Document:

Exhibit 10.1

 

SETTLEMENT AND MUTUAL RELEASE AGREEMENT

 

This Settlement and Mutual
Release Agreement (this “Agreement”) dated and effective September 17, 2021 (except as otherwise expressly provided
below)(the “Effective Date”), is by and between 180 Life sciences
Corp., a Delaware corporation (“180”), and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., a
_________ professional corporation (“Mintz”), each a “Party” and collectively the “Parties.”

 

W I T N E S S E T H:

 

WHEREAS, Mintz provided legal services
to KBL Merger Corp. IV (“KBL”), a predecessor of the Company, pursuant to an engagement agreement entered into
in April 2019 (the “Engagement Agreement”), a copy of which is attached hereto as Exhibit A and provided
legal services to KBL between May 2019 and October 2020 and provided invoices to the Company which are attached hereto as Exhibit
B (the “Invoices”);

 

WHEREAS, pursuant to
the Engagement Agreement and Invoices, Mintz’s billings to KBL included charges on an hourly basis and based on a 30% premium and
its invoices total an aggregate of $1,454,239.57 before factoring any interest charges (the “Legal Fees”).

 

WHEREAS, 180 desires
to satisfy amounts owed and settle all claims which have been made or could have been made with respect to the foregoing Legal Fees to
Mintz through a cash payment of $800,000 to Mintz, and Mintz desires to accept such $800,000 cash payment, to settle all amounts due and
all claims which have been made or could have been made under the terms of the Engagement Agreement, and to provide for the Release set
forth below.

 

NOW THEREFORE, on the
stated premises and for and in consideration of the mutual covenants and agreements hereinafter set forth and the mutual benefits to the
Parties to be derived herefrom, the receipt, adequacy and sufficiency of which is hereby acknowledged and confessed, it is hereby agreed
as set forth below.

 

CERTAIN CAPITALIZED TERMS
USED BELOW ARE DEFINED IN SECTION 5 BELOW.

 

1. Settlement
of Obligation and Cash Payment.

 

1.1 In
full and complete consideration for all amounts owed by 180 to Mintz under the Engagement Agreement and Invoices, in connection with the
Legal Fees, or otherwise, 180 agrees to make a cash payment of $800,000 (the “Settlement Payment”) which will
be made by wire in accordance with the instructions attached as Schedule I hereto and which will be received by Mintz no later than ten
business days from the date of the execution of this Agreement. Receipt of the Settlement Payment by Mintz shall terminate any and all
obligations of 180 under the Engagement Agreement, Invoices or otherwise to Mintz, and shall further satisfy in full any and all amounts
owed by 180 to Mintz and all liabilities and obligations owed by 180 to Mintz, under the Engagement Agreement, Invoices or otherwise.
This Agreement is null and void and of no effect unless the Settlement Payment is timely made and
received pursuant to this Section 1.1.

 

    180 and Mintz
Settlement and Mutual Release Agreement
Page 1 of 10

     

    

 

2. Release.

 

2.1 Effective
as of the date of the Settlement Payment, in consideration for the Parties agreeing to enter into and to be bound by the terms and conditions
of this Agreement and for other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged
by the Parties, (i) 180 and (ii) Mintz (each for the purposes of this Section 2.1, a “Releasing Party”
and collectively the “Releasing Parties”), on behalf of each of such Releasing Party’s and their Affiliates,
officers, directors, employees, investors, shareholders, members, managers, administrators, predecessor and successor corporations, attorneys,
affiliates, agents, and assigns, hereby release, acquit and forever discharge each other, and their current, past and future Affiliates,
officers, directors, employees, investors, shareholders, members, managers, administrators, predecessor and successor entities, attorneys,
affiliates, agents, and assigns (each as applicable, the “Released Parties”) from all actions, causes of action,
suits, debts, dues, sums of money, Losses, obligations, duties, accounts, reckonings, covenants, controversies, agreements, promises,
variances, trespasses, damages, judgments, claims and demands, whether asserted or unasserted, whether known or unknown, suspected or
unsuspected, which they ever had or now have, upon or by reason of any manner, cause, causes or thing whatsoever, arising from the beginning
of time to the date of this Agreement, in law or equity and all rights, obligations, claims, demands, whether in contract, tort, or state
and/or federal law (each a “Claim”) arising from or relating to, or associated with the Engagement Agreement
(including, but not limited to amounts owed, obligations under, or conditions of, such Engagement Agreement), the Legal Fees, the Invoices
(and amounts owed thereunder), the services performed by Mintz (x) under the Engagement Agreement and/or (y) otherwise, on behalf
of, at the request of, or for, 180, and any other Claims whatsoever that any Releasing Party has against any other Releasing Party as
of the date of this Agreement, except for Claims relating to the failure of any non-Releasing Party to comply with the terms of this Agreement
and except for the Confidentiality Requirements (the “Release”).

 

2.2 The
Releasing Parties acknowledge that there is a risk that, after execution of this Agreement, they may discover, incur or suffer claims
that were unknown or unanticipated at the time of this Agreement, including, but not limited to, unknown or unanticipated claims that
arise from, are based upon, or are related to, any facts underlying the Release set forth above in Section 2.1 (collectively the
“Released Claims”), which had they been known or more fully understood, may have affected the Releasing Parties’
decisions to execute the Agreement as it currently is written. Each Releasing Party knowingly and expressly assumes the risk of these
unknown and unanticipated claims and agrees that this Agreement and the general releases set forth within it apply to all such unknown,
unanticipated or potential claims, except as set forth above in the definition of Release. Furthermore, it is the intention of the Releasing
Parties, by entering into this Agreement, to settle and release fully, finally and forever all Released Claims and any and all claims
that now exist, or may have at any time existed or shall come to exist in connection with the Released Claims, except as set forth above
in the definition of Release. In furtherance of the Releasing Parties’ intention, the releases given within this Agreement shall
be and remain in effect as full and complete releases and discharges of the Released Claims and of any related matters notwithstanding
the discovery by any Releasing Party of the existence of any additional or different claims or the facts relative to any such claims.
In furtherance of the Release, each Releasing Party waives any right such may have under any statutes and regulations, which state, in
substance:

 

‘‘A general release
does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which
if known by him may have materially affected his settlement with the debtor.’’

 

2.3 The
Releasing Parties are not aware of any claims not being released herein against them.

 

3. Covenant
Not to Sue.

 

3.1 Subject
to the excepted matters set forth herein (including, but not limited to the Confidentiality Requirements), the Releasing Parties agree
that they will forever refrain and forbear from commencing, instituting or prosecuting any lawsuit, action or other proceeding, in law,
equity or otherwise, against the Released Parties, in any way arising out of or relating to the Released Claims.

 

3.2 The
Releasing Parties each acknowledge and agree that monetary damages alone are inadequate to compensate the other Party (or their assigns)
for injury caused or threatened by a breach of this “Covenant Not to Sue” and that preliminary and permanent
injunctive relief restraining and prohibiting the prosecution of any action or proceeding brought or instituted in violation of this Covenant
Not to Sue is a necessary and appropriate remedy in the event of such a breach. Nothing contained in this Section, however, shall be interpreted
or construed to prohibit or in any way to limit the right of a non-breaching Released Party or of any of its assigns to obtain, in addition
to injunctive relief, an award of monetary damages against any person or entity breaching this Covenant Not to Sue and Agreement.

 

3.3 Notwithstanding
the foregoing, any action or proceeding brought for breach of or to interpret or enforce the terms of this Agreement is excepted from
each of the Covenants Not to Sue set forth above.

 

    180 and Mintz
Settlement and Mutual Release Agreement
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3.4 The
Releasing Parties understand, acknowledge and agree that the releases set forth above may be pleaded as a full and complete defense and
may be used as a basis for an injunction against any action, claim, suit or other proceeding which may be instituted, prosecuted or attempted
in breach of the provisions of such releases. Similarly, the Releasing Parties agree that no fact, event, circumstance, evidence or transaction
which could now be asserted or which may hereafter be discovered relating to the subject matter discussed above, shall affect in any manner
the final, absolute and unconditional nature of the release set forth above.

 

4. Mutual
Representations, Covenants and Warranties.

 

4.1 Each
of the Parties, for themselves and for the benefit of each of the other Parties hereto, represents, covenants and warranties that:

 

4.1.1 Such
Party has all requisite power and authority, corporate or otherwise, to execute and deliver this Agreement and to consummate the transactions
contemplated hereby and thereby. This Agreement constitutes the legal, valid and binding obligation of such Party enforceable against
such Party in accordance with its terms, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting creditors’ rights generally and general equitable principles;

 

4.1.2 The
execution and delivery by such Party and the consummation of the transactions contemplated hereby and thereby do not and shall not, by
the lapse of time, the giving of notice or otherwise: (i) constitute a violation of any law; or (ii) constitute a breach of any provision
contained in, or a default under, any of such Party’s Governing Documents, or any governmental approval, any writ, injunction, order,
judgment or decree of any governmental authority or any contract to which such Party is bound or affected; and

 

4.1.3 Any
individual executing this Agreement on behalf of an entity has authority to act on behalf of such entity and has been duly and properly
authorized to sign this Agreement on behalf of such entity.

 

5. Definitions.
In addition to other terms defined throughout this Agreement, the following terms have the following meanings when used herein:

 

5.1 “Affiliate”
means (x) any Person directly or indirectly controlling, controlled by or under common control with another Person, (y) any manager, director,
officer, partner or employee of a Person, or (z) any spouse, spousal equivalent or other cohabitant occupying a relationship generally
equivalent to that of a spouse, father, mother, brother, sister or descendant of a Person; a Person shall be deemed to control another
Person if such Person possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of
such other Person, whether through ownership of voting securities, by contract, or otherwise.

 

    180 and Mintz
Settlement and Mutual Release Agreement
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5.2 “Binding
Agreement Date” means the date that this Agreement has been signed by all Parties hereto and that a signed copy hereof has
been delivered to each of the Parties hereto.

 

5.3 “Governing
Documents” of an entity shall mean the (i) articles or certificate of incorporation or association, certificate of formation,
articles of organization or certificate of limited partnership or similar instrument under which an entity is formed; and (ii) the other
documents or agreements, including bylaws, partnership agreements of partnerships, operating agreements of limited liability companies,
or similar documents, adopted by the entity to govern the formation and internal affairs of the entity.

 

5.4 “Loss”
means all losses, damages, liabilities (including, without limitation, tax liabilities), claims, demands, causes of action, judgments,
settlements, fines, penalties, costs and expenses (including, without limitation, court costs and reasonable attorney’s and experts’
fees) of any and every kind or character, known or unknown, fixed or contingent, lost work hours (at regular billing rates) and other
out-of-pocket costs and expenses and lost time.

 

5.5 “Person”
means any natural person, corporation, general partnership, limited partnership, limited liability company, limited liability partnership,
proprietorship, business or statutory trust, trust, union, association, instrumentality, governmental authority or other entity, enterprise,
authority, or unincorporated entity.

 

6. No
Prior Assignments. The Parties hereto represent that each has not assigned, in whole or in part, any claim, demand and/or causes
of action against any other Party, or their Affiliates, agents, officers, directors, servants, representatives, successors, employees,
attorneys, or assigns to any person or entity prior to such Party’s execution of this Agreement.

 

7. No
Presumption from Drafting. This Agreement has been negotiated at arm’s-length between persons knowledgeable in the matters
set forth within this Agreement. Accordingly, given that all Parties have had the opportunity to draft, review and/or edit the language
of this Agreement, no presumption for or against any Party arising out of drafting all or any part of this Agreement will be applied in
any action relating to, connected with or involving this Agreement. In particular, any rule of law, legal decisions, or common law principles
of similar effect that would require interpretation of any ambiguities in this Agreement against the Party that has drafted it, is of
no application and is hereby expressly waived.

 

8. No
Admission of Liability. Each Party acknowledges and agrees that this Agreement is a compromise and neither this Agreement, nor
any consideration provided pursuant to this Agreement, shall be taken or construed to be an admission or concession by either Party of
any kind with respect to any fact, liability, or fault except as may be expressly set forth herein.

 

    180 and Mintz
Settlement and Mutual Release Agreement
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9. Fees
and Expenses. Each of the Parties shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if
any, and all other expenses incurred by such Party incident to the negotiation, preparation, execution, delivery and performance of this
Agreement.

 

10. Binding
Effect. This Agreement shall not be binding on any Party unless and until it is executed by, and delivered to, all Parties, and
upon such execution and delivery, shall be binding on and inure to the benefit of each of the Parties and their respective heirs, successors,
assigns, directors, officers, agents, employees and personal representatives.

 

11. Choice
of Law. This Agreement shall be governed by and construed according to the laws of the State of Delaware, without giving effect
to its choice of law principles. Any actions and proceedings arising out of or relating directly or indirectly to this Agreement or any
ancillary agreement or any other related obligations shall be litigated solely and exclusively in the state or federal courts located
in Delaware, and those such courts are convenient forums. Each Party hereby submits to the personal jurisdiction of such courts for purposes
of any such actions or proceedings.

 

12. Further
Assurances. The Parties agree that, from time to time, each of them will take such other action and to execute, acknowledge and
deliver such contracts, deeds, or other documents as may be reasonably requested and necessary or appropriate to carry out the purposes
and intent of this Agreement and the transactions contemplated herein.

 

13. Binding
Effect. This Agreement shall not be binding on any Party unless and until it is executed by all Parties, and upon such execution
shall be binding on and inure to the benefit of each of the Parties and their respective heirs, successors, assigns, directors, officers,
agents, employees and personal representatives.

 

14. Modification.
This Agreement may be modified only by a writing signed by the Party against whom enforcement of the modification is sought.

 

15. Entire
Agreement. This Agreement constitutes the entire agreement between the Parties pertaining to the subject matter hereof and supersedes
all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, of the Parties in connection
with the subject matter hereof.

 

16. Severability.
Every provision of this Agreement is intended to be severable. If, in any jurisdiction, any term or provision hereof is determined to
be invalid or unenforceable, (a) the remaining terms and provisions hereof shall be unimpaired, (b) any such invalidity or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such term or provision in any other jurisdiction, and (c) the invalid
or unenforceable term or provision shall, for purposes of such jurisdiction, be deemed replaced by a term or provision that is valid and
enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision.

 

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Settlement and Mutual Release Agreement
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17. Construction.
When used in this Agreement, unless a contrary intention appears: (i) a term has the meaning assigned to it; (ii) “or”
is not exclusive; (iii) “including” means including without limitation; (iv) words in the singular include the
plural and words in the plural include the singular, and words importing the masculine gender include the feminine and neuter genders;
(v) any agreement, instrument or statute defined or referred to herein or in any instrument or certificate delivered in connection herewith
means such agreement, instrument or statute as from time to time amended, modified or supplemented and includes (in the case of agreements
or instruments) references to all attachments thereto and instruments incorporated therein; (vi) the words “hereof”,
“herein” and “hereunder” and words of similar import when used in this Agreement shall
refer to this Agreement as a whole and not to any particular provision hereof; (vii) references contained herein to Article, Section,
Schedule, Appendix and Exhibit, as applicable, are references to Articles, Sections, Schedules, Appendixes and Exhibits in this Agreement
unless otherwise specified and any such Schedules, Appendixes and Exhibits referred to herein shall be construed with, and as an integral
part of, this Agreement to the same extent as if they were set forth verbatim herein; (viii) references to “writing”
include printing, typing, lithography and other means of reproducing words in a visible form, including, but not limited to email; (ix)
references to “dollars”, “Dollars” or “$” in this Agreement
shall mean United States dollars; (x) reference to a particular statute, regulation or law means such statute, regulation or law as amended
or otherwise modified from time to time; (xi) any definition of or reference to any agreement, instrument or other document herein shall
be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified
(subject to any restrictions on such amendments, supplements or modifications set forth herein); (xii) unless otherwise stated in this
Agreement, in the computation of a period of time from a specified date to a later specified date, the word “from”
means “from and including” and the words “to” and “until”
each mean “to but excluding”; (xiii) references to “days” shall mean calendar days;
and (xiv) the paragraph headings contained in this Agreement are for convenience only, and shall in no manner be construed as part of
this Agreement.

 

18. Review
of Agreement; Voluntarily Entering Into Agreement. Each Party herein expressly represents and warrants to all other Parties hereto
that (a) before executing this Agreement, said Party has fully informed itself of the terms, contents, conditions and effects of this
Agreement; (b) said Party has relied solely and completely upon its own judgment in executing this Agreement; (c) said Party has had the
opportunity to seek and has obtained the advice of its own legal, tax and business advisors before executing this Agreement; (d) said
Party has acted voluntarily and of its own free will in executing this Agreement; and (e) this Agreement is the result of arm’s
length negotiations conducted by and among the Parties and their respective counsel.

 

19. Confidentiality.
180 and Mintz confirm that each Party has disclosed confidential and proprietary information to the other (such disclosing party, the
“Disclosing Party” and such receiving party, the “Receiving Party”) relating to such
Disclosing Party’s business, including, but not limited to ideas, prospects, business transactions, concepts, strategies, corporate
and financing structures, data, spreadsheets, summaries, reports, drawings, charts, specifications, forms, materials, or agreements (collectively,
“Confidential Information”). Each Receiving Party agrees not to divulge any such Confidential Information to
any third party, except as may be required or requested to be disclosed by order of a court, administrative agency or governmental body
or self-regulatory organization, or by any rule, law or regulation, or by subpoena or any other legal or administrative process, or as
requested by any regulator or self-regulatory organization, provided in such case the Receiving Party provides the Disclosing Party notice
of such disclosure. Notwithstanding the foregoing, the Parties agree that Confidential Information shall not include information which
(a) was known by a Receiving Party prior to its disclosure by the Disclosing Party and is not subject to other confidentiality obligation,
(b) is or becomes publicly known through no breach of this Agreement, (c) is received from a third party without a breach of any confidentiality
obligation known to the Receiving Party, (d) is independently developed by the Receiving Party or (e) is disclosed with the Disclosing
Party’s prior written consent. The obligations set forth in this Section 18 shall be defined herein as the “Confidentiality
Requirements”, and such Confidentiality Requirements shall survive the consummation of the transactions contemplated by
this Agreement and continue to bind the Parties in perpetuity.

 

20. Execution.
This Agreement and any signed agreement or instrument entered into in connection with this Agreement, and any amendments hereto or thereto,
may be executed in one or more counterparts, all of which shall constitute one and the same instrument. Any such counterpart, to the extent
delivered by means of a facsimile machine or by .pdf, .tif, .gif, .jpeg or similar attachment to electronic mail (any such delivery, an
“Electronic Delivery”) shall be treated in all manner and respects as an original executed counterpart and shall
be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. At the request
of any Party, each other Party shall re execute the original form of this Agreement and deliver such form to all other Parties. No Party
shall raise the use of Electronic Delivery to deliver a signature or the fact that any signature or agreement or instrument was transmitted
or communicated through the use of Electronic Delivery as a defense to the formation of a contract, and each such Party forever waives
any such defense, except to the extent such defense relates to lack of authenticity.

 

[Remainder of page left intentionally
blank. Signature page(s) follows.]

 

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Settlement and Mutual Release Agreement
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IN WITNESS WHEREOF,
intending to be legally bound, the Parties hereto have executed this Agreement on the date set forth above, to be effective as of the
Effective Date, except as otherwise provided above.

 

	 	(“180”)	 
	 	 	 
	 	180 Life Sciences Corp.	 
	 	 	 	 	 
	 	 	By:	/s/ James N. Woody	 
	 	 	 	 	 
	 	 	Its:	Chief Executive Officer	 
	 	 	 	 	 
	 	 	Printed Name:	James N. Woody	 
	 	 	 	 	 
	 	(“Mintz”)	 
	 	 	 
	 	Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.	 
	 	 	 	 	 
	 	 	By:	/s/ Ken Koch	 
	 	 	 	 	 
	 	 	Its:	Member	 
	 	 	 	 	 
	 	 	Printed Name:	Ken Koch	 

 

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Settlement and Mutual Release Agreement
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EXHIBIT A

Engagement Agreement

 

 

 

 

 

 

 

 

 

 

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Settlement and Mutual Release Agreement
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EXHIBIT B

Invoices

 

 

 

 

 

 

 

 

 

 

 

 

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Settlement and Mutual Release Agreement
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SCHEDULE 1

WIRING INSTRUCTIONS

 

 

 

 

 

 

 

 

 

 

 

180 and Mintz

Settlement and Mutual Release Agreement

Page 10 of 10Document

SKILLZ 2020 OMNIBUS INCENTIVE PLAN 
CEO PERFORMANCE STOCK UNIT AWARD AGREEMENT
THIS PERFORMANCE STOCK UNIT AGREEMENT (this “Agreement”) is made effective as of September 14, 2021, (the “Grant Date”) by and between Skillz Inc., a Delaware corporation (the “Company”), and Andrew Paradise (the “Participant”), pursuant to the Skillz Inc. 2020 Omnibus Incentive Plan, as in effect and as amended from time to time (the “Plan”). Capitalized terms that are not defined herein shall have the meanings given to such terms in the Plan.
WHEREAS, the Company has adopted the Plan in order to grant Awards from time to time to certain key Employees, Directors and Consultants of the Company and its Subsidiaries or Affiliates; and
WHEREAS, the Participant is an Eligible Recipient as contemplated by the Plan, and the Administrator has determined that it is in the interest of the Company to make this grant to the Participant;
NOW, THEREFORE, in consideration of the premises and subject to the terms and conditions set forth herein and in the Plan, the parties hereto agree as follows:
1.Grant of Performance Stock Units.
As of the Grant Date, the Participant will be credited with 16,119,540 Performance Stock Units. Each Performance Stock Unit is a notional amount that represents the right to receive one share of Class A Common Stock of the Company (a “Share”), subject to the terms and conditions of the Plan and this Agreement, if and when the Performance Stock Unit vests.
2.Vesting of Performance Stock Units.
(a)Tranches.  The Performance Stock Units are divided into four (4) tranches (each a “Tranche”), with each Tranche representing the Performance Stock Units covering the number of Shares and having the Market Capitalization Milestone specified next to the applicable Tranche number in the table below. 

									
	Tranche	Number of Performance Stock Units	Market Capitalization Milestone
(Expressed as a Multiple of the 
Market Capitalization Baseline)

	1	4,029,885	2.0x
	2	4,029,885	3.0x
	3	4,029,885	4.0x
	4	4,029,885	5.0x
	Total	16,119,540	

(b)Vesting.  
(i)Vesting During the Performance Period.  Each Tranche shall vest if and when during the Performance Period the Company’s Market Capitalization equals or exceeds the applicable Market Capitalization Milestone (each as defined below), subject to the Participant’s continuous service with the Company as (1) the Chief Executive Officer of the Company or (2) the Executive Chairman and Chief Product Officer of the Company (such roles satisfying either of clauses (1) or (2), “Service”) through such date, except as provided in Section 3, and subject further to the Administrator’s determination, approval and certification that the requisite vesting conditions for the applicable Tranche have been satisfied (a “Certification”).
(ii)Pro-rata Vesting at the End of the Performance Period.  If, on the last day of the Performance Period, the Company’s Market Capitalization is between two Market Capitalization Milestones, the Tranche associated with the higher Market Capitalization Milestone shall vest pro-rata using straight-line interpolation, subject to the Participant’s Service through the end of the Performance Period, except as provided in Section 3, and subject to Certification. For example, if the Company’s Market Capitalization is 4.25x on the last day of the Performance Period, twenty-five percent (25%) of the Performance Stock Units in Tranche 4 would vest (1,007,471 Performance Stock Units would vest). Any Performance Stock Units that fail to vest at the end of the Performance Period shall be forfeited and cancelled automatically.  
(iii)Assessment.  During the Performance Period, the Administrator shall periodically assess whether the vesting requirements have been satisfied.  The Administrator shall also engage in such assessment reasonably promptly upon the reasonable request of the Participant. 
    2

(c)Definitions.  
(i)The “Market Capitalization Baseline” is equal to the product of (1) the Company’s 30-trading day volume weighted average price (“VWAP”) as of the close of the Grant Date and (2) the average number of outstanding shares during such 30-trading day period, as reported by the Company’s transfer agent.  
(ii)The Company’s “Market Capitalization” on a particular trading day for purposes of each Market Capitalization Milestone is equal to the product of (1) the Company’s 60-trading day VWAP as of the close of such trading day and (2) the average number of outstanding shares during such 60-trading day period, as reported by the Company’s transfer agent.
(iii)Each “Market Capitalization Milestone” means the multiple of the Company’s Market Capitalization Baseline set forth next to the applicable Tranche shown in the table in Section 2(a).
(iv)A “trading day” means a day on which the primary stock exchange or national market system on which the Shares trade (e.g., the New York Stock Exchange) is open for trading.
(v)The “Performance Period” means the period from the Grant Date until the seventh (7th) anniversary of the Grant Date.  
(d)Adjustments to Market Capitalization Milestones in the Event of Certain Corporate Transactions.  Without limiting Section 5 of the Plan, the Market Capitalization Milestones will be adjusted by the Administrator, in consultation with the Participant, equitably and proportionately in a manner designed to preserve the economic opportunity provided under the Performance Stock Units, (1) higher to account for acquisition activity for which stock is provided as consideration; and (2) lower to account for a spin-off, dividend or other distribution (whether in the form of cash, shares, other securities, or other property) or divestiture activity, in each case, that could be considered material to the achievement of the Market Capitalization Milestones.
3.Termination of Service; Change in Control.
(a)Termination of Service.  
(i)If the Participant’s Service terminates other than by (1) the Company for Cause or (2) the Participant without Good Reason (each as defined below) during the Performance Period, any unvested Tranche shall remain outstanding until the earlier of the nine (9) month anniversary of such termination of Service and the end of the Performance Period, and shall vest in accordance with Section 2(b). Any Performance Stock Units that fail to vest by the nine (9) month anniversary of such termination of 
    3

Service or the end of the Performance Period, as the case may be, shall be forfeited and cancelled automatically.
(ii)Any unvested Performance Stock Units shall be forfeited and cancelled automatically upon any termination of the Participant’s Service other than as described in Section 3(a)(i).
(b)Change in Control.  If a Change in Control occurs during the Performance Period, any unvested Tranche shall vest as of the effective time of such Change in Control in accordance with Section 2(b) except that the Company’s Market Capitalization shall be calculated using the higher of (1) the Company’s 60-trading day VWAP as of the close of the trading day immediately prior to the effective time of the Change in Control and (2) the price per share (plus the per share value of any other consideration) received by the Company’s stockholders in the Change in Control (and in the case of share-based consideration, based on the closing price on the trading day immediately prior to the effective time of the Change in Control). Any Tranche that fails to vest as of the effective time of the Change in Control shall be forfeited and cancelled automatically. 
(c)Definitions.  
(i)“Cause” means the occurrence of one or more of the following with respect to the Participant: (1) a final, non-appealable finding by a court of competent jurisdiction of the Participant’s material breach of fiduciary duty or duty of loyalty to the Company; (2) a conviction of or plea of nolo contendere to a felony or a crime involving moral turpitude; (3) the willful failure or refusal to perform and discharge the Participant’s duties and responsibilities on behalf of the Company (other than by reason of Disability) or to comply with any lawful directive of the Board or its designee, in each case which continues for ten (10) days after the Board provides written notice specifying in reasonable detail the facts and circumstances claimed to be the basis for such failure or refusal; (4) a willful and material breach of a written policy of the Company (including, without limitation, those relating to sexual harassment or the disclosure or misuse of confidential information); (5) a willful and material breach of an agreement with the Company (including, without limitation, any confidentiality, non-competition, non-solicitation or assignment of inventions agreement); (6) the commission of fraud, theft, embezzlement, self-dealing, misappropriation or other malfeasance against the business of the Company; or (7) the commission of acts or omissions constituting gross negligence or gross misconduct in the performance of any aspect of the Participant’s lawful duties or responsibilities, which has or may be expected to have a materially and demonstrably adverse effect on the Company. No act or failure to act on the part of the Participant (A) that has occurred prior to the Grant Date shall be deemed to be for Cause or (B) shall be considered “willful” unless it is done or omitted to be done by 
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the Participant in bad faith and without reasonable belief that the Participant’s action or omission was in the best interest of the Company.  Any act, or failure to act, based upon the directive of the Board or advice of counsel to the Company shall be conclusively presumed to be done, or omitted to be done, by the Participant in good faith or in the best interest of the Company. No termination of the Participant’s employment by the Company for Cause shall occur unless and until there shall have been delivered to the Participant a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters of the Board (excluding the Participant, if the Participant is a member of the Board) at a meeting of the Board (after reasonable notice is provided to the Participant and the Participant is given an opportunity, together with counsel for the Participant, to be heard before the Board), finding that, in the good faith opinion of the Board, Cause has occurred.
(ii)“Good Reason” means the occurrence of one or more of the following without the Participant’s written consent, (1) a material reduction by the Company in base salary or target bonus; (2) a material diminution in duties, responsibilities, reporting relationship, or authority of employment; (3) a requirement that the Participant perform his duties from any particular location; or (4) the failure of any successor to the Company to assume and agree to be bound by the terms and conditions of this Agreement; provided, in each case, that the Participant has given the Company written notice detailing the specific circumstances alleged to constitute Good Reason within thirty (30) calendar days after the first occurrence of such circumstances, and the Company shall have thirty (30) calendar days following receipt of such notice to cure such circumstances in all material respects; and provided further, that no termination due to Good Reason shall occur after the ninetieth (90th) calendar day following the first occurrence of any grounds for Good Reason.
4.Timing and Form of Payment.  Once a Performance Stock Unit vests, the Participant will be entitled to receive a Share in its place. Delivery of the Share will be made as soon as administratively feasible following the vesting of the associated Performance Stock Unit and in no event later than March 15th of the year following the year in which the Performance Stock Unit vests. 
5.Clawback.  
(a)Accounting Restatement Recoupment.  In the event the Company is required to prepare an accounting restatement of its financial statements due to the Company’s material noncompliance with any financial reporting requirement under the securities laws, the Board will require reimbursement of any excess Shares received by the Participant in respect of vested Performance Stock Units during the three (3) completed fiscal years immediately preceding the date on which the Company is required to prepare an accounting restatement.
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(b)Amount Subject to Recovery.  The amount to be recovered will be the excess of the number of Shares received by the Participant in respect of any Performance Stock Units that vested based on the erroneous data over the number of Shares that would have been received by the Participant in respect of Performance Stock Units that would have vested based on the restated results, as determined by the Board. If the Board cannot determine the number of excess Shares received by the Participant directly from the information in the accounting restatement, then it will make its determination based on a reasonable estimate of the effect of the accounting restatement.
(c)Method of Recoupment.  The Board will determine, in its sole discretion, the method of recoupment, which may include, without limitation, (i) seeking recovery of the excess Shares or any gain realized on a sale or other disposition of the excess Shares; (ii) offsetting the recouped amount from any compensation otherwise owed by the Company to the Participant; and (iii) taking any other remedial and recovery action permitted by law, as determined by the Board.
6.Tax Withholding.  The Company or any Affiliate thereof shall, in accordance with Section 16 of the Plan, have the power to withhold, or require the Participant to remit to the Company or such Affiliate thereof, cash or Shares that are distributable to the Participant with respect to Performance Stock Units that have vested in an amount sufficient to satisfy the federal, state, and local withholding tax requirements, both domestic and foreign, relating to such transaction, and the Company or such Affiliate thereof may defer payment of cash or issuance of Shares until such requirements are satisfied; provided, however, that such amount may not exceed the maximum statutory withholding rate. The Participant shall be entitled to elect to satisfy the amount of any such required tax withholding by having the Company withhold from the Shares otherwise distributable to the Participant with respect to Performance Stock Units that have vested a number of Shares having a Fair Market Value equal to the amount of such required tax withholdings.
7.Nontransferability of Performance Stock Units.  The Performance Stock Units granted hereunder may not be sold, transferred, pledged, assigned, encumbered or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution or, pursuant to procedures as the Administrator reasonably shall establish and subject to Section 14(g), for estate planning purposes.
8.Beneficiary Designation.  The Participant may from time to time name any beneficiary or beneficiaries (who may be named contingently or successively) by whom any right under the Plan and this Agreement is to be exercised in case of his death. Each designation will revoke all prior designations by the Participant, shall be in a form reasonably prescribed by the Administrator, and will be effective only when filed by the Participant in writing with the Administrator during his lifetime.
9.Adjustments.  Notwithstanding any provision in the Plan, including Section 5 of the Plan, to the contrary, in the event that any dividend or other distribution (whether in the form of cash, shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or 
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exchange of shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares occurs, the Administrator, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Agreement, will adjust the number and class of shares subject to the Award.
10.Requirements of Law.  The issuance of Shares following vesting of any Performance Stock Units shall be subject to all applicable laws, rules and regulations and to such approvals by any governmental agencies or national securities exchanges as may be required. No Shares shall be issued upon vesting of any Performance Stock Units granted hereunder if such issuance would result in a violation of applicable law, including the U.S. federal securities laws and any applicable state or foreign securities laws.
11.No Guarantee of Continued Service.  Nothing in the Plan or in this Agreement shall interfere with or limit in any way the right of the Company or an Affiliate thereof to terminate the Participant’s Service at any time or confer upon the Participant any right to continued Service.
12.No Rights as a Stockholder.  The Participant shall not have any rights as a stockholder with respect to any Shares covered by the Performance Stock Units granted hereunder prior to the date on which he is recorded as the holder of those Shares on the records of the Company.
13.Acknowledgement of Plan Terms.  The Participant acknowledges that he has been provided a copy of the Plan, has had the opportunity to review such Plan and agrees to be bound by all the terms and provisions of the Plan.
14.Miscellaneous.
(a)Notices.  All notices, requests, demands, letters, waivers and other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given if delivered personally, mailed by certified or registered mail with postage prepaid, sent by next-day or overnight mail or delivery, or sent by fax or email, as follows:
(i)If to the Company: 
Skillz Inc.
P.O. Box 445
San Francisco, CA 94104
Attention: Equity@Skillz.com
(ii)If to the Participant, to the Participant’s last known home address, or to such other person or address as any party shall specify by notice in writing to the Company. 
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All such notices, requests, demands, letters, waivers and other communications shall be deemed to have been received (w) if by personal delivery on the day after such delivery, (x) if by certified or registered mail, on the fifth business day after the mailing thereof, (y) if by next-day or overnight mail or delivery, on the day delivered, or (z) if by fax or email, on the day delivered, provided that such delivery is confirmed.
(b)Binding Effect; Benefits.  This Agreement shall be binding upon and inure to the benefit of the parties to this Agreement and their respective successors and assigns. Nothing in this Agreement, express or implied, is intended or shall be construed to give any person other than the parties to this Agreement or their respective successors or assigns any legal or equitable right, remedy or claim under or in respect of any agreement or any provision contained herein.
(c)No Guarantee of Future Awards.  This Agreement does not guarantee the Participant the right to or expectation of future Awards under the Plan or any future plan adopted by the Company.
(d)Waiver.  Either party’s failure to enforce any provision or provisions of this Agreement shall not in any way be construed as a waiver of any such provision or provisions, nor prevent that party from thereafter enforcing each and every other provision of this Agreement. 
(e)Entire Agreement.  This Agreement, together with the Plan, constitutes the entire obligation of the parties with respect to the subject matter of this Agreement and supersedes any prior written or oral expressions of intent or understanding with respect to such subject matter. 
(f)Severability.  If any provision of this Agreement shall be determined by any court of competent jurisdiction to be invalid and unenforceable to any extent, the remainder of this Agreement shall not be affected thereby and each provision hereof shall be validated and shall be enforced to the fullest extent permitted by law.
(g)Code Section 409A Compliance.  The Performance Stock Units are intended to be exempt from or comply with the requirements of Code Section 409A and this Agreement shall be interpreted accordingly. Notwithstanding any provision of this Agreement, to the extent that the Administrator determines that any portion of the Performance Stock Units granted under this Agreement is subject to Code Section 409A and fails to comply with the requirements of Code Section 409A, notwithstanding anything to the contrary contained in the Plan or in this Agreement, the Administrator reserves the right to amend, restructure, terminate or replace such portion of the Performance Stock Units in order to cause such portion of the Performance Stock Units to either not be subject to Code Section 409A or to comply with the applicable provisions of such section.
(h)Applicable Law.  This Agreement shall be governed by and construed in accordance with the law of the State of Delaware, regardless of the law that might be applied under principles of conflict of laws. The Company and the Participant hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Court of Chancery of the State of Delaware (the 
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“Delaware Court”), and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) waive any objection to the laying of venue of any such action or Proceeding in the Delaware Court and (iv) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.
(i)Section and Other Headings.  The section and other headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.
(j)Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument.
[Signature Page Follows]
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IN WITNESS WHEREOF, the Company and the Participant have duly executed this Agreement as of the date first above written.
									
	SKILLZ INC.
	
	
	By:	/s/ Casey Chafkin
		Name:	Casey Chafkin
		Title:	Chief Revenue Officer
	
	
	PARTICIPANT
	
	
	By:	/s/ Andrew Paradise
		Name:	Andrew Paradise

[Signature Page to PSU Agreement]

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