Document:

finaldmsespjuly2022jmsig

    1    DIGITAL MEDIA SOLUTIONS, INC.    EXECUTIVE SEVERANCE PLAN     PLAN DOCUMENT AND SUMMARY PLAN DESCRIPTION    This Digital Media Solutions, Inc. Executive Severance Plan (the “Plan”) is being adopted by Digital  Media Solutions, Inc. (together with any successors thereto, “DMS” and, together with its subsidiaries, the  “Company”). The Plan, as set forth herein, is intended to provide severance pay and benefits to certain  executive employees in the event that their service with the Company is terminated due to certain qualifying  events as described herein, and is intended to reinforce and encourage the continued attention and  dedication of these individuals.    This document constitutes both the plan document and the summary plan description for the Plan.   The Plan is intended to be an “employee welfare benefit plan” within the meaning of Section 3(1) of ERISA  and a “severance pay plan” within the meaning of Department of Labor Regulations Section 2510.3-2(b).    The severance benefits payable under this Plan apply to covered terminations of employment on or  after August 4, 2022.    1. Defined Terms. For purposes of the Plan, the following terms shall have the meanings indicated  below:     1.1 “Administrator” means the Compensation Committee of the Board.     1.2 “Affiliate” means, with respect to any Person, any other Person that directly or indirectly through  one or more intermediaries controls, is controlled by or is under common control with, the Person in  question. As used herein, the term “control” means the possession, direct or indirect, of the power to direct  or cause the direction of the management and policies of a Person, whether through ownership of voting  securities, by contract or otherwise.     1.3 “Base Compensation” means a Participant’s annualized base salary in effect during the last  regularly scheduled payroll period immediately preceding such Participant’s Date of Termination.  For the  avoidance of doubt, a Participant’s Base Compensation shall not include any bonus, commission or other  equity or incentive compensation.     1.4 “Benefit Continuation Period” means the period specified in Section 4.1(a)(ii), which commences  as of the date a Participant’s Employee Benefits coverage would cease due to the Participant’s Qualifying  Termination.    1.5 “Board” means the Board of Directors of DMS.    1.6 “Cause” shall, with respect to a Participant, have the meaning provided in any employment  agreement between such Participant and the Company or, if there is no such agreement (or such agreement  does not define “Cause”), shall mean (a) the Participant’s commission of any felony, misdemeanor  involving moral turpitude, or any other act involving fraud, theft, misappropriation, dishonesty, or  embezzlement, (b) the Participant’s commission of any act that materially impairs the goodwill or business  of the Company or causes, or could reasonably be expected to cause, material damage to the Company’s  property, goodwill, reputation or business, (c) the Participant’s refusal to, or willful failure to, perform his  or her material duties to the Company, or (d) the Participant’s material violation of any written Company  policies or procedures. Any voluntary termination of employment by a Participant in anticipation of a  termination for Cause under this Section 1.6 shall be deemed a termination for Cause.   

 

    2      1.7 “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.    1.8 “Code” means the Internal Revenue Code of 1986, as amended from time to time.    1.9 “Date of Termination” means the date on which a Participant experiences a Qualifying  Termination.    1.10 “Employee Benefits” means the Company-sponsored group health benefits (medical, dental, and  vision) that a Participant (and any of his or her dependents) was enrolled in on the day before his or her  Qualifying Termination.  The Company reserves the right to amend or terminate its Employee Benefits at  any time.    1.11 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time  to time.    1.12 “Good Reason” shall, with respect to a Participant, have the meaning provided in any  employment agreement between such Participant and the Company or, if there is no such agreement (or  such agreement does not define “Good Reason”), shall mean, without the Participant’s consent:  (a) a  material reduction in the Participant’s base salary, (b) a material diminution in the Participant’s  responsibilities, authority, or duties; (c) a material breach by the Company of any written employment  agreement between the Participant and the Company, or (d) a requirement by the Company that the  Participant change his or her principal place of employment to a location outside of a fifty (50)-mile radius  of his or her principal place of employment; provided, however, that the occurrence of any event described  in this Section 1.12 will only constitute Good Reason if (i) the Participant gives the Company written notice  of his or her intention to terminate his or her employment for Good Reason, stating the event constituting  grounds for such termination within sixty (60) days of the initial occurrence of such event; (ii) the relevant  circumstances or conditions are not remedied by the Company within thirty (30) days after receipt by the  Company of written notice from the Participant (the “Cure Period”); and (iii) the Participant terminates his  or her employment within sixty (60) days following the expiration of the Cure Period.     1.13 “Participant” means the employees set forth on Annex A (as may be added to from time to time).    1.14 “Person” means an individual or a corporation, limited liability company, partnership, joint  venture, trust, unincorporated organization, association, governmental agency or political subdivision  thereof or other entity.    1.15 “Pro-rated Target Bonus” means the Participant’s target annual cash bonus opportunity for the  fiscal year of the Qualifying Termination, multiplied by a fraction (which may not exceed one), the  numerator of which is the number of days in the fiscal year of the Qualifying Termination up to and  including the date of the Qualifying Termination and the denominator of which is 365.    1.16 “Qualifying Termination” means a Participant’s termination of employment (a) by the Company  without Cause, or (b) by the Participant for Good Reason. Notwithstanding anything contained herein, in  no event shall a Participant be deemed to have experienced a Qualifying Termination (i) solely due to a  termination of the Participant’s employment or service with the Company where the Participant is offered  comparable employment or service with the Company or an Affiliate (or with a successor entity or an  affiliate thereof, as applicable), as determined in the sole discretion of the Administrator, or (ii) as a result  of the Participant’s death or disability.      1.17 “Release” means a general waiver and release of claims for the benefit of the Company and its  Affiliates in the Company’s then-applicable form.  

 

    3      1.18 “Section 409A” means Section 409A of the Code, together with Department of Treasury  regulations and other official guidance promulgated thereunder.     1.19 “Separation from Service” means a Participant’s “separation from service” from the Company  within the meaning of Section 409A.     1.20 “Severance Benefits” means, with respect to a Participant, collectively, the severance pay and  benefits set forth in Section 4.1(a) of this Plan.    2. Effectiveness of the Plan. The Plan shall become effective as of August 4, 2022.    3. Administration. Subject to Section 11.3 hereof, the Plan shall be interpreted, administered and  operated by the Administrator, which shall be the “named fiduciary” of the Plan for purposes of ERISA  and will be subject to the fiduciary standard of ERISA when acting in such capacity.  The Administrator  shall have sole discretionary power and authority to (i) construe and interpret the terms and provisions of  the Plan and any issues arising out of, relating to, or resulting from the administration and operation of the  Plan, (ii) determine all rights, benefits, duties, and entitlements under the Plan, including with respect to  eligibility, amounts of benefits payable, and duration of coverage, (iii) prescribe, amend and rescind rules  and regulations relating to the Plan, and (iv) make all other legal or factual determinations necessary or  advisable for the administration of the Plan, which construction, interpretation, and determination shall be  binding on all persons, entities and parties, including any employees and shall be given the maximum  possible deference allowed by law. The Administrator may delegate any of its duties hereunder to a  subcommittee, or to such person or persons from time to time as it may designate.      The Company shall indemnify and hold harmless the Administrator or its designees from and against  any liability, loss, cost, or expense arising from any action or inaction by such parties in connection with  their responsibilities under the Plan (unless constituting fraud or a willful criminal act or omission), to the  maximum extent permitted by law and the Company’s governing documents.    4. Severance Benefits.     4.1 Eligibility.     (a) Qualifying Termination.  Subject to the terms and conditions of this Plan, if a Participant  experiences a Qualifying Termination, then subject to and conditioned upon the Participant’s timely  execution and non-revocation of a Release in accordance with Section 4.2 hereof and subject to Sections  6.3 and 8 hereof, the Participant will be eligible to receive the following severance payments and benefits:    (i) a lump sum payment (“Severance Pay”) equal to the Participant’s Base  Compensation multiplied by the “multiplier” listed below, plus the Participant’s Pro-rated Target  Bonus:    Base Compensation Multiplier  1.0X (0.5X if the Participant has been employed by the Company fewer than  three years, unless the Participant is party to an offer letter or other  agreement with the Company that specifies a longer time period/multiplier,  in which case such longer time period/multiplier shall control)      (ii) provided the Participant timely elects to continue Employee Benefits under  COBRA continuation coverage and does not  revoke such election, payment of the full monthly  

 

    4    applicable premiums for such Employee Benefits (including the Participant’s eligible dependents  who were participating immediately prior to the Date of Termination) for the lesser of (A) twelve  (12) months or (B) the date upon which the Participant ceases to be eligible for COBRA for any  reason, including that he or she is eligible for coverage under another employer’s group health  plan (in which case the Participant has an affirmative obligation to report, in writing, any relevant  facts to the Company within 10 business days of the occurrence of the event).    Following expiration of the Benefits Continuation Period, if the Participant remains eligible  for COBRA continuation coverage, his or her continuation of Employee Benefits under COBRA  (if any) shall be at his or her sole expense.    If the Company cannot continue benefits under this Section 4.1(a)(ii) because of Section  409A or operation of other law, the Company shall compensate the Participant for the monthly  applicable premium costs of replacing such benefits for the relevant period; and to the extent the  continuation of such benefits is, or ever becomes, taxable to the Participant, the Company shall  administer such continuation coverage consistent with the following additional requirements as  set forth in Treasury Regulation Section 1.409A-3(i)(1)(iv): (A) the Participant’s eligibility for  such benefits in one year shall not affect the Participant’s eligibility for benefits in any other year;  (B) any reimbursement of eligible expenses shall be made on or before the last day of the year  following the year in which the expense was incurred; and (C) the Participant’s right to such  benefit shall not be subject to liquidation or exchange for another benefit; and    (iii) outplacement services with a vendor selected by the Company (with the Company  directly providing payment to such vendor) for a period of up to six (6) months; provided that the  Participant initiates outplacement services within forty-five (45) days of the effective date of the  Release.      (b) Any Severance Benefits for which the Participant may be eligible hereunder shall be offset dollar  for dollar by reducing such Severance Benefits by any severance pay, salary continuation, termination pay  or similar pay or allowance which the Participant receives or is entitled to receive (i) under any other  Company plan, policy, practice, program, or arrangement; (ii) pursuant to any employment agreement or  other agreement with the Company; or (iii) by virtue of any law, custom, or practice.  Severance Benefits  provided to a Participant under this Plan shall also be offset by reducing such Severance Benefits by any  severance pay, salary continuation pay, termination pay, or similar pay or allowance received by the  Participant as a result of any prior termination of employment with the Company.    (c) Provided the Participant satisfies all of the requirements of this Paragraph 4, the Company shall  pay the Severance Pay, as applicable, to the Participant, in a single lump sum on the first payroll date  occurring on or after the 60th day following the Date of Termination.      4.2 Release. Notwithstanding anything herein to the contrary, a Participant shall not be eligible to  receive any Severance Benefits under the Plan unless he or she timely executes and delivers a Release after  the Date of Termination in the time and manner specified in such Release, and does not revoke such Release.  If a Participant fails or refuses to timely execute a Release or revokes it (if a revocation right is applicable),  he or she shall not be entitled to receive any Severance Benefits.  If a Participant fails to comply with the  terms of the Release, or the Company determines that grounds existed at the time of the Qualifying  Termination to terminate the Participant for Cause, the Company reserves the right to withhold and  terminate any Severance Benefits under this Plan and to require the Participant to repay the gross amount  that he or she may have previously received under the Plan.    4.3 Accrued Obligations. In addition to the Severance Benefits, if a Participant experiences a  Qualifying Termination, then (a) the Company shall pay the Participant any unpaid base salary or hourly  

 

    5    wage rate due for periods prior to and including the Date of Termination; and (b) the Company shall pay  the Participant all of the Participant’s accrued and unused vacation and paid time-off through the Date of  Termination in accordance with the applicable Company program or policy, regardless of whether the  Participant executes and delivers a Release.    4.4 Limitations. Notwithstanding any provision of this Plan to the contrary, if (a) a Participant’s  employment or service with the Company is terminated other than due to a Qualifying Termination, or (b)  a Participant fails to timely execute and deliver a Release (or revokes a Release), such Participant shall have  no right to receive any Severance Benefits under this Plan.     5. Claims Procedures; Time Limit for Legal Action    5.1 Initial Claims for Benefits.      (a) Any Participant who believes he or she is entitled to any payment under the Plan may  submit a claim in writing to the Administrator. If the claim is denied (in whole or in part), the claimant  shall be provided a written or electronic response from the Administrator. The Administrator’s response  shall include the following information:    (i) The specific reason(s) for the denial;    (ii) Reference to the specific Plan provision(s) upon which the denial was based;    (iii) A description of any additional or material information that is necessary for the  appeal of the denied claim to be successful, and an explanation of why this information is  necessary;    (iv) An explanation of the review procedure summarized below, including the time  limits applicable to the review procedures and the claimant’s rights to submit written comments  and have them considered, the claimant’s right to review (upon request and at no charge) relevant  documents and other information; and    (v) A statement that the claimant has a right to bring a civil action under ERISA  Section 502(a) following a denial of an appeal of the claim.    (b) The denial notice shall be furnished to the claimant no later than ninety (90) days after  receipt of the claim by the Administrator, unless the Administrator determines that special  circumstances require an extension of time for processing the claim. If the Administrator determines  than an extension of time for processing is required, then notice of the extension shall be furnished to  the claimant prior to the expiration of the initial ninety (90) day period. In no event shall such extension  exceed a period of ninety (90) days from the end of such initial period. The notice shall inform the  claimant of the special circumstances requiring the extension of time and the date by which the claimant  can expect a decision.    5.2 Appeal Procedure.     (a) If the claimant’s claim is denied, the claimant (or his or her authorized representative) may  apply in writing to the Administrator for a review of the decision denying the claim. Any such request  for review must be submitted to the Administrator no more than sixty (60) days following the date on  which the denial notice is received by the claimant, and any request for review submitted after this  deadline shall not be considered by the Administrator. In the case of any timely request for review, the  

 

    6    Administrator shall afford the claimant a full and fair review of the decision denying the claim and shall  provide the claimant with the opportunity to submit written comments, documents, records, and other  information relating to the claim for benefits.  Further, the Administrator shall provide, upon request  and free of charge, reasonable access to, and copies of all documents, records and other information  (other than documents, records and other information that is legally privileged) relevant to the  claimant’s claim for benefits.  The Administrator’s review shall take into account all comments,  documents, records, and other information submitted by the claimant relating to the claim, without  regard to whether such information was submitted or considered in the initial benefit determination.    (b) If the claim is subsequently also denied by the Administrator, in whole or in part, then the  claimant shall be furnished with a denial notice that shall contain the following:    (i) Specific reason(s) for the denial;    (ii) Reference to the specific Plan provision(s) on which the denial is based;     (iii) A statement that the claimant is entitled to receive, upon request and free of charge,  reasonable access to (and copies of) all documents, records, and other information releveant to  the claim; and     (iv) A statement of the claimant’s right to bring a civil action under ERISA Section  502(a) following the denial on review.    (c) The decision on review shall be issued within sixty (60) days following the request for  review. The period for decision may, however, be extended up to one hundred and twenty (120) days  after such receipt if the Administrator determines that special circumstances require extension. In the  case of an extension, notice of the extension shall be furnished to the claimant (or his or her authorized  representative) prior to the expiration of the initial sixty (60) day period. In no event shall such  extension exceed a period of sixty (60) days from the end of such initial period. The extension notice  shall indicate the special circumstances requiring the extension of time and the date by which the  claimant can expect a decision.    5.3 Time Limit to Bring Suit.  Neither a claimant, employee, or his or her authorized representative,  or any other person, may bring a lawsuit to recover benefits under the Plan until he or she has exhausted  the internal administrative process described above. Any legal action must be commenced within one (1)  year following the issuance of a final decision on the claim for benefits, or the expiration of the appeal  decision period if no decision is issued. This one-year statute of limitations on suits for all severance benefits  available under the Plan shall apply in any forum where any such suit may be initiated.    6. Section 409A.    6.1 General. All amounts payable under the Plan are intended to comply with the “short term  deferral” exception from Section 409A specified in Treas. Reg. § 1.409A-1(b)(4) (or any successor  provision) or the “separation pay plan” exception specified in Treas. Reg. § 1.409A-1(b)(9) (or any  successor provision), or both of them, and shall be interpreted in a manner consistent with the applicable  exceptions.  Notwithstanding the foregoing, to the extent that any amounts payable in accordance with the  Plan are subject to Section 409A, the Plan shall be interpreted and administered in such a way as to comply  with Section 409A to the maximum extent possible.  If the Company determines that any compensation or  benefits payable under this Plan may not be either compliant with or exempt from Section 409A, the  Company may adopt such amendments to this Plan or adopt other policies and procedures (including  amendments, policies and procedures with retroactive effect), or take such other actions, that the Company  

 

    7    determines are necessary or appropriate to avoid the imposition of taxes under Section 409A, including  without limitation, actions intended to (a) exempt the compensation and benefits payable under this Plan  from Section 409A, and/or (b) comply with the requirements of Section 409A; provided, however, that (i)  no such action shall be taken without a Participant’s written consent to the extent that any such action would  materially and adversely affect such Participant’s rights hereunder, and (ii) this Section 6.1 shall not create  any obligation on the part of the Company or any of its Affiliates to adopt any such amendment, policy or  procedure or take any such other action, nor shall the Company or any of its Affiliates have any liability  for failing to do so.    6.2 Release. Any Severance Benefits subject to Section 409A that are subject to the delivery of a  Release which may be executed and/or revoked in a calendar year following the calendar year in which the  payment event (such as termination of employment) occurs shall be paid or begin to be paid only in the  calendar year in which the consideration period or, if applicable, release revocation period, expires, as  necessary to comply with Section 409A.    6.3 Non-qualified Deferred Compensation; Potential Six-Month Delay; Separate Payments.      (a) For purposes of this Plan, a termination of employment shall not be deemed to have  occurred unless such termination is also a Separation from Service and, for purposes of any such  provision of this Agreement, references to a “termination,” “termination of employment” or like terms  shall mean “Separation from Service.” Notwithstanding anything to the contrary in this Plan, if the  payment of any amount subject to Section 409A is triggered by a Separation from Service that occurs  while a Participant is a “specified employee” within the meaning of that term under Section 409A, no  payment shall be made prior to the earlier of (i) the first business day following the expiration of the  six (6) month period measured from the date of the Participant’s Separation from Service in accordance  with the presumptions set forth in Treasury Regulations Section 1.409A-1(h), or (ii) the death of the  Participant.  Upon the expiration of the delay period required by Section 409A, all payments and benefit  deferred under this paragraph otherwise payable shall commence to be paid (without interest) by the  end of the first month following the expiration of the delay period.  In the event of a Participant’s death,  any amounts delayed under this paragraph shall be paid to the personal representative of the  Participant’s estate as soon as practicable but in all events within sixty (60) days after the date of his or  her death.      (b) Any installment payment of compensation under the Plan shall be treated as a separate  payment of compensation for purposes of applying Section 409A of the Code.      7. No Mitigation. No Participant shall be required to seek other employment or service or to attempt  in any way to reduce or mitigate any Severance Benefits payable under this Plan.    8. Section 280G.  If any payment due under the Plan, together with all other payments and benefits  that a Participant receives or is entitled to receive from the Company or any of its subsidiaries, affiliates or  related entities (all such payments, the “Total Payments”), would (if paid or provided) constitute an excess  parachute payment for purposes of Section 280G of the Code, the amounts that are otherwise payable under  the Plan will either (a) be delivered in full, or (b) be limited to the minimum extent necessary to ensure that  no portion of the Total Payments will fail to be tax-deductible to the Company by reason of Section 280G  of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state or local  income and employment taxes and the excise tax imposed under Section 4999 of the Code, results in the  receipt by the Participant, on an after-tax basis, of the greatest amount of payments and benefits,  notwithstanding that all or some portion of such payments and/or benefits may be subject to the excise tax  imposed under Section 4999 of the Code. All determinations required to be made under this Section 8 shall  be made by an accounting firm or consulting group with experience in performing calculations regarding  

 

    8    the applicability of Section 280G of the Code selected by the Company and such determinations shall be  final and binding on all Persons.    9. Successors.    9.1 Company Successors. This Plan shall inure to the benefit of and shall be binding upon the  Company, any successor entity and their successors and assigns. Any successor (whether direct or indirect  and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all  of the Company’s business and/or assets shall assume and agree to perform the obligations of the Company  under this Plan. For all purposes of this Plan, the term “Company” shall include any successor to the  Company’s business and/or assets (whether by contract or by operation of law).    9.2 Participant Successors. This Plan shall inure to the benefit of and be enforceable by each  Participant’s personal or legal representatives, executors, administrators, successors, heirs, distributees,  devisees, legatees or other beneficiaries. If a Participant shall die while any amount remains payable to such  Participant hereunder, all such amounts shall be paid in accordance with the terms of this Plan to the  personal representative of such Participant’s estate.     10. Notices. All communications relating to matters arising under this Plan shall be in writing and  shall be deemed to have been duly given when hand delivered, faxed or mailed by reputable overnight  carrier or United States certified mail, return receipt requested, addressed, if to a Participant, to the address  on file with the Company and, if to the Company, to the address set forth below, or to such other address  as either party may have furnished to the other in writing in accordance herewith, except that notice of  change of address shall be effective only upon actual receipt:    To the Company:  Digital Media Solutions, Inc.  4800 140th Avenue North  Suite 101  Clearwater, FL 33762  Attn: General Counsel    11. Miscellaneous.    11.1 Entire Plan. This Plan contains the entire understanding of the parties relating to the subject  matter hereof.    11.2 No Right to Continued Service. Nothing contained in this Plan shall (a) confer upon any  Participant or any other Person any right to continue as an employee or other service provider of the  Company or any of its Affiliates, (b) constitute any contract of employment or service or agreement to  continue employment or service for any particular period, or (c) interfere in any way with the right of the  Company or any of its Affiliates to terminate a service relationship with any Participant, with or without  Cause.      11.3 Termination and Amendment of Plan.  The Company, through the Administrator, reserves the  right to amend or terminate the Plan or the benefits provided hereunder at any time, provided, however, that  no such amendment or termination will apply to any Participant  who would be materially adversely affected  by such amendment or termination, unless such Participant consents in writing to such amendment or  termination.      

 

    9    11.4 Withholding. The Company and its Affiliates shall have the authority and the right to deduct and  withhold an amount sufficient to satisfy federal, state, local and foreign taxes required by law to be withheld  with respect to any Severance Benefits payable under this Plan.    11.5 Benefits not Assignable. Except as otherwise provided herein or by law, (a) no right or interest  of any Participant under the Plan shall be assignable or transferable, in whole or in part, either directly or  by operation of law or otherwise, including without limitation by execution, levy, garnishment, attachment,  pledge or in any manner, (b) no attempted assignment or transfer thereof shall be effective and (c) no right  or interest of any Participant under the Plan shall be liable for, or subject to, any obligation or liability of  such Participant. When a payment is due under this Plan to a Participant who is unable to care for his or her  affairs, payment may be made directly to his or her legal guardian or personal representative.    11.6 Applicable Law. This Plan shall be construed and interpreted in accordance with the laws of the  State of Florida without reference to the conflict of laws provisions thereof, to the extent not preempted by  federal law, which shall otherwise control.    11.7 Validity. The invalidity or unenforceability of any provision of this Plan shall not affect the  validity or enforceability of any other provision of this Plan, which shall remain in full force and effect.     11.8 Captions. The captions contained in this Plan are for convenience only and shall have no bearing  on the meaning, construction or interpretation of the Plan’s provisions.    11.9 Expenses. The expenses of administering the Plan shall be borne by the Company or any  successor entity.    11.10 Unfunded Plan. The Plan is intended to be an “unfunded” plan with respect to Severance Benefits.  With respect to any Severance Benefits not yet paid to a Participant, nothing contained in the Plan shall  give the Participant any rights that are greater than those of a general unsecured creditor of the Company  or any Successor Entity.    11.11 Right to Require Information and Reliance Thereon.  The Administrator shall have the right to  require Participants, and others to provide it and its agents with such information, in writing, and in such  form as the Administrator may deem necessary or appropriate to administer the Plan, and the Administrator  may rely on that information in carrying out its duties. Any payment to a Participant in accordance with the  provisions of the Plan in good faith reliance upon any written information provided by the Participant shall  be in full satisfaction of all claims by the Participant.      12. General Plan Information    Plan Name: Digital Media Solutions, Inc. Executive Severance Plan  Type of Plan: Unfunded welfare benefit plan  Plan Sponsor: Digital Media Solutions, Inc.   Identification Numbers:  EIN:  98-1399727  PLAN:  502  Plan Year: January 1 – December 31, with a short initial plan year from [date]  through December 31, 2022  

 

    10    Plan Administrator:  Digital Media Solutions, Inc.  ATTN:  Chief Executive Officer   4800 140TH Avenue North, Suite 101  Clearwater, FL. 33762  727-287-0426  Agent for Service of   Legal Process:    General Counsel  Digital Media Solutions, Inc.   4800 140TH Avenue North, Suite 101  Clearwater, FL. 33762  727-287-0426  Funding Mechanism: Severance benefits are paid out of the Company’s general assets.    STATEMENT OF ERISA RIGHTS  As a Participant in the Digital Media Solutions, Inc. Executive Severance Plan, you are entitled to certain  rights and protections.   ERISA provides that all Plan participants shall be entitled to:    Receive information about the Plan and benefits    • Examine, without charge, at the Plan Administrator’s office and other specified locations, such as  worksite, all documents governing the Plan, and a copy of the latest annual report (Form 5500 Series)  filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of  the Employee Benefits Security Administration (if applicable).    • Obtain, upon written request to the Plan Administrator, copies of documents governing the operation  of the Plan, and copies of the latest annual report (Form 5500 Series) (if applicable) and updated  summary plan description (if applicable).  The Plan Administrator may make a reasonable charge for  the copies.     Prudent actions by Plan fiduciaries    In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible  for the operation of the Plan. The people who operate the Plan, called “fiduciaries” of the Plan, have a duty to  do so prudently and in the interest of you and other Plan participants and beneficiaries. No one, including your  employer, or any other person, may fire you or otherwise discriminate against you to prevent you from either  obtaining any Plan benefit or exercising your rights under ERISA.     Enforce your rights    If your claim for a Plan benefit is denied or ignored in whole or in part, you have a right to know why this  was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all  within certain time schedules.    Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of  plan documents or the latest annual report from the Plan and do not receive them within 30 days, you may file  suit in a Federal court. In such a case, the court may require the Plan Administrator to provide the materials  and pay you up to $110 per day until you receive the materials (unless the materials were not sent because of  reasons beyond the control of the Plan Administrator). If you have a claim for benefits which is denied or  

 

    11    ignored, in whole or in part, you may file suit in a state or Federal court subsequent to exhausting the Plan’s  claims and appeals procedures. If it should happen that Plan fiduciaries misuse the Plan’s money, or if you  are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of  Labor, or you may file suit in a Federal court. The court will decide who should pay court costs and legal fees.  If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose,  the court may order you to pay these costs and fees (for example, if the court finds your claim is frivolous).    Assistance with your questions    If you have any questions about the Plan, you should contact the Plan Administrator. If you have any  questions about this statement or about your rights under ERISA, or if you need assistance in obtaining  documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits  Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of  Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor,  200 Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain publications about  your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits  Security Administration.         IN WITNESS WHEREOF, Digital Media Solutions, Inc. hereby adopts this Digital Media  Solutions, Inc. Executive Severance Plan, effective as of August 4, 2022.    DIGITAL MEDIA SOLUTIONS, INC.     By: ____________________________________    Printed Name: ___________________________     Its: ____________________________________     Date:  __________________________________      

 

    12  51679327.v1-OGLETREE    ANNEX A      Joseph Marinucci Fernando Borghese  Richard Rodick Jason Rudolph  Matt Goodman Anthony Saldana  Cliff Libby Jessica Jones  Taryn Lomas             49727789.1Document

EXHIBIT 10.1

EXECUTIVE SEVERANCE POLICY

This Executive Severance Policy (the “Policy”) of XL Fleet Corp. (the “Company”), a Delaware corporation (the “Company”), is effective as of May 11, 2022 (the “Effective Date”).
1. Purpose and Participation. The purpose of this Policy is to provide specified benefits to a select group of designated management or highly compensated key employees of the Company designated by the Company’s board of directors (the “Board”) or compensation committee thereof (the “Committee”) (the “Participants”), in order to induce the Participants to remain employed by the Company. If the Administrator (as defined below) so determines, in its sole discretion, Participants may be provided participation letters or agreements (“Participation Letters”) memorializing their participation in this Policy in accordance with the terms herewith.
2. Qualifying Termination. If a Participant is subject to a Qualifying Termination, then subject to the terms and conditions set forth in this Policy, the Participant will be entitled to the following benefits:
(a) Salary Severance Benefits. 
(i) The Company will pay the Participant nine (9) months of his or her base salary at the rate in effect immediately prior to the actions that resulted in the Qualifying Termination.
(ii) The Participant will receive his or her severance payment in a cash lump sum, which payment will be made no later than the first regular payroll date occurring after the forty-fifth (45th) day following the Separation, provided that the Release Conditions have been met. 
    (b) Bonus.
        (i) If Participant is eligible for an annual performance bonus, the Participant will be deemed to have met One Hundred Percent (100%) of his or her target goals for purposes of receiving the agreed-upon annual performance bonus as communicated by the Company, or otherwise in an amount determined in the Board or Committee’s discretion.  The annual performance bonus payable to the Participant as a result of the Qualifying Termination shall be pro-rated based on the effective date of the Qualifying Termination relative to the date the annual performance bonus would be due and payable under the bonus payment cycle of the Company.
        (ii) The Participant will receive his or her bonus payment in a cash lump sum, which payment will be made no later than the first regular payroll date occurring after the forty-fifth (45th) day following the Separation, provided that the Release Conditions have been satisfied.
(c) Continued Employee Benefits.
(i) If Participant timely elects continued coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Company will pay the employer, employee and administrative portion of Participant’s COBRA premiums on behalf of the Participant (and his or her eligible dependents) for continued coverage under the Company’s welfare benefit plans for up to nine (9) months, or such other number of months as may be set forth in the Participant’s Participation Letter, following the Participant’s Separation, in any case, only until Participant is eligible to be covered under substantially equivalent group insurance plans of a subsequent employer, provided, however, that if the Release Conditions are not satisfied, then the COBRA subsidies described in this subsection (i) will immediately cease as of the sixtieth (60th) day following the Separation, and any COBRA subsidies previously paid by the Company will immediately become due and repayable in full (gross of any applicable taxes) by the Participant. It is Participant’s obligation to notify the Company in the event that Participant becomes eligible to be covered under substantially equivalent group insurance plans of a subsequent employer. In the event Company discovers that Participant has not fulfilled his or her duties under this Section, Company shall immediately terminate its payments hereunder.
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3. COC Qualifying Termination. If a Participant is subject to a COC Qualifying Termination, then subject to the terms and conditions set forth in this Policy, the Participant will be entitled to the following benefits:
(a) Salary Severance Benefits.
(i) The Company will pay the Participant eighteen (18) months of his or her base salary at the rate in effect immediately prior to the actions that resulted in the COC Qualifying Termination.
(ii) The Participant will receive his or her severance payment in a cash lump sum, which payment will be made no later than the first regular payroll date occurring after the forty-fifth (45th) day following the Separation, provided that the Release Conditions have been satisfied.
    (b) Bonus.
        (i) If Participant is eligible for an annual performance bonus, the Participant will be deemed to have met One Hundred Percent (100%) of his or her target goals for purposes of receiving the agreed-upon annual performance bonus communicated by the Company, or otherwise in an amount determined in the Board or Committee’s discretion.  The annual performance bonus payable to the Participant as a result of the COC Qualifying Termination shall be pro-rated based on the effective date of the Change in Control relative to the date the annual performance bonus would be due and payable under the bonus payment cycle of the Company. 
        (ii) The Participant will receive his or her bonus payment in a cash lump sum, which payment will be made no later than the first regular payroll date occurring after the forty-fifth (45th) day following the Separation, provided that the Release Conditions have been satisfied.
(c) Continued Employee Benefits.
(i) If Participant timely elects continued coverage under COBRA, the Company will continue to pay the employer, employee and administrative portion of Participant’s COBRA premiums on behalf of the Participant (and his or her eligible dependents) for continued coverage under the Company’s welfare benefit plans for up to eighteen (18) months, or such other number of months as may be set forth in the Participant’s Participation Letter, following the Participant’s Separation, in any case, only until Participant is eligible to be covered under substantially equivalent group insurance plans of a subsequent employer, provided, however, that if the Release Conditions are not satisfied, then the COBRA subsidies described in this subsection (i) will immediately cease as of the sixtieth (60th) day following the Separation, and any COBRA subsidies previously paid by the Company will immediately become due and repayable in full (gross of any applicable taxes) by the Participant. It is Participant’s obligation to notify the Company in the event that Participant becomes eligible to be covered under substantially equivalent group insurance plans of a subsequent employer. In the event Company discovers that Participant has not fulfilled his or her duties under this Section, Company shall immediately terminate its payments hereunder.

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 (d) Equity.
(i) On a COC Qualifying Termination, any then-unvested equity previously awarded to Participant under the Company’s 2020 Equity Incentive Plan that are subject to time-based vesting requirements will immediately vest and, in the case of stock options and stock appreciation rights, will become exercisable.   Any such shares that vest under this paragraph will be settled on the sixty-first (61st) day following Participant’s COC Qualifying Termination. In the event that Participant’s COC Qualifying Termination occurs prior to a Change of Control or Corporate Transaction, then any unvested portion will remain outstanding for 3 months so that any additional benefits due on a COC Qualifying Termination can be provided if a Change of Control or Corporate Transaction occurs within 3 months following the COC Qualifying Termination. In no event will the terminated Participant’s stock options or similar equity awards remain outstanding beyond the equity award’s maximum term to expiration.  In the event that the Committee or Board renders the treatment of Participant’s then-unvested equity more favorably than as set forth herein, the more favorable terms shall apply.  If no Change of Control occurs within 3 months after a COC Qualifying Termination, any unvested portion of the Participant’s equity award(s) automatically will be forfeited permanently without having vested. 

 (ii) This subsection expressly supersedes the acceleration provision(s), if any, set forth in Equity Awards granted prior to the Effective Date hereof, to the extent (if at all) that the former and the latter conflict, and applies to all future Equity Awards, except to the extent the applicable award agreement provides otherwise in a provision that expressly references this provision.

4. Release Conditions. The benefits under Section 2 and Section 3 will not apply unless the Participant (i) has executed a general release (in a form prescribed by the Company) of all known and unknown claims that he or she may then have against the Company and/or persons affiliated with the Company and such release has become effective and (ii) has agreed not to prosecute any legal action or other proceeding based upon any of such claims. The release must be in the form prescribed by the Company (to include, in the Company’s sole discretion, such standard clauses as confidentiality, cooperation and non-disparagement) without alterations (this document effecting the foregoing, the “Release”), which the Company will deliver to the Participant within thirty (30) days after the Participant’s Separation. The Participant must execute and return the Release within the time period specified in the form and, in any case, within forty-five (45) days following Participant’s Separation. “Release Conditions” means: (i) Company has timely received the Participant’s executed Release and (ii) any rescission period applicable to the Participant’s executed Release has expired (without Participant having rescinded the executed Release).
5. Accrued Compensation and Benefits. In connection with any termination of employment, whether a Qualifying Termination, COC Qualifying Termination or otherwise, the Company will pay Participant’s earned but unpaid base salary and other vested but unpaid cash entitlements for the period through and including the termination of employment, including unreimbursed documented business expenses incurred by Participant through and including the date of termination (all the foregoing, collectively, “Accrued Compensation and Expenses”), as required by law and the applicable Company plan or policy. Participant will also be entitled to any other vested benefits earned by Participant for the period through and including the termination date of Participant’s employment under any other employee benefit plans and arrangements maintained by the Company, in accordance with the terms of such plans and arrangements, except as modified herein.

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6. Certain Definitions.
(a) “Cause” means, with respect to a Participant, any of the following: (i) Participant’s conviction of or a plea of nolo contendere of (A) a felony or (B) any misdemeanor involving moral turpitude, deceit, dishonesty, or fraud; (ii) Participant’s willful failure or refusal to comply with lawful directions of the Board, which failure or refusal continues for more than ten (10) business days after written notice is given to Participant; or (iii) willful and material breach by Participant of a material written Company policy of under their employment agreement, provided Participant does not cure such breach within ten (10) business days after receiving written notice of the alleged breach. Except in the case of (ii) and (iii) above, it is not necessary that the Company’s finding of Cause occur prior to Employee’s termination of service.
 (b) “Code” means the Internal Revenue Code of 1986, as amended.
 (c) “Change of Control” shall have the meaning as defined in the Plan.
(d) “COC Qualifying Termination” means, with respect to a Participant, his or her Separation (i) occurring within ninety (90) days before or twelve (12) months after a Change of Control or Corporate Transaction and (ii) resulting from (A) the Company or its successor terminating the Participant’s employment for any reason other than Cause or (B) the Participant voluntarily resigning his or her employment for Good Reason, provided, in any case, that a termination or resignation due to the Participant’s death or disability will not constitute a COC Qualifying Termination.
(e) “Corporate Transaction” shall have the meaning as defined in the Plan.
(f) “Equity Awards” means all Participants’ options to purchase shares of Company common stock, as well as all other stock-based awards, including, but not limited to, stock bonus awards, restricted stock, restricted stock units and stock appreciation rights.
(g) “Good Reason” means, with respect to a Participant, any of the following occurrences without Participant’s consent: (i) relocation of Participant’s principal business location to a location more than twenty-five (25) miles from Participant’s then-current business location; (ii) a material diminution in Participant’s duties, authority or responsibilities; (iii) a material reduction in Participant’s Base Salary (other than an across the board reduction applying to other employees of the Company); or (iv) willful and material breach by the Company of its covenants and/or obligations under this Agreement; provided that, in each of the foregoing clauses (i) through (iv) (A) Participant provides the Company with written notice that Participant intends to terminate Participant’s employment hereunder for one of the grounds set forth in this Section 6(g) no later than thirty (30) days of such ground occurring, (B) if such ground is capable of being cured, the Company has failed to cure such ground within a period of fifteen (15) days from the date of such written notice, and (C) Participant terminates by written notice Participant’s employment within forty-five (45) days from the date that Participant provides the notice contemplated by clause (A) of this Section 6(g). For purposes of clarification, the above-listed conditions shall apply separately to each occurrence of Good Reason, and failure to adhere to such conditions in the event of Good Reason shall not disqualify Participant from asserting Good Reason for any subsequent occurrence of Good Reason. For purposes of this Agreement, “Good Reason” shall be interpreted in a manner, and limited to the extent necessary, so that it shall not cause adverse tax consequences for either party with respect to Section 409A (“Section 409A”) of the Internal Revenue Code of 1986, as amended (the “Code”) and any successor statute, regulation and guidance thereto.
 (h) “Participant”  means the following employees of the Company: the Chief Executive Officer; the Chief Financial Officer; the General Counsel; the Vice President of People; the Vice President, Corporate Strategy & Product Management; the Chief Technology Officer and General Manager of Drivetrain; and the Vice President and General Manager of XL Grid; and/or other such Company employees as the Committee and/or Board shall designate.

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(i) “Plan” means the Company’s 2020 Equity Incentive Plan, as may be amended from time to time.
(j)“Qualifying Termination” means, with respect to a Participant, his or her Separation resulting from (i) the Company terminating the Participant’s employment for any reason other than Cause or (ii) the Participant voluntarily resigning his or her employment for Good Reason, in each case, occurring outside of the ninety (90) days prior to or twelve (12) months following a Change of Control, provided, in any case, that a termination or resignation due to the Participant’s death or disability will not constitute a Qualifying Termination.
(k)“Separation” means a “separation from service” (as such term is defined in the regulations under Section 409A of the Code).
7. Golden Parachute Taxes.
(a) Best After-Tax Result. In the event that any payment or benefit received or to be received by Participant pursuant to this Policy or otherwise (such payments and benefits, “Payments”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code and, (ii) but for this subsection (a), be subject to the excise tax imposed by Section 4999 of the Code, any successor provisions, or any comparable federal, state, local or foreign excise tax (any of these, as applicable, the “Excise Tax”), then, subject to the provisions of Section 8, such Payments will be provided either (A) in full, pursuant to the terms of this Policy or any other applicable agreement, or (B) as to such lesser extent as would result in no portion of such Payments being subject to the Excise Tax (such lesser amount, the “Reduced Amount”), whichever of the foregoing amounts, taking into account the applicable federal, state, local and foreign income, employment and other taxes and the Excise Tax (including, without limitation, any interest or penalties on such taxes), results in the receipt by Participant, on an after-tax basis, of the greatest amount of payments and benefits provided for hereunder or otherwise, notwithstanding that all or some portion of such Payments may be subject to the Excise Tax. If the Internal Revenue Service (the “IRS”) determines that any Payment is subject to the Excise Tax, then the following subsection (b) will apply, and the enforcement thereof will be the exclusive remedy to the Company.
(b) Adjustments. If, notwithstanding any reduction described in the foregoing subsection (a) (or in the absence of any such reduction), the IRS determines that Participant is liable for the Excise Tax as a result of the receipt of one or more Payments, then Participant will be obligated to surrender or pay back to the Company, within one-hundred twenty (120) days after a final IRS determination, the smallest amount, if any, as will be required to be surrendered or paid to the Company so that Participant’s net proceeds with respect to such Payments (after taking into account the payment of the Excise Tax imposed on such Payments) will be maximized (such smallest amount, the “Repayment Amount”). Notwithstanding the foregoing, the Repayment Amount with respect to such Payments will be zero (0) if a Repayment Amount of more than zero (0) would not eliminate the Excise Tax imposed on such Payments or if a Repayment Amount of more than zero would not maximize the net amount received by Participant from the Payments. If the Excise Tax is not eliminated pursuant to this subsection (b), Participant will pay the Excise Tax.
(c) Independent Tax Counsel. Unless the Company and Participant otherwise agree in writing, any determination required under this Section 7 will be made by independent tax counsel (the “Independent Tax Counsel”) designated by the Company and reasonably acceptable to Participant, whose determination will be conclusive and binding upon Participant and the Company for all purposes. For purposes of making the calculations required under this Section 7, Independent Tax Counsel may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code, provided that Independent Tax Counsel will assume that Participant pays all taxes at the highest marginal rate. The Company and Participant will furnish to Independent Tax Counsel such information and documents as Independent Tax Counsel may reasonably request in order to make a determination under this Section 7. The Company will bear all costs that Independent Tax Counsel may reasonably incur in connection with any calculations contemplated by this Section 7. In the event that clause (B) above applies, then based on the information provided to Participant and the Company by Independent Tax 
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Counsel, Participant may, in Participant’s sole discretion and within thirty (30) days of the date on which Participant is provided with the information prepared by Independent Tax Counsel, determine which and how much of the Payments (including the accelerated vesting of equity compensation awards) to be otherwise received by Participant will be eliminated or reduced (as long as after such determination the value (as calculated by Independent Tax Counsel in accordance with the provisions of Sections 280G and 4999 of the Code) of the amounts payable or distributable to Participant equals the Reduced Amount).
8. Section 409A.
(a) Specified Employees. To the extent (i) any payments to which a Participant becomes entitled under this Policy, or any agreement or plan referenced herein, in connection with the Participant’s Separation constitute deferred compensation subject to Section 409A of the Code and (ii) the Participant is deemed at the time of such termination of employment to be a “specified” employee under Section 409A of the Code, then such payment or payments will not be made or commence until the earlier of (i) six (6) months after the Participant’s Separation and (ii) the Participant’s death following such Separation, provided, however, that such deferral will be effected only to the extent required to avoid adverse tax treatment to the Participant, including (without limitation) the additional twenty percent (20%) tax for which the Participant would otherwise be liable under Section 409A(a)(1)(B) of the Code in the absence of such deferral. Upon the expiration of the applicable deferral period, any payments which would have otherwise been made during that period (whether in a single sum or in installments) in the absence of this paragraph will be paid to the Participant (or his or her beneficiary) in one lump sum without interest.
(b) Expense Reimbursements and In-Kind Benefits. Except as otherwise expressly provided herein, to the extent any expense reimbursement, or the provision of any in-kind benefit, under this Policy (or otherwise referenced herein) is determined to be subject to (and not exempt from) Section 409A of the Code, the amount of any such expenses eligible for reimbursement, or the provision of any in-kind benefit, in one calendar year will not affect the expenses eligible for reimbursement or in kind benefits to be provided in any other calendar year. In no event will any expenses be reimbursed for a Participant after the last day of the calendar year following the calendar year in which the Participant incurred such expenses, and in no event will any right to reimbursement or the provision of any in-kind benefit be subject to liquidation or exchange for another benefit.
(c) Interpretation. To the extent that any provision of this Policy is ambiguous as to its exemption or compliance with Section 409A, the provision will be read in such a manner so that all payments hereunder are exempt from Section 409A to the maximum permissible extent, and for any payments where such construction is not tenable, that those payments comply with Section 409A to the maximum permissible extent. To the extent any payment under this Policy may be classified as a “short-term deferral” within the meaning of Section 409A, such payment will be deemed a short-term deferral, even if it may also qualify for an exemption from Section 409A under another provision of Section 409A. Payments pursuant to this Policy (or referenced in this Policy) are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the regulations under Section 409A.
9. Miscellaneous Provisions.
(a) Administration. This Policy shall be administered by the Board or the Committee (either of these, as applicable, the “Administrator”). All questions of interpretation or application of this Policy shall be determined by the Administrator, and every finding, decision and determination made by the Administrator will, to the full extent permitted by law, be final and binding upon all Participants. The Administrator will have full and exclusive discretionary authority to construe, interpret and apply the terms of the Policy, to determine eligibility, to designate the Participants and to decide claims filed under the Policy.
(b) Other Arrangements. This Policy supersedes all cash severance arrangements and vesting acceleration arrangements (if any) under any agreement governing Equity Awards, severance and salary continuation arrangements, programs and plans that were previously offered by the Company to Participants, including employment agreements and offer letters, and by participating in this Policy, Participants waive their rights to such other benefits. In no event will any individual receive cash severance benefits under both this Policy and any other vesting acceleration, severance pay or salary 
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continuation program, plan or other arrangement with the Company. The vesting acceleration provisions set forth in any employment agreement, offer letter or similar agreement between the Company and any Participant in effect on the Effective Date, to the extent more favorable to the Participant, will continue to apply to the Equity Awards held by the Participant on such date.
(c) Dispute Resolution. To ensure rapid and economical resolution of any and all disputes that might arise in connection with this Policy, the Participants and the Company agree that any and all disputes, claims, and causes of action, in law or equity, arising from or relating to this Policy or its enforcement, performance, breach or interpretation, will be resolved solely and exclusively by final, binding and individual arbitration, by a single arbitrator. Nothing in this section, however, is intended to prevent either party from seeking injunctive relief in court to prevent irreparable harm pending the conclusion of any such arbitration. Each party to an arbitration or litigation hereunder will be responsible for the payment of its own attorneys’ fees.
(d) Notice. Notices and all other communications contemplated by this Policy will be in writing and will be deemed to have been duly given when personally delivered or when deposited with Federal Express Corporation or a comparable nationally recognized overnight courier, with shipping charges prepaid. Notices mailed to Participants will be addressed to each of them at the respective home address that he or she most recently communicated to the Company in writing. Notices mailed to the Company will be addressed to the Wixom, Michigan Company office headquarters, and all notices will be directed to the attention of its General Counsel.
(e) Waiver. The Administrator may modify and/or terminate this Policy, in whole or in part, and/or add/remove Participants at any time, provided that no such modification and/or termination will adversely affect any Participant’s rights under this Policy without such Participant’s prior written consent. No provision of this Policy, as applicable to any Participant, will be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by the Participant and by an authorized officer of the Company (other than the Participant). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Policy will be considered a waiver of any other condition or provision or of the same condition or provision at another time.
(f) Withholding Taxes. All payments made under this Policy will be subject to all such taxes and/or withholding as may be required by applicable federal, state and local law.
(g) Severability. The invalidity or unenforceability of any provision or provisions of this Policy will not affect the validity or enforceability of any other provision hereof, which will remain in full force and effect.
(h) Unfunded Obligations. The obligations of the Company under this Policy are funded from the Company’s general assets.
(i) Successors. The Company will require any successor (whether direct or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company’s business and/or assets to assume this Policy and to agree expressly to perform this Policy in the same manner and to the same extent as the Company would be required to perform it in the absence of a succession. For all purposes under this Policy, the term “Company” will include any successor to the Company’s business and/or assets or which becomes bound by this Policy by operation of law. This Policy and all rights of Participants hereunder will inure to the benefit of, and be enforceable by, the Participants’ respective personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.
(j) Employment At Will. This Policy does not obligate the Company to continue to employ any Participant for any specific period of time or in any specific role or geographic location. Nothing in this Policy will confer upon any Participant any right to continue in service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company or any subsidiary of the Company or of the Participant to terminate the Participant’s service at any time and for any reason or no reason, with or without Cause, and such rights are hereby expressly reserved.
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(k) Choice of Law. The validity, interpretation, construction and performance of this Policy will be governed by the laws of the Commonwealth of Massachusetts (other than its choice-of-law provisions).
(l) Entire Agreement. This Policy represents the entire agreement between the Participants and the Company with respect to the Participants’ severance rights. This Policy supersedes and replaces all the Company’s prior severance policies or agreements with the Participant regarding severance benefits, to the extent any provision of this Policy conflicts with a prior severance policy or agreement with the Participant.
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XL Fleet Corp.
[Letter Transmission Date]
[Participant First] [Participant Last]
Re: Participation in Change of Control Severance Policy
Dear [Participant First]:
The purpose of this letter is to inform you that you have been designated by XL Fleet Corp., a Delaware corporation (the “Company”), as a participant in the Company’s Executive Severance Policy, a copy of which is enclosed herewith (as in effect from time to time, the “Policy”). Capitalized terms used in this letter but not otherwise defined herein have the meanings given in the Policy.
Subject to the terms and conditions of the Policy, if you undergo a Qualifying Termination and satisfy the Release Conditions (as well as the other terms and conditions set forth in the Policy), the Company will provide you the following amounts of severance benefits described in the Policy:
									
			
	Salary severance under Section 2(a): nine months.
Bonus severance under Section 2(b): 100% accomplishment of goals
	
		
	COBRA subsidization under Section 2(c): nine months.
	

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Subject to the terms and conditions of the Policy, if you undergo a COC Qualifying Termination and satisfy the Release Conditions (as well as the other terms and conditions set forth in the Policy), the Company will provide you the following amounts of severance benefits described in the Policy:
									
			
	Severance benefits under Section 3(a): eighteen months
	
	Bonus severance under Section 3(b): 100% accomplishment of goals
	
	COBRA subsidization under Section 3(c): eighteen months
	
		
	Equity acceleration under Section 3(d): per Committee/Board instruction
	

Your participation in the Policy is governed in all respects by the terms and conditions of the Policy, and in the event of any conflict between this letter and the Policy, the Policy will control.

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	Sincerely,
	XL Fleet Corp.
	
	[Company Signatory Name, Title]

																		
						
	Acknowledged and agreed,	
		
	[Participant First] [Participant Last]	
		(Date)

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