Document:

EX-10.22

 Exhibit 10.22 

Amplify Energy Corp. 

Management Incentive Plan 

Restricted Stock Unit Award Agreement 

This Restricted Stock Unit Award Agreement (this “Agreement”) is made by and between Amplify Energy Corp., a Delaware
corporation (the “Company”), and the individual (the “Participant”) whose name is set forth on the signature page attached here to (the “Signature Page”), effective as of the date set forth on
the Signature Page as the “Date of Grant”, pursuant to the Amplify Energy Corp. Management Incentive Plan (as the same may be amended from time to time, the “Plan”). 

RECITALS 

WHEREAS, the Company has adopted the Plan, which is incorporated herein by reference and made a part of this Agreement, and capitalized
terms not otherwise defined in this Agreement shall have the meanings ascribed to those terms in the Plan; and 
 WHEREAS, the
Committee has authorized and approved the grant of an Award to the Participant that will provide the Participant the opportunity to receive shares of Common Stock upon the settlement of stock units on the terms and conditions set forth in the Plan
and this Agreement (“Restricted Stock Units”). 
 NOW THEREFORE, in consideration of the premises and mutual
covenants set forth in this Agreement, the parties hereto agree as follows: 
 1. Grant of Restricted Stock Unit Award. The Company
hereby grants to the Participant the number of Restricted Stock Units set forth on the Signature Page, on the terms and conditions set forth in the Plan and this Agreement, subject to adjustment as set forth in the Plan. Each Restricted Stock Unit
represents the promise of the Company to deliver shares of Common Stock (initially one share of Common Stock per Restricted Stock Unit) to the Participant pursuant to the terms and conditions of the Plan and this Agreement. 

2. Vesting of Restricted Stock Units. Subject to the terms and conditions set forth in the Plan and this Agreement, the Restricted Stock
Units shall vest as follows: 
 a. Time-Vesting RSUs. Fifty percent (50%) of the Restricted Stock Units shall be
subject to time-vesting conditions (“TSUs”) and shall vest in accordance with the following schedule, subject to the Participant’s continued Service through each applicable vesting date, except as otherwise provided in this
Section 2: 
  

			
	 Vesting Date
	  	Cumulative Vested Percentage
	 First Anniversary of the Date of Grant
	  	331⁄3%
	 Second Anniversary of the Date of Grant
	  	662⁄3%
	 Third Anniversary of the Date of Grant
	  	100%

 b. Performance-Vesting RSUs. Fifty percent (50%) of the Restricted Stock Units shall be
subject to both time-vesting and performance-vesting conditions (“PSUs”). A PSU shall only become vested and subject to settlement upon satisfaction of both the time-vesting condition and the performance-vesting condition. 

 (i) The PSUs shall performance vest based on the Company’s achievement
of the 15-Day VWAP targets set forth below on or before the third anniversary of the Date of Grant (such period, the “Performance Period”), subject to the Participant’s continued Service
through each applicable vesting date. For purposes of this Agreement, “15-Day VWAP” means the volume-weighted average price per share of Common Stock over fifteen (15) consecutive trading
days. In the event the Company makes a significant return of capital to its shareholders during the Performance Period, the Company and the Participant will work together in good faith to effectuate any necessary adjustments to the 15-Day VWAP Targets. 
  

					
	 15-Day VWAP
Target
	  	Cumulative Performance-Vested Percentage	 
	 At or above $12.50
	  	 	331⁄3	% 
	 At or above $15.00
	  	 	662⁄3	% 
	 At or above $17.50
	  	 	100	% 

 Any PSU that does not performance vest prior to the conclusion of the Performance Period shall be forfeited
immediately and without consideration at the conclusion of the Performance Period. 
 (ii) Any PSUs with respect to which the
performance condition is satisfied during the Performance Period (the “Performance-Vested PSUs”) will be subject to time-based vesting, such that 50% of the Performance-Vested PSUs will time vest on the applicable
performance-vesting date, and an additional 25% of the Performance-Vested PSUs will time vest on each of the first and second anniversaries of the date on which such Performance-Vested PSUs performance-vested, subject to the Participant’s
continued Service through each applicable vesting date. 
 c. [Reserved]. 

d. Change of Control. If the Participant’s Service is terminated by the Company without Cause during the eighteen
(18) month period immediately following a Change of Control, (i) all TSUs shall fully vest, and all PSUs shall fully time vest, and (ii) with respect to any PSUs that have not performance vested as of the date of termination of
Service, such PSUs shall performance vest to the extent that the price per share of Common Stock achieved in the Change of Control equals or exceeds the 15-Day VWAP targets set forth above, in each case,
subject to the Participant’s execution and non-revocation of the Release no later than 60th day following the Participant’s termination of Service. Any PSUs that have not performance-vested in
accordance with Section 2.b and this Section 2.d will be forfeited immediately and without consideration. 

e. Forfeiture. Any Restricted Stock Units that are not fully vested will be forfeited immediately and without
consideration upon a termination of the Participant’s Service for any or no reason. 

  
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 3. Dividend Equivalent Rights. Each Restricted Stock Unit is granted together with
dividend equivalent rights, which dividend equivalent rights will be (a) accumulated and deemed reinvested in additional Restricted Stock Units and (b) subject to the same vesting and forfeiture provisions as the Restricted Stock Units
granted pursuant to Section 2. Any payments made pursuant to dividend equivalent rights will be paid in either cash or in shares of Common Stock, or any combination thereof, as elected by the Participant (to the extent
permissible under applicable law), effective as of the date of settlement under Section 4 below. 
 4.
Payment. 
 a. Settlement. Promptly following the vesting date of the Restricted Stock Units (but no later than
60 days following each such vesting date), the Company shall deliver to the Participant (or the Participant’s legal representatives of the estate of the Participant) a number of shares of Common Stock equal to the aggregate number of Restricted
Stock Units that vested as of such date. No fractional shares of Common Stock shall be delivered; the Company shall pay cash in respect of any fractional shares of Common Stock. The Company may deliver such shares either through book entry accounts
held by, or in the name of, the Participant or cause to be issued a certificate or certificates representing the number of shares of Common Stock to be issued in respect of the Restricted Stock Units, registered in the name of the Participant. If
the 60-day period following the vesting date of the Restricted Stock Units extends across two calendar years, settlement shall always occur in the second calendar year. 

b. Withholding Requirements. The Company shall have the power and the right to deduct or withhold automatically from any
shares of Common Stock or cash deliverable under this Agreement, or to require the Participant or the Participant’s representative to remit to the Company, the amount necessary to satisfy federal, state and local taxes required by law or
regulation to be withheld with respect to any taxable event arising as a result of this Agreement (collectively, “Withheld Taxes”). If the Restricted Stock Units are settled in shares of Common Stock, all or a portion of the
applicable Withheld Taxes may, except as otherwise determined by the Committee at such time, be paid by reducing the number of shares of Common Stock otherwise deliverable upon such settlement by the number of shares of Common Stock having an
aggregate Fair Market Value equal to the applicable Withheld Taxes (or a portion thereof). 
 5. Adjustment of Shares of Common Stock.
In the event of any change with respect to the outstanding shares of Common Stock contemplated by Section 4.4 of the Plan, the number of Restricted Stock Units and the performance vesting conditions set forth in
Section 2.b may be adjusted in accordance with Section 4.4 of the Plan. 
 6. [Reserved]. 

7. Miscellaneous Provisions. 

  
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 a. Securities Laws Requirements. No shares of Common Stock will be
issued or transferred pursuant to this Agreement unless and until all then applicable requirements imposed by federal and state securities and other laws, rules and regulations and by any regulatory agencies having jurisdiction, and by any exchanges
upon which the shares of Common Stock may be listed, have been fully met. As a condition precedent to the issuance of shares of Common Stock pursuant to this Agreement, the Company may require the Participant to take any reasonable action to meet
those requirements. The Committee may impose such conditions on any shares of Common Stock issuable pursuant to this Agreement as it may deem advisable, including, without limitation, restrictions under the Securities Act, under the requirements of
any exchange upon which shares of the same class are then listed and under any blue sky or other securities laws applicable to those shares of Common Stock. 

b. Rights of a Shareholder of the Company. Prior to settlement of the Restricted Stock Units in shares of Common Stock,
neither the Participant nor the Participant’s representative will have any rights as a shareholder of the Company with respect to any shares of Common Stock underlying the Restricted Stock Units. 

c. Transfer Restrictions. The shares of Common Stock delivered hereunder will be subject to such stop transfer orders
and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations and other requirements of the Securities and Exchange Commission, any stock exchange upon which such shares are listed, any applicable federal or
state laws and any agreement with, or policy of, the Company or the Committee to which the Participant is a party or subject, and the Committee may cause orders or designations to be placed upon the books and records of the Company’s transfer
agent to make appropriate reference to such restrictions. 
 d. No Right to Continued Service. Nothing in this
Agreement or the Plan confers upon the Participant any right to continue in Service for any period of specific duration or interferes with or otherwise restricts in any way the rights of the Company (or any Subsidiary employing or retaining the
Participant) or of the Participant, which rights are hereby expressly reserved by each, to terminate the Participant’s Service at any time and for any reason, with or without cause. 

e. No Transfer of Restricted Stock Units. The Participant shall not sell, assign, transfer, exchange, pledge, encumber,
gift, devise, hypothecate or otherwise dispose of (collectively, “Transfer”) any Restricted Stock Units granted hereunder. Any purported Transfer of Restricted Stock Units in breach of this Agreement shall be void and ineffective
and shall not operate to Transfer any interest or title in the purported transferee. 
 f. Notification. Any
notification required by the terms of this Agreement will be given by the Participant (i) in writing addressed to the Company at its principal executive office and will be deemed effective upon actual receipt when delivered by personal delivery
or by registered or certified mail, with postage and fees prepaid, or (ii) by electronic transmission to the Company’s e-mail address of the Company’s General Counsel and will be deemed
effective upon actual receipt. Any notification required by the terms of this Agreement will be given by the Company (x) in writing addressed to the address that the Participant most recently provided to the Company and will be deemed effective
upon personal delivery or within three (3) days of deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid, or (y) by facsimile or electronic transmission to the Participant’s
primary work fax number or e-mail address (as applicable), and will be deemed effective upon confirmation of receipt by the sender of such transmission. 

  
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 g. Entire Agreement. This Agreement and the Plan constitute the
entire agreement between the parties hereto with regard to the subject matter of this Agreement. This Agreement and the Plan supersede any other agreements, representations or understandings (whether oral or written and whether express or implied)
that relate to the subject matter of this Agreement. 
 h. Waiver. No waiver of any breach or condition of this
Agreement will be deemed to be a waiver of any other or subsequent breach or condition whether of like or different nature. 

i. Survival of Certain Provisions. Wherever appropriate to the intention of the parties hereto, the respective rights
and obligations of the parties hereunder shall survive any termination or expiration of this Agreement or the Participant’s termination of Service. 

j. Successors and Assigns. The provisions of this Agreement will inure to the benefit of, and be binding upon, the
Company and its successors and assigns and upon the Participant, the Participant’s executor, personal representative(s), distributees, administrator, permitted transferees, permitted assignees, beneficiaries, and legatee(s), as applicable,
whether or not any such person has become a party to this Agreement or agreed in writing to be joined herein and be bound by the terms hereof. 

k. Severability. The provisions of this Agreement are severable, and if any one or more provisions are determined to be
illegal or otherwise unenforceable, in whole or in part, then such provision shall be reformed to create a valid and enforceable provision to the maximum extent permitted by law; provided, however, if such provision cannot be reformed, it shall be
deemed ineffective and deleted herefrom, and the remaining provisions will nevertheless be binding and enforceable. This Agreement should be construed by limiting and reducing it only to the minimum extent necessary to be enforceable under then
applicable law. 
 l. Amendment. Except as otherwise provided in the Plan, this Agreement will not be amended unless
the amendment is agreed to in writing by both the Participant and the Company. 
 m. Code Section 409A
Compliance. It is the intention of the parties that this Agreement is written and administered, and will be interpreted and construed, in a manner such that no amount under this Agreement becomes subject to (a) gross income inclusion under
Code Section 409A or (b) interest and additional tax under Code Section 409A (collectively, “Section 409A Penalties”), including, where appropriate, the construction of defined terms to have
meanings that would not cause imposition of the Section 409A Penalties. Accordingly, the Participant consents to any amendment of this Agreement which the Company may reasonably make in furtherance of such intention, and the Company shall
promptly provide, or make available to, the Participant a copy of such 

  
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amendment. Further, to the extent that any terms of the Agreement are ambiguous, such terms shall be interpreted as necessary to comply with, or an exemption under, Code Section 409A when
applicable. Under no circumstances will the Company have any liability for any violation of Code Section 409A. 
 n.
Choice of Law; Jurisdiction. This Agreement and all claims, causes of action or proceedings (whether in contract, in tort, at law or otherwise) that may be based upon, arise out of or relate to this Agreement will be governed by the internal
laws of the State of Delaware, excluding any conflicts or choice-of-law rule or principle that might otherwise refer construction or interpretation of this Agreement to
the substantive law of another jurisdiction. Jurisdiction and venue of any action or proceeding relating to this Agreement shall be exclusively in the federal and state courts of competent jurisdiction located in Houston, Harris County, Texas, and
the parties hereby waive any objection to such venue and jurisdiction including, without limitation, that it is inconvenient. 

o. Signature in Counterparts. This Agreement may be signed in counterparts, manually or electronically, each of which
will be an original, with the same effect as if the signatures to each were upon the same instrument. 
 p. Electronic
Delivery. The Company may, in its sole discretion, decide to deliver any documents related to any Awards granted under the Plan by electronic means or to request the Participant’s consent to participate in the Plan by electronic means. The
Participant hereby consents to receive such documents by electronic delivery and to agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or another
third party designated by the Company, if applicable. Such on-line or electronic system shall satisfy notification requirements discussed in Section 7.f. 

q. Acceptance. The Participant hereby acknowledges receipt of a copy of the Plan and this Agreement. The Participant has
read and understands the terms and provisions of the Plan and this Agreement, and accepts the Restricted Stock Units subject to all of the terms and conditions of the Plan and this Agreement. In the event of a conflict between any term or provision
contained in this Agreement and a term or provision of the Plan, the applicable term and provision of the Plan will govern and prevail. 

r. Interpretive Matters. In the interpretation of this Agreement, except where the context otherwise requires: 

(i) The headings used in this Agreement headings are for reference purposes only and will not affect in any way the meaning or
interpretation of this Agreement. 
 (ii) The terms “including” and “include” do not denote or imply any
limitation; 
 (iii) The conjunction “or” has the inclusive meaning “and/or”; 

(iv) The singular includes the plural, and vice versa, and each gender includes each of the others; 

  
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 (v) Reference to any statute, rule, or regulation includes any amendment
thereto or any statute, rule, or regulation enacted or promulgated in replacement thereof; and 
 (vi) The words
“herein”, “hereof”, “hereunder” and other compounds of the word “here” shall refer to the entire Agreement and not to any particular provision. 

[Signature page follows.] 

  
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 IN WITNESS WHEREOF, the Company and the Participant have executed this Restricted Stock Unit
Award Agreement as of the dates set forth below. 
  

	
	AMPLIFY ENERGY CORP.
	
	     

	By:
	Title:
	Date:

  

	
	PARTICIPANT 
	
	     

	 Participant Name: [Name] 
  

Number of RSUs: [Number] 
  

Date of Grant: [Date] 

 Signature Page to Restricted Stock Unit Award Agreementrst-ex101_26.htm

Exhibit 10.1

 

CONSULT WITH AN ATTORNEY PRIOR TO SIGNING THIS AGREEMENT AND GENERAL RELEASE.  BY SIGNING THIS AGREEMENT AND GENERAL RELEASE YOU GIVE UP AND WAIVE IMPORTANT LEGAL RIGHTS.

 

Agreement and General Release

 

This Agreement and General Release (“Release”) is between Rosetta Stone Ltd. (the “Company”) and Sonia Galindo (“Executive”) (each a “Party,” and together, the “Parties”). For purposes of this Release “Effective Date” shall mean the date that is the eighth day after the date on which Executive signs this Release, provided Executive has not revoked this Release pursuant to Section 2(c) below. 

Recitals

A.Executive’s employment with the Company is terminating effective July 1, 2019 (the “Termination Date”).

B.Executive wishes to receive, and the Company wishes to provide in recognition of Executive’s contributions to the Company, certain payments and benefits as described in Section 1 of this Release.

 

C.Executive and the Company wish to resolve, except as specifically set forth herein, all claims between them arising from or relating to any act or omission predating the Termination Date.

Agreement

The Parties agree as follows:

1.Severance Package Obligation. The Company shall pay or provide to Executive the following, if Executive executes and does not revoke this Release:

(a)Executive’s annual bonus for 2019, pro-rated through the Termination Date and calculated based on actual performance under the Company’s 2019 Annual Incentive Program as if Executive had remained an employee throughout 2019, paid at the same time as other recipients receive their annual bonus for 2019 and in accordance with the terms of the Company bonus policy governing the 2019 Annual Incentive Program;

(b)Executive may elect health care coverage for up to eighteen (18) months from her last day of work at the Company pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”).  The Company will pay for up to twelve (12) months, on an after-tax basis, the portion of Executive’s COBRA premiums for such coverage that exceeds the amount that Executive would have incurred in premiums for such coverage under the Company’s health plan if then employed by the Company; provided, however, the Company’s obligation shall only apply to the extent COBRA coverage is elected and in effect during such period.  Following the twelve (12) months of coverage, Executive will be responsible for the full amount of all future premium payments should she wish to continue COBRA coverage.  However, if Executive becomes eligible for group health coverage sponsored by another employer 

 

 

(regardless of whether such coverage is actually elected) or for any other reason her COBRA coverage terminates, the Company shall not be obligated to pay any portion of the premiums provided hereunder for periods after she becomes eligible for such other coverage or her COBRA coverage terminates.  Executive shall have the obligation to notify the Company if she becomes eligible for group health coverage sponsored by another employer. 

(c)as set forth in Attachment 1, (i) vesting through the Termination Date of Executive’s outstanding unvested stock options and restricted stock and outstanding earned but unvested performance share units and (ii) Executive’s retention of Executive’s outstanding unearned performance share units, to be earned and vested in accordance with the terms of the applicable performance share unit grant agreement, each of which shall remain in effect following the Termination Date.

The payments and benefits as provided in Sections 1(a) through (c) above are referred to herein as the “Severance Package.” 

2.Legal Releases

(a)Executive, on behalf of Executive and Executive’s heirs, personal representatives and assigns, and any other person or entity that could or might act on behalf of Executive, including, without limitation, Executive’s counsel (all of whom are collectively referred to as “Executive Releasers”), hereby fully and forever releases and discharges the Company, its present and future affiliates and subsidiaries, and each of their past, present and future officers, directors, employees, shareholders, independent contractors, attorneys, insurers and any and all other persons or entities that are now or may become liable to any Executive Releaser due to any Executive Releasee’s act or omission, (all of whom are collectively referred to as “Executive Releasees”) of and from any and all actions, causes of action, claims, demands, costs and expenses, including attorneys’ fees, of every kind and nature whatsoever, in law or in equity, whether now known or unknown, that Executive Releasers, or any person acting under any of them, may now have, or claim at any future time to have, based in whole or in part upon any act or omission occurring on or before the Effective Date, without regard to present actual knowledge of such acts or omissions, including specifically, but not by way of limitation, matters which may arise at common law, such as breach of contract, express or implied, promissory estoppel, wrongful discharge, tortious interference with contractual rights, infliction of emotional distress, defamation, or under federal, state or local laws, such as the Fair Labor Standards Act, the Employee Retirement Income Security Act, the National Labor Relations Act, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Rehabilitation Act of 1973, the Equal Pay Act, the Americans with Disabilities Act, the Family and Medical Leave Act, the Fair Credit Reporting Act, the Civil Rights Act of 1991, Section 1981 of U.S.C. Title 42 and any civil rights law of any state or other governmental body; PROVIDED, HOWEVER, that notwithstanding the foregoing or anything else contained in this Release, the release set forth in this Section shall not extend to: (i) any rights arising under this Release; (ii) any vested rights under any pension, retirement, profit sharing or similar plan; (iii) any rights Executive has under applicable workers compensation laws; (iv) Executive’s rights, if any, to indemnification, and/or defense under any Company certificate of incorporation, bylaw and/or policy or procedure, or under any insurance contract or any indemnification agreement with the Company, in connection with Executive’s acts and omissions within the course and scope of Executive’s employment with the Company; (v) Executive’s ability to communicate with the Equal Employment Opportunity Commission (EEOC) or any other governmental agency, provided Executive does not seek any personal relief for any claims released herein; (vi) any claims arising after the date of Executive’s 

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execution of this Release; (vii) any obligations of the Company under the Employment Agreement dated January 2, 2015 by and between the Company and Executive (the “Employment Agreement”) which survive Executive’s termination of employment; (viii) any rights to file an unfair labor practice charge under the National Labor Relations Act; or (ix) any other claims that cannot lawfully be released.  Executive hereby warrants that Executive has not assigned or transferred to any person any portion of any claim which is released, waived and discharged above. Executive further states and agrees that Executive has not experienced any illness, injury, or disability that is compensable or recoverable under the worker’s compensation laws of any state that was not reported to the Company by Executive before the Effective Date, and Executive agrees not to not file a worker’s compensation claim asserting the existence of any such previously undisclosed illness, injury, or disability. Executive has specifically consulted with counsel with respect to the agreements, representations, and declarations set forth in the previous sentence. Executive understands and agrees that by signing this Release Executive is giving up any right to bring any legal claim against the Company concerning, directly or indirectly, Executive’s employment relationship with the Company, including Executive’s separation from employment.  Executive agrees that this legal release is intended to be interpreted in the broadest possible manner in favor of the Company, to include all actual or potential legal claims that Executive may have against the Company, except as specifically provided otherwise in this Release.

(b)In order to provide a full and complete release, each of the Parties understands and agrees that this Release is intended to include all claims, if any, covered under this Section 2 that such Party may have and not now know or suspect to exist in such Party’s favor against any other Party and that this Release extinguishes such claims.  Thus, each of the Parties expressly waives all rights under any statute or common law principle in any jurisdiction that provides, in effect, that a general release does not extend to claims which the releasing party does not know or suspect to exist in such Party’s favor at the time of executing the release, which if known by such Party must have materially affected such Party’s settlement with the party being released.

(c)Executive acknowledges that she consulted with an attorney of her choosing before signing this Release, and that the Company provided her with no fewer than twenty-one (21) days during which to consider the provisions of the Employment Agreement and this Release and, specifically the release set forth at Section 2(a) above, although Executive may sign and return the Release sooner if she so chooses.  Executive further acknowledges that she has the right to revoke this Release for a period of seven (7) days after signing it and that this Release shall not become effective until such seven (7)-day period has expired. Executive acknowledges and agrees that if she wishes to revoke this Release, she must do so in writing, and that such revocation must be signed by Executive and received by the Company in care of the Chief Executive Officer no later than 5 p.m. (Eastern Time) on the seventh (7th) day after Executive has signed this Release. Executive acknowledges and agrees that, in the event that she revokes this Release, she shall have no right to receive the Severance Package. Executive represents that she has read this Release, including the release set forth in Section 2(a), above, affirms that this Release and the Employment Agreement provide her with benefits to which she would not otherwise be entitled, and understands its terms and that she enters into this Release freely, voluntarily, and without coercion.

3.Executive acknowledges that she has received all compensation to which she is entitled for her work up to her last day of employment with the Company, and that she is not entitled to any further pay or benefit of any kind, for services rendered or any other reason, other than the Severance Package, and any expense reimbursement due pursuant Section 3(d)(ii) of the Employment Agreement.

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4.Executive agrees that the only thing of value that she will receive by signing this Release is the Severance Package.

5.The Parties agree that their respective rights and obligations under the Employment Agreement shall survive the execution of this Release.

6.The parties understand and agree that this Release shall not be construed as an admission of liability on the part of any person or entity, liability being expressly denied.

7.Executive represents and warrants to the Company that, prior to the Effective Date, Executive did not disclose to any person, other than to Executive’s spouse, tax advisor and counsel, the terms of this Release or the circumstances under which the matter that is the subject of this Release has been resolved.  After the Effective Date, neither Executive, counsel for Executive, nor any other person under Executive’s control shall disclose any term of this Release or the circumstances of Executive’s separation from the Company, except that Executive may disclose such information to Executive’s spouse or to an attorney or accountant to the extent necessary to obtain professional advice.  This Section 7 does not in any way restrict or impede Executive from exercising protected rights to the extent that such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by law, regulation or order.  Executive agrees that Executive shall provide the Company written notice of any such order within three business days following service of the court order; provided that doing so would not violate applicable law or regulation.

8.Executive covenants never to disparage or speak ill of the Company or any the Company product or service, or of any past or present employee, officer or director of the Company, nor shall Executive at any time harass or behave unprofessionally toward any past, present or future Company employee, officer or director.  This Section 8 does not, in any way, restrict or impede Executive from exercising protected rights to the extent that these rights cannot be waived by agreement or from complying with applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law, regulation or order.  Executive agrees that Executive shall provide the Company written notice of any such order within three business days following service of the court order; provided that doing so would not violate applicable law or regulation.

9.Executive acknowledges that because of Executive’s position with the Company, Executive may possess information that may be relevant to or discoverable in connection with claims, litigation or judicial, arbitral or investigative proceedings initiated by a private party or by a regulator, governmental entity, or self-regulatory organization, that relates to or arises from matters with which Executive was involved during Executive’s employment with the Company, or that concern matters of which Executive has information or knowledge (collectively, a “Proceeding”). Executive agrees that Executive shall testify truthfully in connection with any such Proceeding, shall cooperate with the Company in connection with every such Proceeding, and that Executive’s duty of cooperation shall include an obligation to meet with the Company representatives and/or counsel concerning all such Proceedings for such purposes, and at such times and places, as the Company reasonably requests, and to appear for deposition and/or testimony upon the Company’s request and without a subpoena.  The Company shall reimburse Executive for reasonable out-of-pocket expenses that Executive incurs in honoring Executive’s obligation of cooperation under this Section 9.

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10.Nothing in this Release or the Employment Agreement prohibits or restricts Executive (or Executive’s attorney) from initiating communications directly with, responding to an inquiry from, or providing testimony before the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), any other self-regulatory organization or any other federal or state regulatory authority regarding this Release or its underlying facts or circumstances or a possible securities law violation.  This Release does not limit Executive’s right to receive an award for information provided to the SEC staff or any other securities regulatory agency or authority.  Nothing in this Release or the Employment Agreement in any way prohibits or is intended to restrict or impede Executive from exercising protected rights under the National Labor Relations Act.

11.Miscellaneous Terms and Conditions

(a)Each party understands and agrees that Executive or it assumes all risk that the facts or law may be, or become, different than the facts or law as believed by the party at the time Executive or it executes this Release.  Executive and the Company acknowledge that their relationship precludes any affirmative obligation of disclosure, and expressly disclaim all reliance upon information supplied or concealed by the adverse party or its counsel in connection with the negotiation and/or execution of this Release.

(b)The parties warrant and represent that they have been offered no promise or inducement except as expressly provided in this Release, and that this Release is not in violation of or in conflict with any other agreement of either party.

(c)All covenants and warranties contained in this Release are contractual and shall survive the closing of this Release.

(d) This Release shall be binding in all respects upon, and shall inure to the benefit of, the parties’ heirs, successors and assigns.

(e)This Release shall be governed by the internal laws of the Commonwealth of Virginia, irrespective of the choice of law rules of any jurisdiction.

(f)Should any provision of this Release be declared illegal or unenforceable by any court of competent jurisdiction and cannot be modified to be enforceable, such provision shall immediately become null and void, leaving the remainder of this Release in full force and effect. Notwithstanding the foregoing, if Section 2(a), above, is declared void or unenforceable, then this Release shall be null and void and both parties shall be restored to the positions that they occupied before the Release’s execution (meaning that, among other things, all sums paid by the Company pursuant to Section 1, above, shall be immediately refunded to the Company); provided that in such circumstances this Release and the facts and circumstances relating to its execution shall be inadmissible in any later proceeding between the parties, and the statutes of limitations applicable to claims asserted in the proceeding shall be deemed to have been tolled for the period between the Effective Date and 10 days after the date on which Section 2(a) is declared unenforceable.

(g)This Release constitutes the entire agreement of the parties and a complete merger of prior negotiations and agreements.

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(h)This Release shall not be modified except in a writing signed by the parties.

(i)No term or condition of this Release shall be deemed to have been waived, nor shall there be an estoppel against the enforcement of any provision of this Release, except by a writing signed by the party charged with the waiver or estoppel.  No waiver of any breach of this Release shall be deemed a waiver of any later breach of the same provision or any other provision of this Release.

(j)Headings are intended solely as a convenience and shall not control the meaning or interpretation of any provision of this Release.

(k)Pronouns contained in this Release shall apply equally to the feminine, neuter and masculine genders.  The singular shall include the plural, and the plural shall include the singular.

(l)Each party shall promptly execute, acknowledge and deliver any additional document or agreement that the other party reasonably believes is necessary to carry out the purpose or effect of this Release.

(m)Any party contesting the validity or enforceability of any term of this Release shall be required to prove by clear and convincing evidence fraud, concealment, failure to disclose material information, unconscionability, misrepresentation or mistake of fact or law.

(n)The parties acknowledge that they have reviewed this Release in its entirety and have had a full and fair opportunity to negotiate its terms and to consult with counsel of their own choosing concerning the meaning and effect of this Release.  Each party therefore waives all applicable rules of construction that any provision of this Release should be construed against its drafter, and agrees that all provisions of the agreement shall be construed as a whole, according to the fair meaning of the language used.

(o)Every dispute arising from or relating to this Release shall be tried only in the state or federal courts situated in the Commonwealth of Virginia.  The parties consent to venue in those courts, and agree that those courts shall have personal jurisdiction over them in, and subject matter jurisdiction concerning, any such action.

(p)In any action relating to or arising from this Release, or involving its application, the party substantially prevailing shall recover from the other party the expenses incurred by the prevailing party in connection with the action, including court costs and reasonable attorneys’ fees.  If Executive is the substantially prevailing party, the Company shall pay such expenses within 60 days following the determination that she is the substantially prevailing party.

(q)This Release may be executed in counterparts, or by copies transmitted by telecopier, all of which shall be given the same force and effect as the original.

[SIGNATURES FOLLOW]

6

 

 

	
ROSETTA STONE LTD.
	
 
	
EXECUTIVE

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
By:
	
/s/ A. John Hass III
	
 
	
/s/ Sonia Galindo

	
A. John Hass III, Chief Executive Officer
	
 
	
Sonia Galindo

	
 
	
 
	
 
	
 
	
 

	
Date:
	
July 1, 2019
	
 
	
Date:
	
July 1, 2019

 

 

 

7

 

Attachment 1

 

Equity Vesting

 

 

 

8

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