Document:

EX-10.1

 EXHIBIT 10.1 
  

 
 FaZe Holdings Inc. 

EMPLOYMENT AGREEMENT – CHRISTOPH PACHLER 

This Employment Agreement (the “Agreement”) is entered into on a mutually agreed upon date no later than October 3, 2022 by and between
FaZe Holdings Inc., a Delaware corporation (the “Company”), and Christoph Pachler (the “Executive”). 
 WHEREAS, Company wishes to
employ the Executive as its Chief Financial Officer and the Executive agrees to accept such employment on the terms and conditions set forth herein. 

NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein, and for other valuable consideration, the Company and the
Executive hereby agree as follows: 
 1.        Certain Definitions. Capitalized terms
shall have the meanings set forth on Exhibit A attached hereto. 
 2.        Term of
Employment. The initial term under this Agreement shall begin on the Effective Date and continue until the third anniversary thereof, unless terminated earlier pursuant to Section 6 hereof (the “Initial Term”). The
Agreement, thereafter, shall automatically be renewed for successive one (1) year periods (each a “Subsequent Term”) (together with the Initial Term, the “Term of Employment”) on the same terms and conditions as applied
during the Initial Term hereof, unless either party hereto gives written notice of its intent not to renew this Agreement (“Non-Renewal Notice”) at least thirty (30) days prior to the expiration
of the Initial Term or any Subsequent Term or unless earlier terminated in accordance with Section 6 hereof. 

3.        Executive’s Duties and Obligations. 

(a)         Duties. The Executive shall serve as the Company’s Chief
Financial Officer. The Executive shall perform all of the functions, and have of the authority, that are consistent with such position, as determined by the Company. The Executive shall report directly to the Company’s CEO and shall be
subject to reasonable policies established by the Company. 

(b)         Location of Employment. The Executive’s principal place of
business shall be at the Company’s office in Los Angeles, CA. In addition, the Executive acknowledges and agrees that the performance by the Executive of the Executive’s duties may require frequent travel. 

(c)         Ancillary Agreements. In consideration of the covenants contained
herein, the Executive shall execute concurrently with the execution of this Agreement, and agrees to be bound by, the Company’s (i) Proprietary Information Protection and, Inventions Assignment Agreement (the “Confidentiality
Agreement”), (ii) Assumption of Risk & Release of Liability for Hazardous Activities Agreement, (iii) Dispute Resolution Agreement, and (iv) Image Release Form, each of which is attached to this Agreement as Exhibit B and
incorporated into this Agreement by reference. The Executive shall comply at all times with the covenants (including, without limitation, covenants not to use confidential and proprietary information to solicit employees and independent contractors)
and other terms and conditions of the Confidentiality Agreement and all other reasonable policies of the Company governing the confidential and assignment of the Company’s proprietary information. The Executive’s obligations under the
Confidentiality Agreement and the other agreements attached hereto in Exhibit B shall survive the Term of Employment. 

  
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 4.        Devotion of Time to the Company’s
Business; Employee Representations.  

(a)         Full-Time Efforts. During the Term of Employment, the Executive
shall devote substantially all of the Executive’s business time, attention and effort to the affairs of the Company, excluding any periods of disability, vacation, or sick leave to which Executive is entitled, and shall use the Executive’s
reasonable best efforts to perform the duties properly assigned to the Executive hereunder and to promote the interests of the Company. 

(b)         Other Activities. Executive may serve on corporate, civic or
charitable boards or committees with the prior approval of the Board, which approval shall not be unreasonably withheld, deliver lectures, fulfill speaking engagements and may manage personal investments that do not give rise to a conflict of
interest through the Executive’s investment in direct competitors of the Company; provided that such activities do not individually or in the aggregate significantly interfere with the performance of the Executive’s duties under this
Agreement. The Executive’s passive investment in securities of a publicly-held company will not be considered to give rise to a conflict of interest if the Executive owns not more than 5% of the outstanding securities of such publicly-held
company. 
 (c)         Employee Representations. Executive represents and
warrants that he is not subject to any employment, non-competition, non-solicitation or non-disclosure agreement that would
affect his ability to be employed with the Company. In the event that he is in possession of any confidential non-public information by virtue of any prior employment, he further represents and warrants that
he will not engage in any activity that is inconsistent with the rights of such prior employer which could subject the Company to liability. 

5.        Compensation and Benefits.  

(a)         Base Salary. The Company shall pay to the Executive in accordance
with its normal payroll practices (but not less frequently than monthly) an annual salary at a rate of not less than $375,000 per annum (“Base Salary”). The Executive’s Base Salary shall be reviewed at least annually for the
purposes of determining increases, if any, based on the Executive’s performance, the performance of the Company, the then prevailing salary scales for comparable positions, inflation and other relevant factors. Effective as of the date of any
increase in the Executive’s Base Salary, Base Salary as so increased shall be considered the new Base Salary for all purposes of this Agreement. 

(b)         Discretionary Annual Bonus. The Company shall pay the Executive
an annual discretionary cash bonus (“Annual Bonus”) during the Term of Employment, dependent on Company financial and individual performance. During the first quarter of each Fiscal Year beginning after the Executive’s employment
commencement date, the Compensation Committee of the Board (the “Compensation Committee”) shall establish threshold and target performance goals for the earning of an Annual Bonus for such Fiscal Year. The Executive will have each Fiscal
Year an Annual Bonus target of 100% of Base Salary, with a maximum opportunity of 200% of Base Salary dependent on Company financial and individual performance. If 75% of both Company and individual target performance goals for a Fiscal Year are
met, the Annual Bonus for such Fiscal Year shall not be less than 50% of the Executive’s bonus target. At the conclusion of the Fiscal Year the Compensation Committee will review performance relative to the performance goals and if the
Compensation Committee determines that the Executive is eligible to earn an Annual Bonus for a Fiscal Year, the Company will pay the Annual Bonus to the Executive on or before March 15 of the year following the end of the year for which the
Annual Bonus is earned. The Annual Bonus will be pro-rated 50% for the first Fiscal Year of employment. Except as provided in Section 6 hereof and notwithstanding anything in the foregoing provisions of
this Section 5(b), the Executive will not be eligible to earn an Annual Bonus or any Minimum Bonus for a Fiscal Year unless the Executive remains in continuous employment with the Company through the date on which such Annual Bonus is paid.

 (c)         Equity Awards. The Company shall grant to the Executive
Equity Awards from time to time in the sole discretion of the Board (or, as applicable, Compensation Committee). 

  
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	 	(i)	 The Company shall recommend to the Board that the Executive be granted a sign-on
Equity Award of 20,000 restricted stock units under the Equity Plan, subject to time-based vesting, with 50% vesting on the first anniversary of the vesting commencement date (to be specified in the relevant award agreement) and the remaining 50%
vesting on the second anniversary of the vesting commencement date, subject to the Executive’s continued employment. 

  

	 	(ii)	 The Company shall recommend to the Board that the Executive be granted an additional Equity Award of 500,000 restricted
stock units under the Equity Plan, with the following vesting terms: (i) 166,667 restricted stock units subject to time-based vesting, with 50% vesting on the first anniversary of the vesting commencement date (to be specified in the relevant award
agreement) and the remaining 50% vesting on the second anniversary of the vesting commencement date, subject to the Executive’s continued employment; (ii) 166,667 restricted stock units subject to vesting based on achievement of Company
performance goals measured on a Fiscal Year basis, as well as the Executive’s continued employment, with 50% vesting on the first anniversary of the vesting commencement date and 50% vesting on the second anniversary of the vesting commencement
date, in each case only to the extent the Company performance goals have been met as of such applicable vesting date; and (iii) 166,666 restricted stock units subject to vesting based on achievement of individual performance goals measured on a
Fiscal Year basis, as well as the Executive’s continued employment, with 50% vesting on the first anniversary of the vesting commencement date and 50% vesting on the second anniversary of the vesting commencement date, in each case only to the
extent the individual performance goals have been met as of such applicable vesting date. 

  

	 	(iii)	 All Equity Awards will be subject to the terms of the Equity Plan and such other terms and conditions as determined by
the Board in its sole discretion and set forth in a separate Equity Award agreement. In the event of any conflict between the terms of the terms of an Equity Award agreement and the terms of this Agreement, the terms of the Equity Award agreement
will govern. 

 (d)         Benefits. During the Term of
Employment, the Executive shall be eligible to participate in all employee benefit plans, programs and arrangements made available generally to the Company’s senior executives or to other full-time employees in accordance with the terms of such
plans on substantially the same basis that such benefits are provided to such senior executives at a similar level to that of the Executive or to other full-time employees (including, without limitation, a 401(k) retirement plan, medical, dental,
flexible spending account, commuter benefits, hospitalization, vision, short-term and long-term disability, and life insurance, accidental death and dismemberment protection, and any other fringe benefit or employee welfare benefit plans or programs
that may be sponsored by the Company from time to time, including any plans or programs that supplement the above-listed types of plans or programs, whether funded or unfunded); provided, however, that during the Term of Employment, the Executive
shall not be eligible to participate in any generally available severance benefit plan, program or arrangement sponsored or maintained by the Company. Nothing in this Section 3(d) of the Agreement shall be construed to require the Company to
establish or maintain any such fringe or employee benefit plans, programs or arrangements and the Company reserves the right to amend, modify or terminate any such fringe or employee benefit plan. 

  
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 (e)         Vacations.
During the Term of Employment, the Executive shall be entitled to paid time off in accordance with the Company’s Flexible Vacation Policy for US Exempt Employees. 

(f)         Reimbursement of Expenses. During the Term of Employment, the
Executive shall be entitled to receive prompt reimbursement for all reasonable business- or employment-related expenses incurred by the Executive upon the receipt by the Company of reasonable documentation in accordance with standard practices,
policies and procedures applicable to other senior executives of the Company. The Executive will obtain written consent from the Company’s CEO prior to incurring any single expense in excess of $5,000. 

6.        Termination of Employment. The Term of Employment shall be automatically
terminated upon the first to occur of the following: 
 (a)         Death.
The Executive’s employment shall terminate immediately upon the Executive’s death. 

(b)         Disability. If the Executive is Disabled, to the extent
permissible under applicable law, either party may terminate the Executive’s employment due to such Disability upon delivery of written notice to the other party. The effective date of such termination of employment will be the Date of
Termination set forth in such written notice or immediately upon delivery of such written notice if no effective date is specified in the written notice. For avoidance of doubt, if the Executive’s employment is terminated pursuant to this
Section 6(b), the Executive’s employment will not constitute a termination of employment by the Company without Cause or by the Executive for Good Reason. 

(c)         Termination by the Executive Without Good Reason. The Executive
may terminate the Executive’s employment for any reason other than Good Reason, in which case the Executive agrees to deliver written notice to the Company at least thirty (30) days prior to the Executive’s Date of Termination. 

(d)         Termination by the Executive for Good Reason. The Executive may
terminate the Executive’s employment for Good Reason if (i) not later than ninety (90) days after the occurrence of any act or omission that constitutes Good Reason, the Executive provides the Company with a written notice setting
forth in reasonable detail the acts or omissions that constitute Good Reason, (ii) the Company fails to correct or cure the acts or omissions within thirty (30) days after it receives such written notice, and (iii) the Executive
terminates the Executive’s employment with the Company after the expiration of such cure period but not later than sixty (60) days after the expiration of such cure period. 

(e)         Termination by the Company Without Cause. The Company may
terminate the Executive’s employment without Cause upon delivery of written notice to the Executive. 

(f)         Termination by the Company for Cause. The Company may terminate
the Executive’s employment for Cause upon delivery of written notice to the Executive; however, if termination for Cause is based on any act or omission that constitutes Cause under Exhibit A (i) or (ii), below, the Company may terminate
Executive only after providing Executive with at least thirty (30) days’ notice of its intent to terminate Executive for Cause and permitting Executive the right, either individually or through his counsel, to present evidence to the
contrary to the Company. If, following the notice period and Executive’s right to present evidence, the Company determines that Executive’s employment should be terminated for Cause, Executive’s employment will terminate immediately
upon written notice by the Company to Executive stating that Executive’s employment is being terminated for Cause. 

(g)         Termination by the Company or Executive Due to Non-Renewal of the Agreement. The Executive’s employment shall terminate automatically on the last day of the then-applicable term after either party gives the
Non-Renewal Notice in line with Section 2. 

  
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 7.        Compensation and Benefits Payable Upon of
Termination of Employment.  
 (a)         Payment of
Accrued But Unpaid Compensation and Benefits. Upon the Executive’s termination of employment for any reason, the Executive (or the Executive’s estate following the Executive’s death) shall receive (i) a lump sum payment on
the Date of Termination in an amount equal to the sum of the Executive’s earned but unpaid Base Salary through the Date of Termination; plus (ii) any other benefits or rights the Executive has accrued or earned through the Date of
Termination in accordance with the terms of the applicable fringe or employee benefit plans and programs of the Company (including any vested rights the Executive may have to outstanding Equity Awards pursuant to the terms of such Equity Awards).
Except as provided in Section 7(b) or (c) below or as expressly provided pursuant to the terms of any employee benefit plan, the Executive will not be entitled to earn or accrue any additional compensation or benefits for any period
following the Date of Termination. 
 (b)         Termination of Employment Due to
Death or Disability During the Initial Term or any Subsequent Term. In addition to the compensation and benefits payable under Section 7(a) above, if the Executive’s employment is terminated due to death or Disability during the
Initial Term or any Subsequent Term and, in the case of Disability, the Executive returns an executed Release (as defined below) to the Company, which becomes final, binding and irrevocable within the Release Period (as defined below), the Executive
(or the Executive’s estate following the Executive’s death) shall receive: 
  

	 	(i)	 the Executive’s accrued but unpaid Annual Bonus, if any, for the Fiscal Year ended prior to the Termination Date
payable at the same time such annual bonuses for such Fiscal Year are paid to other key executives of the Company; 

  

	 	(ii)	 provided the Executive elects within thirty (30) days of the Date of Termination to obtain continuation group health
insurance coverage under COBRA, and subject to Executive’s substantiation of his COBRA expenses, reimbursement of the COBRA premiums paid by the Executive for continuation of the coverage in effect at the Date of Termination for the Executive
and the Executive’s spouse and dependents under the Company’s group health, dental and vision plans for the lesser of twelve (12) months or the maximum COBRA continuation period. 

(c)         Termination of Employment by the Company without Cause or by the Executive
for Good Reason During the Initial Term or any Subsequent Term. In addition to the compensation and benefits payable under Section 7(a) above, if the Executive’s employment is terminated (i) by the Company without Cause, or
(ii) by the Executive for Good Reason during the Initial Term or any Subsequent Term, and the Executive returns an executed Release to the Company, which becomes final, binding and irrevocable within seventy (70) days following the
Executive’s Date of Termination in accordance with Section 8 (the “Release Period”), the Executive (or the Executive’s estate following the Executive’s death) shall receive: 

 

	 	(i)	 the Executive’s accrued but unpaid Annual Bonus, if any, for the Fiscal Year ended prior to the Termination Date
payable at the same time annual bonuses for such Fiscal Year are paid to other key executives of the Company; 

  

	 	(ii)	 the Executive’s Annual Bonus, if any, payable for the Fiscal Year in which the Executive’s employment is
terminated based on actual Fiscal Year performance, payable at the same time annual bonuses for such Fiscal Year are paid to other key executives of the Company and no later than the deadline set forth in Section 5(b) above;

  
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	 	(iii)	 if the Executive’s Date of Termination does not occur during the Post-Change in Control Period:

  

	 	A.	 continued payment of the Executive’s Base Salary (without regard to any reduction in Base Salary that constitutes
Good Reason) in accordance with the Company’s payroll practices for twelve (12) months following the Date of Termination; and 

  

	 	B.	 provided the Executive elects within thirty (30) days of the Date of Termination to obtain continuation group health
insurance coverage under COBRA, and subject to Executive’s substantiation of his COBRA expenses, reimbursement of the COBRA premiums paid by the Executive for continuation of the coverage in effect at the Date of Termination for the Executive
and the Executive’s spouse and dependents under the Company’s group health, dental and vision plans for the lesser of twelve (12) months or the maximum COBRA continuation period; and 

 

	 	(iv)	 if the Executive’s Date of Termination occurs during the Post-Change in Control Period: 

 

	 	A.	 a lump sum payment upon the Date of Termination in an amount equal to the Executive’s Base Salary (without regard to
any reduction in Base Salary that constitutes Good Reason) for twelve (12) months; and 

  

	 	B.	 provided the Executive elects within thirty (30) days of the Date of Termination to obtain continuation group health
insurance coverage under COBRA, and subject to Executive’s substantiation of his COBRA expenses, reimbursement of the COBRA premiums paid by the Executive for continuation of the coverage in effect at the Date of Termination for the Executive
and the Executive’s spouse and dependents under the Company’s group health, dental and vision plans for the lesser of twelve (12) months or the maximum COBRA continuation period. 

Notwithstanding the foregoing, no payment that is otherwise required to be paid to the Executive pursuant to Section 7(b) or this Section 7(c)
before the Release becomes final, binding and irrevocable shall be paid to the Executive until the Release becomes final, binding and irrevocable; further, if the Company cannot provide the post-termination COBRA coverage under
Section 7(b)(ii), Section 7(c)(iii)(B) or Section 7(c)(iv)(B) without adverse tax consequences to the Company or the Executive or for any other reason, then the Company will, in lieu of such post-termination coverage, pay the
Executive a taxable monthly amount equal to the COBRA premiums payable for the Executive’s group health insurance coverage as of the Date of Termination, which payment shall be made in substantially equal monthly installments over the twelve
(12) month period following the Date of Termination (or the remaining portion thereof). In addition, if the Executive materially breaches this Agreement or the Executive’s Confidentiality Agreement, then the Company’s continuing
obligations under Section 7(b) and Section 7(c) shall cease as of the date of the breach and the Executive shall be entitled to no further payments hereunder. 

(d)         Termination by the Company or Executive Due to
Non-Renewal. If the Executive’s employment ends by virtue of non-renewal of the Agreement where the Company or Executive has provided the Non-Renewal Notice in accordance with Section 2, Executive will be entitled to compensation and benefits payable under Section 7(a) above only. 

  
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 8.        Release. As a condition
of receiving the compensation and benefits described in Section 7(b) and Section 7(c), Executive must execute a general waiver and release of any and all claims arising out of Executive’s employment with the Company or
Executive’s separation from such employment (including, without limitation, claims relating to age, disability, sex or race discrimination to the extent permitted by law), excepting (a) claims based on breach of the Company’s
obligations to pay the earned compensation and benefits described in Sections 5 or 7 of this Employment Agreement, (b) claims arising under the Age Discrimination in Employment Act after the date Executive signs such release, and (c) any
right to indemnification by the Company or to coverage under directors and officers liability insurance to which Executive is otherwise entitled in accordance with this Agreement and the Company’s articles of incorporation or by laws or other
agreement between Executive and the Company (the “Release”). Such Release shall be in a form tendered to the Executive by the Company within ten (10) business days following the termination of the Executive’s employment by the
Company without Cause, by the Executive for Good Reason, or due to Disability, which shall comply with any applicable legislation or judicial requirements, including, but not limited to, the Older Workers Benefit Protection Act, if applicable. The
compensation and benefits described in Section 7(b) and Section 7(c) will not be paid to the Executive if the Executive fails to execute the Release within the Release Period or if the Executive revokes the Release within the applicable
revocation period set forth in such Release. 

9.          Indemnification. The Company shall indemnify Executive to the
fullest extent provided by the Company’s bylaws. Additionally, Executive shall be covered by such Directors and Officers insurance coverage as then in effect by the Company. 

10.        Mitigation of Damages. The Executive will not be required to mitigate
damages or the amount of any payment or benefit provided for under this Agreement by seeking other employment or otherwise. The amount of any payment or benefit provided for under this Agreement will not be reduced by any compensation or benefits
earned by the Executive as the result of self-employment or employment by another employer or otherwise. 

11.        Notices. All notices, requests, demands and other communications
hereunder shall be in writing and shall be deemed to have been duly given if delivered by hand or mailed within the continental United States by first class certified mail, return receipt requested, postage prepaid, with a copy to the email address
listed below, addressed as follows: 
 If to the Board or the Company: 

FaZe Holdings Inc. 
 Attention: Lee Trink, CEO 

720 N. Cahuenga Boulevard 
 Los Angeles, CA 90038

 Email: to LT@FaZeClan.com

 If to the Executive: 
 To the address
on file with the records of the Company. 
 Addresses may be changed by written notice sent to the other party at the last recorded address of that
party. 
 12.        Withholding. The Company shall be entitled to withhold
from payments due hereunder any required federal, state or local withholding or other taxes. 

13.        Miscellaneous.  

  (a)         Governing Law. This Agreement shall be interpreted,
construed, governed and enforced according to the laws of the State of California without regard to the application of 

  
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choice of law rules and the federal courts and/or state courts of the State of California, County of Los Angeles shall have exclusive jurisdiction to adjudicate any dispute arising out of this
Agreement and/or employment relationship or termination thereof and Executive consents to such jurisdiction and venue. 

(b)         Entire Agreement. This Agreement, together with the Exhibits
attached hereto, contains the entire agreement between the parties with respect to the subject matter hereof and supersedes any and all other prior agreements, promises, understandings and representations regarding the Executive’s employment,
compensation, severance or other payments contingent upon the Executive’s termination of employment, whether written or otherwise, including but not limited to the Prior Agreement. 

(c)         Amendments. No amendment or modification of the terms or
conditions of this Agreement shall be valid unless in writing and signed by the parties hereto. 

(d)         Severability. If one or more provisions of this Agreement are
held to be invalid or unenforceable under applicable law, such provisions shall be construed, if possible, so as to be enforceable under applicable law, or such provisions shall be excluded from this Agreement and the balance of the Agreement shall
be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms. 

(e)         Binding Effect. This Agreement shall be binding upon and inure to
the benefit of the beneficiaries, heirs and representatives of the Executive and the successors and assigns of the Company. The Company shall require any successor (whether direct or indirect, by purchase, merger, reorganization, consolidation,
acquisition of property or stock, liquidation, or otherwise) to all or substantially all of its assets, by agreement in form and substance satisfactory to the Executive, expressly to assume and agree to perform this Agreement in the same manner and
to the same extent that the Company would be required to perform this Agreement if no such succession had taken place. Regardless whether such agreement is executed, this Agreement shall be binding upon any successor of the Company in accordance
with the operation of law and such successor shall be deemed the Company for purposes of this Agreement. 

(f)         Successors and Assigns; Nonalienation of Benefits. Except as
provided in Section 13(e) in the case of the Company, or to the Executive’s estate and heirs in the case of the death of the Executive, this Agreement is not assignable by any party. Compensation and benefits payable to the Executive under
this Agreement shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution or levy of any kind, either voluntary or involuntary, prior to actually being received by
the Executive or the Executive’s estate, as applicable, and any such attempt to dispose of any right to benefits payable hereunder shall be void, and no payment to be made hereunder shall be subject to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance or other charge. 
 (g)         Remedies
Cumulative; No Waiver. No remedy conferred upon either party by this Agreement is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition to any other remedy given hereunder or
now or hereafter existing at law or in equity. No delay or omission by either party in exercising any right, remedy or power hereunder or existing at law or in equity shall be construed as a waiver thereof, and any such right, remedy or power may be
exercised by such party from time to time and as often as may be deemed expedient or necessary by such party in such party’s sole discretion. 

(h)         Survivorship. Notwithstanding anything in this Agreement to the
contrary, all terms and provisions of this Agreement that by their nature extend beyond the Date of Termination shall survive termination of this Agreement. 

  
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 (i)         Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute one document. 

(j)         Work Eligibility. This offer is also contingent upon proof of
identity and work eligibility. Under the Immigration Reform and Control Act of 1986, employers are required to verify the identity and employment eligibility of all new hires within three (3) business days of their first day of work. To assist
the Company in complying with this requirement, the Executive shall bring appropriate documents with him on his first day. 

14.        Section 409A of the Code. The intent of the parties is that payments and
benefits under this Agreement comply with, or be exempt from, Section 409A of the Code and, accordingly, to the maximum extent permitted, this Agreement shall be construed and interpreted in accordance with such intent. The Executive’s
termination of employment (or words to similar effect) shall not be deemed to have occurred for purposes of this Agreement unless such termination of employment constitutes a “separation from service” within the meaning of Code
Section 409A and the regulations and other guidance promulgated thereunder. 
 Notwithstanding any provision in this Agreement to the contrary,
if the Executive is deemed on the date of the Executive’s separation from service to be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B) and using the identification methodology selected by
the Company from time to time, or if none, the default methodology set forth in Code Section 409A, then with regard to any payment or any benefit that constitutes “non-qualified deferred
compensation” pursuant to Code Section 409A and the regulations issued thereunder that is payable due to the Executive’s separation from service, to the extent required to be delayed in compliance with Code Section 409A(a)(2)(B),
such payment or benefit shall not be made or provided to the Executive prior to the earlier of (i) the expiration of the six (6)-month period measured from the date of the Executive’s separation from service, and (ii) the date of the
Executive’s death (the “Delay Period”). On the first day of the seventh month following the date of the Executive’s separation from service or, if earlier, on the date of the Executive’s death, all payments delayed pursuant
to this Section 14 shall be paid or reimbursed to the Executive in a lump sum (without interest), and any remaining payments and benefits due to the Executive under this Agreement shall be paid or provided in accordance with the normal payment
dates specified for them herein. 
 To the extent any reimbursement of costs and expenses (including reimbursement of COBRA premiums pursuant to
Section 7(b) or (c)) provided for under this Agreement constitutes taxable income to the Executive for federal income tax purposes, such reimbursements shall be made as soon as practicable after the Executive provides proper documentation
supporting reimbursement but in no event later than December 31 of the calendar year next following the calendar year in which the expenses to be reimbursed are incurred. With regard to any provision herein that provides for reimbursement of
expenses or in-kind benefits, except as permitted by Code Section 409A, (i) the right to reimbursement or in-kind benefits is not subject to liquidation or
exchange for another benefit, and (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or
in-kind benefits to be provided, in any other taxable year. 
 If under this Agreement, any amount is to be
paid in two or more installments, each such installment shall be treated as a separate payment for purposes of Section 409A. 
 Notwithstanding
anything to the contrary in this Agreement, to the extent required to comply with Section 409A of the Code, if the Release Period spans two calendar years, any severance payments to which the Executive may be entitled shall be paid or commence
on the first regularly scheduled payroll date that occurs in the second calendar year and that is after the Executive’s execution and non-revocation of the Release. 

15.        Executive Acknowledgement. The Executive hereby acknowledges that the
Executive has read and understands the provisions of this Agreement, that the Executive has been given the opportunity for the Executive’s legal counsel to review this Agreement, that the provisions of this Agreement are reasonable and that the
Executive has received a copy of this Agreement. 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Employment Agreement to be executed on
8/25/2022                        . 

FAZE HOLDINGS INC. 
  

					
	  	 	By:	 	   /s/ Lee Trink

		 	Name:	 	   Lee Trink

		 	Title:	 	   CEO

 EXECUTIVE 
  

			
	  	 	/s/ Christoph Pachler

 Christoph Pacher 

  
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 EXHIBIT A 

(a)        “Annual Bonus” shall have the meaning set forth in Section 5(b)(ii) of
the Employment Agreement. 
 (b)        “Base Salary” shall have the meaning set
forth in Section 5(a) of the Employment Agreement. 
 (c)        “Board” means
the Board of Directors of the Company. 
 (d)        “Cause” means one or more of
the following: 
  

	 	(i)	 the Executive’s willful and continuous failure to perform the Executive’s essential duties hereunder or the
lawful directives of the Board and the CEO (other than as a result of illness or injury); 

  

	 	(ii)	 the Executive’s willful misconduct or gross negligence in the performance of the Executive’s duties hereunder
that directly could reasonably be expected to materially and demonstrably impair or damage the property, goodwill, reputation, business or finances of the Company; 

 

	 	(iii)	 the conviction of, or plea of nolo contendere by, the Executive to, a felony or a crime involving moral turpitude
that could reasonably be expected to materially and demonstrably impair or damage the property, goodwill, reputation, business or finances of the Company; 

  

	 	(iv)	 the Executive’s material breach of the Executive’s obligations under the Confidentiality Agreement;

  

	 	(v)	 the Executive’s material violation of the Company’s written policies that could reasonably be expected to
materially and demonstrably impair or damage the property, goodwill, reputation, business or finances of the Company; or 

  

	 	(vi)	 the Executive’s commission of any willful acts of personal dishonesty in connection with the Executive’s
responsibilities as an employee of the Company that could reasonably be expected to materially and demonstrably impair or damage the property, goodwill, reputation, business or finances of the Company. 

(e)        “CEO” means the Company’s chief executive officer. 

(f)        “Change in Control” shall have the meaning set forth in the Equity Plan;
provided that a Change of Control shall not include the transaction(s) contemplated by that certain Agreement and Plan of Merger dated October 24, 2021, as amended, between the Company and B. Riley Principal 150 Merger Corp. 

(g)        “Change in Control Date” means any date after the date hereof on which a
Change in Control occurs. 
 (h)        “COBRA” means the Consolidated Omnibus
Budget Reconciliation Act of 1985. 

  
 A-1 

 (i)         “Code” means the
Internal Revenue Code of 1986, as amended and the regulations promulgated thereunder. 

(j)         “Confidentiality Agreement” means the Proprietary Information and
Invention Assignment Agreement between the Company and the Executive, a copy of which is attached to this Agreement as Exhibit B, pursuant to which the Executive has agreed to abide by certain covenants (including covenants to maintain not to
disclose confidential information, or to use confidential or proprietary information to solicit employees, consultants, independent contractors, gamers, talent, and business partners of the Company to reduce or cease doing business with the
Company). 
 (k)         “Date of Termination” means the date specified in a
written notice of termination delivered pursuant to Section 6 hereof, or the Executive’s last date as an active employee of the Company before a termination of employment due to the Executive’s death. 

(l)         “Disabled” or “Disability” means a mental or physical
condition that renders the Executive substantially incapable of performing the Executive’s duties and obligations under this Agreement, with or without a reasonable accommodation, as determined by a medical doctor (such doctor to be mutually
determined in good faith by the parties) for the greater of (i) 180 days (whether or not consecutive) within any twelve (12) consecutive month period, or (ii) any period in excess of any protected leave to which Executive is entitled to
under applicable law. 
 (m)       “Equity Awards” means stock options, stock
appreciation rights, restricted shares, restricted stock units, deferred stock, performance shares or performance units or any other stock-based awards granted by the Company to the Executive whether pursuant to the terms of the Equity Plan or
otherwise. 
 (n)         “Equity Plan” means the FaZe Holdings Inc. 2022
Omnibus Incentive Plan, as amended from time to time. 
 (o)         “Fiscal
Year” means the fiscal year of the Company, which is the calendar year. 

(p)         “Good Reason” means, unless the Executive has consented in writing
thereto, the occurrence of any of the following: 
  

	 	I.	 the assignment to the Executive of any duties materially inconsistent with the Executive’s position, including any
change in title, authority, duties or responsibilities or any other action which results in a material diminution in such title, authority, duties or responsibilities (excluding a reduction in title,
authority, duties or responsibilities solely by virtue of the Company being acquired and made part of, or operated as a subsidiary of, a larger company or organization as a result of a Change in Control, so long as such new title, authority, duties
and responsibilities are reasonably commensurate with the Executive’s title, authority, duties and responsibilities, then-existing immediately prior to the Change in Control); 

 

	 	II.	 any reduction in the Executive’s Base Salary; 

 

	 	III.	 the relocation of the Executive’s principal place of work without the Executive’s written consent to a location
that increases the Executive’s one-way commute from the Executive’s residence at the time such relocation becomes effective by more than ninety (90) minutes (provided that Executive’s
relocation of his own home office or travel required by the Company in the performance of Executive’s duties under this Agreement shall not constitute a “relocation”); 

  
 A-2 

	 	IV.	 the failure of the Company to obtain the assumption in writing of the Company’s obligation to perform this Agreement
by any successor to all or substantially all of the assets of the Company within thirty (30) days after a Change in Control; or 

  

	 	V.	 any material reduction in the Company’s willingness or obligation to indemnify the Executive against liability for
actions (or inaction, as the case may be) in the Executive’s capacity as an officer, director or employee of the Company; 

  

	 	VI.	 an uncured material breach of this Agreement by the Company. 

(q)         “Post-Change in Control Period” means the period beginning on the
Change in Control Date and ending twenty-four (24) months after the date of the related Change in Control. 

(r)         “Release” shall have the meaning set forth in Section 8 of the
Employment Agreement. 

  
 A-3 

 EXHIBIT B 

(1) PROPRIETARY INFORMATION AND INVENTION ASSIGNMENT AGREEMENT 

(2) ASSUMPTION OF RISK & RELEASE OF LIABILITY FOR HAZARDOUS ACTIVITIES 

(3) DISPUTE RESOLUTION AGREEMENT 
 (4) IMAGE
RELEASE FORM 

  
 B-1ex-101seventhamendmentto

  Exhibit 10.1    Execution Version  SEVENTH AMENDMENT TO GUARANTY AGREEMENT  THIS SEVENTH AMENDMENT TO GUARANTY AGREEMENT (this “Seventh  Amendment”), dated effective as of August 26, 2022, is entered into among the parties listed on  the signature pages hereof as Guarantors (collectively, the “Guarantors”), and BANK OF  AMERICA, N.A. (the “Guarantied Party”, and collectively with any Affiliates thereof, the  “Guarantied Parties”).  BACKGROUND  A. The Guarantors and the Guarantied Party are parties to that certain Guaranty  Agreement, dated as of March 1, 2013, as amended by that certain First Amendment to Guaranty  Agreement, dated as of February 7, 2014, that certain Second Amendment to Guaranty  Agreement, dated as of June 11, 2014, that certain Third Amendment to Guaranty Agreement,  dated as of January 16, 2015, that certain Fourth Amendment to Guaranty Agreement, dated as  of December 7, 2016, that certain Fifth Amendment to Guaranty Agreement, dated as of  September 8, 2018 and that certain Sixth Amendment to Guaranty Agreement, dated as of May  14, 2020 (said Guaranty Agreement, as amended, the “Guaranty Agreement”).  The terms  defined in the Guaranty Agreement and not otherwise defined herein shall be used herein as  defined in the Guaranty Agreement.  B. The parties to the Guaranty Agreement desire to make certain amendments to the  Guaranty Agreement.  C. The Guarantied Party hereby agrees to amend the Guaranty Agreement, subject to  the terms and conditions set forth herein.  NOW, THEREFORE, in consideration of the covenants, conditions and agreements  hereafter set forth, and for other good and valuable consideration, the receipt and adequacy of  which are all hereby acknowledged, the Guarantors and the Guarantied Party covenant and agree  as follows:  1. AMENDMENTS.  (a) Section 1 of the Guaranty Agreement is hereby amended by adding the following  defined terms thereto to read as follows:  “Permitted Receivables Financing” means any one or more Receivables  Financing, factoring financings and supplier financings that meets the following  conditions: (a) the board of directors of Limited or HOT-TX shall have determined in  good faith that such Receivables Financing, factoring financing or supplier financing is  in the aggregate economically fair and reasonable to Limited and its Subsidiaries, (b) all  sales of accounts receivable and related assets by Limited or any Subsidiary to a  Receivables Subsidiary or any other Person are made at fair value (as determined in  good faith by Limited or HOT-TX), (c) non-recourse to Limited and any Subsidiary and  their assets, other than any recourse solely attributable to a breach by Limited or any  

 

  2  Subsidiary of representations and warranties that are customarily made by a seller in  connection with the “true sale” of receivables on a non-recourse basis (including any  Receivables Repurchase Obligation), (d) consummated pursuant to customary contracts,  arrangements or agreements entered into with respect to “true sale” of receivables on  market terms for similar transactions and (e) the aggregate amount of all Permitted  Receivables Financings including receivables and related assets shall not exceed  $100,000,000 at any time.  The “amount” or “principal amount” of any Permitted Receivables Financing  shall be deemed at any time to be (1) the aggregate principal or stated amount of the  Indebtedness, fractional undivided interests (which stated amount may be described as a  “net investment” or similar term reflecting the amount invested in such undivided  interest) or other securities incurred or issued pursuant to such Permitted Receivables  Financing, in each case outstanding at such time, or (2) in the case of any Permitted  Receivables Financing in respect of which no such Indebtedness, fractional undivided  interests or securities are incurred or issued, the cash purchase price paid by the buyer  (other than any Receivables Subsidiary) in connection with its purchase of receivables  less the amount of collections received by Limited or any Subsidiary in respect of such  receivables and paid to such buyer, excluding any amounts applied to purchase fees or  discount or in the nature of interest.  “Receivables Financing” means any receivables purchase facilities,  securitization, other receivables financing transaction or series of transactions that may  be entered into by Limited or any of its Subsidiaries pursuant to which Limited or any of  its Subsidiaries may sell, contribute, convey or otherwise transfer to a Receivables  Subsidiary or any other Person, or may grant a security interest in, any accounts  receivable (whether now existing or arising in the future) of Limited or any of its  Subsidiaries, and any assets related thereto including, without limitation, all collateral  securing such accounts receivable, all contracts and all guarantees or other obligations in  respect of such accounts receivable, any collections in respect of such accounts  receivable, proceeds of such accounts receivable, and other assets which are customarily  transferred or in respect of which security interests are customarily granted in  connection with asset securitization transactions or other receivables financing involving  accounts receivable and any deposit account or securities account holding solely the  collections in respect of the foregoing.  “Receivables Repurchase Obligation” means any obligation of a seller of  receivables in a Permitted Receivables Financing to repurchase receivables arising as a  result of a breach of a representation, warranty or covenant or otherwise, including as a  result of a receivable or portion thereof becoming subject to any asserted defense,  dispute, off-set or counterclaim of any kind as a result of any action taken by, any failure  to take action by or any other event relating to the seller.  “Receivables Subsidiary” means any Subsidiary that is special purpose entity  formed for the purpose of, and that solely in engages in one or more Permitted  Receivables Financing and any other activities reasonably related or incidental thereto.  

 

  3  (b) Section 1 of the Guaranty Agreement is hereby amended by deleting the  following definitions in their entirety: “London Banking Day”,   (c) The definition of “Consolidated EBIT” set forth in Section 1 of the Guaranty  Agreement is hereby amended to read as follows:  “Consolidated EBIT” means for any period the sum of Consolidated Net Earnings  for such period, plus   (a) without duplication and to the extent deducted in calculating Consolidated Net  Earnings (other than with respect to clause (a)(vi)), in each case for Limited and its  Subsidiaries, all determined in accordance with GAAP for such period, the total of:   (i) interest expense (including the interest component of Permitted  Receivables Financings),   (ii) federal and state income and franchise tax expense,   (iii) to the extent non-cash, any impairment charges, asset write-offs and  write-downs incurred during such period,   (iv) to the extent non-cash, any write-offs or write-downs of goodwill or  other intangibles during such period,   (v) non-cash charges for such period but excluding any non-cash charge  that is an accrual of a reserve for a cash expense or cash payment to be made, or  anticipated to be made, in a future period,   (vi) the amount of pro forma “run-rate” cost savings, operating expense  reductions, operating improvements and synergies actually implemented by Limited or its  Subsidiaries or related to an Acquisition or Disposition projected to be realized as a result  of actions taken or are expected to be taken, in each case, that are reasonably identifiable,  factually supportable and projected by Limited in good-faith to be realized as a result of  Acquisitions, Dispositions, cost savings or business optimization initiatives or other  similar transactions or initiatives consummated after the Sixth Amendment Effective  Date to the extent not prohibited by this Guaranty Agreement, net of the amount of actual  benefits realized in respect thereof; provided that (A) actions in respect of such non-cash  cost-savings, operating expense reductions, operating improvements and synergies have  been, or will be, taken within 12 months of the applicable Acquisition, Disposition or  initiative, (B) no cost savings, operating expense reductions, operating improvements or  synergies shall be added pursuant to this clause (vi) to the extent duplicative of any  expenses or charges otherwise added to (or excluded from) Consolidated EBIT, whether  through a pro forma adjustment or otherwise, for such period, (C) projected amounts (and  not yet realized) may no longer be added in calculating Consolidated EBIT pursuant to  this clause (vi) to the extent occurring more than four fiscal quarters after the applicable  Acquisition, Disposition or initiative, (D) Limited must deliver to the Purchaser (1) a  certificate of a Responsible Officer of Limited setting forth such estimated cost-savings,  operating expense reductions, operating improvements and synergies and (2) information  

 

  4  and calculations supporting in reasonable detail such estimated cost savings, operating  expense reductions, operating improvements and synergies,  (vii) any unusual or non-recurring charges or losses for such period,   (viii) any fees, expenses or charges (other than depreciation or  amortization expense) incurred during such period in connection with any Investment  (including any Acquisition), Disposition outside of the ordinary course of business,  issuance of Indebtedness or capital stock, or amendment, modification, repayment or  refinancing of any debt instrument, in each case permitted under this Guaranty  Agreement, including (A) any such transactions undertaken but not completed and any  transactions consummated prior to the Sixth Amendment Effective Date and (B) any  financial advisory fees, accounting fees, legal fees and other similar advisory and  consulting fees,   (ix) restructuring and similar charges, accruals, reserves, severance,  relocation costs, lease termination or modification costs, integration and facilities opening  or closing costs and other business optimization expenses (including in connection with  revenue synergies), signing costs, retention or completion bonuses, transition costs, costs  related to closure/consolidation of facilities and curtailments or modifications to pension  and post-retirement employee benefit plans,   (x) non-recurring cash expenses recognized for information technology  and other integration costs and business optimization expenses in connection with any  cost savings or business optimization initiatives,  (xi) fees, charges, costs and expenses incurred in such period in  connection with Litigation, and  (xii) losses or discounts on sales of receivables and related assets in  connection with any Permitted Receivables Financing,  minus   (b)  without duplication and to the extent added in calculating Consolidated  Net Earnings, in each case for Limited and its Subsidiaries, all determined in accordance  with GAAP for such period, the total of:  (i) federal and state, local and foreign income tax credits (other than to the  extent netted in clause (a)(ii) above),  (ii) other non-cash gains, excluding any such non-cash gains to the extent  they represent a reversal of an accrual of a reserve for a cash expense or cash payment  that reduced Consolidated EBIT in a prior period that are described in the exclusion noted  in clause (a)(v) above, and  (iii) any unusual or non-recurring income or gains for such period, all  determined in accordance with GAAP;  

 

  5  provided, that the aggregate amount added back in the calculation of Consolidated  EBIT for any such period pursuant to clauses (a)(vi), (a)(viii), (a)(ix), (a)(x) and (a)(xi)  shall not exceed 20% of Consolidated EBIT for the applicable four-quarter period  (calculated prior to giving effect to any add-backs pursuant to such clauses).  (d) The definition of “Consolidated EBITDA” set forth in Section 1 of the Guaranty  Agreement is hereby amended to read as follows:  “Consolidated EBITDA” means for any period the sum of Consolidated Net  Earnings for such period, plus   (a)  without duplication and to the extent deducted in calculating Consolidated  Net Earnings (other than with respect to clause (a)(vii)), in each case for Limited and its  Subsidiaries, all determined in accordance with GAAP for such period, the total of:  (i) depreciation and amortization expenses,  (ii) interest expense (including the interest component of Permitted  Receivables Financings),   (iii) federal and state income and franchise tax expense,   (iv) to the extent non-cash, any impairment charges, asset write-offs and  write-downs incurred during such period,   (v) to the extent non-cash, any write-offs or write-downs of goodwill or  other intangibles during such period,   (vi) non-cash charges for such period but excluding any non-cash charge  that is an accrual of a reserve for a cash expense or cash payment to be made, or  anticipated to be made, in a future period,   (vii) the amount of pro forma “run-rate” cost savings, operating expense  reductions, operating improvements and synergies actually implemented by Limited or its  Subsidiaries or related to an Acquisition or Disposition projected to be realized as a result  of actions taken or are expected to be taken, in each case, that are reasonably identifiable,  factually supportable and projected by Limited in good-faith to be realized as a result of  Acquisitions, Dispositions, cost savings or business optimization initiatives or other  similar transactions or initiatives consummated after the Sixth Amendment Effective  Date to the extent not prohibited by this Guaranty Agreement, net of the amount of actual  benefits realized in respect thereof; provided that (A) actions in respect of such non-cash  cost-savings, operating expense reductions, operating improvements and synergies have  been, or will be, taken within 12 months of the applicable Acquisition, Disposition or  initiative, (B) no cost savings, operating expense reductions, operating improvements or  synergies shall be added pursuant to this clause (vii) to the extent duplicative of any  expenses or charges otherwise added to (or excluded from) Consolidated EBITDA,  whether through a pro forma adjustment or otherwise, for such period, (C) projected  amounts (and not yet realized) may no longer be added in calculating Consolidated  EBITDA pursuant to this clause (vii) to the extent occurring more than four fiscal  

 

  6  quarters after the applicable Acquisition, Disposition or initiative, (D) Limited must  deliver to the Purchaser (1) a certificate of a Responsible Officer of Limited setting forth  such estimated cost-savings, operating expense reductions, operating improvements and  synergies and (2) information and calculations supporting in reasonable detail such  estimated cost savings, operating expense reductions, operating improvements and  synergies,  (viii) any unusual or non-recurring charges or losses for such period,   (ix) any fees, expenses or charges (other than depreciation or amortization  expense) incurred during such period in connection with any Investment (including any  Acquisition), Disposition outside of the ordinary course of business, issuance of  Indebtedness or capital stock, or amendment, modification, repayment or refinancing of  any debt instrument, in each case permitted under this Guaranty Agreement, including  (A) any such transactions undertaken but not completed and any transactions  consummated prior to the Sixth Amendment Effective Date and (B) any financial  advisory fees, accounting fees, legal fees and other similar advisory and consulting fees,   (x) restructuring and similar charges, accruals, reserves, severance,  relocation costs, lease termination or modification costs, integration and facilities opening  or closing costs and other business optimization expenses (including in connection with  revenue synergies), signing costs, retention or completion bonuses, transition costs, costs  related to closure/consolidation of facilities and curtailments or modifications to pension  and post-retirement employee benefit plans,   (xi) non-recurring cash expenses recognized for information technology  and other integration costs and business optimization expenses in connection with any  cost savings or business optimization initiatives,    (xii) fees, charges, costs and expenses incurred in such period in  connection with Litigation, and  (xiii) losses or discounts on sales of receivables and related assets in  connection with any Permitted Receivables Financing,   minus   (b)  without duplication and to the extent added in calculating Consolidated  Net Earnings, in each case for Limited and its Subsidiaries, all determined in accordance  with GAAP for such period, the total of:  (i) federal and state, local and foreign income tax credits (other than to the  extent netted in clause (a)(iii) above),  (ii) other non-cash gains, excluding any such non-cash gains to the extent  they represent a reversal of an accrual of a reserve for a cash expense or cash payment  that reduced Consolidated EBIT in a prior period that are described in the exclusion noted  in clause (a)(vi) above, and  

 

  7  (iii) any unusual or non-recurring income or gains for such period, all  determined in accordance with GAAP;  provided, that the aggregate amount added back in the calculation of Consolidated  EBITDA for any such period pursuant to clauses (a)(vii), (a)(ix), (a)(x), (a)(xi) and  (a)(xii) shall not exceed 20% of Consolidated EBITDA for the applicable four-quarter  period (calculated prior to giving effect to any add-backs pursuant to such clauses).  (e) The definition of “Excluded Subsidiary” set forth in Section 1 of the Guaranty  Agreement is hereby amended to read as follows:  “Excluded Subsidiary” means (a) any Subsidiary if, and for so long as, the  guarantee of the Obligations by such Subsidiary would require the consent, approval,  license or authorization of a Governmental Authority or under any binding Contractual  Obligation (or joint venture organizational document) with any unaffiliated third party  existing on the Sixth Amendment Effective Date (or, if later, the date such Subsidiary is  acquired or the date such Contractual Obligation (or joint venture organizational  document) is entered into (so long as such Contractual Obligation  (or joint venture  organizational document) is not created, entered into or incurred for the sole purpose of  making such Subsidiary an Excluded Subsidiary), except to the extent such consent,  approval, license or authorization has actually been obtained), (b) any Subsidiary that is  prohibited by Applicable Law, rule or regulation from guaranteeing the Obligations, (c)  any Subsidiary that is a captive insurance company subject to regulation as an insurance  company (or any Subsidiary thereof), (d) a not-for-profit Subsidiary, (e) a special purpose  entity used for a securitization facility, (f) a Receivables Subsidiary, (g) a Subsidiary  (including any CFC Holding Company) where the guarantee of the Obligations by such  Subsidiary would constitute an investment in “United States property” by a CFC that  would reasonably be expected to result in material adverse tax consequences as  reasonably determined by HOT-TX in good faith in consultation with the Purchaser and  (h) any Subsidiary to the extent that the costs of a guarantee from such Subsidiary would  be excessive relative to the expected benefits to be obtained by the Guarantied Parties  from such guarantee (as reasonably determined by HOT-TX and the Purchaser in good  faith).  (f) The definition of “Existing Subsidiary Guarantors” set forth in Section 1 of the  Guaranty Agreement is hereby amended to read as follows:  “Existing Subsidiary Guarantors” means, collectively, HOT-Barbados, HOT- Nevada, HOT Nevada, Inc., a Nevada corporation, HOT-L.P., Idelle Labs, Ltd., a Texas  limited partnership, OXO International, Ltd., a Texas limited partnership, Helen of Troy  Macao Limited, a Macau company, Kaz, Inc., a New York corporation, Kaz Canada, Inc.,  a Massachusetts corporation, Pur Water Purification Products, Inc., a Nevada  corporation, Steel Technology, LLC, an Oregon limited liability company, Drybar  Products LLC, a Delaware limited liability company and Osprey Packs, Inc. a Colorado  corporation.  

 

  8  (g) The definition of “Liquidity” set forth in Section 1 of the Guaranty Agreement is  hereby amended to read as follows:  “Liquidity” means, at any time of determination, the sum of (a) Unrestricted Cash  and Cash Equivalents of Limited and its Subsidiaries at such time and (b) the amount by  which the Revolving Facility (under and as defined in the Credit Facility) exceeds the  Total Revolving Outstandings (under and as defined in the Credit Facility) at such time.  (h) The definition of “Material Domestic Subsidiary” set forth in Section 1 of the  Guaranty Agreement is hereby amended to read as follows:  “Material Domestic Subsidiary” means any Domestic Subsidiary of Limited  (other than an Excluded Subsidiary) that, together with its Subsidiaries, has total assets  (including Equity Interests in other Subsidiaries and (x) excluding investments that are  eliminated in consolidation and (y) investments in any Receivables Subsidiary) of equal  to or greater than 3.75% of Consolidated Total Assets (excluding assets of Excluded  Subsidiaries) as of the end of the most recent four (4) fiscal quarters; provided, however,  that if at any time there are Domestic Subsidiaries (other than Excluded Subsidiaries)  which are not classified as “Material Domestic Subsidiaries” but which collectively have  total assets (including Equity Interests in other Subsidiaries and excluding (x)  investments that are eliminated in consolidation and (y) investments in any Receivables  Subsidiary) of equal to or greater than 7.5% of Consolidated Total Assets (excluding  assets of Excluded Subsidiaries), then HOT-TX shall promptly designate one or more  such Subsidiaries as Material Domestic Subsidiaries and cause any such Subsidiary to  comply with the provisions of Section 7(n) such that, after such Subsidiaries become  Guarantors hereunder, the Domestic Subsidiaries (other than Excluded Subsidiaries) that  are not Guarantors shall have less than 7.5% of Consolidated Total Assets.  (i) The definition of “Qualified Acquisition” set forth in Section 1 of the Guaranty  Agreement is hereby amended to read as follows:  “Qualified Acquisition” means an Acquisition by Limited or any Subsidiary,  which Acquisition has been designated to the Purchaser in a Qualified Acquisition Notice  as a “Qualified Acquisition”, provided that the aggregate Acquisition Consideration is  greater than $150,000,000.  Purchaser, the Borrower and the Guarantors acknowledge  and agree that the acquisition by Limited of Recipe Products Ltd. on or about April 25,  2022 shall be treated as a Qualified Acquisition under this Guaranty Agreement.  (j) Section 8(a) of the Guaranty Agreement is hereby amended to (i) delete “and” at  the end of clause (25) thereof, (ii) renumber clause (26) as (27) and (iii) add a new clause (26)  thereto to read as follows:   (26) Liens on receivables and related assets incurred in connection with  Permitted Receivables Financings provided that any such Lien shall only apply to the  receivables of Limited or any applicable Subsidiary purported to be transferred to a  Receivables Subsidiary or another applicable Person in accordance with the applicable  Permitted Receivables Financing and the related assets with respect thereto; and    

 

  9  (k) Section 8(b) of the Guaranty Agreement is hereby amended to (i) delete “and” at  the end of clause (14) thereof, (ii) delete “.” at the end of clause (15) thereof and add “; and” in  lieu thereof and (iii) add a new clause (16) thereto to read as follows:   (16) so long as no Default exists or would result therefrom, Investments relating  to any Receivables Subsidiary of Limited organized in connection with a Permitted  Receivables Financing that, in the good faith determination of senior management or the  Board of Directors of Limited or HOT-TX, are necessary or advisable to effect such  Permitted Receivables Financing.    (l) Section 8(c)(6) of the Guaranty Agreement is hereby is hereby amended to read as  follows:  (6) Indebtedness in respect of Permitted Receivables Financings so long as the  aggregate outstanding amount of all Permitted Receivables Financing including  receivables and related assets, shall not exceed $100,000,000 at any time;  (m) Section 8(e) of the Guaranty Agreement is hereby amended to (i) replace the word  “receivables” with the word “receivable” in clause (7) thereof, and (ii) add a new clause (14)  thereto to read as follows:   (14) Dispositions of receivables, or participations therein, and related assets  pursuant to any Permitted Receivables Financing;  (n) Section 8(h) of the Guaranty Agreement is hereby amended to (i) delete “and” at  the end of clause (f) thereof and add “,” in lieu thereof, (ii) delete “.” at the end of clause (g)  thereof and (iii) add a new clause (h) thereto to read as follows:  and (h) transactions in connection with any Permitted Receivables Financing.  (o) Section 8(i) of the Guaranty Agreement is hereby amended to (i) delete “and” at  the end of clause (ii) thereof, (ii) delete “and” at the end of clause (vi) thereof and add “,” in lieu  thereof, (iii) delete “.” at the end of clause (vii) thereof and (iv) add a new clause (viii) thereto to  read as follows:  and (viii) any Permitted Receivables Financing solely with respect to the assets  subject to such Permitted Receivables Financing.  (p) Exhibit A, the Compliance Certificate, is hereby amended to be in the form of  Exhibit A to this Third Amendment.  2. REPRESENTATIONS AND WARRANTIES TRUE; NO EVENT OF  DEFAULT.  By its execution and delivery hereof, each of the Guarantors represents and  warrants that, as of the date hereof:  (a) the representations and warranties contained in the Guaranty Agreement and the  other Loan Documents are true and correct on and as of the date hereof as made on and as of  

 

  10  such date, except to the extent that such representations and warranties specifically refer to an  earlier date, in which case they shall be true and correct on such earlier date;  (b) no event has occurred and is continuing which constitutes a Default or an Event of  Default;  (c) (i) each Guarantor has full power and authority to execute and deliver this  Seventh Amendment, (ii) this Seventh Amendment has been duly executed and delivered by the  Guarantors, and (iii) this Seventh Amendment and the Guaranty Agreement, as amended hereby,  constitute the legal, valid and binding obligations of the Guarantors, as the case may be,  enforceable in accordance with their respective terms, except as enforceability may be limited by  applicable Debtor Relief Laws and by general principles of equity (regardless of whether  enforcement is sought in a proceeding in equity or at law) and except as rights to indemnity may  be limited by federal or state securities laws;  (d) neither the execution, delivery and performance of this Seventh Amendment or  the Guaranty Agreement, as amended hereby, nor the consummation of any transactions  contemplated herein or therein, will conflict with any Law or Organization Documents of any of  the Guarantors, or any indenture, agreement or other instrument to which the Guarantors or any  of their respective property is subject; and  (e) no authorization, approval, consent, or other action by, notice to, or filing with,  any Governmental Authority or other Person not previously obtained is required for the  execution, delivery or performance by any of the Guarantors of this Seventh Amendment.   3. CONDITIONS TO EFFECTIVENESS.  This Seventh Amendment shall be  effective upon satisfaction or completion of the following:  (a) the Guarantied Party shall have received counterparts of this Seventh Amendment  executed by each of the Guarantors and acknowledged by the Borrower;   (b) the representations and warranties set forth in Section 3 above shall be true and  correct; and  (c) the Guarantied Party shall have received, in form and substance satisfactory to the  Guarantied Party and its counsel, such other documents, certificates and instruments as the  Guarantied Party shall reasonably require.  4. REFERENCE TO THE GUARANTY AGREEMENT.  (a) Upon the effectiveness of this Seventh Amendment, each reference in the  Guaranty Agreement to “this Guaranty Agreement”, “hereunder”, or words of like import shall  mean and be a reference to the Guaranty Agreement, as affected and amended hereby.  (b) The Guaranty Agreement, as amended by the amendments referred to above, shall  remain in full force and effect and is hereby ratified and confirmed.  5. COSTS, EXPENSES AND TAXES.  The Guarantors agree to pay on demand all  reasonable costs and expenses of the Guarantied Party in connection with the preparation,  reproduction, execution and delivery of this Seventh Amendment and the other instruments and  

 

  11  documents to be delivered hereunder (including the reasonable fees and out-of-pocket expenses  of counsel for the Guarantied Party with respect thereto).  6. BORROWER’S ACKNOWLEDGMENT.  By signing below, the Borrower  (a) acknowledges, consents and agrees to the execution, delivery and performance by the  Guarantors of this Seventh Amendment, (b) acknowledges and agrees that its obligations in  respect of the Guaranty Agreement (i) are not released, diminished, waived, modified, impaired  or affected in any manner by this Seventh Amendment or any of the provisions contemplated  herein, (c) ratifies and confirms its obligations under the Guaranty Agreement, and  (d) acknowledges and agrees that it has no claims or offsets against, or defenses or counterclaims  to, its obligations under the Loan Agreement.  7. EXECUTION IN COUNTERPARTS.  This Seventh Amendment may be  executed in any number of counterparts and by different parties hereto in separate counterparts,  each of which when so executed and delivered shall be deemed to be an original and all of which  when taken together shall constitute but one and the same instrument.  For purposes of this  Seventh Amendment, a counterpart hereof (or signature page thereto) signed and transmitted by  any Person party hereto to the Guarantied Party (or its counsel) by facsimile machine, telecopier  or electronic mail is to be treated as an original.  The signature of such Person thereon, for  purposes hereof, is to be considered as an original signature, and the counterpart (or signature  page thereto) so transmitted is to be considered to have the same binding effect as an original  signature on an original document.  8. GOVERNING LAW; BINDING EFFECT.  This Seventh Amendment shall be  governed by and construed in accordance with the laws of the State of Texas applicable to  agreements made and to be performed entirely within such state, provided that each party shall  retain all rights arising under federal law and shall be binding upon the parties hereto and their  respective successors and assigns.  9. HEADINGS.  Section headings in this Seventh Amendment are included herein  for convenience of reference only and shall not constitute a part of this Seventh Amendment for  any other purpose.  10. ENTIRE AGREEMENT.  THE GUARANTY AGREEMENT, AS AMENDED  BY THIS SEVENTH AMENDMENT, AND THE OTHER LOAN DOCUMENTS  REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE  CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT   ORAL AGREEMENTS BETWEEN THE PARTIES.  THERE ARE NO UNWRITTEN ORAL  AGREEMENTS BETWEEN THE PARTIES.  REMAINDER OF PAGE LEFT INTENTIONALLY BLANK    

 

  Signature Page to Seventh Amendment to Guaranty Agreement  IN WITNESS WHEREOF, this Seventh Amendment is executed as of the date first set  forth above.  GUARANTORS:    HELEN OF TROY L.P.,  a Texas limited partnership  By: HELEN OF TROY NEVADA   CORPORATION,   a Nevada corporation, General Partner  HELEN OF TROY LIMITED,  a Bermuda company  HELEN OF TROY LIMITED,  a Barbados corporation  HOT NEVADA, INC.,  a Nevada corporation  HELEN OF TROY NEVADA CORPORATION,  a Nevada corporation  HELEN OF TROY TEXAS CORPORATION,   a Texas corporation  IDELLE LABS LTD.,   a Texas limited partnership  By: HELEN OF TROY NEVADA   CORPORATION,    a Nevada corporation, General Partner  OXO INTERNATIONAL LTD.,   a Texas limited partnership  By: HELEN OF TROY NEVADA   CORPORATION,    a Nevada corporation, General Partner  PUR WATER PURIFICATION PRODUCTS, INC.,   a Nevada corporation  KAZ, INC.,  a New York corporation  KAZ CANADA, INC.,  a Massachusetts corporation  STEEL TECHNOLOGY, LLC,  an Oregon limited liability company  DRYBAR PRODUCTS LLC,   a Delaware limited liability company  OSPREY PACKS, INC.,  a Colorado corporation      

 

  Signature Page to Seventh Amendment to Guaranty Agreement  By: /s/ Matt Osberg     Name: Matt Osberg   Title for all: Chief Financial Officer    HELEN OF TROY MACAO LIMITED,   a Macau corporation      By: /s/ Tessa Judge     Name: Tessa Judge    Title:   CLO        NOTARIAL CERTIFICATE OF __      NOTARY PUBLIC DO HEREBY CERTIFY AND ATTEST that on the day of the date hereof  personally came and appeared before me __________, the duly authorized Chief Financial  Officer of Helen of Troy Limited, a Barbados corporation, one of the executing parties to the  within written document and did in my presence sign and deliver the same as and for his free and  voluntary act and deed.    IN FAITH AND TESTIMONY WHEREOF I the said     have hereunto set and  subscribed my name and caused my Seal of Office to be hereunto put and affixed this __th day  of August, 2022.        

 

  Signature Page to Seventh Amendment to Guaranty Agreement  BORROWER:  KAZ USA, INC., a Massachusetts corporation  /s/ Matt Osberg      Name: Matt Osberg  Title: Chief Financial Officer 

 

    GUARANTIED PARTY:  BANK OF AMERICA, N.A., as Guarantied Party  /s/ Adam Rose       Name: Adam Rose   Title: Senior Vice President

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