Document:

indemnificationagmt-pere

  25022134.2   INDEMNIFICATION AGREEMENT   THIS INDEMNIFICATION AGREEMENT (this “Agreement”) is made and entered into this 1st  day of November, 2021, by and between Newtek Business Services Corp., a Maryland corporation (the  “Company”), and the undersigned (“Indemnitee”).     WHEREAS, at the request of the Company, Indemnitee currently serves as a director of the  Company and may, therefore, be subjected to claims, suits or proceedings arising as a result of his service;  and    WHEREAS, as an inducement to Indemnitee to continue to serve as such director, the Company  has agreed to indemnify and to advance expenses and costs incurred by Indemnitee in connection with any  such claims, suits or proceedings, to the fullest extent permitted by law, except as otherwise expressly  provided for herein; and     WHEREAS, the parties by this Agreement desire to set forth their agreement regarding  indemnification and advance of expenses;     NOW, THEREFORE, in consideration of the premises and the covenants contained herein, and of  other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and  intending to be legally bound hereby, the Company and Indemnitee do hereby covenant and agree as  follows:     Section 1. Definitions. For purposes of this Agreement:     (a) “Change of Control” shall mean the occurrence of any of the following events after  the Effective Date of this Agreement:     (i) the sale or other disposition of all or substantially all of the Company’s  assets; or    (ii) the acquisition, whether directly, indirectly, beneficially (within the  meaning of rule 13d-3 of the Securities Exchange Act of 1934, as amended (the “1934  Act”)) or of record, as a result of a merger, consolidation or otherwise, of securities of the  Company representing twenty percent (20%) or more of the aggregate voting power of  the Company’s then-outstanding common stock by any “person” (within the meaning of  Sections 13(d) and 14(d) of the 1934 Act), including, but not limited to, any corporation  or group of persons acting in concert, other than (i) the Company or its subsidiaries  and/or (ii) any employee pension benefit plan (within the meaning of Section 3(2) of the  Employee Retirement Income Security Act of 1974) of the Company or its subsidiaries,  including a trust established pursuant to any such plan; or    (iii) the individuals who were members of the Board of Directors as of the  Effective Date (the “Incumbent Board”) cease to constitute at least two-thirds (2/3) of  the Board; provided, however, that any director appointed by at least two-thirds (2/3) of  the then Incumbent Board or nominated by at least two-thirds (2/3) of the Nominating  and Corporate Governance Committee of the Board of Directors (a majority of the  members of the Nominating and Corporate Governance Committee shall be members of  the then Incumbent Board or appointees thereof), other than any director appointed or  nominated in connection with, or as a result of, a threatened or actual proxy or control  contest, shall be deemed to constitute a member of the Incumbent Board.    (b) “Corporate Status” means the status of a person who is or was a director, trustee,  officer, employee or agent of the Company or of any other corporation, partnership, joint venture,  trust, employee benefit plan or other enterprise for which such person is or was serving at the  request of the Company.   DocuSign Envelope ID: CB66F031-3001-4765-83E6-FBD35760B752 

 

  25022134.2    (c) “Disinterested Director” means a director of the Company who is not and was not a  party to the Proceeding in respect of which indemnification is sought by Indemnitee.     (d) “Effective Date” means the date set forth in the first paragraph of this Agreement.     (e) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs,  transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and  binding costs, telephone charges, postage, delivery service fees, and all other disbursements or  expenses of the types customarily incurred in connection with prosecuting, defending, preparing to  prosecute or defend, investigating, or being or preparing to be a witness in a Proceeding.     (f) “Independent Counsel” means a law firm, or a member of a law firm, that is  experienced in matters of corporation law and neither is, nor in the past five years has been,  retained to represent: (i) the Company or Indemnitee in any matter material to either such party, or  (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder.  Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who,  under the applicable standards of professional conduct then prevailing, would have a conflict of  interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s  rights under this Agreement.  If a Change of Control has not occurred, Independent Counsel shall  be selected by the Board of Directors, with the approval of Indemnitee, which approval will not be  unreasonably withheld. If a Change of Control has occurred, Independent Counsel shall be  selected by Indemnitee, with the approval of the Board of Directors, which approval will not be  unreasonably withheld.     (g) “Proceeding” includes any threatened, pending or completed action, suit, arbitration,  alternate dispute resolution mechanism, investigation, administrative hearing or any other  proceeding, whether civil, criminal, administrative or investigative (including on appeal), except  one (i) initiated by an Indemnitee pursuant to Section 11 of this Agreement to enforce his rights  under this Agreement or (ii) pending or completed on or before the Effective Date, unless  otherwise specifically agreed in writing by the Company and Indemnitee.     Section 2. Services by Indemnitee. Indemnitee will serve as a director of the Company. However, this  Agreement shall not impose any obligation on Indemnitee or the Company to continue Indemnitee’s  service to the Company beyond any period otherwise required by law or by other agreements or  commitments of the parties, if any.     Section 3. Indemnification — General. The Company shall indemnify, and advance Expenses to,  Indemnitee (a) as provided in this Agreement and (b) otherwise to the fullest extent permitted by Maryland  law in effect on the date hereof and as amended from time to time; provided, however, that no change in  Maryland law shall have the effect of reducing the benefits available to Indemnitee hereunder based on  Maryland law as in effect on the date hereof. The rights of Indemnitee provided in this Section 3 shall  include, without limitation, the rights set forth in the other sections of this Agreement, including any  additional indemnification permitted by Section 2-418(g) of the Maryland General Corporation Law  (“MGCL”). Notwithstanding anything to the contrary in this Section 3 or any other section of this  Agreement, for so long as the Company is subject to the Investment Company Act of 1940 and the  regulations promulgated thereunder (the “Investment Company Act”), the Company shall not indemnify or  advance Expenses to Indemnitee to the extent such indemnification or advance would violate the  Investment Company Act.     Section 4. Proceedings Other Than Proceedings by or in the Right of the Company. Indemnitee shall  be entitled to the rights of indemnification provided in this Section 4 if, by reason of his Corporate Status,  he is, or is threatened to be, made a party to or a witness in any threatened, pending, or completed  Proceeding, other than a Proceeding by or in the right of the Company. Pursuant to this Section 4,  Indemnitee shall be indemnified against all judgments, penalties, fines and amounts paid in settlement and  all Expenses actually and reasonably incurred by him or on his behalf in connection with a Proceeding by  DocuSign Envelope ID: CB66F031-3001-4765-83E6-FBD35760B752 

 

  25022134.2  reason of his Corporate Status unless it is established that (i) the act or omission of Indemnitee was material  to the matter giving rise to the Proceeding and (a) was committed in bad faith or (b) was the result of active  and deliberate dishonesty, (ii) Indemnitee actually received an improper personal benefit in money,  property or services, or (iii) in the case of any criminal Proceeding, Indemnitee had reasonable cause to  believe that his conduct was unlawful.     Section 5. Proceedings by or in the Right of the Company. Indemnitee shall be entitled to the rights of  indemnification provided in this Section 5 if, by reason of his Corporate Status, he is, or is threatened to be,  made a party to or a witness in any threatened, pending or completed Proceeding brought by or in the right  of the Company to procure a judgment in its favor. Pursuant to this Section 5, Indemnitee shall be  indemnified against all amounts paid in settlement and all Expenses actually and reasonably incurred by  him or on his behalf in connection with such Proceeding unless it is established that (i) the act or omission  of Indemnitee was material to the matter giving rise to such a Proceeding and (a) was committed in bad  faith or (b) was the result of active and deliberate dishonesty or (ii) Indemnitee actually received an  improper personal benefit in money, property or services.     Section 6. Court-Ordered Indemnification. Notwithstanding any other provision of this Agreement, a  court of appropriate jurisdiction, upon application of Indemnitee and such notice as the court shall require,  may order indemnification in the following circumstances:     (a)  if it determines Indemnitee is entitled to reimbursement under Section 2-418(d)(1) of  the MGCL, the court shall order indemnification, in which case Indemnitee shall be entitled to  recover the expenses of securing such reimbursement; or     (b)  if it determines that Indemnitee is fairly and reasonably entitled to indemnification in  view of all the relevant circumstances, whether or not Indemnitee (i) has met the standards of  conduct set forth in Section 2-418(b) of the MGCL or (ii) has been adjudged liable for receipt of  an improper personal benefit under Section 2-418(c) of the MGCL, the court may order such  indemnification as the court shall deem proper.  However, indemnification with respect to any  Proceeding by or in the right of the Company or in which liability shall have been adjudged in the  circumstances described in Section 2-418(c) of the MGCL shall be limited to Expenses.     Section 7. Indemnification for Expenses of a Party Who is Wholly or Partly Successful.  Notwithstanding any other provision of this Agreement, and without limiting any such provision, to the  extent that Indemnitee is, by reason of his Corporate Status, made a party to and is successful, on the merits  or otherwise, in the defense of any Proceeding, he shall be indemnified for all Expenses actually and  reasonably incurred by him or on his behalf in connection therewith.  If Indemnitee is not wholly successful  in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims,  issues or matters in such Proceeding, the Company shall indemnify Indemnitee under this Section 7 for all  Expenses actually and reasonably incurred by him or on his behalf in connection with each successfully  resolved claim, issue or matter, allocated on a reasonable and proportionate basis.  For purposes of this  Section and without limitation, the termination of any claim, issue or matter in such a Proceeding by  dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or  matter.     Section 8. Advance of Expenses. The Company shall advance all reasonable Expenses incurred by or on  behalf of Indemnitee in connection with any Proceeding to which Indemnitee is, or is threatened to be,  made a party or a witness, within ten days after the receipt by the Company of a statement or statements  from Indemnitee requesting such advance or advances from time to time, whether prior to or after final  disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses  incurred by Indemnitee and shall include or be preceded or accompanied by a written affirmation by  Indemnitee of Indemnitee’s good faith belief that the standard of conduct necessary for indemnification by  the Company as authorized by law and by this Agreement has been met and a written undertaking by or on  behalf of Indemnitee, in substantially the form attached hereto as Exhibit A or in such form as may be  required under applicable law as in effect at the time of the execution thereof, to reimburse the portion of  any Expenses advanced to Indemnitee relating to claims, issues or matters in the Proceeding as to which it  DocuSign Envelope ID: CB66F031-3001-4765-83E6-FBD35760B752 

 

  25022134.2  shall ultimately be established that the standard of conduct has not been met and which have not been  successfully resolved as described in Section 7. For so long as the Company is subject to the Investment  Company Act, any advancement of Expenses shall be subject to at least one of the following as a condition  of the advancement: (a) Indemnitee shall provide a security for his or her undertaking, (b) the Company  shall be insured against losses arising by reason of any lawful advances or (c) a majority of a quorum of the  Disinterested Directors of the Company, or Independent Counsel in a written opinion, shall determine,  based on a review of readily available facts (as opposed to a full-trial-type inquiry), that there is reason to  believe that Indemnitee ultimately will be found entitled to indemnification .  To the extent that Expenses  advanced to Indemnitee do not relate to a specific claim, issue or matter in the Proceeding, such Expenses  shall be allocated on a reasonable and proportionate basis.  The undertaking required by this Section 8 shall  be an unlimited general obligation by or on behalf of Indemnitee and shall be accepted without reference to  Indemnitee’s financial ability to repay such advanced Expenses and without any requirement to post  security therefor.     Section 9. Procedure for Determination of Entitlement to Indemnification.  (a)  To obtain  indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including  therein or therewith such documentation and information as is reasonably available to Indemnitee and is  reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification.   The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise  the Board of Directors in writing that Indemnitee has requested indemnification. (b)  Upon written request  by Indemnitee for indemnification pursuant to the first sentence of Section 9(a) hereof, a determination, if  required by applicable law, with respect to Indemnitee’s entitlement thereto shall promptly be made in the  specific case: (i) if a Change of Control shall have occurred, by Independent Counsel in a written opinion to  the Board of Directors, a copy of which shall be delivered to Indemnitee; or (ii) if a Change of Control shall  not have occurred, (A) by the Board of Directors (or a duly authorized committee thereof) by a majority  vote of a quorum consisting of Disinterested Directors, or (B) if a quorum of the Board of Directors  consisting of Disinterested Directors is not obtainable or, even if obtainable, such quorum of Disinterested  Directors so directs, by Independent Counsel in a written opinion to the Board of Directors, a copy of  which shall be delivered to Indemnitee, or (C) if so directed by a majority of the members of the Board of  Directors, by the stockholders of the Company; and, if it is so determined that Indemnitee is entitled to  indemnification, payment to Indemnitee shall be made within ten days after such determination. Indemnitee  shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s  entitlement to indemnification, including providing to such person, persons or entity upon reasonable  advance request any documentation or information which is not privileged or otherwise protected from  disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination.   Any costs or Expenses incurred by Indemnitee in so cooperating with the person, persons or entity making  such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s  entitlement to indemnification) and the Company shall indemnify and hold Indemnitee harmless therefrom.     Section 10. Presumptions and Effect of Certain Proceedings.  (a)  In making a determination with  respect to entitlement to indemnification hereunder, the person or persons or entity making such  determination shall presume that Indemnitee is entitled to indemnification under this Agreement if  Indemnitee has submitted a request for indemnification in accordance with Section 9(a) of this Agreement,  and the Company shall have the burden of proof to overcome that presumption in connection with the  making of any determination contrary to that presumption.  (b)  The termination of any Proceeding by  judgment, order, settlement, conviction, a plea of nolo contendere or its equivalent, or an entry of an order  of probation prior to judgment, does not create a presumption that Indemnitee did not meet the requisite  standard of conduct described herein for indemnification.     Section 11. Remedies of Indemnitee.  (a)  If (i) a determination is made pursuant to Section 9 of this  Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advance of  Expenses is not timely made pursuant to Section 8 of this Agreement, (iii) no determination of entitlement  to indemnification shall have been made pursuant to Section 9(b) of this Agreement within 30 days after  receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made  pursuant to Section 7 of this Agreement within ten days after receipt by the Company of a written request  therefor, or (v) payment of indemnification is not made within ten days after a determination has been  DocuSign Envelope ID: CB66F031-3001-4765-83E6-FBD35760B752 

 

  25022134.2  made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication in an  appropriate court of the State of Maryland, or in any other court of competent jurisdiction, of his  entitlement to such indemnification or advance of Expenses.  Alternatively, Indemnitee, at his option, may  seek an award in arbitration to be conducted by a single arbitrator pursuant to the commercial Arbitration  Rules of the American Arbitration Association.  Indemnitee shall commence such proceeding seeking an  adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the  right to commence such proceeding pursuant to this Section 11(a); provided, however, that the foregoing  clause shall not apply to a proceeding brought by Indemnitee to enforce his rights under Section 7 of this  Agreement.  (b)  In any judicial proceeding or arbitration commenced pursuant to this Section 11 the  Company shall have the burden of proving that Indemnitee is not entitled to indemnification or advance of  Expenses, as the case may be. (c)  If a determination shall have been made pursuant to Section 9(b) of this  Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such  determination in any judicial proceeding or arbitration commenced pursuant to this Section 11, absent a  misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make  Indemnitee’s statement not materially misleading, in connection with the request for indemnification.   (d)  In the event that Indemnitee, pursuant to this Section 11, seeks a judicial adjudication of or an award in  arbitration to enforce his rights under, or to recover damages for breach of, this Agreement, Indemnitee  shall be entitled to recover from the Company, and shall be indemnified by the Company for, any and all  Expenses actually and reasonably incurred by him in such judicial adjudication or arbitration. If it shall be  determined in such judicial adjudication or arbitration that Indemnitee is entitled to receive part but not all  of the indemnification or advance of Expenses sought, the Expenses incurred by Indemnitee in connection  with such judicial adjudication or arbitration shall be appropriately prorated.    Section 12. Defense of the Underlying Proceeding. (a)  Indemnitee shall notify the Company promptly  upon being served with or receiving any summons, citation, subpoena, complaint, indictment, information,  notice, request or other document relating to any Proceeding which may result in the right to  indemnification or the advance of Expenses hereunder; provided, however, that the failure to give any such  notice shall not disqualify Indemnitee from the right, or otherwise affect in any manner any right of  Indemnitee, to indemnification or the advance of Expenses under this Agreement unless the Company’s  ability to defend in such Proceeding or to obtain proceeds under any insurance policy is materially and  adversely prejudiced thereby, and then only to the extent the Company is thereby actually so prejudiced. (b)   Subject to the provisions of the last sentence of this Section 12(b) and of Section 12(c) below, the Company  shall have the right to defend Indemnitee in any Proceeding which may give rise to indemnification  hereunder; provided, however, that the Company shall notify Indemnitee of any such decision to defend  within 15 calendar days following receipt of notice of any such Proceeding under Section 12(a) above.  The  Company shall not, without the prior written consent of Indemnitee, which shall not be unreasonably  withheld or delayed, consent to the entry of any judgment against Indemnitee or enter into any settlement  or compromise which (i) includes an admission of fault of Indemnitee or (ii) does not include, as an  unconditional term thereof, the full release of Indemnitee from all liability in respect of such Proceeding,  which release shall be in form and substance reasonably satisfactory to Indemnitee.  This Section 12(b)  shall not apply to a Proceeding brought by Indemnitee under Section 11 above or Section 18 below. (c)   Notwithstanding the provisions of Section 12(b) above, if in a Proceeding to which Indemnitee is a party by  reason of Indemnitee’s Corporate Status, (i) Indemnitee reasonably concludes, based upon an opinion of  counsel approved by the Company, which approval shall not be unreasonably withheld, that he may have  separate defenses or counterclaims to assert with respect to any issue which may not be consistent with  other defendants in such Proceeding, (ii) Indemnitee reasonably concludes, based upon an opinion of  counsel approved by the Company, which approval shall not be unreasonably withheld, that an actual or  apparent conflict of interest or potential conflict of interest exists between Indemnitee and the Company, or  (iii) if the Company fails to assume the defense of such Proceeding in a timely manner, Indemnitee shall be  entitled to be represented by separate legal counsel of Indemnitee’s choice, subject to the prior approval of  the Company, which shall not be unreasonably withheld, at the expense of the Company.  In addition, if the  Company fails to comply with any of its obligations under this Agreement or in the event that the Company  or any other person takes any action to declare this Agreement void or unenforceable, or institutes any  Proceeding to deny or to recover from Indemnitee the benefits intended to be provided to Indemnitee  hereunder, Indemnitee shall have the right to retain counsel of Indemnitee’s choice, subject to the prior  DocuSign Envelope ID: CB66F031-3001-4765-83E6-FBD35760B752 

 

  25022134.2  approval of the Company, which shall not be unreasonably withheld, at the expense of the Company  (subject to Section 11(d)), to represent Indemnitee in connection with any such matter.    Section 13. Non-Exclusivity; Survival of Rights; Subrogation; Insurance; Investment Company Act.   (a)  The rights of indemnification and advance of Expenses as provided by this Agreement shall not be  deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law,  the Articles of Amendment and Restatement of the Company (as amended from time to time, the  “Charter”) or the Amended and Restated Bylaws of the Company (as amended from time to time, the  “Bylaws”), any agreement or a resolution of the stockholders entitled to vote generally in the election of  directors or of the Board of Directors, or otherwise.  No amendment, alteration or repeal of this Agreement  or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of  any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration  or repeal. (b)  In the event of any payment under this Agreement, the Company shall be subrogated to the  extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required  and take all action necessary to secure such rights, including execution of such documents as are necessary  to enable the Company to bring suit to enforce such rights.   (c)  The Company shall not be liable under this Agreement to make any payment of amounts otherwise  indemnifiable or payable or reimbursable as expenses hereunder if and to the extent that (i) Indemnitee has  otherwise actually received such payment under any insurance policy, contract, agreement or otherwise, or  (ii) for so long as the Company is subject to the Investment Company Act, indemnification or payment or  reimbursement of expenses would not be permissible under the Investment Company Act.     Section 14. Insurance. The Company will use its reasonable best efforts to acquire directors and officers  liability insurance, on terms and conditions deemed appropriate by the Board of Directors of the Company,  with the advice of counsel, covering Indemnitee or any claim made against Indemnitee for service as a  director or officer of the Company and covering the Company for any indemnification or advance of  Expenses made by the Company to Indemnitee for any claims made against Indemnitee for service as a  director or officer of the Company.  Without in any way limiting any other obligation under this  Agreement, the Company shall indemnify Indemnitee for any payment by Indemnitee arising out of the  amount of any deductible or retention and the amount of any excess of the aggregate of all judgments,  penalties, fines, settlements and reasonable Expenses incurred by Indemnitee in connection with a  Proceeding over the coverage of any insurance referred to in the previous sentence.     Section 15. Indemnification for Expenses of a Witness.  Notwithstanding any other provision of this  Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding,  whether instituted by the Company or any other party, and to which Indemnitee is not a party, he shall be  advanced all reasonable Expenses and indemnified against all Expenses actually and reasonably incurred  by him or on his behalf in connection therewith.     Section 16. Duration of Agreement; Binding Effect.  (a)  This Agreement shall continue until and  terminate ten years after the date that Indemnitee’s Corporate Status shall have ceased; provided, that the  rights of Indemnitee hereunder shall continue until the final termination of any Proceeding then pending in  respect of which Indemnitee is granted rights of indemnification or advance of Expenses hereunder and of  any proceeding commenced by Indemnitee pursuant to Section 11 of this Agreement relating thereto.   (b)  The indemnification and advance of Expenses provided by, or granted pursuant to, this Agreement  shall be binding upon and be enforceable by the parties hereto and their respective successors and assigns  (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or  substantially all of the business or assets of the Company), shall continue as to an Indemnitee who has  ceased to be a director, trustee, officer, employee or agent of the Company or of any other corporation,  partnership, joint venture, trust, employee benefit plan or other enterprise which such person is or was  serving at the written request of the Company, and shall inure to the benefit of Indemnitee and his spouse,  assigns, heirs, devisees, executors and administrators and other legal representatives. (c)  The Company  shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or  otherwise) to all, substantially all or a substantial part, of the business and/or assets of the Company, by  written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to  DocuSign Envelope ID: CB66F031-3001-4765-83E6-FBD35760B752 

 

  25022134.2  perform this Agreement in the same manner and to the same extent that the Company would be required to  perform if no such succession had taken place.     Section 17. Severability.  If any provision or provisions of this Agreement shall be held to be invalid,  illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the  remaining provisions of this Agreement (including, without limitation, each portion of any section of this  Agreement containing any such provision held to be invalid, illegal or unenforceable that is not itself  invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; and (b) to the fullest  extent possible, the provisions of this Agreement (including, without limitation, each portion of any section  of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not  itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested  thereby.     Section 18. Exception to Right of Indemnification or Advance of Expenses.  Notwithstanding any other  provision of this Agreement, Indemnitee shall not be entitled to indemnification or advance of Expenses  under this Agreement with respect to any Proceeding brought by Indemnitee, unless (a) the Proceeding is  brought to enforce indemnification under this Agreement or otherwise or (b) the Company’s Bylaws, the  Charter, a resolution of the stockholders entitled to vote generally in the election of directors or of the  Board of Directors or an agreement approved by the Board of Directors to which the Company is a party  expressly provide otherwise.  In addition, notwithstanding any other provision of this Agreement,  Indemnitee shall not be entitled to indemnification or advance of Expenses under this Agreement to the  extent such indemnification or advance of Expenses would conflict with any provision of the Company’s  Bylaws or the Charter, in each case without giving effect to the non-exclusivity provision set forth in  Section 7.8 of the Charter; provided, that foregoing restriction not apply and shall be of no force or effect if  and to the extent the Company’s common stock is qualified as a “covered security,” as such term is defined  in Section 18 of the Securities Act of 1933, as amended.    Section 19. Identical Counterparts.  This Agreement may be executed in one or more counterparts, each  of which shall for all purposes be deemed to be an original but all of which together shall constitute one  and the same Agreement.  One such counterpart signed by the party against whom enforceability is sought  shall be sufficient to evidence the existence of this Agreement.     Section 20. Headings.  The headings of the paragraphs of this Agreement are inserted for convenience  only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.     Section 21. Modification and Waiver. No supplement, modification or amendment of this Agreement  shall be binding unless executed in writing by both of the parties hereto.  No waiver of any of the  provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof  (whether or not similar) nor shall such waiver constitute a continuing waiver.     Section 22. Notices.  All notices, requests, demands and other communications hereunder shall be in  writing and shall be deemed to have been duly given if (i) delivered by hand and receipted for by the party  to whom said notice or other communication shall have been directed, or (ii) mailed by certified or  registered mail with postage prepaid, on the third business day after the date on which it is so mailed:     (a) If to Indemnitee, to: the address set forth on the signature page hereto.     (b) If to the Company, to:     Newtek Business Services Corp.   1981 Marcus Avenue, Suite 130  Lake Success,| NY 11042  Att: Chief Legal Officer    or to such other address as may have been furnished to Indemnitee by the Company or to the Company by  Indemnitee, as the case may be.   DocuSign Envelope ID: CB66F031-3001-4765-83E6-FBD35760B752 

 

  25022134.2    Section 23. Governing Law. The parties agree that this Agreement shall be governed by, and construed  and enforced in accordance with (i) the laws of the State of Maryland applicable to contracts formed and to  be performed entirely within the State of Maryland, without regard to its conflicts of laws rules, to the  extent such rules would require or permit the application of the laws of another jurisdiction, and (ii) the  Investment Company Act.  To the extent the applicable laws of the State of Maryland or any applicable  provision of this Agreement shall conflict with the applicable provisions of the Investment Company Act,  the latter shall control.     Section 24. Miscellaneous.  Use of the masculine pronoun shall be deemed to include usage of the  feminine pronoun where appropriate.     [SIGNATURE PAGE FOLLOWS] DocuSign Envelope ID: CB66F031-3001-4765-83E6-FBD35760B752 

 

  25022134.2  IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year  first above written.                        NEWTEK BUSINESS SERVICES  CORP.                                          By:          Name: Barry Sloane          Title: Chief Executive Officer                                      INDEMNITEE                                                           Name: Fernando Perez-Hickman          Title:  Director                  DocuSign Envelope ID: CB66F031-3001-4765-83E6-FBD35760B752 

 

  25022134.2  EXHIBIT A    FORM OF UNDERTAKING TO REPAY EXPENSES ADVANCED      The Board of Directors of Newtek Business Services Corp.    Re: Undertaking to Repay Expenses Advanced     Ladies and Gentlemen:     This undertaking is being provided pursuant to that certain Indemnification Agreement (the  “Indemnification Agreement”) dated the ___day of _______________, 2014, by and between Newtek  Business Services Corp. (the “Company”) and the undersigned Indemnitee (“Indemnitee”), pursuant to  which I am entitled to advance of expenses in connection with [Description of Proceeding] (the  “Proceeding”).     Terms used herein and not otherwise defined shall have the meanings specified in the  Indemnification Agreement.     I am subject to the Proceeding by reason of my Corporate Status or by reason of alleged actions or  omissions by me in such capacity. I hereby affirm that at all times, insofar as I was involved as director of  the Company, in any of the facts or events giving rise to the Proceeding, I (1) acted in good faith and  honestly, (2) did not receive any improper personal benefit in money, property or services and (3) in the  case of any criminal proceeding, had no reasonable cause to believe that any act or omission by me was  unlawful.     In consideration of the advance of Expenses by the Company for reasonable attorneys’ fees and  related expenses incurred by me in connection with the Proceeding (the “Advanced Expenses”), I hereby  agree that if, in connection with the Proceeding, it is established that (1) an act or omission by me was  material to the matter giving rise to the Proceeding and (a) was committed in bad faith or (b) was the result  of active and deliberate dishonesty or (2) I actually received an improper personal benefit in money,  property or services or (3) in the case of any criminal proceeding, I had reasonable cause to believe that the  act or omission was unlawful, then I shall promptly reimburse the portion of the Advanced Expenses  relating to the claims, issues or matters in the Proceeding as to which the foregoing findings have been  established and which have not been successfully resolved as described in Section 7 of the Indemnification  Agreement. To the extent that Advanced Expenses do not relate to a specific claim, issue or matter in the  Proceeding, I agree that such Expenses shall be allocated on a reasonable and proportionate basis.     IN WITNESS WHEREOF, I have executed this Affirmation and Undertaking on this ___day of  ______________, 2014.              WITNESS:                              (SEAL)       DocuSign Envelope ID: CB66F031-3001-4765-83E6-FBD35760B752Exhibit 10.1
EXECUTIVE EMPLOYMENT AGREEMENT
This EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) is made effective as of November 29, 2021 (the “Effective Date”), by and between OneSpan North America, Inc. (the “Company”), and Matthew Moynahan (“Executive”).
WHEREAS, the Company desires to employ the Executive, and Executive desires to be employed by the Company, as the Company’s President and Chief Executive Officer, on the terms set forth in this Agreement.
NOW, THEREFORE, in consideration of the mutual undertakings of the parties hereto, the Company and Executive agree as follows:
ARTICLE 1
EMPLOYMENT SERVICES
1.1 Term of Employment.  The term of Executive’s employment under this Agreement shall commence on the Effective Date and continue until the first anniversary of such date (the “Initial Term”), which shall automatically renew on the first and each following anniversary of the Effective Date for successive one (1) year terms (each, a “Successive Term”) (the Initial Term, together with all Successive Terms, if any, are collectively referred to herein as the “Employment Period”), unless either party provides the other party with written notice at least two (2) months prior to the expiration of the Initial Term, or any Successive Term, of its or his intent not to renew the Initial Term, or any Successive Term, respectively. The Employment Period may be terminated earlier pursuant to the terms of Article 3 below.
1.2 Position and Duties.  On the terms and subject to the conditions set forth in this Agreement, commencing on the Effective Date and thereafter during the Employment Period, Executive shall hold the position of President and Chief Executive Officer and shall report to the Board of Directors (the “Board”). Executive shall perform those duties and responsibilities as are customarily performed by an executive in such position and such other duties and responsibilities consistent with Executive’s position that may be reasonably assigned to Executive by the Board from time to time.  Executive shall devote Executive’s full business time, attention, skill and energy to the business and affairs of the Company and shall use Executive’s reasonable best efforts to perform such responsibilities in a diligent, loyal, and businesslike manner so as to advance the best interests of the Company.  Executive shall act in conformity with the Company’s Code of Conduct and Ethics (or similar successor document) as in effect from time to time (the “Code of Conduct”) and the Company’s policies, and within the limits, budgets and business plans set by the Company, and shall adhere to all rules and regulations in effect from time to time relating to the conduct of executives of the Company.
1.3 Other Activities.  Notwithstanding Section 1.2, Executive shall be permitted to devote a reasonable amount of time and effort to professional, industry, civic and charitable organizations and managing personal investments; but only to the extent that such activities, individually or as a whole, do not materially interfere with the execution of Executive’s duties hereunder, or otherwise violate any provision of this Agreement.  Executive shall not become involved in the management
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of any for-profit corporation, partnership or other for-profit entity, including serving on the board of directors (or similar governing body) of any such entity, without the prior consent of the Board; provided, however, that this restriction shall not apply to any affiliate of the Company.  Executive will serve without additional compensation as an officer and director of any of the Company’s affiliates, if needed. Any compensation or other remuneration received from such service may be offset against the amounts due hereunder.
1.4 Location.  The Executive shall maintain a home office and an office at the Company’s headquarters in Chicago, Illinois. Executive will travel as reasonably necessary to perform his duties under this Agreement, which may include significant travel, including internationally.
ARTICLE 2
COMPENSATION
2.1 Base Salary.  The Company shall pay Executive base salary (“Base Salary”) at an annual rate of $500,000 (five hundred thousand dollars), payable in accordance with payroll practices in effect for executives of the Company generally.  Base Salary shall be subject to review in accordance with the Company’s normal practice for executive salary review from time to time in effect, and may be increased, but will not be reduced without the prior written consent of Executive except for a reduction that is commensurate with and part of a general salary reduction program applicable to all senior executives of the Company.
2.2 Annual Incentive Compensation.  During the Employment Period, Executive shall participate in the Company’s Executive Incentive Plan and any successor thereto (the “Annual Bonus Plan”) in accordance with the terms and conditions thereof as established by the Board (or the compensation committee thereof).  For 2022 and beyond, the Executive shall be provided a target annual bonus equal to $500,000 under the Annual Bonus Plan, with greater amounts attainable for overachievement.
2.3 Long-Term Incentive Compensation. During the Employment Period, Executive shall participate in the Company’s Equity Incentive Plan and any successor thereto (the “Long-Term Incentive Plan”) in accordance with the terms and conditions thereof. For 2022, Executive shall receive a Long-Term Incentive Plan equity grant of $2,500,000 divided equally between time-based restricted stock units (“RSU’s”) vesting semi-annually over three years and performance-based restricted stock units (“PSU’s) vesting one-third per year over three years if certain performance measures set by the Board are met.  For example, if applicable performance measures set by the Board for 2022 are achieved, one-third of the PSUs shall vest in accordance with the terms of the applicable award agreement.
For 2023 and each year of employment thereafter, Executive shall receive a grant of at least $2,500,000 annually, or higher at the Board’s discretion.
In addition, in connection with his commencing employment with the Company, Executive is being awarded a special one-time grant of 500,000 RSU’s/PSU’s vesting as outlined below (“One-Time Special Grant”).
250,000 RSUs with time-based vesting; four-year vest, 25% or 62,500 shares per year.
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250,000 PSU’s (the “One-Time PSU Special Grant”) with performance vesting; four-year measurement period (the “Performance Period”) as described below:
Forty-five percent (45%) or 112,500 shares of the One-Time PSU Special Grant (the “First PSU Tranche”) shall vest upon the Company’s stock (NASDAQ: OSPN) having a 45 trading day average closing price of at least $30.00; and the remaining fifty-five percent (55%) or 137,500 of the One-Time PSU Special Grant (the “Second PSU Tranche”) shall vest upon the Company’s stock (NASDAQ: OSPN) having a 45 trading day average closing price of at least $40.00 or higher. However, if the First PSU Tranche shall have vested and the Performance Period has not expired but the closing price target of $40.00 is not reached, then Executive shall be entitled to a portion of the Second PSU Tranche based on a linear interpolation between $30.00 and $40.00 for the highest 45 trading day average closing price achieved before the end of the Performance Period. Further, in the case of a termination without Cause or for Good Reason in accordance with Section 3.3 below prior to the expiration of the Performance Period where not all of the One-Time PSU Special Grant have vested, then there shall be an additional 18 month vesting period extension (“Tail Period”). During the Tail Period, Executive shall continue to be eligible to vest in the One-Time PSU Special Grant at the same performance measures except that the number of PSU’s delivered shall be reduced for the ratio of the number of days between termination and four years over four years plus 18-months.
For purposes of these vesting conditions, the stock prices above are without the effect of any extraordinary Company transactions such as tender offers or recapitalizations, which, if effected, the Board shall adjust the stock price targets. The terms and conditions of the equity grants shall be further governed by the Long-Term Incentive Plan and a customary award agreement.
2.4 Employee Benefit Plans.  Executive will be eligible to participate on substantially the same basis as the Company’s other senior executive officers in any other employee benefit plans offered by the Company including, without limitation, medical, dental, short-term and long-term disability, life insurance, and retirement savings plans (in each case, subject to the eligibility requirements of such plans).  The Company reserves the right to modify, suspend or discontinue any and all of its employee benefit plans, practices, policies and programs at any time without recourse by Executive, so long as the Company takes such action generally with respect to other similarly situated senior executive officers and subject to the Company’s obligation to provide the COBRA Continuation Benefit in connection with a qualifying termination of Executive’s employment pursuant to Article 3.
2.5 Paid Time Off.  Executive will be entitled to paid time off in accordance with the Company’s US policy for senior executives.
2.6 Business Expenses.  The Company will reimburse Executive for all reasonable and necessary business expenses, including business travel, airfare, hotels, and meals, incurred in the performance of services with the Company, according to Company’s policies and upon Executive’s presentation of an itemized written statement and such verification as the Company may require.
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ARTICLE 3
TERMINATION OF EMPLOYMENT
3.1 Voluntary Resignation.  Executive may terminate his employment for any reason by giving the Company sixty (60) days prior written notice of a voluntary resignation date (“Resignation Date”).  Upon receiving Executive’s notice of intent to resign, the Company may require that Executive cease performing services for the Company at any time before the Resignation Date, so long as the Company continues Executive’s Base Salary, service for purposes of the Annual Bonus Plan and Long-Term Incentive Plan, and employee benefits under Section 2.4 through the Resignation Date.  Except as otherwise provided under law or the terms of the Annual Bonus Plan, the Long-Term Incentive Plan, or any other employee benefit plan in which Executive participates, Executive shall not be entitled to receive any compensation or benefits from the Company after the Resignation Date.  For the avoidance of doubt, any annual incentive bonus that has not been paid as of the Resignation Date will not be payable and is forfeited.
3.2 Termination By Company for Cause.  The Company may terminate Executive’s employment for Cause (as defined below) by giving written notice to Executive designating an immediate or future termination date.  Such notice shall indicate the specific provisions of this Agreement relied upon as the basis of such termination.  In the event of a termination for Cause, the Company shall pay Executive his Base Salary and provide employee benefits under Section 2.4 through the termination date.  Except as otherwise provided under law or the terms of the Annual Bonus Plan, the Long-Term Incentive Plan, or any other employee benefit plan in which Executive participates, Executive shall not be entitled to receive any compensation or benefits from the Company after the termination date.
For purposes of this Agreement, “Cause” means:
		i.
	Executive breaches Executive’s obligations under this Agreement, the Company’s Code of Conduct and Ethics (or any successor thereto) or an established policy of the Company and such breach continues after Executive has received written notice by the Company that specifies such breach and a period of 10 days in which to cure such breach (but only to the extent that such breach is capable of being cured);

		ii.
	Executive engages in conduct prohibited by law (other than minor violations), or commits an act of dishonesty, fraud, or serious or willful misconduct in connection with his job duties that, in the reasonable judgment of the Company, could injure the integrity, character or reputation of Company;

		iii.
	Executive refuses to perform, or habitually neglects, Executive’s duties and responsibilities hereunder (other than on account of Disability (as defined below), and continues such refusal or neglect after having been given written notice by the Company that specifies what duties Executive failed to perform and an opportunity to cure of ten days;

		iv.
	Use or disclosure by Executive of confidential information or trade secrets other than in the furtherance of the Company’s (or its subsidiaries’) business interests, or other violation of a fiduciary duty to the Company (including, without limitation, entering into any

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transaction or contractual relationship causing diversion of business opportunity from the Company (other than with the prior written consent of the Board)); or
		v.
	Executive fails to reasonably cooperate with any audit or investigation involving the Company or its business practices after having been given written notice by the Company that specifies Executive’s failure to cooperate and an opportunity to cure of five days.

3.3 Termination By Company Without Cause or Termination by Executive for Good Reason.  The Company may terminate Executive’s employment without Cause at any time during the Employment Period by giving written notice to Executive designating an immediate or future termination date.
Executive may resign from employment during the Employment Period due to:
		i.
	a failure to provide the compensation and benefits required by this Agreement;

		ii.
	a reduction in Executive’s Base Salary below the Base Salary in effect during the immediately preceding year, unless such reduction is commensurate with and part of a general salary reduction program applicable to all senior executives of the Company (such reduction not to exceed 20%) or is agreed to in writing by Executive;

		iii.
	any material diminution of Executive’s title, reporting structure, authority, duties or responsibilities; or

		iv.
	a material breach by the Company of any of its material obligations under this Agreement

(each of which shall constitute a “Company Breach” or “Good Reason”) and such resignation shall be treated as a termination by Executive for Good Reason; provided that, (a) Executive’s voluntary resignation occurs within 90 days following the initial occurrence of a Company Breach, (b) Executive provided written notice describing such Company Breach in reasonable detail to the Company within 30 days of the initial occurrence of such Company Breach, and (c) the Company failed to cure such Company Breach within 30 days of receipt of such written notice from Executive; and provided, further, that in the case of subsections (ii) and (iii), an act or omission shall not constitute a Company Breach if Executive has incurred a Disability (as defined below).
The election by Executive to not renew the Initial Term or any Successive Terms pursuant to Section 1.1 shall not be a termination for Good Reason and shall not entitle Executive to Severance Pay.  However, the election by the Company to not renew the Initial Term or any Successive Terms pursuant to Section 1.1 shall be deemed to be a termination without Cause effective as of the termination of the Initial Term or Successive Term as applicable and shall entitle Executive to Severance Pay as hereinafter provided.
In the event of a termination by the Company without Cause or a termination by Executive for Good Reason, the Company shall pay Executive his Base Salary and provide employee benefits under Section 2.4 through the termination date. In addition, subject to the requirements set forth in Section 3.7, Section 3.8, and Section 3.9, the Company will provide the following compensation and benefits to Executive (collectively, the “Severance Pay”):
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		A.
	an amount equal to twelve (12) months of Executive’s then current Base Salary, less applicable withholdings, payable in equal installments on each regularly scheduled payroll pay date during the twelve (12) month period that begins on the first day immediately after the Release Effective Date (as defined in Section 3.7);

		B.
	an amount equal to Executive’s then current annual incentive compensation target;

		C.
	awards, if any, under the Long-Term Incentive Plan shall be paid in accordance with the terms and conditions of the Long-Term Incentive Plan and the applicable awards; and

		D.
	subject to Executive’s timely election for continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), continued participation by Executive and his eligible dependents in the Company’s group health plans at the same rates as active employees of the Company for a period of twelve (12) months following the date of termination (the “COBRA Continuation Benefit”).

Except as otherwise provided under law, or the terms of the Long-Term Incentive Plan, or any other employee benefit plan in which Executive participates, Executive shall not be entitled to receive any additional compensation or benefits from the Company after the termination date.
3.4 Death.  The Employment Period shall terminate automatically upon Executive’s death.  In the event of Executive’s death during the Employment Period, the Company shall pay Executive’s Base Salary; and provide employee benefits under Section 2.4 through the termination date. Except as otherwise provided under law or the terms of the Annual Bonus Plan, the Long-Term Incentive Plan, or any other employee benefit plan in which Executive participates, no other compensation or benefits from the Company shall be payable after the termination date.
3.5 Disability.  “Disability” means Executive being unable to perform his duties to the Company as provided in this Agreement (Section 1.2) for a period of at least 180 continuous days as a result of a mental or physical condition.  The Company may terminate Executive’s employment for Disability during the Employment Period by giving written notice to Executive designating a termination date that is at least 30 days after the date of the notice of termination, provided that Executive does not return to work on a substantially full-time basis within 30 days after notice of termination on account of Disability is provided to Executive.  A return to work of less than 30 continuous days on a substantially full-time basis shall not interrupt a continuous period of Disability.  In the event of termination of the Employment Period on account of Executive’s Disability, the Company shall pay Executive’s Base Salary and provide employee benefits under Section 2.4 through the termination date. Except as otherwise provided under law or the terms of the Annual Bonus Plan, the Long-Term Incentive Plan, or any other employee benefit plan in which Executive participates, no other compensation or benefits from the Company shall be payable after the termination date.
3.6 Change in Control.  “Change in Control” has the meaning assigned to such term in the Long-Term Incentive Plan as in effect from time to time.  Notwithstanding anything in this Agreement to the contrary, a Change in Control will have occurred only if such change in ownership constitutes a change in control under Section 409A of the Internal Revenue Code of 1986, as
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amended (the “Code”), and the regulations and other guidance in effect thereunder (“Section 409A”).
If contemporaneous with or within twelve (12) months after a Change in Control that occurred during the Employment Period (a) the Company terminates Executive’s employment without Cause or (b) Executive terminates his employment for Good Reason, then, provided Executive complies with the requirements set forth in Section 3.7, Section 3.8, and Section 3.9, Executive will be eligible to receive: (i) a cash payment (the “Change in Control Payment”) equal to the sum of (a) twelve (12) months of Executive’s then current Base Salary plus (b) Executive’s then-current target annual bonus, less applicable withholdings; and (ii) the COBRA Continuation Benefit. Any outstanding awards under the Long-Term Incentive Plan shall be paid in accordance with the terms and conditions of the Long-Term Incentive Plan and the applicable awards.
The Change in Control Payment will be made in a lump sum cash payment as soon as practicable, but in no event more than ten (10) days after Release Effective Date. Except as otherwise provided under law or the terms of any other employee benefit plan in which Executive participates, Executive shall not be entitled to receive any additional compensation or benefits from the Company after the termination date.
Notwithstanding anything in this Agreement to the contrary, in the event of a Change in Control during the Performance Period described in Section 2.3 above, then subject to Executive remaining continuously employed with the Company through the date of such Change in Control (except as specified in the following sentence): (a) if the applicable per share consideration for Company stock in such Change in Control is less than $30.00, the First PSU Tranche shall immediately vest in full, and the Second PSU Tranche shall be forfeited and Executive shall not have any further rights with respect thereto; (b) if the applicable per share consideration for Company stock in such Change in Control is between $30.00 and $40.00, the First PSU Tranche shall immediately vest in full, and Executive shall be entitled to a portion of the Second PSU Tranche based on the application of linear interpolation between $30.00 and $40.00 (with the portion of the Second PSU Tranche that does not vest pursuant to such linear interpolation being forfeited); and (c) if the applicable per share consideration for Company stock in such Change in Control is $40.00 or greater, both the First PSU Tranche and the Second PSU Tranche shall immediately vest in full.  Notwithstanding the foregoing, in the event that a Change in Control occurs during the Tail Period described in Section 2.3 above, the One-Time PSU Special Grant shall be eligible to vest pursuant to the preceding sentence, subject to the pro rata reduction described in Section 2.3.
3.7 Execution of Separation Agreement.  As a condition to receiving Severance Pay or Change in Control Payments, Executive must execute and return to the Company, and not revoke any part of, a general release and waiver of claims against the Company and its officers, directors, stockholders, employees and affiliates with respect to Executive’s employment (including, without limitation, a release of claims under the Age Discrimination in Employment Act (the “ADEA Release”)), and other customary terms, in a form and substance reasonably acceptable to the Company (the “Release”).  Executive must deliver the executed Release within the minimum time period required by law or, if none, within twenty-one (21) days after Executive receives the Release from the Company, which shall not be more than fifteen (15) days after Executive’s
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termination of Employment. The Release will become effective on the date the revocation period of the ADEA Release expires without Executive revoking the ADEA Release (the “Release Effective Date”).  Any obligation of the Company to provide the Severance Pay shall cease:  (i) if Executive materially breached or breaches his contractual obligations to the Company, including those set forth in Article IV or Article V herein, or in the Release or (ii) if, after Executive’s termination, the Company discovers facts and circumstances that would have justified a termination for Cause during the Employment Period.
3.8 Timing of Payments; Section 409A.
Notwithstanding any other provision of this Agreement, in the event of a payment to be made, or a benefit to be provided, pursuant to this Agreement based upon Executive’s “separation from service” (as defined below) for a reason other than death at a time when Executive is a Specified Employee (as defined below) and such payment or provision of such benefit is not exempt or otherwise permitted under Section 409A without the imposition of any Section 409A Penalty (as defined below), such payment shall not be made, and such benefit shall not be provided, before the earlier of the date which is the first day of the seventh month after Executive’s separation from service or 30 days after Executive’s death.  All payments or benefits delayed pursuant to this Section 3.8 shall be aggregated into one lump sum payment to be made as of the Company’s first business day following the first day of the seventh month after Executive’s separation from service (or if earlier, as of 30 days after Executive’s death).
For purposes of this Agreement:
“Separation from service” has the meaning provided under Code Section 409A and Treas. Reg. 1.409A-1(h);
“Specified Employee” has the meaning given that term in Code Section 409A and Treas. Reg. 1.409A-1(c)(i) as determined in accordance with the Company’s policy for determining Specified Employees;
“Section 409A Penalty” means any increase in tax or any other penalty pursuant to Section 409A; and
All payments of “deferred compensation,” as defined in Code Section 409A, due to Executive’s “termination of employment” shall be payable upon Executive’s separation from service.
This Agreement is intended not to result in the imposition of any Section 409A Penalty and shall be administered, interpreted and construed in a manner consistent with such intent. For purposes of Section 409A, each installment in a series of payments shall be treated as a separate payment.
Executive and the Company agree to cooperate to amend this Agreement from time to time as appropriate to avoid the imposition of any Section 409A Penalty.
In no event shall the Company be required to provide a tax gross-up payment to Executive with respect to any Section 409A Penalty.
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Notwithstanding any provision of this Agreement to the contrary, this Agreement is intended to be exempt from or, in the alternative, comply with Section 409A and the interpretive guidance in effect thereunder, including the exceptions for short-term deferrals, separation pay arrangements, reimbursements, and in-kind distributions.  The Agreement shall be construed and interpreted in accordance with such intent.
3.9 Excess Parachute Payments; No Excise Tax Gross-Up.  Notwithstanding any provision of this Agreement to the contrary, if it is determined by the Company’s independent auditors that any amount or benefit to be paid or provided under this Agreement or otherwise, whether or not in connection with a Change in Control, would be an “Excess Parachute Payment” within the meaning of Code Section 280G but for the application of this sentence, then the payments and benefits to be paid or provided under this Agreement will be reduced to the minimum extent necessary (but in no event to less than zero) so that no portion of any such payment or benefit, as so reduced, constitutes an Excess Parachute Payment; provided, however, that the foregoing reduction will be made only if and to the extent that such reduction would result in an increase in the aggregate payment and benefits to be provided, determined on an after-tax basis (taking into account the excise tax imposed pursuant to Code Section 4999, any tax imposed by any comparable provision of state law, and any applicable federal, state and local income and employment taxes).
The fact that Executive’s right to payments or benefits may be reduced by reason of the limitations contained in this Section 3.9 will not of itself limit or otherwise affect any other rights of Executive other than pursuant to this Agreement.  In the event that any payment or benefit intended to be provided under this Agreement or otherwise is required to be reduced pursuant to this Section 3.9, the Company will effect such reduction by first reducing the lump sum cash payment related to Base Salary (a “Reduction”).  In the event that, after such Reduction any payment or benefit intended to be provided under this Agreement or otherwise is still required to be reduced pursuant to this Section 3.9, the Company will effect such reduction by reducing other consideration due to Executive.
3.10 Removal from any Boards and Positions.  If Executive’s employment is terminated for any reason under this Agreement, this Agreement will constitute his automatic resignation from (i) if a member, the board of directors of any subsidiary or affiliate of the Company or any other board to which he has been appointed or nominated by or on behalf of the Company, (ii) any position with the Company or any subsidiary of the Company, including, but not limited to, as an officer of the Company or any of its subsidiaries, and (iii) any fiduciary positions with respect to the Company’s benefit plans.
ARTICLE 4
EXCLUSIVITY OF SERVICES AND RESTRICTIVE COVENANTS
4.1 Confidential Information.  Executive acknowledges and agrees that the Confidential Information (as defined below) of the Company and its subsidiaries and any other entity related to the Company (each, a “OneSpan Entity”) that he obtained during the course of his employment by the Company is the property of the Company or such other OneSpan Entity.  Subject to applicable law, Executive will never, directly or indirectly, disclose, publish or use any Confidential Information of which Executive has become aware, whether or not such information was developed by him.  All duties and obligations set forth in this Agreement regarding
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Confidential Information shall be in addition to those which exist under the Illinois Trade Secrets Act and at common law.
As used in this Agreement, “Confidential Information” means information that is not generally known to the public and that was or is used, developed or obtained by the Company or any other OneSpan Entity, in connection with its businesses, including but not limited to:
		i.
	products or services, unannounced products or services, product or service development information (or other proprietary product or service information);

		ii.
	fees, costs, bids and pricing structures and quotations or proposals given to agents, distributors, vendors, contractors, licensors, licensees, customers, or prospective agents, distributors, vendors, contractors, licensors, licensees or customers, or received from any such person or entity;

		iii.
	accounting or financial records;

		iv.
	strategic business plans;

		v.
	information system applications or strategies;

		vi.
	customer and vendor lists and employee lists and directories;

		vii.
	marketing plans, bidding strategies and processes, and negotiation strategies, whether past, current, or future;

viii.accounting and business methods;
		ix.
	legal advice and/or attorney work product;

		x.
	trade secrets and other proprietary information;

		xi.
	information, analysis or strategies regarding acquisitions, mergers, other business combinations, divestitures, recapitalizations, or new ventures; and

		xii.
	nonpublic information that was acquired by Executive concerning the requirements and specifications of the Company’s or any other OneSpan Entity’s agents, distributors, vendors, contractors, licensors, licensees, customers, or potential customers.

Notwithstanding anything to the contrary, Confidential Information does not include any information that: (a) is publicly disclosed by law or pursuant to, and to the extent required by, an order of a court of competent jurisdiction or governmental agency; (b) becomes publicly available through no fault of Executive; or (c) has been published in a form generally available to the public before Executive proposes to disclose, publish, or use such information.
4.2 Noncompetition.  During the Employment Period and for the 12-month period following the termination of the Employment Period for any reason (the “Restricted Period”), Executive will not, on behalf of himself or any other entity, have an ownership interest in or become employed
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or engaged by, or otherwise participate in or render services to, any business or enterprise (including, without limitation, any division, group or franchise of a larger organization) within the Geographical Area (as defined below) that engages in any directly competitive data security or e-signature business; provided, however, that the this restriction shall not prohibit Executive from passive beneficial ownership of less than two percent of any class of securities of a publicly-held corporation whose stock is traded on a U.S. national securities exchange or traded in the over-the-counter market.  For the purpose of this provision, “Geographical Area” means North America, Central America, South America, the Caribbean, Europe, the Middle East, Africa, India, the Australian continent and Asia. For the purpose of this provision, “data security business” or “any other business engaged in by the Company” means the Company’s business as described in its most recently filed reports with the United States Securities and Exchange Commission.
4.3 Non-Solicitation.  During the Restricted Period, Executive shall not (other than in furtherance of Executive’s legitimate job duties on behalf of Company), directly or indirectly, on Executive’s own behalf or for any other person or entity:  (i) solicit for employment, hire or engage, or attempt to solicit for employment, hire or engage, any person who is or was employed by the Company within the six month period prior to the date of solicitation, hire or engagement, or (ii) otherwise interfere with the relationship between any such person and the Company.
4.4 Non-Interference with Business Relationships.  During the Restricted Period, Executive shall not (other than in furtherance of Executive’s legitimate job duties on behalf of the Company), directly or indirectly, on Executive’s own behalf or for any other person or entity:  (i) induce or attempt to induce any customer, distributor, agent, licensor, licensee, contractor, vendor or other business relation that was doing business with any OneSpan Entity during the one-year period prior to the inducement or attempted inducement to reduce or cease doing business with the Company or any OneSpan Entity, or otherwise interfere with the relationship between such person (or entity) and any OneSpan Entity; (ii) induce or attempt to induce any prospective customer, distributor, agent, licensor, licensee, contractor, vendor or other prospective business relation located in the Geographical Area with which any OneSpan Entity has had communications during the six-month period prior to the inducement or attempted inducement regarding doing business with the Company or any other OneSpan Entity to not do business or to do reduced business with the Company or any other OneSpan Entity, or otherwise interfere with the relationship between such person (or entity) and any OneSpan Entity.
4.5 Equitable Modification.  If any court of competent jurisdiction shall deem any provision in this Article IV too restrictive, the other provisions shall stand, and the court shall modify the unduly restrictive provision to the point of greatest restriction permissible by law.
4.6 Remedies.  Executive acknowledges that the agreements and covenants contained in this Article 4 are essential to protect the Company and its business and are a condition precedent to entering into this Agreement.  Should Executive breach any covenants in this Article 4, then among other remedies, the duration of the covenant shall be extended by the period of any such breach.  Executive agrees that irreparable harm would result from Executive’s breach or threat to breach any provision of this Article 4, and that monetary damages alone would not provide adequate relief to the Company for the harm incurred.  Executive agrees that in addition to money damages, the Company shall be entitled to seek and obtain temporary, preliminary and permanent injunctive relief restraining Executive from committing or continuing any breach without being required to
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post a bond.  Without limiting the foregoing, upon a breach by Executive of any provision of this Article 4, any outstanding Severance Pay shall cease and be forfeited, and Executive shall immediately reimburse the Company for any Severance Pay previously paid.
ARTICLE 5
POST-TERMINATION OBLIGATIONS
5.1 Return of Company Materials.  No later than three business days following the termination of Executive’s employment for any reason, Executive shall return to the Company all company property that is then in Executive’s possession, custody or control, including, without limitation, all keys, access cards, credit cards, computer hardware and software, documents, records, policies, marketing information, design information, specifications and plans, data base information and lists, and any other property or information that Executive has or had relating to the Company (whether those materials are in paper or computer-stored form), and including but not limited to any documents containing, summarizing, or describing any Confidential Information.
5.2 Executive Assistance.  During Executive’s employment with the Company and for a period of two years after the termination of such employment, Executive shall, upon reasonable notice, furnish the Company with such information as may be in Executive’s possession or control, and cooperate with the Company in any reasonable manner that the Company may request, including without limitation conferring with the Company with regard to any litigation, claim, or other dispute in which the Company is or may become a party.  The Company shall reimburse Executive for all reasonable out-of-pocket expenses incurred by Executive in fulfilling Executive’s obligations under this Section 5.2.  The Company will make any such reimbursement within 30 days of the date Executive provides the Company with documentary evidence of such expense consistent with the policies of the Company.  The Company will also pay Executive a reasonable fee per hour for his assistance during the two years commencing on the first anniversary of termination of his employment with the Company. Notwithstanding anything to the contrary, any such reimbursement shall be administered so as to comply with Treasury Regulation Section 1.409A-3(i)(1)(iv).
ARTICLE 6
MISCELLANEOUS
6.1 Notices.  Any notices, consents or other communications required or permitted to be sent or given hereunder shall be in writing and shall be deemed properly served if (a) delivered personally, in which case the date of such notice shall be the date of delivery; (b) delivered prepaid to a nationally recognized overnight courier service, in which case the date of delivery shall be the next business day; or (c) sent by electronic transmission (with a copy sent by first-class mail), in which case the date of delivery shall be the next business day.  If not personally delivered, notice shall be sent using the addresses set forth below:
If to Executive, to the address listed on the signature page or the last address on file in the records of the Company.
If to the Company:
OneSpan
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121 West Wacker Drive
20th Floor
Chicago, IL 60601
Attention:  Corporate Secretary
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or such other address as may hereafter be specified by notice given by either party to the other party.  Executive shall promptly notify the Company of any change in his address set forth on the signature page.
6.2 Withholding.  The Company may withhold from any payment that it is required to make under this Agreement amounts sufficient to satisfy applicable withholding requirements under any federal, state or local law, as well as any other amounts due and owing to the Company from Executive.
6.3 Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and assigns; provided that Executive may not assign any of his rights or obligations under this Agreement without the Company’s prior written consent.
6.4 Nonalienation of Benefits.  Benefits payable under this Agreement shall not be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution or levy of any kind, either voluntary or involuntary, prior to actually being received by Executive, and any such attempt to dispose of any right to benefits payable hereunder shall be void.
6.5 Amendment; Waiver.  No failure or delay by the Company or Executive in enforcing or exercising any right or remedy hereunder will operate as a waiver thereof.  No modification, amendment or waiver of this Agreement or consent to any departure by Executive from any of the terms or conditions thereof, will be effective unless in writing and signed by the Company.  Any such waiver or consent will be effective only in the specific instance and for the purpose for which given.
6.6 Severability; Survivability.  If any term or provision of this Agreement shall be held to be invalid or unenforceable, the remaining terms and provisions hereof shall not be affected thereby and shall be enforced to the fullest extent permitted under law.  Executive’s obligations in Articles 4 and 5 shall survive and continue in full force notwithstanding the termination of this Agreement or Executive’s employment for any reason.
6.7 Execution in Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be considered an original instrument, but all of which shall be considered one and the same agreement and may be executed by electronic signature.
6.8 Governing Law; Consent to Jurisdiction; Waiver of Jury.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of Illinois, without regard to its conflict of law principles.  For the purposes of any suit, action, or other proceeding arising out of this Agreement or with respect to Executive’s employment hereunder, the parties:  (i) agree to submit to the exclusive jurisdiction of the federal courts located in the Northern District
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of Illinois or state courts located in Cook County, Illinois; (ii) waive any objection to personal jurisdiction or venue in such jurisdiction, and agree not to plead or claim forum non conveniens; and (iii) waive their respective rights to a jury trial of any claims and causes of action, and agree to have any matter heard and decided solely by the court.
6.9 Construction.  The language used in this Agreement will be deemed to be the language chosen by Executive and the Company to express their mutual intent, and no rule of strict construction will be applied against Executive or the Company.  The heading in this Agreement are for convenience of reference only and will not limit or otherwise affect the meaning of the provision.
6.10 Entire Agreement; Amendments.  This Agreement contains the entire understanding of the parties hereto with regard to the subject matter contained herein, and supersedes all prior agreements, understandings or letters of intent with regard to the subject matter contained herein between the parties hereto.  This Agreement shall not be amended, modified or supplemented except by a written instrument signed by each of the parties hereto.
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IN WITNESS WHEREOF, each of the parties hereto has duly executed this Employment Agreement.
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	COMPANY

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	Date:  11/11/21   
	/s/ Alfred A. Nietzel

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	Name:Alfred A. Nietzel

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Title: Chair of the Board of Directors, OneSpan Inc.
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	EXECUTIVE

	Date: 11/9/21
	/s/ Matthew P. Moynahan

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	Name: Matthew P. Moynahan

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Address: Austin, TX
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