Document:

Exhibit 10.31

 

Execution
Version

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement
(this “Agreement”) is made and entered into as of February 11, 2021 (the “Execution Date”),
by and between PLBY Group, Inc., a Delaware corporation (the “Company”), and Lance Barton (“Executive”
and, together with the Company, the “Parties”).

 

RECITALS

 

WHEREAS, Executive
shall begin employment as the Chief Financial Officer of the Company effective no later than March 1, 2021 (the date on which such
employment actually begins, the “Employment Commencement Date”).

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt
of which are hereby acknowledged, the Parties hereto agree as follows:

 

1.                  Term.
Executive’s employment with the Company under the terms and conditions of this Agreement will commence on the Employment
Commencement Date and shall continue until such time as Executive’s employment is terminated in accordance with the terms
and conditions of Section 5 of this Agreement (the “Term”). Notwithstanding any provision of this Agreement
to the contrary, Executive shall be employed on an “at-will” basis and Executive’s employment may be terminated
by either Party at any time.

 

2.                  Title;
Services and Duties.

 

(a)              During
the Term, Executive will be employed by the Company as its Chief Financial Officer, and shall report directly to the Chief Executive
Officer of the Company (the “CEO”).

 

(b)              During
the Term, Executive will (i) be a full-time employee of the Company and (ii) have such duties, responsibilities and authority
as are reasonably prescribed by the CEO or the Board of Directors of the Company (the “Board”) from time to
time and normally associated with or not inconsistent with the role of a Chief Financial Officer. Notwithstanding the foregoing,
Executive may (x) serve as a director or advisor of non-profit organizations without approval of the Board and as director
or advisor of for profit companies with the prior approval of the Board, (y) perform and participate in charitable civic, educational,
professional, community, industry affairs and other related activities, and (z) manage his and his family’s personal investments;
provided, however, that, in each case, such activities do not materially interfere, individually or in the aggregate,
with the performance of his duties hereunder, do not violate the provisions of Section ‎6, and do not create a fiduciary
or business conflict.

 

(c)               During
the Term, Executive shall devote all of the Executive’s business time, energy, business judgment, knowledge and skill and
Executive’s best efforts to the performance of Executive’s duties with the Company.

 

(d)               The
primary place of Executive’s employment with the Company will be New York, New York, although Executive understands and
agrees that Executive may be required to travel from time to time for business reasons.

 

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3.                  Compensation.

 

(a)               Base
Salary. The Company will pay Executive a base salary in the amount of five-hundred-thousand dollars ($500,000) per annum (the
 “Base Salary”) during the Term, payable in accordance the Company’s regular payroll practices as in effect
from time to time, but in no event less frequently than monthly. The Base Salary will be reviewed by the Board annually during
the Term, and shall be subject to increase but not decrease.

 

(b)               Cash
Bonuses.

 

(i)               Annual
Bonus. Beginning in 2022, Executive will be eligible to receive an annual cash bonus for each fiscal year of the Company during
the Term with a target amount equal to 60% of the Base Salary. The actual amount of the annual cash bonus, if any, payable to
Executive in respect of any fiscal year during the Term will be based on the achievement of performance criteria which may relate
to financial and non-financial metrics as reasonably determined by the Board after consultation with Executive and the CEO. Any
annual cash bonus that becomes payable to Executive under this Section 3(b)(i) will be paid to Executive, in cash, when
annual bonuses are paid to the Company’s other senior executives and as soon as practicable but no later than March 15 following
the end of the fiscal year of the Company to which it relates.

 

(ii)            Signing
Bonus. The Company shall pay Executive a lump sum cash signing bonus of $250,000 (the “Signing Bonus”)
within five (5) days following the Employment Commencement Date, provided that the Executive shall repay a pro rata portion of
the after-tax amount of the Signing Bonus, determined by multiplying such after-tax amount by a fraction, the numerator of which
is the number of days remaining in the 12-month period following the Employment Commencement Date, and the denominator of which
is 365, payable within thirty (30) days following termination of employment if, prior to the twelve (12) month anniversary of
the Employment Commencement Date, Executive’s employment with the Company terminates for any reason other than a termination
(x) as a result of his death or Disability (as defined below), (y) by Executive for Good Reason (as defined below) or (z) by the
Company other than for Cause (as defined below).

 

(c)               Long-Term
Incentive Compensation.

 

(i)              Starting
in 2022 and for each subsequent fiscal year of the Company during the Term, Executive shall be eligible to receive long-term incentive
compensation grants with a target grant date fair value for financial accounting purposes of one million dollars ($1,000,000)
(“Annual Equity Awards”), including any performance-based grants at the target level which may be earned based
on the achievement of such performance criteria as established by the Board or the Compensation Committee of the Board (the “Committee”)
on terms no less favorable than those that apply to other senior executives of the Company, generally. On a termination of Executive’s
employment by the Company without Cause or by Executive for Good Reason (each, an “Involuntary Termination”),
100% of the then-outstanding Annual Equity Awards will fully vest and become exercisable, with stock options remaining exercisable
until the earlier of the end of the term of the stock options or one year after the date of termination (except for those Annual
Equity Awards that include performance-based vesting conditions, which will remain outstanding and eligible to vest based on the
level of actual attainment of the relevant performance conditions) (the “Annual Equity Acceleration”).

 

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(ii)            Following
the Employment Commencement Date, the Executive shall receive a special long-term incentive compensation grant comprised of: (A)
performance-based restricted stock units, with a seven year term, that if earned will settle in a number of shares of Company
common stock equal to the target percentage of 1.25% of the fully diluted Company common shares outstanding on the date of grant,
determined on a post-money, post-conversion basis (including any equity awards granted to the Executive and other senior level
executives in connection with the closing of the transactions contemplated by that certain Agreement and Plan of Merger by and
among Mountain Crest Acquisition Corp., MCAC Merger Sub Inc., Suying Liu and Playboy Enterprises, Inc., dated as of September
30, 2020 (the “Closing”) or within thirty (30) days of the filing of Form S-8 as described below) (“Initial
PSUs”) and (B) stock options to purchase a number of shares of Company common stock, with a ten year term, equal to
the target percentage of 0.75% of the fully diluted Company common shares outstanding on the date of grant (determined as set
forth above for the Initial PSUs) (the “Initial Options”). The Initial PSUs and the Initial Options will be
granted no later than thirty (30) days after (and contingent upon) the listing of the shares of Company common stock on the Nasdaq
Stock Market and the registration of the offer and sale of the shares of common stock underlying such awards with the Securities
and Exchange Commission on Form S-8 (which is expected to occur approximately 60 days following the Closing). In addition, if
the fair market value of a share of Company common stock on the date of grant is greater than the fair market value of a share
of Company common stock on the Employment Commencement Date (provided, that, if the Employment Commencement Date occurs within
3 weeks following the Execution Date, the Execution Date shall be used for this calculation), then a portion of the Initial Options
will be converted into a number of time-based restricted stock units equal to (x) the difference between the fair market value
per share of Company common stock on the date of grant minus the fair market value per share of Company common stock on the Employment
Commencement Date (or the Execution Date, as applicable), multiplied by (y) the number of Initial Options (determined without
regard to the conversion described in this sentence), divided by (z) the fair market value of a share of Company common
stock on the date of grant (the “Make-Up RSUs”), rounded down to the nearest whole number of shares. The Initial
PSUs will be eligible to be earned 25% upon achieving each of the following thirty (30) day volume-weighted average price milestones
for a share of Company common stock, subject to Executive’s continued employment or service on the Board through the applicable
vesting date: $20, $30, $40 and $50. Any Initial PSUs that satisfy such vesting terms will be settled within thirty (30) days
after the applicable vesting date. Shares of Company common stock received upon the settlement of the Initial PSUs (and, if applicable,
the Make-Up RSUs) will be subject to transfer restrictions for twelve-months from the date of settlement of the Initial PSUs (or,
if applicable, the Make-Up RSUs), net of a number of shares of Company common stock in respect of the applicable required tax
withholding, to the extent that the Company has cash reserves to provide for such net settlement. The Initial Options will vest
1/3 on the first anniversary of the Employment Commencement Date and then monthly in twenty-four (24) equal installments commencing
on the thirteenth month anniversary of the Employment Commencement Date. If granted, the Make-Up RSUs will be eligible to vest
in three equal installments on each of the first three anniversaries of the Employment Commencement Date, in each case subject
to Executive’s continued employment through the applicable vesting dates. Upon an Involuntary Termination that is not described
in the next following sentence, the Initial PSUs will remain outstanding and eligible to vest based on attainment of the share-price
milestones set forth above until the earlier of the end of the seven-year term of the Initial PSUs or ninety (90) days after the
date of termination, if such Involuntary Termination occurs within 12 months following the Employment Commencement Date, 1/3 of
the Initial Options (and if applicable, 1/3 of the Make-Up RSUs) will become immediately vested and exercisable upon the date
of such termination and any vested Initial Options shall remain exercisable until the earlier of the end of the term of the Initial
Options or one year after the date of termination (the “Special Equity Treatment”). Upon an Involuntary Termination
occurring within 3 months prior to or 24 months after a Change in Control, 100% of the then-outstanding Initial PSUs (and, if
applicable, the Make-Up RSUs) will fully vest, and the Initial Options will become immediately vested and exercisable upon the
date of such termination and remain exercisable until the earlier of the end of the ten-year term or three years after the date
of termination (the “Special Equity CIC Treatment”). Except as specifically provided herein, the Initial Options
and Initial PSUs (and, if applicable the Make-Up RSUs) shall have terms no less favorable than those that apply to other senior
executives of the Company, generally.

 

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4.                  Employee
Benefits.

 

(a)               Retirement
and Welfare Benefits. During the Term, Executive will be eligible to participate in all benefit plans made available by the
Company to its senior executives, including health insurance, life insurance and participation in an Internal Revenue Code (the
 “Code”) Section 401(k) retirement plan. Such benefits will be subject to the applicable limitations and requirements
imposed by the terms of such benefit plans and will be governed in all respects in accordance with the terms of such plans as
in effect from time to time. Notwithstanding the foregoing, nothing in this Agreement shall adversely affect the Company’s
ability to modify or terminate any employee retirement, health or welfare benefit plan at any time.

 

(b)               Paid
Vacation. During the Term, Executive will be entitled to an unlimited amount of paid vacation, subject to the needs of the
business and approval of the CEO (which approval is not to be unreasonably withheld), in accordance with the terms and conditions
of the Company’s vacation policies as in effect from time to time.

 

(c)               Reimbursement
of Business Expenses. The Company will reimburse Executive to the same extent as other senior employees for any reasonable
expenses incurred by Executive during the Term in furtherance of Executive’s duties hereunder, including travel, meals and
accommodations and in respect of technology required to perform remote working arrangements, upon submission by Executive of vouchers
or receipts in accordance with applicable Company policies.

 

(d)              Life
and Disability Insurance. During the Term, the Company agrees to provide Executive with a life insurance policy, at the Company’s
expense, providing for a death benefit in the amount of $10 million and a disability insurance policy, at the Company’s
expense, with an annualized benefit not less than $2.5 million.

 

(e)               Insurance;
Indemnification. During and after the Term, (i) Executive will be covered by such directors’ and officers’ liability
insurance on no less favorable terms as directors and officers (both during and after their term) of the Company or any of the
applicable Affiliates for which Executive serves as a director or officer and (ii) Executive will also be entitled to indemnification
rights and related expense advances and reimbursements to the same extent as any other director or officer (both during and after
their term) of the Company or any of its Affiliates for which Executive serves as a director or officer.

 

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5.                  Termination
of Employment. Executive’s employment will be terminated at the earliest to occur of the following during the Term:
(i) the date on which the Company provides notice to Executive of termination for “Disability” (as defined below);
(ii) the date of Executive’s death; (iii) the date on which the Company provides notice to Executive of termination for
 “Cause” (as defined below); (iv) the date which is thirty (30) days following the date on which the Company provides
notice to Executive of termination without Cause; (v) the date specified by Executive in any notice to the Company of termination
of employment other than for “Good Reason” (as defined below); or (vi) the applicable date as determined in accordance
with the definition of Good Reason if such termination is by Executive for Good Reason.

 

(a)               For
Cause; Resignation by Executive Other than for Good Reason; Death or Disability. If Executive’s employment with the
Company is terminated by the Company for Cause or as a result of Executive’s death or Disability, or Executive resigns his
employment other than for Good Reason, Executive will not be entitled to any further compensation or benefits other than, in each
case if applicable as of the date of termination: (i) any accrued but unpaid Base Salary (payable as provided in Section
3(a) hereof); (ii) in the event that such termination is other than by the Company for Cause, an amount in cash equal to any
annual cash bonus payable to Executive in respect of any previously completed fiscal year of the Company in accordance with Section
3(b) but unpaid as of the date of termination, payable on the same date on which annual cash bonuses are paid to executives
of the Company generally in respect of such fiscal year; (iii) reimbursement for any expenses properly incurred and reported by
Executive prior to the date of termination in accordance with Section 4(c) hereof, payable on the Company’s first
regularly scheduled payroll date which occurs at least 10 business days after the date of termination; and (iv) vested employee
benefits, if any, to which Executive may be entitled under the applicable terms of the Company’s employee benefit plans
as may be in effect as of the date of termination (collectively, the “Accrued Rights”). In addition, Executive
will also be eligible to receive the Pro-Rated Bonus (as defined below) if such termination is for death or Disability.

 

(b)               Termination
by the Company without Cause or Resignation for Good Reason. If Executive’s employment is terminated by the Company
without Cause or Executive resigns his employment for Good Reason, then Executive will be entitled to receive the Accrued Rights,
and if Executive executes a release of claims in the form attached as Exhibit A hereto, subject to any revisions necessary to
reflect changes in applicable law occurring after the date hereof (the “Release”), and the applicable revocation
period with respect to the Release expires within sixty (60) days (or such longer period as required by law) following the date
of termination, then Executive will receive the following:

 

(i)              An
amount in cash equal to the sum of (A) the Base Salary as in effect immediately prior to the date of termination (without regard
to any reduction resulting in Good Reason) plus (B) the target annual bonus for the year of termination (without regard to any
reduction resulting in Good Reason), which total amount will be payable in regular installments in accordance with the Company’s
normal payroll practices (but in no event less frequently than monthly) over a period of twelve (12) months following Executive’s
last day of employment with the Company; provided, however, that the first installment shall not occur until the
first regularly scheduled payroll date of the Company that occurs on or following the effective date of the Release as defined
in Section 8 of the Release and shall include all payments that would have been made had such installments commenced immediately
following Executive’s last day of employment; provided, further that to the extent that the period to consider
the Release spans two calendar years, such first installment shall occur in the second calendar year, to the extent that such
installment constitutes nonqualified deferred compensation for purposes of Section 409A of the Code;

 

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(ii)             An
amount in cash equal to the product of (A) Executive’s target annual cash bonus for the fiscal year in which the date of
termination occurs and (B) a fraction, the numerator of which is the number of days Executive was employed during the fiscal year
in which the date of termination occurs, and the denominator of which is 365, payable on the same date on which annual cash bonuses
are paid to executives of the Company generally in respect of such fiscal year (the “Pro-Rated Bonus”);

 

(iii)            If Executive elects continuation coverage under the Company’s medical, dental and vision program pursuant to Part
6 of Subtitle B of Title I of the Employee Retirement Income Security Act of 1974, as amended (“COBRA”), reimbursement
for the full COBRA premium payments (which reimbursement will be made within thirty (30) days following receipt of evidence from
Executive of Executive’s payment of such premiums), or, if it would result in a better after-tax benefit for the Executive,
direct payment to the provider for the full COBRA premium payments for the 18 calendar months immediately following the end of
the calendar month in which the date of termination occurs (provided that the Company may modify its obligation under this Section
5(b)(iii) to the extent reasonably necessary (and to the minimum extent necessary) to avoid any penalty or excise taxes imposed
on it in connection with the continued payment of premiums by the Company under the Patient Protection and Affordable Care Act
of 2010, as amended) (the “Health Care Continuation”); provided, further that such contributions shall cease
to be effective as of the date that Executive obtains health, dental and vision benefits from a subsequent employer; and

 

(iv)            The Annual Equity Acceleration and the Special Equity Treatment (without duplication).

 

(c)               Termination
by the Company without Cause or Resignation for Good Reason Following a Change in Control. If Executive’s employment
is terminated by the Company without Cause or Executive resigns his employment for Good Reason during the period beginning three
(3) months prior to a Change in Control and ending twenty-four (24) months after such Change in Control, then Executive will be
entitled to receive the Accrued Rights, and, if Executive executes the Release, and the applicable revocation period with respect
to the Release expires within 60 days (or such longer period as required by law) following the date of termination, then Executive
will receive the following in lieu of the amounts described in Section 5(b) above:

 

(i)              An
amount equal to one-and-a-quarter (1.25) times the sum of (A) the Base Salary as in effect immediately prior to the date of termination
(without regard to any reduction resulting in Good Reason) plus (B) the target annual bonus for the year of termination (without
regard to any reduction resulting in Good Reason) (the “Change in Control Severance”), which total amount will
be payable in regular installments in accordance with the Company’s normal payroll practices (but in no event less frequently
than monthly) over a period of fifteen (15) months following Executive’s last day of employment with the Company; provided,
however, that the first installment shall not occur until the first regularly scheduled payroll date of the Company that
occurs on or following the effective date of the Release as defined in Section 8 of the Release and shall include all payments
that would have been made had such installments commenced immediately following Executive’s last day of employment; provided,
further that to the extent that the period to consider the Release spans two calendar years, such first installment shall
occur in the second calendar year, to the extent that such installment constitutes nonqualified deferred compensation for purposes
of Section 409A of the Code. Notwithstanding the foregoing, in the event that the Change in Control constitutes a change in control
event for purposes of Section 409A of the Code, then, to the extent compliant with Section 409A of the Code, the Change in Control
Severance shall be paid in a lump sum on the first regularly scheduled payment date that occurs following the sixtieth (60th)
day following the date of such termination, but in no event later than seventy five (75) days following such termination;

 

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(ii)           The
Pro-Rated Bonus;

 

(iii)          Health Care Continuation; and

 

(iv)          The Annual Equity Acceleration and the Special Equity CIC Treatment (without duplication).

 

(d)               Definitions.
For purposes of this Agreement:

 

(i)              “Affiliate”
as applied to any Person, means any other Person directly or indirectly controlling, controlled by, or under common control with,
that Person. For the purposes of this definition “control” (including, with correlative meanings, the terms
 “controlling”, “controlled by” and “under common control with”), as applied
to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and
policies of that Person, whether through the ownership of voting securities (the ownership of more than 50% of the voting securities
of an entity shall for purposes of this definition be deemed to be “control”), by contract or otherwise.

 

(ii)            “Cause”
means (in each case, other than due to death or Disability): (A) Executive’s conviction of, or plea of guilty or nolo
contendere to, any felony; (B) any material act of theft, dishonesty, embezzlement or misappropriation by Executive against
the Company or any of its Affiliates; (C) Executive’s willful or material breach of a fiduciary obligation to the Company
or any willful malfeasance or gross negligence in the performance of Executive’s duties to the Company; (D) a material violation
by Executive of any written policy of the Company that results in material economic harm to the Company; (E) a willful material
breach by Executive of Section 6(b) or (c) of this Agreement; or (F) any continued willful failure by Executive to follow the
reasonable and lawful written directives of the CEO or the Board that are related to Executive’s position with the Company.
Notwithstanding the foregoing, in no event will the occurrence of any such condition constitute Cause unless (1) the Company provides
written notice to Executive of the existence of the condition giving rise to Cause within thirty (30) days following the Company’s
knowledge of its existence and (2) Executive fails to cure such condition, if curable, within thirty (30) days following the date
of such notice, upon which failure to cure Executive’s employment will immediately terminate for Cause; provided that Executive
shall not be provided the ability to cure repeated occurrences of the same event. For purposes of this Section 5(c)(ii),
no act, or failure to act, by Executive will be considered “willful” unless committed in bad faith and without a reasonable
belief that the act or omission was in the best interests of the Company.

 

(iii)            “Change
in Control” has the meaning set forth in the Company 2021 Equity and Incentive Compensation Plan.

 

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(iv)            “Disability” means Executive is unable, due to physical or mental incapacity, to perform his duties to
the Company under this Agreement, as determined by the Board, for a period of either (A) ninety (90) consecutive days or (B)
one-hundred-eighty (180) days in any 12-month period.

 

(v)             “Good Reason” means, in each case without Executive’s consent, (A) a decrease in Executive’s
base salary, target bonus or target long-term incentive compensation opportunity, other than a decrease of not less than 10% that
is materially consistent with similar decreases required of other senior executives of the Company; (B) a material diminution in
Executive’s duties, responsibilities or authority or an adverse change in Executive’s title (provided, however, that
any change in duties, responsibilities or authority solely due to the Company becoming privately owned will not constitute Good
Reason so long as Executive continues to be the principal financial officer of the Company following such transaction); (C) a requirement
that Executive report to anyone other than the CEO or the Board or, following a Change in Control, the CEO or the board of directors
of any successor to the Company or ultimate parent of any successor or surviving entity; (D) a relocation of Executive’s
primary office location outside of New York City without his express written consent; or (E) a material breach of this Agreement
or any other material compensatory arrangement with the Company by the Company. Notwithstanding the foregoing, in no event will
the occurrence of any such condition constitute Good Reason unless (1) Executive provides notice to the Company of the existence
of the condition giving rise to Good Reason within ninety (90) days following Executive’s knowledge of its existence and
(2) the Company fails to cure such condition within thirty (30) days following the date of such notice, and (3) Executive terminates
employment within thirty (30) days after the end of the cure period.

 

(vi)            “Person” means any individual, corporation, partnership, limited liability company, joint venture, association,
trust or other entity or organization, including a government or political subdivision or an agency or instrumentality thereof.

 

6.                  Restrictive
Covenants.

 

(a)               Acknowledgment.
Executive agrees and acknowledges that, in the course of Executive’s employment, Executive will acquire access to and become
acquainted with information about the Company and its Affiliates that is non-public, confidential or proprietary in nature. Executive
recognizes that in order to guard the legitimate interests of the Company, it is necessary for it to protect all “Confidential
Information” (as defined below) and the disclosure of Confidential Information would place the Company at a competitive
disadvantage. Executive represents and warrants to the Company that Executive is not a party to any agreement or understanding,
written or oral, and is not subject to any restriction, which, in either case, could prevent Executive from entering into this
Agreement or performing all of Executive’s duties and obligations hereunder.

 

(b)               Confidential
Information. During Executive’s employment and at all times following Executive’s termination of employment for
any reason, Executive will hold in confidence all non-public information, matters and materials of the Company, including, without
limitation, know-how, trade secrets, customer lists, pricing policies, operational methods, information relating to products,
processes, customers, services and other business and financial affairs and information as to customers or other third parties
(collectively, the “Confidential Information”), in each case to which Executive has had or may have access
and will not, directly or indirectly, use or disclose such Confidential Information to any Person other than (i) to the extent
required in the course of Executive’s employment or as otherwise expressly required in connection with court process or
requested by a governmental or regulatory body, (ii) as may be required by law(with advance notice to the Company prior to any
such disclosure to the extent legally permitted) or (iii) to Executive’s personal advisers for purposes of enforcing
or interpreting this Agreement (or in the case of any other litigation between Executive and the Company), or to a court or arbitrator
for the purpose of enforcing or interpreting this Agreement (or in the case of any other litigation between Executive and the
Company), and who in each case have been informed as to the confidential nature of such Confidential Information and, as to advisers,
their obligation to keep such Confidential Information confidential. “Confidential Information” will not include any
information which is in the public or industry domain during Executive’s employment, provided such information is not in
the public or industry domain as a consequence of any action or inaction by Executive in violation of this Agreement. Upon the
termination of Executive’s employment for any reason, Executive will deliver to the Company all documents, papers and records
(including, but not limited to, electronic media) in Executive’s possession or subject to Executive’s control that
(x) belong to the Company or (y) contain or reflect any Confidential Information concerning the Company.

 

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(c)               Non-Solicitation.
In consideration of the Company’s obligations hereunder, during Executive’s employment and for a period of 12 months
thereafter, Executive will not, whether for Executive’s own account or for any other Person, directly or indirectly, with
or without compensation solicit, retain, knowingly hire, knowingly offer to hire, entice away or in any manner persuade or attempt
to persuade any officer or employee of the Company or any of its subsidiaries who was employed, engaged or recruited during Executive’s
employment with the Company to discontinue his or her relationship with the Company. Executive will not directly or indirectly
at any time during Executive’s employment or for 12 months thereafter, attempt to disrupt, damage, impair or interfere with
the Company’s business by disrupting the relationship between the Company and any of its consultants, agents, representatives
or vendors. Executive acknowledges that this covenant is necessary to enable the Company to maintain a stable workforce and remain
in business. Non-targeted, general, solicitations to the public shall be deemed not to breach this Section 6(c).

 

(d)               Discoveries
and Inventions; Work Made for Hire.

 

(i)              Executive
agrees that upon conception and/or development of any idea, discovery, invention, improvement, software, writing or other material
or design that: (A) relates to the business of the Company, or (B) relates to the Company’s actual or demonstrably anticipated
research or development, or (C) results from any work performed by Executive for the Company, Executive hereby assigns to the
Company the entire right, title and interest in and to any such idea, discovery, invention, improvement, software, writing or
other material or design. Pursuant to California Labor Code Section 2870, Executive has no obligation to assign an invention that
the Executive developed entirely on his or her own time without using the Company’s equipment, supplies, facilities, or
trade secret information except for those inventions that either: (1) relate at the time of conception or reduction to practice
of the invention to the Company’s business, or actual or demonstrably anticipated research or development of the Company;
or (2) result from any work performed by the Executive for the Company. Executive agrees that any idea, discovery, invention,
improvement, software, writing or other material or design that relates to the business of the Company or relates to the Company’s
actual or demonstrably anticipated research or development which is conceived or suggested by Executive, either solely or jointly
with others, within one (1) year following termination of Executive’s employment with the Company shall be presumed to have
been so made, conceived or suggested in the course of such employment with the use of the Company’s equipment, supplies,
facilities, and/or trade secrets.

 

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(ii)             In
order to determine the rights of Executive and the Company in any idea, discovery, invention, improvement, software, writing or
other material, and to insure the protection of the same, Executive agrees that during Executive’s employment, and for one
(1) year after termination of Executive’s employment with the Company, Executive will disclose immediately and fully to
the Company any idea, discovery, invention, improvement, software, writing or other material or design conceived, made or developed
by Executive solely or jointly with others. The Company agrees to keep any such disclosures confidential. Executive also agrees
to record descriptions of all work in the manner directed by the Company and agrees that all such records and copies, samples
and experimental materials will be the exclusive property of the Company. Executive agrees that at the request of and without
charge to the Company, but at the Company’s expense, Executive will execute a written assignment of the idea, discovery,
invention, improvement, software, writing or other material or design to the Company and will assign to the Company any application
for letters patent or for trademark registration made thereon, and to any common-law or statutory copyright therein; and that
Executive will do whatever may be necessary or desirable to enable the Company to secure any patent, trademark, copyright, or
other property right therein in the United States and in any foreign country, and any division, renewal, continuation, or continuation
in part thereof, or for any reissue of any patent issued thereon. In the event the Company is unable, after reasonable effort,
and in any event after ten (10) business days, to secure Executive’s signature on a written assignment to the Company of
any application for letters patent or to any common law or statutory copyright or other property right therein, whether because
of Executive’s physical or mental incapacity or for any other reason whatsoever, Executive irrevocably designates and appoints
the Corporate Secretary of the Company as Executive’s attorney-in-fact to act on Executive’s behalf to execute and
file any such application and to do all other lawfully permitted acts to further the prosecution and issuance of such letters
patent, copyright or trademark.

 

(iii)           Executive
acknowledges that, to the extent permitted by law, all work papers, reports, documentation, drawings, photographs, negatives,
tapes and masters therefor, prototypes and other materials (hereinafter, “items”) (including, without limitation,
any and all such items generated and maintained on any form of electronic media) generated by Executive during Executive’s
employment with the Company shall be considered a “work made for hire” and that ownership of any and all copyrights
in any and all such items shall belong to the Company.

 

(e)               Remedies
for Breach.

 

(i)              The
Company and Executive agree that the restrictive covenants contained in this Agreement are severable and separate, and the unenforceability
of any specific covenant herein will not affect the validity of any other covenant set forth herein. Executive acknowledges that
the Company will suffer irreparable harm as a result of a material breach of such restrictive covenants by Executive for which
an adequate monetary remedy does not exist and a remedy at law may prove to be inadequate. Accordingly, in the event of any actual
or threatened material breach by Executive of any provision of this Section 6, the Company will, in addition to any other remedies
permitted by law, be entitled to seek to obtain remedies in equity, including, without limitation, specific performance, injunctive
relief, a temporary restraining order, and/or a permanent injunction in any court of competent jurisdiction (each, an “Equitable
Remedy”), to prevent or otherwise restrain a material breach of this Section 6, without the necessity of proving damages,
posting a bond or other security. Such relief will be in addition to and not in substitution of any other remedies available to
the Company. The existence of any claim or cause of action of Executive against the Company, whether predicated on this Agreement
or otherwise, will not constitute a defense to the enforcement by the Company of said covenants.

 

    10

     

    

 

 

(ii)           
Reasonableness. Executive acknowledges that Executive’s obligations under this Agreement are reasonable in
the context of the nature of the Company’s business and the competitive injuries likely to be sustained by the Company if
Executive were to violate such obligations and that these obligations do not place an undue burden on Executive. It is the desire
and intent of the parties hereto that the provisions of this Agreement shall be enforced to the fullest extent legally permissible.
Accordingly, if any particular provision(s) of this Agreement shall be adjudicated to be invalid or unenforceable, the court may
modify or sever such provision(s), such modification or deletion to apply only with respect to the operation of such provision(s)
in the particular jurisdiction in which such adjudication is made. In addition, if any one or more of the provisions contained
in this Agreement shall for any reason be held to be excessively broad as to duration, geographical scope, activity or subject,
it shall be construed by limiting and reducing it, so as to be enforceable to the extent compatible with the applicable law as
it shall then appear. The remaining provisions of this Agreement shall remain in full force and effect.

 

(f)               
Permitted Disclosures. Pursuant to 18 U.S.C. §1833(b), Executive will not be held criminally or civilly liable
under any Federal or State trade secret law for the disclosure of a trade secret of the Company that (i) is made (A) in confidence
to a Federal, State, or local government official, either directly or indirectly, or to Executive’s attorney, and (B) solely
for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document that
is filed under seal in a lawsuit or other proceeding. If Executive files a lawsuit for retaliation by the Company for reporting
a suspected violation of law, Executive may disclose the trade secret to Executive’s attorney and use the trade secret information
in the court proceeding, if Executive (1) files any document containing the trade secret under seal, and (2) does not disclose
the trade secret, except pursuant to court order. Nothing in this Agreement is intended to conflict with 18 U.S.C. §1833(b)
or create liability for disclosures of trade secrets that are expressly allowed by such section. Further, nothing in any agreement
Executive has with the Company will prohibit or restrict Executive from making any voluntary disclosure of information or documents
related to any violation of law to any governmental agency or legislative body, or any self-regulatory organization, in each case,
without advance notice to the Company.

 

7.                
Assignment. This Agreement, and all of the terms and conditions hereof, will bind the Company and its successors
and assigns and will bind Executive and Executive’s heirs, executors and administrators. No transfer or assignment of this
Agreement will release the Company from any obligation to Executive hereunder. Neither this Agreement, nor any of the Company’s
rights or obligations hereunder, may be assigned or otherwise subject to hypothecation by Executive, and any such attempted assignment
or hypothecation will be null and void. The Company may assign any of its rights hereunder, in whole or in part, to any successor
or assign in connection with the sale of all or substantially all of the Company’s assets or equity interests or in connection
with any merger, acquisition and/or reorganization.

 

    11

     

    

 

8.                 
General.

 

(a)              
Notices. All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in
writing and shall be deemed to have been given: (i) when delivered by hand (with written confirmation of receipt); (ii) when
received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (iii) on the date sent by facsimile
or e-mail; or (iv) on the third (3rd) day after the date mailed, by certified or registered mail, return receipt requested,
postage prepaid. Such communications must be sent to the respective parties at the following addresses (or at such other address
for a party as shall be specified in a notice given in accordance with this Section 8(a)):

 

To the Company:

 

PLBY Group, Inc.

c/o Chris Riley, General Counsel

10960 Wilshire Blvd.,

Suite 2200

Los Angeles, CA 90024

 

To Executive:

 

At the address shown in the Company’s
personnel records.

 

(b)             Entire Agreement. This Agreement (including any Exhibits hereto) constitutes the sole and entire agreement of the
parties to this Agreement with respect to the subject matter contained herein and therein, and, effective as of the Execution Date,
supersedes all prior and contemporaneous representations, warranties, understandings and agreements, both written and oral, with
respect to such subject matter. Notwithstanding the foregoing, the restrictive covenants in Section 6 of this Agreement
do not supersede, and are in addition to, any restrictive covenants in any other types of agreements entered into between Executive
and the Company, such as shareholder agreements or incentive equity award agreements.

 

(c)              
Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

(d)              Amendment
and Modification; Waiver. This Agreement may only be amended, modified or supplemented by an agreement in writing signed by
all of the parties hereto. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from
this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power
or privilege.

 

(e)              
Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State
of New York without giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other
jurisdiction).

 

    12

     

    

 

(f)               Survivorship.
The provisions of this Agreement necessary to carry out the intention of the parties as expressed herein will survive the termination
or expiration of this Agreement, including without limitation, the provisions of Section 6 hereof.

 

(g)              Construction.
The parties acknowledge that this Agreement is the result of arm’s-length negotiations between sophisticated parties, each
afforded representation by legal counsel. Each and every provision of this Agreement will be construed as though both parties
participated equally in the drafting of the same, and any rule of construction that a document will be construed against the drafting
party will not be applicable to this Agreement.

 

(h)             Withholding.
All compensation payable to Executive pursuant to this Agreement will be subject to any applicable statutory withholding taxes
and such other taxes as are required or permitted under applicable law and such other deductions or withholdings as authorized
by Executive to be collected with respect to compensation paid to Executive. Notwithstanding any provision of this Agreement,
the Company shall not be obligated to guarantee any particular tax result for Executive with respect to any payment provided to
Executive hereunder, and Executive shall be responsible for any personal income taxes imposed on Executive with respect to any
such payment.

 

(i)                
Section 409A. The intent of the parties is that payments and benefits under this Agreement comply with, or be exempt
from, Section 409A of the Code, to the extent subject thereto, and accordingly, to the maximum extent permitted, this Agreement
shall be interpreted and administered to be in compliance therewith. Notwithstanding anything contained herein to the contrary,
Executive will not be considered to have terminated employment with the Company for purposes of any payments under this Agreement
which are subject to Section 409A of the Code until Executive would be considered to have incurred a “separation from service”
from the Company within the meaning of Section 409A of the Code. Each amount to be paid or benefit to be provided under this Agreement
shall be construed as a separate identified payment for purposes of Section 409A of the Code. Without limiting the foregoing and
notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or
tax penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits that would otherwise be provided
pursuant to this Agreement or any other arrangement between Executive and the Company during the six-month period immediately following
Executive’s separation from service shall instead be paid on the first business day after the date that is six months following
Executive’s separation from service (or, if earlier, Executive’s date of death). To the extent required to avoid an
accelerated or additional tax under Section 409A of the Code, amounts reimbursable to Executive under this Agreement shall be paid
to Executive on or before the last day of the year following the year in which the expense was incurred and the amount of expenses
eligible for reimbursement (and in kind benefits provided to Executive) during one year may not affect amounts reimbursable or
provided in any subsequent year. The Company makes no representation that any or all of the payments described in this Agreement
will be exempt from or comply with Section 409A of the Code and makes no undertaking to preclude Section 409A of the Code from
applying to any such payment.

 

(j)                
No Mitigation. The Company agrees that, upon termination of Executive’s employment hereunder, Executive is
not required to seek other employment or to attempt in any way to reduce any amounts payable to Executive by the Company under
this Agreement or otherwise. Furthermore, no payment or benefit provided for in this Agreement or elsewhere will be reduced by
any compensation earned by Executive as the result of employment by another employer.

 

    13

     

    

 

(k)              Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be
deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic
transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

(l)               Legal
Fees. The Company agrees to reimburse Executive for all reasonable and customary attorneys’ fees and disbursements incurred
by the Executive in connection with the review, negotiation, preparation and execution of this Agreement and any related agreements,
and any other related equity or investment documentation (including but not limited to Executive’s initial equity award),
promptly upon the Executive’s presentation to the Company of a copy of the written invoice from the Executive’s legal
counsel evidencing such fees and disbursements (up to a maximum of $20,000).

 

(m)            
280G Payments. In the event that any payment or benefit received or to be received by the Executive, whether pursuant
to the terms of this Agreement or any other plan, arrangement or agreement (each a “Payment” and all such payments
and benefits being hereinafter referred to as the “Total Payments”) would be subject, in whole or in part, to
the excise tax imposed under Section 4999 of the Code (the “Excise Tax”), then the Total Payments will be reduced,
but only to the extent that Executive would retain a greater amount on an after-tax basis than Executive would retain absent such
reduction, such that the value of the Total Payments that Executive is entitled to receive will be $1 less than the maximum amount
which Executive may receive without becoming subject to the Excise Tax. A nationally recognized accounting or consulting firm engaged
by the Company shall perform the foregoing calculations, and, in connection therewith, shall perform customary parachute mitigation
analysis and calculations. The Company shall bear all expenses with respect to the determinations by such accounting firm required
to be made hereunder. The accounting firm shall provide its calculations to the Company and Executive within fifteen (15) days
after the date on which Executive’s right to a Payment is triggered (if requested at that time by the Company or Executive)
or such other time as requested by the Company or Executive. Any good faith determinations of the accounting or consulting firm
made hereunder shall be final, binding and conclusive upon the Company and Executive. Any reduction in payments and/or benefits
pursuant to this Section 8(m) will occur in the following order: (1) reduction of cash payments; (2) cancellation of accelerated
vesting of equity awards other than stock options; (3) cancellation of accelerated vesting of stock options; and (4) reduction
of other benefits payable to Executive.

 

    14

     

    

  

IN WITNESS WHEREOF
AND INTENDING TO BE LEGALLY BOUND THEREBY, the parties hereto have executed and delivered this Agreement as of the year and date
first above written.

 

	 	PLAYBOY ENTERPRISES INC.
	 	 
	 	By:	 /s/ Ben Kohn
	 	 	Name: 	Ben Kohn
	 	 	Title: 	CEO
	 	 
	 	EXECUTIVE
	 	 
	 	/s/ Lance Barton
	 	Lance Barton

 

[Signature Page to Employment
Agreement]

 

    15

     

    

 

Exhibit A

 

Form of General Release of Claims

 

This General Release
of Claims (this “Agreement”) is entered into by and between Playboy Enterprises, Inc., a Delaware corporation
(the “Company”), and Lance Barton (“Executive”) on the below-indicated date.

 

WHEREAS, Executive,
and the Company entered into an Employment Agreement dated as of February 11, 2021 (the “Employment Agreement”),
that provides Executive certain severance and other benefits in the event of certain terminations of Executive’s employment;

 

WHEREAS, Executive’s
employment has so terminated; and

 

WHEREAS, pursuant
to Section 5(b) or 5(c) of the Employment Agreement, a condition precedent to Executive’s entitlement to certain severance
and other benefits thereunder is his agreement to this Agreement.

 

NOW, THEREFORE, in
consideration of the severance and other benefits provided under Section 5(b) or 5(c) of the Employment Agreement, the sufficiency
of which Executive hereby acknowledges, Executive agrees as follows:

 

1.                 
General Release of Claims. Executive, for and on behalf of Executive and Executive’s heirs, executors,
administrators, successors and assigns, hereby voluntarily, knowingly and willingly release and forever discharge the Company and
all of its past and present parents, subsidiaries, and affiliates, each of their respective members, officers, directors, stockholders,
partners, employees, agents, representatives and attorneys, and each of their respective subsidiaries, affiliates, estates, predecessors,
successors, and assigns (each, individually, a “Releasee,” collectively referred to as the “Releasees”)
from any and all rights, claims, charges, actions, causes of action, complaints, sums of money, suits, debts, covenants, contracts,
promises, obligations, damages, demands or liabilities of every kind whatsoever, in law or in equity, whether known or unknown,
suspected or unsuspected (collectively, “Claims”) which Executive or Executive’s heirs, executors, administrators,
successors or assigns ever had, now has or may hereafter claim to have by reason of any matter, cause or thing whatsoever: (i)
arising from the beginning of time up to the date Executive executes this Agreement with respect to (A) any such Claims relating
in any way to Executive’s employment relationship with the Company or any other Releasee, and (B) any such Claims arising
under any federal, local or state statute or regulation, including, without limitation, the Age Discrimination in Employment Act
of 1967, as amended by the Older Workers Benefit Protection Act, Title VII of the Civil Rights Act of 1964, the Americans with
Disabilities Act of 1990, the Employee Retirement Income Security Act of 1974, each as amended and including each of their respective
implementing regulations and/or any other federal, state, local or foreign law (statutory, regulatory or otherwise) that may be
legally waived and released; (ii) arising out of or relating to the termination of Executive’s employment; or (iii) arising
under or relating to any policy, agreement, understanding or promise, written or oral, formal or informal, between the Company
or any other Releasee and Executive.

 

     

     

    

 

2.                 
Exceptions to General Release of Claims.

 

(a)            Nothing contained in this Agreement will in any way diminish or impair: (i) any Claims Executive may have that cannot be
waived under applicable law, (ii) Executive’s rights to severance, the Accrued Rights and other vested benefits provided
under Section 5 of the Employment Agreement, (iii) any rights Executive may have to indemnification from the Company or
coverage under any director and officer liability insurance policy or (iv) any rights Executive may have in respect of any shares
or other vested equity interests Executive holds in the Company or any of its Affiliates. The Company acknowledges and agrees that
this Agreement does not preclude Executive from filing any charge with the Equal Employment Opportunity Commission, the National
Labor Relations Board, the Securities and Exchange Commission or any other governmental agency or from any way participating in
any investigation, hearing, or proceeding of any government agency. Executive does not need prior authorization from the Company
to make any such reports or disclosures and except as may otherwise be required by applicable law, is not required to notify the
Company that Executive has made such reports or disclosures. This Agreement does not limit Executive’s right to receive an
award for information provided to any governmental agency or entity.

 

(b)           Pursuant
to 18 U.S.C. §1833(b), Executive will not be held criminally or civilly liable under any Federal or State trade secret law
for the disclosure of a trade secret of the Company that (i) is made (A) in confidence to a Federal, State, or local government
official, either directly or indirectly, or to Executive’s attorney, and (B) solely for the purpose of reporting or
investigating a suspected violation of law; or (ii) is made in a complaint or other document that is filed under seal in a lawsuit
or other proceeding. If Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Executive
may disclose the trade secret to his attorney and use the trade secret information in the court proceeding, if Executive (1) files
any document containing the trade secret under seal, and (2) does not disclose the trade secret, except pursuant to court order.
Nothing in this Agreement is intended to conflict with 18 U.S.C. §1833(b) or create liability for disclosures of trade secrets
that are expressly allowed by such section. Further, nothing in any agreement Executive has with the Company will prohibit or
restrict Executive from making any voluntary disclosure of information or documents related to any violation of law to any governmental
agency or legislative body, or any self-regulatory organization, in each case, without advance notice to the Company.

 

(c)             
Executive acknowledges and agrees that he is aware of California Civil Code Section 1542, which provides as follows:

 

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

 

With full awareness and understanding of
the above provisions, Executive hereby waives any and all right he may have under Section 1542, as well as under any other statutes
or common law principles of similar effect. Executive intends to, and hereby does, release the Released Parties from claims which
he does not presently know or suspect to exist.

 

    2

     

    

 

3.                  
Affirmations. Executive affirms that he has not filed, caused to be filed, or presently is a party to any claim,
complaint, or action against the Company or the other Releasees in any forum or form. Executive furthermore affirms that Executive
has no known workplace injuries or occupational diseases, and has been provided and has not been denied any leave requested under
the Family and Medical Leave Act. Executive disclaims and waives any right of reinstatement with the Company.

 

4.                   Restrictive
Covenants. Executive acknowledges and agree that each of the restrictive covenants to which Executive is subject as of the
date hereof (including without limitation, the provisions set forth in Section 6 of the Employment Agreement) will continue
to apply in accordance with their terms for the applicable periods with respect thereto.

 

5.                  Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State
of California without giving effect to any choice or conflict of law provision or rule (whether of the State of California or any
other jurisdiction).

 

6.                   No
Admission of Wrongdoing. The parties agree that neither this Agreement nor the furnishing of the consideration set forth in
the Employment Agreement will be deemed or construed at any time for any purpose as an admission by any party of any liability,
wrongdoing or unlawful conduct of any kind.

 

7.                   Consultation With Attorney; Voluntary Agreement. Executive acknowledges that (a) the Company advised Executive of
Executive’s right to consult with an attorney of Executive’s own choosing prior to executing this Agreement, (b) Executive
has carefully read and fully understands all of the provisions of this Agreement, (c) Executive is entering into this Agreement,
including the releases set forth in Section 1, knowingly, freely and voluntarily in exchange for good and valuable consideration
and (d) Executive would not be entitled to the benefits described in the applicable sections of the Employment Agreement in the
absence of this Agreement.

 

8.                 
Revocation. Executive acknowledges that Executive has been given twenty-one (21) calendar days to consider the terms
of this Agreement, although Executive may sign it sooner. Executive agrees that any modifications, material or otherwise, made
to this agreement do not restart or affect in any manner the original twenty-one (21) calendar day consideration period. Executive
will have seven calendar days from the date on which Executive sign this Agreement to revoke Executive’s consent to the terms
of this Agreement by providing notice to the Company in accordance with Section 8(a) of the Employment Agreement. Notice
of such revocation must be received within the seven calendar days referenced above. In the event of such revocation by Executive,
this Agreement will not become effective and Executive will not have any rights under Section 5(b) or 5(c) of the Employment
Agreement. Provided that Executive does not revoke this Agreement within such seven calendar day period, this Agreement will become
effective on the eighth calendar day after the date on which Executive signs this Agreement.

 

[Remainder
of page is left blank intentionally]

 

    3

     

    

 

IN WITNESS WHEREOF
AND INTENDING TO BE LEGALLY BOUND THEREBY, the parties hereto have executed and delivered this Agreement as of the date written
below.

 

	 	PLAYBOY ENTERPRISES INC.
	 	 
	 	By:	 
	 		Name:
	 		Title:
	 	 
	 	EXECUTIVE
	 	
	 	Lance Barton

 

[Signature Page to Release Agreement]Exhibit 10.32

 

OPTION and
RSU ACKNOWLEDGMENT AND LOCK-UP Agreement

 

This Option and RSU
Acknowledgment and Lock-Up Agreement (this “Agreement”) is made as of February 10, 2021, by and
between Playboy Enterprises, Inc., a Delaware corporation (the “Company”), and _____________ (the “Participant”).

 

recitals

 

WHEREAS, pursuant to
the Company’s 2018 Equity Incentive Plan, as amended from time to time (the “Plan”) and award agreement(s)
between the Company and the Participant, the Company heretofore granted to the Participant (i) option(s) (the “Options”)
to purchase shares of common stock, par value $0.01, of the Company (“Company Common Stock”) and/or (ii)
restricted stock unit awards (the “RSUs”), in each case as set forth on Exhibit A hereto;

 

WHEREAS, the Company
is party to an Agreement and Plan of Merger (the “Merger Agreement”), dated as of September 30, 2020,
by and among Mountain Crest Acquisition Corp., a Delaware corporation (“Parent”), MCAC Merger Sub Inc.,
and the Company;

 

WHEREAS, the Merger
Agreement provides that immediately prior to the consummation of the transactions contemplated by the Merger Agreement (the “Closing”),
the vesting of each Option and RSU will be accelerated in full; and

 

WHEREAS, at the Closing,
the Options and RSUs will be cancelled in exchange for the consideration as described in Section 2.4 of the Merger Agreement.

 

WHEREAS, in order to
facilitate the transactions contemplated by the Merger Agreement, the Participant has agreed not to sell or transfer shares of
Parent common stock (“Parent Common Stock”) received in respect of such Options and/or RSUs for a period
of twelve months following the Closing, subject to certain exceptions.

 

NOW, THEREFORE, in
consideration of the promises and agreements contained herein and other good and valuable consideration, including but not limited
to Parent’s and the Company’s execution and compliance with the Merger Agreement and all of the documents executed
by the Participant, the sufficiency and receipt of which are hereby acknowledged, the Participant agrees as follows:

 

agreement

 

1.                  
Acknowledgement and Lock Up. The Participant hereby acknowledges and agrees that each Option and RSU is subject to
the following actions contemplated by the Merger Agreement on the terms described therein: (a) the vesting of each outstanding
and unexercised Option and each outstanding RSU will be fully accelerated immediately prior to the Closing, subject to the Participant
remaining continuously employed with the Company through such time, (b) each outstanding and unexercised Option will be assumed
by Parent and automatically converted into an Assumed Option (as defined in the Merger Agreement) exercisable for shares of Parent
Common Stock in accordance with the terms and conditions of the Merger Agreement, and (c) each outstanding RSU will be terminated
and settled in shares of Parent Common Stock following the Closing in accordance with the terms and conditions of the Merger Agreement
(collectively, the “Option and RSU Treatment”). Further, the Participant acknowledges and agrees that
(x) the Option and RSU Treatment is in accordance with the terms of the award agreement(s) related to the Assumed Options and terminated
RSUs and (y) as a result of such Option and RSU Treatment, the Options and RSUs will be cancelled and terminated. Finally, the
Participant hereby acknowledges and agrees that the Participant will not exercise any Assumed Option until Parent has filed an
effective Form S-8 (or other applicable form) with the United States Securities and Exchange Commission.

 

     

     

    

 

Subject to Early Release
(defined below), during the twelve month period following the Closing, the Participant agrees that he or she will not offer, sell,
contract to sell, pledge or otherwise dispose of, directly or indirectly, any of the shares of Parent Common Stock received upon
exercise of the Assumed Options or upon settlement of the terminated RSUs, or enter into a transaction that would have the same
effect, or enter into any swap, hedge or other arrangement that transfers, in whole or in part, any of the economic consequences
of ownership of such shares of Parent Common Stock, whether any of these transactions are to be settled by delivery of any shares
of Parent Common Stock or otherwise, publicly disclose the intention to make any offer, sale, pledge or disposition, or to enter
into any transaction, swap, hedge or other arrangement, or engage in any short sales with respect to any securities of Parent (such
restrictions, the “Lock Up”); provided, however, that the Lock Up shall not apply to any
(a) transfers to satisfy tax withholding obligations in connection with the exercise of any Assumed Options or the settlement of
the terminated RSUs; (b) transfers in payment on a “net exercise” or “cashless” basis of the exercise or
purchase price with respect to the exercise of the Assumed Options; (c) transfers or distributions to the Participant’s direct
or indirect affiliates (within the meaning of Rule 405 under the Securities Act of 1933, as amended); (d) transfers by bona fide
gift to a member of the Participant’s immediate family or to a trust, the beneficiary of which is the Participant or a member
of the Participant’s immediate family for estate planning purposes; (e) transfers by virtue of the laws of descent and distribution
upon death of the Participant; (f) transfers pursuant to a qualified domestic relations order; (g) transfers to the Company’s
officers, directors or their affiliates; (h) pledges of the shares of Parent Common Stock received upon exercise of the Assumed
Options or upon settlement of the terminated RSUs (the “Lock-up Shares”) as security or collateral in
connection with a borrowing or the incurrence of any indebtedness by the Participant, provided, however, that such borrowing or
incurrence of indebtedness is secured by a portfolio of assets or equity interests issued by multiple issuers; or (i) the establishment
of a trading plan pursuant to Rule 10b5-1 promulgated under the Securities Exchange Act of 1934, as amended, provided, however,
that such plan does not provide for the transfer of Lock-up Shares during the Lock Up. Notwithstanding the foregoing, (x) if the
volume weighted average price of the shares of Parent Common Stock after Closing equals or exceeds $14.00 per share (as adjusted
for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30 consecutive
trading day period, fifty percent (50%) of the shares of Parent Common Stock issuable upon exercise of the Assumed Options or settlement
of the terminated RSUs shall be released from the Lock Up on a pro-rata basis and (y) if, subsequent to the Closing, Parent consummates
a liquidation, merger, stock exchange or other similar transaction which results in all of Parent’s stockholders having the
right to exchange their shares of Parent Common Stock for cash, securities or other property, then all of the Assumed Options,
terminated RSUs and shares of Parent Common Stock into which they are exercisable or settled shall be released from the Lock Up
immediately prior to the date of such liquidation, merger, stock exchange or similar transaction (each of clause (x) and (y), an
 “Early Release”).

 

2.                  
Representations and Warranties. The Participant represents and warrants as follows: (a) the Options have not been
exercised in whole or in part by the Participant or transferred or assigned by the Participant to any person or entity and the
Participant has not entered into any agreement to transfer or assign such Options to any person or entity; (b) the RSUs have not
been transferred or assigned by the Participant to any person or entity and the Participant has not entered into any agreement
to transfer or assign such RSUs to any person or entity; (c) the execution, delivery and performance of this Agreement by the Participant
and the consummation of the transactions contemplated hereby will not result in a breach of, constitute a default under or give
rise to any right or cause of action under any contractual obligations of the Participant; (d) the Company has made no representations
to the Participant regarding the fair market value of the shares of Company Common Stock; (e) this Agreement has been duly and
validly executed and delivered by the Participant; and (f) this Agreement is a valid and binding obligation of the Participant
and the Associated Parties, and is enforceable against the Participant and each of the Associated Parties in accordance with its
terms.

 

3.                  
No Claims Filed. The Participant affirms that, as of the date of the execution of this Agreement, the Participant
has not, with respect to the Options or RSUs, filed a lawsuit, charge, claim or complaint with any governmental agency or in any
court against the Company.

 

    2 

     

    

 

4.                
Taxes. The Company shall withhold from any payment contemplated by this Agreement all applicable federal, state,
city or other taxes as the Company is required to withhold pursuant to any applicable law, regulation or ruling. The methods pursuant
to which any such withholding obligations may be satisfied will continue to be governed by the terms and conditions set forth in
the applicable award agreement(s) related to the Assumed Options or terminated RSUs. The Participant acknowledges and agrees that
the Company is not guaranteeing any particular tax result for the Participant with respect to any payment or benefit provided in
respect of the Assumed Options or terminated RSUs and that the Participant shall continue to be responsible for any taxes imposed
on the Participant with respect to such Assumed Options or RSUs.

 

5.                
Voluntary Execution. The Participant acknowledges that the Participant is executing this Agreement voluntarily and
of the Participant’s own free will and that the Participant intends to be bound by the terms of this Agreement. Further,
the Participant acknowledges that the Participant has had an opportunity to carefully review this Agreement with the Participant’s
attorney prior to executing it or warrants that the Participant chooses not to have the Participant’s attorney review this
Agreement.

 

6.                
Governing Law. This Agreement is to be governed by, and construed and enforced in accordance with, the laws of the
State of Delaware, without regard to its rules of conflict of laws.

 

7.               
Entire Agreement; Modifications and Waivers; Successors and Assigns. This Agreement supersedes all prior agreements
and understandings between the parties hereto with respect to the treatment of the Options and RSUs contemplated hereby. This Agreement
may not be modified, waived or changed in any manner by the Participant unless agreed to in writing by the Company. This Agreement
shall be binding upon and inure to the benefit of the Participant and the Participant’s heirs, successors, assigns, representatives,
affiliates and agents.

 

8.                 
Severability. Any term or provision of this Agreement that is invalid or unenforceable in any jurisdiction will,
as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable
the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions
of this Agreement in any other jurisdiction. If any provision of this Agreement is so broad as to be unenforceable, the provision
will be interpreted to be only so broad as is enforceable.

 

9.                 
Counterparts. This Agreement may be executed in separate counterparts, each of which will be deemed an original but
all of which will constitute but one instrument.

 

10.               
Operation of Agreement. This Agreement will be binding immediately upon its execution, but, notwithstanding any provision
of this Agreement to the contrary, this Agreement will not become effective or operative (and neither party will have any obligation
hereunder) until the consummation of the transactions contemplated by the Merger Agreement.

 

[Signature page follows.]

 

    3 

     

    

 

IN WITNESS WHEREOF,
the undersigned has executed this Agreement as of the date first above written.

 

	 	PARTICIPANT
	 	 

	 	
	 	Name:

 

     

     

    

 

Accepted by:

 

PLAYBOY ENTERPRISES,
INC.

 

	By:	 	

Name:

Title:

 

     

     

    

 

Exhibit
A

 

Options

 

	Date of
    Award 

    Agreement	Number
    of Shares of 

    Company Common Stock 

    Subject to the Option	Exercise
    Price per Share 

    of Company Common

    Stock
	 	 	 
	 	 	 

 

RSUs

 

	Date of
    Award 

    Agreement	Number
    of RSUs

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00321-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00321-of-00352.parquet"}]]