Document:

EX-10.1

 Exhibit 10.1 

Execution Version 

EMPLOYMENT AGREEMENT 

EMPLOYMENT AGREEMENT (“Agreement”), dated as of 01/06/2020 by and between Party City Holdings Inc. a Delaware
corporation (the “Company”), Party City Holdco Inc. (“Holdco”) and Todd Vogensen (the “Executive”) and effective as of February 3, 2020 (the “Effective Date”). 

WHEREAS, the Company, Holdco and the Executive desire to set forth in this Agreement the terms and conditions under which the Executive will
be employed as Executive Vice President and Chief Financial Officer of the Company and Holdco, effective as of the Effective Date. 
 NOW,
THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: 
 1.    Employment Period. The Company and Holdco shall employ the
Executive, and the Executive agrees to, and shall, serve the Company and Holdco, on the terms and conditions set forth in this Agreement, for the period beginning on the Effective Date and ending on February 2, 2023 (the “Initial
Term”), and, thereafter, this Agreement shall automatically renew for additional successive twelve (12) month periods (each a “Renewal Term”), unless sooner terminated as set forth hereinafter (collectively, Initial Term and
applicable Renewal Terms are referred to herein as the “Employment Period”). Notwithstanding anything contained herein to the contrary, the Company may elect to terminate this Agreement, and thereby conclude Executive’s service
with and for the Company and Holdco, by providing Executive with at least twelve (12) months prior written notice of its intent to not renew this Agreement, such termination being effective upon the expiration of the next successive applicable
Renewal Term or such other date which the parties mutually agree. 
 2.    Position and Duties. 

(a)    During the Employment Period, the Executive shall serve as Executive Vice President and Chief Financial Officer of
the Company and Holdco with such duties and responsibilities as are assigned to him by the Board of Directors of Holdco (the “Board”), any committee of the Board or the Chief Executive Officer of Holdco (the “CEO”)
consistent with his position as Executive Vice President and Chief Financial Officer of the Company and Holdco, including, as the CEO may request, without additional compensation, to serve as an officer or director of certain of the subsidiaries and
other affiliates of Holdco and/or the Company. During the Employment Period, the Executive shall report to the CEO. 

(b)    During the Employment Period, and excluding any periods of vacation and sick leave to which the Executive is
entitled, the Executive shall devote his full attention and time during normal business hours to the business and affairs of the Company and Holdco and shall use his reasonable best efforts to carry out the responsibilities assigned to the Executive
faithfully and efficiently. It shall not be considered a violation of the foregoing for the Executive to (i) serve on civic or charitable boards or committees, (ii) deliver lectures, fulfill speaking engagements or teach at educational
institutions, (iii) serve on the board of directors of other companies, so long as the Board approves such appointments (such approval not to be unreasonably withheld), or (iv) manage personal investments, so long as such activities do not
compete with and are not provided 

  
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to or for any entity that competes with or intends to compete with the Company, Holdco or any of their respective subsidiaries and affiliates and does not unreasonably interfere with the
performance of the Executive’s responsibilities as an employee of the Company or Holdco in accordance with this Agreement. 

3.    Compensation and Expense Reimbursements. 

(a)    Base Salary. During the Employment Period, the Executive shall receive from the Company or any of its
affiliates a base salary of $625,000.00 (per full fiscal year or otherwise on a pro rata basis) and as such amount may be adjusted from time to time, in the sole discretion of the Board or the Compensation Committee of the Board (the
“Committee” and the “Annual Base Salary,” respectively), payable in regular intervals in accordance with customary payroll practices for employees of the Company in effect during the Employment Period. 

(b)    Annual Bonus. In addition to the Annual Base Salary, during the Employment Period, the Executive shall be
eligible to receive annual bonus compensation (the “Annual Bonus”) consistent with the bonus plan for key executives of the Company as in effect from time to time (the “Bonus Plan”). The Annual Bonus (including any
pro rata portion thereof, to the extent payable pursuant to Section 5 of this Agreement), if any, shall be paid no later than two and one-half months following the end of the calendar year to which such
Annual Bonus corresponds. During the Employment Period, the target amount of the Annual Bonus shall be seventy percent (70%) of the Annual Base Salary (the “Target Bonus Amount”) and the maximum amount of the Annual Bonus shall be
one hundred forty percent (140%) of the Annual Base Salary (the “Maximum Bonus Amount”), with the actual amount of the Annual Bonus, if any, to be determined by the Board or the Committee in accordance with the Bonus Plan. Except as
otherwise provided in Section 5(a) (Death or Permanent Disability), Section 5(c) (Termination other than Cause or By Executive for Good Reason), or Section 5(d) (Change in Control Termination) of this Agreement, eligibility for the
Annual Bonus shall require Executive’s employment during the full fiscal year for which such Annual Bonus corresponds and through the applicable payout date. 

(c)    Sign-On Bonus.    In addition to the Annual Base
Salary and the Annual Bonus, the Executive shall receive a one-time cash award equal to four hundred twenty thousand dollars ($420,000), payable as a lump sum within forty-five (45) days following the
Effective Date. In the event that the Executive terminates his employment with the Company other than for Good Reason (as defined below), or if the Executive’s employment is terminated by the Company for Cause (as defined below), the Executive
will be required to repay (i) one hundred percent (100%) of the Sign-On Bonus as set forth herein if such termination occurs within one year of the Effective Date and (ii) fifty percent (50%) of the Sign-On Bonus as set forth herein if such termination occurs more than one year following the Effective Date but less than two years following the Effective Date, in either case, within fifteen (15) days of
such termination. 
 (d)    Other Benefits; Car Allowance. 

(i) During the Employment Period: (i) the Executive shall be eligible to participate in all incentive, savings and
retirement plans, practices, policies and programs for employees of the Company and shall be entitled to paid vacation, to the same extent and 

  
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on the same terms and conditions as peer executives; and (ii) the Executive and/or the Executive’s family, as the case may be, shall be eligible for participation in, and shall receive
all benefits under, all other welfare benefit plans, practices, policies and programs provided for employees of the Company to the same extent and on the same terms and conditions as peer executives. 

(ii) During the Employment Period, the Company will pay the Executive an annual car allowance equal to $8,100, payable in equal
bi-weekly installments. 
 (e)    Incentive Equity Grants. 

(i) Beginning in 2020, at the discretion of the Board or the Committee, the Executive shall be eligible to receive incentive
equity (or other long-term incentive) grants under Holdco’s long-term compensation program for senior executives, subject to the terms of such program as in effect from time to time and with any grants under such program in the discretion of
the Board or the Committee. As of the date hereof, the Company intends to make the following grant to senior executives under such program for calendar year 2020: (a) one half of such grant shall be made in the form of restricted cash which vest
(I) two thirds following the second anniversary of such grant and (II) one third following the third anniversary of such grant; and (b) one half of such grant shall be made in the form of performance-based restricted stock units,
which shall be eligible to vest based on the achievement of performance objectives determined by the Board or the Committee during a three-year performance period. It is acknowledged and agreed that the target value for such 2020 grant will be equal
to one hundred sixty percent (160%) of Executive’s Base Salary, which value will be determined consistent with Holdco’s process for determining grants to other senior executives. 

(f)    Relocation Expenses. 

(i) The Company will reimburse the Executive for reasonable and customary relocation expenses actually incurred by the
Executive as a direct result of his relocation to a location within reasonable commuting distance of the Company’s offices in Elmsford, NY (the “Relocation Expenses”), subject to Company policies and to such reasonable
substantiation and documentation as may be specified by the Company, including house-hunting visits for the Executive as reasonably necessary; the cost of packing and moving the Executive’s household goods and the moving of automobiles to the
Executive’s home in or around Elmsford, NY; the cost of temporary housing for the Executive and his immediate family (not to exceed six (6) months in duration); the cost of temporary storage of the Executive’s household goods for a
reasonable period of time; real estate commissions on the purchase of a new home in or around Elmsford, NY; reasonable closing costs on a new home that is a reasonable commuting distance from Elmsford, NY; and airfare to the New York City area for
all members of the Executive’s immediate family. For the avoidance of doubt, such reimbursable Relocation Expenses will not include payment of any losses in connection with any capital transaction, such as the sale of a home. In the event that
any of the reimbursements for Relocation Expenses are taxable to the Executive, the Company will promptly make additional “gross up” payments to the Executive sufficient to cover such additional taxes (including taxes on the gross-up). The 

  
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Company will pay the Executive any amounts due to him in respect of Relocation Expenses within thirty (30) days after submission of written documentation substantiating such amounts. 

(ii) In the event that the Executive terminates his employment with the Company other than for Good Reason (as defined below),
or if the Executive’s employment is terminated by the Company for Cause (as defined below), the Executive will be required to repay (i) one hundred percent (100%) of the gross amount of reimbursed Relocation Expenses if such termination
occurs within one year of the Effective Date and (ii) fifty percent (50%) of the gross amount of reimbursed Relocation Expenses if such termination occurs more than one year following the Effective Date but less than two years following the
Effective Date, in either case, within fifteen (15) days of such termination. 
 (g)    Other Expenses.
During the Employment Period, the Executive shall be entitled to receive reimbursement for all reasonable travel and other expenses incurred by the Executive in carrying out the Executive’s duties under this Agreement; provided that the
Executive complies with the policies, practices and procedures of Holdco and/or the Company for submission of expense reports, receipts, or similar documentation of such expenses.  

(h)    Indemnification. During and after the Employment Period, the Executive shall be entitled to all rights to
indemnification available under the by-laws, certificate of incorporation and any director and officer insurance policies of Holdco and the Company, or to which he may otherwise be entitled, through Holdco,
the Company, and/or any of their respective subsidiaries and affiliates, in accordance with their respective terms. 

4.    Termination of Employment. 

(a)    Death or Permanent Disability. The Executive’s employment shall terminate automatically upon the
Executive’s death during the Employment Period. The Company and its affiliates shall be entitled to terminate the Executive’s employment because of the Executive’s Permanent Disability during the Employment Period.
“Permanent Disability” means that the Executive (i) is unable to perform his duties under this Agreement by reason of any medically determinable physical or mental impairment which can be expected to result in death
or can be expected to last for a continuous period of not less than twelve (12) months; (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a
continuous period of not less than twelve (12) months receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of Holdco or the Company; or (iii) has
been determined to be totally disabled by the Social Security Administration. A termination of the Executive’s employment by Holdco or any of its affiliates for Permanent Disability shall be communicated to the Executive by written notice and
shall be effective on the 30th day after receipt of such notice by the Executive (the “Disability Effective Date”), unless the Executive returns to full-time performance of the Executive’s duties in accordance with the
provisions of Section 2 before such 30th day. In the event of a dispute as to whether the Executive has suffered a Permanent Disability, the final determination shall be made by a licensed
physician selected by the Board and acceptable to the Executive in the Executive’s reasonable judgment. 

  
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 (b)    Other than Death or Disability. Holdco and its affiliates
may terminate the Executive’s employment at any time during the Employment Period with or without Cause upon notice to the Executive. 

(c)    Good Reason. The Executive may terminate his employment at any time during the Employment Period for Good
Reason, upon prior written notice to Holdco or the Company setting forth in reasonable detail the nature of such Good Reason, as set forth below. For purposes of this Agreement, “Good Reason” is defined as any one or more of the
following: any attempt to relocate the Executive to a work location that is more than fifty (50) miles from his primary office as of the Effective Date; any material diminution in the nature or scope of the Executive’s responsibilities or
duties as defined under this Agreement (provided that a change in reporting relationships resulting from the direct or indirect control of Holdco or the Company (or a successor corporation) by another corporation or other person(s) shall not be
deemed to constitute “Good Reason”); any material breach by Holdco, the Company or any affiliate of the Company of any provision of this Agreement or any other written agreement with the Executive; or any material failure of Holdco or the
Company to provide the Executive with at least the Annual Base Salary and/or any other compensation or benefits in accordance with the terms of Section 3 hereof, other than an inadvertent failure which is cured within ten (10) business
days following written notice from the Executive specifying in reasonable detail the nature of such failure. Notwithstanding the foregoing, the appointment of an interim Chief Financial Officer of the Company or Holdco during and for any period of
the Executive’s disability (which may potentially result in a Permanent Disability) will not be considered “Good Reason” (so long as the Executive continues to be compensated pursuant to the terms of this Agreement), until the
occurrence of a Permanent Disability as defined in Section 4(a). The Executive’s employment will only be deemed to have been terminated for Good Reason (i) if he gives written notice to the Company within ninety (90) days of the
date of the Executive’s knowledge of the circumstances giving rise to Good Reason setting forth in reasonable detail the nature of such Good Reason, (ii) the Company and Holdco are provided an opportunity to cure such Good Reason event
(which cure period shall not be less than fifteen (15) days) and (iii) the Executive terminates employment with Holdco, the Company and all their affiliates within sixty (60) days of the date of the later of the first occurrence and
the Executive’s knowledge of the circumstances giving rise to Good Reason (to the extent Holdco or the Company has not previously cured the circumstances giving rise to Good Reason). 

(d)    Change in Control. If there occurs a “Change in Control” (as hereinafter defined) during
the Employment Period and the Executive is not offered employment on substantially similar terms by Holdco or one of its continuing affiliates immediately thereafter, then, for all purposes of this Agreement, the Executive’s employment shall be
deemed to have been terminated by Holdco and the Company in a manner qualifying as a “Change in Control Termination” effective as of the date of such Change in Control; provided, however, that none of Holdco or any of
its affiliates shall have any obligation to the Executive under this Section 4 if the Executive is hired or offered employment on substantially similar terms by the purchaser of the stock or assets of Holdco, or the Company, if the
Executive’s employment hereunder is continued by Holdco or one of its continuing affiliates, or if the Executive does not actually terminate employment. Further, if Holdco and its affiliates terminates the Executive’s employment without
Cause or the Executive terminates his employment for Good Reason, in either case, within six (6) months prior to or twenty-four (24) months following the consummation of such Change in Control (the “Change in Control Protection
Period”), the Executive shall be deemed to have had 

  
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a Change in Control Termination. As used herein, a “Change in Control” shall be deemed to have occurred solely upon the occurrence of any of the following events: 

(i)    a change in the ownership of Holdco within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(v) as in effect on the date hereof; or 

(ii)    a change in the ownership of all or substantially all of Holdco’s assets within the meaning of
Treasury Regulation Section 1.409A-3(i)(5)(vii) as in effect on the date hereof; or 

(iii)    the (A) acquisition of more than forty percent (40%) of the total value of Holdco capital
stock in one transaction or a series of related transactions by a person or more than one person acting as a group, which (B) within 12 months thereafter results in the replacement of more than fifty percent (50%) of the make-up of the Holdco Board of Directors, as compared to its make-up immediately prior to such acquisition (or series of acquisitions), that is not endorsed by majority of the
members of the Holdco board of directors as of immediately prior to such acquisition (or series of acquisitions). 

(e)    Date of Termination. The “Date of Termination” means the date of the Executive’s
death, the Disability Effective Date or the date on which the termination of the Executive’s employment by Holdco and its affiliates, or by the Executive, is effective, as the case may be, including by reason of the expiration of the Employment
Period. 
 5.    Obligations of Holdco and the Company Upon Termination. 

(a)    By Holdco and the Company Upon the Executive’s Death or Permanent Disability. If the Executive dies
during the Employment Period or Holdco and its affiliates terminates the Executive’s employment due to the Executive’s Permanent Disability, Holdco or any of its affiliates shall pay the Executive or his legal representative: 

(i)    the Executive’s accrued but unpaid cash compensation (the “Accrued
Obligations”), which shall equal the sum of (1) any portion of the Executive’s Annual Base Salary through the Date of Termination that has not yet been paid; (2) any annual bonus that the Executive has earned for a prior full
calendar year that has ended prior to the date of termination but which has not yet been calculated and paid (the “Prior Year’s Bonus”); and (3) any unreimbursed expenses incurred prior to the Date of
Termination, including any then unpaid car allowance for the period during which the Executive was employed by the Company; and 

(ii)    an amount equal to a pro rata Annual Bonus for the year of termination, which pro-ration shall reflect the number of days the Executive was employed by Holdco and its affiliates in the applicable year prior to the Date of Termination. 

The Accrued Obligations (other than the Prior Year’s Bonus) shall be paid in cash within thirty (30) days of the Date of Termination. The Annual
Bonus, if earned, shall be pro-rated as described above and both such pro-rated Annual Bonus and the Prior Year’s Bonus, if payable, shall otherwise be calculated
and paid in accordance with Section 3(b)). Notwithstanding anything to the contrary set forth herein, the Executive shall not be entitled to the Prior Year’s Bonus or any 

  
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payment or benefit pursuant to clause (ii) of this Section 5(a) unless the Executive (or his legal representative) shall have executed a release of any and all legal claims
substantially in the form attached hereto as Exhibit A (which form may be modified by Holdco or the Company to the extent necessary to reflect execution by a person other than the Executive and to include restrictive covenants that are
consistent with those set forth herein) (the “Release”) no later than twenty-one (21) days (or, if so instructed by Holdco or the Company, forty-five (45) days) following the Date of
Termination and shall not have revoked the Release in accordance with its terms. Holdco or the Company shall provide the final Release promptly in connection with any termination of the Executive’s employment hereunder. 

(b)    By Holdco and the Company for Cause. If the Executive’s employment is terminated by Holdco and its
affiliates for “Cause” (as hereinafter defined), then the Executive shall be entitled to only the payment of the Accrued Obligations (excluding the Prior Year’s Bonus, which shall not be payable), which shall be paid to the Executive
in cash in a lump sum within thirty (30) days of the Date of Termination and neither the Holdco nor any of its affiliates shall have any further obligation under this Agreement, except as expressly provided herein. For purposes of this
Agreement, “Cause” shall mean (1) conviction of the Executive by a court of competent jurisdiction of a felony (excluding felonies under any state or local vehicle and traffic code); (2) any act of intentional fraud in
connection with his duties under this Agreement; (3) any act of gross negligence or willful misconduct with respect to the Executive’s duties and/or performance under this Agreement and (4) any act of willful disobedience in violation
of the Executive’s duties; provided, in the case of clause (3) or (4), that the Executive has not cured the circumstances giving rise to “Cause” within fifteen (15) days of the date Holdco or any of its affiliates
gives notice to the Executive of its intent to terminate his employment on such basis. 
 (c)    By Holdco for any
reason other than Cause or by the Executive for Good Reason other than a Change in Control Termination. If the Executive’s employment is terminated during the Employment Period (i) by Holdco and its affiliates other than for Cause,
death or Permanent Disability or (ii) by the Executive for Good Reason, in each case, except if such termination is a Change in Control Termination: 

(i) Holdco or one of his affiliates shall pay to the Executive the Accrued Obligations, paid in cash within thirty
(30) days of the Date of Termination; provided that the Prior Year’s Bonus, if earned, shall be calculated and paid in accordance with Section 3(b); 

(ii) Holdco or one of his affiliates shall pay to the Executive the following: 

(A) a severance payment (the “Severance Payment”), in an amount equal to twelve (12) months’ Annual Base Salary,

 (B) an amount equal to a pro rata Annual Bonus for the year of termination, calculated and paid in accordance with Section 3(b),
which pro-ration shall reflect the number of days the Executive was employed by Holdco and its affiliates in the applicable year prior to the Date of Termination, and 

  
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 (C) any stock options, restricted stock, restricted stock units, performance stock units or
similar awards shall be treated as follows: (A) such awards or rights which are due to vest within 364 days of such Date of Termination and which vest solely based on the Executive’s continued service during such period shall immediately
become fully vested as of the date of the Date of Termination, (B) restricted cash awards which are due to vest within 364 days of such Date of Termination and which vest solely based on the Executive’s continued service during such period
shall immediately become fully vested as of the date of the Date of Termination, and (C) such awards or rights that vest upon the occurrence of specified performance metrics, shall be treated as earned and vest as follows: (1) if the full
performance period has elapsed as of the date of the Date of Termination, such awards and rights shall be earned based on actual achievement of the applicable performance goals, as provided in the applicable award agreement and shall immediately
become vested without pro-ration and (2) otherwise, such awards and rights shall be earned based on assumed achievement of the applicable performance goals at 100% of the performance target, as provided
in the applicable award agreement, and shall immediately vest as to a prorated portion of each such award or right based on the date which is 364 days following the Date of Termination during the applicable full performance period. 

The Severance Payment shall be payable in cash in the form of salary continuation over the twelve (12) months following the Date of
Termination, with the first payment(s) being payable in arrears on the date that is sixty (60) days following the Date of Termination. Notwithstanding anything to the contrary set forth herein, the Executive shall not be entitled to the Prior
Year’s Bonus or any payment or benefit pursuant to clause (ii) of this Section 5(c) unless the Executive shall have, at the written request of Holdco or any its affiliates, executed the Release no later than twenty-one (21) days (or, if so instructed by Holdco and its affiliates, forty-five (45) days) following the date of the Change in Control Termination and shall not have revoked such release in accordance
with its terms. Holdco or the Company shall provide the final Release promptly in connection with any termination of the Executive’s employment hereunder. 

(d)    Change in Control Termination. Notwithstanding anything to the contrary set forth herein, in the event of a
Change in Control Termination: 
 (i)    Holdco or any of its affiliates shall pay to the Executive the Accrued
Obligations; 
 (ii)    Holdco or any of its affiliates shall pay to the Executive: 

(A)    an amount equal to two times the sum of (1) the Executive’s then current Annual Base Salary and
(2) the target Annual Bonus, 
 (B)    an amount equal to a pro rata Annual Bonus for the year of termination,
calculated and paid in accordance with Section 3(b), which pro-ration shall reflect the number of days the Executive was employed by Holdco or any of its affiliates in the applicable year prior to the
Date of Termination, and 

  
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 (C)    provided that the Executive timely elects to continue his
coverage in the group health plan covering employees of the Company or Holdco under the federal law known as “COBRA”, a monthly amount equal to that portion of the monthly health premiums for such coverage paid by Holdco or the Company on
behalf of the Executive prior to the Date of Termination until the date that is twenty-four (24) months following the Date of Termination (the “Health Continuation Benefits”); and 

(iii)    any stock options, restricted stock, restricted stock units, performance stock units or similar
awards (or any awards or rights issued in exchange for such grants in connection with a Change in Control or otherwise), shall be treated as follows: (A) such awards or rights that vest solely based on the Executive’s continued service
over time shall immediately become fully vested as of the date of the Change in Control Termination, (B) restricted cash awards that vest solely based on Executive’s continued service over time shall immediately become fully vested as of
the date of the Change in Control Termination, and (C) such awards or rights that vest upon the occurrence of specified performance metrics, shall be treated as earned and vest as follows: (1) if the full performance period has elapsed as
of the date of the Change in Control Termination, such awards and rights shall be earned based on actual achievement of the applicable performance goals, as provided in the applicable award agreement and shall immediately become vested without pro-ration and (2) otherwise, such awards and rights shall be earned based on assumed achievement of the applicable performance goals at 100% of the performance target, as provided in the applicable award
agreement, and shall immediately vest as to a prorated portion of each such award or right based on the number of days of the Executive’s actual employment or other service with Holdco or any of its affiliates prior to the Change in Control
Termination during the applicable full performance period; provided, that, if the Executive does not experience a Change in Control Termination prior to the end of the applicable original performance period, such awards and rights shall be
earned based on assumed achievement of the applicable performance goals at 100% of the performance target, as provided in the applicable award agreement, and shall be eligible to vest as of the last day of the applicable original performance period
without pro-ration, subject to the terms of the applicable award agreement. Any stock options, restricted stock, restricted stock units, performance stock units, restricted cash or similar awards (or any
awards or rights issued in exchange for such grants in connection with a Change in Control or otherwise) that do not vest after application of the preceding sentence or clause (iii) hereof shall be immediately forfeited without payment due
thereon. 
 Notwithstanding the foregoing, in the event that the Health Continuation Benefits would subject the Executive or Holdco or any
of its affiliates to any tax or penalty under the ACA or Section 105(h) of the Code (as defined below), or applicable subsequent regulations, guidance or successor statutes, the Executive and the Company agree to work together in good faith to
restructure the Health Continuation Benefits in a manner that avoids such adverse consequences. 

  
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All amounts payable hereunder (except the pro rata Annual Bonus and the Prior Year’s Bonus, which are each payable in accordance with Section 3(b), the Accrued Obligations (other than
the Prior Year’s Bonus), which shall be calculated and paid in a lump sum in cash within thirty (30) days of the date of the Change in Control Termination and the Health Continuation Benefits, which shall be paid as described above in this
Section 5(d)) shall be paid in cash in a lump sum on the date that is the later of sixty (60) days following the date of the Change in Control Termination or sixty (60) days following the consummation of the Change in Control (except
that, if the Change in Control Termination occurs due to a qualifying termination within six (6) months prior to a Change in Control, such payment will be made over the twenty four (24) months following the Date of Termination, with the
first payment(s) being payable in arrears on the date that is sixty (60) days following the Date of Termination). Notwithstanding anything to the contrary set forth herein, the Executive shall not be entitled to the Prior Year’s Bonus or
any payment or benefit pursuant to clauses (ii) or (iii) of this Section 5(d) unless the Executive shall have, at the written request of Holdco or any its affiliates, executed the Release no later than
twenty-one (21) days (or, if so instructed by Holdco and its affiliates, forty-five (45) days) following the date of the Change in Control Termination and shall not have revoked such release in
accordance with its terms. Holdco or the Company shall provide the final Release promptly in connection with any termination of the Executive’s employment hereunder. 

(e)     By the Executive other than for Good Reason. If during the Employment Period the Executive terminates his
employment with Holdco and its affiliates other than for Good Reason, Holdco or one of its affiliates shall pay the Accrued Obligations (excluding the Prior Year’s Bonus, which shall not be payable) to the Executive in a lump sum in cash within
thirty (30) days of the Date of Termination and neither Holdco or any of its affiliates shall have any further obligation under this Agreement except as expressly provided herein. 

(f)    Expiration of the Term. Unless otherwise terminated pursuant to any of the foregoing clauses of this
Section 5 or renewed in the ordinary course, the Executive’s employment hereunder will automatically terminate at the expiration of the Employment Period and Holdco or the Company shall pay to the Executive the Accrued Obligations in a
lump sum in cash within thirty (30) days of the Date of Termination, no additional amount will be due and no further Restriction Period shall apply; provided that the Prior Year’s Bonus, if earned, shall be calculated and paid in
accordance with Section 3(b); and provided, further, that if the Company allows the Executive’s employment to terminate due to an expiration of the Employment Period occurring during the Change in Control Protection Period, the
Executive will be deemed to have had a Change in Control Termination and will be entitled to the payments and benefits described in Section 5(d) above and shall not otherwise receive payment under this Section 5(f). 

6.    Section 409A. The parties intend for the compensation provided under this Agreement to comply with, or be
exempt from, the provisions of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) (together with the regulations thereunder, “Section 409A”) and, accordingly, to the
maximum extent permitted, this Agreement will be interpreted to be in compliance with or exempt from Section 409A. The parties agree to work together in good faith to consider amendments to this Agreement and take such reasonable actions which
are necessary, appropriate or desirable to avoid imposition of additional tax or income recognition to Executive prior to actual payment under Section 409A. Notwithstanding the foregoing, in no event shall Holdco or any of its affiliates have
any liability to the Executive or to 

  
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any other person claiming rights under this Agreement relating to the failure or alleged failure of any payment or benefit under this Agreement to comply with, or be exempt from, the provisions
of Section 409A. 
 (a)    Definitions. For purposes of this Agreement, all references to “termination
of employment” and similar or correlative phrases shall be construed to require a “separation from service” (as defined in Section 1.409A-1(h) of the Treasury regulations after giving
effect to the presumptions contained therein), and the term “specified employee” means an individual determined by Holdco to be a specified employee under Treasury regulation
Section 1.409A-1(i). 
 (b)    Certain Delayed Payments. If any
payment or benefit hereunder constituting “nonqualified deferred compensation” subject to Section 409A would be subject to subsection (a)(2)(B)(i) of Section 409A (relating to payments made to “specified employees” of
publicly-traded companies upon separation from service), any such payment or benefit to which the Executive would otherwise be entitled during the six (6) month period following the Executive’s separation from service will instead be
provided or paid without interest on the first business day following the expiration of such six (6) month period, or if earlier, the date of the Executive’s death. 

(c)    Separate Payments. Each payment made under this Agreement shall be treated as a separate payment. 

(d)    Reimbursements. Notwithstanding anything to the contrary in this Agreement, any reimbursement that
constitutes or could constitute nonqualified deferred compensation subject to Section 409A will be subject to the following additional requirements: (i) the expenses eligible for reimbursement will have been incurred during the term of
this Agreement, (ii) the amount of expenses eligible for reimbursement during any calendar year will not affect the expenses eligible for reimbursement in any other taxable year; (iii) reimbursement will be made not later than
December 31 of the calendar year following the calendar year in which the expense was incurred; and (iv) the right to reimbursement will not be subject to liquidation or exchange for any other benefit. 

7.    Full Settlement. Holdco’s and the Company’s obligations to provide for the payments provided for
in, and otherwise to perform its obligations under, this Agreement shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action that Holdco, the Company or any of
their affiliates may have against the Executive or others. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of
this Agreement and such amounts shall not be reduced, regardless of whether the Executive obtains other employment. 

8.    Confidential Information. The Executive shall hold in a fiduciary capacity for the benefit of Holdco and its
affiliates all secret or confidential information, knowledge or data relating to the Company, Holdco or any of their affiliates and their respective businesses that the Executive obtains during the Executive’s employment by Holdco or the
Company (whether before, during or after the Employment Period) and that is not public knowledge (other than as a result of the Executive’s violation of this Section 8) (“Confidential Information”). The Executive shall not
communicate, divulge or disseminate Confidential Information at any time during or after the 

  
 -11- 

 
Executive’s employment with Holdco or the Company, except with the prior written consent of Holdco or the Company or as otherwise required by law. For the avoidance of doubt,
(a) nothing contained in this Agreement or any other agreement containing confidentiality provisions or other restrictive covenants in favor of any of Holdco or any of its affiliates, shall be construed to limit, restrict or in any other way
affect the Executive’s communicating with any governmental agency or entity, or communicating with any official or staff person of a governmental agency or entity, concerning matters relevant to the governmental agency or entity and
(b) the Executive will not be held criminally or civilly liable under any federal or state trade secret law for disclosing a trade secret (i) in confidence to a federal, state, or local government official, either directly or indirectly,
or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law, or (ii) in a complaint or other document filed under seal in a lawsuit or other proceeding; provided that notwithstanding this immunity
from liability, the Executive may be held liable if the Executive unlawfully accesses trade secrets by unauthorized means. 

9.    Noncompetition; Nonsolicitation. 

(a)    Noncompetition. During the Employment Period, and following termination of the Executive’s employment
with Holdco and its affiliates, during the “Restriction Period” (as hereinafter defined), the Executive shall not directly or indirectly participate in or permit his name directly or indirectly to be used by or become associated with
(including as an advisor, representative, agent, promoter, independent contractor, provider of personal services or otherwise) any person, corporation, partnership, firm, association or other enterprise or entity (a “person”) that is, or
intends to be, engaged in any business which is in competition with any business of Holdco and its affiliates in any geographic area in which Holdco and its affiliates operate, compete or are engaged in such business or at such time intend so to
operate, compete or become engaged in such business; provided, however, that the foregoing will not prohibit the Executive from participating in or becoming associated with a person if (i) less than 10% of the consolidated gross
revenues of such person, together with its affiliates, derive from activities or businesses that are in competition with any business of Holdco or any of its affiliates (a “Competitive Business”) and (ii) the Executive does
not, directly or indirectly, participate in, become associated with, or otherwise have responsibilities that relate to the conduct or operations of, any Competitive Business that is conducted by such person or a division, group, or subsidiary or
affiliate of such person. For purposes of this Agreement, the term “participate” includes any direct or indirect interest, whether as an officer, director, employee, partner, sole proprietor, trustee, beneficiary, agent, representative,
independent contractor, consultant, advisor, provider of personal services, creditor, or owner (other than by ownership of less than five percent of the stock of a publicly-held corporation whose stock is traded on a national securities exchange or
in an over-the-counter market). 

(b)    Nonsolicitation. During the Employment Period, and during the Restriction Period following termination of
employment, the Executive shall not, directly or indirectly, encourage or solicit, or assist any other person or firm in encouraging or soliciting, any person or firm that during the six month period preceding such termination of the
Executive’s employment with Holdco and its affiliates (or, if such action occurs during the Employment Period, on the date such action was taken) is or was engaged in a business relationship with Holdco and its affiliates to terminate its
relationship with Holdco and its affiliates or, in the case of any such person, to engage in a business relationship with a Competitor. 

  
 -12- 

 (c)    No Hire. During the Employment Period, and during the
Restriction Period following termination of employment, the Executive will not, except with the prior written consent of Holdco and its affiliates, directly or indirectly, induce any employee of Holdco and its affiliates to terminate employment with
such entity, and will not, directly or indirectly, either individually or as owner, agent, employee, consultant or otherwise, employ, offer employment or cause employment to be offered to any person (including employment as an independent
contractor) who is or was employed by Holdco and its affiliates unless such person shall have ceased to be employed by such entity for a period of at least twelve (12) months; provided that the foregoing shall not apply to
inducing any employee pursuant to a blanket solicitation not specifically targeted at that employee. For purposes of this Section 9(c), “employment” shall be deemed to include rendering services as an independent contractor and
“employees” shall be deemed to include independent contractors. 
 (d)    Restriction Period. The term
“Restriction Period” as used herein, shall mean the twelve (12)-month period (except in the case of a Change in Control Termination (or a deemed Change in Control Termination under Section 5(f)), in which case such period shall
be the two-year period) immediately following the Date of Termination (other than a termination at the expiration of the Employment Period in which case there will be no post-employment restriction period).

 (e)    Return of Confidential Information. Promptly following the Executive’s termination of employment,
including due to expiration of the Employment Period, the Executive shall return to the Company all property of Holdco and its affiliates, and all copies thereof, in the Executive’s possession or under his control, including, without
limitation, all Confidential Information in whatever media such Confidential Information is maintained. 

(f)    Injunctive Relief. The Executive acknowledges and agrees that the Restriction Period and the covenants and
obligations of the Executive in Section 8 and this Section 9 with respect to noncompetition, nonsolicitation and confidentiality and with respect to the property of Holdco and its affiliates, and the territories covered thereby, are fair
and reasonable and the result of negotiation. The Executive further acknowledges and agrees that the covenants and obligations of the Executive in Section 8 and this Section 9 with respect to noncompetition, nonsolicitation and
confidentiality and with respect to the property of Holdco and its affiliates, and the territories covered thereby, relate to special, unique and extraordinary matters and that a violation of any of the terms of such covenants and obligations will
cause Holdco and its affiliates irreparable injury for which adequate remedies are not available at law. Therefore, the Executive agrees that Holdco and its affiliates shall be entitled to an injunction, restraining order or such other equitable
relief as a court of competent jurisdiction may deem necessary or appropriate to restrain the Executive from committing any violation of such covenants and obligations. These injunctive remedies are cumulative and are in addition to any other rights
and remedies Holdco and its affiliates may have at law or in equity. If, at the time of enforcement of Section 8 and/or this Section 9, a court holds that any of the restrictions stated herein are unreasonable under circumstances then
existing, the parties hereto agree that the maximum period, scope, and/or geographical area legally permissible under such circumstances will be substituted for the period, scope and/or area stated herein. 

  
 -13- 

 10.    Successors. 

(a)    This Agreement is personal to the Executive and shall not be assignable by the Executive. This Agreement shall inure
to the benefit of and be enforceable by the Executive’s legal representatives and heirs and successors. 

(b)    This Agreement shall inure to the benefit of and be binding upon Holdco, the Company and their respective
successors and assigns. 
 11.    Section 280G. In the event that Holdco and its affiliates undergoes a
change in control at a time when it (or any affiliate of the Company, including Holdco, that would be treated, together with Holdco, as a single corporation under Section 280G of the Code and the regulations thereunder) has stock that is
readily tradeable on an established securities market (within the meaning of Section 280G of the Code and the regulations thereunder), if all, or any portion, of the payments provided under this Agreement, either alone or together with other
payments or benefits which the Executive receives or is entitled to receive from Holdco and its affiliates, could constitute an “excess parachute payment” within the meaning of Section 280G of the Code, then the Executive shall be
entitled to receive (i) an amount limited so that no portion thereof shall fail to be tax deductible under Section 280G of the Code (the “Limited Amount”), or (ii) if the amount otherwise payable hereunder, together
with the other payments or benefits the Executive is so entitled to receive, (without regard to clause (i)) reduced by the excise tax imposed by Section 4999 of the Code and all other applicable federal, state and local taxes (with income taxes
all computed at the highest applicable marginal rate) is greater than the Limited Amount reduced by all taxes applicable thereto (with income taxes all computed at the highest marginal rate), the amount otherwise payable hereunder. If it is
determined that the Limited Amount will maximize the Executive’s after-tax proceeds, payments and benefits shall be reduced to equal the Limited Amount in the following order: (i) first, by reducing
cash severance payments, (ii) second, by reducing other payments and benefits to which Q&A 24(c) of Section 1.280G-1 of the Treasury Regulations does not apply, and (iii) finally, by
reducing all remaining payments and benefits, with all such reductions done on a pro rata basis. All determinations made pursuant this Section 11 will be made at Holdco’s expense by the independent public accounting firm most recently
serving as the Company’s outside auditors or such other accounting or benefits consulting group or firm as Holdco may designate. Such accounting firm or other designated preparer engaged to make the determinations hereunder shall provide
its calculations, together with all supporting documentation, to Holdco and Executive as soon as reasonably practicable following the date such determinations are completed.

12.    Miscellaneous. 

(a)    This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without
reference to principles of conflict of laws. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified except by a written agreement executed by the parties
hereto or their respective heirs, successors and legal representatives. 

  
 -14- 

 (b)    All notices and other communications under this Agreement shall
be in writing and shall be given by hand delivery to the other party or by overnight courier or by registered or certified mail, return receipt requested, postage prepaid, or by facsimile (with receipt confirmation), addressed as follows: 

 

					
	If to the Executive:	  	Todd Vogensen	  	
		  	At his most recent address	  	
		  	shown in the Company’s records	  	
			
	If to Holdco:	  	Party City Holdco, Inc.	  	
	or the Company	  	80 Grasslands Road	  	
		  	Elmsford, NY 10523	  	
		  	Attention: Corporate Secretary	  	
		  	Fax no.: (914) 345-2056	  	

 or to such other address as either party furnishes to the other in writing in accordance with this Section 12(b). Notices
and communications shall be effective when actually received by the addressee. 
 (c)    The invalidity or
unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. 

(d)    Notwithstanding any other provision of this Agreement, Holdco and its affiliates may withhold from amounts payable
under this Agreement all federal, state, local and foreign taxes or other amounts that are required to be withheld by applicable laws or regulations or otherwise. In addition, the obligations of Holdco and its affiliates under this Agreement shall
be conditional on compliance with this Section 12(d), and Holdco and its affiliates shall, to the extent permitted by law, have the right to deduct any such taxes from any payment otherwise due to the Executive. 

(e)    Any party’s failure to insist upon strict compliance with any provision of, or to assert any right under, this
Agreement shall not be deemed to be a waiver of such provision or right or of any other provision of or right under this Agreement. 

(f)    Except as expressly set forth in this Agreement, all disagreements, disputes, controversies and claims arising out
of this Agreement and the Executive’s employment hereunder, shall be submitted to and resolved by arbitration in accordance with and pursuant to the Employment Arbitration Rules of the American Arbitration Association, as then in effect. The
parties agree that any dispute will be heard by a single arbitrator. The arbitrator shall be selected by mutual agreement of the Parties, or if no agreement can be reached, the arbitrator shall be selected by the American Arbitration Association.
All arbitration costs shall be shared equally by the parties and each party shall bear its own costs and expenses in the event of any dispute hereunder. 

(g)     The Executive acknowledges that this Agreement, together with the Exhibit hereto and the other agreements referred
to herein except as modified herein or therein, supersedes all other agreements and understandings, both written and oral, between the Executive, on one hand, and Holdco and its affiliates, on the other, with respect to the subject matter hereof.

 (h)    This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of
which shall together constitute one and the same instrument. 

  
 -15- 

 (i)    Provisions of this Agreement shall survive any termination of
employment if so provided herein or if necessary or desirable to accomplish the purposes of other surviving provisions, including, without limitation, the obligations of the Executive under Sections 8 and 9 hereof. 

[Remainder of Page Intentionally Left Blank] 

  
 -16- 

 IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and,
pursuant to the authorization of their respective boards of directors, Holdco and the Company have each caused this Agreement to be executed in its name on its behalf, all as of the day and year first above written. 

 

			
	PARTY CITY HOLDCO INC.
		
	By:	 	 /s/ James Harrison

	Name:	 	James Harrison
	Title:	 	Chief Executive Officer

  

			
	PARTY CITY HOLDINGS INC.
		
	By:	 	 /s/ Brad Weston

	Name:	 	Brad Weston
	Title:	 	President

  

			
	 /s/ Todd Vogensen

	Todd Vogensen

  
 [Signature Page to
Employment Agreement] 

 Exhibit A 

FORM OF RELEASE OF CLAIMS 

This Release of Claims is provided by me, Todd Vogensen (or by my designated beneficiary or estate, in the event of my death during my
employment), pursuant to the Employment Agreement between me, Party City Holdings Inc. (the “Company”) and Party City Holdco Inc. (“Holdco”) effective as of February 3, 2020 (the “Employment Agreement”). 

This Release of Claims is given in consideration of the severance benefits to be provided to me (or, in the event of my death during my
employment, to my designated beneficiary) in connection with the termination of my employment under Section 5 of the Employment Agreement (the “Separation Payments”), which are conditioned on my signing this Release of Claims and to
which I am not otherwise entitled, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged. On my own behalf and that of my heirs, executors, administrators, beneficiaries, representatives and
assigns, and all others connected with or claiming through me, I hereby release and forever discharge the Company from any and all causes of action, rights or claims of any type or description, known or unknown, which I have had in the past, now
have or might have, through the date of my signing of this Release of Claims. This includes, without limitation, any and all causes of action, rights or claims in any way resulting from, arising out of or connected with my employment by the Company
or the termination of that employment or pursuant to any federal, state or local law, regulation or other requirement, including without limitation Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Age
Discrimination in Employment Act, the fair employment practices statutes of the state or states in which I have provided services to the Company or any other federal, state, local or foreign law, all as amended, any contracts of employment, any tort
claims, or any agreements, plans or policies. 
 For purposes of this Release of Claims, the word “Company” always includes the
Company, Holdco the subsidiaries and affiliates of the Company or Holdco and all of their respective past, present and future officers, directors, trustees, shareholders, employees, employee benefit plans and any of the trustees or administrators
thereof, agents, general and limited partners, members, managers, investors, joint venturers, representatives, predecessors, successors and assigns, and all others connected with any of them, both individually and in their official capacities. 

Nothing in this Release of Claims shall be construed to prohibit me from filing a charge with or participating in any investigation or
proceeding conducted by the federal Equal Employment Opportunity Commission or a comparable state or local agency, except that I hereby agree to waive my right to recover monetary damages or other individual relief in any charge, complaint or
lawsuit filed by me or by anyone else on my behalf. 
 Nothing in this Release of Claims is intended to or does waive or release any rights
I may have with respect to (i) coverage under liability insurance or indemnification rights provided or maintained by the Company during, or applicable to, my employment with the Company, or 

 
under any other obligation or policy of insurance maintained by the Company in accordance with their respective terms; (ii) any other defense or indemnity right under applicable law;
(iii) the enforcement of the right to any payment or benefits due upon the termination of my employment in accordance with the express terms of the Employment Agreement or (iv) any right or claim that cannot, by law, be waived or released
through this Release of Claims. 
 Also excluded from the scope of this Release of Claims is any right to benefits that were vested or
eligible for continuation under the Company’s employee benefit plans on the date on which my employment with the Company terminated, in accordance with the terms of such plans. 

In signing this Release of Claims, I give the Company assurance that I have returned to the Company any and all documents, materials and
information related to the business, whether present or otherwise, of the Company and all keys and other property of the Company that were in my possession or control, all as required by and consistent with Section 9(e) of the Employment
Agreement. I agree that I will not, for any purpose, attempt to access or use any computer or computer network or system of the Company, including without limitation their electronic mail systems. I further acknowledge that I have disclosed to the
Company all passwords necessary or desirable to enable the Company to access all information which I have password-protected on its computer network or system. 

In signing this Release of Claims, I agree that I have been paid in full all compensation due to me, whether for services rendered by me to
the Company or otherwise, through the date on which my employment with the Company terminated and that, exclusive only of the Separation Payments and the Accrued Obligations, as defined in the Employment Agreement (except as otherwise provided
therein), no further compensation of any kind shall be due to me by the Company, whether arising under the Employment Agreement or otherwise, in connection with my employment or the termination thereof. I also agree that except for any right I and
my eligible dependents may have to continue participation in the Company’s health and dental plans under the federal law commonly known as COBRA, my right to participate in any employee benefit plan of the Company will be determined in
accordance with the terms of such plan. 
 I acknowledge that my eligibility for the Separation Payments is not only contingent on my
signing and returning this Release of Claims to the Company in a timely manner and not revoking it thereafter, but also is subject to my compliance with the covenants contained in the Employment Agreement. 

In signing this Release of Claims, acknowledge that I have not relied on any promises or representations, express or implied, that are not set
forth expressly in this Release of Claims. I further acknowledge that I am waiving and releasing any rights I may have under the Age Discrimination in Employment Act of 1967, as amended (“ADEA”), and that this waiver and release is knowing
and voluntary and is being done with a full understanding of its terms. I agree that the consideration given for this wavier and release is in addition to anything of value to which I was already entitled. I further acknowledge that I have been
advised by this writing as required by the ADEA that: 
 1.    I have the right to and am advised by the Company to
consult with an attorney prior to executing this Release of Claims; and I acknowledge that I have had sufficient time to consider this Release of Claims and to consult with an attorney, if I wished to do so, or to consult with any other person of my
choosing before signing; 

 2.    I may not sign this Release of Claims prior to the termination of
my employment, but that I may consider the terms of this Release of Claims for up to twenty-one (21) days (or, if the Company so instructs, forty-five (45) days) from the later of the date my
employment with the Company terminates or the date I receive this Release of Claims; 
 3.     I have seven
(7) days following my execution of this Release of Claims to revoke this Release of Claims; and 
 4.    This
Release of Claims shall not be effective until the revocation period has expired. 
 Intending to be legally bound, I have signed this
Release of Claims under seal as of the date written below. 
  

			
	Signature:                                    
                                         
                     	  	 Date
signed:                                  

  

	
	Party City Holdco Inc.
	
	  

	Name:
	Title:
	
	Party City Holdings Inc.
	
	  

	Name:
	Title:ex_169123.htm

Exhibit 10.1

 

 

TRANSITION AGREEMENT

 

This Transition Agreement (“Agreement”) is entered into on January 7, 2020 (the “Effective Date”), by and between Ikonics Corp. (the “Company”), and William Ulland (“Executive”). 

 

RECITALS

 

A.     Executive is employed by the Company as its Chief Executive Officer and serves as the Chair of the Company’s Board of Directors (“Board”).

 

B.     Executive will retire from the Company. In connection with his retirement, Executive and the Company have agreed to conclude their employment relationship amicably and to continue Executive’s role as the Chairman of the Company’s Board of Directors (the “Board”), but mutually recognize that the termination of the employment relationship may give rise to potential claims or liabilities.

 

C.     Executive and the Company desire to resolve all of Executive’s potential claims on the terms set out in this Agreement.

 

NOW THEREFORE, in consideration of the mutual promises and provisions contained in this Agreement and the Release referred to below, the parties, intending to be legally bound, agree as follows:

 

AGREEMENT

 

For the consideration described below, the adequacy of which the parties acknowledge, Executive and the Company, intending to be bound, agree as follows:

 

	 	
			1.

				
			Transition Period.

			

 

(a)     Anticipated Transition. Subject to the terms and conditions of this Agreement, the Company hereby agrees to continue Executive’s employment, and Executive hereby accepts continued employment by the Company, for the period (the “Transition Period”) commencing on the Effective Date and continuing until the earlier of (a) February 10, 2020 (the “Anticipated Separation Date”), (b) the date on which Executive’s employment is earlier terminated under Section 6, or (c) the date on which the Company and Executive mutually agreed Executive’s employment shall end. The effective date of the termination of Executive’s employment with the Company for any reason is referred to herein as the “Separation Date.” As of the Separation Date, Executive agrees to resign as the Company’s Chief Executive Officer.

 

(b)     Other Termination. Unless Executive’s employment is terminated before the Anticipated Separation Date as a result of Executive’s resignation for any reason or the Company terminating Executive’s employment for Cause (as defined below), Executive’s termination of employment with the Company will be effective as of the Anticipated Separation Date. For purposes of this Agreement, “Cause” means (a) the willful refusal by Executive to perform Executive’s employment duties, including failure to complete the transition duties described in Section 3 in a timely and professional manner, during the Transition Period; (b) Executive’s material violation of this Agreement, the Confidentiality Agreement, or any Company policy; (c) Executive willfully engaging in illegal conduct; or (d) Executive’s engagement in acts of material dishonesty.

 

1

 

 

2.     Compensation and Benefits During Transition Period. While Executive is employed by the Company during the Transition Period, (a) the Company will maintain Executive’s current base salary, payable according to the Company’s regular payroll schedule and subject to all legally required and authorized withholdings, and (b) Executive will be eligible to participate in all employee benefit plans and programs generally available from time to time to employees of the Company, to the extent that Executive meets the eligibility requirements for each individual plan or program and subject to the provisions, rules, and regulations of, or applicable to, the plan or program. Except as set forth in this Section 2, Executive will not be eligible to receive any other form of compensation of any kind during the Transition Period.

 

3.     Duties and Authority. During the Transition Period, Executive shall properly and timely perform those duties requested by the Company from time to time. Executive shall perform all such duties diligently and in good faith. The Company may relieve Executive of any or all duties during the Transition Period. During the Transition Period, Executive shall follow all applicable policies and procedures adopted by the Company, including without limitation policies related to business ethics, conflict of interest, confidentiality and protection of trade secrets, and shall not engage in any activity during the Transition Period that violates Executive’s obligations under the Confidentiality Agreement (as defined below) or that is detrimental or is reasonably likely to be detrimental to the Company’s best interests.

 

4.     Confidentiality Agreement. In consideration for the benefits provided to Executive under this Agreement, Executive agrees to execute and return the Agreement Regarding Non-Disclosure of Confidential Information and Non-Competition attached to this agreement as Exhibit B (the “Confidentiality Agreement”). Executive acknowledges entering into the Confidentiality Agreement in exchange for valid consideration and hereby affirms all of Executive’s obligations under the Confidentiality Agreement that remain in effect during the Transition Period and that survive the Separation Date. Executive further represents that Executive has not violated any of Executive’s obligations under the Confidentiality Agreement. It shall not be a violation of the Confidentiality Agreement for Executive to discuss Confidential Information (as defined in the Confidentiality Agreement) with officers, directors, or other key stakeholders of the Company that are similarly bound by agreements regarding the non-disclosure of Company confidential information.

 

5.     Early Termination. The Company will not terminate Executive’s employment before the Anticipated Separation Date, or such other date agreed between the Company and Executive, for any reason other than Cause (as defined in Section 1). Upon the termination of Executive’s employment for any reason, the Company will pay to Executive such compensation that has been earned under this Agreement but not paid to Executive as of the Separation Date, payable in accordance with the Company’s normal payroll policies and procedures. If, prior to the Anticipated Separation Date, the Company terminates Executive’s employment for Cause, or Executive terminates Executive’s employment for any reason before the Anticipated Separation Date, then Executive’s sole entitlement will be compensation that has been earned but not paid to Executive as of the Separation Date and Executive will not be eligible to receive the Severance Payment (as defined below).

 

2

 

 

6.     Severance Payment.

 

(a)     Payment. In consideration of the commitments under this Agreement, and subject to the conditions below, the Company will pay Executive severance pay of $225,000, less all legally required and authorized withholdings (the “Severance Payment”), payable in a single lump sum on the Company’s first normal payroll date following the expiration of the rescission period applicable to the Release (as defined below).

 

(b)     Additional Commitments. In exchange for the benefits provided under this Agreement, Executive agrees that on or within 21 days after the Separation Date Executive will sign a release in the form substantially as attached hereto as Exhibit A (the “Release”). This Agreement will not be interpreted or construed to limit the Release in any manner. The existence of any dispute respecting the interpretation of this Agreement or the alleged breach of this Agreement will not nullify or otherwise affect the validity or enforceability of the Release.

 

(c)     Conditions. The Company shall not be obligated to provide the Severance Payments unless and until Executive (i) signs this Agreement, and signs and does not rescind the Release within the time periods set forth in the Release, (ii) remains employed until the Anticipated Separation Date (or such other date as mutually agreed between Executive and the Company), (iii) signs and returns the Confidentiality Agreement, and (iv) is in compliance with Executive’s obligations under this Agreement, the Release and the Confidentiality Agreement.

 

7.     Board Service. 

 

(a)     Role. Unless Executive’s employment with the Company is terminated for Cause, Executive shall continue to serve as the Chairman of the Company’s Board of Directors (the “Board”) immediately following the Separation Date. Executive’s subsequent service on the Board shall be subject to annual election by the Company’s shareholders.

 

(b)     Compensation. During his service as Chairman, Executive shall receive a retainer fee of $4,000 per quarter and an additional $4,000 fee per Board meeting in which Executive serves as Chairman. These fees may be adjusted by the Board in accordance with its normal review processes, provided however, each of the quarterly retainer fee and per meeting fees for Executive in connection with his service as Chairman of the Board will be the greater of (i) $4,000, or (ii) twice the fees of other directors (excluding any director who is designated as a financial expert).

 

(c)     Additional Entitlements. During his service as Chairman of the Board, the Company shall provide Executive (i) an office at the Ikonics West location for use in connection with his responsibilities as Chairman for the 2020 calendar year, and (ii) Executive’s annual dues for the Kitchi Gammi Club. If Executive’s service as Chairman terminates, the Company may discontinue these entitlements.

 

3

 

 

8.     Return Of Property. Upon termination of Executive’s employment with the Company, or at any earlier time upon request from the Company, Executive shall deliver promptly to the Company all Company materials and property that may be in Executive’s possession or under Executive’s control, including without limitation all confidential or proprietary information and any computers, credit cards, keys, records, files, documents, data, photographs, video tapes, audio tapes, computer disks and other computer storage media, except to the extent any Company property is anticipated to be used in connection with Executive’s continued service on the Board. The Company will allow Executive to keep his Company iPad and cellphone, provided the Company receives satisfactory confirmation that all Company property has been removed (except that required for him to perform his services to the Board). The Company will also cooperate with Executive to transfer his Company telephone number to a personal cellular phone plan. 

 

8.     Agreement Regarding Confidentiality. To the fullest extent permitted by law, Executive agrees that the terms of this Agreement and the Release are confidential and that Executive may not disclose those terms to any person except: (a) as required by law; (b) as permitted under the terms of the Release; or (c) to Executive‘s attorneys, spouse and tax advisors, provided they agree to keep the terms of this Agreement and the Release confidential.

 

9.     Non-Admission. Nothing in this Agreement or the Release is intended to be, nor will be deemed to be, an admission by the Company that it has violated any law or that it has engaged in any wrongdoing.

 

10.     Entire Agreement. This Agreement and its Exhibits constitute the entire agreement between the parties with respect to the subject matter of this Agreement (including the Confidentiality Agreement), including the termination of Executive’s employment with the Company, and the Company and Executive agree that there were no inducements or representations leading to the execution of this Agreement except as stated in this Agreement.

 

11.     Amendment. This Agreement may be amended only by a writing that is signed by me and an authorized representative of the Company.

 

12.     Assignment. The rights and obligations of the Company under this Agreement shall inure to the benefit of and shall be binding upon its agents, employees, successors, assigns, heirs, attorneys, trustees, estates and representatives. The rights and obligations of Executive under this Agreement shall not be subject to transfer or assignment by Executive without the written consent of the Company.

 

13.     Governing Law and Jurisdiction. This Agreement and the Release shall be interpreted and construed in accordance with the laws of Minnesota, without regard to conflict of laws principles. Minnesota state or federal courts will have personal and subject-matter jurisdiction over any litigation arising out of or relating to this Agreement or the Release. Any action involving claims for interpretation, breach or enforcement of this Agreement or the Release shall be brought in such courts. Executive and the Company consent to personal jurisdiction over them in the state and/or federal courts of Minnesota and each hereby waives any defense of lack of personal jurisdiction or inconvenient forum.

 

[signature page follows]

 

4

 

 

 

	
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

			
	
			 Dated: January 7, 2020

				
			/s/ William Ulland

				
			 

			
	
			 

				
			William Ulland

				
			 

			
	
			 

				
			 

				
			 

			

 

 

	
			 Dated January 7, 2020

				
			IKONICS CORPORATION 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Marianne Bohren 

				
			 

			

	
			 

				
			Name: Marianne Bohren

				
			 

			
	
			 

				
			Its: Director 

				
			 

			

 

 

Signature page to Ulland Transition Agreement

 

 

EXHIBIT A

 

RELEASE BY 

WILLIAM ULLAND

 

Definitions. I intend all words used in this Release by William Ulland (“Release”) to have their plain meanings in ordinary English. Specific terms that I use in this Release have the following meanings:

 

	 	
			A.

				
			I, me, and my includes me (William Ulland) and anyone who has or obtains any legal rights or claims through me.

			

 

	 	
			B.

				
			Ikonics means Ikonics Corporation and any entity related to Ikonics Corporation in the present or past, including without limitation, its predecessors, parents, subsidiaries, members, affiliates, and divisions, and any successors of Ikonics Corporation.

			

 

	 	
			C.

				
			Company means Ikonics; the present and past officers, directors, committees, shareholders and employees of the Company; any company providing employment or employee benefit services to the Company in the past or present, and the present and past fiduciaries of such plans (other than multiemployer plans); the attorneys for the Company; and anyone who acted on behalf of the Company or on instructions from the Company.

			

 

	 	
			D.

				
			Severance Payment has the meaning given to such term in the Transition Agreement.

			

 

	 	
			E.

				
			Confidentiality Agreement has the meaning given to such term in the Transition Agreement.

			

 

	 	
			F.

				
			Separation Date has the meaning given to such term in the Transition Agreement.

			

 

	 	
			G.

				
			Transition Agreement means the Transition and Separation Agreement by and between Ikonics and me that I signed on January 7, 2020.

			

 

	 	
			H.

				
			My Claims means all of my rights that I now have to any relief of any kind from the Company, including without limitation:

			

 

	 	
			1.

				
			all claims arising out of or relating to my employment with Ikonics or the termination of that employment;

			

 

	 	
			2.

				
			all claims arising out of or relating to the statements, actions, or omissions of the Company;

			

 

	 	
			3.

				
			all claims arising out of or relating to any agreements (whether express or implied) to which I and the Company are parties;

			

 

 

 

 

	 	
			4.

				
			all claims for any alleged unlawful discrimination, harassment, retaliation or reprisal, or other alleged unlawful practices arising under any federal, state, or local statute, ordinance, or regulation, including without limitation, claims under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act and the ADA Amendments Act (“ADA”), the Age Discrimination in Employment Act (“ADEA”), 42 U.S.C. § 1981, the Family Medical Leave Act (“FMLA”), the Executive Retirement Income Security Act (“ERISA”), the Worker Adjustment and Retraining Notification Act (“WARN”), the Lilly Ledbetter Fair Pay Act of 2009, the Genetic Information Nondiscrimination Act, the Fair Credit Reporting Act, the National Labor Relations Act (“NLRA”), the Minnesota Human Rights Act (Minnesota Statutes Chapter 363A), Minnesota Statutes Chapter 181, and workers’ compensation non-interference or non-retaliation statutes (such as Minn. Stat. § 176.82);

			

 

	 	
			5.

				
			all claims for alleged wrongful discharge; breach of contract; breach of implied contract; failure to keep any promise; breach of a covenant of good faith and fair dealing; breach of fiduciary duty; estoppel; defamation; infliction of emotional distress; fraud; misrepresentation; negligence; harassment; retaliation or reprisal; constructive discharge; assault; battery; false imprisonment; invasion of privacy; interference with contractual or business relationships; any other wrongful employment practices; and violation of any other principle of common law;

			

 

	 	
			6.

				
			all claims for compensation of any kind and employee benefits of any kind relating to my employment, including without limitation, bonuses, commissions, deferred compensation, stock options, equity awards or equity-based compensation in any form, vacation pay, perquisites, relocation expenses and expense reimbursements;

			

 

	 	
			7.

				
			all claims for back pay, front pay, reinstatement, other equitable relief, compensatory damages, damages for alleged personal injury, liquidated damages, and punitive damages;

			

 

	 	
			8.

				
			all claims that a past unlawful decision has or has had a continuing effect on my compensation; and

			

 

	 	
			9.

				
			all claims for attorneys’ fees, costs, and interest.

			

 

However, My Claims do not include (i) any claims for unemployment benefits, (ii) any claims that the law does not allow to be waived, (iii) any claims related to my compensation for my service on the Ikonics Board of Directors, or (iv) any claims that may arise after the date on which I sign this Release.

 

 

 

 

Agreement to Release My Claims.  I acknowledge and agree that Ikonics has agreed to provide me the Severance Payment in connection with the Transition Agreement, and that if I do not sign, or I rescind this Release as provided below, Ikonics shall be relieved of its obligations to provide the Severance Payment. I understand and acknowledge that the Severance Payment is in addition to anything of value that I would be entitled to receive from Ikonics if I did not sign this Release or if I rescinded this Release. In exchange for the commitments of Ikonics under the Transition Agreement I give up and release all of My Claims. I will not make any demands or claims against the Company for compensation or damages relating to My Claims. The Severance Payment that I am receiving is a fair compromise for the release of My Claims. Furthermore, I understand and agree that, with the exception of money provided to me by a governmental agency as an award for providing information, I am not entitled to receive any money or other relief in connection with My Claims, regardless of who initiated or filed the charge or other proceeding. Furthermore, My Claims include my right to recover any damages or other relief in any administrative charge before the Equal Employment Opportunity Commission or any similar state or local agency or any court action based on any such charge.

 

No Other Rights To Compensation. I understand and acknowledge that, except as provided in this Release, and subject to the terms and conditions of this Release, the Company is not obligated to make any payments to me of any kind and does not have any other outstanding obligations to me under any agreement or arrangement between me and the Company or under any Company plan or policy.

 

Additional Agreements and Understandings. Even though Ikonics will provide the Severance Payment in exchange for me to settle and release My Claims, the Company does not admit that it is responsible or legally obligated to me. In fact, the Company denies that it is responsible or legally obligated to me for My Claims, denies that it engaged in any unlawful or improper conduct toward me, and denies that it treated me unfairly.

 

Confirmation of Obligations Under The Confidentiality Agreement. I acknowledge entering into the Confidentiality Agreement, represent that I have not violated any terms included in the Confidentiality Agreement, and hereby reaffirm my agreement to remain bound by, and to abide by, all terms of the Confidentiality Agreement that survive my Separation Date.

 

Confidentiality. To the fullest extent permitted by law, I agree that the terms of this Release are confidential and that I may not disclose those terms to any person except: (a) as required by law; or (b) to my attorneys, spouse and tax advisors, provided they agree to keep the terms of this Release confidential. Notwithstanding any other language in this Release or the Confidentiality Agreement to the contrary, I understand that I may 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 if such disclosure is made solely for the purpose of reporting or investigating a suspected violation of law or for pursuing an anti-retaliation lawsuit; or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal and you do not disclose the trade secret except pursuant to a court order.

 

Non-Disparagement. To the fullest extent permitted by law, I agree that I will not make any false, disparaging or derogatory statements to anyone, including but not limited to any media outlet, industry group, financial institution, current or former employee, consultant, client or customer of Ikonics regarding the Company or about the Company’s business affairs and financial condition, capability or any other aspect of the Company’s business, and I will not engage in any conduct which is intended to, or does, harm professionally or personally the reputation of the Company.

 

 

 

 

Cooperation. In partial consideration for the Severance Payment being paid to me under the Transition Agreement, to the fullest extent permitted by law, I agree to cooperate with the Company’s reasonable requests, subject to my own availability, in: (a) providing information; (b) resolving questions; or (c) transitioning any responsibilities of information, pertaining to any matters which arose during my employment by Ikonics about which I have or may have knowledge of the underlying facts or for which I had responsibility during my employment with Ikonics.

 

Return Of Property. I represent that I have delivered to Ikonics all Company property that was previously in my possession or under my control, including without limitation any computers, credit cards, keys, records, files, documents, data, computer disks and other computer storage media, except for that property required for my continued service on the Ikonics Board of Directors and that property I am specifically entitled to maintain under the Transition Agreement.

 

No Unlawful Restriction. I understand and agree that nothing in this Release, including the Confidentiality, Non-Disparagement and Cooperation provisions above, is intended to or will: (a) impose any condition, penalty, or other limitation on my rights to challenge this Release; (b) constitute an unlawful release of my rights; or (c) prevent or interfere with my ability or right to provide truthful testimony if under subpoena to do so, to file any charge with or participate in any investigation or proceeding before the U.S. Equal Employment Opportunity Commission or any other federal, state or local governmental agency, or to respond to a subpoena, court order or as otherwise provided by law.

 

Advice to Consult with an Attorney.  I understand and acknowledge that I am hereby being advised by the Company to consult with an attorney prior to signing this Release. My decision whether to sign this Release is my own voluntary decision made with full knowledge that the Company has advised me to consult with an attorney.

 

Period to Consider the Release. I understand that I have 21 calendar days from the Separation Date or the date on which I receive this Release, whichever is later and not counting the Separation Date or the date on which I receive this Release (as applicable), to consider whether I wish to sign this Release. If I sign this Release before the end of the 21-day period, it will be my voluntary decision to do so because I have decided that I do not need any additional time to decide whether to sign this Release. I also agree that any changes made to this Release before I sign it, whether material or immaterial, will not restart the 21-day period.

 

My Right to Rescind this Release. I understand that I may rescind this Release at any time within 15 calendar days after I sign it, not counting the day upon which I sign it. This Release will not become effective or enforceable unless and until the 15-day rescission period has expired without my rescinding it.

 

Procedure for Accepting or Rescinding the Release. To accept the terms of this Release, I must deliver this Release, after I have signed and dated it, to Ikonics by hand or by mail within the 21-day period that I have to consider this Release. To rescind my acceptance, I must deliver a written, signed statement that I rescind my acceptance to Ikonics by hand or by mail within the 15-day rescission period. All deliveries must be made to Ikonics at the following address:

 

Ernest Harper

Ikonics Corporation

4832 Grand Avenue

Duluth, MN 55807

 

If I choose to deliver my acceptance or the rescission of my acceptance by mail, it must be (1) postmarked within the period stated above; and (2) properly addressed to Ikonics at the address stated above.

 

 

 

 

Entire Agreement. This Release, the Transition Agreement, and the Confidentiality Agreement constitute the entire agreement between me and the Company with respect to the subject matter of this Release, the Transition Agreement, and the Confidentiality Agreement, including the termination of my employment with the Company, and I agree that there were no inducements or representations leading to the execution of this Release except as stated in this Release, the Transition Agreement, and the Confidentiality Agreement.

 

Amendment. This Release may be amended only by a writing that is signed by me and an authorized representative of the Company.

 

Waiver. No term or condition of this Release shall be deemed to have been waived except by a statement in writing signed by the party against whom the enforcement of the waiver is sought. The waiver by the Company of the breach or nonperformance of any provision of this Release by me will not operate or be construed as a waiver of any future breach or nonperformance under any such provision of this Release.

 

Governing Law and Jurisdiction. This Release shall be governed by and interpreted in accordance with the laws of the State of Minnesota, without regard to conflicts of law provisions. Minnesota state or federal courts will have personal and subject-matter jurisdiction over any litigation arising out of or relating to this Release. Any action involving claims for interpretation, breach or enforcement of this Release shall be brought in such courts. I consent to personal jurisdiction over me in the state and/or federal courts of Minnesota and hereby waive any defense of lack of personal jurisdiction or inconvenient forum.

 

Severability. In case any one or more of the provisions of this Release is determined invalid, illegal, or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained in this Release will not in any way be affected or impaired thereby.

 

Heirs, Successors, and Assigns. This Release shall be binding upon me and my heirs, administrators, representatives, or executors, and upon the Company’ successors or assigns. No assignment of this Release may be made by me, and any such purported assignment shall be null and void. The Company may assign its rights or obligations under this Release to any successor or assign of the Company without further consent by me.

 

Interpretation of the Release. This Release should be interpreted as broadly as possible to achieve my intention to resolve all of My Claims against the Company. If this Release is held by a court to be inadequate to release a particular claim encompassed within My Claims, this Release will remain in full force and effect with respect to all the rest of My Claims.

 

My Representations. I am legally able and entitled to receive the Consideration being provided to me in settlement of My Claims. I have not been involved in any personal bankruptcy or other insolvency proceedings at any time since I began my employment with the Company. No child support orders, garnishment orders, or other orders requiring that money owed to me by Ikonics be paid to any other person are now in effect.

 

 

 

 

I represent and confirm that I have been fully paid for all wages, overtime, commissions, bonuses, and other compensation that I have earned through the date of this Release.

 

I have read this Release carefully. I understand all of its terms. In signing this Release, I have not relied on any statements or explanations made by the Company except as specifically set forth in this Release, the Transition Agreement, and the Confidentiality Agreement. I am voluntarily releasing My Claims against the Company. I intend this Release to be legally binding.

 

 

	Dated:	 	 	 	 
	 	 	 	William Ulland	 

 

 

 

 

Exhibit B

 

IKONICS CORPORATION

AGREEMENT REGARDING NON-DISCLOSURE

OF CONFIDENTIAL INFORMATION

AND NON-COMPETITION

 

 

	
			1.

				
			INTRODUCTION

			

 

Ikonics Corporation (“Ikonics”) and William Ulland (“Executive”) acknowledges that Ikonics will disclose or has already disclosed to Executive certain Confidential Information as defined in Section 2. Executive recognizes that the Confidential Information is a business asset of Ikonics, the value of which can only be protected by maintaining the secrecy of the Confidential Information. Executive further acknowledges that in the course of his employment by Ikonics, Executive will establish or has already established personal contacts and relationships with Ikonics’ customers and that such personal contacts and relationships are valuable business assets of Ikonics.

 

Executive, therefore, enters into this Agreement Regarding Non-Disclosure of Confidential Information and Non-Competition (“Agreement”) in consideration of Ikonics’ offer continuing employment and other transition arrangements, in consideration of being given access to Confidential Information, and for other good and valuable consideration. Executive and Ikonics, intending to be legally bound, agree as follows:

 

 

	
			2.

				
			DEFINITIONS. For the purposes of this Agreement:

			

 

	 	
			(a)

				
			“Ikonics” means the IKONICS CORPORATION, its successors in interest, assigns, and all of its parent, subsidiary or affiliate corporations and the operating divisions thereof.

			

 

	 	
			(b)

				
			“Confidential Information” means any information that Executive learns or develops during the course of employment with Ikonics that derives independent economic value from not being generally known, or not being readily ascertainable by proper means, by other persons who can obtain economic value from the disclosure or use of such information. Such information includes, but is not limited to, Ikonics’ sales and marketing information, information about new or future products, lists of Ikonics’ customers and information about customer purchases and preferences, business strategies, financial information, personnel information, information regarding research and development, manufacturing processes or management systems and any other information which provides Ikonics with a competitive advantage or is otherwise confidential or proprietary information of Ikonics.

			

 

 

 

 

	 	
			(c)

				
			“Inventions” means any improvement, discovery, writing, formula or idea (whether or not patentable or subject to copyright protection) relating to the existing or reasonably foreseeable business interests of Ikonics or resulting from any work performed by Executive for Ikonics. Inventions include, but are not limited to, methods, techniques, manufacturing practices or processes, and improvements thereof or know-how related thereto, as well as any copyrightable material and any trademark or trade name whether or not subject to trademark protection.

			

 

	 	
			(d)

				
			“Ikonics Product” means any actual or projected product, product line or service that has been designed, developed, manufactured, marketed or sold by Ikonics during Executive’s employment with Ikonics or regarding which Ikonics has conducted or acquired research and development during Executive’s employment with Ikonics.

			

 

	 	
			(e)

				
			“Competitive Product” means any actual or projected product, product line or service that has been or is being designed, developed, manufactured, marketed or sold by anyone other than Ikonics which performs similar functions or is used for the same or similar general purposes as an Ikonics Product.

			

 

	 	
			(f)

				
			“Solicitation of Sales” means activities intended to acquire sales or influence customers to establish, continue, or increase business, including without limitation, providing information or conducting demonstrations in anticipation of sales as well as other acts of service including, but not limited to, delivery and maintenance.

			

 

	 	
			(g)

				
			“Ikonics Customer” means any person or entity with whom Executive had contact of any sort for the purpose of selling, marketing, promoting or servicing any Ikonics Product during the time Executive was employed by Ikonics.

			

 

 

	
			3.

				
			NON-COMPETITION

			

 

During the term of employment and for a period of two (2) years following termination of employment, for whatever reason (the “Restricted Period”), Executive will not directly or indirectly, participate in or support the sale of, Solicitation of Sales of, or marketing of any Competitive Product, including the participation in or supporting the sale of, Solicitation of Sales of, or marketing of any Competitive Product to any Ikonics Customer.

 

 

 

 

During the Restricted Period, Executive shall not, directly or indirectly, solicit, encourage, or attempt to solicit any Ikonics Customer to reduce or otherwise adversely change its relationships with Ikonics.

 

During the Restricted Period, Executive will not induce or attempt to induce any Ikonics Executive or contractor for whom Executive had direct or indirect managerial or supervisory responsibilities to leave his employment or engagement with Ikonics, or otherwise induce or attempt to induce an adversely impact to any Executive’s employment or relationship with Ikonics. Such prohibition includes, without limitation, all acts of recruitment including offering employment, seeking expressions of interest in employment or discussing employment opportunities.

 

The restrictions contained in this Section 3 shall apply regardless of whether Executive acts directly or indirectly; or whether Executive acts personally or as an employee, agent, supervisor, manager, or otherwise for another.

 

 

	
			4.

				
			NON-DISCLOSURE OF CONFIDENTIAL INFORMATION

			

 

Executive agrees not to disclose, during the course of Executive’s employment by Ikonics or thereafter, in any manner to any person not employed by Ikonics, any Confidential Information, except to the extent that such disclosure or use is directly related to and required by Executive’s performance in good faith of duties assigned to Executive by Ikonics. Executive will take all appropriate steps to safeguard Confidential Information in Executive’s possession and to protect it against disclosure, misuse, espionage, loss and theft. Executive understands that such obligation is not only contractual, but is specified in Minnesota Statues § 325C. Within twenty-four (24) hours of termination of Executive’s employment with Ikonics, for whatever reason, Executive agrees to return to Ikonics all originals and copies of documents containing Confidential Information as well as all documents generated by Executive on behalf of Ikonics and all documents relating to the business of Ikonics from any source whatsoever.

 

 

 

 

Nothing in this Agreement will preclude, prohibit or restrict Executive from (i) communicating with any federal, state or local administrative or regulatory agency or authority, including but not limited to the Securities and Exchange Commission (the “SEC”); (ii) participating or cooperating in any investigation conducted by any governmental agency or authority; or (iii) filing a charge of discrimination with the United States Equal Employment Opportunity Commission or any other federal state or local administrative agency or regulatory authority. Nothing in this Agreement, or any other agreement between the parties, prohibits or is intended in any manner to prohibit, Executive from (1) reporting a possible violation of federal or other applicable law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the SEC, the U.S. Congress, and any governmental agency Inspector General, or (2) making other disclosures that are protected under whistleblower provisions of federal law or regulation. This Agreement does not limit Executive’s right to receive an award (including, without limitation, a monetary reward) for information provided to the SEC. Executive does not need the prior authorization of anyone at Ikonics to make any such reports or disclosures, and Executive is not required to notify Ikonics that Executive has made such reports or disclosures. Nothing in this Agreement or any other agreement or policy of Ikonics is intended to interfere with or restrain the immunity provided under 18 U.S.C. §1833(b). Executive understands he cannot be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made (x) (A) in confidence to federal, state or local government officials, directly or indirectly, or to an attorney, and (B) for the purpose of reporting or investigating a suspected violation of law; (y) in a complaint or other document filed in a lawsuit or other proceeding, if filed under seal; or (z) in connection with a lawsuit alleging retaliation for reporting a suspected violation of law, if filed under seal and does not disclose the trade secret, except pursuant to a court order.

 

 

	
			5.

				
			INVENTIONS AND PROPRIETARY INFORMATION

			

 

(a)     Executive will grant and does hereby grant to Ikonics the sole and exclusive ownership of, including the sole and exclusive right to reproduce, use or disclose for any purpose, any and all reports, drawings, blueprints, software code, computer programs, data, writings and technical information made or prepared by Executive alone or with other during the term of Executive’s employment, whether or not made or prepared in the course of Executive’s employment, that relate to apparatus, compositions of matter or methods pertaining to Ikonics’ business. Executive acknowledges that all such reports, drawings, blueprints, software code, computer programs, data, writings and technical information are property of Ikonics.

 

(b)     Executive will promptly disclose to Ikonics in writing all Inventions and proprietary information that Executive alone or with others conceives, generates, or reduces to practice, during or after working hours, while Executive is an employee of Ikonics; and all such Inventions and proprietary information shall be the exclusive property of Ikonics and are hereby assigned to Ikonics, except as otherwise specifically agreed to by Ikonics in writing.

 

(c)     Executive will, at Ikonics’ expense, give Ikonics all assistance it reasonably requires to perfect, protect and use its rights to Inventions and proprietary information. In particular, but without limitation, Executive will sign all documents, do all things, and supply all information that Ikonics may deem necessary or desirable to (1) transfer or record the transfer of Executive’s entire right, title and interest in Inventions and proprietary information; and (2) enable Ikonics to obtain patent, copyright or trademark protection for Inventions anywhere in the world.

 

 

 

 

(d)     The obligations to transfer and assign intellectual property rights shall not apply to (1) all patents issued in Executive’s name alone or with others, prior to the date of signing this Agreement; (2) Inventions for which no equipment, supplies, facility or trade secret information of Ikonics were used and which are developed entirely on Executive’s own time, and (a) which do not relate directly to the business of Ikonics or to Ikonics’ actual or demonstrably anticipated research or development, or (b) which do not result from any work performed by me for Ikonics.

 

 

	
			6.

				
			INJUNCTIVE RELIEF

			

 

Executive agrees that Ikonics remedy at law for breach of this Agreement is inadequate. Ikonics, therefore, shall be entitled to injunctive relief to enforce the terms of this Agreement, in addition to any other remedy Ikonics might have.

 

 

	
			7.

				
			SEVERABILITY

			

 

The invalidity of any portion of this Agreement shall not impair or affect enforceability of the remainder. If any of these restrictions is determined to be unenforceable as to duration or extent, or for any reason whatsoever, such restriction shall be effective for such period of time and for such extent as it may be enforceable.

 

 

	
			8.

				
			PRIOR AGREEMENTS

			

 

This Agreement and any prior non-compete and non-disclosure agreements signed by Executive in connection with his or her employment at Ikonics shall constitute a single agreement. In case of conflict between any provision of this Agreement and any provision of any other such agreement, the provisions of this Agreement shall control. If the provisions of this Agreement so selected are determined to be unenforceable as written, then they shall be interpreted in accordance with Section 7 (Severability) to make them enforceable to the maximum extent provided by law. If the provisions of this Agreement so selected are determined to be unenforceable in their entirety and cannot be revised pursuant to Section 7 (Severability) to make them enforceable, then such provisions shall give way to the most restrictive provision in any other such agreement which covers the same issue and which is enforceable. There are no agreements, representations, or warranties relating to the subject matter of this Agreement which are not set forth in this Agreement and the prior non-compete and non-disclosure agreements (if any) signed by Executive.

 

 

 

 

	
			9.

				
			NON-EMPLOYMENT AGREEMENT

			

 

This Agreement is not an employment contract and does not give Executive any right to continued employment. Executive acknowledges that his employment with Ikonics is terminable at will at any time by either party.

 

 

	
			10.

				
			GOVERNING LAW/CONSENT TO PERSONAL JURISDICTION

			

 

This Agreement will be construed and enforced in accordance with the laws of the State of Minnesota. Executive hereby consents to the exercise of personal jurisdictions over him by the courts of the State of Minnesota.

 

 

	 	 	IKONICS CORPORATION	 	 EXECUTIVE
	 	 	 	 	 
	 	 	 	 	 
	 	BY	 	 	 
	 	 	 (Signature)	 	(Signature)
	 	 	 	 	 
	 	 	 	 	 

 

	 	DATE	 	 	 
	 	 	 	 	(Printed Name)
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	DATE

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