Document:

spark-amendmentno

EXECUTION VERSION  132654221v6 AMENDMENT NO. 1  TO FINANCING AGREEMENT  AMENDMENT NO. 1 TO FINANCING AGREEMENT, dated as of August 5, 2022  (this "Amendment"), to the Financing Agreement, dated as of March 11, 2022 (as amended, restated,  amended and restated, supplemented, replaced or otherwise modified from time to time, the “Financing  Agreement”), by and among Spark Networks SE, a Societas Europaea (Europäische Gesellschaft) with  registered seat in Munich, Federal Republic of Germany, registered with the commercial register  (Handelsregister) of the local court (Amtsgericht) of Munich, Federal Republic of Germany under HRB  232591 (the “Parent”), Spark Networks, Inc., a Delaware corporation (“Spark Networks”), Zoosk, Inc., a  Delaware corporation (“Zoosk”, and together with the Parent, Spark Networks, and each other Person that  executes a joinder agreement and becomes a “Borrower” thereunder, each, a “Borrower” and, collectively,  the “Borrowers”), each subsidiary of the Parent listed as a “Guarantor” on the signature pages thereto  (together with each other Person that executes a joinder agreement and becomes a “Guarantor” thereunder,  each, a “Guarantor” and, collectively, the “Guarantors”), the lenders from time to time party thereto (each,  a “Lender” and, collectively, the “Lenders”), MGG Investment Group LP, a Delaware limited partnership  (“MGG”), as collateral agent for the Lenders (in such capacity, together with its successors and permitted  assigns in such capacity, the “Collateral Agent”), and MGG, as administrative agent for the Lenders (in  such capacity, together with its successors and permitted assigns in such capacity, the “Administrative  Agent” and, together with the Collateral Agent, each, an “Agent” and, collectively, the “Agents”).  WHEREAS, the Loan Parties have requested that the Agents and the Required Lenders  amend certain terms and conditions of the Financing Agreement; and  WHEREAS, the Agents and the Required Lenders are willing to amend such terms and  conditions of the Financing Agreement on the terms and conditions set forth herein.  NOW THEREFORE, in consideration of the premises and other good and valuable  consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby  agree as follows:  1. Definitions.  All terms used herein that are defined in the Financing Agreement and not otherwise defined herein shall have the meanings assigned to them in the Financing Agreement.  2. Amendments. (a) New Definitions.  Section 1.01 of the Financing Agreement is hereby amended by adding the following definitions in appropriate alphabetical order:  ““Amendment No. 1” means Amendment No. 1 to Financing Agreement, dated as of  August 5, 2022, by and among the Loan Parties, the Agents and the Required Lenders party thereto.”  ““Amendment No. 1 Effective Date” means the 'Amendment Effective Date' as set forth in  Amendment No. 1.”  ““Marketing Spend” means, for any period, the direct marketing expenses (as included in  the “Cost of Goods Sold” line item in the Loan Parties’ income statement) incurred by such Loan Parties  during such period, calculated in a manner consistent with the calculations provided to the Agents prior to  the Effective Date.”  Exhibit 10.1 

 

   - 2 -   132654221v6  ““TTM Marketing Spend” means, as of any date of determination, the aggregate dollar  amount of the Marketing Spend for the twelve consecutive month period most recently ended.”  (b) Existing Definitions.  (i) The definition of “Applicable Margin” in Section 1.01 of the  Financing Agreement is hereby amended and restated in its entirety to read as follows:  ““Applicable Margin” means,   (1) on or prior to the Amendment No. 1 Effective Date, as of any date of determination,  with respect to the interest rate of (a) any Reference Rate Loan or any portion thereof, 6.50% per annum  and (b) any LIBOR Rate Loan or any portion thereof, 7.50% per annum.   (2) after the Amendment No. 1 Effective Date, the relevant Applicable Margin shall be set  at the respective level indicated below based upon the period for which the Leverage Ratio is calculated  and the Leverage Ratio set forth opposite thereto, which ratio shall be calculated as of the end of the most  recent fiscal quarter of the Parent and its Subsidiaries for which financial statements and a Compliance  Certificate of an Authorized Officer of the Parent are received by the Administrative Agent and the Lenders  in accordance with Section 7.01(a)(ii) and Section 7.01(a)(iv):  Level Leverage Ratio Reference Rate Loans LIBOR Rate Loans  For the period commencing after the Amendment No. 1 Effective Date until June  30, 2023:  I Greater than or  equal to 4.25 to  1.00  7.50% 8.50%  II Less than 4.25 to  1.00  7.00% 8.00%  For the period commencing after June 30, 2023:  I Greater than or  equal to 3.75 to  1.00  7.50% 8.50%  II Less than 3.75 to  1.00  7.00% 8.00%      (3) Subject to clause (4) below, the adjustment of the Applicable Margin (if any) will occur  two (2) Business Days after the date the Administrative Agent receives the financial statements and a  Compliance Certificate of an Authorized Officer of the Parent in accordance with Section 7.01(a)(ii) and  Section 7.01(a)(iv) for the most recent fiscal quarter of the Parent and its Subsidiaries.    (4) Notwithstanding the foregoing:  (i) the Applicable Margin shall be set at Level I in the table above (A) upon  the occurrence and during the continuation of an Event of Default, or (B) if for any period, the  Administrative Agent does not receive the financial statements and Compliance Certificate described in  clause (3) above, for the period commencing on the date such financial statements and Compliance  

 

   - 3 -   132654221v6  Certificate were required to be delivered through the date on which such financial statements and  Compliance Certificate are actually received by the Administrative Agent and the Lenders; and  (ii) in the event that any financial statement or certificate described in clause  (3) above is inaccurate (regardless of whether this Agreement or any Commitments are in effect when such  inaccuracy is discovered), and such inaccuracy, if corrected, would have led to the application of a higher  Applicable Margin for any fiscal period, then the Applicable Margin for such fiscal period shall be adjusted  retroactively (to the effective date of the determination of the Applicable Margin that was based upon the  delivery of such inaccurate financial statement or certificate) to reflect the correct Applicable Margin, and  the Borrowers shall promptly make payments to the Agents and the Lenders to reflect such adjustment.”  (c) Clause (b)(vii) of the definition of “Consolidated EBITDA” in Section  1.01 of the Financing Agreement is hereby amended and restated in its entirety to read as follows:    “(vii)  (1) fees, costs and expenses incurred in connection with (A) the consummation of  the Transactions, (B) any amendments, modifications or waivers of the Loan Documents after the Effective  Date, (C) the consummation of any Permitted Acquisitions and (D) the consummation of issuances of  Indebtedness or Capital Stock and Dispositions to the extent permitted by this Agreement and (2) fees, costs  and expenses accrued or incurred in connection with the transaction previously disclosed to the Agent as  “Project Courtship”, provided, that the amount added back pursuant to this clause (vii)(2) shall not exceed  $2,000,000 in the aggregate during any twelve month period;”  (d) Financial Covenants.  Section 7.03 of the Financing Agreement is hereby  amended and restated in its entirety to read as follows:  (1) Section 7.03(a) of the Financing Agreement is hereby amended and  restated in its entirety to read as follows:  “(a)  Leverage Ratio.  Permit the Leverage Ratio of the Parent and its Subsidiaries  for any period of four (4) consecutive fiscal quarters of the Parent and its  Subsidiaries ending on the date set forth below to be greater than the ratio set forth  opposite such date:  Fiscal Quarter End Leverage Ratio  June 30, 2022 5.25 to 1.00  September 30, 2022 5.50 to 1.00  December 31, 2022 5.75 to 1.00  March 31, 2023 5.50 to 1.00   June 30, 2023 4.25 to 1.00  September 30, 2023 3.75 to 1.00  December 31, 2023 3.75 to 1.00  March 31, 2024 3.75 to 1.00  

 

   - 4 -   132654221v6  June 30, 2024 3.75 to 1.00  September 30, 2024 3.25 to 1.00  December 31, 2024 3.25 to 1.00  March 31, 2025 3.25 to 1.00  June 30, 2025 3.25 to 1.00  September 30, 2025 2.75 to 1.00  December 31, 2025 2.75 to 1.00  March 31, 2026 2.75 to 1.00  June 30, 2026 2.75 to 1.00  September 30, 2026 2.25 to 1.00  December 31, 2026 2.25 to 1.00    (2) Section 7.03 of the Financing Agreement is hereby amended by inserting  a new clause (d), to read as follows:  “(d)  Minimum Marketing Spend.  Permit the TTM Marketing Spend of the Parent  and its Subsidiaries for the twelve (12) consecutive month period ending at the end  of each fiscal quarter, commencing with the fiscal quarter ending December 31,  2022, to be less than $80,000,000.”  (e) Notices.  Section 12.01(a) of the Financing Agreement is hereby amended  by replacing the notice information for Spark Networks, Inc. set forth therein with the following:  “Spark Networks, Inc.   RiverPark Fourteen,  10808 South River Front Parkway, Suite 398  South Jordan, UT 84095  Attention: David Clark  Email: david.clark@spark.net”    3. Representations and Warranties.  Each Loan Party hereby represents and warrants  to the Agents and the Lenders as follows:  (a) Representations and Warranties; No Event of Default.  (i) The  representations and warranties herein, in Article VI of the Financing Agreement and in each other Loan  Document, certificate or other writing delivered to any Secured Party pursuant to the Financing Agreement  or any other Loan Document on or immediately prior to the Amendment Effective Date are true and correct  in all material respects (except that such materiality qualifier shall not be applicable to any representations  

 

   - 5 -   132654221v6  or warranties that already are qualified or modified as to "materiality" or "Material Adverse Effect" in the  text thereof, which representations and warranties shall be true and correct in all respects subject to such  qualification) on and as of such date as though made on and as of such date, except to the extent that any  such representation or warranty expressly relates solely to an earlier date (in which case such representation  or warranty shall be true and correct in all material respects (except that such materiality qualifier shall not  be applicable to any representations or warranties that already are qualified or modified as to "materiality"  or "Material Adverse Effect" in the text thereof, which representations and warranties shall be true and  correct in all respects subject to such qualification) on and as of such earlier date), and (ii) no Default or  Event of Default has occurred and is continuing as of the Amendment Effective Date or would result from  this Amendment becoming effective in accordance with its terms.  (b) Organization, Good Standing, Etc.   Each Loan Party (i) is a corporation,  limited liability company or limited partnership duly organized, validly existing and in good standing under  the laws of the jurisdiction of its organization, (ii) has all requisite power and authority to conduct its  business as now conducted and as presently contemplated, and to execute and deliver this Amendment, and  to consummate the transactions contemplated hereby and by the Financing Agreement, as amended hereby,  and (iii) is duly qualified to do business and is in good standing in each jurisdiction in which the character  of the properties owned or leased by it or in which the transaction of its business makes such qualification  necessary except (solely for the purposes of this subclause (iii)) where the failure to be so qualified and be  in good standing could not reasonably be expected to have a Material Adverse Effect.  (c) Authorization, Etc.  The execution and delivery by each Loan Party of this  Amendment, and the performance by it of the Financing Agreement, as amended hereby, (i) have been duly  authorized by all necessary action, (ii) do not and will not contravene (A) any of its Governing Documents,  (B) any applicable material Requirements of Law or (C) any Material Contract binding on or otherwise  affecting it or any of its properties, (iii) do not and will not result in or require the creation of any Lien  (other than pursuant to any Loan Document) upon or with respect to any of its properties, and (iv) do not  and will not result in any default, noncompliance, suspension, revocation, impairment, forfeiture or  nonrenewal of any permit, license, authorization or approval applicable to its operations or any of its  properties, except (solely for the purposes of this subclause (iv)) to the extent that such default,  noncompliance, suspension, revocation, impairment, forfeiture or nonrenewal could not reasonably be  expected to have a Material Adverse Effect.  (d) Enforceability of Loan Documents.  This Amendment is a legal, valid and  binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its terms,  except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium  or other similar laws affecting the enforcement of creditors' rights generally and by general principles of  equity, and for the avoidance of doubt in the case of the English Loan Parties and the English Security  Documents, subject to the Legal Reservations.  (e) Governmental Approvals.  No authorization or approval or other action  by, and no notice to or filing with, any Governmental Authority is required in connection with the due  execution, delivery and performance by any Loan Party of this Amendment other than authorizations or  approvals that have been obtained or made and are in full force and effect as of the Amendment Effective  Date.  4. Conditions to Effectiveness.  This Amendment shall become effective only upon  satisfaction in full, in a manner satisfactory to the Agents, or waiver of the following conditions precedent  

 

   - 6 -   132654221v6  (the first date upon which all such conditions shall have been satisfied or waived being hereinafter referred  to as the "Amendment Effective Date"):  (a) Payment of Fees, Etc.  The Borrowers shall have paid on or before the  Amendment Effective Date an amendment fee to the Administrative Agent, for the ratable benefit of the  Lenders, in an amount equal to $250,000, which fee shall be deemed earned in full on the Amendment  Effective Date and shall be non-refundable.  (b) Representations and Warranties.  The representations and warranties  contained in this Amendment and in Article VI of the Financing Agreement and in each other Loan  Document shall be true and correct in all material respects (except that such materiality qualifier shall not  be applicable to any representations or warranties that already are qualified or modified as to "materiality"  or "Material Adverse Effect" in the text thereof, which representations and warranties shall be true and  correct in all respects subject to such qualification) on and as of the Amendment Effective Date as though  made on and as of such date, except to the extent that any such representation or warranty expressly relates  solely to an earlier date (in which case such representation or warranty shall be true and correct on and as  of such earlier date).  (c) No Default; Event of Default.  No Default or Event of Default shall have  occurred and be continuing on the Amendment Effective Date or result from this Amendment becoming  effective in accordance with its terms.  (d) Delivery of Documents.  The Administrative Agent shall have received on  or before the Amendment Effective Date, this Amendment, duly executed by the Loan Parties, each Agent  and the Required Lenders.  (e) Liens; Priority.  The Agents shall be satisfied that the Collateral Agent has  been granted, and holds, for the benefit of the Agents and the Lenders, a perfected, first priority Lien on  and security interest in all of the Collateral, subject only to Permitted Liens, to the extent such Liens and  security interests are required pursuant to the Loan Documents to be granted or perfected on or before the  Amendment Effective Date.  (f) Approvals.  All consents, authorizations and approvals of, and filings and  registrations with, and all other actions in respect of, any Governmental Authority or other Person required  in connection with any Loan Document or the transactions contemplated thereby or the conduct of the Loan  Parties' business shall have been obtained or made and shall be in full force and effect.  There shall exist no  claim, action, suit, investigation, litigation or proceeding (including, without limitation, shareholder or  derivative litigation) pending or, to the knowledge of any Loan Party, threatened in any court or before any  arbitrator or Governmental Authority which (i) relates to the Loan Documents or the transactions  contemplated thereby, or (ii) could reasonably be expected to have a Material Adverse Effect.  5. Continued Effectiveness of the Financing Agreement and Other Loan Documents.   Each Loan Party hereby (a) acknowledges and consents to this Amendment, (b) confirms and agrees that  the Financing Agreement and each other Loan Document to which it is a party is, and shall continue to be,  in full force and effect and is hereby ratified and confirmed in all respects, except that on and after the  Amendment Effective Date, all references in any such Loan Document to "the Financing Agreement", the  "Agreement", "thereto", "thereof", "thereunder" or words of like import referring to the Financing  Agreement shall mean the Financing Agreement as amended by this Amendment, and (c) confirms and  agrees that, to the extent that any such Loan Document purports to assign or pledge to the Collateral Agent,  for the benefit of the Agents and the Lenders, or to grant to the Collateral Agent, for the benefit of the  

 

   - 7 -   132654221v6  Agents and the Lenders, a security interest in or Lien on any Collateral as security for the Obligations of  the Loan Parties from time to time existing in respect of the Financing Agreement (as amended hereby) and  the other Loan Documents, such pledge, assignment and/or grant of the security interest or Lien is hereby  ratified and confirmed in all respects.  This Amendment does not and shall not affect any of the obligations  of the Loan Parties, other than as expressly provided herein, including, without limitation, the Loan Parties'  obligations to repay the Loans in accordance with the terms of Financing Agreement or the obligations of  the Loan Parties under any Loan Document to which they are a party, all of which obligations shall remain  in full force and effect.  Except as expressly provided herein, the execution, delivery and effectiveness of  this Amendment shall not operate as a waiver of any right, power or remedy of any Agent or any Lender  under the Financing Agreement or any other Loan Document nor constitute a waiver of any provision of  the Financing Agreement or any other Loan Document.  6. No Novation.  Nothing herein contained shall be construed as a substitution or  novation of the Obligations outstanding under the Financing Agreement or instruments securing the same,  which shall remain in full force and effect, except as modified hereby.  7. No Representations by Agents or Lenders.  Each Loan Party hereby acknowledges  that it has not relied on any representation, written or oral, express or implied, by any Agent or any Lender,  other than those expressly contained herein, in entering into this Amendment.  8. Release.  Each Loan Party hereby acknowledges and agrees that:  (a) neither it nor  any of its Subsidiaries has any claim or cause of action against any Agent or any Lender (or any of the  directors, officers, employees, agents, attorneys or consultants of any of the foregoing), and (b) the Agents  and the Lenders have heretofore properly performed and satisfied in a timely manner all of their obligations  to the Loan Parties, and all of their Subsidiaries and Affiliates.  Notwithstanding the foregoing, the Agents  and the Lenders wish (and the Loan Parties agree) to eliminate any possibility that any past conditions, acts,  omissions, events or circumstances would impair or otherwise adversely affect any of their rights, interests,  security and/or remedies.  Accordingly, for and in consideration of the agreements contained in this  Amendment and other good and valuable consideration, each Loan Party (for itself and its Subsidiaries and  Affiliates and the successors, assigns, heirs and representatives of each of the foregoing) (collectively, the  "Releasors") does hereby fully, finally, unconditionally and irrevocably release, waive and forever  discharge the Agents and the Lenders, together with their respective Affiliates and Related Funds, and each  of the directors, officers, employees, agents, attorneys and consultants of each of the foregoing (collectively,  the "Released Parties"), from any and all debts, claims, allegations, obligations, damages, costs, attorneys'  fees, suits, demands, liabilities, actions, proceedings and causes of action, in each case, whether known or  unknown, contingent or fixed, direct or indirect, and of whatever nature or description, and whether in law  or in equity, under contract, tort, statute or otherwise, which any Releasor has heretofore had or now or  hereafter can, shall or may have against any Released Party by reason of any act, omission or thing  whatsoever done or omitted to be done, in each case, on or prior to the Amendment Effective Date directly  arising out of, connected with or related to this Amendment, the Financing Agreement or any other Loan  Document, or any act, event or transaction related or attendant thereto, or the agreements of any Agent or  any Lender contained therein, or the possession, use, operation or control of any of the assets of any Loan  Party, or the making of any Loans or other advances, or the management of such Loans or other advances  or the Collateral.  9. Further Assurances. The Loan Parties shall execute any and all further documents,  agreements and instruments, and take all further actions, as may be required under Applicable Law or as  any Agent may reasonably request, in order to effect the purposes of this Amendment.  

 

   - 8 -   132654221v6  10. Miscellaneous.  (a) This Amendment may be executed in any number of counterparts and by  different parties hereto in separate counterparts, each of which shall be deemed to be an original but all of  which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of  this Amendment by facsimile or electronic mail shall be equally effective as delivery of an original executed  counterpart of this Amendment.  (b) Section and paragraph headings herein are included for convenience of  reference only and shall not constitute a part of this Amendment for any other purpose.  (c) This Amendment shall be governed by, and construed in accordance with,  the laws of the State of New York applicable to contracts made and to be performed in the State of New  York.  (d) Each Loan Party hereby acknowledges and agrees that this Amendment  constitutes a "Loan Document" under the Financing Agreement.  Accordingly, it shall be an immediate  Event of Default under the Financing Agreement if (i) any representation or warranty made by any Loan  Party under or in connection with this Amendment shall have been incorrect in any respect when made or  deemed made, or (ii) any Loan Party shall fail to perform or observe any term, covenant or agreement  contained in this Amendment.  (e) Any provision of this Amendment that is prohibited or unenforceable in  any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or  unenforceability without invalidating the remaining portions hereof or affecting the validity or  enforceability of such provision in any other jurisdiction.  (f) To the extent invoiced to the Borrowers on or prior to the date of this  Amendment, within ten (10) Business Days of the Amendment Effective Date, the Borrowers shall pay, or  cause to be paid, all other fees (other than the amendment fee in connection with this Amendment, which  shall be paid on or prior to the Amendment Effective Date), costs, expenses and taxes payable, if any,  pursuant to Section 2.06 or 12.04 of the Financing Agreement.     [Remainder of page intentionally left blank.]    

 

[Signature Page to First Amendment]  IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed  and delivered as of the date set forth on the first page hereof.  BORROWERS:  SPARK NETWORKS SE  By:  Name: Eric Eichmann  Title: Managing Director  SPARK NETWORKS, INC.  By:  Name: Eric Eichmann  Title: Chief Executive Officer and President  ZOOSK, INC.  By:  Name: Eric Eichmann  Title: President  GUARANTORS:  SPARK NETWORKS SERVICES GMBH  By:  Name: David Clark  Title: Managing Director  SPARK NETWORKS USA, LLC  By:  Name: Eric Eichmann  Title: Chief Executive Officer and President  SMOOCH LABS INC.  By:  Name: Eric Eichmann  Title: Chief Executive Officer and President  

 

[Signature Page to First Amendment]  MINGLEMATCH, INC.  By:  Name: Eric Eichmann  Title: Chief Executive Officer and President  SPARK NETWORKS LIMITED  By:  Name: Yoon Um  Title: Director  LOV USA, LLC  By:  Name: Eric Eichmann  Title: Chief Executive Officer and President  

 

[Signature Page to Amendment No. 1]   ADMINISTRATIVE AGENT AND  COLLATERAL AGENT:      MGG INVESTMENT GROUP LP    By: MGG GP, LLC, its general partner     By:     Name: Kevin Griffin    Title: Chief Executive Officer     

 

[Signature Page to Amendment No. 1]  REQUIRED LENDERS:    MGG SPECIALTY FINANCE FUND II LP  MGG SF EVERGREEN FUND LP  MGG SF EVERGREEN UNLEVERED FUND LP  MGG INSURANCE FUND SERIES INTERESTS  OF THE  SALI MULTI-SERIES FUND, LP  MGG SF EVERGREEN MASTER FUND  (CAYMAN) LP  MGG SF EVERGREEN UNLEVERED MASTER  FUND II (CAYMAN) LP  MGG CANADA FUND LP  MGG (BVI) LIMITED  MGG SF DRAWDOWN UNLEVERED FUND II  (LUXEMBOURG) SCSp  MGG SF DRAWDOWN UNLEVERED FUND III  (LUXEMBOURG) SCSp  MGG US DIRECT LENDING FUND 2019 LP  MGG SF EVERGREEN FUND 2020 LP  MGG SF DRAWDOWN UNLEVERED FUND III  LP  MGG SF DRAWDOWN UNLEVERED MASTER  FUND III (CAYMAN) LP        By: MGG Investment Group LP, on behalf of each  of the above, as Authorized Signatory     By:                                                                                 Name: Kevin Griffin  Title:   Chief Executive OfficerDocument

Exhibit 10.1

EMPLOYMENT AGREEMENT
The Employment Agreement between Akumin Inc. (the “Company”) and Riadh Zine dated November 15, 2017 is hereby amended and restated as of August 9, 2022 (the “Effective Date”).
RECITALS:
WHEREAS the Company desires to continue employing you, and you desire to continue to be employed by the Company, in accordance with the terms and conditions contained in this Amended and Restated Employment Agreement (the “Agreement”);
AND WHEREAS you have been employed by the Company since October 1, 2014;
AND WHEREAS the Company is only willing to enter into this Agreement on the basis that you observe the restrictive covenants set out herein, which have been negotiated in good faith and which you acknowledge as being reasonable given the nature of your position pursuant to this Agreement.
NOW THEREFORE in consideration of the foregoing and the mutual agreements contained herein (the receipt and adequacy of which are acknowledged), the parties agree as follows:
ARTICLE 1
EMPLOYMENT
Section 1.1    Definitions
Unless otherwise defined herein, capitalized terms have the meaning set out in Appendix “A” attached to this Agreement.
Section 1.2    Employment
The Company hereby acknowledges your position of Chief Executive Officer & Chairman of the Board (collectively, the “CEO”) on the terms and conditions contained herein.  You shall report to the Board of Directors of the Company (the “Board”).
Section 1.3    Base Salary, Annual Bonus and Incentive Compensation
(1)    As of the Effective Date, you shall be paid $850,000.00 per annum less all required deductions, remittances and withholdings subject to any increases from time to time at the sole discretion of the Board (the “Base Salary”).  You will be paid in accordance with the Company’s regular payroll procedures.
(2)    The Board may in its sole discretion grant an annual bonus to you (the “Annual Bonus”) on such conditions as it deems appropriate.  You acknowledge that you have no expectation that in any calendar year there will be a guaranteed bonus and the amount of the bonus, if any, that you may be awarded may change from year to year, at the Board’s sole discretion.
    1    Employee Initials:_____

Exhibit 10.1

(3)    You shall be eligible to participate in the Company’s stock option plan (the “SOP”) and restricted stock unit plan (the “RSU Plan” and collectively with the SOP, the “Plans”), each at a level to be determined by the Board in its sole discretion, subject to the terms and conditions of the Plans. In order to receive a grant of options and restricted stock units (the “RSUs”) under the Plans, if any, you will be required to sign an agreement confirming you have read and agree to the terms and conditions contained in the Plans.
Section 1.4    Duties
You agree that during your employment, you will:
(a)    devote the required skill, time, experience and attention necessary to carry out the responsibilities consistent with the position of CEO;
(b)    comply with all applicable laws and consistently adhere to the operational rules, regulations, policies and guidelines as they are published from time to time by the Company; and
(c)    use your best efforts to promote the success of the business and act at all times in the best interests of the Company.
Section 1.5    Benefits
You will continue to be eligible to participate in the Company’s group benefit plan in effect from time to time in accordance with the terms of the formal plan documents, which may be amended from time to time, without prior notice. Subject to any applicable plan restrictions, the Company will pay, subject to applicable tax deductions and withholdings, any premiums associated any group benefit plan you choose to participate in.
Section 1.6    Vacation
You shall be entitled to receive paid time off in accordance with the Company vacation policy. The Company reserves the right to amend its vacation policy at any time.
Section 1.7    Expenses
Upon the submission of proper documentation, the Company shall reimburse you for all out-of-pocket expenses reasonably and properly incurred by you in connection with your duties hereunder provided such expenses are in accordance with the policies of the Company in effect from time to time and will include business-related expenses for cell phones and data plans as well as your membership in the Young Presidents’ Organization.  Proper documentation includes, but is not limited to, statements, vouchers, receipts and any other documents the Company may require. You must submit any request for reimbursement, with the proper documentation, no later than 180 days following the date that such business expense occurred.   
Section 1.8    Car Allowance
The Company shall pay you an automobile allowance of $800.00 per month (prorated for partial months of employment), less applicable deductions and withholdings.  You shall be 
    2    Employee Initials:_____

Exhibit 10.1

responsible for payment of all amounts attributable to the taxable benefit arising from the Company’s payments hereunder.  For clarity, no additional payments will be provided as reimbursement for any automobile expenses incurred by you (i.e. gas, mileage or automobile insurance).
ARTICLE 2
TERMINATION
Section 2.1    Termination
(1)    By Resignation (including retirement) - If you voluntarily elect to terminate your employment with the Company, you agree to provide the Company with four (4) weeks written notice of your resignation or retirement (the “Resignation Notice Period”).  In such event, the Company’s obligation shall be limited solely to the Accrued Benefits, as defined below.
(2)    By Disability - If this Agreement and your employment is terminated as a result of your Disability then the Company’s obligation shall be limited solely to providing you the Accrued Benefits.  You may also elect to continue your benefits pursuant to COBRA to the extent you are eligible. You shall not be entitled to any other notice, payment in lieu of notice in respect of the termination of your employment.  
(3)    By Death - This Agreement and your employment shall terminate immediately upon your death and the Company’s obligation shall be limited solely to providing you (by your estate or named beneficiary) the Accrued Benefits.
(4)    By the Company with Cause - The Company has the right, at any time and without notice, to terminate your employment under this Agreement for Cause.  In the event that you are terminated for Cause, the Company’s obligation shall be limited solely to the Accrued Benefits.
(5)    By the Company without Cause - In the absence of Cause, the Company may, at its sole discretion and for any reason whatsoever, terminate your employment by providing you with:
(a)    any portion of the Base Salary that shall have been earned by you prior to the date of termination but not yet paid; and
(b)    any accrued but unpaid expenses required to be reimbursed under this Agreement; and
(c)    with respect to any Plans in which you are participating at the time of termination of your employment, any rights and benefits under each such Plan as determined in accordance with the terms, conditions, and limitations of the plan document and any separate agreement executed by you which may then be in effect (Section 2.1.5(a) through 2.1.5(c), collectively, the “Accrued Benefits”); and
(d)    continuation of all benefits pursuant to COBRA, to the extent you are eligible, at your sole expense; and 
    3    Employee Initials:_____

Exhibit 10.1

(e)    A lump sum payment equal to two (2) years of Base Salary as of the date upon which you receive notice of termination of employment (the “Notice Period”); and
(f)    A lump sum payment representing the value of the Annual Bonus prorated to reflect the duration of the Notice Period in an amount equivalent to the average Annual Bonus paid to you in the previous two (2) fiscal years, if any.
Should your employment be terminated without Cause, you understand and agree that other than those entitlements contemplated in Section 2.1(5) herein, no further amounts will be payable to you whether pursuant to statute, common law or otherwise in respect of the termination of your employment without Cause.  Except as provided herein, you will have no claim whatsoever against the Company or any associated or affiliated entity, or any of its or their officers, directors or employees for damages, wages, bonus, termination pay, severance pay, whether statutory or otherwise or pay in lieu of notice whether statutory or otherwise, arising out of your employment or the termination of your employment. This provision will continue to apply regardless of any change to your position in the future.
As a condition to receiving any payment pursuant to Section 2.1(5) herein that is in excess of your entitlements under applicable law you agree to execute and deliver a Full and Final Release in a form satisfactory to the Company.
(6)    By Change of Control - If you resign from your employment within the twelve (12) month period immediately following a Change of Control, you shall be provided with your entitlements under Section 2.1(5) herein.  For the purposes of this Agreement “Change of Control” means:
(a)    any sale, reorganization, amalgamation, merger or other transaction as a result of which any person or group of persons acting jointly or in concert (whether by means of a shareholder agreement or otherwise) or persons associated or affiliated with any such person or group, becomes the owner, legal or beneficial, directly or indirectly, of fifty (50%) percent or more of the shares of the Company or exercises control or direction over fifty (50%) percent or more of the shares of the Company (other than solely involving the Company and one or more of its affiliates); or
(b)    a sale, lease or other disposition of all or substantially all of the property or assets of the Company other than to an affiliate which assumes all of the obligations of the Company in respect of you including the assumption of this Agreement.
Section 2.2    Deliveries on Termination
Upon termination of this Agreement for any reason, you shall forthwith:
(a)    return to the Company all property and materials relating to the business and affairs of the Company including any Confidential Information and all copies and reproductions thereof in any form whatsoever received by you and with the Company’s consent delete same from all personal databases; and
    4    Employee Initials:_____

Exhibit 10.1

(b)    you shall be deemed to have immediately resigned from any position you may have as an officer, director or employee of the Company together with any other office, position or directorship which you may hold with the Company or any of the Company’s affiliates or related entities.  In such event, you shall, at the request of the Company, forthwith execute any and all documents appropriate to evidence such resignations.  You shall not be entitled to any payments in respect of such resignation.
Section 2.3    Date of Termination
For the purposes of this Agreement, “date of termination” shall mean the earlier of:  (i) the date specified in the written notice of termination provided pursuant to Sections 2.1(2), 2.1(4) or 2.1(5); (ii) the end of the Resignation Notice Period; or (iii) your last day of actual and active employment.  For greater certainty, no period of notice of termination, if any, or payment in lieu of notice that is given or ought to have been given pursuant to this Agreement or at law that follows or is in respect of a period after the last date of actual and active employment will be considered as extending your period of employment for purposes of determining your entitlement under this Agreement for the purposes of this or any other provision.
ARTICLE 3
EMPLOYEE’S COVENANTS
Section 3.1    Fiduciary Relationship
You acknowledge that you occupy a position which imposes upon you certain fiduciary obligations to the Company and you agree that you will comply with those obligations both during and following your employment.
Section 3.2    Company Property
You acknowledge that all materials of the Company relating to the business and affairs of the Company, including, without limitation, all Developments, manuals, documents, reports, equipment, working materials and lists of customers or suppliers prepared by the Company or by you in the course of your employment are for the benefit of the Company and are and shall remain the property of the Company.
Section 3.3    Confidentiality and Intellectual Property Rights
(1)    While employed by the Company and following the termination of your employment (for any reason) you shall not disclose to any Person, nor use for your or another Person’s benefit any Confidential Information, except as otherwise specifically authorized in writing by the Company or as reasonably required by you to carry out your duties during employment with the Company.
(2)    “Confidential Information” means all information owned, relating to, possessed or controlled by the Company including, without limitation, all information related to Developments, inventions, enhancements, financial, scientific, technical, manufacturing, procedures, products, programs, materials, process know-how and marketing, costing and pricing information and all names of or lists of and habits of customers and suppliers, 
    5    Employee Initials:_____

Exhibit 10.1

trade secrets, howsoever received by you from, and in whatever form (whether oral, written, machine readable or otherwise), which pertains to the Company and/or its affiliates; provided, however, that the phrase “Confidential Information” shall not include information which:
(a)    was in the public domain prior to the date of receipt by you;
(b)    is properly within your legitimate possession prior to its disclosure hereunder, and without any obligation of confidence attaching thereto;
(c)    becomes part of the public domain by publication or otherwise, not due to any unauthorized act or omission on your part;
(d)    after disclosure, is lawfully received by you from another entity who is lawfully in possession of such Confidential Information and such other entity was not restricted from disclosing this information to you;
(e)    is approved, in writing, by the Company for disclosure prior to its actual disclosure; or
(f)    you are required by law to disclose, provided that, unless prohibited by law, you first notify the Company at the first reasonable opportunity that you are required to disclose such Confidential Information.
(3)    You acknowledge and agree that all right, title and interest in or to the Developments and all Intellectual Property in and to the Developments shall be owned exclusively by the Company.  Without further compensation, you hereby irrevocably quit-claim and assign, and agree to assign to the Company, or any designee, your entire right, title and interest in and to the Developments and all Intellectual Property.  You understand that this assignment is intended to, and does, extend to Developments currently in existence, in development, as well as Developments which have yet to be created.
(4)    You hereby irrevocably waive, in favor of the Company, its successors, assigns and nominees, all moral rights arising under Title 17 of the United States Code and pursuant to 17 U.S.C. § 201(b), as amended, (or any successor legislation of similar effect) or similar legislation in any applicable jurisdiction, or at common law, to the full extent that such rights may be waived in each respective jurisdiction, that you may have now or in the future with respect to the Developments.
(5)    You shall promptly disclose Developments to the Company, and, at the Company’s expense, perform all actions reasonably requested by the Company (whether during or after your employment) to establish and confirm title and ownership of Developments and all Intellectual Property (including, without limitation, assignments, consents, powers of attorney and other instruments).  You agree to execute on demand, whether during your employment or after termination of employment, any applications, transfers, assignments or other documents as the Company may consider necessary for the purpose of either:
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Exhibit 10.1

(a)    Obtaining, maintaining, or vesting or assigning absolute title in any Developments and any Intellectual Property related thereto to the Company; or
(b)    applying for, prosecuting, obtaining or protecting any patent, copyright, industrial design or trade-mark registration or any other similar right pertaining to Developments and all Intellectual Property in any country.  You further agree to cooperate and assist the Company in every way possible in the application for or prosecution of rights pertaining to such Intellectual Property.
(6)    In the event the Company is unable for any reason, after diligent effort including, but not limited to, providing a written notice, to secure your signature on any document needed in connection with the above-mentioned actions, you hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as your agent and attorney in fact, which appointment is coupled with an interest to act for and on your behalf to execute, verify and file any such documents and to do all other lawfully permitted acts to further the purposes of this Agreement with the same legal force and effect as if executed by you.
ARTICLE 4
NON-COMPETITION
Section 4.1    Non-Competition
You shall not, during your employment (including, for certainty, the Resignation Notice Period) and for a period of twelve (12) months following the date of termination of your employment, for any reason, on your own behalf or on behalf of any Person, without the prior written consent of the Company, whether directly or indirectly, in a same or similar capacity, alone, or through or in connection with any Person:
(a)    be employed by, carry on, or be engaged in any endeavor, activity, undertaking or business in all or part of the Territory which is competitive, in any way, with the Business; or
(b)    have any financial interest in or be otherwise commercially involved in any undertaking or business in all or part of the Territory which is competitive, in any way, with the Business.
Section 4.2    Exception
You will, however, not be in default under Section 4.1 by virtue of you holding, strictly for portfolio purposes and as a passive investor, no more than two percent (2%) of the issued and outstanding shares of or any other interest in, any body corporate which is listed on any recognized stock exchange, the business of which body corporate which is competitive, in any way, with the Business.
Section 4.3    Remedies
You recognize and expressly acknowledge that the Company would be subject to irreparable harm should any of the provisions of Article 4 be infringed, or should any of your 
    7    Employee Initials:_____

Exhibit 10.1

obligations thereunder be breached by you, and that damages alone will be an inadequate remedy for any breach or violation thereof and that the Company, in addition to all other remedies, shall be entitled as a matter of right to equitable relief, including temporary or permanent injunction to restrain such breach.
ARTICLE 5
CONFLICTING OBLIGATIONS AND PRIVACY
Section 5.1    No Conflicting Obligations
In the performance of your duties for the Company, you shall not improperly bring to the Company or use any trade secrets, confidential information or other proprietary information of any third party and will not knowingly infringe the intellectual property rights of any third party.
You further acknowledge that you are not subject to any agreement with a third party that would restrict in any way your ability to carry out your duties hereunder.
Section 5.2    Privacy
The Company is subject to certain privacy laws that govern the collection, use and disclosure of employees’ personal information.  As an employee, you will provide the Company with relevant personal information during the course of our working relationship.  As an employer, the Company agrees to only collect, use, store and disclose that personal information to the extent required to establish and manage the employment relationship.  You agree that the Company may collect, use, store and disclose your personal information in order to establish, maintain and administer the employment relationship including, but not limited to the following purposes:
(a)    to facilitate the provision of benefits provided under the Company’s benefit plans;
(b)    to address issues relating to your performance, promotion and compensation;
(c)    to carry out corporate action or to enforce corporate policies including those relating to the proper use of the electronic communications network; and
(d)    to comply with applicable laws or to take action that in the opinion of the Company is necessary given the Company’s business.
ARTICLE 6
GENERAL
Section 6.1    General
(1)    In the event that the minimum standards in applicable employment standards legislation, as it exists from time to time, are more favorable to you in any respect than a term or provision provided herein, the minimum standards of the applicable employment standards legislation will apply in respect of that term or provision.
    8    Employee Initials:_____

Exhibit 10.1

(2)    This Agreement shall inure to the benefit of and shall be binding upon your heirs, executors, administrators, successors and legal representatives, and shall inure to the benefit of and be binding upon the Company and its successors and assigns. You may not assign this Agreement.
(3)    This Agreement constitutes the complete understanding between you and the Company with respect to your employment with the Company, and no statement, representation, warranty or covenant has been made by you or the Company with respect to this Agreement except as expressly set forth herein.  For clarity, this Agreement supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions, whether oral or written, of the parties hereto.  This Agreement shall not be altered, modified, amended or terminated unless agreed to in writing by both you and the Company.
(4)    In the event that any provision or any part of any provision hereof is deemed to be invalid by reason of the operation of any law or by reason of the interpretation placed thereon by a court, this Agreement shall be construed as not containing such provision or part of such provision and the invalidity of such provision or such part shall not affect the validity of any other provision or the remainder of such provision hereof.  All other provisions hereof which are otherwise lawful and valid shall remain in full force and effect.
(5)    A waiver by you or the Company of any breach under this Agreement shall not constitute a waiver of any further breaches of this Agreement.
(6)    This Agreement shall be governed by and construed in accordance with the laws of the province of Ontario and the laws of the State of Florida applicable therein.
(7)    If notice is required to be given under this Agreement, such notice shall be in writing and delivered personally or sent by registered mail as follows:
If to the Company:
Akumin Inc.
8300 W Sunrise Blvd
Plantation, FL  33322
Attention:  Chair, Compensation Committee
If to you:
Riadh Zine
c/o Akumin Inc.
8300 W Sunrise Blvd
Plantation, FL  33322
Email:  riadh.zine@akumin.com 
Or to such other addresses as you or the Company may, from time to time, advise.
    9    Employee Initials:_____

Exhibit 10.1

(8)    Notwithstanding the termination of this Agreement, you and the Company shall remain bound by the provisions of this Agreement, which by their nature continue to apply.
(9)    All amounts referred to herein are in United States Dollars (“USD”).
(10)    This Agreement may be executed by the parties in one or more counterparts, each of which when so executed and delivered shall be deemed to be an original and such counterparts shall together constitute one and the same instrument.
(11)    You acknowledge that the Company has recommended that you obtain independent legal advice with respect to the nature and consequences of entering into this Agreement.  By signing and accepting this Agreement, you acknowledge that the Company has afforded you the opportunity to obtain independent legal advice in respect of this Agreement.
We are pleased to have you continue with the Company in this important role.  To confirm your acceptance of the terms and conditions of this Agreement, please sign in the space indicated and return to the undersigned prior to the Effective Date.
AKUMIN INC.
/s/ Murray Lee    
Authorized Signing Officer
AGREED TO AND ACCEPTED
/s/ Riadh Zine            
Riadh Zine        Witness
August 9, 2022    
Date

    10    Employee Initials:_____

Exhibit 10.1

APPENDIX “A”
DEFINITIONS
For the purposes of this Agreement:
(a)    “Business” means the business carried on by the Company, directly or indirectly, being the provision and management of outpatient medical services and operations, including medical imaging such as MRI, high-speed CT (CAT Scan), ultrasound, conventional X-ray, breast MR mammography, PET mammography and arthrography and radiation oncology services.
(b)    “Cause” shall mean (A) your willful failure to perform your duties with the Company; (B) your gross negligence or your willful engaging in misconduct materially injurious to the Company, or refusal to comply with any reasonable and lawful instruction of the Board within the scope of your duties hereunder; (C) your use of alcohol or drugs that interferes with the performance of your duties hereunder; (D) a good-faith and reasonable determination made by the Board that you committed a criminal act constituting, or if you are charged with, indicted of, convicted of or pleads nolo contendere to, any felony, or any crime involving any financial impropriety or which materially interferes with your ability to perform services for the Company, or is otherwise injurious to the Company; (E) your material violation of the written policies, rules, regulations, procedures or instructions (including, without limitation, policies on engaging in any discriminatory or sexually harassing behavior policies, or other policies of general applicability relating to the conduct of employees, directors, officers and/or consultants of the Company); or (F) your material breach of any material agreement between you and the Company.
(c)    “Developments” means any discovery, invention, design, improvement, concept, design, specification, creation, development, treatment, computer program, method, process, apparatus, specimen, formula, formulation, product, hardware or firmware, any drawing, report, memorandum, spreadsheets, theories, investment strategies, article, letter, notebook and any other work of authorship and ideas (whether or not patentable or copyrightable) and legally recognized proprietary rights (including, but not limited to, patents, copyrights, trademarks, topographies, know-how and trade secrets), and all records and tangible embodiments relating to the foregoing, that:
(i)    result or derive from your employment with the Company or from your knowledge or use of Confidential Information;
(ii)    are conceived or made by you (individually or in collaboration with others) in the discharge of your duties hereunder;
(iii)    result from or derive from the use or application of the resources of the Company; or relate to the business operations of the Company or the actual or demonstrably anticipated research and development by the Company.
(d)    “Disability” shall mean your inability to substantially fulfil your duties on behalf of the Company for a continuous period of six (6) months or more or for an aggregate period of twelve (12) months or more during any consecutive eighteen (18) month period, and 
    11    Employee Initials:_____

Exhibit 10.1

which in light of the position held by you cannot be accommodated without causing undue hardship to the Company.  If there is any disagreement between the Company and you as to your Disability or as to the date any such Disability began or ended, such disagreement will be determined by a physician mutually acceptable to the Company and you whose determination will be conclusive evidence of any such Disability and of the date any such Disability began or ended.
(e)    “Intellectual Property” shall mean all common law, statutory and other intellectual and industrial property rights including, without limiting the generality of the foregoing:
(i)    rights to any patents, trademarks, service marks, trade names, domain names, copyright, database rights, designs, industrial designs, trade secrets, integrated circuit rights and topography rights; and
(ii)    all domestic and foreign registrations, applications, divisionals, continuations, continuations in-part, re-examinations and renewals thereof.
(f)    “Person” means a natural person, partnership, limited partnership, limit liability partnership, corporation, joint stock company, trust, unincorporated association, joint venture or other entity or governmental entity, and pronouns have a similarly extended meaning.
(g)    “Territory” shall be defined as within 20-mile radius of any medical imaging center operated or managed by the Company, directly or indirectly.
    12    Employee Initials:_____

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