Document:

Exhibit 10.3

 

 

 

ADMINISTRATION AGREEMENT

 

among

 

HARLEY-DAVIDSON MOTORCYCLE TRUST 2021-A,

 

as Issuer,

 

HARLEY-DAVIDSON CREDIT CORP.,

 

as Administrator,

 

HARLEY-DAVIDSON CUSTOMER FUNDING CORP.,

 

as Trust Depositor,

 

and

 

CITIBANK, N.A.,

 

as Indenture Trustee

 

 

Dated as of February 1, 2021

 

 

 

TABLE OF CONTENTS

 

	
SECTION 1.
    	
DUTIES OF THE   ADMINISTRATOR
    	
1
    
	
SECTION 2.
    	
RECORDS
    	
7
    
	
SECTION 3.
    	
COMPENSATION
    	
7
    
	
SECTION 4.
    	
ADDITIONAL INFORMATION   TO BE FURNISHED TO THE ISSUER
    	
7
    
	
SECTION 5.
    	
INDEPENDENCE OF THE   ADMINISTRATOR
    	
7
    
	
SECTION 6.
    	
NO JOINT VENTURE
    	
7
    
	
SECTION 7.
    	
OTHER ACTIVITIES OF   ADMINISTRATOR
    	
8
    
	
SECTION 8.
    	
TERM OF AGREEMENT;   RESIGNATION AND REMOVAL OF ADMINISTRATOR
    	
8
    
	
SECTION 9.
    	
ACTION UPON   TERMINATION, RESIGNATION OR REMOVAL
    	
9
    
	
SECTION 10.
    	
NOTICES
    	
9
    
	
SECTION 11.
    	
AMENDMENTS
    	
9
    
	
SECTION 12.
    	
SUCCESSORS AND ASSIGNS
    	
10
    
	
SECTION 13.
    	
GOVERNING LAW
    	
10
    
	
SECTION 14.
    	
HEADINGS
    	
10
    
	
SECTION 15.
    	
COUNTERPARTS; ORIGINALS
    	
10
    
	
SECTION 16.
    	
SEVERABILITY
    	
10
    
	
SECTION 17.
    	
NOT APPLICABLE TO   HARLEY-DAVIDSON IN OTHER CAPACITIES
    	
11
    
	
SECTION 18.
    	
LIMITATION OF LIABILITY   OF OWNER TRUSTEE AND INDENTURE TRUSTEE
    	
11
    
	
SECTION 19.
    	
THIRD-PARTY BENEFICIARY
    	
11
    
	
SECTION 20.
    	
SURVIVABILITY
    	
11
    

 

 

This Administration Agreement (this “Agreement”), dated as of February 1, 2021, among Harley-Davidson Motorcycle Trust 2021-A (the “Issuer”), Harley-Davidson Credit Corp. (together with its successors and assigns “Harley-Davidson Credit” and in its capacity as administrator, the “Administrator”), Harley-Davidson Customer Funding Corp. (the “Trust Depositor”), and Citibank, N.A., not in its individual capacity but solely as Indenture Trustee (together with its successors and assigns, the “Indenture Trustee”).

 

W I T N E S S E T H:

 

WHEREAS, the Issuer is issuing the Notes pursuant to the Indenture, dated as of the date hereof (the “Indenture”), between the Issuer and the Indenture Trustee (capitalized terms used herein that are not otherwise defined shall have the meanings ascribed thereto in the Indenture or the Sale and Servicing Agreement);

 

WHEREAS, the Issuer has entered into certain agreements in connection with the issuance of the Notes including (i) a Sale and Servicing Agreement, dated as of the date hereof (the “Sale and Servicing Agreement”), among the Issuer, the Indenture Trustee, the Trust Depositor and Harley-Davidson Credit, as servicer (together with its successors and assigns in such capacity, the “Servicer”), and (ii) the Indenture (collectively referred to hereinafter as the “Transaction Documents”);

 

WHEREAS, pursuant to the Transaction Documents, the Issuer and the Owner Trustee are required to perform certain duties in connection with (i) the Notes and the collateral therefor pledged pursuant to the Indenture (the “Collateral”) and (ii) the beneficial ownership interest in the Issuer;

 

WHEREAS, the Issuer and the Owner Trustee desire to have the Administrator perform certain of the duties of the Issuer and the Owner Trustee referred to in the preceding clause and to provide such additional services consistent with the terms of this Agreement and the Transaction Documents as the Issuer and the Owner Trustee may from time to time request; and

 

WHEREAS, the Administrator has the capacity to provide the services required hereby and is willing to perform such services for the Issuer and the Owner Trustee on the terms set forth herein;

 

NOW, THEREAFTER, in consideration of the mutual covenants contained herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

Section 1.                                                  Duties of the Administrator.

 

(a)                                        Duties with respect to the Indenture.

 

(i)                                           The Administrator agrees to perform all its duties as Administrator and the duties of the Issuer and the Owner Trustee under the Indenture and the Sale and Servicing Agreement.  In addition, the Administrator shall consult with the Owner Trustee regarding the duties of the 

 

 

Issuer or the Owner Trustee under the Indenture.  The Administrator shall monitor the performance of the Issuer and shall advise the Owner Trustee when action is necessary to comply with the respective duties of the Issuer and the Owner Trustee under the Indenture.  The Administrator shall prepare for execution by the Issuer, or shall cause the preparation by other appropriate persons of, all such documents, reports, filings, instruments, certificates and opinions that it shall be the duty of the Issuer or the Owner Trustee to prepare, file or deliver pursuant to the Indenture.  In furtherance of the foregoing, the Administrator shall take all appropriate action that the Issuer or the Owner Trustee is required to take pursuant to the Indenture including, without limitation, such of the following as are required with respect to the foregoing matters under the Indenture (references are to Sections of the Indenture):

 

(A)                                    the duty to cause the Note Register to be kept and to give the Indenture Trustee notice of any appointment of a new Note Registrar and the location, or change in location, of the Note Register (Section 2.04);

 

(B)                                     the notification of Noteholders of the final principal payment on their Notes (Section 2.07(b));

 

(C)                                     the fixing or causing to be fixed of any special record date and the notification of the Indenture Trustee and Noteholders with respect to special payment dates, if any (Section 2.07(c));

 

(D)                                    the preparation of or obtaining of the documents and instruments required for execution and authentication of the Notes and delivery of the same to the Indenture Trustee (Section 2.02);

 

(E)                                      the preparation, obtaining or filing of the instruments, opinions and certificates and other documents required for the release of Collateral (Section 2.12);

 

(F)                                       the maintenance of an office for registration of transfer or exchange of Notes (Section 3.02);

 

(G)                                    the duty to cause newly appointed Paying Agents, if any, to deliver to the Indenture Trustee the instrument specified in the Indenture regarding funds held in trust (Section 3.03);

 

(H)                                    the direction to the Indenture Trustee to deposit monies with Paying Agents, if any, other than the Indenture Trustee (Section 3.03);

 

(I)                                           the obtaining and preservation of the Issuer’s qualification to do business in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of the Indenture, the Notes, the Collateral and each other instrument and agreement included in the Collateral (Section 3.04);

 

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(J)                                         the preparation of all supplements and amendments to the Indenture and all financing statements, continuation statements, instruments of further assurance and other instruments and the taking of such other action as is necessary or advisable to protect the Collateral other than as prepared by the Servicer (Section 3.05);

 

(K)                                    the delivery of the Opinion of Counsel on the Closing Date and certain other statements as to compliance with the Indenture (Sections 3.06 and 3.09);

 

(L)                                      the identification to the Indenture Trustee in an Officer’s Certificate of a Person with whom the Issuer has contracted to perform its duties under the Indenture (Section 3.07(b));

 

(M)                                 the notification of the Indenture Trustee and each Rating Agency of an Event of Termination under the Sale and Servicing Agreement and of the appointment of a Successor Servicer (Section 3.07(d));

 

(N)                                    the duty to cause the Servicer to comply with Article Five and Article Nine of the Sale and Servicing Agreement (Section 3.14);

 

(O)                                    the preparation and obtaining of documents and instruments required for the release of the Issuer from its obligations under the Indenture (Section 3.10(b) and Section 3.11(b));

 

(P)                                       the delivery of written notice to the Indenture Trustee and each Rating Agency of each Event of Default under the Indenture and each Event of Termination by the Servicer under the Sale and Servicing Agreement (Section 3.18);

 

(Q)                                    the delivery of written notice to each Rating Agency of amendments to the Sale and Servicing Agreement (Section 3.21);

 

(R)                                     the monitoring of the Issuer’s obligations as to the satisfaction and discharge of the Indenture and the preparation of an Officer’s Certificate and the obtaining of the Opinion of Counsel and the Independent Certificate relating thereto (Section 4.01);

 

(S)                                       the compliance with any written directive of the Indenture Trustee with respect to the sale of the Collateral in a commercially reasonable manner if an Event of Default shall have occurred and be continuing and the delivery of written notice of such sale to the Rating Agencies (Section 5.04);

 

(T)                                      the preparation and delivery of notice to Noteholders of the removal of the Indenture Trustee and the appointment of a successor Indenture Trustee (Section 6.08);

 

(U)                                    the preparation of any written instruments required to confirm more fully the authority of any co-trustee or separate trustee and any written instruments necessary in connection with the resignation or removal of the Indenture Trustee or any co-trustee or separate trustee (Sections 6.08 and 6.10);

 

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(V)                                    the delivery of notice to the Rating Agencies of a successor Indenture Trustee by merger, conversion or consolidation of the Indenture Trustee (Section 6.09);

 

(W)                                the furnishing of the Indenture Trustee with the names and addresses of Noteholders during any period when the Indenture Trustee is not the Note Registrar (Section 7.01);

 

(X)                                    the opening of one or more accounts in the Indenture Trustee’s name, the preparation and delivery of Issuer Orders, Officer’s Certificates and Opinions of Counsel and all other actions necessary with respect to investment and reinvestment of funds in the Trust Accounts (Sections 8.02 and 8.03);

 

(Y)                                    the preparation of an Issuer Request and Officer’s Certificate and the obtaining of an Opinion of Counsel and Independent Certificates, if necessary, for the release of the Collateral (Sections 8.04 and 8.05);

 

(Z)                                      the preparation of Issuer Orders and the obtaining of Opinions of Counsel with respect to the execution of supplemental indentures and the mailing to the Rating Agencies and the Noteholders of notices with respect to such supplemental indentures (Sections 9.01, 9.02 and 9.03);

 

(AA)                        the execution and delivery of new Notes conforming to any supplemental indenture (Section 9.06);

 

(BB)                          the duty to notify each Rating Agency and the Indenture Trustee of redemption of the Notes (Section 10.01);

 

(CC)                          the preparation and delivery of all Officer’s Certificates, Opinions of Counsel and Independent Certificates with respect to any requests by the Issuer to the Indenture Trustee to take any action under the Indenture (Section 11.01(a));

 

(DD)                        the preparation and delivery of Officer’s Certificates and the obtaining of Independent Certificates, if necessary, for the release of property from the lien of the Indenture (Section 11.01(b));

 

(EE)                            the preparation and delivery to Noteholders and the Indenture Trustee of any agreements with respect to alternate payment and notice provisions (Section 11.06);

 

(FF)                              the recording of the Indenture, if applicable (Section 11.15); and

 

(GG)                        the appointment of a successor Indenture Trustee (Section 6.08).

 

(ii)                                      The Administrator will:

 

(A)                                    except as otherwise expressly provided in the Indenture, which provides for the payment of the Indenture Trustee Fee, pay the Indenture Trustee’s fees and reimburse the 

 

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Indenture Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Indenture Trustee in accordance with any provision of the Indenture (including the reasonable compensation, expenses and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to its negligence or bad faith;

 

(B)                                     indemnify the Indenture Trustee and its agents for, and hold them harmless against, any loss, liability or expense (including reasonable legal fees and expenses) incurred without negligence or bad faith on their part, arising out of or in connection with the acceptance or administration of the transactions contemplated by the Indenture, including the reasonable costs and expenses of (i) defending themselves against any claim or liability in connection with the exercise or performance of any of their powers or duties under the Indenture and (ii) enforcing this indemnity;

 

(C)                                     indemnify the Owner Trustee and its agents for, and hold them harmless against, any loss, liability or expense incurred without negligence or bad faith on their part, arising out of or in connection with the acceptance or administration of the transactions contemplated by the Trust Agreement, including the reasonable costs and expenses of defending themselves against any claim or liability in connection with the exercise or performance of any of their powers or duties under the Trust Agreement; and

 

(D)                                    maintain the effectiveness of all of the Issuer’s licenses required under the Pennsylvania Motor Vehicle Sales Finance Act in connection with the Indenture and the transactions contemplated thereby until the lien and security interest of the Indenture shall no longer be in effect in accordance with the terms thereof.

 

(b)                                       Additional Duties.

 

(i)                                           In addition to the duties set forth in Section 1(a)(i), the Administrator (A) shall perform such calculations and shall prepare or shall cause the preparation by other appropriate persons of, and shall execute on behalf of the Issuer or the Owner Trustee, all such documents, reports, filings, instruments, certificates and opinions that the Issuer or the Owner Trustee are required to prepare, file or deliver pursuant to the Transaction Documents or under Section 5.03 of the Trust Agreement, (B) shall deliver on behalf of the Issuer or the Owner Trustee, all notices required to be delivered to the Rating Agencies pursuant to the Transaction Documents and the Trust Agreement, and (C) at the request of the Owner Trustee shall take all appropriate action that the Issuer or the Owner Trustee are required to take pursuant to the Transaction Documents.  In furtherance thereof, the Owner Trustee shall, on behalf of the Issuer, execute and deliver to the Administrator and to each successor Administrator appointed pursuant to the terms hereof, one or more powers of attorney substantially in the form of Exhibit A hereto, appointing the Administrator the attorney-in-fact of the Issuer for the purpose of executing on behalf of the Owner Trustee and the Issuer all such documents, reports, filings, instruments, certificates and opinions.  Subject to Section 5, and in accordance with the directions of the Issuer, the Administrator shall administer, perform or supervise the performance of such other activities in connection with the Collateral (including the Transaction Documents) as are not covered by any 

 

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of the foregoing provisions and as are expressly requested by the Issuer and are reasonably within the capability of the Administrator.

 

(ii)                                      Notwithstanding anything in this Agreement or the Transaction Documents to the contrary, the Administrator shall be responsible for promptly notifying the Owner Trustee in the event that any withholding tax is imposed on the Trust’s payments (or allocations of income) to a Certificateholder as contemplated in Section 5.01(d) of the Trust Agreement.  Any such notice shall specify the amount of any withholding tax required to be withheld by the Owner Trustee pursuant to such provision.

 

(iii)                                 Notwithstanding anything in this Agreement or the Transaction Documents to the contrary, the Administrator shall be responsible for performance of the duties of the Owner Trustee set forth in Section 5.03(a), (c), (d), and (e), and the penultimate sentence of Section 5.03 of the Trust Agreement with respect to, among other things, accounting and reports to the Certificateholders; provided, however, that the Owner Trustee shall retain responsibility for the distribution of information forms necessary to enable each Certificateholder to prepare its federal and state income tax returns.

 

(iv)                                  If the Administrator or any of its Affiliates is not the sole Certificateholder, the Administrator shall satisfy its obligations with respect to clauses (ii) and (iii) above by retaining, at the expense of the Trust payable by the Administrator, a firm of independent public accountants acceptable to the Owner Trustee, which shall perform the obligations of the Administrator thereunder.

 

(v)                                       The Administrator shall perform the duties of the Administrator specified in Section 10.02 of the Trust Agreement required to be performed in connection with the resignation or removal of the Owner Trustee, and any other duties expressly required to be performed by the Administrator under the Trust Agreement.

 

(vi)                                  In carrying out the foregoing duties or any of its other obligations under this Agreement, the Administrator may enter into transactions or otherwise deal with any of its Affiliates; provided, however, that the terms of any such transactions or dealings shall be in accordance with any directions received from the Issuer and shall be, in the Administrator’s opinion, no less favorable to the Issuer than would be available from unaffiliated parties.

 

(c)                                        Non-Ministerial Matters.

 

(i)                                           With respect to matters that in the reasonable judgment of the Administrator are non-ministerial, the Administrator shall not take any action unless, within a reasonable time before the taking of such action, the Administrator shall have notified the Owner Trustee of the proposed action and the Owner Trustee shall not have withheld consent or provided an alternative direction.  For the purpose of the preceding sentence, “non-ministerial matters” shall include, without limitation:

 

(A)                                    the amendment of or any supplement to the Indenture;

 

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(B)                                     the initiation of any claim or lawsuit by the Issuer and the compromise of any action, claim or lawsuit brought by or against the Issuer (other than in connection with the collection of the Contracts);

 

(C)                                     the amendment, change or modification of any other Transaction Documents;

 

(D)                                    the appointment of successor Note Registrars, successor Paying Agents and successor Indenture Trustees pursuant to the Indenture or the appointment of successor Administrators or a successor Servicer, or the consent to the assignment by the Note Registrar, Paying Agent or Indenture Trustee of its obligations under the Indenture; and

 

(E)                                      the removal of the Indenture Trustee.

 

(ii)                                      Notwithstanding anything to the contrary in this Agreement, the Administrator shall not be obligated to, and shall not, (A) make any payments to the Noteholders under the Transaction Documents, (B) sell the Collateral pursuant to clause (iv) of Section 5.04 of the Indenture, (C) take any other action that the Issuer directs the Administrator not to take on its behalf or (D) take any other action which may be construed as having the effect of varying the investment of the Holders.

 

Section 2.                                                         Records.  The Administrator shall maintain appropriate books of account and records relating to services performed hereunder, which books of account and records shall be accessible for inspection by the Issuer and the Owner Trustee at any time during normal business hours.

 

Section 3.                                                  Compensation.  As compensation for the performance of the Administrator’s obligations under this Agreement and as reimbursement for its expenses related thereto, the Administrator shall be entitled to a monthly fee which shall be solely an obligation of the Trust Depositor and shall be in an amount as shall be agreeable to the Trust Depositor and the Administrator.

 

Section 4.                                                  Additional Information to be Furnished to the Issuer.  The Administrator shall furnish to the Issuer from time to time such additional information regarding the Collateral as the Issuer shall reasonably request.

 

Section 5.                                                  Independence of the Administrator.  For all purposes of this Agreement, the Administrator shall be an independent contractor and shall not be subject to the supervision of the Issuer or the Owner Trustee with respect to the manner in which it accomplishes the performance of its obligations hereunder.  Unless expressly authorized by the Issuer, the Administrator shall have no authority to act for or represent the Issuer or the Owner Trustee in any way and shall not otherwise be deemed an agent of the Issuer or the Owner Trustee.

 

Section 6.                                                  No Joint Venture.  Nothing contained in this Agreement (i) shall constitute the Administrator and either of the Issuer or the Owner Trustee as members of any partnership, joint venture, association, syndicate, unincorporated business or other separate entity, (ii) shall be construed to impose any liability as such on any of them, or (iii) shall be deemed to confer on any of them any express, implied or apparent authority to incur any obligation or liability on behalf of the others.

 

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Section 7.                                                  Other Activities of Administrator.  Nothing herein shall prevent the Administrator or any Affiliate from engaging in other business or, in its sole discretion, from acting in a similar capacity as an administrator for any other Person or entity even though such person or entity may engage in business activities similar to those of the Issuer, the Owner Trustee or the Indenture Trustee.

 

Section 8.                                                  Term of Agreement; Resignation and Removal of Administrator.  This Agreement shall continue in force until the termination of the Issuer, upon which event this Agreement shall automatically terminate.

 

(a)                                        Subject to Section 8(d) and Section 8(e), the Administrator may resign its duties hereunder by providing the Issuer with at least 60 days’ prior written notice.

 

(b)                                       Subject to Section 8(d) and Section 8(e), the Issuer may remove the Administrator without cause by providing the Administrator with at least 60 days’ prior written notice.

 

(c)                                        Subject to Section 8(d) and Section 8(e), at the sole option of the Issuer, the Administrator may be removed immediately upon written notice of termination from the Issuer to the Administrator if any of the following events shall occur:

 

(i)                                           the Administrator shall default in the performance of any of its duties under this Agreement and, after notice of such default, shall not cure such default within ten days (or, if such default cannot be cured in such time, shall not give within ten days such assurance of cure as shall be reasonably satisfactory to the Issuer);

 

(ii)                                      a court having jurisdiction in the premises shall enter a decree or order for relief, and such decree or order shall not have been vacated within 60 days, in respect of the Administrator in any involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect or appoint a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for the Administrator or any substantial part of its property or order the winding-up or liquidation of its affairs; or

 

(iii)                                 the Administrator shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, shall consent to the entry of an order for relief in an involuntary case under any such law, or shall consent to the appointment of a receiver, liquidator, assignee, trustee, custodian, sequestrator or similar official for the Administrator or any substantial part of its property, shall consent to the taking of possession by any such official of any substantial part of its property, shall make any general assignment for the benefit of creditors or shall fail generally to pay its debts as they become due.

 

The Administrator agrees that if any of the events specified in clauses (ii) or (iii) above shall occur, it shall give written notice thereof to the Issuer and the Indenture Trustee within seven days after the occurrence of such event.

 

(d)                                       No resignation or removal of the Administrator pursuant to this Section shall be effective until (i) a successor Administrator shall have been appointed by the Issuer and (ii) such 

 

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successor Administrator shall have agreed in writing to be bound by the terms of this Agreement in the same manner as the Administrator is bound hereunder.

 

(e)                                        The appointment of any successor Administrator shall be effective only after the satisfaction of the Rating Agency Condition with respect to the proposed appointment.

 

(f)                                          Subject to Section 8(d) and 8(e), the Administrator acknowledges that upon the appointment of a Successor Servicer pursuant to the Sale and Servicing Agreement, the Administrator shall immediately resign and such Successor Servicer shall automatically become the Administrator under this Agreement.

 

Section 9.                                                  Action upon Termination, Resignation or Removal.  Promptly upon the effective date of termination of this Agreement pursuant to Section 8 or the resignation or removal of the Administrator pursuant to Section 8(a), (b), (c) or (f), the Administrator shall be entitled to be paid all fees and reimbursable expenses accruing to it to the date of such termination, resignation or removal.  The Administrator shall forthwith upon such termination pursuant to Section 8 deliver to the Issuer all property and documents of or relating to the Collateral then in the custody of the Administrator.  In the event of the resignation or removal of the Administrator pursuant to Section 8(a), (b), (c) or (f), respectively, the Administrator shall cooperate with the Issuer and take all reasonable steps requested to assist the Issuer in making an orderly transfer of the duties of the Administrator.

 

Section 10.                                         Notices.  All notices, demands, certificates, requests and communications hereunder (“notices”) shall be in writing and shall be effective (a) upon receipt when sent through the U.S. mail, registered or certified mail, return receipt requested, postage prepaid, with such receipt to be effective the date of delivery indicated on the return receipt, or (b) upon receipt when sent through an overnight courier, or (c) on the date personally delivered to an Authorized Officer of the party to which sent, or (d) on the date transmitted by legible telecopier or electronic mail transmission with a confirmation of receipt, in all cases addressed to the recipient at the address for such recipient set forth in the Sale and Servicing Agreement.

 

Each party hereto may, by notice given in accordance herewith to each of the other parties hereto, designate any further or different address to which subsequent notices shall be sent.

 

Section 11.                                         Amendments.  This Agreement may be amended from time to time by a written amendment duly executed and delivered by the parties hereto, with the written consent of the Owner Trustee but without the consent of the Noteholders, for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of the Noteholders; provided that such amendment will not, in the Opinion of Counsel satisfactory to the Indenture Trustee, materially and adversely affect the interest of any Noteholder.  This Agreement may also be amended by the parties hereto with the written consent of the Owner Trustee and the Required Holders for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of Noteholders; provided, however, that no such amendment may (i) increase or reduce in any manner the amount of, or accelerate or delay the timing of, collections of payments on the Contracts or distributions that are required to be made for the benefit of the Noteholders or (ii) reduce the aforesaid percentage of 

 

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the holders of Notes which are required to consent to any such amendment, without the consent of the holders of all outstanding Notes.  Notwithstanding the foregoing, the Administrator may not amend this Agreement without the permission of the Trust Depositor, which permission shall not be unreasonably withheld.

 

Section 12.                                         Successors and Assigns.  This Agreement may not be assigned by the Administrator unless such assignment is previously consented to in writing by the Issuer, the Indenture Trustee and the Owner Trustee and subject to the satisfaction of the Rating Agency Condition in respect thereof.  An assignment with such consent and satisfaction, if accepted by the assignee, shall bind the assignee hereunder in the same manner as the Administrator is bound hereunder.  Notwithstanding the foregoing, this Agreement may be assigned by the Administrator without the consent of the Issuer or the Owner Trustee to a corporation or other organization that is a successor (by merger, consolidation or purchase of assets) to the Administrator; provided that such successor organization executes and delivers to the Issuer, the Owner Trustee and the Indenture Trustee an agreement, in form and substance reasonably satisfactory to the Owner Trustee and the Indenture Trustee, in which such corporation or other organization agrees to be bound hereunder by the terms of said assignment in the same manner as the Administrator is bound hereunder.  Subject to the foregoing, this Agreement shall bind any successors or assigns of the parties hereto.

 

Section 13.                                         Governing Law.  THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

Section 14.                                         Headings.  The section and subsection headings hereof have been inserted for convenience of reference only and shall not be construed to affect the meaning, construction or effect of this Agreement.

 

Section 15.                                         Counterparts; Originals.  This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same agreement. The words “execution”, “signed”, “signature” and words of like import in this Agreement or in any other certificate, agreement or document related to this Agreement shall include, in addition to manually executed signature pages, images of manually executed signatures transmitted by facsimile or other electronic format (including “pdf”, “tif” or “jpg”) and other electronic signatures (including DocuSign and AdobeSign).  The use of electronic signatures and electronic records (including any contract or other record created, generated, sent, communicated, received or stored by electronic means) shall be of the same legal effect, validity and enforceability as a manually executed signature or use of a paper-based record-keeping system to the fullest extent permitted by applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, any State law based on the Uniform Electronic Transactions Act or the UCC.

 

Section 16.                                         Severability.  Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall be ineffective to the extent of such prohibition or unenforceability 

 

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without invalidating the remaining provisions hereof and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

Section 17.                                         Not Applicable to Harley-Davidson Credit in Other Capacities.  Nothing in this Agreement shall affect any obligation Harley-Davidson Credit may have in any other capacity.

 

Section 18.                                         Limitation of Liability of Owner Trustee and Indenture Trustee.

 

(a)                                        Notwithstanding anything contained herein to the contrary, this instrument has been countersigned by Wilmington Trust, National Association, not in its individual capacity but solely in its capacity as Owner Trustee of the Issuer and in no event shall Wilmington Trust, National Association in its individual capacity or any beneficial owner of the Issuer have any liability for the representations, warranties, covenants, agreements or other obligations of the Issuer hereunder, as to all of which recourse shall be had solely to the assets of the Issuer.  For all purposes of this Agreement, in the performance of any duties or obligations of the Issuer hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of Articles Six, Seven and Eight of the Trust Agreement.

 

(b)                                      Notwithstanding anything contained herein to the contrary, this Agreement has been countersigned by Citibank, N.A. not in its individual capacity but solely as Indenture Trustee and in no event shall Citibank, N.A. have any liability for the representations, warranties, covenants, agreements or other obligations of the Issuer hereunder or in any of the certificates, notices or agreements delivered pursuant hereto, as to all of which recourse shall be had solely to the assets of the Issuer.

 

Section 19.                                         Third-party Beneficiary.  The Owner Trustee is a third-party beneficiary to this Agreement and is entitled to the rights and benefits hereunder and may enforce the provisions hereof as if it were a party hereto.

 

Section 20.                                         Survivability.  The obligations of the Administrator described in Section 1(a)(ii) hereof shall survive termination of this Agreement.

 

[signature page follows]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered as of the day and year first above written.

 

	
 
    	
HARLEY-DAVIDSON   MOTORCYCLE TRUST 2021-A
    
	
 
    	
 
    
	
 
    	
By:
    	
Wilmington Trust,   National Association, not in its individual capacity but solely as Owner   Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Printed Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HARLEY-DAVIDSON   CUSTOMER FUNDING CORP., as Trust Depositor
    
	
 
    	
 
    
	
 
    	
By: 
    	
 
    
	
 
    	
 
    	
Printed Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CITIBANK, N.A.,
    
	
 
    	
not in its individual   capacity but solely as Indenture Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Printed Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HARLEY-DAVIDSON CREDIT   CORP., as Administrator
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Printed Name:
    
	
 
    	
 
    	
Title:
    

 

Signature Page to Administration Agreement

 

 

EXHIBIT A

 

LIMITED POWER OF ATTORNEY

 

	
State of Illinois
    	
)
    
	
 
    	
 
    
	
 
    	
)  SS.
    
	
 
    	
 
    
	
County of Cook
    	
)
    

 

KNOW ALL PERSONS BY THESE PRESENTS, that Wilmington Trust, National Association, a national banking association (the “Owner Trustee”), whose principal executive office is located at 1100 North Market Street, Wilmington, Delaware Attention:  Trust Administration, by and through its duly elected and authorized officer,                                                          , on behalf of itself and of Harley-Davidson Motorcycle Trust 2021-A (the “Issuer”), as Issuer, under the Administration Agreement, dated as of February 1, 2021 (the “Administration Agreement”), among the Issuer, Harley-Davidson Customer Funding Corp., Citibank, N.A., as Indenture Trustee, and Harley-Davidson Credit Corp., as Administrator, does hereby nominate, constitute and appoint Harley-Davidson Credit Corp., a Nevada corporation, each of its officers from time to time and each of its employees authorized by it from time to time to act hereunder, jointly and each of them severally, together or acting alone, its true and lawful attorney-in-fact, for the Owner Trustee and the Issuer in their name, place and stead, in the sole discretion of such attorney-in-fact, to perform such calculations and prepare or cause the preparation by other appropriate persons of, and to execute on behalf of the Issuer or the Owner Trustee, all such documents, reports, filings, instruments, certificates and opinions that the Issuer or the Owner Trustee is required to prepare, file or deliver pursuant to the Administration Agreement, and to take any and all other action, as such attorney-in-fact may deem necessary or desirable in accordance with the directions of the Owner Trustee and in connection with its duties as Administrator or successor Administrator under the Administration Agreement.  Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed thereto in the Administration Agreement.

 

The Owner Trustee hereby ratifies and confirms the execution, delivery and performance (whether before or after the date hereof) of the above-mentioned documents, reports, filings, instruments, certificates and opinions, by the attorney-in-fact and all that the attorney-in-fact shall lawfully do or cause to be done by virtue hereof.

 

The Owner Trustee hereby agrees that no person or other entity dealing with the attorney-in-fact shall be bound to inquire into such attorney-in-fact’s power and authority hereunder and any such person or entity shall be fully protected in relying on such power of authority.

 

This Limited Power of Attorney may not be assigned without the prior written consent of the Owner Trustee.  It is effective immediately and will continue until it is revoked.

 

 

This Limited Power of Attorney shall be governed and construed in accordance with the laws of the State of New York without reference to principles of conflicts of law.

 

Executed as of this 1st day of February, 2021.

 

 

	
 
    	
WILMINGTON TRUST, NATIONAL ASSOCIATION, not in its individual capacity   but solely as Owner Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Printed Name:
    
	
 
    	
 
    	
Title:
    

 

 

CERTIFICATE OF ACKNOWLEDGMENT OF

NOTARY PUBLIC

 

	
State of Delaware
    	
)
    
	
 
    	
 
    
	
 
    	
)  SS.
    
	
 
    	
 
    
	
County of New Castle
    	
)
    

 

On                   , 2021 before me,                                                                            

 

[Insert name and title of notary]

 

personally appeared                                                                      

 

o                                             personally known to me, or

 

o                                             proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are

 

subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ties), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which person(s) acted, executed the instrument.

 

	
 
    	
WITNESS my hand and official seal.
    
	
 
    	
 
    
	
 
    	
 
    
	
Signature:  
    	
 
    	
 
    	
 
    
	
 
    	
Notary Public, State of Delaware
    	
 
    	
 
    
	
 
    	
My Commission Expires
    	
 
    	
[SEAL]Exhibit 10.1

 

 

 

RIOT
BLOCKCHAIN, INC.

EXECUTIVE
EMPLOYMENT AGREEMENT

This
Executive Employment Agreement (the “Agreement”) is made and entered into by and between Jason Les (the “Employee”)
and Riot Blockchain, Inc., a Nevada corporation (the “Company”). The Employee and the Company shall sometimes
be referred to herein as the “Parties”, with each of the Employee and the Company a “Party”
to this Agreement.

WHEREAS,
Employee currently serves as a Director of the Company;

 

WHEREAS,
the Company desires to employ Employee as the Company’s Chief Executive Officer (“CEO”), and Employee
desires to be employed by the Company in addition to Employee’s continued service as a Company Director; and

 

WHEREAS,
the Company and the Employee jointly desire to enter into this Agreement to reflect the terms and conditions of the Employee’s
employment with the Company.

NOW,
THEREFORE, in consideration of the mutual covenants, promises, and obligations contained herein, and for other good and valuable
consideration, the receipt and sufficiency of such consideration is hereby acknowledged, the Parties agree as follows:

		1.	Duties and Scope of Employment.

a.    Effective Date. This Agreement and the Employee’s employment with the
Company shall be effective as of February 8, 2021 (the “Effective Date”).

b.   
Position; Job Duties. Employee accepts and shall serve full-time as the Company’s
CEO. In the Employee’s position as CEO, the Employee shall have such authority and perform such duties and responsibilities
as are assigned by the Company’s Board of Directors (the “Board”) and/or as are otherwise normally associated
with a CEO position. The Employee will report to the Company’s Board, or such other person or persons as the Company’s
Board designates.

c.  Performance under this Agreement. During the Employment Term (as that term
is defined herein), the Employee shall perform and fulfill the Employee’s duties and responsibilities under this Agreement
to the best of the Employee’s abilities and in a trustworthy, professional, competent, and efficient manner. The Employee
shall at all times comply with and be subject to all applicable policies, procedures, codes of conduct, requirements, and organizational
regulations established by and/or amended by or on behalf of the Company from time to time. In
Employee’s position as CEO, Employee shall have the full powers, responsibilities, and authorities customary for
the CEO of corporations of the size, type, and nature of the Company, together with such other powers, authorities, and responsibilities
as may reasonably be assigned to Employee by the Company’s Board from time to time. Except as within the scope of Employee’s
authority as CEO, Employee shall have no authority to bind the Company by a promise or representation or to enter into any contract,
either written or oral, affecting the Company or any of its related entities. 

 

    	1  

    	 

    

d.      
Preparation, Ownership, and Storage of Data and Documents. Employee shall prepare,
in connection with services performed under this Agreement, all reports, documents and correspondence necessary and/or appropriate
under the circumstances, all of which shall belong to the Company. Employee shall store all reports, documents, correspondence,
and data on and in Company-designated storage and will not archive or otherwise retain any tangible or intangible copies, summaries,
or descriptions of said reports, documents, correspondence, or data or otherwise store any such materials outside of such Company-designated
storage.

e.     
Fiduciary Duty; Conflict of Interests. Employee acknowledges and agrees that
Employee owes a fiduciary duty of loyalty, fidelity, and allegiance to act at all times in the best interests of the Company and
to not engage in any act which would directly or indirectly injure the Company’s business, interests, or reputation. In
keeping with the Employee’s fiduciary duties and obligations to the Company, Employee shall not become involved in a conflict
of interest with the Company, or upon discovery thereof, allow such a conflict to continue. Moreover, Employee shall not engage
in any activity that might involve a possible conflict of interest without first obtaining written approval from the Board. Employee
may, however, with prior written consent from the Board (which consent shall not unreasonably be withheld), serve on one corporate
board as a board member and serve on one civic or non-profit board as a board member at any given time during Employee’s
employment with the Company; provided, however, that the Employee engages in such outside activities only during the Employee’s
personal time.

2.        
Term of Employment.  The Employee’s employment under this Agreement shall continue until the fifth anniversary
of the Effective Date (the “Initial Term”) unless terminated earlier pursuant to Section 6 of this Agreement.
On the fifth anniversary of the Effective Date, and each annual anniversary thereafter (such date and each annual anniversary
thereof a “Renewal Date”), the Agreement shall be automatically extended for successive one year periods (each
a “Renewed Term”) unless (a) terminated earlier pursuant to Section 6 of this Agreement or (b) either Party
delivers written notice to the other, consistent with Section 1.j. of this Agreement, at least 180 days before the applicable
Renewal Date of the Employee’s or the Company’s intention not to renew this Agreement, in each case the Employee’s
employment hereunder shall be terminated as of the end of the expiring Initial Term or Renewed Term, as the case may be. The Company
may, in its sole and absolute discretion, advance the date of termination upon receipt of such written notice from the Employee.
The period during which the Employee is employed by the Company under this Agreement is hereinafter referred to as the “Employment
Term”. 

3.                 
Exclusive Employment; Place of Services. During Employee’s employment with the Company, Employee shall
devote all of Employee’s working time, attention, knowledge, and skill(s) to the performance and fulfillment of Employee’s
duties, responsibilities, and services for the Company, and Employee shall not at any time during the Employment Term engage in
any other business, employment, or consulting or contractor work, unless Employee has first obtained prior written consent from
the Board. Employee’s services during the Employment Term shall ordinarily be performed in the Orange County, California
area, subject to reasonable business travel requirements on a limited, and temporary basis,
in performance of the Employee’s duties. Notwithstanding anything in this Agreement to the contrary, Employee’s
duties shall include travel relating to the Company’s business reasonably commensurate with Employee’s position with
the Company.

 

    	2  

    	 

    

4.        
Compensation and Benefits.

a.       
Base Salary. During the Employment Term, the Company shall pay Employee (i)
an annualized salary in the total gross amount of Two Hundred Forty Thousand Dollars and Zero Cents ($240,000.00) and (ii) 10
Bitcoin, all of which shall be subject to all offsets, prorations, deductions, withholdings, and claw-backs as set forth in this
Agreement. Employee’s annual salary and Bitcoin compensation, as in effect from time to time, are hereinafter collectively
referred to as “Base Salary”. Employee’s Base Salary shall take effect on the first regularly scheduled
pay period following the Effective Date of this Agreement. The Company’s Board, or the Board’s Compensation Committee
(the “Compensation Committee”), shall annually review and may, in its sole discretion, adjust Employee’s
Base Salary. Effective as of the date of any change to Employee’s Base Salary, the Base Salary as so changed shall be considered
the new Base Salary for all purposes of this Agreement.

b.        
Annual Incentive Bonus. Subject to the terms of this Agreement, for each fiscal
year during the Employment Term, the Board or the Compensation Committee may elect to establish an annual incentive bonus target
for the Employee based upon specific performance goals, criteria, or targets for such fiscal year (the “Incentive Bonus”).
If the Board or the Compensation Committee establishes an Incentive Bonus, its terms shall be communicated in writing to Employee,
and the Board or the Compensation Committee shall evaluate whether the performance goals, criteria, or targets with respect to
the Incentive Bonus for the applicable fiscal year have been met. Based on this evaluation, the Board or the Compensation Committee
shall determine the final amount of the Incentive Bonus, if any, to be awarded to Employee. Incentive Bonus awards may, in the
discretion of the Board or the Compensation Committee, be granted as an Equity Award according to Section 4.c.iii of this Agreement,
or as a cash award. 

Nothing
in this Section 4.b above., nor anything in this Agreement, entitles or shall be interpreted to entitle Employee to any guaranteed
minimum Incentive Bonus at any time during the Employment Term and Employee’s receipt of an Incentive Bonus is expressly
contingent upon Employee being actively employed by the Company through the date that such Incentive Bonus is actually paid to
Employee. All determinations with respect to any Incentive Bonus shall be made by the Board or Compensation Committee, as applicable,
in its sole and reasonable discretion, and shall be final, conclusive, and binding on all Parties.

c.    
Equity Compensation. Subject to the terms of this Agreement, the Employee shall
be eligible to receive the following equity awards (each an “Equity Award”): 

i.          
Initial Equity Award. As of the Effective Date, the Board or the Compensation Committee shall grant to Employee
an initial Equity Award of 25,000 restricted stock units (“RSUs”), which, subject to Employee’s continued
employment with the Company, shall be eligible to vest in four (4) equal quarterly installments as follows: 6,250 RSUs vesting
on April 1, 2021; 6,250 RSUs vesting on July 1, 2021; 6,250 RSUs vesting on October 1, 2021; and the remaining 6,250
RSUs vesting on January 1, 2022 (the “Initial Equity Award”). 

ii.         
Additional Equity Awards. During the Employment Term, Employee may be eligible to receive additional grants of Equity
Awards, as determined by the Board or the Compensation Committee, in its sole and absolute discretion. 

 

    	3  

    	 

    

iii.               
Terms and Conditions of Equity Compensation. Each Equity Award, including any Incentive Bonus under Section 4.b.
above awarded as an Equity Award, shall be granted under and subject to the terms of the Riot Blockchain, Inc. 2019 Equity Incentive
Plan, as amended (or any successor equity plan) (the “Equity Plan”), as well as the terms of an equity award
agreement, substantially in form attached as Exhibit “A” hereto, specifying, among other things, the number of RSUs
(or other Company Security) granted to Employee and the applicable vesting schedule (each, an “Equity Award Agreement”).
The term Company “Security” shall have the meaning ascribed to it under the Equity Plan. Notwithstanding the foregoing
or anything to the contrary in this Agreement, except as to the Initial Equity Award, Employee shall not be guaranteed any minimum
Equity Award at any time during the Employment Term.

d.        
Benefits. During the Employment Term, Employee shall be entitled to participate
in each of the Company’s employee benefit plans and programs, as in effect from time to time, including without limitation
those group medical, dental, health and/or disability insurance plans, 401(k) plans, and Medicare/Social Security reimbursement
plans, all in accordance with and subject to all terms and conditions of those benefit plans and/or programs and any amendments
thereto, including any and all provisions concerning eligibility for participation. 

e.       
Paid Time Off. During the Employment Term, Employee shall be eligible to receive
paid time off (“PTO”) up to a maximum amount of 25 days per fiscal year to be accrued, carried over, and used
subject to and in accordance with the terms of the Company’s paid-time-off policy in effect from time to time. During the
Employment Term, accrued but unused PTO will carry over from one fiscal year to the next; however, once Employee has reached Employee’s
maximum PTO accrual for that fiscal year, Employee will not be eligible to accrue any additional PTO until Employee’s PTO
balance falls below the maximum accrual amount of 30 days per fiscal year. 

f.       
Expense Reimbursement. During the Employment Term, and subject to Section 7.1.p.
of this Agreement, the Company will reimburse Employee for reasonable, necessary, and documented out-of-pocket expenses incurred
by Employee on behalf of the Company in connection with the performance of Employee’s duties as CEO. All expenses shall
be in accordance with the Company’s expense reimbursement policies and procedures in effect from time to time, subject to
Employee submitting to the Company a written reimbursement request and proof of such expense(s).

g.      
Company Compensation Practices and Regulatory Compliance. Any payment or benefit
conferred under this Section 4 shall, subject to all applicable regulatory, tax, and legal requirements described under Section
1.p. of this Agreement, be paid in accordance with the Company’s customary compensation practices and, as applicable, prorated
for the actual number of days Employee was actively employed with the Company during the applicable fiscal year.

    	4  

    	 

    

 

5.                 
Restrictive Covenants. Employee has read and shall sign the Company’s Confidentiality and Non-Competition
Agreement (the “CNCA”), which is attached hereto as Exhibit “B” and incorporated herein by this
reference. Employee further understands and agrees that the Company may, in its sole discretion, update and amend Employee’s
CNCA from time to time, and Employee will be required to sign any such amended agreement as a material term of this Agreement
and a condition of continued employment. Notwithstanding anything contained in this Agreement to the contrary, and for the avoidance
of any doubt, nothing herein shall modify or limit the applicability of the confidentiality and/or restrictive covenants contained
in the CNCA and/or any other agreement between the Parties, which shall be enforced according to their terms and read together
to provide the greatest level of protection(s) to the Company and its confidential information (as that term is defined in the
CNCA).

6.                 
Termination of Employment.

a.       By the Company for Cause. Employee’s employment under this Agreement
may be terminated by the Company at any time upon the occurrence of one or more of the following events (each of which shall be
a termination event for “Cause”):

i.        
Employee willfully, recklessly, or with gross negligence fails to comply with any material term or aspect of the policies,
standards, and regulations that the Company, in its sole discretion, establishes and/or implements in writing before and during
the Employment Term;

ii.       
Employee commits any act of gross negligence, illegal conduct, embezzlement, theft, misappropriation, fraud, dishonesty,
or other acts of misfeasance, malfeasance, and/or misconduct in the rendering of services to or on behalf of the Company;

iii.      
Employee willfully, recklessly, or with gross negligence fails to comply with any reasonable request of the person(s) to
whom Employee reports;

iv.   
  Employee fails to adequately, substantially, and/or continually perform to Company’s reasonable
satisfaction the usual and customary duties of Employee’s employment, those duties reasonably requested of Employee and
typically associated with Employee’s position, and/or those duties or expectations assigned by Company;

v.       
Employee breaches any material term or provision of this Agreement or any material term or provision of any other agreement
between the Parties; and/or

vi.      
Employee is convicted of, or pleads guilty or nolo contendere to, a crime constituting, a felony or a misdemeanor
involving deceit, dishonesty, or moral turpitude, or otherwise commits any act which impairs Employee’s fitness to perform
the Employee’s duties under this Agreement and/or damages the reputation of the Company, as determined in the sole and reasonable
discretion of the Board.

Notwithstanding
the foregoing, the Company may not terminate Employee’s employment under this Agreement for Cause under Sections 6.a.i.-vi.
above without first providing Employee written notice of the event or condition(s) constituting Cause, which notice must be given
no later than 30 days after the date on which the event or condition(s) constituting Cause is first reasonably discovered by the
Board. Upon the giving of such notice, and only if the event or condition is reasonably capable of being remedied by Employee,
Employee shall have a period of 30 days during which Employee may try to remedy the event or condition(s) and, if so remedied,
the Company may not terminate Employee’s employment under this Agreement for Cause for the event or condition that was remedied.

 

    	5  

    	 

    

b.                 
By the Company without Cause. The Company may terminate Employee’s employment
under this Agreement without Cause upon providing written notice of termination to Employee 30 days in advance. For purposes of
this Agreement “without Cause” shall mean any termination by the Company that is not (i) a termination for
Cause as described and in accordance with Section 6.a. above, or (ii) a termination because of death or Disability as described
Section 6.e. below. Notwithstanding anything in this Agreement to the contrary, the Company may, in its sole and absolute discretion,
advance the Employee’s termination date to an alternate termination date of the Company’s own choosing provided, however,
that Employee shall be paid Employee’s Base Salary from the date that the Company provides written notice of termination
through the end of the 30-day notice period provided for in this Section 6.b.

c.                  
By Employee for Good Reason. Employee may terminate his employment under this
Agreement following written notice to the Company upon the occurrence of any of the following events or conditions (each of which
shall be a termination event for “Good Reason”):

i.                   
A material diminution in Employee’s Base Salary or employment benefits other than a general reduction in Base Salary
and/or benefits that affects all similarly situated employees;

ii.                 
A material breach of this Agreement by the Company;

iii.               
A material diminution in Employee’s title, authorities, responsibilities, or duties without Employee’s consent
(other than a temporary change while Employee is physically or mentally in capacitated or as required by applicable law;

iv.               
A relocation of Employee’s primary work location that would require the reasonable person to move Employee’s
residence from its then current location if Employee does not consent to such relocation;

v.                 
The Company permanently ceases its business operations; and/or

vi.               
A Change in Control (as defined in Section 7.2 of the Equity Plan) of the Company and the Employee experiences any of the
events set forth in the foregoing Sections 6.c.i.-v. within either (A) the first 6 months following such Change in Control or
(B) the Initial Term or any then-effective Renewed Term of this Agreement, whichever is later.

Notwithstanding
the foregoing, Employee may not terminate Employee’s employment under this Agreement for Good Reason without first providing
the Company advanced written notice of the event(s) and/or condition(s) constituting Good Reason, which notice must be given no
later than 30 days after the date on which the event(s) and/or condition(s) constituting Good Reason first occurs. Upon the Company’s
receipt of such notice, the Company shall then have 30 days during which it may remedy the event(s) and/or condition(s) (the “Company
Notice Period”) and, if so remedied, Employee may not terminate his employment under this Agreement for Good Reason.
If Employee fails to comply with the immediately preceding two sentences of this Section 6.c., such termination shall not be considered
a termination for Good Reason. If the Company fails to cure the event(s) and/or conditions during the Company Notice Period, then
the termination shall occur 30 days after the expiration of the Company Notice Period unless the Company, in its sole discretion,
chooses to advance Employee’s termination date to an alternate termination date of the Company’s own choosing.

    	6  

    	 

    

 

d.                 
By Employee without Good Reason. Employee may terminate Employee’s employment
under this Agreement without Good Reason by providing written notice of termination to the Company no less than 180 days before
the termination date. For purposes of this Agreement “without Good Reason” shall mean any termination by Employee
that is not a termination due to death or Disability under Section 6.e. below or for Good Reason as set forth and in accordance
with Section 6.c. above. Notwithstanding anything in this Agreement to the contrary, the Company may, in its sole and absolute
discretion, waive all or any part of the 180-day notice period for no consideration and advance the Employee’s termination
date to an alternate termination date of the Company’s own choosing.

e.                  
Termination due to Death or Disability. Employee’s employment with the
Company shall terminate immediately in the event of death or Disability of Employee. The term “Disability”
means Employee’s inability to substantially perform his duties as CEO by reason of any medically determinable physical or
mental impairment that, as determined by a physician chosen by the Company and reasonably acceptable to Employee, can be expected
to: (i) result in death; (ii) last for a continuous period of at least 30 days; or (iii) endanger the Employee and/or others if
Employee were to continue to perform Employee’s duties with the Company.

f.                   
Payments Upon Separation. Notwithstanding anything to the contrary in this
Agreement, upon termination of Employee’s employment with the Company, Employee shall be entitled to receive from the Company
only the compensation and benefits set forth in this Section 6.e, and Employee shall not be entitled to any further compensation
or benefits from the Company (including its subsidiaries and affiliates). For the avoidance of any doubt, the payments identified
in Sections 6.f.ii.-v. below (the “Severance Payments”) shall not become due and payable unless and until a
severance agreement between the Company and Employee (or Employee’s estate or beneficiaries, as the case may be) containing
a broad waiver and release favoring the Company (a “Severance Agreement”) has become effective, binding, and
irrevocable on the parties thereto. Except with respect to Severance Payments, which shall be paid to Employee (or Employee’s
estate or beneficiaries, as the case may be) pursuant to the applicable Severance Agreement, all amounts due under the following
Section 6.f.i.-v. upon termination of Employee’s employment with the Company shall be paid to Employee (or Employee’s
estate or beneficiaries, as the case may be) on the first regular payday following the Employee’s termination (or sooner
if required by law). All amounts which may become payable to Employee under this Section 6.f., including any Severance Payments,
shall be subject to all applicable regulatory, tax, and legal requirements described under Section 1.p. of this Agreement. 

i.                   
Termination by Company for Cause; Termination by Employee without Good Reason (without Notice). If the Company terminates
Employee’s employment for Cause, or if Employee terminates Employee’s employment hereunder without Good Reason and
Employee fails to provide advance notice required by Section 6.d. of this Agreement, then the Employee shall be entitled
to receive only the following cash compensation: (A) Base Salary through the date of termination; and (B) any outstanding expense
reimbursement payments then due to Employee as of the date of termination.

    	7  

    	 

    

 

ii.                 
Termination by Employee without Good Reason (with Notice); Nonrenewal of Employment Term. If Employee terminates
Employee’s employment hereunder without Good Reason and provides the Company with advance written notice required
by Section 6.d. of this Agreement, or if Employee’s employment terminated by expiration because the Employment Term is not
renewed (by either Party) consistent with the terms of this Agreement, then Employee shall be entitled to receive only the following
cash compensation: (A) Base Salary through the date of termination; (B) payment of Employee’s accrued but unused PTO as
of the date of termination; (C) any outstanding expense reimbursement payments then due to Employee as of the date of termination
or expiration; and, (D) in exchange for Employee executing (and, if applicable, not revoking) a Severance Agreement, the following
Severance Payments: (1) the pro-rata portion of any Incentive Bonus to which Employee would have been entitled under Section 4.b.
of this Agreement, if any, had Employee remained employed with the Company through December 31 of the fiscal year in which the
termination occurred; and (2) one month of Base Salary.

iii.               
Termination by Company without Cause; Termination by Employee for Good Reason. If the Company terminates Employee’s
employment hereunder without Cause, or if Employee terminates Employee’s employment hereunder for Good Reason (except for
a Change in Control), then Employee shall be entitled to receive only the following compensation: (A) Base Salary through the
date of termination or expiration; (B) payment of Employee’s accrued but unused PTO as of the date of termination; (C) any
outstanding expense reimbursement payments then due to Employee as of the date of termination or expiration; and, (D) in exchange
for Employee executing (and, if applicable, not revoking) a Severance Agreement, the following Severance Payments: (1) the pro-rata
portion of any Incentive Bonus to which Employee would have been entitled under Section 4.b. of this Agreement, if any, had Employee
remained employed with the Company through December 31 of the fiscal year in which the termination occurred; (2) 12 months of
Base Salary; and (3) the equity compensation to which Employee would have been entitled under Section 4.c. had he remained employed
with the Company through the end of the Term, with the vesting period for such equity compensation automatically accelerated so
that all such equity compensation shall be vested as of the date of termination.

iv.               
Termination because of Change in Control. If Employee’s employment is terminated in connection with a Change
in Control within 6 months of a Change in Control (as defined in Section 7.2 of the Equity Plan), or if Employee terminates Employee’s
employment under this Agreement for a Change in Control consistent with Section 6.a.vi. of this Agreement, then Employee shall
be entitled to only the following cash compensation: (A) Base Salary through the date of termination; (B) payment of Employee’s
accrued but unused PTO as of the date of termination; (C) any outstanding expense reimbursement payments then due to Employee
as of the date of termination; and, (D) in exchange for the Employee first executing (and, if applicable, not revoking) a Severance
Agreement, the following Severance Payments: (1) Base Salary through the end of the Term; (2) the Incentive Bonus to which Employee
would have been entitled under Section 4.b. of this Agreement, if any, had Employee remained employed with the Company through
December 31 of the fiscal year in which the termination occurred; and (3) 12 months of Base Salary. 

v.                 
Termination because of Death; Termination because of Disability. If Employee’s employment hereunder is terminated
because of Employee’s death, or if Employee’s employment hereunder is terminated because of Employee’s Disability,
then Employee (or Employee’s estate or beneficiaries, as the case may be) shall receive only the following cash compensation:
(A) Base Salary through the date of termination; (B) payment of Employee’s accrued but unused PTO as of the date of termination;
(C) any outstanding expense reimbursement payments then due to Employee as of the date of termination; and, (D) in exchange for
Employee (or employee’s estate or beneficiaries, as the case may be, executing (and, if applicable, not revoking) a Severance
Agreement, the following Severance Payments: (1) the pro-rata portion of any Incentive bonus to which Employee would have been
entitled under Section 4.b. of this Agreement, if any, had Employee remained employed with the Company through December 31 of
the fiscal year in which the termination occurred; and (2) three months of Base Salary.

    	8  

    	 

    

 

vi.               
Treatment of Equity. Except with respect to applicable regulatory, tax, and legal requirements described under Section
1.p. of this Agreement, regardless of the reason for separation, any Equity Awards granted to Employee shall remain governed by
the Equity Plan and any applicable Equity Award Agreement governing such Equity Awards, including with respect to the treatment
of any Change in Control under Section 7.3 of the Equity Plan, and nothing in the foregoing Sections 6.f.i. through 6.f.v. entitles
or purports to entitle Employee to any additional rights with respect to any such Equity Awards beyond the specific provisions
of the Equity Plan or applicable Equity Award Agreement.

g.                 
Effect of Termination. Notwithstanding anything in this Agreement to the
contrary, upon termination of Employee’s employment hereunder for any reason, Employee agrees: (i) to immediately deliver
to the Company all Property (as that term is defined in the CNCA) and records (including all copies thereof) of the Company; (ii)
that the Company shall have the right, without limitation, to withhold and retain any amounts that might otherwise be owed to
the Employee to offset any amounts or debts owed by Employee to the Company; and (iii) that the Company shall, subject to applicable
laws, further have the right to withhold the payment of any amounts that might otherwise be owed to Employee until such time as
the Company determines, to its reasonable satisfaction, that any and all proprietary and confidential information, regardless
of the medium on which it is embodied (e.g., laptop computer), has been returned to the Company and that Employee has not retained
copies thereof.

7.                 
Resignation/Removal from All Other Positions. Upon termination of Employee’s employment with the Company
for any reason, Employee shall be deemed to have resigned and/or been removed, effective as of the date of such termination, from
all positions that the Executive holds (or previously held) with the Company or any of the Company’s affiliated and/or related
entities except as to Employee’s role as Director and member of the Company’s Board, which positions shall not be
affected by Employee’s Separation from the Company

8.                 
Miscellaneous.

a.                  
Section Headers; Gender and Number. The section headings in this Agreement
are for the Parties’ convenience only and are not intended to govern, limit, or affect the meanings of the sections. Singular
and plural nouns and pronouns shall mean the singular or plural and the masculine, feminine, or neuter genders as permitted by
the context in which the words are used.

b.                 
Representations by Employee. The Employee represents and warrants to the Company
that:

i.                   
The Employee’s acceptance of employment under this Agreement with the Company and the performance of the Employee’s
duties hereunder will not conflict with or result in a violation of, a breach of, or a default under any contract, agreement,
or understanding to which the Employee is a party or is otherwise bound;

    	9  

    	 

    

 

ii.                 
The Employee’s acceptance of employment under this Agreement with the Company and the performance of the Employee’s
duties hereunder will not violate any non-solicitation, non-competition, non-disclosure, or other similar covenant or agreement
between the Employee and a prior employer of the Employee;

iii.               
The Employee’s representations to the Company regarding the Employee’s prior employment have been truthful
and accurate; and

iv.               
Employee shall immediately notify the Company of any issues that arise that could conflict with the representations, warranties,
and obligations set forth herein, including without limitation, any demands, claims, notices, or requests made by third parties
that could adversely impact Employee’s ability to perform services as CEO of the Company.

c.                  
Cooperation.The Parties agree that certain matters in which Employee will
be involved during the Employment Term may necessitate Employee’s cooperation in the future. Accordingly, following the
termination of Employee’s employment for any reason, to the extent requested by the Company, Employee shall provide to the
Company reasonable levels of assistance in answering questions about the Company’s business, transition of responsibility,
legal matters, and/or litigation. The Company shall make reasonable efforts to minimize the disruption of Employee’s other
activities.

d.                 
Entire Agreement; Modification. Unless specifically provided herein, this Agreement,
along with all exhibits and/or attachments hereto (including without limitation the sample Equity Award Agreement attached hereto
as Exhibit “A” and the CNCA attached hereto as Exhibit “B”) constitutes the entire understanding between
Employee and the Company with respect to the subject matter hereof and supersedes all prior understandings, agreements, representations,
and warranties, both written and oral, with respect to the subject matter hereof. The Parties are not relying upon any representations
or promises not set forth in this Agreement. Except as provided here, this Agreement (including the CNCA) may not be amended or
modified except in a writing signed by both Parties.

e.                  
Waiver. Failure to insist upon strict compliance with any of the terms, covenants,
or conditions set forth in this Agreement (including the CNCA) shall not be deemed a waiver of such term, covenant, or condition,
nor shall any waiver or relinquishment of any right or power hereunder at any one or more times be deemed a waiver or relinquishment
of such right or power at any other times. No waiver by the Company of a breach by Employee of any provision of this Agreement
(including the CNCA) shall be binding upon the Company unless the same is in writing, signed by a duly authorized representative
of the Company, and any such waiver shall not operate or be construed as a waiver of any subsequent breach.

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f.                   
Severability. If it is determined by a court of competent jurisdiction that
any of the provisions of this Agreement is invalid or unenforceable, such determination shall not affect the validity of the remaining
provisions in this Agreement, each of which shall survive and be given full force and effect. A court of competent jurisdiction
may modify and bring about a modification of any invalid or unenforceable provision to make it enforceable under applicable law.

g.                 
Assignment. The Company may assign this Agreement (including the CNCA) and,
if assigned, the assignee has the right to seek enforcement of the Agreement (including the CNCA). Since this Agreement and the
Employee’s rights and obligations hereunder are personal to Employee, Employee cannot assign this Agreement (including the
CNCA) to any other person or entity.

h.                 
Indemnification of Company. Employee agrees to indemnify, defend, and hold
the Company, its Affiliates, and their officers, directors and employees harmless from and against any claims (including without
limitation losses, damages, attorneys’ fees and costs) by third parties alleging that Employee’s employment with the
Company hereunder constitutes unlawful activity, breaches an obligation of Employee, or otherwise subjects the Company and its
Affiliates to potential liability as a result of Employee’s employment with the Company.

i.                   
Indemnification of Employee. The Company agrees to
indemnify, defend, and hold the Employee harmless from and against claims as provided for under the Company’s Articles of
Incorporation and the Company’s Bylaws in effect from time to time.

j.                   
Notices. All notices and other communications required to be given under this
Agreement (including the CNCA) shall be in writing and shall be delivered to the Party in person, via e-mail or as an attachment
to an e-mail transmission to the Party’s e-mail address, or by overnight carrier service by a recognized business courier
(such as FedEx or UPS). A notice and/or other communication to be given hereunder shall be considered effective: (a) on the date
of delivery if personally delivered against a written receipt; (b) on the date of delivery if sent by e-mail transmission or as
an attachment to an e-mail transmission, with a delivery receipt; or (c) on the first business day following the date of dispatch
if delivered to a recognized business courier service (such as DHL Courier, FedEx, or UPS) for overnight delivery.

k.                 
Survival. Notwithstanding anything in this Agreement to the contrary, and for
the avoidance of any doubt, the termination of Employee’s employment under this Agreement for any reason shall not affect
the CNCA or any of the covenants, warranties, and agreements in Sections 4.g., 5, 6.f.vi., 6.g., 7 and 8 (including all applicable
subparts) of this Agreement, each of which shall survive such termination of the Employment Term, the Parties’ employment
relationship, and this Agreement.

l.                   
Governing Law; Jurisdiction and Venue; Attorney’s Fees and Costs. The
validity, construction, and performance of this Agreement (including the CNCA) shall be governed by the laws of the State of Colorado
without giving effect to conflict of law principles. Except as otherwise may be required by the Company to obtain equitable injunctive
relief under this Agreement, the CNCA, and/or any other agreement between the Parties, jurisdiction for all actions or proceedings
arising under this Agreement (including the CNCA) shall be exclusive to a state or federal court of competent jurisdiction located
in or with jurisdiction for Castle Rock, Douglas County, Colorado. The Parties hereby irrevocably subject and consent to the jurisdiction
of such courts and waive the defense of inconvenient forum related to any action or proceeding in such venue. Should an action
be commenced for a breach of and/or to enforce the terms of this Agreement (including the CNCA), the prevailing party in such
an action shall be entitled to recover from the non-prevailing party, in addition to all other legal and/or equitable remedies,
all costs of litigation, including reasonable attorneys’ fees.

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m.               
Pre-Suit Mediation. Except with respect to any injunctive relief sought by
the Company under this Agreement, the CNCA, and/or any other agreement between the Parties, each of the Parties knowingly, voluntarily,
and intentionally agrees to and shall participate in a mediation conference before filing any complaint, charge, or accusatory
pleading or document, or otherwise commencing any legal or administrative action or proceeding against the other Party with a
federal, state, or local agency and/or in a court of competent jurisdiction. The Parties agree that the mediation conference shall
be convened in Castle Rock, Douglas County, Colorado, and to cooperate in the selection of a mutually agreeable mediator. The
Parties shall split equally the cost of the mediator. The Parties also agree to bear their own respective attorney’s fees
and costs for mediation under this Section 81.m. For the avoidance of any doubt, except as provided herein, the mediation requirement
of this Section 81.m. is a condition precedent to any action, proceeding, and/or litigation between the Parties.

n.                 
WAIVER OF JURY TRIAL. To the extent
permitted by law, the parties KNOwingly, voluntarily, and intentionally agree to, and do hereby, waive the right to trial by jury
in any litigation, cause of action, claim, proceeding, or counterclaim brought by either of the parties against the other: [I]
based on any matter whatsoever arising out of or in any way connected with Employee’s employment with the Company; [II]
Based on this Agreement (INCLUDING THE CNCA) or arising out of, under, or relating to this agreement (INCULDING THE CNCA); and/or
[III] based on any alleged action, inaction, or omission of either party to this Agreement.

o.                 
Construction. The essential terms and conditions contained in this Agreement
have been mutually negotiated between the Parties. The Parties agree that the language of all parts of this Agreement shall in
all cases be construed as a whole, according to its fair meaning, and not strictly for or against any of the Parties. No ambiguity
or uncertainty in this Agreement shall be construed or interpreted in favor of or against any Party.

p.                 
Compliance with Applicable Regulatory, Tax, and Legal Requirements. Any payments
or benefits which may be conferred under this Agreement shall be subject to and administered in compliance with all regulatory,
tax, and legal requirements applicable to Employee or the Company, including, without limitation, the following:

i.                   
Tax Withholding. The Company may withhold from any compensation or benefits payable to Employee all applicable federal,
state, local or other taxes and make any other deductions and withholdings as the Company, in its sole and absolute discretion,
determines are required or permitted by law.

ii.                 
Code Section 409A. This Agreement and all payments, distributions or other benefits hereunder shall comply and be
administered in accordance with the requirements of, or an exemption or exclusion to, Section 409A of Internal Revenue Code of
1986, as amended (the “Code”), and the Treasury Regulations promulgated thereunder (“Section 409A”),
as well as any applicable equivalent State law. To the extent any provision or term of this Agreement is ambiguous as to its compliance
in this respect, such provision or term and all payments hereunder shall be interpreted to comply with the requirements of, or
an exemption or exclusion to, Section 409A, as well as any applicable equivalent State law. Any provision that would cause this
Agreement or a payment, distribution, or other benefit hereunder to fail to comply with the requirements of, or an exemption or
exclusion to, Section 409A, as well as any applicable equivalent State law, shall have no force or effect and the Parties agree
that, to the extent an amendment would be effective, this Agreement shall be amended to comply with the requirements of, or an
exemption or exclusion to, Section 409A, as well as any applicable equivalent State law. Such amendment shall be retroactive to
the extent permitted by law. For purposes of this Agreement, Employee shall not be deemed to have terminated employment unless
and until a “Separation from Service” within the meaning of Treasury Regulations Section 1.409A-1(h) has occurred.
Each payment under Section 6.e. of this Agreement shall be treated as a separate payment for purposes of Section 409A.

    	12  

    	 

    

 

iii.               
Code Section 280G. If any of the payments or benefits received or to be received by the Employee constitute “Parachute
Payments” within the meaning of Code Section 280G (each, a “Section 280G Payment”) and would, but for
this Section 8.p.iii., be subject to the excise tax imposed under Code Section 4999 (the “Golden Parachute Tax”),
then, prior to making such Section 280G Payment, a calculation shall be made comparing (i) the Net Benefit (as defined below)
to the Employee of the Section 280G Payment to (ii) the Net Benefit to the Employee if the Section 280G Payment is limited to
the extent necessary to avoid being subject to the Golden Parachute Tax. Only if the amount calculated under (i) above is less
than the amount under (ii) above will the Section 280G Payment be reduced, and then, only to the minimum extent necessary to ensure
that no portion of the Section 280G Payment is subject to the Golden Parachute Tax. For purposes of this Section 8.p.iii. only,
“Net Benefit” shall mean the present value of the payment, net of all federal, state, local, foreign income, employment,
and excise taxes, including the Golden Parachute Tax. Any reduction made pursuant to this Section 8.p.iii. shall be made in a
manner consistent with the requirements of Code Section 409A. All calculations and determinations under this Section 8.p.iii.
shall be made by an independent accounting firm or independent tax counsel appointed by the Company (the “Tax Counsel”),
whose determinations shall be conclusive and binding on the Company and the Employee for all purposes. The Company and the Employee
shall furnish the Tax Counsel with such information and documents as requested by the Tax Counsel to make its determinations under
this Section 8.p.iii., and the Company shall bear all costs incurred by the Tax Counsel under this Section 8.p.iii.

iv.               
Regulatory Claw-back. Notwithstanding any other provisions in this Agreement to the contrary, any compensation (whether
cash-, equity-, or incentive-based, or otherwise) paid to the Employee under this Agreement or any other agreement or arrangement
between the Company and the Employee which is subject to recovery under any law, government regulation, or stock exchange listing
requirement shall be subject to such deductions and claw-back as may be required to be made pursuant to such law, government regulation,
or stock exchange listing requirement (or any policy adopted by the Company pursuant to any such law, government regulation or
stock exchange listing requirement), without regard for any termination, severance, or other agreement with respect to the Employee’s
separation from service with the Company.

q.                     
Full Understanding; Acknowledgment. Employee acknowledges and agrees that Employee
has thoroughly read the terms of this Agreement before signing. Employee further acknowledges and agrees that, by signing this
Agreement, Employee knowingly and voluntarily consents to the terms contained herein.

    	13  

    	 

    

 

r.                      
Counterparts. This Agreement (including the CNCA) may be executed in one or
more counterparts, each of which when executed shall be deemed to be an original, and such counterparts together shall constitute
one and the same Agreement. Signing of this Agreement (including the CNCA) and transmission of the signed Agreement (including
the CNCA) by electronic document transfer will be acceptable and binding upon the parties as of the Effective Date.

IN
WITNESS WHEREOF, the undersigned, intending to be legally bound, have executed this Executive Employment Agreement as of the
Effective Date, which Agreement shall be effective as of the Effective Date.

 

	EMPLOYEE

         

         

        /s/ Jason Les

        Jason
        Les

         
	RIOT
        BLOCKCHAIN, INC.

         

         

        By: /s/ Benjamin
        Yi

        Name: Benjamin Yi

        Title: Chairperson of the
        Board of Directors

 

 

 

	Attachments:     		Sample
                                         Equity Award Agreement (Exhibit “A”)
 Confidentiality and Non-Competition
                                         Agreement (Exhibit “B”)

 

 

[Signature
Page to Riot Blockchain, Inc. Executive Employment Agreement]

 

    	14

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