Document:

EX-10.10

   

   

  2834 Colorado Avenue, Suite 100

  Santa Monica, CA 90404

   

  December 9, 2021

  Jeffrey D. Lawrence

   

   

  Dear Jeff:

  This letter sets forth the transition agreement (the “Agreement”) that FIGS, Inc. (the “Company”) is offering to you to aid in your employment transition. 

  1.Transition. Your final day of employment will be December 24, 2021 (the “Transition Date”). 

  2.Accrued Salary and Paid Time Off.  On the Transition Date, the Company will pay you all accrued salary, and all accrued and unused paid time off earned through the Transition Date, subject to standard payroll deductions and withholdings. You are entitled to these payments regardless of whether or not you sign this Agreement. 

  3.Transition Benefits.  If you: (i) execute this Agreement; (ii) execute the general release of claims in the form attached hereto as Exhibit A (the “Release”) to the Company on or within sixty (60) days after the Transition Date and do not revoke such Release during the seven (7) days thereafter; and (iii) comply with all of your legal and contractual obligations to the Company (including pursuant to your Employee Confidential Information and Assignment Agreement), then the Company will provide you with the following benefits (the “Transition Benefits”): 

  i. An amount equal to twelve (12) months of your current base salary, less all applicable withholdings and deductions (the “Salary Continuation”), paid over the twelve (12) month period beginning on the Transition Date. The Salary Continuation will be paid in equal installments on the Company’s regular payroll schedule and will be subject to applicable tax withholdings; provided, however, that no payments will be made prior to the sixtieth (60th) day following your Transition Date. On the sixtieth (60th) day following your Transition Date, the Company will pay you in a lump sum the Salary Continuation that you would have received on or prior to such date under the original schedule but for the delay while waiting for the sixtieth (60th) day in compliance with Code Section 409A and the effectiveness of the Release, with the balance of the Salary Continuation being paid as originally scheduled.

  ii. If you timely elect continued coverage under COBRA for yourself and your covered dependents under the Company’s group health plans following your Transition Date, then the Company shall pay the COBRA premiums necessary to continue your health insurance coverage in effect for yourself and your eligible dependents on the Transition Date until the earliest of (A) the close of the twelve (12) month period following the Transition Date, (B) the expiration of your eligibility for the continuation coverage under COBRA, or (C) the date when you become eligible for substantially equivalent health insurance coverage in connection with new employment or self-employment.

   

  

  Jeffrey D. Lawrence	

  December 9, 2021

  Page 2

   

  4.Equity. As of the Transition Date, no shares from your December 31, 2020 stock option grant (the “Option Grant”) will have vested. Notwithstanding the foregoing, as consideration for the non-compete and the other related covenants and obligations herein, and subject to your timely execution and non-revocation of the Release, the Company will accelerate the vesting and exercisability of 275,000 shares of the Company’s Class A Common Stock subject to the Option Grant as of the Effective Date (as defined in the Release) of the Release.  Under the terms of your stock option agreements and the applicable plan documents, your Option Grant will cease vesting on the Transition Date (except to the extent set forth in the immediately preceding sentence). Your right to exercise any vested shares shall expire on the one-year anniversary of your Transition Date notwithstanding anything to the contrary contained in the stock option agreement evidencing the Option Grant. You acknowledge and agree that the foregoing extension to the exercise period may cause an incentive stock option to be reclassified as a non-qualified stock option, and that you and not the Company shall be solely responsible for any tax consequences relating to such reclassification. All other rights and obligations with respect to your Option Grant will be as set forth in your stock option agreement, grant notice and applicable plan documents. You acknowledge that you have no other vested or unvested equity or equity-based awards covering the Company’s common stock.

  5.Other Compensation or Benefits. You acknowledge that, except as expressly provided in this Agreement, you have not earned and will not receive from the Company any additional compensation (including base salary, bonus, incentive compensation, or equity), severance, or benefits after the Transition Date, with the exception of any vested right you may have under the express terms of a written ERISA-qualified benefit plan (e.g., 401(k) account). 

  6.Expense Reimbursements. You agree that, within ten (10) days after the Transition Date, you will submit your final documented expense reimbursement statement reflecting all business expenses you incurred through the Transition Date, if any, for which you seek reimbursement.  The Company will reimburse you for these expenses pursuant to its regular business practice. 

  7.Return of Company Property.  On or within five (5) days after the Transition Date, you will return to the Company all Company documents (and all copies thereof) and other Company property in your possession or control, including, but not limited to, Company files, notes, drawings, records, business plans and forecasts, contact information, financial information, specifications, training materials, computer-recorded information, tangible property including, but not limited to, computers, credit cards, entry cards, identification badges and keys; and any materials of any kind that contain or embody any proprietary or confidential information of the Company (and all reproductions thereof). You represent that you have made a diligent search to locate any such documents, property and information within the required timeframe.  In addition, if you have used any personally owned computer, server, e-mail system, mobile phone, portable electronic device (e.g., smartphone, iPad or the like), (collectively, “Personal Systems”) to receive, store, prepare or transmit any Company confidential or proprietary data, materials or information, then within five (5) days after the Transition Date, you will provide the Company with a computer-useable copy of all such information and then permanently delete and expunge all such Company confidential or proprietary information from such Personal Systems without retaining any copy or reproduction in any form (in whole or in part).  You agree that, after the applicable timeframes noted above, you will neither use nor possess Company property. Your timely compliance with this paragraph is a condition precedent to your receipt of the Transition Benefits described above.

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  Jeffrey D. Lawrence	

  December 9, 2021

  Page 3

   

  8.Exceptions. Notwithstanding any provision in this Agreement to the contrary, nothing herein shall prevent either party (or either party’s attorney(s)) from (i) filing a charge, complaint, or report with, or otherwise communicating with, providing information to, or cooperating, or participating with any investigation or proceeding by or before the Equal Employment Opportunity Commission, the United States Department of Labor, the National Labor Relations Board, the Occupational Safety and Health Administration, the Securities and Exchange Commission, or any other federal, state or local government agency or commission (“Government Agencies”) or making other disclosures that are protected under the whistleblower provisions of applicable law or regulation, (ii) communicating directly with, cooperating with, or providing information (including trade secrets) in confidence to any Government Agencies for the purpose of reporting or investigating a suspected violation of law, or from providing such information to such party’s attorney(s) or in a sealed complaint or other document filed in a lawsuit or other governmental proceeding, and/or (iii) receiving an award for information provided to any Government Agency.  Pursuant to 18 USC Section 1833(b), you acknowledge that (1) you will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made: (x) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or (y) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal, and (2) if you file a lawsuit for retaliation by the Company or its affiliates for reporting a suspected violation of law, you may disclose the trade secret to your attorney and use the trade secret information in the court proceeding, if you file any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.  Further, nothing in this Agreement is intended to or shall preclude either party from providing truthful testimony in response to a valid subpoena, court order, regulatory request or other judicial, administrative or legal process or otherwise as required by law.  If you are required to provide testimony, then unless otherwise directed or requested by a Governmental Agency or law enforcement, you shall notify the Company in writing as promptly as practicable after receiving any such request of the anticipated testimony and at least ten (10) days prior to providing such testimony (or, if such notice is not possible under the circumstances, with as much prior notice as is possible) to afford the Company a reasonable opportunity to challenge the subpoena, court order or similar legal process.

  9.Nondisparagement. You agree not to disparage the Company, its officers, directors, employees, shareholders, and agents, in any manner likely to be harmful to its or their business, business reputation, or personal reputation in any forum, including but not limited to employee review sites such as Glassdoor or on social media; provided that you may respond accurately and fully to any question, inquiry or request for information when required by legal process. The Company shall instruct the Board and senior management of the Company not to disparage you in any manner likely to be harmful to your business reputation, or personal reputation in any forum; provided that the Company may respond accurately and fully to any question, inquiry or request for information when required by legal process.

  10.No Admissions. You understand and agree that the promises and payments in consideration of this Agreement shall not be construed to be an admission of any liability or obligation by the Company to you or to any other person, and that the Company makes no such admission.

  11.Restrictive Covenant. You acknowledge that in the course of your employment as the Company’s Chief Financial Officer, you became familiar with confidential information of the 

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  Jeffrey D. Lawrence	

  December 9, 2021

  Page 4

   

  Company and your services have been of special, unique, and extraordinary value to the Company. Therefore, and in exchange for the consideration provided to you under this Agreement to which you would not otherwise be entitled, you hereby agree that for three (3) years after the Transition Date (the “Restrictive Period”), you shall not, directly or indirectly, whether as owner, partner, shareholder, consultant, agent, employee, co-venturer or otherwise, engage in, participate with, provide services to, assist, or invest in any Competitive Business. For purposes of this Agreement, the term “Competitive Business” means any company or other entity that designs, manufactures, or sells healthcare apparel and that does business anywhere in the United States.

  12.Non-Solicitation. During the Restrictive Period, you shall not directly or indirectly or through another entity or person: (a) induce or attempt to induce any employee to leave the employ of the Company; or (b) induce or attempt to induce any prior or current customer of the Company, potential customer of the Company who was known to you as a potential customer as of the Transition Date, supplier, licensee, licensor, franchisee, or other business relation of the Company to: (i) reduce or cease doing business with the Company, (ii) to do business with an entity or person other than the Company with respect to the Competitive Business, or (iii) in any way interfere with the relationship between any such customer, potential customer, supplier, licensee, licensor, franchisee, or other business relation and the Company.

  13.Remedies for Violations of Sections 11 and 12. 

   (a) Injunctive Relief.  The parties agree that any breach of your obligations under Sections 11 or 12 of this Agreement would result in irreparable injury to the Company that cannot be adequately or solely measured or compensated by monetary or other legal remedies. Therefore, in the event of a breach of this Agreement by you, the Company shall be entitled to equitable relief, including, but not limited to, preliminary or permanent injunctive relief without the necessity of posting any bond or security. Such equitable relief shall be in addition to any legal remedies that may be available to the Company.

  (b) Tolling of Covenants upon Breach.  In addition to any other form of equitable or legal relief, in the event that you breach any of the covenants set forth in Sections 11 or 12 of this Agreement, then the Restrictive Period shall be tolled and automatically extended for the period of the breach.

  14.Cooperation in Litigation, Investigations, and Company Business. Without any additional compensation beyond the Transition Benefits, you agree to fully cooperate with the Company in its defense of or other participation in any administrative, judicial, arbitral, investigative, or other proceeding arising from any charge, complaint, audit, or other action that has been or may be filed, or with respect to which the Company may be or become involved, relating to any matter that occurred during your employment with the Company. You further agree to reasonably assist the Company with respect to transition or questions regarding any business matters with which you were involved with for the Company. The Company shall reimburse you for your reasonable business expenses incurred in connection with such cooperation or assistance.

  15.Representations. You hereby represent that you have been paid all compensation owed and for all hours worked, have received all the leave and leave benefits and protections for which you are eligible pursuant to the Family and Medical Leave Act, the California Family Rights Act, or 

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  Jeffrey D. Lawrence	

  December 9, 2021

  Page 5

   

  otherwise, and have not suffered any on-the-job injury for which you have not already filed a workers’ compensation claim.

  16.Confidential Information. You agree that Employee Confidential Information and Invention Assignment Agreement previously signed by you and attached as Exhibit B shall remain in full force and effect.

  17.Certain Provisions.  Sections 9 (Section 409A) and 12 (Arbitration) of that certain employment offer letter by and between you and the Company dated December 23, 2020 (the “Offer Letter”) are hereby incorporated by reference and shall apply, mutatis mutandis, to the provisions set forth herein.

  18.Miscellaneous. This Agreement, including Exhibits A and B, constitutes the complete, final and exclusive embodiment of the entire agreement between you and the Company with regard to its subject matter. It is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein, and it supersedes any other such agreements or promises, warranties or representations (including the Offer Letter, except as expressly provided in Section 17).  This Agreement may not be modified or amended except in a writing signed by both you and a duly authorized officer of the Company.  This Agreement will bind the heirs, personal representatives, successors and assigns of both you and the Company, and inure to the benefit of both you and the Company, their heirs, successors and assigns.  If any provision of this Agreement is determined to be invalid or unenforceable, in whole or in part, this determination will not affect any other provision of this Agreement and the provision in question will be modified so as to be rendered enforceable. This Agreement will be deemed to have been entered into and will be construed and enforced in accordance with the laws of the State of Michigan without regard to conflict of laws principles.  Any ambiguity in this Agreement shall not be construed against either party as the drafter.  Any waiver of a breach of this Agreement shall be in writing and shall not be deemed to be a waiver of any successive breach.  This Agreement may be executed in counterparts and facsimile signatures and signatures transmitted by PDF will suffice as original signatures.

  If this Agreement is acceptable to you, please sign below and return the original to me.

  We wish you the best.

   

  Sincerely,

   

  FIGS, Inc.

  By: /s/ Jennifer Jaffe	

  Jennifer Jaffe

  Chief People Officer

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  Jeffrey D. Lawrence	

  December 9, 2021

  Page 6

   

   

   

   

   

  I have read, understand and agree fully to the foregoing Agreement:

   

   

   

  /s/ Jeffrey D. Lawrence	

  Jeffrey D. Lawrence

   

   

  Date: December 9, 2021	

   

  ||

  

  Jeffrey D. Lawrence	

  December 9, 2021

  Page 7

   

  Exhibit A

   

  Release of Claims

   

  1.General Release. In exchange for the consideration provided to you under that certain Transition Agreement, by and between you and the Company, dated December 24, 2021 (the “Transition Agreement”) to which you would not otherwise be entitled, you hereby generally and completely release the Company, and its affiliated, related, parent and subsidiary entities, and its and their current and former directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, insurers, affiliates, and assigns (collectively, the “Released Parties”) from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to or on the date you sign this Release of Claims (collectively, the “Released Claims”, and this Release of Claims, the “Release”).

  2. Scope of Release. The Released Claims include, but are not limited to: (i) all claims arising out of or in any way related to your employment with the Company, or the termination of that employment; (ii) all claims related to your compensation or benefits from the Company, including salary, bonuses, commissions, vacation, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership, equity, or profits interests in the Company; (iii) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (iv) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (v) all federal, state, and local statutory claims, including without limitation claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended) (the “ADEA”), the California Labor Code (as amended), the California Fair Employment and Housing Act (as amended), the Michigan Elliott-Larsen Civil Rights Act, the Michigan Persons with Disabilities Civil Rights Act, the Michigan Wage and Fringe Benefits Act, the Michigan Whistleblower’s Protection Act, and/or any federal, state, or local law.

  3.Excluded Claims. Notwithstanding the foregoing, the following are not included in the Released Claims (the “Excluded Claims”): (i) any rights or claims for indemnification you may have pursuant to any written indemnification agreement with the Company to which you are a party or under applicable law or under the bylaws, certificate of incorporation or other similar governing document of the Company; (ii) any rights which are not waivable as a matter of law; and (iii) any claims for breach of the Transition Agreement. In addition, as set forth in Section 8 of the Transition Agreement, nothing in this Release prevents you from filing, cooperating with, or participating in any proceeding before a Governmental Agency, except that you acknowledge and agree that you hereby waive your right to any monetary benefits in connection with any such claim, charge or proceeding.  Additionally, while this Release does not limit your right to receive an award for information provided to the Securities and Exchange Commission, you are otherwise waiving, to the fullest extent permitted by law, any and all rights you may have to individual relief based on any claims that you have released and any rights you have waived by signing this Release.

  4.ADEA Waiver. You acknowledge that you are knowingly and voluntarily waiving and releasing any rights you may have under the ADEA, and that the consideration given for the waiver and release in this Section is in addition to anything of value to which you are already entitled. You 

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  Jeffrey D. Lawrence	

  December 9, 2021

  Page 8

   

  further acknowledge that you have been advised, as required by the ADEA and the Older Workers’ Benefit Protection Act, that: (i) your waiver and release do not apply to any rights or claims that may arise after the date that you sign this Release; (ii) you should consult with an attorney prior to signing this Release (although you may choose voluntarily not to do so); (iii) you have received at least twenty-one (21) days to consider this Release (although you may choose voluntarily to sign it earlier); (iv) you have taken sufficient time to consider this Release before signing it; (v) you have seven (7) days following the date you sign this Release to revoke it (by providing written notice of your revocation to me at FIGS, Inc., Attn: Catherine Spear, 2834 Colorado Avenue, Suite 100, Santa Monica, CA 90404 to be received by the Company within seven (7) days of execution); and (vi) this Release will not be effective until the date upon which the revocation period has expired, which will be the eighth (8th) day after the date that this Release is signed by you provided that you do not revoke it (the “Effective Date”).

  5.Section 1542 Waiver.  In giving the release herein, which includes claims which may be unknown to you at present, you acknowledge that you have read and understand Section 1542 of the California Civil Code, which reads as follows:

  “A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.”

  You hereby expressly waive and relinquish all rights and benefits under that section and any law of any other jurisdiction of similar effect with respect to your release of claims herein, including but not limited to your release of unknown claims.

   

   

  I have read, understand and agree fully to the foregoing Release of Claims:

   

   

  	 

  Jeffrey D. Lawrence

   

   

  Date:                           	

   

   

  ||

  

  Jeffrey D. Lawrence	

  December 9, 2021

  Page 9

   

  Exhibit B – Employee Confidential Information and Invention Assignment Agreement

  ||EX-10.15

   

       2834 Colorado Ave, Suite 100

       Santa Monica, CA 90404

   

   

   

  FIGS, Inc. 

  2834 Colorado Avenue, Suite 100

  Santa Monica, CA 90404

   

  March  8, 2022

    

  Daniella Turenshine

    

  Re: 	Employment Terms (Amendment and Restatement of Offer Letter dated October 23, 2018)

    

  Dear Daniella:

    

  This amended and restated employment letter agreement (this “Agreement”) sets forth the terms of your continued employment with FIGS, Inc. (the “Company”) in the position of Chief Financial Officer of the Company.  This Agreement amends and restates in its entirety that certain Offer Letter, dated October 23, 2018, by and between you and the Company (the “Prior Agreement”).

    

  1.Reporting; Duties.  You will be responsible for all finance and accounting activities and will continue to report directly to Catherine Spear, Co-CEO at FIGS. Of course, subject to Section 5, the Company may change your position, duties, and work location from time to time in its discretion.  You shall devote your best efforts and full business time, skill and attention to the performance of your duties.  You agree that, during your employment with the Company, you will not engage in any other employment, occupation, consulting or other business activities, nor will you engage in any other activities that conflict with your obligations to the Company.    

    

  2.Salary.  Your salary will continue to be $500,000 per year, less applicable deductions and withholdings, to be paid in accordance with the Company’s normal payroll practices, as may be in effect from time to time. 

   

  3.Performance Bonus.  You will continue to be eligible to earn an incentive bonus targeted at an amount equal to $300,000 for fiscal year 2022. The target amount of any incentive bonus for any future year shall be determined by the Board or a subcommittee thereof in its sole discretion.  Whether you receive an incentive bonus for any given year, and the amount of any such bonus, shall be determined by the Board or a subcommittee thereof in its sole discretion, and shall be based upon achievement of Company and/or individual performance objectives to be determined by Catherine Spear and the Board (or duly authorized committee thereof) and other criteria to be determined by the Board or such subcommittee. Any bonus shall be paid within thirty (30) days after the Board’s determination that a bonus shall be awarded but no later than seventy-five (75) days after the Company’s fiscal year end. Except as described below in Section 5(b)(iii), you must be employed on the day that your bonus (if any) is paid in order to earn the bonus. Therefore, if your employment is terminated either by you or the Company for any reason prior to the bonus being paid, you will not have earned the bonus and no partial or prorated bonus will be paid.

   

   

  

   

       2834 Colorado Ave, Suite 100

       Santa Monica, CA 90404

   

   

  4.Benefits.  You will be eligible to participate in the Company’s standard benefit programs, subject to the terms and conditions of such plans. The Company may, from time to time, change these benefits in its discretion.

   

  5.Severance.

   

  a.Termination For Cause; Resignation without Good Reason. If, at any time, the Company terminates your employment for Cause (as defined herein), or if you resign without Good Reason (as defined herein), or if either party terminates your employment as a result of your death or disability, you will receive your base salary accrued through your last day of employment, as well as any unused vacation (if applicable) accrued through your last day of employment. Under these circumstances, you will not be entitled to any other form of compensation from the Company, including any severance benefits.

   

  b.Termination without Cause; Resignation for Good Reason. If the Company terminates your employment without Cause, or you resign for Good Reason, and other than as a result of your death or disability, then subject to your obligations below, you shall be entitled to receive the following severance benefits (collectively, the “Severance Benefits”):

   

  i.an amount equal to twelve (12) months of your then current base salary, paid over such twelve (12) month period, on the schedule described below (the “Salary Continuation”);

   

  ii.if you timely elect continued coverage under COBRA for yourself and your covered dependents under the Company’s group health plans following such termination or resignation of employment, then the Company shall pay the COBRA premiums necessary to continue your health insurance coverage in effect for yourself and your eligible dependents on the termination date until the earliest of (A) the close of the twelve (12) month period following the termination of your employment, (B) the expiration of your eligibility for the continuation coverage under COBRA, or (C) the date when you become eligible for health insurance coverage in connection with new employment or self-employment; and

   

  iii.if your termination without Cause or resignation for Good Reason is effective on or within twelve (12) months following a Change in Control (as defined herein), then in addition to the benefits set forth in Section 5(b)(i) and (ii), the Company will also (A) pay you, within thirty (30) days following your termination date, a lump-sum payment equal to your target bonus for the year in which your separation occurs, prorated for the amount of time that you were employed by the Company during such year; and (B) accelerate the vesting of that certain stock option and that certain restricted stock unit award each granted to you by the Company on December 9, 2021 (together, the “Equity Awards”) such that the Equity Awards will be deemed fully vested and exercisable as of your last day of employment with the Company.

   

  Such Severance Benefits are conditional upon (a) your continuing to comply with your obligations under your Employee Confidential Information and Invention Assignment Agreement; and (b) your delivering to the Company an effective, general release of claims in favor of the Company in a form acceptable to the Company within thirty (30) days following your termination date. The Salary Continuation will be paid in equal installments on the Company’s regular payroll schedule over the period outlined above following 

   

  

   

       2834 Colorado Ave, Suite 100

       Santa Monica, CA 90404

   

   

  your termination date; provided, however, that no payments will be made prior to the thirtieth (30th) day following your termination date. On such thirtieth (30th) day, the Company will pay you in a lump sum the Salary Continuation that you would have received on or prior to such date under the original schedule but for the delay while waiting for such thirtieth (30th) day, with the balance of the Salary Continuation being paid as originally scheduled.

   

  6.Definitions. 

   

  a.Cause. For purposes of this Agreement, “Cause” shall mean one or more of the following: (i) your willful failure substantially to perform your duties and responsibilities to the Company or violation of a Company policy; (ii) your commission of any act of fraud, embezzlement, dishonesty or any other misconduct that has caused or is reasonably expected to result in material injury to the Company; (iii) your unauthorized use or disclosure of any proprietary information or trade secrets of the Company or any other party to whom you owe an obligation of nondisclosure as a result of your relationship with the Company; or (iv) your material breach of any of your obligations under any written agreement or covenant with the Company. The determination as to whether you are being terminated for Cause shall be made in good faith by the Company and shall be final and binding. The foregoing definition does not in any way limit the Company’s ability to terminate your employment at any time.

   

  b.Change in Control. For purposes of this Agreement, “Change in Control” means: (i) any consolidation or merger of the Company with or into any other corporation or other entity or person, other than any such consolidation or merger in which the holders of shares of capital stock of the Company immediately prior to such consolidation or merger continue to hold equity interests representing a majority of the voting power of the surviving entity (or, if the surviving entity is a wholly owned subsidiary, equity interests in its parent) immediately after such consolidation or merger; (ii) any transaction or series of related transactions in which in excess of 50% of the Company’s voting power is transferred; provided, that a Change-of-Control shall not include any transaction or series of transactions principally for bona fide equity financing purposes in which cash is received by the Company or any successor or indebtedness of the Company is canceled or converted or a combination thereof; provided, further, that a Change-of-Control shall not include any transaction or series of transactions in which in excess of 50% of the voting power of Tulco, LLC is transferred; or (iii) a sale, transfer, lease, exclusive license or other disposition of all or substantially all of the assets of the Company in a single transaction or series of related transactions.

   

  c.Good Reason. For purposes of this Agreement, “Good Reason” means the occurrence of any of the following events without your consent: (i) a material reduction in your responsibilities or duties, provided, that neither a change in your title nor a reassignment following a Change in Control to a position that is substantially similar to the position held prior to such transaction shall constitute a material reduction in job responsibilities; (ii) a relocation of your work location to a location more than twenty-five (25) miles from the location at which you performed your duties immediately prior to the relocation; (iii) the Company’s material breach of any of its obligations under this Agreement; or (iv) a material reduction in your base salary; provided, however, that any such termination shall only be deemed for Good Reason pursuant to this definition if: (A) you give the Company written notice, within thirty (30) days following the first occurrence of the condition(s) that you believe constitute(s) Good Reason, which notice shall describe such condition(s), of your intent to terminate for Good Reason; (B) the Company fails to remedy such condition(s) within thirty (30) days following receipt of such written notice (such 30-day period, the 

   

  

   

       2834 Colorado Ave, Suite 100

       Santa Monica, CA 90404

   

   

  “Cure Period”); and (C) you voluntarily terminate your employment within thirty (30) days following the end of the Cure Period.

   

  7.Section 409A. It is intended that all of the severance benefits and other payments payable under this Agreement satisfy, to the greatest extent possible, the exemptions from the application of Section 409A of the Internal Revenue Code of 1986, as amended, and the Department of Treasury regulations and other guidance promulgated thereunder (“Code Section 409A”) provided under Treasury Regulation Sections 1.409A-1(b)(4) and 1.409A-1(b)(9), and this Agreement will be construed to the greatest extent possible as consistent with those provisions. For purposes of Code Section 409A (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), your right to receive any installment payments under this Agreement (whether severance payments, reimbursements or otherwise) shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment hereunder shall at all times be considered a separate and distinct payment. No amount that is deferred compensation subject to Code Section 409A shall be payable pursuant to Agreement unless your termination of employment constitutes a “separation from service” from the Company within the meaning of Code Section 409A (a “Separation from Service”).   Notwithstanding any provision to the contrary in this Agreement, if you are deemed by the Company at the time of your Separation from Service to be a “specified employee” for purposes of Code Section 409A(a)(2)(B)(i), and if any of the payments upon Separation from Service set forth herein and/or under any other agreement with the Company are deemed to be “deferred compensation”, then to the extent delayed commencement of any portion of such payments is required in order to avoid a prohibited distribution under Code Section 409A(a)(2)(B)(i) and the related adverse taxation under Section 409A, such payments shall not be provided to you prior to the earliest of (i) the first business day following the expiration of the six-month period measured from the date of your Separation from Service with the Company, (ii) the date of your death or (iii) such earlier date as permitted under Section 409A without the imposition of adverse taxation. Upon the first business day following the expiration of such applicable Code Section 409A(a)(2)(B)(i) period, all payments deferred pursuant to this paragraph shall be paid in a lump sum to you, and any remaining payments due shall be paid as otherwise provided herein or in the applicable agreement. No interest shall be due on any amounts so deferred.

   

  8.Confidentiality Obligations.  As a Company employee, you will be expected to abide by Company rules and policies. As a condition of employment, you previously signed and must continue to comply with the attached Employee Confidential Information and Inventions Assignment Agreement, dated October 23, 2018, which prohibits unauthorized use or disclosure of the Company’s proprietary information, among other obligations.  In your work for the Company, you will be expected not to use or disclose any confidential information, including trade secrets, of any former employer or other person to whom you have an obligation of confidentiality. Rather, you will be expected to use only that information which is generally known and used by persons with training and experience comparable to your own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by the Company. You agree that you will not bring onto Company premises any unpublished documents or property belonging to any former employer or other person to whom you have an obligation of confidentiality. You hereby represent that you have disclosed to the Company any contract you have signed that may restrict your activities on behalf of the Company. 

   

  9.At-Will Employment.  You may terminate your employment with the Company at any time and for any reason whatsoever simply by notifying the Company. Likewise, the Company may terminate your 

   

  

   

       2834 Colorado Ave, Suite 100

       Santa Monica, CA 90404

   

   

  employment at any time, with or without cause or advance notice.  Your employment at-will status can only be modified in a written agreement signed by you and by an officer of the Company.

    

  10.Arbitration.

   

  a.Agreement to Arbitrate All Disputes. To ensure the timely and economical resolution of disputes that may arise between you and the Company, both you and the Company mutually agree that pursuant to the Federal Arbitration Act, 9 U.S.C. §1-16, and to the fullest extent permitted by applicable law, you will submit solely to final, binding and confidential arbitration any and all disputes, claims, or causes of action arising from or relating to: (i) the negotiation, execution, interpretation, performance, breach or enforcement of this Agreement; or (ii) your employment with the Company (including but not limited to all statutory claims); or (iii) the termination of your employment with the Company (including but not limited to all statutory claims). BY AGREEING TO THIS ARBITRATION PROCEDURE, BOTH YOU AND THE COMPANY WAIVE THE RIGHT TO RESOLVE ANY SUCH DISPUTES THROUGH A TRIAL BY JURY OR JUDGE OR THROUGH AN ADMINISTRATIVE PROCEEDING.

   

  b.Arbitrator Authority. The Arbitrator shall have the sole and exclusive authority to determine whether a dispute, claim or cause of action is subject to arbitration under this Arbitration section and to determine any procedural questions which grow out of such disputes, claims or causes of action and bear on their final disposition.

   

  c.Individual Capacity Only. All claims, disputes, or causes of action under this Arbitration section, whether by you or the Company, must be brought solely in an individual capacity, and shall not be brought as a plaintiff (or claimant) or class member in any purported class or representative proceeding, nor joined or consolidated with the claims of any other person or entity. The Arbitrator may not consolidate the claims of more than one person or entity, and may not preside over any form of representative or class proceeding. To the extent that the preceding sentences in this paragraph are found to violate applicable law or are otherwise found unenforceable, any claim(s) alleged or brought on behalf of a class shall proceed in a court of law rather than by arbitration.

   

  d.Arbitration Process. Any arbitration proceeding under this Arbitration section shall be presided over by a single arbitrator and conducted by JAMS, Inc. (“JAMS”) in Los Angeles, CA under the then applicable JAMS rules for the resolution of employment disputes (available upon request and also currently available at http://www.jamsadr.com/rules-employment-arbitration/). You and the Company both have the right to be represented by legal counsel at any arbitration proceeding, at each party’s own expense. The Arbitrator shall: (i) have the authority to compel adequate discovery for the resolution of the dispute; (ii) issue a written arbitration decision, to include the arbitrator’s essential findings and conclusions and a statement of the award; and (iii) be authorized to award any or all remedies that you or the Company would be entitled to seek in a court of law. The Company shall pay all JAMS arbitration fees in excess of the amount of court fees that would be required of you if the dispute were decided in a court of law.

   

  e.Excluded Claims. This Arbitration section shall not apply to any action or claim that cannot be subject to mandatory arbitration as a matter of law, including, without limitation, claims brought pursuant to the California Private Attorneys General Act of 2004, as amended, the California Fair Employment and Housing Act, as amended, and the California Labor Code, as amended, to the extent such 

   

  

   

       2834 Colorado Ave, Suite 100

       Santa Monica, CA 90404

   

   

  claims are not permitted by applicable law to be submitted to mandatory arbitration and such applicable law is not preempted by the Federal Arbitration Act or otherwise invalid (collectively, the “Excluded Claims”). In the event you intend to bring multiple claims, including one of the Excluded Claims listed above, the Excluded Claims may be filed with a court, while any other claims will remain subject to mandatory arbitration.

   

  f.Injunctive Relief and Final Orders. Nothing in this Arbitration section is intended to prevent either you or the Company from obtaining injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration. Any final award in any arbitration proceeding hereunder may be entered as a judgment in the federal and state courts of any competent jurisdiction and enforced accordingly.

   

  11.Taxes.  All payments to you under this Agreement will be subject to any required withholding of federal, state and local taxes pursuant to any applicable law or regulation, and the Company and its affiliates are entitled to withhold any and all such taxes from amounts payable under this Agreement.

   

  12.Miscellaneous. This Agreement, together with your Employee Confidential Information and Inventions Assignment Agreement, forms the complete and exclusive statement of your employment agreement with the Company. It supersedes and replaces any and all prior agreements or representations with regard to the subject matter hereof, whether written or oral (including the Prior Agreement). It is entered into without reliance on any promise or representation other than those expressly contained herein, and it cannot be modified, amended or extended except in a writing signed by you and a duly authorized member of the Board. This Agreement is intended to bind and inure to the benefit of and be enforceable by you and the Company, and our respective successors, assigns, heirs, executors and administrators, except that you may not assign any of your duties or rights hereunder without the express written consent of the Company. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but this Agreement will be reformed, construed and enforced as if such invalid, illegal or unenforceable provisions had never been contained herein. This Agreement shall be governed by the laws of the State of California.

   

  Please sign and date this Agreement and return it to me by March 8, 2022.  We look forward to your favorable reply and to continuing a productive and enjoyable work relationship. 

   

   

  Sincerely,

  			
	 
	 
	 

	 
	 
	 

	/s/ Catherine Spear
	 
	/s/ Heather Hasson

	Catherine Spear, Co-CEO
	 
	Heather Hasson, Co-CEO

   

   

  

   

       2834 Colorado Ave, Suite 100

       Santa Monica, CA 90404

   

   

   

  			
	 
Understood and Accepted:
	 
	 

	 
	 
	 

	 
	 
	 

	/s/ Daniella Turenshine
	 
	March 8, 2022

	Daniella Turenshine
	 
	Date

   

  Attachment: Employee Confidential Information and Inventions Assignment Agreement

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