RE:
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Modification of Profits Units Agreement
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1.
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Should you voluntarily resign your position with the Company or otherwise cease to provide services to the Company, except for Termination with or without Cause, death or Disability, or for Good Reason:
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a.
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As set forth in the Grant Agreement your Unvested Profits Units and Vested Profits Units will be forfeited.
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b.
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Your non-competition, non-solicitation of customers and employee’s agreement set forth in Section 4 (a) (ii) of the Grant Agreements (“Non-Compete”) will be reduced from a period of eighteen (18) months, to a
period of twelve (12) months from and after your Termination Date, and
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c.
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All other applicable terms related to your separation from the Company and termination of your employment shall remain the same.
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2.
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If you are terminated by the Company for Cause, all the applicable terms of the Grant Agreements shall remain the same and in full force and effect and you will receive no additional compensation under this
Letter Agreement.
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3.
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If you cease to provide services to the company by reason of death or Disability, the terms of your Grant Agreements will remain in effect.
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4.
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If you are terminated by the Company for any reason except for Cause, then you may elect, one of the following options:
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a.
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Option 1
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i.
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You will be paid twelve (12) months of your base salary upon termination (“Severance Payment”)
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ii.
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All other terms of the Grant Agreements shall remain in effect, provided, your Non-Compete will be for a period of twelve (12) months from your Termination Date, or
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b.
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Option 2
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i.
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You can elect to forgo your Severance Payment in which event, the terms of the Grant Agreements shall remain in effect with the following exceptions:
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1.
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Your Non-Compete will be reduced to a period of six (6) months, and
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2.
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All your Vested and Unvested Profits Units will be forfeited.
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5.
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In the event a Monetization Event, occurs, and if within nine (9) months following a Monetization Event you are terminated for any reason except Cause, Option 1 in paragraph 4 above will apply.
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6.
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Any election under this section must be made in writing to the Company’s Chief Executive Officer within ten (10) days of your Termination Date. If you do not make an election within that time, Option 1 in
paragraph 4 above will apply.
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7.
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You may be required to execute a general release of claims against the Company and SMI in exchange for any payments you receive under this provision.
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Acknowledged and Agreed as of
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this 2 day of February 2021:
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/s/ William Zartler
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William Zartler
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