SEC Contract Filing

Filing Date: 2023-07-25

Document Content:
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>ea182312ex10-1_shifttech.htm
<DESCRIPTION>TRANSITION AND SEPARATION AGREEMENT, BY AND BETWEEN SHIFT TECHNOLOGIES, INC. AND JEFF CLEMENTZ, DATED JULY 21, 2023
<TEXT>
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<P STYLE="text-align: right; margin: 0"><B>Exhibit 10.1</B></P>

<P STYLE="margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B><U>SHIFT
TECHNOLOGIES, INC.</U></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="font-variant: small-caps"><B><U>TRANSITION
AND SEPARATION AGREEMENT</U></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Transition and Separation
Agreement (the &ldquo;<U>Agreement</U>&rdquo;) is entered into by and between Shift Technologies, Inc., a Delaware corporation (the &ldquo;<U>Company</U>&rdquo;)
and Jeff Clementz (the &ldquo;<U>Employee</U>&rdquo;) (the Company and Employee collectively referred to herein as the &ldquo;<U>Parties</U>&rdquo;)
as of the last date set forth on the signature page hereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">1. <B>Separation
Date</B>. The Parties hereby acknowledge and agree that Employee&rsquo;s employment by the Company terminated effective July 1, 2023 (the
&ldquo;<U>Separation Date</U>&rdquo;). The Separation Date shall be deemed to be the date of separation from service and the date that
employment ends for purposes of that certain Employment Agreement dated September 27, 2021, as amended on February 24, 2022, May 12, 2022
and August 8, 2022 (the &ldquo;<U>Employment Agreement</U>&rdquo;) and any applicable Company plans or programs in which Employee participated
(including, for the avoidance of doubt, the Shift Technologies, Inc. Severance Plan for Key Management Employees (the &ldquo;<U>Severance
Plan</U>&rdquo;)).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Employee further acknowledges
that Employee stepped down as Chief Executive Officer of the Company effective June 9, 2023, and continued in the employ of the Company
in a non-executive capacity through the Separation Date. The Company continued to pay Employee&rsquo;s base salary (at an annual rate
of $530,000) through the Separation Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">2. <B>Accrued
Obligations and Vested Benefits.</B> Employee is entitled to receive the following accrued obligations at his separation from service:
(a) all base salary earned, accrued and owing, but not yet paid, (b) any vacation earned but not yet taken, (c) reimbursement for business
expenses in accordance with Company policy, and (d) any benefits accrued and due in accordance with the terms of any applicable benefit
plans or programs of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">3. <B>Separation
Payments and Benefits</B>. Provided that Employee timely signs and does not timely revoke this Agreement (in accordance with Section 21
and 22 herein), and complies with the terms and conditions of this Agreement, the Company shall provide Employee with the following separation
payments and benefits (less federal, state and local tax withholdings and any other deductions required by law or previously authorized
by Employee), in full satisfaction of all termination obligations the Company may have to Employee under any agreement, plan or arrangement,
including without limitation the Employment Agreement and Severance Plan, (the &ldquo;<U>Separation Benefits</U>&rdquo;):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(a) In
full satisfaction of the provisions of Section 8(c) of the Employment Agreement and the provisions of the Severance Plan:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(i) <U>Lump
Sum Severance Amount</U>. The Company shall pay Employee an amount in cash equal to $400,000 to be paid to Employee in a single lump sum
payment within thirty (30) days following the Effective Date (as defined below);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(ii) <U>2023
Prorated Annual Bonus</U>. Employee shall be eligible for the 2023 annual bonus that would have been payable to him under the Employment
Agreement, prorated based on a fraction (i)&nbsp;the numerator of which is the number of days between January 1, 2023 and the Separation
Date, and (ii) the den