from time to time.

 

(d)                                 BUSINESS EXPENSES. Upon presentation of reasonable substantiation and documentation as the Company may specify from time to time, the Executive shall be reimbursed in accordance with the Company’s expense reimbursement policy, for all reasonable out-of-pocket business expenses incurred and paid by the Executive during the Employment Term and in connection with the performance of the Executive’s duties hereunder and the Company’s policies with regard thereto. The Company shall provide the Executive with customary administrative support, a PDA, a cell phone and computer with all such expenses paid for or reimbursed by the Company.

 

7.                                      TERMINATION. The Executive’s employment and the Employment Term shall terminate on the first of the following to occur:

 

(a)                                 DISABILITY. Upon ten (10) days’ prior written notice by the Company to the Executive of termination due to Disability. For purposes of this Agreement, “Disability” shall be defined as the inability of the Executive to have performed the Executive’s material duties hereunder, after reasonable accommodation, due to a physical or mental injury, infirmity or incapacity for at least one hundred eighty (180) days (including weekends and holidays) in any three hundred sixty-five (365)-day period as determined by the Board in its reasonable discretion. The Executive shall cooperate in all respects with the Company if a question arises as to whether the Executive has become disabled, including, without limitation, submitting to reasonable examinations by one or more medical doctors and other health care specialists selected by the Company and authorizing such medical doctors and other health care specialists to discuss the Executive’s condition with the Company.

 

(b)                                 DEATH. Automatically upon the date of death of the Executive.

 

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(c)                                  CAUSE. Immediately upon written notice by the Company to the Executive of a termination for Cause. “Cause” shall mean:

 

(i)                                     the Executive’s willful and material misconduct or gross negligence in the performance of the Executive’s duties to the Company which is demonstrably and materially injurious to the Company or the Executive’s willful performance of any material act of fraud, malfeasance or misappropriation of the Company’s property which is demonstrably and materially injurious to the Company;

 

(ii)                                  the Executive’s willful and repeated material failure to substantially perform the Executive’s duties to the Company or to follow the lawful directives of the Board (other than as a result of death or Disability);

 

(iii)                               the Executive’s conviction of, or pleading of guilty or nolo  contendere to, a felony or any crime involving moral turpitude;

 

(iv)                              the Executive’s willful performance of any material act of theft or embezzlement; or

 

(v)                                 The Executive’s material breach during the Employment Term of Sections 10, 11 or 12 of this Agreement which is demonstrably and materially injurious to the Company.

 

For purposes of this Section 7(c) no act, or failure to act, on the Executive’s part shall be deemed “willful” unless done, or omitted to be done, by Executive not in good faith and without reasonable belief that the Executive’s actions or omissions were in the best interests of the Company.

 

Notwithstanding the foregoing, the Executive shall not be deemed to have been terminated for Cause unless and until (x) a written demand is delivered to the Executive by the Board which demand specifically identifies, in good faith, the basis of its determination that “Cause” exists and facts then known to the Board that support its determination; (y) with respect to subparagraphs (i), (ii) and (v), the Executive is provided at least thirty (30) days following receipt of such written notice to fully correct in all material respects the circumstances or conduct giving rise to the Board’s determination that “Cause” exists, and (z) there shall have been delivered to Executive, following the Executive’s failure to cure (to the extent applicable), a copy of a resolution duly adopted by the affirmative vote of a majority of the Board (not including the Executive, as applicable) at a meeting of the Board called and held for such purpose, finding that in the good faith opinion of the Board the Executive was guilty of conduct set forth above in this Section 7(c) and specifying the particulars thereof in detail.

 

(d)                                 WITHOUT CAUSE. Immediately upon written notice by the Company to the Executive of an involuntary termination without Cause (other than for death or Disability).

 

(e)                                  GOOD REASON. Upon written notice by the Executive to the Company of a termination for Good Reason. “Good Reason” shall mean the occurrence of any of the following events, without the express written consent of the Executive, unless such events are fully

 

5

 

corrected in all material respects by the Company within thirty (30) days following written notification by the Executive to the Company of the occurrence of one of the reasons set forth below:

 

(i)                                     the assignment to the Executive of any duties with the Company (or with a successor company) inconsistent with Executive’s position, or an adverse alteration in the nature or status of Executive’s responsibilities;

 

(ii)                                  any diminution in the Executive’s Base Salary or Target Bonus, or failure to pay any compensation or benefits due to the Executive;

 

(iii)                               relocation of the Executive’s primary work location by more than 50 miles from the greater Atlanta, Georgia metropolitan area;

 

(iv)                              failure to appoint or reappoint the Executive as Chairman of the Board;

 

(v)                                 in the event that Bain acquires a majority of the shares of the Company, if thereafter Bain replaces more than two Directors of the Board, whose appointment is not a replacement of a director previously appointed by Bain; or

 

(vi)                              any material failure by the Company to satisfy any of its obligations under Sections 1 through 6 of this Agreement.

 

The Executive shall provide the Company with a written notice detailing the specific circumstances alleged to constitute Good Reason within ninety (90) days after the first occurrence of such circumstances, and actually terminate employment within thirty (30) days following the expiration of the Company’s thirty (30)-day period described above. Otherwise, any claim of such circumstances as “Good Reason” shall be deemed irrevocably waived by the Executive.

 

(f)                                   WITHOUT GOOD REASON.  Upon thirty (30) days’ prior written notice by the Executive to the Company of the Executive’s voluntary termination of employment without Good Reason (which the Company may, in its sole discretion, make effective earlier than any notice date).

 

(g)                                  EXPIRATION OF EMPLOYMENT TERM; NON-EXTENSION OF AGREEMENT.  Upon the expiration of the Employment Term due to a non-extension of the Agreement by the Company or the Executive pursuant to the provisions of Section 2 hereof.

 

8.                                      CONSEQUENCES OF TERMINATION.

 

(a)                                 DEATH. In the event that the Executive’s employment by the Company and the Employment Term ends on account of the Executive’s death, the Executive or the Executive’s estate, as the case may be, shall be entitled to the following (with the amounts due under Sections 8(a)(i) through 8(a)(iv) hereof to be paid within sixty (60) days following termination of employment, or such earlier date as may be required by applicable law):

 

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(i)                                     any unpaid Base Salary through the date of termination;

 

(ii)                                  any Annual Bonus earned but unpaid with respect to the fiscal year ending on or preceding the date of termination;

 

(iii)                               reimbursement for any unreimbursed business expenses incurred through the date of termination;

 

(iv)                              any accrued but unused vacation time in accordance with Company policy; and

 

(v)                                 all other payments, benefits or fringe benefits to which the Executive shall be entitled under the terms of any applicable compensation arrangement or benefit, equity or fringe benefit plan or program or grant or this Agreement, including without limitation any payments, benefits, or fringe benefits described in Sections  5(a), 5(b) and 6 (collectively, Sections 8(a)(i) through 8(a)(v) hereof shall be hereafter referred to as the “Accrued Benefits”).

 

(b)                                 DISABILITY. In the event that the Executive’s employment by the Company and the Employment Term ends on account of the Executive’s Disability, the Company shall pay or provide the Executive with the Accrued Benefits.

 

(c)                                  TERMINATION FOR CAUSE OR WITHOUT GOOD REASON OR AS A RESULT OF EXECUTIVE’S NON-EXTENSION OF THIS AGREEMENT.  If  the Executive’s employment by the Company and the Employment Term is terminated (x) by the Company for Cause, (y) by the Executive without Good Reason, or (z) as a result of the Executive’s non-extension of the Employment Term as provided in Section 2 hereof, the Company shall pay to the Executive the Accrued Benefits.

 

(d)                                 TERMINATION WITHOUT CAUSE OR FOR GOOD REASON OR AS A RESULT OF COMPANY NON-EXTENSION OF THIS AGREEMENT.  If the Executive’s employment by the Company and the Employment Term is terminated (x) by the Company other than for Cause, (y) by the Executive for Good Reason, or (z) as a result of the Company’s non- extension of the Employment Term as provided in Section 2 hereof, the Company shall pay or provide the Executive with the following, subject to the provisions of Section 25 hereof:

 

(i)                                     the Accrued Benefits;

 

(ii)                                  subject to the Executive’s continued compliance with Sections 9, 10, 11 and 12, a pro-rata portion of the Executive’s Annual Bonus for the fiscal year in which the Executive’s termination occurs based on actual results for such year (determined by multiplying the amount of such bonus which would be due for the full fiscal year by a fraction, the numerator of which is the number of days during the fiscal year of termination that the Executive is employed by the Company and the denominator of which is 365) payable at the same time bonuses for such year are paid to other senior executives of the Company;

 

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(iii)                               subject to the Executive’s continued compliance with Sections 9, 10, 11 and 12, an amount equal to the product of (x) 2.0 times (y) the sum of the Executive’s Base Salary and Target Bonus, with such total amount to be paid in monthly installments over the twenty-four (24) month period following such termination; provided, however, that to the extent that any portion of such payment constitutes “nonqualified deferred compensation” for purposes of Code Section 409A (as defined in Section 25 hereof), and such sixty (60)-day period begins in one calendar year and ends in another calendar year, payment of such benefit shall commence in such second calendar year and shall include payment of any amount that was otherwise scheduled to be paid prior thereto under this Section 8(d)(iii) hereof absent this proviso; and

 

(iv)                              subject to the Executive’s continued compliance with Sections 9, 10, 11 and 12 and the Executive’s timely election of continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) for the Executive and her eligible dependents, and the Executive’s continued copayment of premiums associated with such coverage, the Company shall reimburse the Executive, on a monthly basis, for the portion of the costs of continued health benefits for Executive and Executive’s covered dependents equal to the amount that the Company was paying immediately prior to such termination, with such reimbursement to continue for the eighteen (18) month period following such termination, or such earlier date on which COBRA coverage for the Executive and her covered dependents terminates in  accordance with COBRA; provided that the Executive is eligible and remains eligible for COBRA coverage. The Company may modify its obligation under this Section 8(d)(iv)  to the extent reasonably necessary (and to the minimum extent necessary) to avoid any penalty or excise taxes imposed on it in connection with the continued payment of premiums by the Company under the Patient Protection and Affordable Care Act of 2010, as amended.

 

Payments and benefits provided in this Section 8(d) shall be in lieu of any termination or severance payments or benefits for which the Executive may be eligible under any of the plans, policies or programs of the Company or under the Worker Adjustment Retraining Notification Act of 1988 or any similar state statute or regulation.

 

(e)                                  OTHER OBLIGATIONS. Upon any termination of the Executive’s employment with the Company, the Executive shall promptly resign from the Board and any other position Executive holds as an officer, director or fiduciary of any Company-related entity.

 

(f)                                   EXCLUSIVE REMEDY. The amounts payable to the Executive following termination of employment and the Employment Term hereunder pursuant to Sections 7 and 8 hereof shall be in full and complete satisfaction of the Executive’s rights under this Agreement.

 

9.                                      RELEASE. Any and all amounts payable and benefits provided pursuant to Sections 5 and 8 that are provided following a Qualifying Termination, other than the Accrued Benefits, shall only be payable if the Executive delivers to the Company and does not revoke a general release of claims in favor of the Company in substantially the form attached on Exhibit A hereto (the “General Release”). Such release must be executed and delivered (and no longer subject to revocation, if applicable) within sixty (60) days following termination. Failure to

 

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timely execute the General Release, or the Executive’s revocation of the General Release, shall result in the forfeiture of any such payments or benefits.

 

10.                               RESTRICTIVE COVENANTS.

 

(a)                                 NONDISCLOSURE.  Subject to Section 14, the Executive may use the Company’s Confidential Information and Trade Secrets (as defined below) (i) in the good faith performance of the Executive’s job duties at the Company and (ii) as required under applicable laws, regulations or directives of a governmental entity having jurisdiction in the matter or under valid subpoena, provided that the Executive shall promptly notify the Company in writing of any such request for disclosure. Otherwise, the Executive agrees during the Executive’s employment with the Company and for a period of five (5) years following the termination of the Executive’s employment (whether voluntary or involuntary) that the Executive will not use, disclose, or otherwise distribute the Company’s Confidential Information and Trade Secrets.  For purposes of this Agreement:

 

(i)                                     The term “Trade Secrets” means information, without regard to form, including, but not limited to, technical or nontechnical data, a formula, a pattern, a compilation, a program, a device, a method, a technique, a drawing, a process, financial data, financial plans, product plans, or a list of actual or potential customers or suppliers which is not commonly known by or available to the public and which information:  (A) derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and (B) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.  Trade secrets include, but are not limited to, a formula, pattern, technique, process, method, device or compilation of information possessed or owned by the Company which is used in the business of the Company and gives the Company an opportunity to obtain an independent economic advantage, actual or potential, over competitors who do not know or use it, and which the Company maintains the secrecy of.  It includes, but is not limited to, customer lists, information about customer behavior and preferences and other specialized requirements of the Company’s customers, the Company’s unique business model and unique business plan, pricing and marketing strategies, documents and information regarding the Company’s method of distribution, sales, costs, rebate program information, and source code for all software programs.

 

(ii)                                  the term “Confidential Information” includes, but is not limited to, any information possessed or owned by the Company which is not generally known to the public and which gives the Company a competitive advantage or its disclosure would harm the Company.  It includes, but is not limited to, proprietary information and all other information documents or materials, in whatever form, owned, developed or possessed by the Company or any employee of the Company, relating in any way to the Company’s customers, prospective customers, business plans, business relationships, products or processes, costs or profit  information or data from which that information could be derived, human resources (including internal evaluations of the performance, capability and potential of any Company employee), business methods, databases and computer programs, unpublished financial statements, licenses, prices and rates, costs, suppliers, and vendors.  Confidential Information also includes confidential or proprietary information

 

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received by the Company from third parties that is subject to a duty on the part of the Company to maintain the confidentiality thereof.  Confidential information does not include information which is or becomes generally known within the Company’s industry through no act or omission by the Executive; provided, however, that the compilation, manipulation, or other exploitation of generally known information may constitute Confidential Information.

 

(b)                                 INTELLECTUAL PROPERTY.  All intellectual property created by or accruing to the Executive, alone or in conjunction with others, as a result of the Executive’s employment with the Company (and all intellectual property created by or accruing to the Executive during the six (6) month period immediately following termination of the Executive’s employment with the Company to the extent such intellectual property pertains or applies to the business of the Company) belongs solely and exclusively to the Company.  Such intellectual property includes, but is not limited to, worldwide rights in or to:  inventions, improvements, and discoveries whether or not patentable; trade secrets and confidential information; patents and patent applications; works of authorship, copyrights and copyright registrations, and renewal, “moral” and similar rights applicable thereto; and product names, brand names, taglines, slogans, trademarks, service marks, and applications and registrations therefor. The Executive hereby assigns and shall assign any and all right, title and interest that she has or may have in such intellectual property, and she shall neither have nor retain any right, title or interest therein whatsoever. The Executive agrees that her compensation described herein fully compensates the Executive for assignment, transfer, release, or surrender (as the case may be) of such rights and that no royalty or additional compensation is payable as a result thereof.

 

(c)                                  NONCOMPETITION. The Executive acknowledges that (i) the Executive performs services of a unique nature for the Company that are irreplaceable, and that the Executive’s performance of such services to a competing business will result in irreparable harm to the Company, (ii) the Executive has had and will continue to have access to confidential information which, if disclosed, would unfairly and inappropriately assist in competition against the Company or any of its Subsidiaries (for purposes of this Agreement, “Subsidiaries” shall mean any corporation or other entity of which the securities or other ownership interests having the voting power to elect a majority of the board of directors or other governing body are, at the time of determination, owned by the Company, directly or through one or more Subsidiaries), (iii) the Company and its Subsidiaries have substantial relationships with their customers, and the Executive will have access to these customers during the Employment Period, (iv) the Executive has generated and will continue to generate goodwill for the Company and its Subsidiaries in the course of the Executive’s employment. Accordingly, during the Executive’s employment hereunder and for a period of two (2) years thereafter, the Executive agrees that the Executive will not, directly or indirectly, own, manage, operate, control, be employed by (whether as an employee, consultant, independent contractor or otherwise, and whether or not for compensation) or render services to any person, firm, corporation or other entity, in whatever form, materially engaged in the competitive business of selling or distributing the following products manufactured by third parties (x) printing and specialty papers, (y) packaging supplies and equipment, or (z) as it relates to printing and specialty papers, industrial and commercial maintenance supplies or graphic imaging supplies and equipment (collectively, the “Restricted Business”), in any locale of any country in which the Company conducts such business. Notwithstanding the foregoing, the Company agrees that customers and suppliers of the Company are not deemed to be competitive with the Company merely based upon such status.

 

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The Company also agrees that the Executive is not otherwise restricted by the foregoing after the Employment Term to the extent that the Restricted Business is incidental to the business engaged in by such firm, corporation or entity (e..g., Amazon) and the Executive is not directly involved in the Restricted Business of such firm, corporation, or entity. Nothing herein shall prohibit the Executive from being a passive owner of not more than one percent (1%) of the equity securities of a publicly traded corporation engaged in a business that is in competition with the Company or any of its Subsidiaries, so long as the Executive has no active participation in the business of such corporation.

 

(d)                                 NONSOLICITATION; NONINTERFERENCE. During the Executive’s employment with the Company and for a period of two (2) years thereafter, the Executive agrees that the Executive shall not, except in the furtherance of the Executive’s duties hereunder, directly or indirectly, individually or on behalf of any other person, firm, corporation or other entity, (i) solicit, aid or induce any known customer of the Company or any of its Subsidiaries to purchase goods or services then sold by the Company or any of its Subsidiaries from another person, firm, corporation or other entity or assist or aid any other person or entity in identifying or soliciting any such customer, (ii) solicit, aid or induce any known employee of the Company or any of its Subsidiaries to leave such employment or retention or to accept employment with or render services to or with any other person, firm, corporation or other entity unaffiliated with the Company or hire or retain any such employee, or take any action to materially assist or aid any other person, firm, corporation or other entity in identifying, hiring or soliciting any such employee or (iii) interfere, or aid or induce any other person or entity in interfering, with the relationship between the Company or any of its Subsidiaries and any of their respective vendors, joint venturers or licensors. An employee shall be deemed covered by this Section 10(d) while so employed and for a period of six (6) months thereafter, unless such employee was terminated by the Company. Notwithstanding the foregoing, the provisions of this Section 10(d) shall not be violated by general advertising or solicitation not specifically targeted at Company-related persons or entities.

 

(e)                                  REASONABLENESS OF COVENANTS. In signing this Agreement, the Executive gives the Company assurance that the Executive has carefully read and considered all of the terms and conditions of this Section 10 hereof. The Executive agrees that these restraints are necessary for the reasonable and proper protection of the Company and its Subsidiaries and their trade secrets and confidential information and that each and every one of the restraints is reasonable in respect to subject matter, length of time and geographic area, and that these restraints, individually or in the aggregate, will not prevent the Executive from obtaining other suitable employment during the period in which the Executive is bound by the restraints. The Executive acknowledges that each of these covenants has a unique, very substantial and immeasurable value to the Company and its Subsidiaries and that the Executive has sufficient assets and skills to provide a livelihood while such covenants remain in force. The Executive further covenants that the Executive will not challenge the reasonableness or enforceability of any of the covenants set forth in this Section 10. It is also agreed that each of the Company’s Subsidiaries will have the right to enforce all of the Executive’s obligations to that Subsidiary under Section 10 of this Agreement.

 

(f)                                   REFORMATION. If it is determined by a court of competent jurisdiction in any state that any restriction in this Section 10 is excessive in duration or scope or is unreasonable or

 

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unenforceable under applicable law, it is the intention of the parties that such restriction may be modified or amended by the court to render it enforceable to the maximum extent permitted by the laws of that state.

 

(g)                                  SURVIVAL OF PROVISIONS. The obligations contained in Sections 10 hereof shall survive the termination or expiration of the Employment Term and the Executive’s employment with the Company and shall be fully enforceable thereafter.

 

(h)                                 EQUITABLE RELIEF AND OTHER REMEDIES. The Executive acknowledges and agrees that the Company’s remedies at law for a breach or threatened breach of any of the provisions of Sections 10, 11 and 12 hereof would be inadequate and, in recognition of this fact, the Executive agrees that, in the event of such a breach or threatened breach, in addition to any remedies at law, the Company, shall be entitled to obtain equitable relief in the form of specific performance, a temporary restraining order, a temporary or permanent injunction or any other equitable remedy which may then be available, without the necessity of showing actual monetary damages or the posting of a bond or other security.

 

11.                               COOPERATION; FURTHER AGREEMENTS. During the Employment Period and for the two (2) year period thereafter, Executive shall cooperate with the Company in any internal investigation or administrative, regulatory or judicial proceeding as reasonably requested by the Company (including, without limitation, Executive being available to the Company upon reasonable notice for interviews and factual investigations, appearing at the Company’s request to give truthful and accurate testimony without requiring service of a subpoena or other legal process and turning over to the Company all relevant documents which are or may come into Executive’s possession, all at times and on schedules that are reasonably consistent with Executive’s other permitted activities and commitments). In the event the Company requires Executive’s cooperation in accordance with this paragraph following the end of the Employment Period, the Company shall pay Executive a per diem reasonably determined by the Board and reimburse Executive for reasonable expenses incurred in connection therewith (including lodging and meals, upon submission of receipts).

 

12.                                NONDISPARAGEMENT. Subject to Section 14, during the Employment Term and for a period of two (2) years thereafter, the Executive agrees not to disparage the Company or its officers, directors, employees, shareholders, agents or products other than in the good faith performance of the Executive’s duties to the Company while the Executive is employed by the Company or statements that the Executive in good faith believes are necessary or appropriate to make in connection with the performance of the Executive’s duties and obligations to the Company. The Company agrees that the individuals holding the positions of officers of the Company and the members of the Board will not, while employed by the Company or serving as a director of the Company, as the case may be, disparage the Executive. The foregoing shall not be violated by truthful statements in response to legal process, required governmental testimony or filings, or administrative or arbitral proceedings (including, without limitation, depositions in connection with such proceedings), and the foregoing limitation on the Company’s executives and directors shall not be violated by statements that they in good faith believe are necessary or appropriate to make in connection with performing their duties and obligations to the Company. The parties may seek appropriate equitable relief or bring a damages claim (based upon provable injury to either party) to enforce the provisions of this Section 12.  For the avoidance of doubt,

 

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any claimed breach by the Executive of this Section 12 shall not affect the Executive’s rights under Sections 7 or 8 of this Agreement.

 

13.                               RETURN OF COMPANY PROPERTY. On or before thirty (30) days following Executive’s termination of employment with the Company for any reason (or at any time prior thereto at the Company’s request), the Executive shall return all property belonging to the Company (including, but not limited to, any Company-provided laptops, computers, cell phones, wireless electronic mail devices or other equipment, or documents and property belonging to the Company). The Executive may retain the Executive’s rolodex and similar address books provided that such items only include contact information.

 

14.                               NOTICE OF IMMUNITY UNDER THE DEFEND TRADE SECRETS ACT AND OTHER STATUTORY RIGHTS.  The Executive acknowledges and agrees that the Company has provided the Executive with written notice that the Defend Trade Secrets Act, 18 U.S.C. § 1833(b), provides an immunity for the disclosure of a trade secret to report a suspected violation of law and/or in an anti-retaliation lawsuit, as follows:  (a) 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 is made: (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney and solely for the purpose of reporting or investigating a suspected violation of law; or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; and (b) 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 files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.  In addition, the Executive understands that nothing contained in this Agreement, the General Release, or elsewhere limits the Executive’s ability to report possible violations of law or regulation to, or file a charge or complaint with, the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Department of Justice, Congress, any Inspector General, or any other federal, state or local governmental agency or commission (“Government Agencies”).  Executive further understands that this Agreement does not limit Executive’s ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company.

 

15.                               NO ASSIGNMENTS. This Agreement is personal to each of the parties hereto. Except as provided in this Section 15 hereof, no party may assign or delegate any rights or obligations hereunder without first obtaining the written consent of the other party hereto. The Company may assign this Agreement to any successor to all or substantially all of the business and/or assets of the Company, provided that the Company shall require such successor to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in this Agreement, “Company” shall mean the Company and any successor to its business and/or assets, which assumes and agrees to perform the duties and obligations of the Company under this Agreement by operation of law or otherwise.

 

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16.                               NOTICE. For purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given(a) on the date of delivery, if delivered by hand, (b) on the date of transmission, if delivered by confirmed facsimile or electronic mail, (c) on the first business day following the date of deposit, if delivered by guaranteed overnight delivery service, or (d) on the fourth business day following the date delivered or mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

 

If to the Executive:

 

At the address (or to the facsimile number) shown in the books and records of the Company.

 

If to the Company:

 

Veritiv Corporation

Attention:  Senior Vice President, General Counsel and Corporate Secretary

1000 Abernathy Road NE
 Building 400, Suite 1700
 Atlanta, GA 30328

 

or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

 

17.                               SECTION HEADINGS; INCONSISTENCY. The section headings used in this Agreement are included solely for convenience and shall not affect, or be used in connection with, the interpretation of this Agreement. In the event of any inconsistency between the terms of this Agreement and any form, award, plan or policy of the Company, the terms of this Agreement shall govern and control.

 

18.                               SEVERABILITY. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.

 

19.                               COUNTERPARTS. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

 

20.                               INDEMNIFICATION. The Company hereby agrees to indemnify the Executive and hold the Executive harmless to the extent provided under the By-Laws of the Company against and in respect of any and all actions, suits, proceedings, claims, demands, judgments, costs, expenses (including reasonable attorney’s fees), losses, and damages resulting from the Executive’s good faith performance of the Executive’s duties and obligations with the Company. This obligation shall survive the termination of the Executive’s employment with the Company.

 

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21.                               LIABILITY INSURANCE. The Company shall cover the Executive under directors’ and officers’ liability insurance both during and, while potential liability exists, after the term of this Agreement in the same amount and to the same extent as the Company covers its other officers and directors.

 

22.                               GOVERNING LAW. This Agreement and all issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by, and construed in accordance with, the Laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of the Laws of any jurisdiction other than the State of Delaware. In furtherance of the foregoing, the internal Laws of the State of Delaware shall control the interpretation and construction of this Agreement (and all Schedules and Exhibits hereto), even though under that jurisdiction’s choice of law or conflict of law analysis, the substantive Law of some other jurisdiction would ordinarily apply. AS A SPECIFICALLY BARGAINED INDUCEMENT FOR EACH OF THE PARTIES TO ENTER INTO THIS AGREEMENT (WITH EACH PARTY HAVING HAD OPPORTUNITY TO CONSULT COUNSEL), EACH OF THE PARTIES EXPRESSLY AND IRREVOCABLY WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING UNDER THIS AGREEMENT OR ANY ACTION OR PROCEEDING ARISING OUT OF THE TRANSACTIONS CONTEMPLATED HEREBY OR ANY OTHER TRANSACTION AGREEMENT, REGARDLESS OF WHICH PARTY INITIATES SUCH ACTION OR PROCEEDING, AND ANY ACTION OR PROCEEDING UNDER THIS AGREEMENT OR ANY ACTION OR PROCEEDING ARISING OUT OF THE TRANSACTIONS CONTEMPLATED HEREBY OR ANY OTHER TRANSACTION AGREEMENT SHALL BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

 

23.                               MISCELLANEOUS. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by the Executive and such officer or director as may be designated by the Board. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. This Agreement sets forth the entire agreement of the parties hereto in respect of the subject matter contained herein and supersedes any and all prior agreements or understandings between the Executive and the Company with respect to the subject matter hereof, including the Prior Agreement. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement. Provisions of this Agreement shall survive the Employment Term if so provided in this Agreement or if necessary or desirable to accomplish the purposes of other surviving provisions, including without limitation the Executive’s obligations under Sections 10, 11 and 12 of this Agreement and the Company’s obligations under Sections 5 and 8 of this Agreement. Following the end of the Employment Term, all rights, duties and obligations of the Executive and the Company to each other will cease, except as otherwise expressly provided in this Agreement.

 

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24.                               REPRESENTATIONS. The Executive and the Company each represent and warrant that (a) each has the legal right to enter into this Agreement and to perform all of the obligations in accordance with its terms, and (b) each is not a party to any agreement or understanding, written or oral, and is not subject to any restriction, which, in either case, could prevent or limit each party’s performance of its or her obligations hereunder.  In addition, the Executive acknowledges that the Executive is aware of Section 304 (Forfeiture of Certain Bonuses and Profits) of the Sarbanes-Oxley Act of 2002 and Section 954 of the Dodd-Frank Act  and the right of the Company to be reimbursed for certain payments to the Executive in compliance therewith.

 

25.                               TAX MATTERS.

 

(a)                                 WITHHOLDING. The Company may withhold from any and all amounts payable under this Agreement or otherwise such federal, state and local taxes as may be required to be withheld pursuant to any applicable law or regulation.

 

(b)                                 SECTION 409A COMPLIANCE.

 

(i)                                     The intent of the parties is that payments and benefits under this Agreement comply with Internal Revenue Code Section 409A and the regulations and guidance promulgated thereunder (collectively “Code Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith. In no event whatsoever shall the Company be liable for any additional tax, interest or penalty that may be imposed on the Executive by Code Section 409A or damages for failing to comply with Code Section 409A.

 

(ii)                                  A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Code Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.” Notwithstanding anything to the contrary in this Agreement, if the Executive is deemed on the date of termination to be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B), then with regard to any payment or the provision of any benefit that is considered deferred compensation under Code Section 409A payable on account of a “separation from service,” such payment or benefit shall not be made or provided until the date which is the earlier of (A) the expiration of the six (6)-month period measured from the date of such “separation from service” of the Executive, and (B) the date of the Executive’s death, to the extent required under Code Section 409A. Upon the expiration of the foregoing delay period, all payments and benefits delayed pursuant to this Section 25(b)(ii) (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to the Executive in a lump sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.

 

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(iii)                               To the extent that reimbursements or other in-kind benefits under this Agreement constitute “nonqualified deferred compensation” for purposes of Code Section 409A, (A) all such expenses or other reimbursements hereunder shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by the Executive, (B) any right to such reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (C) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in- kind benefits to be provided, in any other taxable year.

 

(iv)                              For purposes of Code Section 409A, the 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, the actual date of payment within the specified period shall be within the sole discretion of the Company.

 

(v)                                 Notwithstanding any other provision of this Agreement to the contrary, in no event shall any payment under this Agreement that constitutes “nonqualified deferred compensation” for purposes of Code Section 409A be subject to offset by any other amount unless otherwise permitted by Code Section 409A.

 

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

 

 

	
 
    	
VERITIV CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Mark W. Hianik
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Mark W. Hianik
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
SVP, General Counsel & Corporate   Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EXECUTIVE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Mary A. Laschinger
    
	
 
    	
Mary A. Laschinger
    

 

Signature Page to Employment Agreement

 

 

EXHIBIT A

 

GENERAL RELEASE

 

I, Mary A. Laschinger, in consideration of and subject to the performance by Veritiv Corporation (together with its subsidiaries, the “Company”) of its obligations under the Employment Agreement dated as of December 29, 2017 (the “Agreement”), do hereby release and forever discharge as of the date hereof the Company and its respective subsidiaries and all present, former and future managers, directors, officers, employees, successors and assigns of the Company and its subsidiaries and direct or indirect owners (collectively, the “Released Parties”) to the extent provided below (this “General Release”). The Released Parties are intended to be third-party beneficiaries of this General Release, and this General Release may be enforced by each of them in accordance with the terms hereof in respect of the rights granted to such Released Parties hereunder. Terms used herein but not otherwise defined shall have the meanings given to them in the Agreement.

 

1.                                      I understand that any payments or benefits paid or granted to me under the Agreement represent, in part, consideration for signing this General Release and are not salary, wages or benefits to which I was already entitled. I understand and agree that I will not receive certain of the payments and benefits specified in the Agreement unless I execute this General Release and do not revoke this General Release within the time period permitted hereafter. Such payments and benefits will not be considered compensation for purposes of any employee benefit plan, program, policy or arrangement maintained or hereafter established by the Company or its subsidiaries.

 

2.                                      Except as provided in paragraphs 4 and 5 below and except for the provisions of the Agreement which expressly survive the termination of my employment with the Company, I knowingly and voluntarily (for myself, my heirs, executors, administrators and assigns) release and forever discharge the Company and the other Released Parties from any and all claims, suits, controversies, actions, causes of action, cross-claims, counter-claims, demands, debts, compensatory damages, liquidated damages, punitive or exemplary damages, other damages, claims for costs and attorneys’ fees, or liabilities of any nature whatsoever in law and in equity, both past and present (through the date that this General Release becomes effective and enforceable) and whether known or unknown, suspected, or claimed against the Company or any of the Released Parties which I, my spouse, or any of my heirs, executors, administrators or assigns, may have, which arise out of or are connected with my employment with, or my separation or termination from, the Company (including, but not limited to, any allegation, claim or violation, arising under: Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as amended (including the Older Workers Benefit Protection Act); the Equal Pay Act of 1963, as amended; the Americans with Disabilities Act of 1990; the Family and Medical Leave Act of 1993;  the Worker Adjustment Retraining and Notification Act; the Employee Retirement Income Security Act of 1974; any applicable Executive Order Programs; the Fair Labor Standards Act; or their state or local counterparts; or under any other federal, state or local civil or human rights law, or under any other local, state, or federal law, regulation or ordinance; or under any public policy, contract or tort, or under common law; or arising under any policies, practices or procedures of the Company; or any claim for wrongful discharge, breach of contract, infliction of emotional

 

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distress, defamation; or any claim for costs, fees, or other expenses, including attorneys’ fees incurred in these matters) (all of the foregoing collectively referred to herein as the “Claims”). I understand and intend that this General Release constitutes a general release of all claims and that no reference herein to a specific form of claim, statute or type of relief is intended to limit the scope of this General Release.

 

3.                                      I represent that I have made no assignment or transfer of any right, claim, demand, cause of action, or other matter covered by paragraph 2 above.

 

4.                                      I agree that this General Release does not waive or release any rights or claims that I may have under the Age Discrimination in Employment Act of 1967 which arise after the date I execute this General Release.

 

5.                                      I agree that I hereby waive all rights to sue or obtain equitable, remedial or punitive relief from any or all Released Parties of any kind whatsoever in respect of any Claim, including, without limitation, reinstatement, back pay, front pay, and any form of injunctive relief. Notwithstanding the above, I further acknowledge that I am not waiving and am not being required to waive any right that cannot be waived under law, including the right to file an administrative charge or participate in an administrative investigation or proceeding; provided, however, that I disclaim and waive any right to share or participate in any monetary award resulting from the prosecution of such charge or investigation or proceeding. Additionally, I am not waiving (i) any right to the Accrued Benefits or any severance benefits to which I am entitled under Sections 5 and 8 of the Agreement, (ii) any claim relating to directors’ and officers’ liability insurance coverage or any right of indemnification under the Company’s organizational documents or otherwise, (iii) my rights as an equity or security holder in the Company or its subsidiaries, or (iv) my rights to enforce the terms of the Agreement which expressly survive the termination of my employment hereunder.

 

6.                                      In signing this General Release, I acknowledge and intend that it shall be effective as a bar to each and every one of the Claims hereinabove mentioned or implied. I expressly consent that this General Release shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected Claims (notwithstanding any state or local statute that expressly limits the effectiveness of a general release of unknown, unsuspected and unanticipated Claims), if any, as well as those relating to any other Claims hereinabove mentioned or implied. I acknowledge and agree that this waiver is an essential and material term of this General Release and that without such waiver the Company would not have agreed to the terms of the Agreement. I further agree that in the event I should bring a Claim seeking damages against the Company, or in the event I should seek to recover against the Company in any Claim brought by a governmental agency on my behalf, this General Release shall serve as a complete defense to such Claims to the maximum extent permitted by law.

 

7.                                      I agree that neither this General Release, nor the furnishing of the consideration for this General Release, shall be deemed or construed at any time to be an admission by the Company, any Released Party of any improper or unlawful conduct.

 

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8.                                      Nothing contained in this General Release limits my ability to report possible violations of law or regulation to, or file a charge or complaint with, the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Department of Justice, Congress, any Inspector General, or any other federal, state or local governmental agency or commission (“Government Agencies”).  This General Release does not limit my ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company. Nothing in this Agreement shall limit my ability under applicable United States federal law to (i) disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law or (ii) disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure.  In addition, I understand that nothing in this General Release limits my right to receive an award from a governmental or regulatory entity for information provided to such an entity (and not as compensation for actual or alleged personal injury or damages to me).

 

9.                                      I hereby acknowledge that Sections 10, 11 and 12 of the Agreement shall survive my execution of this General Release.

 

10.                               I represent that I am not aware of any claim by me other than the claims that are released by this General Release. I acknowledge that I may hereafter discover claims or facts in addition to or different than those which I now know or believe to exist with respect to the subject matter of the release set forth in paragraph 2 above and which, if known or suspected at the time of entering into this General Release, may have materially affected this General Release and my decision to enter into it.

 

11.                               Notwithstanding anything in this General Release to the contrary, this General Release shall not relinquish, diminish, or in any way affect any rights or claims arising out of any breach by the Company or by any Released Party of the Agreement after the date hereof.

 

12.                               Whenever possible, each provision of this General Release shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this General Release is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this General Release shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

 

BY SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE THAT:

 

1.                                      I HAVE READ IT CAREFULLY;

 

2.                                      I UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS, INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT OF 1967, AS AMENDED, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, AS

 

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AMENDED; THE EQUAL PAY ACT OF 1963, THE AMERICANS WITH DISABILITIES ACT OF 1990; AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED;

 

3.                                      I VOLUNTARILY CONSENT TO EVERYTHING IN IT;

 

4.                                      I HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT AND I HAVE DONE SO OR, AFTER CAREFUL READING AND CONSIDERATION, I HAVE CHOSEN NOT TO DO SO OF MY OWN VOLITION;

 

5.                                      I HAVE HAD AT LEAST [21][45] DAYS FROM THE DATE OF MY RECEIPT OF THIS RELEASE TO CONSIDER IT, AND THE CHANGES MADE SINCE MY RECEIPT OF THIS RELEASE ARE NOT MATERIAL OR WERE MADE AT MY REQUEST AND WILL NOT RESTART THE REQUIRED [21][45]-DAY PERIOD;

 

6.                                      I UNDERSTAND THAT I HAVE SEVEN (7) DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE IT AND THAT THIS RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED;

 

7.                                      I HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE OF ANY COUNSEL RETAINED TO ADVISE ME WITH RESPECT TO IT; AND

 

8.                                      I AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED, WAIVED, CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE COMPANY AND BY ME.

 

 

	
SIGNED:
    	
 
    	
 
    	
DATED:
    	
 
    	
 
    

 

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