Document:

Exhibit 10.1

 

AGREEMENT

RA-AI04032019

 

This AGREEMENT, effective the 4th day of
February 2020 (the “Effective Date”), is entered into by and between:

 

BRICKELL FINANCIAL SERVICES-MOTOR CLUB,
INC.

d/b/a

ROAD AMERICA MOTOR CLUB

and

ROAD AMERICA MOTOR CLUB, INC.

7300 Corporate Center Drive, Suite 601

Miami, Florida 33126

 

(hereinafter, collectively and individually
referred to as “RA”)

 

and

 

ARCIMOTO, INC.

2034 West 2nd Avenue

Eugene, OR 97402

 

(hereinafter, referred to as “AI”)

 

RA and AI may also be referred to in this
Agreement collectively as the “Parties” and individually as a “Party.”

 

Recitals

 

WHEREAS, Arcimoto,
Inc., an Oregon corporation, is a three-wheeled utility vehicle manufacturing company offering a suite of vehicles for purchase
by customers in the United States; and

 

WHEREAS, Brickell
Financial Services-Motor Club, Inc., d/b/a Road America Motor Club, and Road America Motor Club, Inc. are Florida corporations
providing a variety of motor club services, including roadside assistance services utilizing a network of independent towing and
service contractors (“ISPs”), throughout the United States and Canada; and

 

WHEREAS, AI
desires to make available for those consumers purchasing its new AI vehicle emergency roadside assistance services including, but
not limited to, towing, jump starting, and flat tire assistance for the purchased vehicle (collectively, “24-Hour Roadside
Assistance Services”); and

 

WHEREAS, RA
is in the business of providing 24-Hour Roadside Assistance Services and motor club services, and is willing, subject to all of
the terms and conditions as herein described, to provide 24-Hour Roadside Assistance Services as further defined and set forth
in Exhibit “A” (“24-Hour Roadside Assistance Service Program(s)”) to AI’s customers.

 

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NOW, THEREFORE,
in consideration of the foregoing and the mutual covenants and agreements set forth below, and for other good and valuable consideration,
the receipt, adequacy and sufficiency of which are hereby acknowledged, the Parties agree to the following:

 

TERMS:

 

		1.	Definitions.

 

		a.	For the purpose of this Agreement, the following additional
definitions shall apply:

 

i. “Administration
Fee” is defined as the compensation due RA by AI for the administration of the Program in accordance with the terms and
conditions of this Agreement.

 

ii. “Affiliate”
is defined as an entity, directly or indirectly, Controlling, Controlled by or under common Control with a Party, or any Affiliate
that is subsequently divested.

 

iii. “Assistance
Coordinator” is defined as a customer service representative employed and trained by RA or an RA Affiliate, at one of
RA’s or an RA Affiliate’s 24-hour call centers, to perform the Dispatch for 24-Hour Roadside Assistance Services requested
by a Member and/or Covered Vehicle driver, or a AI customer representative on behalf of the Member, in accordance with the Membership
Agreement and this Agreement.

 

iv. “Benefit Limit”
is defined as the maximum amount per Dispatch Episode available to a Member for a Covered Service, or other RA Service as indicated
herein Exhibit “A” (“24-Hour Roadside Assistance Service Program(s)”) and the Membership Agreement.

 

v. “Cancelled or
Expired Call” is defined as a call whereby an individual contacts RA utilizing a AI exclusive toll-free phone number
with a request for Services but whose corresponding Membership Agreement and/or Covered Vehicle information is found as cancelled
or expired in RA’s electronic database or is otherwise ineligible for Services under this Agreement. As more fully set forth
below, AA shall inform RA of any cancellations within thirty (30) days of same.

 

vi. “Claim Fee”
is defined as the amount invoiced by the ISP to and paid by RA for the cost of a Covered Service rendered to a Covered Vehicle
during a Dispatch Episode, or incurred for a GOA, in accordance with the terms and conditions of this Agreement which, for the
purposes of this Agreement, in no case shall exceed the Benefit Limit.

 

vii. “Claim Reimbursement
Amounts” is defined as the total sum due RA by AI consisting of the Dispatch Fee per Dispatch Episode or GOA, plus the
Claim Fee per Dispatch Episode, GOA, or Ancillary Service Claim, for a Member’s claim(s) for covered RA Services pursuant
to the terms and conditions of this Agreement.

 

viii. “Control”
is defined as the power to vote fifty percent (50%) or more of the voting interests of an entity or ownership of fifty percent
(50%) or more of the beneficial interests in income or capital of an entity.

 

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ix. “Covered Emergency”
and/or “Covered Service” is defined as a disablement of a Covered Vehicle for which a 24-Hour Roadside Assistance
Service may be provided under the terms and conditions as described in this Agreement.

 

x. “Covered Vehicle”
is defined as any the vehicle reported by AI to RA via an Update File and/or Master File as the vehicle eligible for RA Services
as of the Effective Date of Coverage.

 

xi. “Dispatch Episode”
and/or “Dispatch” is defined as a Member’s request for a 24-Hour Roadside Assistance Service for a Covered
Vehicle as outlined under the terms and conditions of this Agreement. Each Dispatch performed by RA with a request to an ISP for
a roadside assistance service type (including but not limited to the following examples: towing service, lock-out, battery assistance,
flat tire assistance, and/or Gone on Arrival) will be counted as a unique and separate Dispatch Episode.

 

xii. “Effective Date
of Coverage” is defined as the date the Member is eligible to receive the RA Services outlined in their Membership Agreement,
as applicable, and reported by AI to RA.

 

xiii. “Estimated
time of arrival” and/or “ETA” is defined as the estimated time of arrival of the ISP to the scene
of the Covered Vehicle’s disablement.

 

xiv. “Fulfillment”
is defined as the act of producing and providing to the Member the Membership Agreement, as applicable, and any other written materials
relating to the Member’s use of the Services.

 

xv. “Gone on Arrival”
or “GOA” is defined as a Dispatch Episode where: (A) the ISP arrived prior to or within fifteen (15) minutes
after the expiration of the ETA given the Member and/or Covered Vehicle’s driver and the Covered Vehicle was no longer at
the disablement scene or Member’s residence; and/or (B) the ISP arrived and Service was no longer needed for the Covered
Vehicle and, as a result, the Covered Service requested could not be rendered; and/or (C) a request for a Covered Service whereby
the Service was cancelled more than fifteen (15) minutes after the request for dispatch assistance had been made and the ISP was
already confirmed for service; and/or (D) the information provided by the Member and/or Covered Vehicle driver or AI when requesting
a Service was inaccurate and/or incomplete and, as a result, RA incurred a GOA Claim Fee.

 

xvi. “Informational
Call” is defined as a call whereby an individual contacts RA utilizing an RA Toll-Free Number with issues or questions
which shall be serviced by RA as further set forth in Section 8(b) (“RA Service Procedures”) below.

 

xvii. “ISP”
is defined as an Independent Service Provider that is dispatched by an Assistance Coordinator(s) to provide 24-Hour Roadside Assistance
Services to Members and/or disabled Covered Vehicles for Covered Emergencies.

 

xviii. “Master File”
is defined as a report electronically provided by AI to RA providing the information required in Section 13 (“Data Reporting”)
herein for all active Covered Vehicles as of the date of the report.

 

xix. “Member”
is defined as a customer who purchased a RA Membership through an optional offering to their purchase of a new vehicle, reported
by AI to RA as a person eligible for RA Services and whose Membership Fee has been received by RA in accordance to this Agreement.

 

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xx. “Membership Agreement”
is defined as an RA motor club membership agreement issued to a Member pursuant to the terms and conditions of this Agreement.
The Membership Agreement shall contain information related to the use of the RA Services including, but not limited to, a description
of coverages, Benefit Limits, exclusions and limitations, in accordance with the Member’s Program as set forth in this Agreement,
and a Membership card.

 

xxi. “Membership
Fee” is defined as the Service Fee due RA by AI for each Membership which is eligible for RA Services as reported by
AI to RA.

 

xxii. “Membership Kit”
is defined as the informational Membership materials regarding the Membership Program, including, without limitation: (i) details
regarding use of RA’s Services; (ii) RA’s Service coverage and limitations applicable to the Program Membership; and
(iii) two (2) Membership cards.

 

xxiii. “Monthly Invoice”
is defined as the monthly summary invoice submitted by RA to AI, pursuant to Section 20 (“Compensation”) herein,
for payment of Service Fees based upon the Update Files and/or Master Files required in Section 14 (“Data Reporting”)
of this Agreement.

 

xxiv. “Monthly Minimum
Service Fees” is defined as the minimum amount of Service Fees due to RA by AI each month.

 

xxv. “No Record Call”
or “No Rec” is defined as a call whereby an individual contacts RA utilizing an RA Toll-Free Number with a request
for Services but whose Membership or Covered Vehicle information cannot be located in RA’s electronic database.

 

xxvi. “Program”
is defined as the totality of the Services provided by RA to AI and/or Members in conjunction with such Membership Agreements,
and RA’s administration in connection with all such Services as set forth in this Agreement.

 

xxvii. “Proprietary
Information” as used herein shall mean any and all information, including, but not limited to, business plans, information
and strategies, marketing information, sales information, financial information and projections, customer information, products,
RA’s computer technology, composition of matter, process, design information systems, computer hardware or software, computer
application, computer code in source or object form, equipment, materials, samples, data (electronic, written or in any other form),
and Trade Secrets (hereinafter defined), and other information or knowledge generated or originated by RA relating to its business
or in the business which it or its affiliates intend to engage.

 

xxviii. “RA Toll-Free
Number” is defined as a dedicated toll-free number to access RA Services, from within the United States and Canada, provided
and assigned by RA to AI for a Program(s) pursuant to this Agreement.

 

xxix. “Service Fee(s)”
is defined as the compensation, due RA by AI for performance of RA Services in accordance with the terms and conditions of this
Agreement.

 

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xxx. “Service Level
Standard(s)” or “Service Level(s)” is defined as the minimum required service performance standard
for a particular Service performance item rendered by RA as set forth in Exhibit “B” (“Service Level Parameters”)
of this Agreement.

 

xxxi. “Term”
is defined as the time period for this Agreement set forth in Section 18 (“Term”) of this Agreement.

 

xxxii. “Territory”
is defined as the geographical area within which RA will provide the RA Services for a Program.

 

xxxiii. “Trade Secrets”
shall mean any and all information including, without limitation, any formula, pattern, drawing, compilation, program, device,
method, technique, design, concept, idea, plan, computer security information, process, cost data, pricing, marketing, sales, supplier/vendor/customer/Member
lists/weblists/web contacts/web information logo, trademark, products or related information, any item described as a trade secret
in accordance with the Florida Uniform Trade Secret Act (section 688.002(4), Florida Statutes, any other Florida Statute, or any
corresponding and comparable statute, code, or other act under any other state law, or Federal Law which defines trade secret,
directly or indirectly related to the past, present or anticipated business affairs of RA, that derives value, actual or potential,
from not being generally known to the public or to other persons who can obtain value from its disclosure or use and is the subject
of efforts that are reasonable under the circumstances to maintain such secrecy.

 

xxxiv. “Unverified
Call” is defined as a Cancelled or Expired Call or No Record Call, both for which AI has instructed RA to further verify
the caller’s current eligibility for RA’s Services pursuant to Section 10 (“Dispatch Procedures”)
of this Agreement.

 

xxxv. “Update File”
is defined as a report electronically provided by AI to RA providing the information required in Section 14 (“Data Reporting”)
herein below for certain Members and/or Covered Vehicles as of the date of the report.

 

xxxvi. “Verified
Call” is defined as a call received by RA from an enrolled Member or driver of a Covered Vehicle, as applicable and reported
to RA by AI, who: (A) utilized an RA Toll-Free Number, (B) appears in RA’s database as a Member and/or Covered Vehicle driver
that is requesting a Covered Service(s) for a Covered Vehicle, and (C) whose corresponding Membership does not show as cancelled
or expired in RA’s database.

 

		2.	Representations and Warranties of the Parties.

 

a. RA and AI each for itself
warrants and represents to the other that: (i) it is duly organized, validly existing and in good standing and has the right, power,
legal capacity and authority to enter into and lawfully perform its obligations under this Agreement; and, (ii) it has obtained
the corporate approvals necessary to enter into this Agreement.

 

b. RA and AI each for itself
warrants and represents to the other that, to the best of its knowledge, the performance of this Agreement is not prohibited by
and does not violate any law or any order or regulation of an administrative agency or other governmental body having jurisdiction
of such Party.

 

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c. The Parties agree to
exert their best efforts to comply at all times with all federal, state and local laws, rules and regulations applicable to its
products or services (“Applicable Laws”) as Applicable Laws may now or hereinafter be in effect; provided, however,
that neither Party shall be in default under this Agreement unless its failure to so comply causes direct damages to the other
Party.

 

		3.	Responsibilities
and Obligations of RA and AI.

 

a. AI agrees to offer RA’s
24-Hour Roadside Assistance Services as a stand-alone service offering for purchase to its clients and/or their customers.

 

b. RA agrees to provide
the Services set forth in Exhibit “A” (“24-Hour Roadside Assistance Service Program(s)”) throughout
the United States and Canada to each Member in accordance with this Agreement. In providing the Services, RA hereby agrees that
the Services shall be performed in a commercially reasonable, skillful and timely manner including, but not limited to, by RA’s
adherence to the Dispatch Service Parameters attached hereto as Exhibit “B” (“Service Level Parameters”).

 

c. AI agrees to pay RA Service
Fees, according to the Service Fee schedules agreed upon and provided herein Section 20 (“Compensation”), for
providing the RA Services contemplated by this Agreement.

 

d. AI agrees to inform RA
of cancellations or any other action by Member or AI that would discontinue coverage.

 

e. The Services shall be
subject to all of the terms and conditions set forth in Exhibit “A” (“24-Hour Roadside Assistance Service
Program(s)”); provided, however, that the Membership Agreement may be modified in RA’s discretion. RA agrees to
provide AI with no less than thirty (30) days’ advance notice of any change to the Services.

 

		4.	Marketing and Advertising.

 

a. AI will be responsible
for all marketing and advertising expenses for AI’s sales efforts or campaigns solely using methods permitted by the governmental
authorities with jurisdiction over AI.

 

b. AI agrees that it will
not use, nor will it allow any of AI’s employees, agents, contractors, sales representatives, brokers, distributors, or other
authorized representatives (“Authorized Representatives”) to use, in any way, any advertising or marketing materials
other than that provided by RA, which uses the name of RA or the RA logo or trademarks or makes any reference to RA or to any of
RA’s programs or plans, without first obtaining written authorization from RA. Such authorization will not be unreasonably withheld.

 

c. AI shall make no warranties,
and shall make reasonable efforts to ensure that its Authorized Representatives make no warranties, relating to the RA Services
described in this Agreement except as expressly set forth in the sales literature or Membership Agreement provided to AI by RA
or as expressly permitted by RA in writing. Such authorization will not be unreasonably withheld. Notwithstanding the foregoing,
AI and its Authorized Representatives may make representations concerning RA’s Services as described in Exhibit “A”
(“24-Hour Roadside Assistance Service Program(s)”) hereto.

 

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d. AI acknowledges and agrees
that it shall have the sole responsibility for any and all compensation or other remuneration due or payable to their respective
Authorized Representatives for the issuance of Services contemplated under this Agreement.

 

e. Subject to Applicable
Law(s), AI will also be responsible for determining the retail price for RA Memberships sold to AI’s customers. RA agrees
that AI, as its compensation for the performance of its obligations pursuant to this Agreement, is entitled to retain all proceeds
in excess of those Membership Fees paid to RA as required in Section 20 (“Compensation”).

 

		5.	Motor Club Agent Registration.

 

a. Hereinafter, for any
RA motor club programs where AI directly sells a motor club program provided by RA on an optional basis, AI agrees that RA will
appoint and register those certain employees or authorized representatives of AI as motor club agents of RA with the authority
to refer and make available for sale and/or delivery the memberships or programs of RA in those states where such registration
is required for a RA membership program. AI, its agent network, and/or service partners shall be responsible for providing RA with
the appropriately completed and signed registration form required by the state for each applicant upon the occurrence of the conditions
described in the foregoing sentence. All agent registration and appointment fees for AI personnel or employees shall be paid by
AI or the AI agents. RA shall be solely responsible for any and all transactions in connection with the membership in RA. AI shall
have no duty whatsoever under this Agreement or otherwise to market or sell, either directly or indirectly, RA motor club memberships
to any person except indirectly through AI’s marketing and sales in the ordinary course of business.

 

b. The motor club agent
registration and appointment of AI’s employees or authorized representatives shall be coordinated with and/or accomplished
by RA, so that RA may ensure the proper authority has been issued prior to any solicitation, referral, sale or offering for sale
of a RA motor club membership. AI agrees that RA shall have the right to terminate the authority of any employee appointed by RA
to make available any of RA’s memberships or programs.

 

c. AI, and those individuals
appointed as motor club agents for RA pursuant to the foregoing, shall have no duty whatsoever under this Agreement or otherwise
to market or sell, either directly or indirectly, RA motor club memberships to any person except as desired by AI through AI’s
marketing and sales in the ordinary course of business.

 

		6.	Fulfillment.

 

a. For all Members sourced
by AI in accordance with this Agreement, AI shall be responsible for Fulfillment and agrees to distribute the Membership to each
Member at the point of sale or reasonably thereafter.

 

b. RA will issue a supply
of the field issue Membership materials to AI for distribution to AI Clients. The cost of producing these materials shall be the
sole responsibility of RA.

 

c. AI shall not utilize
or issue to any Member any other customer fulfillment materials for the RA Services than those supplied by RA without prior review
and written approval of the materials by RA. Such authorization will not be unreasonably withheld.

 

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		7.	Membership Cancellations.

 

a. It is understood and
agreed upon by both Parties that any Member has the right to cancel their Membership with RA in writing at any time during the
term of their Membership pursuant to motor club statutes, and that disclosure of the Member’s cancellation rights in the
applicable Membership Agreement is required.

 

b. In the case of the applicable
AI Program(s) set forth in Exhibit “A” (“24-Hour Roadside Assistance Service Program(s)”), the Membership
Agreement will reflect that, as the Membership is being provided to the Member on a complimentary basis, the Membership is nonrefundable
and has no cancellation fee.

 

		8.	RA Services Procedures.

 

a. A RA Toll-Free Number
shall be provided and assigned by RA to AI for each Program. Each Program’s Toll-Free Number will be maintained by Assistance
Coordinators, including Assistance Coordinators that can provide bilingual services, to accept 24-Hour Roadside Assistance Service
follow-up calls from AI and/or Members at all times (24 hours a day, every day of the year). RA shall not use these numbers for
any other clients or programs, except as approved by AI.

 

b. RA shall use a customized
greeting when facilitating Services for Members as agreed upon with AI. Other than follow-up calls from Members related to an ongoing
Dispatch Episode, with non-emergency issues or questions such as Benefit Limits, Coverage, changes to a Service request, Dispatch
Episode cancellation, etc.) (“Informational Calls”) will be serviced by RA for an additional twenty-five dollar
($25.00) Service Call Fee.

 

		9.	Toll-Free Number(s).

 

a. It is understood and
agreed by RA and AI that the exclusive toll-free 24-Hour Roadside Assistance Services telephone line(s) (hereinafter, “Toll-Free
Number(s)”) are and shall remain the sole and exclusive property of RA.

 

b. In the event of expiration
or termination of this Agreement in accordance with those provisions herein, RA agrees it will, upon advance written request by
AI, promptly take the necessary action to release and arrange portability of the Toll-Free Number(s) as directed by AI.

 

		10.	Dispatch Procedures.

 

a. In accordance with AI’s
requirements, RA shall provide Covered Services for all Verified Calls. For Unverified Calls, the Parties agree that RA shall proceed
as follows:

 

		i.	Cancelled or Expired Call: Conduct a search
of RA’s electronic database for the Member’s name and Covered Vehicle information in an attempt to locate an active
Contract eligible for Services under this Agreement. Should the individual still not be eligible for Services, RA will offer to
dispatch 24-Hour Roadside Assistance Service for the caller pursuant to Section 10(a)(iii) below.

 

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		ii.	No Record Call: RA shall obtain from the caller
the required information, according to the instructions attached herein and made a part of this Agreement as Exhibit “C”
(“No Record Call Dispatching Process”), prior to providing the individual with RA Services according to the RA
Services configuration for the Program assigned the AI exclusive toll-free number utilized by the No Record Caller (as set forth
in Exhibit “A” (“24-Hour Roadside Assistance Service Program(s)”)) and according to the procedures
set forth in Exhibit “C”. For those No Record Callers who provide the required information in Exhibit “C”
and are provided RA Services, If the caller and/or vehicle does not appear in a subsequent Membership reporting by AI to RA
per Section 14 (“Data Reporting”), with payment of Service Fees for that Membership being made to RA by AI
within forty-five (45) days of the No Record Call, RA will invoice AI for the cost of the Services rendered to the Member for
the Services for these No Record Calls (“No Record Call Invoice”). The Parties agree that all No Record Calls Claim
Fees and Dispatch Fees due RA are to be paid in full by AI within thirty (30) days of receipt of an RA invoice by AI, and that
rejections of any No Record Call claims performed in accordance to this Agreement will not be allowable. If such full payment
is not received by RA for the No Record Call Dispatch Episodes performed in accordance to this Agreement within the thirty (30)
days’ period, AI shall be considered in breach of the Agreement and RA has the right to cease accepting any new business
reported by AI and performing indemnified 24-Hour Roadside Assistance Services for the AI Program until such payment is received
in full or the Agreement between the Parties is terminated.

 

		iii.	Should a Cancelled or Expired Caller or No Record Caller
not be able to provide the required information, RA will offer to dispatch assistance for the caller, but the caller must pay
for the cost of all provided Services directly to the ISP at the time of the disablement, in which case the caller will be eligible
to take advantage of RA’s pre-negotiated contracted rates with the ISP when obtaining assistance, and will be instructed
to seek reimbursement for the Services rendered up to their Contract’s Benefit Limit, if they believe they are entitled
to the Services through their Contract.

 

		11.	Dispatch Episodes.

 

a. For all AI Dispatch Episodes,
RA will contact a qualified ISP who will be promptly dispatched to assist the Member. Dispatch Service Parameters agreed to by
the Parties are outlined in Exhibit “B” (“Service Level Parameters”) to this Agreement. The ISP
will respond within RA guidelines as quickly as prevailing (weather, traffic or emergency conditions) permit.

 

b. Emergency conditions
include, but are not limited to, acts of God, police or government direction or control of local ISP network, flooding, terrorism,
rioting and earthquakes. An ISP’s performance shall be excused during the existence of any event of Force Majeure pursuant
to Section 26(l) (“Force Majeure”) of this Agreement.

 

		12.	Reimbursements.

 

a. Should a Member and/or
Covered Vehicle driver require 24-Hour Roadside Assistance Services when: (i) that individual’s call to RA for a Covered
Service(s) results in payment by the Member or Covered Vehicle driver to the ISP pursuant to Section 10 (“Dispatch Procedures”)
herein; or (ii) the requested Covered Service(s) cannot be provided by RA using its network of ISPs, RA will maintain a reimbursement
process for the Member, upon filing of proper paperwork including the original paid receipt for services rendered, for possible
reimbursement of the charges incurred by the Member up to the Membership’s Benefit Limit.

 

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b. Those Members contacting
RA for 24-Hour Roadside Assistance Services will be provided an authorization code and specific instructions for reimbursement
consideration if the requested Covered Service(s) could not be obtained from RA. A Member’s properly filed and eligible reimbursement
claim will be processed and paid up to the Benefit Limit if the Member’s eligibility for RA Services on the date the Covered
Service(s) was rendered is confirmed by RA.

 

		13.	Customer Care.

 

a. All resolution of disputes
with respect to Services between Member and RA and will be the responsibility of RA’s Customer Care Department. The decisions
of the Customer Care Department will be final and binding as set forth in the terms and conditions of this Agreement and the Membership
Agreement.

 

b. RA will notify AI of
all disputed or denied complaints and AI may elect to disregard RA’s recommendations and reimburse the Member at its sole
cost and expense. RA will provide AI with a monthly report detailing all Customer Care issues related to the AI Dispatch Episodes
upon AI’s reasonable request.

 

		14.	Data Reporting.

 

a. Throughout the Term,
AI shall provide to RA, on a weekly basis or more frequently if deemed necessary by AI and RA, an Update File identifying each
Member whose Membership status comports with one of the Update File transaction type codes referenced below. The Parties further
agree that a Master File shall subsequently be provided by AI to RA to be utilized by both Parties for billing reconciliation purposes.
The frequency of the subsequent Master File submissions shall be mutually agreed upon by the Parties.

 

b. After the Term, AI agrees
to promptly (and, in all cases, within fifteen (15) days) provide RA with an Update File reflecting Membership Cancellations as
(C)ancelled. The rights and obligations set forth in the preceding sentence shall survive the termination or expiration of this
Agreement.

 

c. For each Covered Vehicle,
AI shall provide the following information (individually, “Member Information” and, collectively, “AI
Data”) to RA:

 

		i.	Member’s name;

		ii.	Member’s address;

		iii.	Member’s phone number (mobile preferred, if available);

		iv.	Member’s AI Account number;

		v.	Make, model, and year of Covered Vehicle;

		vi.	Vehicle Identification Number (“VIN”) of Covered
Vehicle;

		vii.	Effective Date of Coverage and term for RA Services;

	 	viii.	Program and company code numbers assigned to AI by RA;

		ix.	Transaction type code:

		(A)	Master File - (M)aster

		(B)	Update File - (N)ew, (R)enewal, (C)ancel or (U)pdate; and,

		x.	Such other information as RA shall from time to time reasonably
require.

 

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d. In addition, AI shall
provide RA secure access to its electronic database for the purpose of verifying Member enrollment information and eligibility
for RA Services during RA’s process of providing RA Services pursuant to the terms and conditions of this Agreement.

 

		15.	Reports.

 

a. RA will provide AI with
monthly reports of new and renewed Members, including cancellations, at AI’s request. RA will also provide to AI, at AI’s
request, Dispatch Episode report providing the number of Dispatches per month including the Member’s name, Membership number,
date of service and type of service rendered.

 

b. The reports pursuant
to Section 14 (“Data Reporting”), including RA’s monthly reports, must be submitted in a format provided
by or acceptable to both Parties via secure electronic transfer. The cost of any programming required for a reporting Party’s
computer or reporting systems to accomplish the required reporting to the other Party shall be the sole responsibility and expense
of the reporting Party. All reports and contents of such reports shall be “Confidential Information” within the meaning
of Section 24 (“Confidentiality”) of this Agreement.

 

		16.	Insurance.

 

a. At all times during the
term of this Agreement, RA shall, at its sole expense, secure and maintain worker’s compensation insurance, in accordance
with applicable federal and state laws and regulations, and comprehensive general liability insurance for claims for damages due
to bodily and personal injury (including death), property damage and advertising injury caused by, or in conjunction with, the
operation of RA’s business or arising out of acts or omissions of its employees and/or ISPs. The minimum limits of general
liability insurance shall be: (i) combined single limit of $2,000,000 or not less than $1,000,000 per person and not less than
$1,000,000 per occurrence; (ii) $2,000,000 aggregate for bodily injury and not less than $1,000,000 per occurrence; and, (iii)
$1,000,000 aggregate for property damage. RA shall also secure and maintain excess liability insurance with an aggregate limit
of not less than $10,000,000. At the time this Agreement is signed and annually thereafter, upon AI’s annual request, RA
will provide AI with a certificate of insurance evidencing the foregoing insurance coverages and, with respect to liability coverage,
naming AI as an “Additional Insured” on those policies where allowable.

 

b. The insurance policies
referenced in Section 16(a) (“Insurance”) above shall provide coverage for liabilities or claims for damages
resulting from Services performed or undertaken by RA and/or its ISPs.

 

		17.	Relationship of the Parties.

 

a. Both Parties are and
shall be deemed independent contractors in the performance of their duties hereunder. Further, RA and AI acknowledge and agree
that the relationship arising from this Agreement does not constitute or create a general agency, any other type of agency, joint
venture, partnership, employer/employee relationship or franchisor/franchisee relationship between them.

 

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b. Both Parties shall identify
themselves as an authorized representative of the other Party only with respect to the Services covered by this Agreement and shall
otherwise identify themselves as an independent business.

 

c. AI and RA shall not make
any statements or any other expressions which disparage the other Party, or the products, services or business of the other Party;
provided, however, that nothing shall preclude a Party from giving truthful statements to regulatory and self-regulatory authorities.
This clause will survive the termination or expiration of this Agreement.

 

		18.	Term.

 

a. The term of this Agreement
shall commence as of the Effective Date and shall continue for an initial term of three (3) years (“Initial Term”)
or until either Party terminates this Agreement pursuant to the provisions of Section 22 (“Program(s) Review”),
Section 19(b) through (d) (“Termination”) or Section 26(l) (“Force Majeure”) hereof.

 

b. Unless written notice
is provided by either Party to the other Party at least ninety (90) days prior to the expiration of the Initial Term or any Extended
Term, this Agreement shall automatically renew for an additional terms of one (1) year upon each anniversary of the Effective Date
(each an “Extended Term”) or until either Party terminates this Agreement pursuant to the provisions of this
Agreement referenced in the preceding sentence.

 

		19.	Termination.

 

a. After the Initial Term,
either Party may terminate this Agreement for any or no reason by giving the other Party ninety (90) days’ prior written
notice.

 

b. Either Party may terminate
this Agreement for cause, upon thirty (30) day prior written notice to the other Party, only upon a violation not otherwise remedied
by the other Party of any Applicable Law(s) as may now or hereinafter be in effect which causes direct damages to the terminating
Party.

 

c. RA may immediately terminate
this Agreement for cause only upon the occurrence of any of the following:

 

		i.	In the event AI fails to promptly remit all funds due to
RA in the manner prescribed herein, RA shall have the right to terminate this Agreement effective the twentieth (20th) day following
written notice to AI of such failure. Termination shall be effective upon the twentieth (20th) day following written notice, unless
AI remits all funds due RA prior to such termination date.

 

		ii.	In the event AI procures a replacement roadside assistance
service provider without providing notice of non-renewal to RA pursuant to Section 19(b), or termination pursuant to Section
22 (“Program(s) Review”) or Section 26(l) (“Force Majeure”) of this Agreement, RA shall have
the right to immediately terminate this Agreement.

 

d. Either Party may terminate
this Agreement upon fifteen (15) days’ written notice of the occurrence of any of the following:

 

    12

     

    

 

		i.	The material breach of this Agreement (other than for the
reason set forth in Section 19(c) above, which is not cured within ten (10) days of written notice of such material breach
from the non-breaching Party. The date of written notice shall be determined by Section 26(i) (“Notices”) herein.

 

		ii.	The assignment or attempted assignment of this Agreement
or any portion of any interest in or any payment due under this Agreement without the prior written consent of the non-assigning
Party subject, however, to Section 26(a) (“Assignment”) herein.

 

		iii.	Change in Control of a Party: Any corporate mergers,
acquisitions, initial public offerings (“IPOs”), or changes in ownership or Control of either Party subject, however,
to Section 26(p) (“Survivorship”) below.

 

e. This Agreement shall
automatically terminate without action by either Party in the event of: (i) a Party being adjudicated bankrupt or becoming insolvent;
(ii) upon the filing by or against a Party of a voluntary or involuntary petition of bankruptcy; (iii) the execution by a Party
of an assignment for the benefit of its creditors; or (iv) the appointment of a receiver to a Party.

 

f. Upon termination, AI
shall return all Confidential Information, Trade Secrets protected and any and all other Proprietary Information to RA. Failure
to do so shall be considered a material breach of this Agreement and shall be governed by Section 26(d) (“Governing Law”).

 

		20.	Compensation.

 

a. AI agrees to pay RA,
within fifteen (15) days following the execution of the Parties of this Agreement, a total amount of Twenty-Five Thousand and 00/100
U.S. Dollars ($25,000.00) for projected information technology and related costs to be incurred by RA for the implementation and
launch of the network of Authorized Repair Centers, as further described in Exhibit “A” (“24-Hour Roadside
Assistance Service Program(s)”).

 

b. In addition to the Implementation
Costs, AI agrees to pay RA all fees set forth in the RA Service Fee Schedule set forth in Section B (“RA Service Fee Schedule”)
of Exhibit “A” (“24-Hour Roadside Assistance Service Program(s)”) for each Member sourced through
AI throughout the term of this Agreement:

 

c. All fees as set forth
in Section B (“RA Service Fee Schedule”) of Exhibit “A” (“24-Hour Roadside Assistance Service
Program(s)”) are exclusive of any applicable sales, use or other tax or governmental charge, however designated, that
are properly levied by any taxing authority upon the purpose of this Agreement and required by law (collectively, the “Taxes”).

 

d. RA and AI agree that
AI is responsible for and will reimburse RA for the cost of all covered RA Services plus the Dispatch Fees due per Dispatch Episode
as further set forth in Section B (“RA Service Fee Schedule”) of Exhibit “A” (“24-Hour
Roadside Assistance Service Program(s)”).

 

e. RA and AI further agree
that all fees as set forth in Section B (“RA Service Fee Schedule”) of Exhibit “A” (“24-Hour
Roadside Assistance Service Program(s)”) due to RA from AI are non-cancelable and deemed earned as received.

 

    13

     

    

 

		21.	Payment of Service Fees by AI.

 

a. AI agrees it shall remit
the total Service Fees due to RA by Dispatch Episode based on the monthly RA Report set forth in Section 15 (“Reports”),
on or about the fifteenth (15th) day of each calendar month for the previous month’s business, but no later than the fifteenth
(15th) of each calendar month. Unpermitted retention of Service Fees shall be considered Civil Theft by AI and shall be governed
by §772.11(1) Florida Statutes.

 

b. Further, the Parties
agree that AI shall pay RA the Service Fees due or the sum of three thousand dollars ($3,000.00) (“Monthly Minimum Service
Fee”), whichever amount is greater each month. This will be effective one year after the signing of this contract.

 

c. Should any amount owing
RA under this Agreement not be paid by AI when due, such amount will accrue interest at the rate of one and a half percent (1.5%)
per annum. Such interest shall be calculated and shall be compounded monthly on the entire balance then due, commencing from the
time the payment is due, until such time as the entire outstanding amount plus all accrued interest is paid in full to RA.

  

		22.	Program(s) Review.

 

a. Both Parties agree that
RA’s Service Fee schedule for a Program has been based upon the Program’s Services structure and positioning by AI,
anticipated Claim Fees; and anticipated utilization of the Services by Members sourced through AI.

 

b. Further, the Parties
agree that, on a quarterly basis, RA reserves the right to review the AI’s Program(s) profitability. In the event a Service
Fee increase or decrease is needed for a Program, RA agrees to notify AI at least thirty (30) days prior to the effective date
of such a Service Fee adjustment for an AI Program offering.

 

c. The Parties shall attempt
to renegotiate and mutually agree to adjust the proposed RA Service Fee Schedule provided during the thirty (30) day period; however,
if an agreement cannot be reached within that period, this Agreement shall terminate automatically at end of said thirty (30) day
period.

 

d. The termination or cancellation
of this Agreement for any reason shall not in any manner affect or impair the rights of any Member to receive benefits accrued
prior to the effective date of such termination.

 

		23.	Program Modification and Additional Programs.

 

a. AI and RA agree that
throughout the Term, AI may decide to modify, customize or enhance a Program being offered by AI or may decide to offer other RA
24-Hour Roadside Assistance programs or services such as transport services, vehicle theft recovery or other related services.

 

b. RA and AI agree that
such new program(s) (including but not limited to RA Services descriptions, Benefit Limits, compensation schedules and other necessary
information) shall be added to and by reference made a part of this Agreement in Exhibit “D” (“Additional
Service Plan Offerings”) via an amendment to this Agreement as set forth herein Section 26(c) (“Modification”).

 

    14

     

    

 

		24.	Confidentiality.

 

a. Each Party acknowledges
that during the term of this Agreement, it shall have access to confidential information and trade secrets of the other, including
without limitation, customer lists; provider lists; information concerning methods of operations, systems, and products; Member
Information; and, AI Data (individually and collectively, “Confidential Information”). Each Party acknowledges
and agrees that the foregoing Confidential Information of a Party (“Disclosing Party”) provided to the other
Party (“Receiving Party”) is confidential and proprietary and that the release of this information to any third
party may cause irreparable harm to the Disclosing Party. Accordingly, the Receiving Party agrees not to disseminate to any third
party, or use for any purpose except as expressly authorized in this Agreement, Confidential Information of the Disclosing Party;
provided, however, that RA may provide Member Information to its ISPs as required during the ordinary course of providing Services
pursuant to this Agreement. Further, each Party may disclose Confidential Information in accordance with judicial or other governmental
order, provided the Receiving Party shall give the Disclosing Party reasonable notice prior to such disclosure and shall comply
with any applicable protective order or equivalent.

 

b. The Parties also agree
that a violation of the covenants described in this Section 24 (“Confidentiality”) may cause irreparable and
substantial damage and that no adequate remedy may be available at law or in equity. Should either Party be found to have violated
the confidentiality provision of this Agreement, it will be responsible for any direct damages resulting including costs and reasonable
attorney’s fees arising out of the violation. In addition to the recovery of money damages and any other rights and remedies
available at law or in equity, the non-breaching Party shall be entitled to seek equitable relief by way of a temporary restraining
order, temporary injunction or permanent injunction. Such equitable relief can be sought in any court of law having both subject
matter and personal jurisdiction as reaffirmed in Section 26(d) (“Governing Law”) herein.

 

c. This Section 26 (“Confidentiality”)
will survive the termination or expiration of this Agreement.

 

		25.	Indemnification/Hold Harmless.

 

a. Each Party agrees to
indemnify and hold harmless, to the fullest extent permitted by law, the other Party from any and all acts by it which may be unauthorized
hereunder or contrary to the terms and conditions of this Agreement.

 

b. AI assumes liability
for and agrees to indemnify and hold harmless, to the fullest extent permitted by law, RA, its respective shareholders, directors,
officers, Affiliates, successors, assigns, employees, subcontractors and agents, from and against any and all liabilities, claims,
actions, losses, damages, injuries, penalties, costs, demands, and expenses (including without limitation legal fees) of every
kind and nature imposed on, incurred by or asserted against RA in any way related to, connected with or arising out of AI’s
alleged negligent acts or omissions arising from this Agreement.

 

c. RA assumes liability
for and agrees to indemnify and hold harmless, to the fullest extent permitted by law, AI, its respective shareholders, directors,
officers, Affiliates, successors, assigns, employees, subcontractors and agents, from and against any and all liabilities, claims,
actions, losses, damages, injuries, penalties, costs, demands, and expenses (including without limitation legal fees) of every
kind and nature imposed on, incurred by or asserted against AI in any way related to, connected with or arising out of RA’s intentional
acts or willful misconduct arising from this Agreement.

 

    15

     

    

 

d. Within fifteen (15) business
days after receipt by a Party entitled to indemnification under this Section 25 (“Indemnification/Hold Harmless”)
(an “Indemnified Party”) of notice of the commencement of any investigation, action, claim or proceeding against
it, such Indemnified Party shall, if a claim in respect thereof is put to the other Party (an “Indemnifying Party”),
give the Indemnifying Party written notice of the commencement thereof. Failure to timely notify the Indemnifying Party will not
relieve the Indemnifying Party from any liability which it may have to the Indemnified Party.

 

e. In case any such action
is brought against the Indemnified Party, and the Indemnified Party notified the Indemnifying Party of the commencement of any
investigation, action, claim or proceeding against it for which the Indemnified Party intends to seek indemnification, the Indemnifying
Party will be entitled to participate therein and, to the extent that it may wish, assume the defense thereof, with counsel reasonably
satisfactory to such Indemnified Party. After notice from the Indemnifying Party of its intention to assume the defense of an action,
the Indemnified Party shall bear the expenses of any additional counsel obtained by it, and the Indemnifying Party shall not be
liable to such Indemnified Party under this Section 25 (“Indemnification/Hold Harmless”) for any legal or other
expenses subsequently incurred by such Indemnified Party in connection with the defense thereof, other than reasonable costs of
investigation. The Indemnified Party may not settle any action without the written consent of the Indemnifying Party, and the Indemnifying
Party may not settle any action without the consent of the Indemnified Party. In either event, consent shall not be unreasonably
withheld.

 

f. The rights and obligations
set forth in this Section 25 (“Indemnification/Hold Harmless”) shall survive any expiration or termination of
this Agreement.

 

		26.	Miscellaneous.

 

a. Assignment. Neither
AI nor RA shall assign or transfer any material rights, duties or obligations, or any portion thereof, under this Agreement without
the prior written consent of the other Party. The Parties agree that this Section 26(a) (“Assignment”) is not
intended to apply to RA’s ISPs contracted with RA or RA Affiliates to perform Services in accordance to this Agreement.

 

b. Severability.
Should any portion of this Agreement be held by a court of competent jurisdiction to be invalid or unenforceable, such provision
or requirement will be enforced only to the extent it is not in violation of such law or is not otherwise unenforceable and all
other provisions and requirements of this Agreement will remain in full force and effect.

 

c. Modification.
No alterations or additions to this Agreement shall be binding unless memorialized in writing and signed by both Parties, except
as herein otherwise provided.

 

d. Governing Law.
This Agreement shall be governed by and construed in accordance with the laws of the State of Florida, without regard to principles
of conflicts of laws that would otherwise cause the application of the laws of any jurisdiction other than the internal laws of
the State of Florida to the rights and duties of the Parties.

 

    16

     

    

 

e. Dispute Resolution.
In case of any dispute arising from, or in connection with the subject matter of this Agreement, including the interpretation or
enforcement of this Agreement but excluding the seeking of extraordinary relief as provided in Section 26(d) (“Governing
Law”) above, any such dispute shall be resolved, to the extent possible, by informal meetings between the Parties and
discussions in good faith. The Parties’ objective and intent is to have disputes resolved by the appropriate levels of authority
without the need for escalation. Any dispute or disagreement arising between Road America and AI that cannot be mutually resolved,
after referral to the Parties’ respective senior vice president or their designees for discussion and attempted resolution,
shall be submitted for mandatory non-binding mediation which shall be undertaken before a mediator appointed by the American Arbitration
Association (the “AAA”) in accordance with the AAA’s Commercial Mediation Procedures. This mediation shall take
place at the offices of AAA in Miami, Florida, or as otherwise agreed to by the Parties. It shall be mandatory for the Parties
to be represented by a vice-president or an officer of equal or higher rank within the organization. Other representatives of the
Parties may be in attendance and present at this mediation. In the event that a Party fails to respond to a written mediation request,
the requesting Party may file suit in court as set forth in Section 26(d) (“Governing Law”), supra.

 

f. If the dispute has not
been resolved within thirty (30) days after their good faith effort to mediate, the parties hereby irrevocably and unconditionally
agree that any action must be brought in the court(s) having jurisdiction in Miami-Dade County, Florida. THE PARTIES EXPRESSLY
WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, BETWEEN ANY OF THE PARTIES ARISING
OUT OF OR RELATED TO THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. Any Party may file an original counterpart or a copy of this
Agreement with any court as written evidence of the consent of the Parties to the waiver of their right to trial by jury.

 

g. Attorneys’ Fees.
In any legal action or other proceeding brought for the enforcement of this Agreement, the non-prevailing Party shall pay the prevailing
Party’s attorney’s fees, court costs and all expenses even if not taxable as court costs, including, without limitation,
all such fees, costs and expenses incident to appeals.

 

h. Section and Paragraph
Headings. The section and paragraph headings used in this Agreement are included solely for convenience and shall not affect,
or be used in connection with, the interpretation of this Agreement.

 

i. Notices. Any notice,
demand, or communication required, permitted, or desired to be given hereunder, shall be given in writing and deemed effectively
given when personally delivered or mailed by prepaid certified mail, return receipt requested, or by nationally recognized overnight
courier, directed to the respective Parties addressed as follows:

 

	AI	RA
	 	 
	Arcimoto, Inc.	Road America Motor Club
	2034 West 2nd Avenue	7300 Corporate Center Drive
	Eugene, OR 97402	Suite 601
	 	Miami, FL  33126
	 	 
	Attention: President	Attention:  President
	 	 
	 	with a copy to:
	 	Legal & Compliance Dept.

 

    17

     

    

 

or to such other address, and
to the attention of such other person(s) or officer(s), as either Party may designate by written notice pursuant to this Section
26(i) (“Notices”). Notice shall be deemed effectively given when personally delivered or mailed by prepaid certified
mail, return receipt requested, or by nationally recognized overnight courier.

 

j. Waiver of Breach.
The waiver by either Party of a breach, failure, right, remedy or violation of any provision of this Agreement shall not operate
as, or be construed to be, a waiver of any other breach, failure, right, remedy or violation, whether or not similar, nor shall
any waiver constitute a continuing waiver.

 

k. Additional Assurances.
The provisions of this Agreement shall be self-operative and shall not require further agreement by the Parties except as may be
herein specifically provided to the contrary; provided, however, that at the request of either Party, the other Party shall execute
such additional instruments and take such additional acts as may reasonably be necessary to effectuate this Agreement.

 

l. Force Majeure.
Neither Party shall be liable nor deemed to be in default for any delay or failure in performance under this Agreement or other
interruption of service deemed resulting, directly or indirectly, from Force Majeure events including, without limitation, acts
of God, civil or military authority, acts of public enemy, war, accidents, fires, explosions, earthquakes, floods, failure of transportation,
strikes or other work interruptions by either Party’s vendors, or any similar or dissimilar cause beyond the reasonable control
of either Party. Performance shall be excused during the existence of any event of Force Majeure and, if such event continues for
more than forty-five (45) days, it shall give rise to cause to terminate this Agreement.  The Party unable to perform
because of an event of Force Majeure shall advise the other Party in writing of the existence of such event within five (5) days
of the knowledge of the existence of such event.   If the event of Force Majeure is of public knowledge, written
notice of such is excused.  Once the event preventing performance has been resolved, the Party unable to perform shall give
notice in writing that it is ready to again commence performance of its obligations.

 

m. Time of Essence.
Time shall be of the essence with respect to this Agreement.

 

n. Entire Agreement.
This Agreement supersedes all previous oral or written representations, agreements, promises, or other communications, concerning
or relating to the subject matter of this Agreement, and constitutes the entire Agreement between the Parties. RA and AI shall
be entitled to no benefits other than those specified herein. No amendment to this Agreement shall be valid unless incorporated
as provided herein, and such amendment(s) will become effective on the date stipulated in such amendment(s). RA and AI specifically
acknowledge that in entering into and executing this Agreement, RA and AI rely solely upon the representations and agreements contained
in this Agreement and no others.

 

o. Restricted Authority.
AI and RA shall have no authority other than as expressly granted by this Agreement. Neither RA nor AI is authorized to: (i) alter,
waive, or modify any of the terms or conditions of any program offered by the other Party, (ii) enter into any agreement or contract
on behalf of the other Party, (iii) accept any money on behalf of the other Party, or (iv) extend credit for or on behalf of the
other Party.

 

p. Survivorship.
This Agreement shall survive any corporate mergers, acquisitions, IPOs, change in ownership or Control, or corporate re-structuring
of either Party.

 

    18

     

    

 

q. Interpretation.
The language used in this Agreement shall be deemed to be the language chosen by the Parties to express their mutual intent, and
no rule of strict construction will be applied against either Party.

 

r. Counterparts.
This Agreement may be executed in one or more counterparts and, upon the execution by both Parties, any one of which may be taken
as an original and shall constitute the same instrument.

 

s. Facsimile/Electronic
Execution. This Agreement may be executed as facsimile and/or electronic original, and each copy of this Agreement bearing
the facsimile or electronically transmitted signature of the authorized representative of each Party shall be deemed to be an original.

  

{The remainder of
this page is intentionally left blank. Signature page to follow.}

 

    19

     

    

 

IN WITNESS WHEREOF,
the Parties have each caused this Agreement to be to be signed and delivered by its duly authorized officer or representative as
of the dates written below.

 

SIGNED THIS 4 day of February 2020 by:

 

	WITNESS:	 	ARCIMOTO, INC.
	 	 	 	 	 
	By:	 	 	By:	/s/ Douglas M. Campoli
	 	 	 	 	 
	 	 	 	Print Name:	Douglas M. Campoli
	 	 	 	 	 
	 	 	 	Title: 	CFO, Secretary and Treasurer
	 	 	 	 	 
	SIGNED THIS 4 day of February 2020 by:	 	 	 
	 	 	 	 	 
	WITNESS:	 	BRICKELL FINANCIAL SERVICES-MOTOR CLUB, INC. d/b/a ROAD AMERICA MOTOR CLUB
	 	 	 	 	 
	By:	 	 	By:	/s/ Jair Marrugo
	 	 	 	 	 
	 	 	 	Print Name:  	Jair Marrugo
	 	 	 	 	 
	 	 	 	Title: 	CEO, Road America
	 	 	 	 	 
	WITNESS:	 	ROAD AMERICA MOTOR CLUB, INC.
	 	 	 	 	 
	By:	 	 	By:	/s/ Jair Marrugo
	 	 	 	 	 
	 	 	 	Print Name:	Jair Marrugo
	 	 	 	 	 
	 	 	 	Title:	CEO, Road America

 

 

20edwardlazarusofferletter

DocuSign Envelope ID: 198F7EAC-55EF-4C48-B93C-0F9ED69036DE                                                  December 5, 2018              Dear Eddie:              We’re thrilled to offer you a position with Sonos!              In the exempt position of General Counsel you’ll be based in our Santa Barbara office reporting to Patrick           Spence, the Chief Executive Officer.              This letter outlines information related to your compensation and benefits. Attached to this letter is an           Addendum A which contains the “Employee Agreement”. The Employee Agreement describes           additional material terms and conditions of your employment.  You should read this offer letter and the           attached Employee Agreement carefully.              Base Salary              If you decide to join Sonos, you will be paid an initial annual salary of $350,000 (your “Base Salary”),           which will be paid semi-monthly in accordance with Sonos’ normal payroll practices as established or           modified from time to time. Your Base Salary shall be subject to all of the required and elected taxes and           withholdings.                      Sign-On Bonus                      After you commence employment with Sonos, you will receive a sign-on bonus in the gross amount of           $21,000.00.  The sign-on bonus will be paid to you on the first payroll period following your start date as           detailed below.               Bonus Eligibility              You will also be eligible for a discretionary target 25% bonus of your annual base salary, which is           based solely on the company’s performance against its annual target for revenue growth and           operating profit. In addition, you must commence employment prior to August 31 to be eligible to           receive a pro-rated discretionary bonus for the current fiscal year which runs October to           September. Sonos reserves the right to change its discretionary bonus criteria from time to time           based on company performance.              Equity Award              If you decide to join Sonos, at the first meeting of the Compensation Committee (the “Committee”)           of Sonos' Board of Directors following your start date (“Committee Meeting”) it will be           recommended that Sonos grant you an option to purchase shares of Sonos' Common Stock and,           once the shares of Sonos’ Common Stock are publicly traded, restricted stock units (“RSUs”)           settleable in shares of Sonos’ Common Stock. Subject to approval by the Committee, the option           grant will give you the right to purchase up to 200,000 shares of Common Stock at a price per           share equal to the fair market value of Sonos’ Common Stock on the date of grant, as determined           by the Committee at the Committee Meeting, and the grant of RSUs will give you the right to           receive shares of Common Stock in an aggregate value of up to $800,000, as determined by the                                                 1 

 

DocuSign Envelope ID: 198F7EAC-55EF-4C48-B93C-0F9ED69036DE            Committee on the date of grant.           The option shares and the RSUs will vest as follows: 25% of the shares subject to the option grant,           and 25% of the RSUs, will vest 12 months after your start date, subject to your continuing           employment with Sonos on such date. The remaining option shares and RSUs will vest quarterly           over the next three years in equal quarterly installments, in each case, however, subject to your           continuing employment with Sonos on each such vesting date.           The option and RSU grants will be subject to the terms and conditions of Sonos' 2018 Equity           Incentive Plan and Sonos’ standard forms of award agreements thereunder.              Relocation              Plus Relocation, our relocation vendor, will provide reimbursement and assistance with costs related to           relocation such as movers, temporary housing, etc., up to a total maximum of $30,000, subject to your           execution of the Relocation Agreement, the terms and conditions outlined therein, the Company’s           Relocation Policy, and applicable IRS rules.           Benefits              Regular full-time employees working 30 or more hours per week will be eligible to receive benefits that           are provided to U.S. employees. These presently include benefits such as life and health (medical, dental           & vision) insurance, paid time off, a 401(k) plan, and tuition reimbursement. For a more detailed           understanding of the benefits and the eligibility requirements, please consult the summary plan           descriptions for the programs and Sonos’ Employee Handbook, which will be made available to you           during your new hire orientation. Sonos reserves the right to discontinue, suspend, or to modify such           plans, programs and practices.              Important Terms and Conditions of Employment              There are several important terms and conditions of employment at Sonos of which you should be aware.           These terms, which are explained in the attached Employee Agreement, generally apply to all U.S.           employees of Sonos in the same manner as they will apply to you. This offer of at-will employment is           expressly conditioned upon a satisfactory background check, and your acceptance and execution of both           the Employee Agreement and Arbitration Agreement (respectively attached as Addendum A and B).              Please accept this offer by signing and dating below no later than December 7, 2018. If you           accept our offer, we anticipate that your first day of employment would be Wednesday January 2,           2019. In accepting this offer of employment, you represent and warrant that you are not relying upon           any representation or statement except those terms set forth in this letter. You acknowledge that this           letter supersedes all prior representations regarding the terms and condition of your employment.              We look forward to having you join us as we lead the music-listening revolution.            Sincerely,            Edward Peter Lazarus                       Sonos, Inc.                 Employee SIGNATURE                                               &#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;                              Anna Fraser                                                      Chief People Officer           SIGNATURE DATE                                                   2 

 

DocuSign Envelope ID: 198F7EAC-55EF-4C48-B93C-0F9ED69036DE                                              Addendum A                                            Employee Agreement                (At-Will Employment, Confidential Information, and Invention Assignment Agreement)                    As a condition of your employment with Sonos, Inc., its subsidiaries, affiliates, successors            or assigns (collectively, “Sonos”), and in consideration of your employment with Sonos and your            receipt of the compensation now and hereafter paid to you by Sonos, you agree to the following            terms and conditions outlined in this At Will Employment, Confidential Information, and Invention            Assignment Agreement (“Employee Agreement”). This Employee Agreement shall be effective            as of the date you sign below. Terms not defined herein shall have the meaning set forth in the            accompanying offer letter.                           1. Specifics of Employment.                        A.    At-Will Employment. Your employment shall be on an at-will basis. As an            at-will employee, either you or Sonos can terminate your employment at any time and for any            reason or no reason, with or without prior notice. As a result, nothing in the offer letter (including            the Addendum(s) ) is a promise or guarantee of employment for any specific period of time or            continued employment. Any contrary representations, which may have been made to you, are            superseded by this Employee Agreement. Sonos also retains the right to make all other decisions            concerning  your  employment  (e.g.,  changes  to  your  position,  title,  level,  responsibilities,            compensation, job duties, reporting structure, work location, work schedule, goals or any other            managerial  decisions)  at  any  time,  with  or  without  cause  or  advance  notice,  as  it  deems            appropriate in its sole discretion. Although your job duties, title, compensation and benefits, as            well as Sonos’ personnel policies and procedures, may change from time to time, the “at will”            nature of your employment may only be changed in an express written agreement signed by you            and a duly authorized officer of Sonos.                          By  signing  this  employment  agreement,  you  understand  and  acknowledge  that            your employment with Sonos is for an unspecified duration and constitutes “at-will” employment.            You also understand that any representation to the contrary is unauthorized and not valid unless            obtained in writing and signed by the chief executive officer of Sonos. You acknowledge that this            employment relationship may be terminated at any time, with or without good cause or for any or            no cause, at the option either of Sonos or yourself, with or without notice.                           B.    Compliance with Sonos Standards; Cooperation. As a Sonos employee,            you will be expected to abide by Sonos' policies, rules and standards of conduct outlined in the            Employee Handbook, as well as this Employee Agreement. To this end, Sonos expects you to            comply at all times with Sonos’ policies, including without limitation standards of professionalism,            respect for others, data security policy, facilities and IT systems policies, and Sonos Purchasing            Policy. All relevant policies shall be provided to you following your start date. You may be required            to acknowledge receipt of and intended compliance with any such policy statements provided to            you.                          You additionally represent and warrant that you shall observe and comply with all            applicable laws, ordinances, codes and regulations of governmental agencies, including federal,            provincial,  state, municipal  and  local governing bodies,  in  performing  your  employment  duties            hereunder. You also agree that, during the term of your employment with Sonos and at all times            thereafter,  upon  reasonable  request,  you  will  fully  cooperate  with  Sonos  and/or  its            representatives, without additional compensation, concerning any business matters or disputes            of any kind about which you have, or may have, any relevant information.                                                  3 

 

DocuSign Envelope ID: 198F7EAC-55EF-4C48-B93C-0F9ED69036DE                         C.    Background  Check. Sonos  reserves  the  right  to  conduct  background            investigations and/or reference checks on all of its potential employees prior to hire and during            employment. The offer of employment may be rescinded at any time in the event of unsatisfactory            background investigation and/or reference check results. If required by law, you will receive a            disclosure regarding the nature and scope of the background check Sonos plans to conduct on            you and a consent form to authorize Sonos to conduct such background check under separate            cover.                        2. Confidential Information.                        A.    Sonos  Confidential  Information.  You  agree  at  all  times  during  your            employment and thereafter, to hold in strictest confidence, and not to use (except for the benefit            of Sonos), and not to disclose to any person, firm or corporation without written authorization of            the  Board  of  Directors  of  Sonos,  any  Confidential  Information  of  Sonos,  except  under  a  non-            disclosure agreement with a third party duly authorized and executed by Sonos. you understand            that “Confidential Information” shall mean any and all confidential and/or proprietary knowledge,            data or information of Sonos, its affiliates, parents and subsidiaries, whether having existed, now            existing, or to be developed during your employment. By  way  of illustration but not limitation,            “Confidential Information” includes: (a) trade secrets, inventions, mask works, ideas, processes,            formulas,  source  and  object  codes,  data,  programs,  other  works  of authorship,  know-how,            improvements,  discoveries,  developments,  designs  and  techniques  and  any  other  proprietary            technology  and  all  patents,  copyrights  and/or  other  proprietary  rights  therein;  (b)  information            regarding research, development, new products, marketing and selling, business plans, budgets            and  unpublished  financial  statements,  licenses,  prices  and  costs,  margins,  discounts,  credit            terms, pricing and billing policies, quoting procedures, methods of obtaining business, forecasts,            future plans and potential strategies, financial projections and business strategies, operational            plans,  financing  and  capital-raising  plans,  activities  and  agreements,  internal services and            operational manuals, methods of conducting Sonos business, suppliers and supplier information,            and purchasing; (c) information regarding customers and potential customers of Sonos, including            customer lists, names, representatives, their needs or desires with respect to the types of products            or services offered by Sonos, proposals, bids, contracts and their contents and parties, the type            and  quantity  of  products  and  services  provided  or  sought  to  be  provided  to  customers  and            potential customers of Sonos and other non-public information relating to customers and potential            customers; (d) information regarding any of Sonos’ business partners and their services, including            names; representatives, proposals, bids, contracts and their contents and parties, the type and            quantity of products and services received by Sonos, and other non-public information relating to            business  partners;  (e)  information  regarding  personnel,  contractors,  employee  lists,            compensation, and employee and contractor skills; and (f) any other non-public information which            a competitor of Sonos could use to the competitive disadvantage of Sonos.  “Confidential            Information” shall not include information that: (1) is or becomes a matter of public knowledge            through no fault of yours or without violation of any duty of confidentiality by you; or (2) is rightfully            received by you from a third party without a duty of confidentiality. Further,  nothing  in  this            Employee  Agreement  shall  prohibit  you  from  discussing  the  terms  and  conditions  of my            employment with others to the extent expressly permitted by Section 7 of the National Labor            Relations Act.                           B.    Former  Employer  Information.  You  agree  that  you  will  not,  during your            employment with Sonos, improperly use or disclose any proprietary information or trade secrets            of any former employer or other person or entity and that you will not bring onto the premises of            Sonos  any  unpublished document  or  proprietary  information  belonging  to  any  such  employer,            person or entity unless consented to in writing by such employer, person or entity.                        C.    Third Party Information. You recognize that Sonos has received and in the            future will receive from third parties their confidential or proprietary information subject to a duty            on Sonos’ part to maintain the confidentiality of such information and to use it only for certain                                                  4 

 

DocuSign Envelope ID: 198F7EAC-55EF-4C48-B93C-0F9ED69036DE             limited purposes. You agree to hold all such confidential or proprietary information in the strictest            confidence and not to disclose it to any person, firm or corporation or to use it except as necessary            in carrying out your work for Sonos consistent with Sonos’ agreement with such third party.                           3. Inventions.                        A.    Inventions Retained and Licensed. Upon signing the Employee Agreement,            you will be prompted to review a separate attachment titled “List of Prior Inventions” where you            will  list  all  inventions,  original  works  of  authorship,  developments,  improvements,  and  trade            secrets which were made by you prior to your employment with Sonos, which belong to (or are            otherwise controlled by) you (collectively referred to as “Prior Inventions”), and which you do not            wish to be assigned to Sonos hereunder; or, if no such list is outlined, you represent that there            are no such Prior Inventions. Upon signing the Employee Agreement, the List of Prior Inventions            will be provided electronically as a separate attachment. If, during your employment with Sonos,            you incorporate into a Sonos product, process or service a Prior Invention, you hereby  grant  to            Sonos  a  nonexclusive,  royalty-free,  fully  paid-up,  irrevocable,  perpetual,  worldwide  license to            make, have made, modify, use and sell such Prior Invention as part of or in connection with such            product, process or service, and to practice any method related thereto.                           B.    Assignment of Inventions. You agree that you will promptly make full written            disclosure to Sonos, and will hold in trust for the sole right and benefit of Sonos, or its designee,            all  my  right,  title,  and  interest  in  and  to  any  and  all  inventions,  original  works  of  authorship,            developments,  concepts,  improvements,  designs,  discoveries,  ideas,  algorithms,  databases,            computer programs, formulae, techniques, graphics or images, audio or visual works, trademarks            or trade secrets, in each case whether or not patentable or registrable under copyright or similar            laws, which you may solely or jointly conceive or develop or reduce to practice, or cause  to  be            conceived or developed or reduced to practice, during the period of time you are in the employ of            Sonos (collectively referred to as “Inventions”), except as provided in Section 3.E below. You            further acknowledge that all Inventions which are made by you (solely or jointly with others) within            the scope of and during the period of your employment with Sonos and which are protectable by            copyright are “works made for hire,” as that term is defined in the United States Copyright Act and            other intellectual property laws, and you hereby do assign and transfer and, to the extent any such            assignment cannot be made at present, will assign and transfer, to Sonos and its successors and            assigns, without further compensation, all of your right, title and interest in all such Inventions,            and all related patents, patent applications, trademarks and trademark applications, copyrights            and copyright applications, and other intellectual property rights in all countries and territories            worldwide and under any international conventions (collectively, “Intellectual Property Rights”).            You  understand  and  agree  that  the  decision  whether  or  not  to  commercialize  or  market  any            invention developed by you solely or jointly with others is within Sonos’ sole discretion and for            Sonos’ sole benefit and that no royalty will be due to you as a result  of  Sonos’  efforts  to            commercialize or market any such Invention. Further, you hereby waive all claims to any moral            rights or other special rights which you may have or accrue in any Inventions  or  Intellectual            Property Rights.                           C.    Maintenance of Records. You agree to keep and maintain adequate and            current written records of and documentation underlying all Inventions made by you (solely or            jointly with others) during the term of your employment with Sonos. The records will be in the form            of notes, sketches, drawings, and any other format that may be specified by Sonos. The records            will be available to and remain the sole property of Sonos at all times.                        D.    Patent  and  Copyright  Registrations.  You  agree  to  assist  Sonos,  or  its            designee, at Sonos’ expense, in every proper way to secure Sonos’ rights in the Inventions and            any copyrights, patents, mask work rights or other intellectual property rights relating thereto in            any and all countries, including the disclosure to Sonos of all pertinent information and data with                                                  5 

 

DocuSign Envelope ID: 198F7EAC-55EF-4C48-B93C-0F9ED69036DE             respect thereto, the execution of all applications, specifications, oaths, assignments and all other            instruments which Sonos shall deem necessary in order to apply for and obtain such rights and            in  order  to  assign  and  convey  to  Sonos,  its  successors,  assigns,  and  nominees the  sole  and            exclusive rights, title and interest in and to such Inventions or Intellectual Property Rights relating            thereto. You further agree that your obligation to execute or cause to be executed, when it is in            your power to do so, any such instrument or papers shall continue after the termination of this            Employee Agreement and/or your employment with Sonos. If Sonos is unable because of your            mental or physical incapacity or for any other reason to secure your signature to apply for or to            pursue any application for any United States or foreign patents or copyright registrations covering            Inventions assigned to Sonos as above, then you hereby irrevocably designate and appoint Sonos            and its duly authorized officers and agents as your agent and attorney in fact, to act for and in            your behalf  and  stead  to  execute  and  file  any  such  applications  and  to  do  all  other lawfully            permitted acts to further the prosecution and issuance of letters patent or copyright registrations            thereon with the same legal force and effect as if executed by you.                           E.    Exception  to  Assignments.  You  understand  that  the  provisions  of  this            Employee Agreement requiring assignment of Inventions to Sonos do not apply to any invention            that you developed entirely on my own time without using Sonos’ equipment, supplies, facilities,            or trade secrets, except for those inventions that either (i) relate to Sonos actual or anticipated            business, research or development, or (ii) result from or are connected with work performed by            you for Sonos. Specifically, you understand that my agreement to assign Inventions does not            apply to any invention which qualifies fully for protection from assignment to Sonos under the            provisions  of  California Labor  Code  Section  2870  or Washington  state law  as  set forth  in the            Revised Code of Washington 49.44.140 (the text of which are attached hereto as Exhibit A) or            any other similar applicable federal or state law related to the assignment of employee inventions            (collectively, the “Excluded Inventions Laws”). You will advise Sonos promptly in writing of any            inventions  that  You  believe  are  excluded  from  assignment  by  virtue  of meeting  the  criteria  in            California Labor Code Section 2870, the Revised Code of Washington 49.44.140 or any other            applicable Excluded Inventions Law and are not otherwise disclosed on the List of Inventions.                           F.    Obligation  to  Keep  Sonos  Informed  About  Post-Employment            Inventions/Intellectual Property Rights. For the six-month period following the termination of my            employment from Sonos, you agree that you will promptly disclose to Sonos fully and in writing            all  inventions,  original  works  of  authorship,  developments,  concepts,  improvements,  designs,            discoveries, ideas, algorithms, databases, computer programs, formulae, techniques, graphics or            images, audio or visual works, inventions authored, conceived or reduced to practice by me, either            alone  or  jointly  with  others  (the “Post-Employment  Inventions”)  and/or  all  United  States  or            foreign patent, copyright or other intellectual property right(s) filed by you (solely or with others)            and/or on my behalf (the “Post-Employment Intellectual Property Rights”) if such intellectual            property or Intellectual Property Rights related to products or projects on which you worked or to            which you had access during your Sonos employment. You agree that Sonos will have the right            to request information from you related to the Post-Employment Inventions or Post-Employment            Intellectual  Property  Rights  (including,  information  related  to  the  date  of  conception  and/or            implementation) for  purposes  of  determining  whether  the  Post-Employment Invention  at  issue            uses, is derived from, and/or otherwise misappropriates Sonos’ trade secrets and/or Confidential            Information and/or was developed during your Sonos employment and/or using Sonos’ property.            Nothing herein limits Sonos’ right to pursue all remedies to protect its intellectual property. Sonos            will keep in confidence and will not use for any purpose or disclose to third parties without your            consent any confidential information disclosed in writing to Sonos pursuant to this subparagraph.                           G.    Use of Image of Likeness. You authorize Sonos to use your name, picture,            signature,  voice,  image  and/or  likeness  during  your  employment  by  Sonos and  at  any  time            thereafter. Further, you waive all claims you may now have or may ever have against Sonos and                                                 6 

 

DocuSign Envelope ID: 198F7EAC-55EF-4C48-B93C-0F9ED69036DE             its officers, directors, employees and agents arising out of Sonos’ use, adaptation, reproduction,            modification,  distribution,  exhibition  or  other  commercial  exploitation  of  your  name,  picture,            signature,  voice,  image  and/or  likeness,  including,  but  not  limited  to  right  of  privacy,  right of            publicity and celebrity, use of voice, name or likeness and copyright infringement.                           4. Conflicts.                        A.    Conflicting  Employment. You  agree  that,  during  the  term  of your            employment with Sonos, you will not engage in any other employment, occupation or consulting            directly related to the business in which Sonos is now involved or becomes involved during the            term  of  your  employment,  nor  will  you  engage  in  any  other  activities  that  conflict  with your            obligations to Sonos.                           B.    Conflicting Obligations. By accepting your offer of employment, you represent            and warrant that your employment with Sonos and the performance by you of your duties as a Sonos            employee do not and will not breach or contravene: (i) any agreement or contract (including, without            limitation, any employment or consulting agreement, any agreement not to compete, or any            confidentiality or nondisclosure agreement) to which you are a party; or (ii) any obligation you may            otherwise have under applicable law to any former employer or to any person to whom you have            provided consulting services. You further represent and warrant that you have disclosed to Sonos the            details of all agreements, contracts and/or obligations relevant to clauses (i) and (ii) above.                           5. Returning Company Documents. You agree that, at the time of leaving the            employ of Sonos (or earlier, if requested), You will deliver to Sonos (and will not keep in my            possession, recreate or deliver to anyone else) any and all devices, records, data, notes, reports,            proposals, lists, correspondence, emails, specifications, drawings blueprints, sketches, materials,            equipment, other documents or property, or reproductions of any aforementioned items (including            electronic copies) developed by you pursuant to you employment with Sonos or otherwise belonging            to Sonos, its successors or assigns, including, without limitation, those records maintained pursuant            to paragraph 3.C.                           6. Notification of New Employer.  If you leave the employ of Sonos, you hereby            grant consent to notification by Sonos to your new employer about your obligations under this            Employee Agreement. If you were offered employment or the opportunity to enter into any business            venture as owner, partner, consultant or other capacity, you agree to inform your potential employer,            partner, co-owner and/or others involved managing the business with which you have an opportunity            to be associated of your obligations under this Employee Agreement and also agree to provide such            person or persons with a copy of this Employee Agreement (if so requested).                           7. No Expectation of Privacy. You acknowledge and agree that you do not have any            privacy interest in any items or material stored on Sonos’ premises or property, including without            limitation any files or data stored on Sonos’ computers, network and/or phones (including cell            phones), such as email, pictures or documents, whether in an active state, or obtained from restored            backups, and regardless of whether such files or data had previously been deleted by me. Without            limiting the foregoing, you further acknowledge that the full contents of you email and stored data may            be made known to or disclosed to other Sonos employees as required in the normal course of Sonos’            operations, both during and after your employment with Sonos. You authorize Sonos to monitor            communications made by you using Sonos’ property, facilities and resources, and the right to search            and enter all areas of Sonos’ premises, including any locked desks or drawers. You also authorize            Sonos to search any of your personal computers, personal cell phones or other electronic or storage            devices to the extent such devices are used by you: (i) to store or transmit Confidential Information; or            (ii) to discharge your duties or conduct business on behalf of Sonos.                                                     7 

 

DocuSign Envelope ID: 198F7EAC-55EF-4C48-B93C-0F9ED69036DE                         8. Remedies.                        A.    Equitable  Relief. You  understand  that  if  You  violate  the terms  of  this            Employee Agreement while You are employed by Sonos, you will be subject to disciplinary action            up to and including discharge from your employment. You further agree and acknowledge that            the non-disclosure and assignment of Invention covenants and undertakings in Sections 2 and 3            of  this  Employee  Agreement relate to  matters that  are  of  a  special,  unique  and  extraordinary            character and that a violation or breach of any of the restrictive covenants or assignment clauses            in this Employee Agreement will cause irreparable harm to Sonos, the full amount of which will            be impossible to estimate or determine and which cannot be adequately compensated. For that            reason, you agree that if you breach any of your confidentiality or assignment obligations under            this Employee Agreement, monetary compensation shall be inadequate to compensate Sonos for            such  breach.  You  therefore  agree  that,  in  the  event  of  a  breach  or  threatened  breach  of  the            confidentiality and/or assignment of Invention obligations by you, Sonos is entitled, in addition to            any of the other rights, remedies or damages available to Sonos, to a temporary restraining order,            a preliminary injunction and a permanent injunction in order to prevent or to restrain any breach            or threatened breach by you or any of your partners, co-venturers, employers, employees, agents,            representatives or any other persons directly or indirectly acting for you. Sonos may apply for            such injunctive relief in any court of competent jurisdiction without the necessity of posting any            bond or other security.                           B.    Reimbursement. You  agree  to  reimburse  Sonos  for  any  costs  resulting            from or related to any claims, liabilities and damages arising from any claim brought against Sonos            by a former employer(s) alleging that you are in breach of any legal obligations that you owe to            any former employer(s). If such a claim is started against Sonos then Sonos shall have the option,            exercisable in its sole discretion, to terminate your employment immediately, consistent with the            at-will nature of our relationship.                           C.    Attorneys’ Fees. If you breach this Employee Agreement, you agree that            Sonos, if the prevailing party, shall be entitled to recover its reasonable attorneys’ fees and costs,            to the extent such recovery is not prohibited by law. This remedy shall be in addition to, and not            as an alternative to, any other remedies at law or in equity available to Sonos.                           9. General Provisions.                        A.    Governing  Law. This  Employee  Agreement  shall  be  governed  by  and            construed and interpreted in accordance with the laws of the state in which you are employed by            Sonos, without regard to its conflict of laws.                           B.    Arbitration Agreement/Venue/Jury Waiver. You acknowledge that you have            executed an Arbitration Agreement contemporaneously with this Employee Agreement and agree            that the Arbitration Agreement shall govern whether a particular dispute must be submitted to            arbitration  or  may  proceed  in  the  courts.  As set  forth  in  the  Arbitration  Agreement  and  as            reaffirmed  herein,  Sonos  and  you  agree  that  any  claims  for  equitable  relief  or  declaratory            judgment by either Sonos or you arising out of the non-disclosure or assignment of Inventions            provisions set forth in Sections 2 and 3 of this Employee Agreement are expressly excluded from            the agreement to arbitrate certain claims as provided in the Arbitration Agreement. Sonos and            you further agree that any such causes of action shall be commenced and maintained in any state            or federal court located within the state in which you are employed by Sonos and you hereby            submit to the personal jurisdiction of such court. Each party hereto hereby irrevocably waives any            and  all  right to trial  by jury  in  any  legal  proceeding  arising  out  of or  relating  to this  employee            agreement or the transactions contemplated hereby.                           C.    Entire  Agreement.  This  Employee  Agreement  sets  forth  the  entire            agreement and understanding between Sonos and you relating to the subject matter herein and                                                 8 

 

DocuSign Envelope ID: 198F7EAC-55EF-4C48-B93C-0F9ED69036DE             supersedes all prior discussions or representations between us including, but not limited to, any            representations made during your interview(s) or offer negotiations, whether written or oral, except            for the Arbitration Agreement. No modification of or amendment to this Employee Agreement, nor            any waiver of any rights under this Employee Agreement, will be effective unless in writing signed            by an authorized representative of Sonos and you.                           D.    Severability/Modification.  If  any  of  the  provisions  of  this  Employee            Agreement shall be invalid or unenforceable, such invalidity or unenforceability shall not invalidate            or render unenforceable the remainder of this Employee Agreement, but rather the remainder of            this  Employee  Agreement  shall  be  construed  as  if  not  containing  the  particular  invalid  or            unenforceable  provision  or  provisions,  and  the  rights  and  obligations  of  the  parties  shall  be            enforced  accordingly.  Moreover,  if  one  or  more  of  the  provisions  contained  in  this  Employee            Agreement shall for any reason be held to be excessively broad as to scope, activity, subject or            otherwise so as to be unenforceable at law, such provision or provisions shall be construed by            the appropriate judicial body or arbitrator by limiting, revising or reducing it or them, so as to be            enforceable to the maximum extent compatible with the applicable law as it shall then appear.            The parties hereby agree that the language of all parts of this Employee 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.                        E.    Successors and Assigns. This Employee Agreement will be binding upon            your heirs, executors, administrators and other legal representatives. Sonos shall have the right            to assign this Employee Agreement to its successors and assigns without consent by you, and all            covenants and agreements hereunder shall ensure to the benefit of and are enforceable by said            successors and assigns. You do not have the right to assign this Agreement.                           F.    No Abandonment Regardless of Material Change. You agree that Sonos            may modify or change your position, duties, compensation, benefits, responsibilities, and/or any            other terms and conditions of employment as it deems appropriate in its sole discretion. Any such            changes to the terms and conditions of my employment (whether material or immaterial) shall not            alter or modify your obligations as set forth herein and shall not be construed as an intent or            agreement to abandon this agreement, to create a new employment relationship, and/or to relieve            you of your obligations hereunder (unless such agreement or intent is expressly and specifically            set forth in writing by Sonos). You acknowledge and agree that this Employment Agreement shall            remain  in  full  force  and  effect  regardless  of  any  change  in  the  terms  and  conditions  of  my            employment (whether material or immaterial).                           G.    Waiver. Sonos  may  waive  any  breach  by  you  of  any  provision  of  this            Employment  Agreement  expressly  in  writing  in its  sole  discretion.  Any  waiver  by  Sonos  of  a            breach of any provision of this Employment Agreement shall not operate or be construed as a            waiver of any subsequent breach of such provision or any other provision hereof.                        H.    Survival.  You  understand  and  agree  that  your  obligations  under  this            Employment Agreement shall survive the termination of this Employment Agreement and/or your            employment regardless of the manner of such termination and shall be binding upon your heirs,            executors, administrators and legal representatives.                           10. Acknowledgment/Independent Legal Advice. You acknowledge that you            have carefully read and considered the provisions of this Employment Agreement. You further            acknowledge that you have had the opportunity to seek legal advice, and have either obtained            such advice with regard to this Employee Agreement or have chosen not to do so. You agree            that the restrictions and covenants set forth in this Employee Agreement are fair and reasonable            and are necessary for the protection of the interests of Sonos and its business, officers,            directors and employees.                                                  9 

 

DocuSign Envelope ID: 198F7EAC-55EF-4C48-B93C-0F9ED69036DE                Accepted and agreed:               Edward Peter Lazarus                       Sonos, Inc.                  Employee SIGNATURE                                      &#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;                             Anna Fraser                                                       Chief People Officer            SIGNATURE DATE                                                   10 

 

DocuSign Envelope ID: 198F7EAC-55EF-4C48-B93C-0F9ED69036DE                                              Addendum B                                          Arbitration Agreement             This Arbitration Agreement (“Arbitration Agreement”) is entered into by and between Sonos,            Inc. and its affiliates and successors (referred to herein as the “Sonos”) and Edward Peter            Lazarus (referred to herein as “You”).               1.    Agreement to Arbitrate.                     a.    Mutual Agreement to Arbitrate Certain Claims/Issues. In consideration of Sonos’            offer of employment and/or continued employment to You and your acceptance of the same, You            and Sonos agree that any and all existing or future disputes or claims related to your employment            with Sonos (including, but not limited to, the termination of your employment with Sonos), except            those claims and disputes identified below in subparagraph (b) of this Section, will be resolved by            final and binding arbitration and that no other forum for dispute resolution will be available to either            party. Except as set forth in Section 1(b) or otherwise prohibited by applicable law, claims subject            to arbitration include, but are not limited to:                           (i)   Claims related to your employment, change in employment status, and/or            termination of employment with Sonos;                           (ii)  Claims  under  any  California,  Massachusetts,  New  York, Washington,  or            any other state, federal and/or municipal statute, regulation, ordinance, law and/or executive order            (as  amended) relating  to  employment,  discrimination  (including  discrimination  on  the  basis  of            race, color, religion, creed, sex, sex harassment, sexual orientation, age, gender identity, marital            status, familial status, pregnancy, national origin, ancestry, alienage, handicap, disability, present            or past history of mental disorders or physical disability, veteran’s status, candidacy for or activity            in  a general assembly  or  other  public  office,  or constitutionally  protected  acts  of  speech), fair            employment practices, or other terms and conditions of employment, including, but not limited to,            the Age Discrimination in Employment Act and Older Workers Benefit Protection Act (29 U.S.C.            § 621 et seq.), the Civil Rights Acts of 1866 and 1871, Title VII of the Civil Rights Act of 1964 and            the Civil Rights Act of 1991 (42 U.S.C. § 2000e et seq.), the Equal Pay Act (29 U.S.C. § 201 et            seq.), the Americans With Disabilities Act (42 U.S.C. § 12101 et seq.), the Immigration Reform            and  Control  Act  (8  U.S.C.  §  1101  et  seq.),  the  Uniformed  Services  Employment  and            Reemployment  Rights  Act  (“USERRA”);  the  California  Fair  Employment and  Housing  Act, the            Massachusetts  Fair  Employment  Practices  Statute  (M.G.L.  c.  151B  §  1  et  seq.),  the            Massachusetts Equal Rights Act (M.G.L. c. 93 §102), the Massachusetts Civil Rights Act (M.G.L.            c. 12 §§ 11H & 11I), the Massachusetts Privacy Statute (M.G.L. c. 214 § 1B), the Massachusetts            Sexual  Harassment  Statute  (M.G.L.  c.  214  §  1C),  the  Massachusetts  law  against  retaliation            (M.G.L. c. 19C, §11), the New York State Human Rights Law (N.Y. Exec. Law § 290 et seq); the            New York City Human Rights Law (N.Y.C. Admin. Code § 8–101 et seq.); the New York Equal            Rights Law (N.Y. Civ. Rights Law §§ 40 to 45); the Washington Law Against Discrimination (RCW            Chapter 49.60); and the Seattle Fair Employment Practices Ordinance (Seattle Municipal Code            14.04);                           (iii) Claims  under  any  California,  Massachusetts,  New  York, Washington,  or            any other state, federal and/or municipal statute, regulation, ordinance, law and/or executive order            (as amended) relating to leaves of absence, layoffs or reductions-in-force, wages, hours, or other            terms and conditions of employment, including, but not limited to, the National Labor Relations            Act (29 U.S.C. § 151 et seq.), the Family and Medical Leave Act (29 U.S.C. § 2601 et seq.), the            Employee Retirement Income Security Act of 1974 (29 U.S.C. § 1000 et seq.), COBRA (29 U.S.C.                                                 11 

 

DocuSign Envelope ID: 198F7EAC-55EF-4C48-B93C-0F9ED69036DE             § 1161 et seq.), the Fair Labor Standards Act (29 U.S.C. § 201 et seq.), the Occupational Safety            and Health Act (29 U.S.C. § 651 et seq.), the Worker Adjustment and Retraining Notification Act            (29 U.S.C. § 2101 et seq.), the California Family Rights Act (Cal. Gov. Code §§ 12945.1- 12945.2),            the California Pregnancy Disability Leave Act (Cal. Gov. Code § 12945), the California School            Activities Act (Cal. Labor Code § 230.8), the California Healthy Workplace Health Family Act (Cal.            Labor  Code  §§  245-249), the  Cal-WARN  Act  (Cal.  Labor  Code  §§  1400-1408),  the  California            wage payment laws (Cal. Labor Code §§ 200 through 244); the California Overtime Law (Cal.            Labor Code §§ 500-552), the California Minimum Wage Law (Cal. Labor Code § 1182.12), the            Massachusetts Small Necessities Leave Act (M.G.L. c. 149, §52D), the Massachusetts Parental            Leave Law (M.G.L. c. 149, §105D), the Massachusetts Wage Act (M.G.L.            c. 149 § 148 et. seq.), the Massachusetts Minimum Fair Wages Act (M.G.L. c. 151 § 1 et. seq.),            the Massachusetts Equal Pay Act (M.G.L. c. 149 § 105A), the Massachusetts Paid Sick Leave            law (M.G.L. c. 149, §§ 148C; 148D); Article 6 of the New York Labor Law (N.Y. Lab. Law §§ 190-            199-A), including the New York Wage Payment Act (N.Y. Lab. Law § 190, et seq.); the New York            State Minimum Wage Law; all New York Labor Standards; all New York Wage and Hour Laws;            the  Washington  Payment  of  Wages  Law (RCW  49.48.010  and  49.52.050); the  Washington            Overtime Law (RCW 49.46.130); the Seattle Minimum Wage Ordinance; the Washington State            Family Care Act (RCW 49.12.265 et seq); and the Washington Family Leave Act (RCW 49.78);                           (iv)  Claims  under  any  California,  Massachusetts,  New  York, Washington,  or            any  other  state,  federal  and/or  any  other  common  law  theory,  including,  without  limitation,            wrongful  discharge,  breach  of  express  or  implied  contract,  promissory  estoppel,  unjust            enrichment,  breach  of  a  covenant  of  good  faith  and  fair  dealing,  violation  of  public  policy,            defamation, interference with contractual relations, intentional or negligent infliction of emotional            distress,  invasion  of  privacy,  misrepresentation,  deceit,  fraud,  negligence,  or  any  claim  to            attorneys’ fees under any applicable statute or common law theory of recovery;                           (v)   Claims  under  any  California,  Massachusetts,  New  York, Washington,  or            any other state, federal and/or municipal statute, regulation, ordinance, law or executive order (as            amended) relating to whistleblower protections, violation of public policy, or any other form of            retaliation or wrongful termination, including but not limited to the Sarbanes-Oxley Act of 2002;            the New York Whistleblower & Retaliation Laws (N.Y. Lab. Law §§ 740, 741, and 215); the New            York Nondiscrimination for Legal Actions Laws;                           (vi)  Claims  under  any  Sonos’  compensation,  benefit,  stock  option, incentive            compensation, bonus, restricted stock, and/or equity plan, program, policy, practice or agreement,            or any other type of employment-related agreement, contract or policy; and/or                           (vii) Any other claim arising under other state, federal, municipal or other local            law not specifically itemized herein.               The  parties  also  agree  that  the  arbitrator  shall  have  the  power  and  authority  to  interpret  this            Agreement and to decide whether a certain dispute or claim is subject to arbitration under this            Agreement. This power and authority to determine arbitrability is hereby expressly delegated to            the appointed arbitrator and not to any judge or court. The parties agree that this agreement to            arbitrate also covers claims brought by You against Sonos’ agents, officers or other employees            for actions they may have taken in connection with your employment.                       b. Claims Excluded from Agreement to Arbitrate/Choice of Venue for Such            Claims: The agreement to arbitrate in Section 1(a) does not apply to claims for benefits under            state unemployment insurance or workers compensation programs. In addition, this Agreement            does not prohibit You from filing a claim or participating in an investigation, hearing or proceeding            with a local, state or federal administrative agency, including the EEOC, the Department of Labor,                                                  12 

 

DocuSign Envelope ID: 198F7EAC-55EF-4C48-B93C-0F9ED69036DE             the National Labor Relations Board, the Massachusetts Commission Against Discrimination, the            California  Department  of  Fair  Employment  and  Housing,  the  New  York  City  Commission  on            Human  Rights,  the  New  York  State  Division  of  Human  Rights,  the Washington  State  Human            Rights  Commission  and/or  any  other  federal  or  state  administrative  agency.  (However,  this            Agreement does preclude You from pursuing any such claim in court).               In  addition,  this  agreement  to  arbitrate  expressly  excludes  and  does  not  apply  to  claims  for            equitable  relief  or  declaratory  judgment  by  either  You  or  Sonos  arising  out  of:  (i)  the  non-            disclosure  or  assignment  of  inventions  provisions  set  forth  in  Sections  2  and  3  of  the  At Will            Employment,  Confidential  Information,  and  Invention  Assignment  Agreement  (the  “Employee            Agreement”); (ii) state or federal trade secret laws; and/or (iii) state or federal intellectual property            laws. You understand and agree that violations of the non-disclosure or assignment of inventions            provisions of the Employee Agreement, state or federal trade secret laws and/or state or federal            intellectual property laws could cause irreparable and unique injury and that money damages            would not provide an adequate remedy for such injury. Accordingly, You and Sonos agree that            the parties could not effectively pursue all available rights and remedies (including equitable relief)            for such claims in an arbitration proceeding and that such claims must therefore be excluded from            the  agreement  to arbitrate.  All  claims  excluded  from  arbitration  under  this  Section  shall  be            commenced and maintained in any state or federal court located within the state in which You are            employed by Sonos.               2.    No Class Actions or Arbitrations. You and Sonos agree that the arbitrator may only            hear the parties’ individual claims and will not have the authority: (i) to consolidate the claims of            other employees; (ii) to fashion a proceeding as a class or collective action; and/or (iii) to award            relief to a group or class of employees in one arbitration proceeding. In other words, You must            pursue all claims subject to arbitration as an individual and may not pursue such claims            as part of a class. You represent, agree, and acknowledge that You will be able to effectively            pursue your rights and any and all claims against Sonos in an individual arbitration according to            the terms of this Arbitration Agreement.               3.    Procedure, Deadline for Filing Of Claims Subject to Agreement to Arbitrate, Rules            of  Arbitration, Confidentiality. You  and  Sonos  agree  that  arbitration  proceedings  shall  be            conducted by the American Arbitration Association (“AAA”) pursuant to the Federal Arbitration            Act,  and  in  accordance  with  the  Employment  Arbitration  Rules  and  Mediation  Procedures,            (available on-line at www.adr.org), which are incorporated herein by reference.               The parties agree that any and all claims subject to arbitration under this Agreement must be            initiated with the AAA within the statute of limitations period prescribed for such claims under            applicable  law.  As  set  forth  in  Rule  4  of  the  Employment  Arbitration  Rules  and  Mediation            Procedures, a party may initiate arbitration by filing a Demand for Arbitration in writing with the            AAA.  If  You file  such  a  Demand,  please  also  send  a  copy  of  to  Sonos’  Legal  Department,            Attention: General Counsel. Alternatively, the parties may submit a joint request for arbitration in            writing. No demand for arbitration may be made after the date when the institution of legal or            equitable proceedings based on such claim or dispute would be barred by the applicable statute            of limitation.            The parties agree that a neutral arbitrator will be selected in accordance with the Employment            Arbitration Rules and Mediation Procedures and further agree that the arbitrator shall have the            power  to  decide  any  motions  brought  by  any  party  to  the  arbitration,  including  motions  for            summary judgment or motions to dismiss prior to any arbitration hearing. The parties also agree            that the arbitrator shall have the power to award any remedies, including attorney’s fees and costs,            available under applicable law. The parties agree that any decision of the arbitrator must be in            writing. The arbitrator’s decision shall be final and binding on both You and Sonos and shall be                                                  13 

 

DocuSign Envelope ID: 198F7EAC-55EF-4C48-B93C-0F9ED69036DE             enforceable by any court having proper jurisdiction. The arbitrator shall maintain the confidentiality            of  the  arbitration  and  shall  have  the  authority  to  make  appropriate  rulings  to  safeguard  that            confidentiality unless the parties agree otherwise or the law provides to the contrary.               4.    Governing  Law/Location  of  Arbitration. This  Agreement  shall  be  governed  by  and            construed and interpreted in accordance with the Federal Arbitration Act, 9 U.S.C. §§ 1-16. You            and Sonos agree that any and all arbitrations between the parties compelled and contemplated            by this Agreement shall be held within the state in which You are employed by Sonos.               5.    Cost  of  Arbitration. The  parties  agree  that  Sonos  shall  pay  for  any  administrative  or            hearing fees and/or costs charged by the arbitrator or the AAA.               6.     Attorney’s Fees. You and Sonos each shall bear your own attorneys’ fees incurred in            connection with the arbitration, and the arbitrator will not have the authority to order attorneys’            fees unless an agreement between You and Sonos or a statute or law at issue in the dispute            authorizes the award of attorneys’ fees to the prevailing party, in which case the arbitrator shall            have the authority to make an award of attorneys’ fees as permitted under the applicable law or            agreement.               7.    Jury  Waiver. YOU  AND  SONOS  HEREBY  IRREVOCABLY  WAIVE  ANY  AND  ALL            RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING            IN ANY WAY TO YOUR EMPLOYMENT.               8.    Consideration to Support Agreement. You and Sonos agree that there is sufficient and            adequate consideration to support your mutual obligations under this Agreement. Specifically,            You acknowledge that You are offered employment or continued employment in consideration of            your promise to arbitrate certain claims related to your employment as set forth in this Agreement.            In  addition,  the  mutual  promises  of  Sonos  and  You  to  resolve  certain  claims  by  arbitration  in            accordance  with  the  provisions  of  this  Arbitration  Agreement,  rather  than  through  the  courts,            provide consideration for this Agreement.               9.    Acknowledgment  of  Waiver  of  Rights. You  understand  and  acknowledge  that  by            signing  this  agreement,  you  are  waiving  the  following  rights:  (i)  your  right  to  pursue  class  or            collective action against Sonos in any forum, whether through the courts or through arbitration;            (ii) your right to a trial or hearing before a court of any and all present or future claims against            Sonos subject to arbitration under this arbitration agreement; and (iii) any right to trial by jury for            any and all present or future claims related to your employment.               10.   Voluntary  Agreement. You  represent  that  You  have  read  the  terms  of  the  foregoing            agreement,  that  You  fully  understand  its  terms,  and  are  voluntarily  executing  the  same.  You            acknowledge  that  You  have  been  advised  to  consult  with  an  attorney  before  signing  this            agreement and that You have had a sufficient opportunity to do so.            11.   Complete  Agreement. This  Arbitration  Agreement  contains  the  complete  agreement            between  Sonos  and  You  regarding  the  subject  of  arbitration  and  dispute  resolution  and            supersedes  any  and  all  prior  written,  oral  or  other  types  of  representations  and  agreements            between Sonos and You, if any, related to the subject of dispute resolution of any kind, except for            the Employee Agreement.               12.   Severability. If any provision of this Agreement, or part thereof, is held invalid, void or            voidable as against public policy or otherwise, the invalidity shall not affect other provisions, or            parts thereof, which may be given effect without the invalid provision or part. To this extent, the            provisions,  and  parts  thereof,  of  this  Arbitration  Agreement  are  declared  to  be  severable.                                                  14 

 

DocuSign Envelope ID: 198F7EAC-55EF-4C48-B93C-0F9ED69036DE             Moreover, if one or more of the provisions contained in this Arbitration Agreement shall for any            reason be held to be unenforceable at law, such provision or provisions shall be construed by the            appropriate judicial body by limiting, revising or reducing it or them, so as to be enforceable to the            maximum extent compatible with the applicable law as it shall then appear. The parties hereby            agree that the language of all parts of this Arbitration 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.               13.   Modification. This  Arbitration  Agreement  may  be  modified  only  in  a writing,  which            expressly refers to this Agreement and You by full name and which is signed by You and an            authorized representative of Sonos.               14.   Successors and Assigns. This Arbitration Agreement will be binding upon Your heirs,            executors, administrators and other legal representatives. Sonos shall have the right to assign            this  Arbitration  Agreement  to  its  successors  and  assigns  without  consent  by  You,  and  all            covenants and agreements hereunder shall ensure to the benefit of and are enforceable by said            successors and assigns. You do not have the right to assign this Arbitration Agreement.               You represent that you have read the foregoing Arbitration Agreement, fully understand            its  terms  and  conditions,  and  are  voluntarily  executing  the  same.  In  entering  into  this            Arbitration  Agreement,  you  did  not  rely  on  any  representation,  promise  or  inducement            made by Sonos with the exception of the terms and conditions set forth in this document.               Accepted and agreed:               Edward Peter Lazarus                        Sonos, Inc.                  Employee SIGNATURE                                 &#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;&#0;                                Anna Fraser                                                        Chief People Officer            SIGNATURE DATE                                                   15 

 

DocuSign Envelope ID: 198F7EAC-55EF-4C48-B93C-0F9ED69036DE                                          Relocation Agreement               This Relocation Agreement (the “Agreement”) is entered into on June 15, 2018 by and between            Edward Peter Lazarus and Sonos, Inc. (the “Company”).               WHEREAS, Employee has been offered employment by the Company in its Santa Barbara            office (the “Designated Office”);               WHEREAS, the Company has agreed to provide financial assistance to Employee with respect            to certain relocation expenses, subject to the terms of this Agreement and as set forth in the            attached Relocation Policy (the “Relocation Policy”);               WHEREAS, Employee acknowledges and agrees that he/she will repay the Company for the            relocation expenses paid by the Company if he/she terminates his/her employment with the            Company for any reason on or before the one-year anniversary of the date on which Employee            commences his/her employment with Sonos.               NOW THEREFORE, for good and valuable consideration, Employee and the Company agree            as follows:               1. Relocation Expenses. Subject to the terms and conditions set forth herein and provided            Employee executes and returns this Agreement to the People Department on or before the start            date of employment, the Company agrees to pay for certain fees, expenses, and costs which            are incurred by Employee in connection with his/her relocation up to, but not to exceed the            gross sum of the amount set forth in the offer letter presented to the Employee, in accordance            with the attached Relocation Policy (the “Relocation Expenses”).               2. Repayment Obligation Upon Resignation of Employment by Employee. Employee            acknowledges and agrees that, if Employee resigns his/her employment for any reason at any            time on or prior to the one year anniversary of the date Employee commences his/her            employment at the Designated Office, he/she will repay the Relocation Expenses paid by the            Company within 30 days of the resignation notice. Employee agrees that he/she shall pay all of            the payments owed under this Section in cash or by certified check on or before the date of            termination from employment.               3. Termination By The Company. If the Company terminates Employee’s at-will employment for            any reason, at any time on or prior to the one-year anniversary of the date Employee            commences his/her employment, the Employee will not be obligated to repay the Relocation            Expenses.               4. Authorization To Deduct From Wages. Employee further agrees that, if Employee fails to pay            the Company the full amount of the Relocation Expenses on or before his/her termination date            in accordance with his/her obligations hereunder, the Company is hereby authorized, to the            extent permitted by local law, to deduct all amounts owed to the Company under this Agreement            from any and all payments due to him/her by the Company at the time of termination, including            without limitation, any unreimbursed business expenses, accrued but unused vacation pay,            his/her final wages, earned commissions, and bonus payments. To this end, Employee agrees            to execute a form, to be prepared by the Company, authorizing the Company to withhold the            specific amount that is due.            5. Complete Agreement; Miscellaneous. This Agreement and the attached Relocation Policy,            which is incorporated herein by reference, set forth the complete agreement between Employee            and the Company with respect to the payment of any Relocation Expenses. Employee agrees                                                  16 

 

DocuSign Envelope ID: 198F7EAC-55EF-4C48-B93C-0F9ED69036DE             that each provision and the subparts of each provision in this Agreement shall be treated as a            separate and independent clause, and the unenforceability of any one clause shall in no way            impair the enforceability of any of the other clauses of this Agreement. In the event of any            dispute, this Agreement will be construed as a whole, will be interpreted in accordance with its            fair meaning, and will not be construed strictly for or against either Employee or the Company.            This Agreement may not be changed, amended, modified, altered or rescinded except upon the            express written consent of both Employee and an authorized Company officer. Any waiver of            any provision of this agreement by the Company shall not constitute a waiver of any other            provision of this Agreement unless the Company expressly so indicates otherwise.               6. No Modification of At-Will Relationship. Employee and the Company agree that this            Agreement does not in any way modify or limit the at-will nature of his/her employment by the            Company. Nothing in this Agreement should be taken as a guarantee of continued employment,            a specific term of employment and/or a contract of employment and at all times Employee will            be expected to meet the Company’s performance standards. Nothing in this Agreement should            be construed to be a guarantee of continued employment for one year.               7. Legal Fees. Should the Company prevail in any action against Employee to enforce the terms            of this Agreement, Employee acknowledges and agrees that he/she shall be responsible for the            payment of the Company’s legal fees and costs, including reasonable attorney’s fees.               8. Consent. Employee represents that he/she has read the foregoing Agreement, that            he/she fully understands the terms and conditions of the Agreement and is voluntarily            executing the same.               IN WITNESS WHEREOF, the undersigned has executed this Agreement as a sealed instrument            as of the date written below               ACCEPTED AND AGREED:               Edward Peter Lazarus                       Sonos, Inc.                  Employee SIGNATURE                                                                       Anna Fraser                                                       Chief People Officer            SIGNATURE DATE                                                   17 

 

DocuSign Envelope ID: 198F7EAC-55EF-4C48-B93C-0F9ED69036DE                                       LIST OF PRIOR INVENTIONS                               AND ORIGINAL WORKS OF AUTHORSHIP                                                                                                 Title                  Date                  Identifying Number or Brief                                                                           Description                                                                                                                                                                                                                                                                                       ACCEPTED AND AGREED:                 Edward Peter Lazarus                       Sonos, Inc.                 Employee SIGNATURE                                                                       Anna Fraser                                                      Chief People Officer           SIGNATURE DATE                                                   18 

 

DocuSign Envelope ID: 198F7EAC-55EF-4C48-B93C-0F9ED69036DE                                                Exhibit A                                   CALIFORNIA LABOR CODE SECTION 2870                       INVENTION ON OWN TIME-EXEMPTION FROM AGREEMENT                     (a)    Any provision in an employment agreement which provides that an employee            shall assign, or offer to assign, any of his or her rights in an invention to his or her employer            shall not apply to an invention that the employee developed entirely on his or her own time            without using the employer’s equipment, supplies, facilities, or trade secret information except            for those inventions that either:                           (1)   Relate at the time of conception or reduction to practice of the invention to            the employer’s business, or actual or demonstrably anticipated research or development of the            employer; or                           (2)    Result from any work performed by the employee for the employer.                     (b)   To the extent a provision in an employment agreement purports to require an            employee to assign an invention otherwise excluded from being required to be assigned under            subdivision (a), the provision is against the public policy of this state and is unenforceable.                                                   19

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