Document:

Exhibit
10.1

 

EMPLOYMENT
AGREEMENT

 

This
Employment Agreement (“Agreement”) is made as of the date executed below, by and between Professional Diversity Network,
Inc. (the “Company”) and Larry Aichler, an individual (“Executive”).

 

Acknowledgements

 

Executive
has been employed by the Company as Director of Finance (and Interim Chief Financial Officer) pursuant to an offer letter dated April
6, 2021 (the “Offer Letter”). The Company now desires to employ Executive, and Executive now desires to be employed by the
Company, under the terms and conditions stated below, which supersede and replace the terms and conditions in the Offer Letter. In consideration
of the mutual promises contained herein, the parties agree as follows:

 

Agreement

 

1. Employment.

 

		a.	Executive
                                            will work for the Company in the position of Chief Financial Officer (CFO) commencing on
                                            September 1st, 2021 (the “Commencement Date”). Executive will render
                                            such services to the Company as are customarily performed by persons in similar executive
                                            capacities. Executive will report to the Company’s Chief Executive Officer as well
                                            as the Company’s Board of Directors.
	 	 	 
		b.	Executive
                                            agrees to devote Executive’s full business time and effort to the diligent and faithful
                                            performance of Executive’s duties as an employee of the Company. While Executive renders
                                            services to the Company, Executive will not engage in any other gainful employment without
                                            the written consent of the Company. In the performance of Executive’s duties, Executive
                                            shall comply with the policies of the Company as communicated in writing and that are applicable
                                            to all employees and in effect from time to time.
	 	 	 
		c.	Executive
                                            acknowledges that Executive is legally obligated to observe, and will discharge, a duty of
                                            loyalty to act in the Company’s best interests during Executive’s employment
                                            with the Company.

 

2. Compensation
and Benefits.

 

		a.	As
                                            compensation for Executive’s performance of services as an employee, the Company shall
                                            pay Executive a gross base salary at the annual rate of $160,000 after the Commencement Date,
                                            payable in accordance with the Company’s standard payroll practices (the “Base
                                            Salary”). The Base Salary may be adjusted by the Company from time to time in its discretion,
                                            and the Base Salary will be paid less applicable taxes and deductions. Except as otherwise
                                            expressly set forth in this Agreement, the Base Salary includes the total compensation for
                                            all work performed by Executive.

 

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		b.	While
                                            employed by the Company, Executive will be entitled to an annual bonus in an amount to be
                                            determined by the Company in its sole discretion based on its assessment of the Company’s
                                            and Executive’s performance (such bonus amount will not exceed $80,000 annually. Any
                                            annual bonus will be paid less applicable taxes and deductions.
	 	 	 
		c.	While
                                            employed, Executive will remain eligible for all employee benefits currently available to
                                            the Company’s full-time employees, if any, subject to the terms and conditions of the
                                            plan documents and other Company policies. The Company reserves the right to change its benefit
                                            plans at any time.
	 	 	 
		d.	In
                                            accordance with the Offer Letter, the Company granted Executive 30,000 options to purchase
                                            shares of the Company’s Common Stock in accordance with a Nonqualified Stock Option
                                            Award dated June 14, 2021 (“Award”) under the Professional Diversity Network,
                                            Inc. 2013 Equity Compensation Plan (“Plan”). Generally, the Award will vest 1/3
                                            (10,000 options) on June 14, 2022, 1/3 (10,000 options) on June 14, 2023, and 1/3 (10,000)
                                            on June 14, 2024, subject to Executive’s continued employment with the Company. Nothing
                                            in this Agreement impacts the continued validity of the Award which remains outstanding and
                                            subject to the terms of the Plan.
	 	 	 
		e.	Executive
                                            shall receive 25 days of Paid Time Off (PTO) per year, in accordance with the Company’s
                                            generally-applicable PTO policy.
	 	 	 
		f.	The
                                            Company will, in accordance with Company policies as they may exist and be amended from time
                                            to time, reimburse reasonable business expenses incurred by Executive in the performance
                                            of Executive’s duties.
	 	 	 
		g.	While
                                            employed, Executive shall be covered under the Company’s Director & Officer insurance
                                            policy, subject to the terms and conditions of that insurance policy and other Company policies.
                                            The Company reserves the right to change its Director & Office insurance policy at any
                                            time.

 

3. At-Will
Employment.

 

		a.	Executive’s
                                            employment with the Company is “at-will,” meaning that either Executive or the
                                            Company is entitled to terminate Executive’s employment at any time, with or without
                                            cause and with or without prior notice. Although Executive’s employment duties, title,
                                            compensation and benefits, as well as the Company’s personnel policies and procedures,
                                            may change from time to time, the “at will” nature of Executive’s employment
                                            may only be changed by an express written agreement signed by Executive and a duly authorized
                                            representative of the Company.
	 	 	 
		b.	Upon
                                            the termination of Executive’s employment for any reason, no further payments will
                                            be due to Executive from the Company, except for Executive’s wages through Executive’s
                                            last day of employment and Executive’s accrued and unused vacation. The preceding sentence
                                            does not impact Executive’s right to any vested benefits under any retirement plan
                                            governed by the Employee Retirement Income Security Act (ERISA).

 

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		c.	Upon
                                            the termination of Executive’s employment for any reason, Executive will immediately
                                            resign from any position Executive holds on the Board or any other positions held with any
                                            affiliates of the Company.‎

 

4. Protection
of Confidential Information.

 

		a.	Definition
                                            of Confidential Information. “Confidential Information” means: (i) all information
                                            that is known or intended to be known only by employees of the Company or by persons who
                                            are in a confidential relationship with the Company, including without limitation, trade
                                            secrets, proprietary information, customer information, and operating techniques, and including
                                            further any such Confidential Information relating to any customer, vendor, licensor, licensee
                                            or party transacting business with the Company; (ii) all information that the Company regards
                                            and treats as confidential and that is not generally known or accessible to competitors or
                                            other third parties not having a legitimate need to know, which has value to the Company
                                            and which, if disclosed, would result in competitive and business disadvantage to the Company;
                                            and (iii) the lists of the Company’s customers to the extent these are not available
                                            to the general public, as they may exist from time to time.
	 	 	 
		b.	Unauthorized
                                            Disclosure or Use. During Executive’s employment, the Company will make Confidential
                                            Information available to Executive. While Executive is employed with the Company and at all
                                            times after the last day of Executive’s employment with the Company (regardless of
                                            the reason that Executive’s employment ceases), Executive will not disclose any Confidential
                                            Information to any third party, or use any Confidential Information for Executive’s
                                            benefit or the benefit of any third party, unless: (i) Executive first secures the written
                                            consent of the Chief Executive Officer of the Company; (ii) the disclosure or use is required
                                            for Executive to perform Executive’s employment duties on behalf of the Company; or
                                            (iii) the disclosure is otherwise authorized as set forth herein. Executive acknowledges
                                            that nothing in this Agreement reduces Executive’s concurrent obligation to comply
                                            with applicable laws relating to trade secrets, confidential information, and unfair competition.
	 	 	 
		c.	Notwithstanding
                                            any other provision of this Agreement: (i) Executive is not in any way prohibited from reporting
                                            information to, or participating in any investigation or proceeding conducted by, the U.S.
                                            Securities and Exchange Commission (SEC) or any other federal, state, or local governmental
                                            agency or entity; and (ii) Executive is not in any way precluded from providing information
                                            in response to a valid subpoena, court order, or regulatory request.

 

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		d.	Executive
                                            acknowledges the following disclosure, made pursuant to federal law, specifically 18 U.S.C.
                                            §1833(b):

 

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 in confidence to a federal, state, or local government official or to an attorney solely for the purpose of reporting or
investigating a suspected violation of law. 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 in a complaint or other document filed in a lawsuit or other proceeding,
if such filing is made under seal. An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation
of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding,
if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to
court order.

 

Executive
acknowledges and agrees that nothing in this Agreement is intended to conflict with 18 U.S.C. §1833(b) or to create liability for
disclosures of trade secrets that are expressly allowed by 18 U.S.C. §1833(b).

 

		e.	Return
                                            of Information. Upon termination of Executive’s employment with the Company or upon
                                            request by the Company (whichever occurs first), Executive will deliver to the Company the
                                            original and all copies of any and all Confidential Information that Executive has obtained,
                                            as well as any and all other documents, records, and property that are in Executive’s
                                            possession or control and that are the property of the Company or that relate to the business
                                            activities or customers of the Company, including any records, documents, or property created
                                            by Executive during Executive’s employment with the Company. Executive will attend
                                            an exit interview on the last day of Executive’s employment with the Company to ensure
                                            full compliance with the terms of this Agreement.

 

5. Patents
and Copyrights.

 

		a.	The
                                            term “Protected Information” shall include information of any nature and in any
                                            form, whether or not generated by Executive in the course of Executive’s duties, which
                                            is not generally known to those persons engaged in businesses similar to those conducted
                                            or contemplated by the Company and which relates to any one or more of the aspects of the
                                            Company’s business, including, but not limited to: patents and patent applications;
                                            copyrights and copyright applications; inventions and improvements, whether patentable or
                                            not; research and development projects, new or proposed products or designs and formulas
                                            therefor; writings and any other works fixed in any tangible medium, whether copyrightable
                                            or not; development projects; machines; methods, policies, processes, formulas, techniques,
                                            and know-how; data, data bases, computer designs, computer programs whether embodied in source
                                            or object code, computer languages or formats and other facts relating to design, construction,
                                            development, utilization or servicing of machines or programs or relating to materials for
                                            machines and other facts relating to sales, advertising, promotions, financial matters, customers,
                                            customer lists; and other trade secrets.

 

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		b.	The
                                            Company shall have all rights including international priority rights in: all Protected Information
                                            as defined in Paragraph 5.a. hereof, ideas, inventions, improvements, developments and discoveries,
                                            whether or not patentable, including any copyright interests therein, which Executive authors,
                                            conceives or makes, either solely or jointly with others during Executive’s employment
                                            with the Company (herein called “Inventions”) which: (i) relate to any subject
                                            matter with which Executive’s work for the Company may be concerned; or (ii) relate
                                            to the business products or services or actual or demonstrably anticipated research or development
                                            projects of the Company; or (iii) involved the use of the time, equipment, materials or facilities
                                            of the Company; or (iv) relate or are applicable to any phase of the Company’s business.
                                            To the extent that any Inventions are eligible to be “works made for hire,” such
                                            Inventions are hereby agreed to be “works made for hire.” To the extent that
                                            for any reason any Invention is not a work made for hire, Executive hereby assigns all right,
                                            title and interest therein to the Company. Further, Executive agrees to execute all documents
                                            and to take all actions as may be necessary in order to assign and transfer to the Company
                                            all rights and title in the property and proprietary rights in and to Inventions.
	 	 	 
		c.	Subject to any other agreement between the Company and Executive regarding Executive’s prior inventions, developments, discoveries or writings, the Company shall have no rights in Inventions made or conceived by Executive prior to Executive’s employment with the Company that are: (i) embodied in a United States Letters Patent, Copyright Registration or an application for United States Letters Patent or Copyright Registration filed prior to the commencement of the Executive’s employment with Company; or (ii) owned by a former employer prior to Executive’s employment by the Company; or (iii) disclosed in detail in a writing attached hereto or provided to the Company within one week of the execution hereof, which shall be incorporated by reference herein. The acceptance of such disclosure by the Company shall not create a confidential relationship.

                                                                                

                                                                                

	 	 	 
	 	 	In addition to the foregoing, the Company shall have no rights in any inventions made or conceived by Executive that do not involve any equipment, supplies, facilities, or trade secret information of the Company and which are developed entirely on Executive’s own time unless: (i) the invention relates to the business, products or services of the Company; or (ii) the invention relates to actual or demonstrably anticipated research or development projects of the Company; or (iii) the invention results from any services or work performed by Executive for the Company.

 

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		d.	Executive
                                            will disclose promptly in writing to the Company, subject to the limitations of Paragraph
                                            5.c. hereof, all Inventions whether or not patentable or copyrightable, made or conceived
                                            during Executive’s employment with the Company, whether or not during regular working
                                            hours and, if based on Protected Information as defined in Paragraph 5.a. hereof, within
                                            one year thereafter, if Inventions relate to either: (i) the subject of Executive’s
                                            work for the Company; or (ii) products, projects, programs or business of the Company of
                                            which Executive had knowledge in the course of Executive’s work or otherwise; or (iii)
                                            any business of the Company undertaken or in actual or anticipated research and development
                                            during Executive’s employment.
	 	 	 
		e.	Executive
                                            shall maintain for disclosure to the Company complete written records, including, where appropriate,
                                            laboratory books, of all Inventions. Such records shall bear dates and signatures and show:
                                            (i) the full nature thereof; and (ii) the critical dates pertaining to conception, development,
                                            reduction to practice, and embodiment in a tangible form. Such records shall be the sole
                                            property of and be readily available to the Company.
	 	 	 
		f.	Executive
                                            shall, during Executive’s employment and thereafter, at the request of the Company
                                            and without expense to Executive: (i) cooperate in the procurement, in the name of Company,
                                            of domestic and foreign patent, utility model, design and copyright protection to cover Inventions,
                                            including the execution of domestic, foreign, divisional, continuation and reissue applications
                                            for letters patent, utility models, designs and copyright registrations and full assignments
                                            thereof; and (ii) execute all documents, make all rightful oaths, testify in all proceedings
                                            in government offices or in the courts concerning Inventions, and generally do everything
                                            lawfully possible in any controversy or otherwise to aid the Company to obtain, enjoy and
                                            enforce proper protection of such property.

 

6. Non-Disparagement.
During Executive’s employment and at any time after the termination of Executive’s employment with the Company, Executive
shall not make statements about the Company or engage in conduct that could reasonably be expected to adversely affect the Company’s
reputation or business, except as may be allowed by law or by this Agreement.

 

7. Non-Competition.
In consideration of the mutual promises contained in this Agreement, including the Company’s agreement to employ Executive pursuant
to the terms herein and the Company’s promise to provide Executive with access to Confidential Information, and in recognition
that the services to be rendered to the Company by Executive are of special and unique character, Executive agrees that, while employed
by the Company and for a period of one year following the termination of Executive’s employment with the Company for any reason,
Executive shall not directly or indirectly:

 

		a.	render
                                            services of a business, professional, or commercial nature (whether for compensation or otherwise)
                                            to any person or entity that provides or markets services or products that are competitive
                                            with those services or products provided by the Company (“Competitive Services”)
                                            where: (i) the services provided by Executive would be the same or similar to the services
                                            that Executive rendered for the Company or would allow such person or entity to benefit from
                                            Executive’s knowledge of the Company’s Confidential Information; or (ii) Executive’s
                                            role with such person or entity would result in the inevitable or likely disclosure of the
                                            Company’s Confidential Information to such person or entity; or

 

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		b.	engage
                                            in any other act in any circumstance in which Executive’s knowledge of the Company’s
                                            Confidential Information may reasonably be expected to benefit any person or entity (other
                                            than the Company) that participates or assists in selling, attempting to sell, or planning
                                            to sell any Competitive Services.

 

Furthermore,
while employed by the Company, Executive shall not directly or indirectly render services of a business, professional, or commercial
nature (whether for compensation or otherwise) to any person or entity that provides or markets Competitive Services. The restrictions
contained in this Paragraph 7 are in addition to, and not in lieu of, other restrictions on the disclosure and use of Confidential Information
or trade secrets contained in this Agreement and contained in applicable law. Executive recognizes and agrees that the restrictions in
this Paragraph 7 are reasonable and appropriate to ensure that Executive will adhere to Executive’s promise in Paragraph 4 not
to disclose the Confidential Information that the Company has promised to provide Executive. Executive also recognizes and agrees that
the restrictions in this Paragraph 7 are also reasonable and appropriate to protect the Company’s other legitimate business interests.
The geographic scope of the restrictions in Paragraph 7 includes any state in the United States in which the Company is engaged in efforts
to market its products or services or has engaged in efforts to market its products or services within the two-year period immediately
preceding the termination of Executive’s employment.

 

8. Non-Solicitation
of Customers. In consideration of the mutual promises contained in this Agreement, including the Company’s agreement to employ
Executive pursuant to the terms herein and promise to provide Executive with access to Confidential Information, and in recognition that
the services to be rendered to the Company by Executive are of special and unique character, Executive agrees that, while employed by
the Company and for a period of one year following the termination of Executive’s employment with the Company for any reason, Executive
shall not, either alone or in association with others, whether as a proprietor, partner, director, officer, agent, employee, sales representative,
consultant or otherwise, directly or indirectly solicit, or cause or authorize to be solicited, any person, firm or corporation that
is a customer of the Company, unless the purpose of such solicitation is unrelated to the providing of goods or services of a type that
is the same or similar to the goods or services offered by the Company (and except for any solicitations on behalf of the Company while
Executive employed by the Company). Executive recognizes and agrees that the restrictions in this Paragraph 8 are reasonable and appropriate
to protect the Company’s legitimate business interests, including its interest in protecting its customer relationships, which
have been developed by the Company over a considerable time and at considerable expense. The geographic scope of the restrictions in
this Paragraph 8 includes any state in the United States in which the Company is engaged in efforts to market its products or services
or has engaged in efforts to market its products or services within the two-year period immediately preceding the last day of Executive’s
employment with the Company.

 

9. Non-Solicitation
of Employees. While employed by the Company and for a period of one year after the last day of Executive’s employment with
the Company (regardless of the reason that such employment ceases), Executive will not directly or indirectly solicit any employee of
the Company to end his or her employment with the Company or to become an employee or contractor of another entity.

 

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10. Future
Employment. Prior to accepting any employment or other engagement with any third party, Executive agrees, and Executive authorizes
the Company, to inform that third party of the existence and terms of this Agreement and to provide that third party with a copy of this
Agreement.

 

11. Representations
of Executive. Executive represents and warrants that: (a) Executive’s employment with the Company does not violate Executive’s
obligations to any of Executive’s former employers, including, but not limited to, any non-competition obligations; (b) that Executive’s
entering into this Agreement does not violate Executive’s legal obligations to any other party; and (c) Executive does not possess
any document of a secret, confidential or proprietary nature regarding the business of any of Executive’s former employers (whether
in hard copy or electronic form). Executive will not use in performing services for the Company or disclose to any person associated
with the Company any information that Executive learned during Executive’s employment with any of Executive’s former employers
that is or may reasonably be construed to be secret, confidential or proprietary information of those employers or that Executive otherwise
has reason to know is subject to a duty of confidentiality that Executive owes to any former employers.

 

12. Compliance
with Internal Revenue Code Section 409A. To the extent applicable, the parties intend that this Agreement comply with the provisions
of Internal Revenue Code (the “Code”) section 409A in order to avoid any penalty sanctions under that section. Accordingly,
notwithstanding anything to the contrary in this Agreement, this Agreement and the payments and benefits hereunder shall be subject to
the provisions set forth below:

 

		a.	This
                                            Agreement shall be construed, administered, and governed in a manner consistent with this
                                            intent. Any provision that would cause any amount payable or benefit provided under this
                                            Agreement to be includable in the gross income of Executive under Code section 409A(a)(1)
                                            shall have no force and effect unless and until amended to cause such amount or benefit to
                                            not be so includable. Such amendment (i) may be retroactive to the extent permitted by Code
                                            section 409A and (i) may be made by the Company without the consent of Executive, provided
                                            that any such amendment shall preserve to the maximum extent possible the economic benefits
                                            for Executive contemplated in this Agreement (taking into account the time value of money).
	 	 	 
		b.	Payments
                                            and benefits hereunder upon Executive’s termination of employment with the Company
                                            that constitute deferred compensation under Code section 409A payable shall be paid or provided
                                            only at the time of a termination of Executive’s employment which constitutes a “separation
                                            from service” within the meaning of Code section 409A (subject to a possible six-month
                                            delay pursuant to the next paragraph).
	 	 	 
		c.	To
                                            the extent that Executive is a “specified employee” at the time of Executive’s
                                            “separation from service” (in each case within the meaning of Code section 409A),
                                            then any payments hereunder that are subject to Code section 409A that would otherwise be
                                            paid during the six-month period commencing on the date of Executive’s separation from
                                            service shall be accumulated and paid on the first business day following the end of such
                                            six-month period.

 

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		d.	For
                                            purposes of Code section 409A, the right to a series of payments under this Agreement shall
                                            be treated as a right to a series of separate payments so that each payment hereunder is
                                            designated as a separate payment for purposes of Code section 409A.
	 	 	 
		e.	All
                                            reimbursements and in kind benefits provided under this Agreement, shall be made or provided
                                            in accordance with the requirements of Code 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, or in kind benefits provided, during a calendar year
                                            may not affect the expenses eligible for reimbursement, or in kind benefits to be provided,
                                            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 or in kind benefits is not subject to liquidation or
                                            exchange for another benefit.
	 	 	 
		f.	References
                                            in this Agreement to Code section 409A include both that section of the Code itself and any
                                            guidance promulgated thereunder.

 

13. Miscellaneous.

 

		a.	The
                                            terms and conditions contained in this Agreement are personal to Executive.
	 	 	 
		b.	No
                                            waiver by either party hereto of any breach of, or compliance with, any condition or provision
                                            of this Agreement by the other party shall be deemed a waiver of similar or dissimilar provisions
                                            or conditions at the same or at any prior or subsequent time. No such waiver shall be enforceable
                                            unless expressed in a written instrument executed by the party against whom enforcement is
                                            sought.
	 	 	 
		c.	This
                                            Agreement contains all the terms of Executive’s employment with the Company and supersedes
                                            any prior understandings or agreements, whether oral or written, between Executive and the
                                            Company on this subject. This Agreement expressly supersedes the Offer Letter. This Agreement
                                            may not be amended or modified except by an express written agreement signed by Executive
                                            and a duly authorized officer of the Company.
	 	 	 
		d.	Executive
                                            agrees that the provisions and restrictions contained in Paragraphs 4 through 9 of this Agreement
                                            are necessary to protect the legitimate business interests of the Company. Any actual or
                                            threatened breach of these provisions will result in irreparable injury to the Company for
                                            which a remedy at law would be inadequate. In addition to any relief at law that may be available
                                            to the Company for such breach, and regardless of any other provision contained in the Agreement,
                                            the Company will be entitled to such injunctive and other equitable relief as a court may
                                            grant after considering the intent of this Agreement, without any need to post a bond.

 

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		e.	This
                                            Agreement shall be binding upon and inure to the benefit of the Company, its successors and
                                            assigns, and Executive and Executive’s heirs, executors, administrators, and legal
                                            representatives.
	 	 	 
		f.	This
                                            Agreement may be executed in one or more counterparts, each of which shall be deemed to be
                                            an original but all of which together shall constitute one and the same instrument.
	 	 	 
		g.	This
                                            Agreement has been jointly drafted by the respective representatives of the Company and Executive
                                            and no party shall be considered as being responsible for such drafting for the purpose of
                                            applying any rule construing ambiguities against the drafter or otherwise. No draft of this
                                            Agreement shall be taken into account in construing this Agreement.
	 	 	 
		h.	If
                                            a court determines that certain provisions of this Agreement are illegal, excessively broad
                                            or otherwise unenforceable, then this Agreement will be construed so that the remaining provisions
                                            shall not be affected, but shall remain in full force and effect, and any such illegal, overbroad
                                            or otherwise unenforceable provisions will be deemed, without further action on the part
                                            of any person, to be modified, amended, and/or limited to the limited extent necessary to
                                            render the same valid and enforceable in such jurisdiction.
	 	 	 
		i.	If
                                            the Company must resort to legal action as a result of a breach by Executive of any of the
                                            provisions of Paragraphs 4 through 9 of this Agreement, and if the Company proves to a court
                                            that Executive has breached any of the provisions of those Paragraphs, the Company shall
                                            be entitled to recover from Executive its reasonable attorneys’ fees and costs incurred
                                            in proving such breach.
	 	 	 
		j.	This
                                            Agreement shall be governed by and construed in accordance with the laws of the State of
                                            Illinois without reference to conflicts-of-laws principles. The parties agree to the exclusive
                                            jurisdiction of the state and federal courts ‎in the State of Illinois for the resolution
                                            of any disputes arising out of this ‎Agreement.‎
	 	 	 
		k.	The
                                            provisions of this Agreement that are intended to survive its termination and the termination
                                            of Executive’s employment, including without limitation Paragraphs 3.c., 4, 5, 6, 7,
                                            8, 9, 10, 12, and 13 of this Agreement, shall survive and continue after the termination
                                            of this Agreement and the termination of Executive’s employment.

 

[Signature
Page Follows]

 

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	Hereby
accepted and agreed,

	 	 	 
	 	 	 	 	 
	Larry Aichler	 	Professional Diversity Network, Inc.
	 	 	 	 	 
	Signature: 
	 	 	Signature: 	 
	 	 	 	Name:	Michael
    Belsky
	Address:
    	 	 	Title:	Chair
    of Compensation Committee
	 	 	 	 	 
	Date:	 	 	Date: August 26, 2021

 

    	11bill-ex43_910.htm

Exhibit 4.3

 

DESCRIPTION OF THE REGISTRANT’S SECURITIES REGISTERED

PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

 

The following description summarizes the most important terms of our capital stock. Because it is only a summary, it does not contain all the information that may be important to you. For a complete description, you should refer to our restated certificate of incorporation and restated bylaws and to the applicable provisions of Delaware law.

Our authorized capital stock consists of 510,000,000 shares of capital stock, including 500,000,000 shares of common stock, $0.00001 par value per share, and 10,000,000 shares of undesignated preferred stock, $0.00001 par value per share.

Common Stock

Dividend Rights

Subject to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of our common stock are entitled to receive dividends out of funds legally available if our board of directors, in its discretion, determines to issue dividends and then only at the times and in the amounts that our board of directors may determine. 

Voting Rights

Holders of our common stock are entitled to one vote for each share of common stock held on all matters submitted to a vote of stockholders. Our restated certificate of incorporation does not provide for cumulative voting for the election of directors in our restated certificate of incorporation. Accordingly, holders of a majority of the shares of our common stock will be able to elect all of our directors. Our restated certificate of incorporation establishes a classified board of directors, divided into three classes with staggered three-year terms. Only one class of directors will be elected at each annual meeting of our stockholders, with the other classes continuing for the remainder of their respective three-year terms.

No Preemptive or Similar Rights

Our common stock is not entitled to preemptive rights, and is not subject to redemption or sinking fund provisions.

Right to Receive Liquidation Distributions

Upon our liquidation, dissolution, or winding-up, the assets legally available for distribution to our stockholders would be distributable ratably among the holders of our common stock and any participating redeemable convertible preferred stock outstanding at that time, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights of and the payment of liquidation preferences, if any, on any outstanding shares of redeemable convertible preferred stock.

Preferred Stock

We have no shares of preferred stock outstanding.  Our board of directors is authorized, subject to limitations prescribed by Delaware law, to issue preferred stock in one or more series, to establish from time to time the number of shares to be included in each series, and to fix the designation, powers, preferences, and rights of the shares of each series and any of its qualifications, limitations, or restrictions, in each case without further vote or  action by our stockholders. Our board of directors can also increase or decrease the number of shares of any series of preferred stock, but not below the number of shares of that series then outstanding, without any further vote or action by our stockholders. Our board of directors may authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of our common stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring, or preventing a change in our control and might adversely affect the market price of our common stock and the voting and other rights of the holders of our common stock. We have no current plan to issue any shares of preferred stock.

 

 

Anti-Takeover Provisions

The provisions of the DGCL, our restated certificate of incorporation, and our restated bylaws could have the effect of delaying, deferring, or discouraging another person from acquiring control of  our company. These provisions, which are summarized below, are expected to discourage certain types of coercive takeover practices and inadequate takeover bids and encourage persons seeking to acquire control of our company to first negotiate with our board of directors. We believe that the benefits of increased protection of our potential ability to negotiate with an unfriendly or unsolicited acquirer outweigh the disadvantages of discouraging a proposal to acquire us because negotiation of these proposals could result in an improvement of their terms.

Section 203 of the DGCL

We are subject to the provisions of Section 203 of the DGCL regulating corporate takeovers. In general, Section 203 prohibits a publicly held Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a three-year period following the time that this stockholder becomes an interested stockholder, unless the business combination is approved in a prescribed manner. Under Section 203, a business combination between a corporation and an interested stockholder is prohibited unless it satisfies one of the following conditions:

	
 
	
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before the stockholder became interested, our board of directors approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;

	
 
	
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upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding, shares owned by persons who are directors and also officers, and employee stock plans in some instances, but not the outstanding voting stock owned by the interested stockholder; or

	
 
	
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at or after the time the stockholder became interested, the business combination was approved by our board and authorized at an annual or special meeting of the stockholders by the affirmative vote of at least two-thirds of the outstanding voting stock which is not owned by the interested stockholder.

Section 203 defines a business combination to include:

	
 
	
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any merger or consolidation involving the corporation and the interested stockholder;

	
 
	
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any sale, transfer, lease, pledge, or other disposition involving the interested stockholder of 10% or more of the assets of the corporation;

	
 
	
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subject to exceptions, any transaction that results in the issuance of transfer by the corporation of any stock of the corporation to the interested stockholder;

	
 
	
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subject to exceptions, any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder; and

	
 
	
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the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation

In general, Section 203 defines an interested stockholder as any entity or person beneficially owning 15% or more of the outstanding voting stock of the corporation and any entity or person affiliated with or controlling or controlled by the entity or person.

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Restated Certificate of Incorporation and Amended and Restated Bylaw Provisions

Our restated certificate of incorporation and our amended and restated bylaws include a number of provisions that may have the effect of deterring hostile takeovers, or delaying or preventing changes in control of our management team or changes in our board of directors or our governance or policy, including the following:

	
 
	
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Board Vacancies. Our amended and restated bylaws and certificate of incorporation authorize generally only our board of directors to fill vacant directorships resulting from any cause or created by the expansion of our board of directors. In addition, the number of directors constituting our board of directors may be set only by resolution adopted by a majority vote of our entire board of directors. These provisions prevent a stockholder from increasing the size of our board of directors and gaining control of our board of directors by filling the resulting vacancies with its own nominees.

	
 
	
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Classified Board. Our restated certificate of incorporation and amended and restated bylaws provide that our board of directors is classified into three classes of directors. The existence of a classified board of directors could delay a successful tender offeror from obtaining majority control of our board of directors, and the prospect of that delay might deter a potential offeror. 

	
 
	
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Directors Removed Only for Cause. Our restated certificate of incorporation provides that stockholders may remove directors only for cause.

	
 
	
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Supermajority Requirements for Amendments of Our Restated Certificate of Incorporation and Amended and Restated Bylaws. Our restated certificate of incorporation further provides that the affirmative vote of holders of at least 66 2/3% of our outstanding common stock is required to amend certain provisions of our restated certificate of incorporation, including provisions relating to the classified board, the size of the board of directors, removal of directors, special meetings, actions by written consent, and designation of our preferred stock. The affirmative vote of holders of at least 66 2/3% of our outstanding common stock is required to amend or repeal our amended and restated bylaws, although our amended and restated bylaws may be amended by a simple majority vote of our board of directors.

	
 
	
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Stockholder Action; Special Meetings of Stockholders. Our restated certificate of incorporation provides that our stockholders may not take action by written consent, but may only take action at annual or special meetings of our stockholders. As a result, holders of our capital stock would not be able to amend our amended and restated bylaws or remove directors without holding a meeting of our stockholders called in accordance with our amended and restated bylaws. Our restated certificate of incorporation and our amended and restated bylaws provide that special meetings of our stockholders may be called only by a majority of our board of directors, the chairman of our board of directors, or our chief executive officer, thus prohibiting a stockholder from calling a special meeting. These provisions might delay the ability of our stockholders to force consideration of a proposal or for stockholders to take any action, including the removal of directors.

	
 
	
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Advance Notice Requirements for Stockholder Proposals and Director Nominations. Our amended and restated bylaws provide advance notice procedures for stockholders seeking to bring business before our annual meeting of stockholders or to nominate candidates for election as directors at our annual meeting of stockholders. Our amended and restated bylaws also specify certain requirements regarding the form and content of a stockholder’s notice. These provisions may preclude our stockholders from bringing matters before our annual meeting of stockholders or from making nominations for directors at our annual meeting of stockholders. We expect that these provisions might also discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of our company.

	
 
	
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No Cumulative Voting. The DGCL provides that stockholders are not entitled to the right to cumulate votes in the election of directors unless a corporation’s certificate of incorporation provides otherwise. Our restated certificate of incorporation and amended and restated bylaws do not provide for cumulative voting.

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Issuance of Undesignated Preferred Stock. Our board has the authority, without further action by the stockholders, to issue up to 10,000,000 shares of undesignated preferred stock with rights and preferences, including voting rights, designated from time to time by our board of directors. The existence of authorized but unissued shares of preferred stock enables our board of directors to render more difficult or to discourage an attempt to obtain control of us by means of a merger, tender offer, proxy contest, or otherwise.

	
 
	
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Choice of Forum. Our restated certificate of incorporation provides that, to the fullest extent permitted by law, the Court of Chancery of the State of Delaware will be the exclusive forum for any derivative action or proceeding brought on our behalf; any action asserting a breach of fiduciary duty; any action asserting a claim against us arising pursuant to the DGCL, our restated certificate of incorporation or our amended and restated bylaws; or any action asserting a claim against us that is governed by the internal affairs doctrine. Our amended and restated bylaws also provide that the federal district courts of the United States of America, to the fullest extent permitted by law, be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act (the “Federal Forum Provision”). While there can be no assurance that federal or state courts will follow the holding of the Delaware Supreme Court which recently found that such provisions are facially valid under Delaware law or determine that the Federal Forum Provision should be enforced in a particular case, application of the Federal Forum Provision means that suits brought by our stockholders to enforce any duty or liability created by the Securities Act must be brought in federal court and cannot be brought in state court. Section 27 of the Securities Exchange Act of 1934, as amended, or the Exchange Act, creates exclusive federal jurisdiction over all claims brought to enforce any duty or liability created by the Exchange Act or the rules and regulations thereunder. In addition, neither the exclusive forum provision nor the Federal Forum Provision applies to suits brought to enforce any duty or liability created by the Exchange Act. Accordingly, actions by our stockholders to enforce any duty or liability created by the Exchange Act or the rules and regulations thereunder also must be brought in federal court. Our stockholders will not be deemed to have waived our compliance with the federal securities laws and the regulations promulgated thereunder. Any person or entity purchasing or otherwise acquiring or holding any interest in any of our securities shall be deemed to have notice of and consented to our exclusive forum provisions, including the Federal Forum Provision. These provisions may limit a stockholder’s ability to bring a claim in a judicial forum of their choosing for disputes with us or our directors, officers, or other employees, which may discourage lawsuits against us and our directors, officers, and other employees..

Transfer Agent and Registrar

The transfer agent and registrar for our common stock is Computershare Trust Company, N.A. 

Exchange Listing

Our common stock is listed on The New York Stock Exchange under the symbol “BILL.”

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