Document:

lmfa-ex102_6.htm

 

Exhibit 10.2

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is dated as of September 30, 2020 (the “Effective Date”), by and between LM Funding America, Inc., Delaware incorporated corporation (the “Company”), and Richard Russell (“Executive”).  

Recitals

A.The Company and Executive have entered into an Employment Agreement, dated as of April 15, 2019, under which Executive is employed by the Company (the “Existing Employment Agreement”);

B.The Company and Executive have agreed to protect the interests of the Company and Company’s customers and Confidential Information (as defined below) that may have been or that may be disclosed to Executive as set forth herein; and

C.The Company and Executive desire to amend and restate the Existing Employment Agreement in its entirety, effective as of the Effective Date, as set forth herein.  

Agreement

NOW, THEREFORE, in consideration of the mutual promises made herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, agree to amend and restate the Existing Employment Agreement in its entirety as follows: 

Section 1.Employment, Duties and Acceptance.  

(a)The Company shall employ Executive during the Term (as defined below) as Chief Financial Officer.  Executive shall be responsible for performing the duties and exercising the powers which the Chief Executive Officer and Board of Directors of the Company (the “Board”) may from time-to-time assign to him in his capacity as Chief Financial Officer of the Company in 

 

connection with the conduct and management of the business of the Company and its subsidiaries and affiliates.  

(b)Executive hereby accepts such employment and agrees, during the Term, to render Executive’s services to the Company on a full-time basis and to devote Executive’s full business time and attention to the business and affairs of the Company and any subsidiary or affiliate of the Company, provided that Executive may perform the services described on Exhibit A hereto during the Term so long as his performance of such services does not unduly interfere with his performance of his duties for the Company.  Executive agrees that at all times during the Term, Executive will faithfully perform the duties so assigned to him to the best of Executive’s ability.  Executive further agrees to accept election and to serve during all or any part of the Term as an officer, director or representative of any subsidiary or affiliate of the Company, without any compensation therefor other than that specified in this Agreement.  Executive shall report directly to the Chief Executive Officer. 

(c)The duties to be performed by Executive hereunder shall be principally performed at the Company’s offices located in Tampa, Florida, subject to reasonable travel requirements on behalf of the Company.  Executive shall be entitled to an annual paid time off of 30 days on the same terms that the Company provides to other similarly situated senior Company executives in accordance with the Company’s policies and practices; provided that Executive shall schedule the timing and duration of Executive’s vacations in a reasonable manner taking into account the needs of the business of the Company.  

(d)Executive acknowledges that from time to time the Company may promulgate workplace policies and rules.  Executive agrees to fully comply with all such policies and rules, and understands that failure to do so may result in a disciplinary action up to and including immediate discharge for Cause.  

Section 2.Term.  As used herein, the “Term” means the period commencing on the Effective Date and ending on the third anniversary thereof; provided that, following such third anniversary, the Term shall be automatically renewed each successive year unless Executive or the Company gives written notice of termination on or before the 30th day prior to the automatic renewal date of its desire not to renew the Term.  Any such renewal shall be upon the terms and 

 

conditions set forth herein unless otherwise agreed between the Company and Executive.  In the event that the Company gives written notice that it does not intend to renew the Term, Executive shall be entitled to the benefits set forth in Section 4(b)(iii).    

Section 3.Compensation.  Executive shall be entitled to the following compensation: 

(a)The Company agrees to pay to Executive a salary in cash (the “Salary”), as compensation for the services to be performed by Executive, at the rate of $200,000 per calendar year until October 1, 2020 and at the rate of $120,000 per calendar year for the remainder of the Term, in each case paid in accordance with the Company’s customary payroll procedures and subject to applicable withholding. In exchange for the reduction in base salary, Executive shall receive a one-time lump sum cash payment in a gross amount of $280,000, to be paid on September 30, 2020 (the “One-Time Payment”). If Executive’s employment with the Company terminates as a result of Executive’s Resignation Without Good Reason (as defined below) prior to the first anniversary of the Effective Date, Executive shall repay a pro-rated amount of the One-Time Payment upon such termination.  During the Term, the Board shall have the right to increase, but not decrease, the Salary, except the Board may decrease the Salary in connection with a base salary decrease that is generally applicable to all members of the Company’s senior management.  Without limiting the generality of the foregoing, Executive will be eligible for additional annual salary merit increases during the Term based on the evaluation of Executive’s performance as determined by the Board in its sole discretion. Executive’s salary as in effect from time to time shall constitute the “Salary” for purposes of this Agreement.  

(b)The Company shall reimburse Executive for all reasonable expenses incurred by Executive in the course of performing Executive’s duties under this Agreement that are consistent with the Company’s policies in effect from time to time with respect to travel, entertainment and other business expenses, subject to the Company’s requirements with respect to reporting and documentation of such expenses.  

(c)In recognition of Executive’s contributions to the Company’s successful recapitalization, Executive shall receive, on or as soon as reasonably practicable after the Effective Date, a one-time cash bonus in the gross amount of $315,000.

 

(d)Executive shall be eligible to participate in any equity incentive plan, restricted share plan, share award plan, stock appreciation rights plan, stock option plan or similar plan adopted by the Company on the same terms and conditions applicable to other senior Company executives, with the amount of such awards to be determined by the Board in its sole discretion.  Executive shall be eligible for an annual bonus and long term incentive awards as determined at the sole discretion of the Board.  Without limiting the generality of the foregoing, commencing on January 1, 2021 and on the first day of each subsequent calendar quarter for the remainder of the Term, Executive will receive a grant of restricted common stock of the Company with a grant date fair value equal to $25,000.  Each grant is contingent on the availability of sufficient shares under the Company’s equity incentive plan in effect at the time and all applicable securities laws and regulations and stock exchange requirements. The number of shares of restricted common stock granted shall be equal to the grant date fair value divided by the volume-weighted average price of the Company’s common stock over the 10 trading days preceding the grant date.  The restricted common stock will be evidenced by a restricted stock agreement and will initially be subject to forfeiture and will vest ratably on the first day of each calendar quarter over the 4 calendar quarters immediately following the grant date, contingent on Executive’s continuous employment or service with the Company until the applicable vesting date.  In the event of a Change of Control (as defined in the Company’s 2015 Omnibus Incentive Plan as in effect on the Effective Date) (a “Change of Control”) during the Term, any then-unvested outstanding restricted common stock granted pursuant to the preceding four sentences shall become fully vested.  

(e)Executive shall be entitled to all rights and benefits for which Executive shall be eligible under any retirement, retirement savings, profit-sharing, pension or welfare benefit plan, life, disability, health, dental, hospitalization and other forms of insurance and all other so-called “fringe” benefits or perquisites (except for with respect to any plan that provides severance or other similar benefits), on the same terms that the Company provides to other similarly situated senior Company executives (subject to all restrictions on participation that may apply under federal and state tax laws).  

(f)In the event of a Change of Control during the Term, Executive shall receive a lump sum cash bonus in a gross amount of $500,000 (a “Change of Control Bonus”), payable on the consummation of the Change of Control, if Executive has continued in employment or service 

 

with the Company until the date of such consummation.  If any portion of the Change of Control Bonus would, in the opinion of tax counsel engaged by the Company (“Tax Counsel”), be subject to the tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”) (or any successor provision) (the “Excise Tax”), then the Company shall pay to the Executive, no later than 2 1⁄2 months following the end of the year in which the Change of Control Bonus is paid, an additional amount (the “Gross-Up Payment”) such that the net amount retained by the Executive, after deduction of (i) any Excise Tax; (ii) any federal, state or local income tax, interest charges or penalties arising in respect of the imposition of such Excise Tax; and (iii) any federal, state or local income tax or Excise Tax imposed upon the payment provided for by this paragraph, necessary to place the Executive in the same after-tax financial position that he would have been in if he had not incurred any liability for the Excise Tax. For purposes of determining the amount of the Gross Up Payment, the Executive shall be deemed to pay federal income taxes at the highest marginal stated rate of federal income taxation in the calendar year in which the Gross-Up Payment is to be made and state and local income taxes at the highest marginal states rates of taxation in the state and locality of the Executive’s domicile for income tax purposes on the date the Gross-Up Payment is made, net of the expected reduction in federal income taxes that could be obtained from deduction of such state and local taxes.  As a result of the uncertainty in the application of Section 280G of the Code at the time of the initial determinations by the Tax Counsel, it is possible that amounts will have been paid or distributed by the Company to or for the benefit of the Executive pursuant to this Agreement which should not have been so paid or distributed (“Overpayment”) or that additional amounts which should have been paid or distributed (“Underpayment”), in each case, consistent with the calculation of the Gross-Up Payment hereunder. In the event that the Tax Counsel, based upon the assertion of a deficiency by the Internal Revenue Service against the Company or the Executive which the Tax Counsel believes has a high probability of success or other controlling precedent or substantial authority, determines that an Underpayment has been made, any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executive. In the event that the Tax Counsel, based upon controlling precedent or other substantial authority, determines that an Overpayment has occurred, any such Overpayment paid or distributed by the Company to or for the benefit of the Executive shall be treated for all purposes as a loan to the Executive which the Executive shall promptly repay to the Company; provided, however, that no amount shall be payable by the Executive to the Company if and to the extent such payment 

 

would not reduce the amount which is subject to the Excise Tax.  In the event that the provisions of Sections 280G and 4999 of the Code (or any successor provisions) are repealed and not reinstated, this paragraph shall cease to be effective on the effective date of such repeal.

Section 4.Termination.  

(a)Events of Termination.  Executive’s employment with the Company shall terminate (the date of such termination being the “Termination Date”) immediately upon any of the following: 

(i)Executive’s death (“Termination Upon Death”); 

(ii)the effective date of a written notice sent to Executive stating the Company’s determination, made in good faith, that due to a mental or physical condition, Executive has been unable and failed to substantially render the services to be provided by Executive to the Company for a period of at least 180 days out of any consecutive 360 days (“Termination For Disability”); 

(iii)the effective date of a written notice sent to Executive stating the Company’s determination, made in good faith, that it is terminating Executive’s employment for Cause (as defined below) (“Termination For Cause”); 

(iv)the effective date of a notice sent to Executive stating that the Company is terminating Executive’s employment without Cause (including any notice from the Company to Executive pursuant to Section 2 that the Company has decided not to renew the Term), which notice can be given by the Company at any time after the Effective Date at the Company’s sole discretion, for any reason or for no reason (“Termination Without Cause”); 

(v)the effective date of a notice (other than a notice delivered pursuant to Section 4(a)(vi) of this Agreement) sent to the Company from Executive stating that Executive is electing to terminate Executive’s employment with the Company without Good Reason (“Resignation Without Good Reason”); or 

(vi)the effective date of a written notice to Company stating Executive’s determination, made in good faith, that a Good Reason Event (as defined below) has occurred 

 

within 30 days preceding such notice and as a consequence Executive is electing to terminate Executive’s employment hereunder for a Good Reason Event (“Resignation For Good Reason”); provided, however, that Executive will give the Company 30 days to cure such Good Reason Event, and if the Company fails to cure such Good Reason Event within 30 days after Executive gives written notice of resignation hereunder, then Executive may immediately terminate Executive’s employment with the Company, and such termination will be a Resignation For Good Reason hereunder; provided, further, that Executive’s termination shall be deemed a Termination For Cause if the Company has delivered to Executive written notice of any act or omission that, if not cured, would constitute Cause at any time preceding the notice provided by Executive hereunder.  

As used herein, the term “Cause” shall mean (i) commission of a willful act of dishonesty in the course of Executive’s duties hereunder, (ii) conviction by a court of competent jurisdiction of, or plea of no contest to, a crime constituting a felony or conviction in respect of, or plea of no contest to, any act involving fraud, dishonesty or moral turpitude, (iii) Executive’s performance under the influence of controlled substances (other than those taken pursuant to a medical doctor’s orders),  (iv) frequent or extended, and unjustifiable, absenteeism, (v) Executive’s personal misconduct or refusal to perform duties and responsibilities or to carry out the lawful directives of the Board, which, if capable of being cured shall not have been cured, within 30 days after the Company shall have advised Executive in writing of its intention to terminate Executive’s employment, or (vi) Executive’s material non-compliance with the terms of this Agreement, which, if capable of being cured, shall not have been cured within 30 days after the Company shall have advised Executive in writing of its intention to terminate Executive’s employment for such reason.  

As used herein, the term “Good Reason Event” shall mean (i) a material adverse change in the responsibilities or duties of Executive as set forth in this Agreement (including a change in reporting where Executive no longer reports directly to the Chief Executive Officer, or a change in Executive’s capacity as Chief Financial Officer) without Executive’s prior consent at a time when there are no circumstances pending that would permit the Board to terminate Executive for Cause, such that Executive is no longer acting as part of the senior management team of the Company, (ii) any reduction in the Salary or a material reduction in Executive’s benefits (other than (x) the reduction in Salary contemplated by Section 3(a), (y) a reduction in Salary that is the result of an administrative or clerical error, and which is cured within 15 business days after the Company 

 

receives notice of such failure or (z) a reduction in Salary or benefits that are generally applicable to all members of the Company’s senior management), (iii) a material breach by the Company of this Agreement that is not cured within 30 days following the Company’s receipt of written notice of such breach from Executive, or (iv) without Executive’s prior written consent, the relocation of Executive’s principal place of employment outside of a 50 mile radius from the location of the Company’s offices in Tampa, Florida as of the Effective Date.  With regard to clause (i), Executive acknowledges that the Company has flexibility under Section 1(a) to assign Executive a broad range of responsibilities and duties that are consistent with him being a member of the senior management team and such assignments will not constitute a “Good Reason Event.”

(b)Effect of Termination.  

(i)Death or Disability.  In the event of Termination Upon Death or Termination For Disability pursuant to Sections 4(a)(i) or 4(a)(ii) of this Agreement:

(A)Executive (or Executive’s legal representative) shall be entitled to receive in cash an amount equal to any earned but unpaid Salary owing by the Company to Executive as of the Termination Date (the “Accrued Salary”);

(B)Executive (or Executive’s legal representative) shall be entitled to receive in cash, to the extent provided under any management bonus plan, an amount equal to the pro rata portion, determined as of the Termination Date, of any bonus to which Executive would have been entitled had Executive been employed by the Company at the time such bonus would have otherwise been paid (the “Accrued Bonus”); and

(C)all unvested Restricted Shares, Options, and Warrants granted to Executive during the Term of this Agreement shall become fully vested and non-forfeitable as of the Termination Date.  

(ii)Termination For Cause.  In the event of a Termination For Cause pursuant to Section 4(a)(iii) of this Agreement, Executive shall be entitled to receive in cash an amount equal to any Accrued Salary.  

 

(iii)Termination Without Cause and Resignation For Good Reason and Termination Upon Non-renewal.  In the event of Termination Without Cause or Resignation For Good Reason pursuant to Sections 4(a)(iv) or 4(a)(vi) of this Agreement, subject to Section 4(c)(ii) of this Agreement: 

(A)a Executive (or Executive’s legal representative) shall be entitled to receive in cash an amount equal to the Accrued Salary; 

(B)Executive (or Executive’s legal representative) shall be entitled to receive in cash an amount equal to the Accrued Bonus; 

(C)Executive (or Executive’s legal representative) shall be entitled to receive in cash an amount equal to Executive’s Salary (at the rate then in effect, and without taking into account any reductions that would have given rise to Good Reason termination by Executive), payable in equal installments in accordance with the Company’s customary payroll procedures commencing on the Termination Date and ending 24 months thereafter; Company’s obligation to pay Executive shall be subject to reduction on a dollar for dollar basis from income earned from Executive’s substantially similar full time employment (“Replacement Employment”), beginning at the time the Executive commences Replacement Employment. Company shall have the right to a look-back period of 24 months after the Termination Date to verify the accuracy of payments made and to confirm that Executive has not agreed to work for a below-market rate during the twelve months immediately following the Termination Date, provided, however; the foregoing Replacement Employment reduction shall not apply in the event of Termination Without Cause or Termination for Good Reason arising from a change of control where more than 50% of the Company’s directors are replaced in which case Executive shall receive 24 months Executive Salary, payable as described.

(D)all unvested Restricted Shares, Options and Warrants granted to Executive during the Term of this Agreement shall become fully vested and non-forfeitable as of the Termination Date.

 

(iv)Resignation Without Good Reason.  In the event of Resignation Without Good Reason pursuant to Section 4(a)(v) of this Agreement, Executive shall be entitled to receive in cash an amount equal to any Accrued Salary.  

(v)Upon Termination For Any Reason.  In the event of any termination, Executive shall be entitled to receive: 

(A)any unpaid reasonable, reimbursable business expenses incurred by Executive in the course of performing Executive’s duties under this Agreement that were incurred in a manner consistent with the Company’s policies in effect from time to time with respect to travel, entertainment and other business expenses, subject to the Company’s requirements with respect to incurring, reporting and documenting such expenses; and 

(B)benefits under the Company’s benefit plans of general application as shall be determined under the provisions of those plans.  

(c)Additional Provisions.  

(i)Any amounts to be paid pursuant to this Section 4 shall be paid in accordance with the Company’s existing payroll or bonus payment practices, as applicable.  

(ii)As a condition to the Company’s obligations, if any, to make any Accrued Bonus and severance payments provided under Section 4(b)(iii)(B) and (C), Executive shall have executed, delivered and not revoked a general release in the form attached hereto as Exhibit B.

(iii)Notwithstanding any provision of this Agreement, the obligations and commitments under Section 5 of this Agreement shall survive and continue in full force and effect in accordance with their terms notwithstanding any termination of Executive’s employment for any reason or termination of this Agreement for any reason.  

(iv)Notwithstanding anything in this Agreement to the contrary, the Company shall have no obligation to pay any amounts payable under Sections 4(b)(i)(B), 

 

4(b)(iii)(B) or 4(b)(iii)(C) of this Agreement during such times as Executive is in breach of Section 5 of this Agreement, after the Company provides Executive with notice of such breach.  

(v)Executive agrees that termination of Executive’s employment for any reason shall, with no further action by Executive required, constitute Executive’s resignation, as of the Termination Date and to the extent applicable, from all positions as an officer, director or representative of the Company and any subsidiary or affiliate of the Company.

Section 5.Noncompetition, Nonsolicitation And Confidentiality.  

(a)Definitions.  

“Company’s Business” means the business of providing specialty financial products to nonprofit incorporated community associations in the states in which the Company has conducted business.

“Competitor” means any company, other entity or association or individual that directly or indirectly is engaged in the Company’s Business. 

“Confidential Information” means any confidential information with respect to the Company’s Business and/or the businesses of its clients or customers, including, but not limited to: the trade secrets of the Company; products or services; standard proposals; standard submissions, surveys and analyses; policy forms; fees, costs and pricing structures; marketing information; advertising and pricing strategies; analyses; reports; computer software, including operating systems, applications and program listings; flow charts; manuals and documentation; data bases; all copyrightable works; the Company’s existing and prospective clients and customers, their addresses or other contact information and/or their confidential information; existing and prospective client and customer lists and other related data; expiration periods; policy numbers; coverage specifications; daily reports and related correspondence; premium renewal notices; and all similar and related information in whatever form.  The term Confidential Information does not include, and there shall be no obligation hereunder with respect to, information that (i) is generally available to the public on the date of this Agreement, (ii) becomes generally available to the public other than as a result of a disclosure by Executive not otherwise permissible hereunder or (iii) Executive has learned or learns from other sources where, to Executive’s knowledge, such sources have not 

 

violated their confidentiality obligation to the Company or any other applicable obligation of confidentiality.  

(b)Noncompetition.  Executive covenants and agrees that during the period commencing on the Effective Date and ending two years following the Termination Date (the “Restricted Period”), Executive will not, directly or indirectly, own, manage, operate, control, render service to, or participate in the ownership, management, operation or control of any Competitor anywhere in the United States of America; provided, however, that Executive shall be entitled to own shares of stock of any corporation having a class of equity securities actively traded on a national securities exchange or on the Nasdaq Stock Market which represent, in the aggregate, not more than 1% of such corporation’s fully-diluted shares.  

(c)Nonsolicitation of Employees.  Executive covenants and agrees that during the Restricted Period, Executive will not, directly or indirectly, employ or solicit, or receive or accept the performance of services by any then current officer, manager, employee or independent contractor of the Company or any subsidiary or affiliate of the Company, or in any way interfere with the relationship between the Company or any subsidiary or affiliate of the Company, on the one hand, and any such officer, manager, employee or independent contractor, on the other hand.  

(d)Nonsolicitation of Customers and Vendors.  Executive covenants and agrees that during the Restricted Period, Executive will not, directly or indirectly, knowingly induce, or attempt to induce, any customer, salesperson, distributor, supplier, vendor, manufacturer, representative, agent, jobber, licensee or other person known by Executive to be transacting business with the Company or any subsidiary or affiliate of the Company (collectively the “Customers” and “Vendors”) to reduce or cease doing business with the Company or any such subsidiary or affiliate of the Company, or in any way to interfere with the relationship between any such Customer or Vendor, on the one hand, and the Company or any subsidiary or affiliate of the Company, on the other hand.  

(e)Representations and Covenants by Executive.  Executive represents and warrants that:  (i) Executive’s execution, delivery and performance of this Agreement do not and will not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which Executive is a party or by which Executive is bound; 

 

(ii) Executive is not a party to or bound by any employment agreement, noncompete agreement or confidentiality agreement with any other person or entity (other than the Company) and Executive is not subject to any other agreement that would prevent Executive from performing Executive’s duties for the Company or otherwise complying with this Agreement; (iii) Executive is not subject to or in breach of any nondisclosure agreement, including any agreement concerning trade secrets or confidential information owned by any other party; and (iv) upon the execution and delivery of this Agreement by the Company, this Agreement shall be the valid and binding obligation of Executive, enforceable in accordance with its terms.  

(f)Nondisclosure of Confidential Information.  Executive hereby acknowledges and represents that Executive has consulted with independent legal counsel regarding Executive’s rights and obligations under this Agreement and that Executive fully understands the terms and conditions contained herein and Executive agrees that Executive will not, directly or indirectly: (i) use, disclose, reverse engineer or otherwise exploit for Executive’s own benefit or for the benefit of anyone other than the Company the Confidential Information except as authorized by the Company; (ii) during Executive’s employment with the Company, use, disclose, or reverse engineer (x) any confidential information or trade secrets of any former employer or third party, or (y) any works of authorship developed in whole or in part by Executive during any former employment or for any other party, unless authorized in writing by the former employer or third party; or (iii) upon Executive’s resignation or termination (x) retain Confidential Information, including any copies existing in any form (including electronic form), that are in Executive’s possession or control, or (y) destroy, delete or alter the Confidential Information without the Company’s consent.  Notwithstanding the foregoing, Executive may use the Confidential Information in the course of performing Executive’s duties on behalf of the Company or any subsidiary or affiliate of the Company as described hereunder, provided that such use is made in good faith.  Executive will immediately surrender possession of all Confidential Information to Company upon any suspension or termination of Executive’s employment with Company for any reason.  

(g)Inventions and Patents.  Executive acknowledges that all (i) inventions, innovations, improvements, developments, methods, designs, analysis, drawings, reports, processes, novel concepts and all similar or related information (whether or not patentable) that relate to the Company’s or any of its subsidiaries’ or affiliates’ actual or anticipated businesses, (ii) research and 

 

development and (iii) existing or future products or services that are, to any extent, conceived, developed or made by Executive while employed by the Company or any subsidiary or affiliate of the Company (“Work Product”) belong to the Company or such subsidiary or affiliate.  Executive shall promptly disclose such Work Product to the Board and, at the cost and expense of the Company, perform all actions reasonably necessary or requested by the Board (whether during or after the Term) to establish and confirm such ownership (including, without limitation, executing assignments, consents, powers of attorney and other instruments).  

(h)Miscellaneous.  

(i)Executive acknowledges that (x) Executive’s position is a position of trust and responsibility with access to Confidential Information of the Company, (y) the Confidential Information, and the relationship between the Company and each of its employees, Customers and Vendors, are valuable assets of the Company and may not be converted to Executives own use and (z) the restrictions contained in this Section 5 are reasonable and necessary to protect the legitimate business interests of the Company and will not impair or infringe upon Executive’s right to work or earn a living after Executive’s employment with the Company ends.  

(ii)Each of the foregoing obligations shall be enforceable independent of any other obligation, and the existence of any claim or cause of action that Executive may have against the Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of these obligations.  

(iii)Executive acknowledges that monetary damages will not be an adequate remedy for the Company in the event of a breach of this Agreement and that it would be impossible for the Company to measure damages in the event of such a breach.  Therefore, Executive agrees that, in addition to other rights that the Company may have at law or equity, the Company is entitled, without posting bond, to seek an injunction preventing Executive from any breach of this Agreement.  

(iv)In the event of a breach or violation by Executive during the Restricted Period of any restriction in Section 5(b), (b) or (d) of this Agreement, the Restricted Period shall be tolled until such breach or violation has been cured.  

 

(v)The parties intend to provide the Company with the maximum protection possible with respect to its Customers and Vendors.  The parties, however, do not intend to include a provision that contravenes the public policy of any state.  Therefore, if any provision of this Section 5 is unlawful, against public policy or otherwise declared void, such provision shall not be deemed part of this Agreement, which otherwise shall remain in full force and effect.  If, at the time of enforcement of this Agreement, a court or other tribunal holds that the duration, scope or area restriction stated herein is unreasonable under the circumstances then existing, the parties agree that the court should enforce the restrictions to the extent it deems reasonable.  

(vi)Executive hereby agrees that prior to accepting employment with any other person or entity during the Term or during the Restricted Period following the Termination Date, Executive will provide such prospective employer with written notice of the existence of this Agreement and the provisions of this Section 5 of this Agreement, with a copy of such notice delivered simultaneously to the Company in accordance with Section 10 of this Agreement.  

(vii)Notwithstanding any provision of this Agreement, the obligations and commitments of this Section 5 shall survive and continue in full force and effect in accordance with their terms notwithstanding any termination of Executive’s employment for any reason or termination of this Agreement for any reason.  

Section 6.Withholding Taxes.  Prior to making any payments required to be made pursuant to this Agreement, the Company may require that the Company be reimbursed in cash for any taxes required by any government to be withheld or otherwise deducted and paid by the Company in respect of such payment by the Company.  In lieu thereof, the Company shall have the right to withhold the amount of such taxes from any sums due or to become due from it to Executive.  

Section 7.Expenses.  In the event of any legal action to enforce Executive’s or the Company’s rights under this Agreement, each party will be responsible for that party’s reasonable attorneys’ fees, expenses and disbursements.  

Section 8.Assignment.  This Agreement is binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.  Executive shall not assign or 

 

transfer any rights or obligations hereunder.  The Company shall have the right to assign or transfer any rights or obligations hereunder only to (a) a successor entity in the event of a merger, consolidation, or transfer or sale of all or substantially all the assets of the Company or (b) a subsidiary or affiliate of the Company.  Any purported assignment, other than as provided above, shall be null and void.  

Section 9.Indemnification.  The Company shall indemnify Executive for any act or omission done or not done in performance of Executive’s duties hereunder in accordance with the Company’s certificate of incorporation, by-laws and any other constituent document to the extent provided for any other officer or member of the Board.  The Company’s obligations under this Section 9 shall survive any termination of this Agreement or Executive’s employment hereunder.  

Section 10.Notices.  All notices, requests, consents and other communications required or permitted to be given hereunder, shall be in writing and shall be delivered personally or sent by prepaid telegram, telex, facsimile transmission, overnight courier or mailed, first class, postage prepaid by registered or certified mail, as follows: 

If to the Company:      LM Funding America, Inc., Bruce M. Rodgers, CEO

	
 
	
If to Executive:
	
To Executive’s address as reflected on the payroll records of the Company

or such other address as either party shall designate by notice in writing to the other in accordance herewith.  Any such notice shall be deemed given when so delivered personally, by telex, facsimile transmission or telegram, or if sent by overnight courier, one day after delivery to such courier by the sender or if mailed, five days after deposit by the sender in the U.S. mails.  

Section 11.Entire Agreement.  This Agreement shall constitute the entire agreement between Executive and the Company concerning the subject matter hereof.  This Agreement supersedes and preempts any prior employment agreement or other understandings, agreements or representations by or among the parties, written or oral, that may have related to the subject matter hereof.  No provisions of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing, signed by Executive and an authorized officer of the Company.  

 

Section 12.Governing Law.  This Agreement shall be subject to and governed by the laws of the State of Florida, without giving effect to the principles of conflicts of law under Florida law that would require or permit the application of the laws of a jurisdiction other than the State of Florida and irrespective of the fact that the parties now or at any time may be residents of or engage in activities in a different state.  Employee agrees that in the event of any dispute or claim arising under this Agreement, jurisdiction and venue shall be vested and proper, and Employee hereby consents to the jurisdiction of any court sitting in Tampa, Florida, including the United States District Court for the Middle District of Florida.  

Section 13.Full Settlement.  Executive acknowledges and agrees that, subject to the payment by the Company of the benefits provided in this Agreement to Executive, in no event will the Company nor any subsidiary or affiliate thereof be liable to Executive for damages under any claim of breach of contract as a result of the termination of Executive’s employment.  In the event of any such termination, the Company shall be liable only to provide to Executive, or Executive’s heirs or beneficiaries, the benefits specified in this Agreement.  

Section 14.Strict Compliance.  Executive’s or the Company’s failure to insist upon strict compliance with any provision of this Agreement or the failure to assert any right Executive or the Company may have hereunder shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement.  The waiver, whether express or implied, by either party of a violation of any of the provisions of this Agreement shall not operate or be construed as a waiver of any subsequent violation of any such provision.  

Section 15.Creditor Status.  No benefit or promise hereunder shall be secured by any specific assets of the Company.  Executive shall have only the rights of an unsecured general creditor of the Company in seeking satisfaction of such benefits or promises.  

Section 16.Section 409A.  This Agreement is intended to comply with the requirements of Section 409A of the Code (“Section 409A”), and shall be construed accordingly.  Any payments or distributions to be made to Executive under this Agreement upon a separation from service of amounts classified as “nonqualified deferred compensation” for purposes of Section 409A, shall in no event be made or commence until six months after such separation from service if Executive is determined to be a specified Executive of a public company (all as determined under 

 

Section 409A).  Each payment of nonqualified deferred compensation under this Agreement shall be treated as a separate payment for purposes of Section 409A.  Any reimbursements made pursuant to this Agreement shall be paid as soon as practicable but no later than 90 days after Executive submits evidence of such expenses to the Company (which payment date shall in no event be later than the last day of the calendar incurred).  The amount of such reimbursements paid and any in-kind benefits the year following the calendar year in which the expense was provided during any calendar year shall not affect the reimbursements paid or in-kind benefits provided in any other calendar year, and the right to any such payments and benefits shall not be subject to liquidation or exchange for another payment or benefit.  

Section 17.Cooperation.  Executive agrees to provide assistance to and cooperate with the Company upon its reasonable request with respect to matters within the scope of Executive’s duties and responsibilities during the Restricted Period.  During such Period, the Company shall, to the maximum extent coordinate or cause any such request with Executive’s other commitments and responsibilities to minimize the degree to which such request interferes with such commitments and responsibilities.  The Company agrees that it will reimburse Executive for reasonable documented travel expenses (i.e., travel, meals and lodging) that Executive may incur in providing assistance to the Company hereunder.

Section 18.Non-disparagement.  Executive agrees to not make any statements, written or oral, while employed by the Company and thereafter, which would be reasonably likely to disparage or damage the Company, its affiliates or subsidiaries or the personal or professional reputation of any present or former employees, officers or members of the managing or directorial boards or committees of the Company or its affiliates or subsidiaries.  The Company agrees that it will instruct each of its and its affiliates’ and subsidiaries’ members, directors, managers, officers and employees not to make any disparaging communication regarding Executive, and no such person or entity will be authorized on the Company’s or any affiliate’s or subsidiary’s behalf to make any such disparaging communications regarding Executive.  

Section 19.Recoupment.  Executive agrees to reimburse the Company for all or a portion, as determined below, of any bonus or incentive or equity-based compensation paid or awarded to Executive by the Company, if the Board determines that (a) the payment, award or 

 

vesting thereof was predicated upon the achievement of certain financial results that were subsequently the subject of a material financial restatement, (b) Executive engaged in fraud or misconduct that caused, in whole or in part, the need for the material financial restatement, and (c) a lower payment, award or vesting would have occurred based upon the restated financial results. In such event, Executive agrees to reimburse (in the manner determined by the Board, including cancellation of options or other stock awards) any bonus or incentive or equity-based compensation previously paid, awarded or vested in the amount by which such bonus or incentive or equity-based compensation actually paid, awarded or vested exceeds the lower payment, award or vesting that would have occurred based upon the restated financial result; provided that no reimbursement shall be required if the payment, award or vesting otherwise subject to reimbursement hereunder occurred more than three (3) years prior to the date the applicable reinstatement is disclosed. In addition, notwithstanding anything to the contrary, any bonus or incentive or equity-based compensation, or other compensation, payable to Executive pursuant to this Agreement or any other agreement, plan or arrangement of the Company shall be subject to repayment or recoupment (clawback) by the Company to the extent applicable under Section 304 of the Sarbanes-Oxley Act of 2002 (and not otherwise exempted) and in accordance with such policies and procedures as the Board or the Compensation Committee of the Board may adopt from time to time, including policies and procedures to implement applicable law (including, but not limited to, Section 954 of the Dodd-Frank Act), stock market or exchange rules and regulations or accounting or tax rules and regulations.  

Section 20.Survival.  Any provision of this Agreement that is expressly or by implication intended to survive the termination of this Agreement shall survive or remain in effect after the termination of this Agreement.  

Section 21.Counterparts.  This Agreement may be executed in two or more counterparts, anyone of which need not contain the signature of more than one party, but all such counterparts taken together shall constitute one and the same agreement.  

[Signature Page Follows]

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above.  

LM FUNDING AMERICA, INC.

By: /s/ Bruce M. Rodgers

      Bruce M. Rodgers, Chief Executive Officer

 

EXECUTIVE

/s/ Richard Russell

Richard Russell

 

 

EXHIBIT A
PERMITTED ACTIVITIES

Executive may provide part-time services to Generation Income Properties Inc. 

 

 

 

EXHIBIT B
FORM OF RELEASE 

	
This RELEASE (“Release”) is granted effective as of the [] day of [], 20[] by [
	
•••] (the “Executive”) in favor of [] (the “Company”) and the other Released Parties (as defined below).  This is the Release referred to in the Amended and Restated Employment Agreement, dated as of ___________ ___, 2020 between the Company and the Executive (the “Employment Agreement”).  The Executive gives this Release in consideration of the Company’s promises and covenants contained in the Employment Agreement, with respect to which this Release is an integral part.  

1.Release of the Company.  The Executive, for himself, his successors, assigns, attorneys, and all those entitled to assert his rights, now and forever hereby releases and discharges the Company and its respective officers, directors, stockholders, trustees, Executives, agents, parent corporations, subsidiaries, affiliates, estates, successors, assigns and attorneys (the “Released Parties”), from any and all claims, actions, causes of action, sums of money due, suits, debts, liens, covenants, contracts, obligations, costs, expenses, damages, judgments, agreements, promises, demands, claims for attorney’s fees and costs, or liabilities whatsoever, in law or in equity, which the Executive ever had or now has against the Released Parties, arising by reason of or in any way connected with or which may be traced either directly or indirectly to the employment relationship which existed between the Company or any of its parents, subsidiaries, affiliates, or predecessors and the Executive, or the termination of that relationship, that the Executive has, had or purports to have, from the beginning of time to the date of this Release, whether known or unknown, that now exists, no matter how remotely they may be related to the aforesaid employment relationship including but not limited to claims for employment discrimination under federal or state law, except as provided in Paragraph 2; claims arising under Title VII of the Civil Rights Act, 42 U.S.C. § 2000(e), et seq. or the Americans With Disabilities Act, 42 U.S.C. § 12101, et seq.; claims for statutory or common law wrongful discharge, including any claims arising under the Fair Labor Standards Act, 29 U.S.C. § 201, et seq.; claims for attorney’s fees, expenses and costs; claims for defamation; claims for wages or vacation pay; claims for benefits, including any claims arising under the Executive Retirement Income Security Act, 29 U.S.C. § 1001, et seq.; and provided, however, that nothing herein shall release the Company of its obligations to the Executive under the 

 

Employment Agreement between the Company and the Executive or any other contractual obligations between the Company or its subsidiaries or affiliates and the Executive (including, without limitation, any equity award agreement or indemnification agreement), or any indemnification obligations to the Executive under the Company’s certificate of incorporation, bylaws, operating agreement  or other constituent document or any federal, state or local law or otherwise.  

2.Release of Claims Under Age Discrimination in Employment Act.  Without limiting the generality of the foregoing, the Executive agrees that by executing this Release, he has released and waived any and all claims he has or may have as of the date of this Release for age discrimination under the Age Discrimination in Employment Act, 29 U.S.C. § 621, et seq.  It is understood that the Executive has been advised to consult with an attorney prior to executing this Release; that he in fact has consulted a knowledgeable, competent attorney regarding this Release; that he may, before executing this Release, consider this Release for a period of 21 calendar days; and that the consideration he receives for this Release is in addition to amounts to which he was already entitled.  It is further understood that this Release is not effective until seven calendar days after the execution of this Release and that the Executive may revoke this Release within seven calendar days from the date of execution hereof.  

The Executive agrees that he has carefully read this Release and is signing it voluntarily.  The Executive acknowledges that he has had 21 days from receipt of this Release to review it prior to signing or that, if the Executive is signing this Release prior to the expiration of such 21‐day period, the Executive is waiving his right to review the Release for such full 21‐day period prior to signing it.  The Executive has the right to revoke this release within seven days following the date of its execution by him.  However, if the Executive revokes this Release within such seven-day period, no severance benefit will be payable to him under the Employment Agreement and he shall return to the Company any such payment received prior to that date.  

THE EXECUTIVE HAS CAREFULLY READ THIS RELEASE AND ACKNOWLEDGES THAT IT CONSTITUTES A GENERAL RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS AGAINST THE COMPANY UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT.  THE EXECUTIVE ACKNOWLEDGES THAT HE HAS HAD A FULL 

 

OPPORTUNITY TO CONSULT WITH AN ATTORNEY OR OTHER ADVISOR OF HIS CHOOSING CONCERNING HIS EXECUTION OF THIS RELEASE AND THAT HE IS SIGNING THIS RELEASE VOLUNTARILY AND WITH THE FULL INTENT OF RELEASING THE COMPANY FROM ALL SUCH CLAIMS.  

 

Name of Executive: []

Date:  [•], 20[•]EX-10.1

 Exhibit 10.1 

Abcam plc 
 Long-Term
Incentive Plan (“LTIP”) 
  

					
	Approved by Shareholders:	  	3rd November 2008	  	
			
	Adopted by Company:	  	3rd November 2008	  	
			
	Renewed by Shareholders:	  	8th November 2013	  	
			
	Amended by Company:	  	3rd November 2014	  	
			
	Amended by Company:	  	11th September 2015	  	
			
	Amended by Company:	  	6th November 2018	  	

 Index 
  

							
	1	 	Grant of Awards	  	 	1	 
	2	 	Rights of Participants During the Holding Period	  	 	1	 
	3	 	Release and/or Exercise of Awards	  	 	1	 
	4	 	Lapse of Awards	  	 	3	 
	5	 	Taxation	  	 	3	 
	6	 	Cessation of Employment	  	 	4	 
	7	 	Take-over, Reconstruction, Amalgamation, Winding up, Merger and Demerger of the Company	  	 	5	 
	8	 	Limits & Restrictions	  	 	6	 
	9	 	Adjustments & Amendments	  	 	6	 
	10	 	Shares	  	 	7	 
	11	 	Administration	  	 	8	 
	12    	 	Definitions	  	 	9	 
	SCHEDULE 1	  	 	12	 
	1.	 	DEFINITIONS AND INTERPRETATION	  	 	12	 
	2.	 	CESSATION OF EMPLOYMENT	  	 	12	 
	3.	 	SHARES	  	 	12	 

			
	Abcam plc	  	Abcam plc Long-Term Incentive Plan  

  

	1	 Grant of Awards 

 

	1.1	 The Committee may in its absolute discretion grant Awards to Eligible Employees at any time except during a
Close Period. 

  

	1.2	 The Committee shall determine in respect of each grant of Awards:- 

 

	 	(a)	 the Date of Grant; 

  

	 	(b)	 those Eligible Employees who shall receive an Award; 

 

	 	(c)	 the number of Shares subject to each Award granted; 

 

	 	(d)	 the Holding Period in respect of each Award; 

 

	 	(e)	 whether a Retention Requirement is to apply, and if so, details of the Retention Requirement and the applicable
Retention Period; 

  

	 	(f)	 the Performance Requirements applicable to each Award; and 

 

	 	(g)	 any other terms and conditions applying to each Award including in the case of Awards granted in the form of
Nil Cost Options, the Exercise Price. 

  

	1.3	 The Committee shall issue an Award Certificate to each Participant setting out the Committee’s
determinations under Rule 1.2 in respect of that Participant’s Award. 

  

	2	 Rights of Participants During the Holding Period 

 

	2.1	 A Participant shall have no voting rights or rights to receive dividends in respect of Shares subject to his
Award during the applicable holding period: 

  

	 	(a)	 prior to the Release of the Award in the case of a conditional entitlement to Shares, 

 

	 	(b)	 prior to the Exercise of the Award in the case of a Nil Cost Option. 

 

	3	 Release and/or Exercise of Awards 

 

	3.1	 Subject to Rules 3.2, 3.4, 3.5, 3.6 or 3.7 and 5.31 Awards
shall be Released: 

  

	 	(a)	 at the end of the Holding Period; 

 

	 	(b)	 subject to the terms of any applicable Retention Requirement; 

 

	 	(c)	 subject to the satisfaction of any Performance Requirements or other terms and conditions imposed pursuant to
Rules 1.2(f) and 1.2(g) respectively; and 

  

	 	(d)	 subject to the Participant entering into such election as the Committee requires under Chapter 2 of Part 7 of
the Income Tax (Earnings and Pensions) Act 2003. 

  

	3.2	 Awards may be Released without fully satisfying the requirements of Rule 3.1 in accordance with Rule 62 and Rule 73. 

  

	3.3	 In the case of Awards in the form of Nil Cost Options which have been Released in accordance with Rule 3.1 or
3.2, a Participant may Exercise his Awards from the date of Release to the earliest of the following dates:- 

  

	 	(a)	 the tenth anniversary of the Date of Grant; and 

 

	 	(b)	 the end of the periods set out in Rule 6 and Rule 7. 

 

	3.4	 Notwithstanding any other provision of these Rules, the Committee may reduce or cancel any Award that has not
been Released if: 

  
  

	1 	 Taxation – Release of Shares may be prohibited if the Eligible Employee has not made a Tax Payment or
agreed to sell sufficient Shares to meet this Tax Payment. 

	2 	 On cessation of employment. 

	3 	 On Take-over, Reconstruction, Amalgamation and Winding up of the Company. 

  
  

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	 	(a)	 there has been a material adverse adjustment to the audited consolidated accounts of the Company for any
accounting period ending before the Release of the Award; or 

  

	 	(b)	 there is reasonable evidence of fraud or other gross misconduct and. in relation to any Award granted following
1 July 2015, material dishonesty, material failure of risk management and/or material wrong-doing on the part of or by the Participant. 

  

	3.5	 In relation to any Award made following 1 July 2015, and notwithstanding any other provision of these
Rules, the Committee may at any time prior to the second anniversary of the date on which any Award has been Released: 

  

	 	(a)	 reduce the number of Shares under another Award which has not been Released; 

 

	 	(b)	 cancel another Award which has not been Released; 

 

	 	(c)	 impose further terms or conditions on another Award which has not been Released; 

 

	 	(d)	 reduce or cancel awards made to the Participant following 1 July 2015 under other share incentive plans
operated by the Company; 

  

	 	(e)	 reduce or cancel any bonus or other cash payment due to a Participant; or 

 

	 	(f)	 require a Participant to make a cash payment to, or to the order of, a Group Company 

if:- 
  

	 	(g)	 there has been a material adverse adjustment to the audited consolidated accounts of the Company for any
accounting period; or 

  

	 	(h)	 there is reasonable evidence of fraud or other gross misconduct, material dishonesty, material failure of risk
management and/or material wrong-doing on the part of or by the Participant. 

  

	3.6	 In relation to any Award made following 1 July 2015, the Committee may take any of the actions referred to
in Rules 3.53.5(a) to 3.53.5(f) (inclusive) throughout any such period that a Participant is subject to a work-related criminal investigation. 

  

	3.7	 In relation to any Award made following 1 July 2015, the Committee may decide at any time that an Award
which has not been Released shall be reduced or cancelled to give effect to a clawback provision of any form contained in any other share incentive plan or bonus plan operated by any Group Company. The reduction or cancellation of the Award shall be
in accordance with the terms of the clawback provision in the relevant plan or, in the absence of any such term, on such basis as the Committee considers appropriate. 

 

	3.8	 The Committee shall act in good faith and treat all Participants fairly, reasonably and equitably when taking
any step under any of Rules 3.4, 3.5, 3.6 or 3.7 and shall notify any affected Participant as soon as possible. 

  

	3.9	 The Committee may in its discretion make any alteration or amendment to Rules 3.4, 3.5, 3.6 or 3.7 as is
necessary or desirable to take account of local laws affecting any Group Company or any Participant. 

  
  

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	4	 Lapse of Awards 

 

	4.1	 All subsisting Awards shall lapse on the earliest of the following events:- 

 

	 	(a)	 the date on which the Award lapses pursuant to Rule 64 or
Rule 75; 

  

	 	(b)	 when it has been determined by the Committee that the conditions of Rule 3.1 (c) cannot be satisfied;

  

	 	(c)	 the tenth anniversary of the Date of Grant; or 

 

	 	(d)	 the date on which the Participant is adjudicated bankrupt. 

 

	5	 Taxation 

  

	5.1	 The grant of an Award to an Eligible Employee under the Plan shall be conditional upon the agreement of that
Eligible Employee to indemnify his employing Group Company for any Tax Payment, such agreement to be deemed by the failure of the Eligible Employee to renounce the Award in accordance with Rule 11.5. 

 

	5.2	 The Participant shall pay all expenses and Taxes which arise or result from the grant, Release or Exercise of
an Award, provided that the Company in its absolute discretion and subject to any statutory prohibition may meet any stamp duty or liability for any other Taxes or expenses arising which it deems appropriate. 

 

	5.3	 In a case where a Group Company by virtue of the grant, Release or Exercise of an Award shall be obliged to
make a Tax Payment, the grant, Release or Exercise shall not take place, unless:- 

  

	 	(a)	 the Group Company has received payment prior to the grant, Release or Exercise from the Participant of an
amount not less than the Tax Payment; or 

  

	 	(b)	 authority from the Participant to deduct the Tax Payment from his Emoluments has been received; or

  

	 	(c)	 that Participant giving irrevocable instructions to the Company’s brokers (or any person acceptable to the
Company) for the sale of sufficient Shares on the Release or Exercise to realise an amount equal to the Tax Payment and authority to pay the proceeds of such sale to the employing Group Company. 

 

	5.4	 The Committee may determine that any Award granted under the Plan shall be subject to additional and/or
modified terms and conditions relating to the grant, Release or Exercise of an Award as may be necessary to comply with or take account of any securities, exchange control or taxation laws, regulations, practice or other laws of any territory which
may apply to the relevant Eligible Employee, Participant or Group Company. 

  

	5.5	 In exercising its discretion under Rule 5.4 above the Committee may:- 

 

	 	(a)	 require an Eligible Employee and/or a Participant to make such declarations or take such other action as may be
required for the purpose of any securities, exchange control or taxation laws, regulations, practice or other laws of any territory which may be applicable to him at the Date of Grant, Release or Exercise; and 

 

	 	(b)	 adopt any supplemental rules or procedures governing the grant, Release or Exercise of an Award as may be
required for the purpose of any securities, exchange control or taxation laws, regulations, practice or other laws of any territory which may be applicable to an Eligible Employee or Participant. 

 

	5.6	 The Committee may in its discretion determine whether the Participant shall be liable for the employers’
national insurance contributions payable on the Release or Exercise of an Award. 

  

 

	4 	 On cessation of employment. 

	5 	 On Take-over, Reconstruction, Amalgamation and Winding up of the Company. 

  
  

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	6	 Cessation of Employment 

 

	6.1	 Subject to Rule 6.2, if a Participant ceases to be employed by a Group Company for any reason an Award that has
not been Released shall lapse unless the Committee in its absolute discretion determines otherwise for reasons including, amongst others, injury, disability, ill health, retirement, redundancy and death. 

 

	6.2	 If the Committee, in accordance with its discretion under Rule 6.1, determines that an Award shall not lapse on
cessation, the proportion of the Award which shall be Released (subject to any adjustment pursuant to any of Rules 3.4, 3.5, 3.6 or 3.7) will be calculated based upon the amount of the relevant Holding Period completed on the date of cessation and
on the satisfaction of the Performance Requirements relating to the Award. 

  

	6.3	 For the purposes of calculating the number of Awards which shall be Released in accordance with Rule 6.2 the
Committee shall:- 

  

	 	(a)	 firstly, pro-rate the number of Awards based on the amount of the
relevant Holding Period completed on the date of cessation; and 

  

	 	(b)	 secondly, determine when the Performance Requirements shall be measured and when the Awards are Released, which
shall be either: 

  

	 	6.3.1	 at the date of cessation of employment; or 

 

	 	6.3.2	 the end of the relevant Holding Period. 

 

	6.4	 Where a Participant who ceases to be employed by a Group Company is subject to a Retention Requirement, the
Retention Requirement shall continue to apply after the Participant has ceased to be employed by a Group Company, unless the Committee determines otherwise. 

  

	6.5	 It shall be a condition of participation in the Plan that a Participant shall not be entitled to any
compensation in the event of cessation, lapse or alteration of any actual or prospective rights under the Plan or under any Award granted thereunder. No provisions of the Plan form part of any contract of employment between any Group Company and a
Participant. 

  

	6.6	 Nothing in the Plan or in any document issued pursuant thereto shall confer upon any person any right to
continue in the employ of any Group Company or shall affect the right of any Group Company to terminate the employment of any person, or shall impose upon any Group Company or employees of such Group Company, the Committee or their respective
servants or agents any liability for the loss of any rights under the Plan which may result if that person’s employment is so terminated (whether such termination is in breach of the relevant terms and conditions of employment or otherwise). In
no circumstances shall any Participant, by reason of ceasing to be employed by any Group Company be entitled to any compensation for any loss of any actual or prospective right or benefit under the Plan which he might otherwise have enjoyed, whether
such compensation is claimed by way of damages for wrongful or unfair dismissal or other breach of contract or by way of compensation for loss of office or otherwise. 

 

	6.7	 For the purposes of Rule 6, no Participant shall be treated as ceasing to be employed by a Group Company until
he ceases to hold office or employment in any Group Company. 

  

	6.8	 No benefit under the Plan shall be pensionable. 

 

	6.9	 In the case of Awards granted in the form of Nil Cost Options, the Participant shall have, such period as is
determined by the Committee in its discretion, from his date of cessation of employment to Exercise all Released Awards including those Awards Released as a result of the operation of Rule 6, at the end of which period any Awards that have not been
Exercised shall lapse. 

  
  

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	7	 Take-over, Reconstruction, Amalgamation, Winding up, Merger and Demerger of the Company

  

	7.1	 If any company or person acting alone or in concert with another or others obtains Control of the Company
(“Control Change”), the Committee on becoming aware thereof shall notify each Participant. 

  

	7.2	 If the Court sanctions a scheme of arrangement or compromise under Section 899 of the Companies Act 2006
which amounts to a Control Change, the Committee on becoming aware thereof shall notify each Participant. 

  

	7.3	 If any company or person becomes bound or entitled to acquire Shares under Sections 979 to 982 or 983 to 985 of
the Companies Act 2006, the Committee on becoming aware thereof shall notify each Participant. 

  

	7.4	 Subject to Rule 7.5, on the occurrence of any of the events set out in Rule 7.1, Rule 7.2 and Rule 7.3, a
proportion of the Award shall be Released (subject to any adjustment pursuant to any of the Rules 3.4, 3.5, 3.6 or 3.7) and any Retention Requirement shall cease to apply, unless the Committee determines otherwise. The proportion of the Award which
shall be Released shall be determined by the Committee in its absolute discretion. In exercising its discretion the Committee shall take account of whatever factors it considers appropriate, including the proportionate satisfaction of the relevant
Performance Requirements on such date and the amount of the relevant Holding Period completed. 

  

	7.5	 For the purposes of Rule 7.1, Rule 7.2 and Rule 7.8 a Control Change shall only occur where there is a Control
Change of the ultimate Holding Company of the Company. 

  

	7.6	 If a voluntary winding up of the Company is proposed or if an order is made for the compulsory winding up of
the Company, the Committee, in its absolute discretion, shall notify each Participant. On the occurrence of such event all Awards shall be Released. 

  

	7.7	 If, as a result of events specified in Rule 7.1 or Rule 7.2 above, a company has obtained Control of the
Company or if a company has become bound or entitled as stated in Rule 7.3 above (such company referred to as the “Acquiring Company”), the Participant may, by agreement with the Acquiring Company, cancel each subsisting Award (the
“Old Award”) in exchange for a replacement award (the “New Award”) provided that the New Award:- 

  

	 	(a)	 is over shares in the Acquiring Company or some other company which has Control of the Acquiring Company or is
a member of a consortium owning either the Acquiring Company or having Control of the Acquiring Company; 

  

	 	(b)	 is a right over such number of shares as have an aggregate Market Value equal to those Shares subject to the
Old Award at the date of exchange and is otherwise upon identical terms to the Old Award. 

 The New Award shall for all
purposes of the Plan be treated as having been acquired on the same Date of Grant as the Old Award and thereafter references in these Rules to the Company, Shares and Awards, where appropriate, shall be construed as references to the Acquiring
Company and its shares and New Awards. 
  

	7.8	 In the event that the Company merges with another company, or any of the businesses of the Group are demerged
(whether such merger or demerger is effected by way of sale, distribution or in any other manner) the Committee shall have the discretion whether or not to take any action pursuant to this Rule 7.8 and, if they decide to do so, shall notify each
Participant whether any Award shall be Released and/or adjustments be made to the number of Shares comprised in an Award in such manner and with effect from such date as the Committee shall determine to be appropriate and the advisors of the Company
confirm to be fair and reasonable provided that should the merger or demerger amount to a Control Change then the Committee shall apply the provisions of Rule 7.4. 

  
  

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	7.9	 The Committee shall notify Participants as soon as reasonably practicable of any adjustments made pursuant to
Rule 7.8 and may call in Award Certificates for endorsement or replacement. 

  

	7.10	 In the case of Awards granted in the form of Nil Cost Options, the participants shall have such period as
determined by the Committee in its discretion from the date of the occurrence of any of the events set out in Rules 7.1 to 7.4 (inclusive), Rule 7.7 and Rule 7.8 to Exercise all Nil Cost Options including those Options Released as a result of the
operation of this Rule 7, at the end of which period any Options not exercised shall lapse. 

  

	8	 Limits & Restrictions 

 

	8.1	 An Award shall be personal to a Participant and neither the Award nor any rights under the Award may be
transferred, assigned, pledged, charged or otherwise disposed of by a Participant to any other person (except in accordance with these Rules) and if a Participant shall do, suffer or permit any such act or thing whereby he would or might be deprived
of the legal and/or beneficial ownership of an Award that Award shall lapse forthwith. 

  

	8.2	 In respect of Awards which shall be satisfied by the subscription of Shares, the total number of Shares over
which such Awards may be granted as determined on any Date of Grant, when added to the number of Shares issued or remaining issuable pursuant to rights to subscribe for Shares granted under the Plan and Any Other Share Plan during the preceding 10
years shall not exceed 10% of the number of Shares in issue on the relevant Date of Grant. For the purposes of this Rule 8.2, there shall be ignored Awards to subscribe for Shares:- 

 

	 	(a)	 granted under Any Other Share Plan which were granted prior to the Company’s first listing of Shares on
the Exchange; or 

  

	 	(b)	 granted under the Plan or Any Other Share Plan which have lapsed, become void, been cancelled or which
otherwise become incapable of being Released. 

 For the purposes of this Rule 8.2 where Awards are intended to be
satisfied or are satisfied by the transfer and/or re-issue of Treasury Shares these Shares shall be deemed to count against the limits set out in this Rule. 

 

	8.3	 The maximum level of Award (being the aggregate Market Value of Shares subject to the Award at the date of
grant) that can be granted to an Eligible Employee under this Plan in any financial year shall be limited to 400% of such Eligible Employee’s Emoluments. For the purposes of this Rule 8.3, there shall be ignored Awards granted under the Plan or
awards under Any Other Share Plan which have lapsed, become void, been cancelled or which otherwise become incapable of being Released. 

  

	8.4	 The Plan shall terminate on the earlier of the following dates: 

 

	 	(a)	 any date determined by the Committee to be the date of termination of the Plan; and 

 

	 	(b)	 the fifth anniversary of the Adoption Date or Date of Renewal. 

 

	8.5	 Following termination of the Plan pursuant to this Rule no further Awards shall be granted, but the subsisting
rights and obligations of Participants at that time shall continue in force as if the Plan had not been terminated. 

  

	9	 Adjustments & Amendments 

 

	9.1	 If a variation of the issued share capital of the Company by way of a bonus issue or rights issue, sub-division, consolidation, reduction or otherwise shall take place then the number of Shares subject to an Award and the terms and conditions 

  
  

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applying to such Award shall be adjusted in such manner and with effect from such date as the Committee may determine to be appropriate and as the advisors of the Company shall have confirmed in
writing to be, in their opinion, fair and reasonable. 

  

	9.2	 The Committee shall have the power from time to time to make and amend such regulations for the implementation
and administration of the Plan in a manner consistent with the Plan as it thinks fit including (without limitation) to interpret and apply the Rules so as to give effect to the intention of any Retention Requirement, and to make any amendments to
these Rules. 

  

	9.3	 Without the prior approval of the Company in general meeting, an amendment may not be made for the benefit of
existing or future Participants to the Rules relating to: 

  

	 	(a)	 the basis for determining an Eligible Employee’s entitlement (or otherwise) to be made an Award and/or to
acquire Shares on the exercise of an Nil Cost Option and/or the Release of an Award (as the case may be) under the Plan; 

  

	 	(b)	 the persons to whom an Award may be made; 

 

	 	(c)	 the limit on the aggregate number of Shares over which Awards may be made; 

 

	 	(d)	 the limit on the number of Shares over which Awards may be made to any one Eligible Employee;

  

	 	(e)	 the price at which Shares may be acquired under an Award; 

 

	 	(f)	 this Rule 9.3 

except for: 
  

	 	(g)	 an amendment which is of a minor nature and benefits the administration of the Plan; or 

 

	 	(h)	 an amendment which is of a minor nature and is necessary or desirable in order to take account of a change of
legislation or to obtain or maintain favourable tax, exchange control or regulatory treatment for Participants, the Company or some other Group Company. 

  

	9.4	 No alteration shall be made which would materially affect any subsisting rights of Participants granted prior
to the date of the alteration without the prior consent or sanction of the majority of that number of Participants who responded to the notification by the Company of such proposed alteration except in accordance with Rules 5.4 and 5.5.

  

	9.5	 Any matters pertaining or pursuant to the Plan which are not dealt with by these Rules and any uncertainty or
dispute as to the meaning of these Rules shall be determined or resolved by decision of the Committee which shall be binding on the Company and all Participants. 

 

	9.6	 In the application of Rule 1.2(f), if events subsequently occur which cause the Committee to consider that the
existing Performance Requirements have become unfair or impractical it may, in its discretion (provided such discretion is exercised fairly and reasonably) amend the relevant Performance Requirements so that in the reasonable opinion of the
Committee they shall be no more or less difficult to abide by or satisfy as when they were originally imposed or last amended. 

  

	10	 Shares 

  

	10.1	 Subject to Rule 10.2 below, any Shares to be issued pursuant to the Release or Exercise of an Award shall be
allotted and issued, and any Shares to be transferred shall be transferred to the relevant Participant or a nominee nominated by a Participant not later than 30 days after the date of Release or Exercise of the Award. Such Shares shall rank pari
passu in all respects with other Shares of the same class save that the Participant shall have no entitlement in relation to rights 

  
  

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attaching to the Shares until the date of such allotment or transfer. Shares to be allotted shall not rank for any dividend or other distribution to be paid by reference to a record date before
the date of allotment. 

  

	10.2	 Any allotment and issue or transfer of Shares pursuant to this Plan shall be subject to such consents (if any)
of HM Treasury and/or other authorities as may from time to time be required. 

  

	10.3	 The Company shall apply to the relevant Exchange on which the Shares are listed for Shares issued pursuant to
the Release of Awards to be admitted to trading on such Exchange on or as soon as practicable after allotment. 

  

	10.4	 The Release of Awards may be satisfied by the subscription of Shares by the Trustees of the Trust and/or the
transfer of Shares held by the Trustees of the Trust and/or the issue of Shares and/or the transfer of Treasury Shares by the Company pursuant to section 727 of the Companies Act 2006 or any combination thereof. The Committee may determine which
method or combination thereof shall be used to satisfy the Release or Exercise of Awards. 

  

	10.5	 The Trustees may determine in their discretion to undertake the responsibility of satisfying Awards on behalf
of the Company. 

  

	10.6	 Shares that are issued may not be subscribed for at less than their nominal value. 

 

	10.7	 The Company shall:- 

  

	 	(a)	 when necessary keep available for issue sufficient authorised and unissued Shares to satisfy all rights to
subscribe for Shares from time to time subsisting under Awards granted pursuant to the Plan, taking account of any other obligations of the Company to allot and issue Shares; and/or 

 

	 	(b)	 ensure when necessary that it is in a position to satisfy or procure the satisfaction of all rights to acquire
Shares from time to time subsisting under the Plan, taking account of other obligations of the Company in relation to the provision of Shares. 

  

	11	 Administration 

 

	11.1	 Notices or documents under the Plan required to be given by the Company to an Eligible Employee or a
Participant shall be properly given if delivered to him at his normal place of work or sent to him by first class post at his last known address and any notice or document required to be given to the Company shall be properly given if delivered or
sent by first class post to the registered office of the Company from time to time addressed to the Company Secretary. 

  

	11.2	 Participation in the Plan shall not entitle a Participant to receive copies of any notice or other document
sent by the Company to its shareholders prior to the Release and/or Exercise of the Award. 

  

	11.3	 The Company shall bear the costs of establishing and administering the Plan. 

 

	11.4	 The Company shall maintain or cause to be maintained all necessary accounts and records relating to the Plan.

  

	11.5	 A Participant may at any time prior to the Release and/or Exercise of an Award renounce the Award (in whole or
in part) by serving notice in writing on the Company of such intention. The renunciation shall be effective from the date of receipt of such notice by the Company. 

 

	11.6	 The Rules and the operation of the Plan shall be governed and construed in accordance with English Law.

  
  

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	12	 Definitions 

  

	12.1	 In these Rules the following words and expressions have the following meanings:- 

 

					
		 	“Act”	  	The Corporation Tax Act 2010.
		 	“Adoption Date”	  	3rd November 2008
		 	“Any Other Share Plan”	  	any “employees’ share scheme” (as such term is defined in section 1166 of the Companies Act
2006) (other than this Plan) which provides for the subscription of Shares by or on behalf of employees of the Company, or any associated company (within the meaning of Section 449 of the Act).
		 	“Award”	  	a conditional entitlement to Shares or a Nil Cost Option over Shares.
		 	“Award Certificate”	  	a document evidencing an Award issued by the Company in such form as the Committee may from time to time
prescribe.
		 	“Close Period”	  	such time as Eligible Employees of the Company are prohibited from dealing in Shares, for whatever reason,
in accordance with rule 21 of the Alternative Investment Market Rules or the relevant provision in any regulations governing an Exchange (as replaced, amended or re-enacted from time to time) and/or such code as the Company may have established from
time to time or such other statutory, regulatory or other prohibition from dealing in Shares or rights over Shares.
		 	“Committee”	  	the remuneration committee of the Company.
		 	“Company”	  	Abcam plc (registered number 03509322).
		 	“Control”	  	control within the meaning of Section 1124 of the Act (and “Controlled” shall be construed
accordingly).
		 	“Date of Grant”	  	the date on which an Award is granted under Rule 1.
		 	“Date of Renewal”	  	8th November 2013
		 	“Eligible Employee”	  	any employee of a Group Company with a minimum period of continuous service with a Group Company, such
minimum period to be determined by the Committee in its absolute discretion, or a trustee acting on behalf of such employee.
		 	“Emoluments”	  	base salary or notional base salary provided to an Eligible Employee.
		 	“Exchange”	  	the Alternative Investment Market or any other recognised exchange on which the Company’s Shares are
listed from time to time.
		 	“Group”	  	the Company, any “Subsidiary” of the Company, any “Holding Company” of the Company and
any Subsidiary of any such Holding Company (as such terms are defined in section 1159 of the Companies Act 2006) and the term “Group Company” shall be construed accordingly.
		 	“Exercise”	  	the payment of the Exercise Price and the resulting purchase of the Shares subject to the Released
Award.
		 	“Exercise Price”	  	such value determined by the Committee in its discretion which must be paid by the Participant to acquire
the Shares subject to his Released Award. The Committee may determine an Exercise Price for each Share subject to an Award or a single Exercise Price to Exercise some or all of the Shares subject to an Award.
		 	“Financial Year”	  	the accounting reference period of the Company as defined in section 291 of the Companies Act
2006.

  
  

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		 	“Holding Period”	  	the period set by the Committee in accordance with Rule 1.2(d) which shall be three years from the Date of
Grant of the Award or such other period set by the Committee in its discretion.
		 	“Market Value”	  	on any dealing day means an amount equal to the closing price quoted for a Share on the Exchange.
		 	“Nil Cost Option”	  	a right to purchase a number of Shares subject to the satisfaction of the conditions and the payment of the
Exercise Price.
		 	“Participant”	  	an Eligible Employee who has been granted and still has a subsisting Award. Reference to a Participant shall
include, where the context so admits or requires, his personal representatives.
		 	“Plan”	  	Abcam plc Long-Term Incentive Plan as established by the Rules.
		 	“Performance Requirements”	  	such performance requirements or conditions (if any) as the Committee shall determine which must normally be
satisfied before an Award may be Released.
		 	“Released”	  	shall mean:-
		 	 	  	 •  where an Award
has been granted in the form of a conditional share entitlement the point when the beneficial and legal ownership of the Shares subject to an Award transfer to the Participant; and

		 	 	  	 •  where an Award
has been granted in the form of a Nil Cost Option the point at which the Award can be Exercised.

		 	 	  	“Release” shall be construed accordingly.
		 	“Retention Period”	  	the period or periods of up to three years beginning on the first day immediately after Shares subject to an
Award have been Released, as the Committee may determine
		 	“Retention Requirement”	  	a requirement imposed on a Participant in relation to an Award made following 1 July 2015 to retain a
specified percentage (as determined by the Committee and in accordance with such arrangements as the Committee shall determine) of the Shares subject to an Award which has been Released throughout the Retention Period, subject to the Participant
being permitted to sell such Shares as may be required to satisfy the indemnity in Rule 5.1.
		 	“Rules”	  	these rules and the Schedules as amended from time to time in accordance with the amendment provisions of
these rules.
		 	“Schedule”	  	the schedule to the Rules.
		 	“Shares”	  	ordinary shares in the capital of the Company.
		 	“Tax”	  	includes any present or future tax, levy, impost, duty, charge, fee, deduction or withholding of any nature,
made by any competent authority and interest or penalties in respect thereof.
		 	“Tax Payment”	  	an amount of Tax paid or payable by the Participant or the Group Company where the liability for such Tax is
the Participant’s in respect of the grant or Release or Exercise of an Award.
		 	“Trust”	  	any employee benefit trust which falls within section 86 of the Inheritance Tax Act 1984 and
“Trustees” shall be construed accordingly.

  

	12.2	 Where the context so admits or requires words importing the singular shall include the plural and vice versa
and words importing the masculine shall include the feminine and neuter. 

  
  

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	12.3	 Any reference to a statute or a statutory provision shall be construed as if it referred also to that statute
or provision as the same may from time to time be consolidated, replaced, amended or re-enacted and to any related statutory instrument or other subordinate legislation in force from time to time.

  

	12.4	 Wherever the Rules refer to the Committee having the ability to determine, decide or change matters howsoever
this shall mean that the Committee shall be entitled to do so in its absolute and unfettered discretion and no person shall have any right to challenge, dispute or appeal whatsoever against the Committee’s determination, decision or change
howsoever made. 

  

	12.5	 Headings, notes and footnotes to these Rules are included for convenience only and shall not affect the
interpretation or construction of these Rules. 

  

	12.6	 Reference to a “company” shall be construed so as to include any company, corporation or other body
corporate, wherever and however incorporated or established. 

  

	12.7	 References to a “person” shall be construed so as to include any individual, firm, company,
government, state or agency of a state, local or municipal authority or government body or any joint venture, association or partnership (whether or not having a separate legal personality). 

  
  

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 SCHEDULE 1 

The rules of the Abcam plc Executive Long-Term Incentive Plan (“Plan”) will apply to Awards held by Participants, who are or who may become, subject
to any US tax or social security contributions liability in connection with an Award, except as set out in this Schedule 1. Where there is any conflict between the rules of the Plan and this Schedule 1, the terms of this Schedule 1 will prevail.

  

	1.	 DEFINITIONS AND INTERPRETATION 

 

	 	1.1.	 “Awards” granted in accordance with this Schedule 1 may only be made in the form of
conditional entitlements to Shares and the rules of the Plan, as amended by this Schedule 1, will be construed accordingly; 

  

	2.	 CESSATION OF EMPLOYMENT 

 

	 	2.1.	 The following words will be deleted from rule 6.1: 

“retirement”. 
  

	3.	 SHARES 

  

	 	3.1.	 The first sentence in Rule 10.1 will be deleted and replaced with the following wording: 

“Subject to Rule 10.2 below, any Shares: 
  

	 	3.1.1	 to be issued (including from treasury) pursuant to the Release of an Award, shall be allotted and issued to the
Participant by the later of: 

  

	 	•	 	 15th March following the end of the calendar year in which the date of Release of the Award occurred; and

  

	 	•	 	 the 15th day of the third month in the Financial Year following the Financial Year in which the date of the
Release of the Award occurred. 

  

	 	3.1.2	 to be transferred pursuant to the Release of an Award, shall be transferred to the relevant Participant or a
nominee nominated by a Participant by the later of: 

  

	 	•	 	 31 December in the calendar year in which the date of Release of the Award occurred; and

  

	 	•	 	 the 15th day of the third month in the Financial Year following the Financial Year in which the date of the
Release of the Award occurred. 

  
  

Pg.12

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